good morning, welcome to squawk box right here. becky is off today take a look at u.s. equity futures at this hour on this monday morning after what was, as joe mentioned a wild week last week. we're looking to open higher this morning a little bit of a bounce back. dow could open 160 points right now. nasdaq up 103 points and the s&p 500 looking to open about 26 points higher.

the s&p down 2.5% and the dow 2.7% the s&p dropping 4.4% last week and let's take a look at some of the specific names in all of this falling 7.4% netflix 6.6% and then the one everybody is talking about tesla. that stock plunging 10.9%. whenever we can talk about algorithms, do you know what i'm saying i like it as the secret sauce, wow, i wish, you know, i wish i took a little bit more calculus or math or whatever.

>> do you know >> let's talk about it because there's so much. >> you're all fired up you're tweeting about it and i don't follow you belief it or not because i like to enjoy my weekend, but someone retweeted your stuff to me and i'm like oh, geez anyway, you're mad because trump said he wouldn't do a partnership ever when it was microsoft and now he likes oracle i figure it's because -- >> we'll talk all about it >> all right make it -- i know. do you know what i'm going to do i'm going to read this and say andrew take it away. making headlines, sources telling cnbc that oracle is set to be announced as tiktok's tech partner in the u.s it's unclear which parts of tiktok's technology are being

taken over by oracle i'm talking about the secret sauce. the algorithms we don't know. but i don't know whether they would allow them tiktok also will comment on the potential. microsoft had been considered the front runner until this weekend, microsoft was notified by the chinese owner that the offer was rejected walmart was teaming up with microsoft on the bid in a statement late yesterday walmart suggested it's considering joining oracles bid now. so it's kind of -- its kind of interesting. i initially saw how you were saying that there's something, i don't know, nefarious going on here with the oracle and the white house and stuff but then, i mean, microsoft did get the jedi deal right? do we know that the white house does not like microsoft specifically or do we think that

they like oracle more because ellison did a fund-raiser? what do you know tell me what you know? >> i'm not sure. i'm not sure how the politics, how it played and frankly whether they played in any of this i think there's question marks now and we will see what ultimately transpires here i spent -- there were great gains yesterday but unfortunately i was on the phone trying to figure out what was happening here and the interesting part about this particular transaction is that originally microsoft started having talks in june and july with tiktok and byte dance about a tech partnership then. effectively the cloud. the azure cloud was going to be the host for tiktok and that's the interesting part for them. they were going to take a minority interest and then the trump administration said we

don't like that because we have a problem here we still believe there's a national security problem unless a u.s. company owns a majority stake and the view is also the algorithm because that is the business and not just the business but for the algorithm to work, the reason why you get fed cool or fun videos that are appealing to you is because what's happening is the company is taking the data that you produce meaning the data of which videos that you like and flick through quickly and they're going and showing you stuff that you like. so they need -- that's like the oil. they need the oil for the algorithm to work.

well it doesn't work if you can't feed it data so how do do it in a secure way is there a secure way to do it and that's the question right now on the table when you talk about whether they like oracle or not i don't know. >> and we don't know -- this is byte dance saying this we don't know at this point whether the white house will sign off on this do we have indications that this one is going to be okay with them verses the other one? microsoft is a much bigger company. go on. >> my understanding is earlier indications is the white house is trying to find some form of a compromise from an anti-trust and competitive landscape, you would have thought actually that a microsoft-walmart deal arguably would have been better in other ways which is to say that if

tiktok went to microsoft all of a sudden you potentially could build a real meaningful competitor to a facebook so if you thought of anti-trust issues with facebook or google on the advertising side. potenti potentially and that transaction created all sorts of other benefits beyond the national security issues. the transaction with oracle and as a cloud provider that's all it's going to be and we'll find out. it's probably less than that >> what social media experiences does oracle have as well microsoft has linked in, right they're a much bigger company. there are reasons to think that

might be a better overall fit and then you got back to the fund-raisers and the other things that i know you want to talk about i was concerned about a two anchor show. i don't even need to be here i don't think. do you want me to just come back at like 6:30 or something? what do you think? >> usually, you know -- >> the nfl, the nfl started yesterday. baseball across the board. there was an nba playoff game. there was a five set match that was one of the greatest come back matches with a speech at the end followed by the german that lost that had me in tears i didn't make that many calls about this whole deal here so i'm glad that you did

you already referenced all the sports that were on. poor jets. go ahead we always need a partner in crime or more than that. >> and we miss becky today we always miss becky we need two if possible. >> and but we did this friday. i can finish your sentences. it's hard for me to mouth them a lot of times but i can finish them there's a lot of -- do you know what i'm interested in, the -- oh, we're not even going to do this we will later but i'm interested in this next deal. they're rushing us out of here

ichlths coming up . >> the cancer drug maker doubling on news this -- do you know where you actually have like a poison attached to an antibody and it's been a long holy grail looking for it. we'll talk about it next plus check out this morning's huge guest line-up it's on this show. great. president of the nasdaq. we have the gilead ceo treasury secretary steven minuchi and stay tuned you're watching squawk box on cnbc ♪ ♪

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the acquisition expands the portfolio of drugs to treat cancer and meg joins us with more there's a lot swirling around here gilead had been mostly in blood tumors so immunomedics has been around a long time. it was a tenth of where it's being acquired it's a $2 billion company in the last 52 weeks so they finally

got, what is it? immunocongegate. so they got positive results about a breast cancer treatment on a really tough type of breast cancer what is it called? triple negative or something and this extended survival which means it has a mode of action on something -- so it attacks your own tumor with an antibody that has some poison like attached to the antibody is that about right. >> you know it's right, joe. it's called an anti-body drug congegate. it's thought to be better because it uses it to hone in on cancer cells and then delivers this payload that can kill the cancer cells but let's talk about the deal specifics to start with. they're paying $88 a share it's a 108% premium.

they're using $15 billion in existing cash and $6 billion in debt they say this should break even in 2023 and add to earnings after that and they expect this deal to close in the 4th quarter. now it was approved in april for triple negative breast cancer which is a very difficult cancer to treat and this is for a very specific segment of that population trying to treat that cancer that already spread and they did show very promising results and got that approval in april and guys, there's a european medical conference focused on cancer this week. we're expecting to see full data on the drug in that indication plus more indications. so with all of those indications and this price tag which is $2,000 per vile or estimated

$100,000 per therapy which is what these cancer drugs cost these days analysts estimate this could be a $4 billion drug down the line and this is the biggest deal in a series of many where gilead has been trying to build itself into a cancer power house. previously it did kite pharma for $12 billion to get the new therapy drugs and then they bought forty seven for $5 billion earlier this year but a true acceleration in the cancer deals. trying to turn itself into one of these that has major forces in cancer. >> if you read between the lines of what you just said, you said that triple negative breast cancer is relatively small group. so that's not going to add up to $4 billion so you're talking about using

this for solid tumors in the lungs and -- all solid tumors or at least more than just breast cancer. >> yeah, they're also expecting data i believe this week in bladder cancer and then further down the line in lung cancer so it needs to be cancers that express this antigen and so to latch on to and deliver the payload, this drug could potentially be useful. >> and, you know, they made an antibody to trope 2 so solid e tumors express something and if the mode of action works, in this case, then you just take another antigen and do the same thing and it might work on others so they're buying the technology as well. >> they absolutely are

they have a lot of experience in this technology as well so it will be really interesting when we get to talk to them this morning about the deal and what about news on pfizer too on the vaccine front >> it's a busy weekend it was given the green light in the u.k. to restart the vaccine trial. it was halted after a single unexplained event in one trial participant in the u.k the regulators said it is safe to resume the trials but they haven't given information about what happened or how they know that it's safe the oxford university which is developing the vaccine cited patient confidentiality so we don't know what happened or how they know it's safe or when the green light will be issued in

other countries. and they're getting close to finishing enrollment and now they're expanding the size of the trial to 44,000 people and also include people with hepatitis b that are stable and they still expect the data by the end of october >> great andrew >> don't want to jump in on the pfizer stuff. >> i wanted in on the pfizer stuff but i was trying to understand what we think realistically the time line looks like

that's when they will get enough data to see if the vaccine is working by the end of october. and he also said this in a recent interview as well, 60% is what he is modeling here as the chances they will get this data by the end of october and they're going to be rolling these new 14,000 participants in areas of the highest infection rates in order to try to see that so quickly. but that would be when they get the data they say they'll be ready immediately to file for fda authorization and then we'll have to see what the regulator does >> all right, meg, thank you and we'll see you again at 7:00 eastern with the ceo of gilead and then later this morning, pfizer's ceo will join you on squawk on the street as we just

said it. andrew. >> a couple of big stories on soft bank this morning that we should also be talking about buying chip designer arm have softbank for $40 billion in cash and stock. of course a key supplier to apple and others that's going to happen this morning at 9:40 eastern time meantime they're also reporting that soft bank executives potentially take the firm private. this is driven by frustration over the persistent valuation discount given to softbank shares i want to talk to you about soft

bank. >> yeah. >> let's start here. what do you think on softbank, what do you think the chances are that they actually go private? this is a company that's so deal oriented is this just talk or do you think this is real >> i think that it's real. what you need to understand is you remember when the stock market tanked. softbank suffered a serious blow it's shares collapsed. it fell to a 4 year low. he owns well over 20% of the company's shares is heavily exposed to margin loans so he feels extra pressure and he has it in the stock as an activist that has been pushing him to do share buy backs so there was a lot going on in that period and in that period they discussed and called up and were ironing out stuff to see if they could take the company private then but they announced this $41

billion share repurchase plan and debt program which would be funded by asset sales and what's happened in the subsequent five months is they have done the asset sales which have basically driven the stock way higher and one of the key holdings is alibaba that's done well in this market valrally but a lot of the stock gains appear to be driven by alibaba and not the fact that the discount which is essentially calculated by taking the equity value which is the sum of the parts of softbank's holdings

so that's what the idea is and it's live right now. >> just to jump in on the tick to be sto -- tiktok story so many of us have questions about where things stand china state tv is now reporting that tiktok won't be quote, unquote sold i think that's raising some other questions when they say tiktok won't be sold is that sold at all? is that because now we're talking about tech partnership with oracle? what do you think is happening right now? >> it's a giant mess and it has been for several weeks and everyone i was talking to on this transaction heading into this weekend said that the chances of any deal were well below 50%.

i think there's a lot to iron out here it's messy there's a lot of constituents between the chinese government and the byte dance venture capitalists and oracle and it's a really messy situation and it's going to be weeks before this is properly ironed out. they really head to friday. >> i have a suspicion that this is so complex that they can get something on paper but the details aren't going to be done by friday. >> do you have any idea how they can satisfy -- the thing that i'm baffled by is how could they satisfy the national security issue which apparently could not be satisfied by selling a minority interest to microsoft over the summer.

>> i'm just speculating but you could make a certain amount of commitments on how it will be supervised and monitors. that's why i still think this thing is very complicated. you can imagine the situation where they fudge it and delay the deadline or give them more time because they have something on paper and principle as a likely option here >> look, we appreciate you joining us this morning. great job reporting all of this over the weekend we look forward to having you back and talking to you more about all of this as it goes on. thanks

>> thanks, andrew, coming up, attention, new york commuters, starting today not wearing a mask on a train or a bus could cost you those first though as we head to break, check out this morning's biggest nasdaq premarket movers. you're watching squawk box on cnbc ♪ ♪ ♪ ♪ (vo) while you may not be running an architectural firm, tending hives of honeybees, and mentoring a teenager -your life is just as unique.

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uber fighting a london ban in court it happens today uber expected to argue it has addressed safety concerns raised by local regulators there and of course a lot of folks in london and shareholders across the country and the world will be focused on that joe. >> united, the ceo says he's

unlikely to recover in the near term here's what he said on cbs's face the nation yesterday. >> demand is not coming back until there's a vaccine widely distributed and available while a large portion of the population i hoped it happened sooner but that's the end of next year. and be ready to bounce back. >> continues to burn through 25 million dollars a day. some news on masks now, i guess. >> absolutely. attention new york commuters, we should tell everybody, starting today people that refused to wear face masks on subways and trains and buses they'll face a $50 fine. the goal is to convince people that mass transit is safe to ride as they open up more in the

coming weeks but clearly the state trying to instill that confidence by saying you have to wear your masks especially in the combined closed spaces >> are you out and about there's traffic again. and there's places where i go to get something. it's a very surreal kind of a -- it's happening people are out and it's like, sometimes i forget it. it can come back if someone gets anywhere near me and i'm wearing a mask, so this

is going to be -- i don't know if we ever get over this because i immediately feel very threatened it's very strange. it's a very strange world right now. >> there are moments when we're trying to forget about it. you wouldn't have thought it at all. and then frankly a little kid came flying over to my daughter and was right on top of her and i thought oh my goodness, we were not masked i should say and then i thought, you know, you get concerned. i'm hopeful that we get through it and the levels are low enough where it's not going to spread

>> the tennis yesterday very emotional and people that are part of this team and the two guys that are friends that play they're hugging without masks and everybody was hugging and i'm like oh my god they're hugging. so this is the way it's going to be for us forever. so this is one of the guys chances. they couldn't sit down between games anymore because if they sat down they weren't going to be able to get up. it was over four hours it was really cool it was really good but, you know, it's in this -- and these things are happening nfl is happening.

does this block ever end is what they're asking in the control room. >> we want to get to commercial. we have so much going on today it's unbelievable and the guest list is outrageous as well so many questions for so many people news makers right in the midst of it. we'll talk tech trouble on the other side of the break and the names that lead the market higher and tumbled last week got the treasury secretary coming up in a little bit. we'll be back in a minute. as business moves forward, we're all changing the way things get done.

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so you're suggesting that we focus on the fed i think that's a good idea instead of talking about equities and you feel like you have to answer and maybe that's not something that you need to talk about

forward guidance is going to be something that everyone is interested in. that threw us for a loop last time with all the inflation talk. >> so good morning, joe and. i was worried you were going to say let's talk about the jets. >> no. >> so this fed is meeting because people are expecting this combination of data dependency and insurance mind set and the revision of the frame work to lead to even more aggressive forward guidance and even if you have even more aggressive forward guidance that means more liquidity, more deals, more ipo, and other things so it's critical. my own view is more aggressive forward guidance is do able but not desirable.

talking about his concern. one of the things we haven't heard is inflation fears where he talked about the double digit inflation. for all of us given what we saw in japan and how hard we tried to even ingender 2% it's hard to get there and people argue about we were measuring it accurately. >> so you know i have been worried about asset price inflation and that's lead to all sorts of excessive risk taking i'm getting worried about housing price inflation and what we may welsey is income

affordability. there is reason to be more -- i don't buy into the double digit but look at what's happening to the supply side. and requiring on global supply chains which means higher costs and deep globalization which means less competition what we need for inflation is for the demand cycle to come back and that's where it is right now. >> you also point out the disconnect between financial markets in the real economy and how loose monetary policy sort of widens that gap by definition, does that mean the reversion or regression over the next three or four years

given all of this loose money are we -- that's the other thing he indicated although he's not -- i wouldn't say that he's pessimistic about the future of the country. but he did say returns are going to be tougher to come by given that we're digesting all of this for the next four or five years. do you see it that way >> yeah. it's convergence other than necessarily valuations coming down if we get economic growth and corporate revenues if we normalize, then you can have fundamentals validate elevated asset prices. it's possible. it's not likely but it is possible we have a huge mountain to climb

on this. i hope we do because that's good for main street. not just wall street but main street but it is a very long road ahead do you think it's less likely that it happens this time around do we need the right policies? if we need the right policies we're back to something that might happen in november because there could be very different policies based on the outcome in the election >> you talked about how hard it was living with covid. that's what we're trying to do so both of you said our inclination is to go back to what we were doing before but

then suddenly wake up to the fact that the health risk is still out there. that's why this is such a tricky environment. we have to learn to live with covid. we're not going to have herd immunity quickly i doubt we'll have it by the end of next year it takes time for a vaccine to be distributed and to be disseminated and that's assuming the vaccine is perfect. it holds back fundamentals. >> it's all relative, i guess. because you go back three months because you had second thoughts, third thoughts, fifth thoughts it really was. so it's different.

it's slowly coming back and we have seen it in the markets and even some economic indicators. but maybe it stops when you get to a certain point and you don't go any further there's no way that i could do that i can't imagine. i'd have to be in my 20s. >> did that happen in august >> i'm in the u.k. i'm talking to you -- >> you're kidding? wow. so you were -- you travelled all right. excellent. we'll see you again soon thank you. congratulations. we'll see you. andrew. >> all right on the other side of this break on top of mohammed we have a string of more news makers

a major line-up. nasdaq's president is going to be joining us. you have the nyse president. and then treasury secretary mnuchin and a reminder you can watch or listen to us live any time right now on the cnbc app. we're back with two big hours ahead. ♪ everyone wakes up every morning to a world that must keep turning. moving. going. the world can't stop, so neither can we. because the things we make, help make the world go round. we are builders, constantly creating things that make our world cleaner, healthier, and more connected. so that the small moments that help define who we are,

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the ipo market has been red hot. 110 companies have gone public up 5%, do you believe that, from this time last year? we are getting 12 more

joining us is nelson griggs. anyone back there? i go back and it's like -- i like it. i've got like a huge building all to myself. i'll shall back home thursday. is it slowly coming back to life give me an update. >> we're slowly coming back. 10% back evening two ipos from the west coast. my team is getting ready to come back. >> before we get to the ipos, this is pretty amazing exchange transfer. in two weeks you had people moving to the nasdaq who was it >> keurig dr. pepper and more coming this week it's been fun.

>> $180 billion in market value in one week. why? why would they do that go ahead >> i'll give you the quick page. we had 1.8 trillion switch in the last ten years or so the value proposition esonates we have a pretty good story. you've heard that before i look at the trading stories. the nyc being shut down, people recognized there's a bit more value. so we're excited about the progress >> andrew? >> nelson, i'm curious about the phenomenon of spac, the special purpose acquisition vehicles, blank check companies, virtually almost every other week, every other day. to some degree you could argue it's a rebuke of the ipo process. the ipo process has failed what do you make of that

>> the numbers in spacs are staggering there's been almost 35 billion in spac capital raised versus last year. the ipo market is working well there's never been more opti optionality. ipo, spac, m&a the interesting thing is going to be how many spacs convert in 2021 we have 25,000 spacs converted. do you think when we look back at this vintage of spacs that we're going to look fondly at it? to some degree we call it a blank check company because it's a blank check. you don't know going in. i know you get to approve it later, but this is with blinders on, not off. >> there's a lot of shareholder

protections. what you have seen is there's been some amazing historical spac issuers it's been few and far between. this class of spacs, there's a whole new entry of business professionals that have run different types of professionals, businesses. you have 120 or so out looking for combinations the most interesting thing to watch is how they find their targets in 2021. in 18 to 24 months you find a target >> nelson, between now and november, if anyone wants to do an ipo, they'll try to get it in under the wire had a lot of health care what's on the horizon? >> thanks, joe we have clarity. it will be surprising.

this month, september, is real strong it's not just tech this week we have financial, consumer companies, health care. brazilian company. it's a broad based issuance. we have a lot of activity in september. 30 plus ipos we'll get the break in november. i'm pitching deals for december. >> you signed that letter. did you sign that? did you sign that letter to de blasio it's going to be much safer for me to come in on thursday? the mayor's got it all squared away now >> i'm not sure i would go that far. we did sign a letter it's important for our employees and customers to have a great environment for new york we love the city >> me, too i'll be there. >> all right see you soon >> all right, nelson see you soon thanks

andrew coming up, gilead ceo will be with us to talk about his company's multi-billion dollar cancer drug. and steven mnuchin will join us live at 8:00.m a. eastern. so many questions for him. you're watching "squawk box" here on cnbc and the simple joy of washing your hands, without ever touching a faucet. we think it's the little things that matter. and we know you do too. that's why we create moments to feel kohler clean, every day. ♪

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futures pointing to a higher opening. a look at what to watch is straight ahead. and a number of deals to tell you about including drug maker gilead, chip maker nvidia and oracle and tiktok. details all coming up. plus, the ceo of gilead is going to join us live. and a tax tussle brewing in the garden state a number of exchanges say they're going to pull operations out of new jersey if a stock transaction tax is implemented we'll speak to stacey cunningham the second hour of "squawk box" begins right now.

good morning welcome back to "squawk box" right here on cnbc i'm andrew ross sorkin along with joe kernen. becky is off looks like we'll open up higher. 188 points higher on the dow s&p up 32 points higher and nasdaq 154 points higher joe? >> thanks, andrew. gilead is drying cancer drug maker immunomedics meg tirrell is joining us with a new guest. >> reporter: that is dan o'day thank you for being with us out in san francisco tell us why this makes sense. >> thanks, meg, for having me. we're very excited about the opportunity. this medicine can bring to patients with a very difficult to treat breast cancer we're proud of the work that

immunomedics and their colleagues have done this medicine can potentially help patients with other types of cancers this is a cutting-edge technology in that it identifies a protein on a cancer sell that's highly expressed in many different types of cancer called trope-2. it goes into the cancer environment and kills the cells. it's more than doubled what we've seen with chemotherapy it's important for gilead. it allows us to complement the portfolio we've been putting together to help patients with cancer, both in solid tumors, which is what this medicine is for, as well as the work we're doing in blood cancers with

colleagues at kite and acquisitions like 47 we did earlier this year. >> a lot of the feedback was wall street is generally in favor of the idea of the deal. many are questioning the price you're paying. 108% premium to where the stock closed on friday your stock down less than 1% this morning we also saw a deal that merck was doing. some talk this was a competitive process. you had other bidders you needed to protect against tell us about the process and how you reached the price. >> yes certainly it was a competitive process. it started a couple of months ago as partnership discussions and many companies were involved you mentioned this technology. it has been around for a while

targeting cancer medicines in this way, but it's a very difficult thing to get right and to be able to get the right level of benefit for patients and have the reduced side effects as well. this is something many companies were looking at. we built a relationship with immunomedics when you talk price and value, think of this as not a single product for a single indication but a medicine that can help patients with a number of different cancers. and this coming weekend, the scientific called ezmo.

>> dan, i think we lost meg. i'll take over. >> i can't hear meg. go ahead, joe. >> okay. i'm reading right now about potential tie ups that might have happened with you with gilead i guess post covid it doesn't really make any sense. i guess at this point you are an acquirer and it would be very difficult if you swallowed gilead at this point is that more likely now that you're going to stay independent

and build gilead rather than a tieup with a more major, if you will, pharmaceutical >> our strategy, this is a terrific company that you know i joined a year and a half ago i came here for the reasons that it's focused on transformational medicines. this is the company that cured hepatitis c, turned hiv into a chronic illness. we're all firmly focused on -- we want to deliver ten transformative medicines in the next decade. we certainly have the capability of doing that. with this acquisition, itallow to traps form our oncology portfolio. we are focused on hiv. we have more work to do there. inflammation we're continuing to build our presence

we are keeping the bar high on transformational medicines >> dan, it's meg again we have audio, i think >> yes thank you. >> reporter: dan, sorry about that i want to ask you about your work in infectious diseases. remdesivir being such a focal point in this pandemic to try to treat covid-19 we saw data this morning that a drug from lilly called barasidinum was shown in an nih trial was shown to shorten recovery time when added to remdesivir you showed remdesivir could shorten recovery from 11 days 15 days to 11 hospitals aren't using remdesivir they only accepted 3/4 of what

was offered to them. tell us how that drug was doing. >> sure. very proud to be part of this devastating pandemic and a piece of the puzzle. my colleagues in the research space are focused on improving outcomes for patients and eliminating this disease on the supply side, there's news out about that, because of the moves we took in january before we ever knew this was going to be successful, i'm happy to say that as of today we have more than sufficient supply for patients in the u.s. that have the misfortune of being hospitalized as of october we'll have enough to support the rest of the world in real time demand. that's important for the winter season on the clinical data side, we've

done three gold standard trials. all of them consistent particularly if it's used earlier in the hospital setting. we see the greatest benefit from the patients just starting to get oxygen in the hospital in terms. recovery times and in terms of the ability to survive the disease. it provides an important impact. hospitals, doctors, caregivers are coming up to speed with this information. there's no doubt it provides an important impact and as you mentioned, you know, for particularly later stage patients when it's beyond just the control of the virus but there's other things going on in the body that affect the patients this concept of combining remdesivir with another agent can provide even better benefit for later stage patients let me just say, we're not

finished with remdesivir we started trials of looking at this medicine given by i.d. in the out-patient setting. if we can keep people out of the hospital in high risk cases, we're starting to look at this without the i.d. and right where you get the replication, we're hoping you can treat outside the hospital and prevent patients from going to the hospital we're firmly committed, as i know my colleagues are in the industry, to finding the path forward. >> can you speak directly to the inhaler piece in terms of what you think the timing would be for both tests and potentially even getting that to the public? i think there's a lot of hope around that and a lot of people are hoping that come this spring between the vaccine and therapeutics, maybe like the one you're talking about, that the world could have a lot more confidence in going back to some

real semblance of order. what does that look like for you? >> the concept of using remdesivir, that's a shorter time the inhaled version, remember, we're moving at light speed in the industry in fact, from when this virus first shows its head in january, in three months' time we had the first gold standard trials with a new formulation of a medicine, it does take a little bit longer we're in the early stages of testing for that we'll look to accelerate that. depending on the results we see with the early stage testing, we may be moving this into later stage trials towards the end of this year and early next year. we want to follow the science here we want to make sure we're doing the right thing for patients and society.

it's a next year issue for data on the inhaled version. >> reporter: dan, thank you. that's incredibly fast dan, thanks for being with us. >> thanks, meg, for having us. >> thank you, dan. thanks, meg. in other news, japanese investment giant softbank says it will sell its chip unit to nvidia in $40 billion in cash and stock. it's best known as the designer of computer chip maker bytedance choosing oracle to be the partner. it's unclear what parts are being taken over by oracle which hasn't commented tiktok won't comment on the deal microsoft had been considered the front-runner to buy tiktok's

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>> delta airlines. the money will be used the end of the third quarter.

in debt in the second guard ner. is that's purely an estimate all of this means that delta, because it now has this additional $6.5 billion will not, will not be borrowing money from the treasury department it had initially indicated it would borrow about $4.6 billion. that's how much it had been approved for now they have made the decision, look, we have borrowed this against the frequent flyer program. we will not be taking money out to the treasury department there are a number of stipulations borrowing from the treasury department that will not be happening guys, back to you. >> phil, let's extrapolate out is this delta specific in terms of their own strength? what does this mean for american airlines or others who may be

trying to come up with private market solutions to raising capital at a time when they're also asking for a handout from taxpayers? >> well, remember, the decision on whether or not to borrow from the treasury department, that has to be finalized by the end of this quarter. so you're talking two weeks? a little over two weeks away where you have to say, yes, we will borrow this amount. american airlines, that's the focus. american has said we do intend to take a loan from the treasury department but american also has the option at some points that it could leverage its frequent flyer program. we're talking about you want to get as much liquidity as you can for the next couple of years we heard scott kerby on face the nation, he said, they don't expect it to come back the entire industry, until the end of next year, when there's a vaccine in place and it's been in place for a while, so you have to ride out at least the

next 15 months, if not longer. when you're looking at what delta has done today, they had 19 months of liquidity this will give them additional liquidity. guys, within about three or four weeks just how much more time they have bought themselves so to speak >> okay. phil lebeau, we appreciate it. we will continue this discussion and debate coming up on the other side of this debate, your money and your vote dom chu is going to look at the election what traders are expecting as we get closer to november 3rd check out shares of pfizer and some of the biotech companies. the companies are planning to expand their phase 3 coronavirus trials biontech, 44,000 participants to help increase the diversity of the trial population up from the current 30,000 volunteers. pfizer ceo is going to join

"squawk on the street. "squawk" returns after this.

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the presidential election is 50 days away wait, is that -- that's this -- that's this year okay and traders are expecting to see a pickup in market volatility. dom chu has more on your money, your vote. hopefully it's a this year event, dom, and doesn't extend into next year that's a worst case scenario we're expecting that. >> it wouldn't be 2020 unless we had some kind of controversy. >> any chance. >> any chance.

it is so 2020. joe, we want to put some handle on the stock market volatility it's elevated right now. just how is it compared to other presidential election cycles we have had a nasdaq tech led selloff. the folks at the sebo, the exchange operating behind the volatility index, took a look at the last four presidential cycles purple 'o 08, blue september 2020 where we are now. october futures, currently around 39 implied for october. that's important because it encompasses the election time period it is more elevated now, stock market volatility, heading into this election cycle than at any other point in the previous three. you can see back in 2016 it was

just around 16 just before president trump took over and won the election there if you take a look at this, the reason why it's important is because you see that peak. then you see what happens after that october futures in november, december, into this next year. it does tend to fall off rather dramatically here unlike other times when we see more stable environments for stock market volatility notably in the 2008, 2012, 2016 cycles andrew, the take away is, yes, traders are expecting a good amount of volatility going into this particular election date. once it comes and goes, it tends to moderate out like it has. something to keep an eye on for sure i'll send it back over to you. >> dom, before you go. i talked to so many professional investors. if biden were to win or were to be seen as winning, do we think

there would be a selloff in the markets ahead of the end of the year to capture tax gains to the extent you can at a lower tax rate if you believe that come next year under a biden administration if that were to come to pass that taxes would be higher >> i've spoken to a number of folks that bring up that same topic. it comes down to whether or not there is a forceful view from the possible biden administration that they wants to do that tax reform soon if so if you have that tech related selloff, there will be gains that you can get lower rates at now hypothetically if you were to have an administration that would put higher taxes in place. i don't know if that would trigger a wholesale selloff. if you do see an administration come in starting to look at tax reform and raises taxes

especially in the people that depend on more like capital gains, you could see that selloff there. to be honest, we haven't seen tax rates this low in quite some time it wouldn't be out of the realm of reason to think if people wanted to capture that, they might sell i do not know if it reverses course if the market is constructive in 2021 certainly something to watch >> right we will be watching. dom, thank you appreciate it. still to come on "squawk box" on the other side of this break, talk tax backlashes new york stock exchange signaling they may move the exchange out of new jersey if they implement a tax we'll speak with stacey cunningham about that. you don't want to miss the news making interview with treasury secretary steven mchnuin couldn't be a better day to have

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welcome back to "squawk box. many high earning new yorkers leaving the city back in march, and now they're hoping to get a break on their city income taxes. robert frank joins us with the latest on that robert >> reporter: good morning, andrew they are hoping. nearly half a million new york city residents left in march and had been gone for more than half a year but they will still have to pay new york city income taxes. that's because new york city

does not follow the 183 day rule it bases taxes based on domicile or where your long-term home is. unless you sold your manhattan apartment, put your kids in a different school, changed your voting record, changed your driver's license, shifted all your services to your new location, unless you did all of that, new york city will still collect the 3.9% income tax for the new year facing a $9 billion budget especially for auditors. then if you decide to leave and come back, they will still collect all of your 2020 taxes they have one way out. the city'sen incorporated taxes.

those partnerships may not have to pay taxes on the days that they were away, but for the rest of us new york city will tax you even if you weren't here. >> thanks, robert. we'll continue a conversation about taxes. this is a slightly different variation on this tax debate a coalition of financial institutions are threatening to move out of new jersey if a tax is passed in the garden state including the new york stock exchange for a closer look, i want to welcome stacey cunningham. thanks for joining us. you do have this facility in new jersey there is this proposed trade tax on the table i'm curious, i know you're threatening now as are others. what the cost of that would be.

>> thanks for having me on it's important to recognize who ends up paying this tax. the announcement we made is in response to our customers asking us what we would do because they ultimately -- that tax gets passed onto the end user whether it be a retail investor, pension fund, professional investor, they're the ones that are going to end up paying the tax. new jersey is estimating that it's roughly $6 billion they could raise. that's far more significant than the actual fees that the new york stock exchange charges. we're responding to what our customers are asking us to look at. >> just to put a fine point on one thing you said you said pension funds would get hit.

would most get hit in part and others that are not for profits? >> there's no exception as it's proposed today this isn't a tax on wall street, it's a tax on main street. >> let me ask you separately, it's really the question i asked you at the top, if a cost like this were imposed, how much would it cost you to physically move your facilities to another state and what would be the implications of that >> part of what we're demonstrating with a test we've announced is it's pretty easy for us to move our systems we already have systems in other data centers for backup purposes so customers can connect the test we're holding in september is a test there and

what we saw if we learned nothing in 2020 is that technology allows us to do our jobs from anyplace we are ready to do that and if our customers are asking us to do it, that's what we'll do. the cost is not that significant for us to be able to be up and running in another location. >> so it's costless? if i was a shareholder of your parent company, it is costing me to go to do this. >> no. we would choose to refresh our systems in another location. >> the reason i ask is whether there's a significant cost that would be a one-time cost that would hit the shareholder for a certain period of time and how you'd amortize that.

>> i wouldn't say it isn't costless there is a cost to move the systems. it's important that the states that are asking for this tax are the ones that are going to end up paying in jobs moved outside of those states to facilitate those data centers and other aspects. what's deemed as a way to raise money will cost money. >> for the new york stock exchange it's roughly 100 jobs that's just us >> right how many jobs do you think we're talking about, 500 jobs? >> hundreds of jobs. several hundred jobs >> and how concerned are you that this type of proposal might run that i wanted to talk to him about that >> this is something that gets

but we had a u.s. financial transactions tax sweden had one and eliminated it in 1991 as they saw 51% of their volume move out of sweden and to london investors pay it more than once. they pay it on the transaction and they also pay it in the quality of the executions they get. anyone making a market and setting the prices on the exchange as a market maker is going to work that tax into their prices investors pay it on the trade and on the trade >> let me ask you a separate question i know you're not a public policy maker how would you suggest the state of new jersey, for example, close their budget gap >> you're right. that is a challenging question

i understand the position that new jersey's in. i understand the strain on the states so i underzanding is this doesn't do that and it could cost the states money rather than saving money. >> let me broaden the conversation for a moment. we were talking earlier with dom chu about volatility in the market we're talking about because it's unclear what it would mean for capital gains. if he were to win by the end of the year -- if he were to win this year, rather, that investors would consider selling shares in their companies to capture gains and capture the current tax rate rather than whatever may or may not come in the future how much are you hearing from professionals about that issue >> i think professionals are looking towards the election to

see what happens what's important is markets have operated through different positions with different candidates that come into office and markets continue to function what we're seeing is tremendous rebound and there is a lot of positive momentum in the markets. we've seen the ipo market be strong august was the busiest ipo market we've seen since october of 2013. august tends to be the slowest month. september is on track to be the busiest month in over 15 years for ipos on the new york stock exchange what i think that is also saying is there are a lot of companies looking to come to market in advance of the election, but we also have companies targeting q4 investors are receiving these companies pretty well. i think it's certainly indicative of the fact that there is long-term on tow

mission. we will watch this one so closely. >> great to see you, andrew. thanks. >> joe. coming up from wheels up to meals up ceo kenny dick tter teaming up with wheels up they're discussing their new initiative next. a as we head to break, here are the movers in the s&p 500. we'll be right back.

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highlighted needs across the united states. demand at food banks is up 60% and wheels up is partner iing wh other organizations to help the food insecure. we're five months into that initiative kenny dichter, c of wheels up and claire is with feeding america. you have done amazing. you have done amazing work kenny, bring us up to date initially the goal was one thing and you eclipsed that by a factor of five, have i got that right? >> up, came on this show with russell wilson he had a great game yesterday. almost a perfect game and

apropos to be here with claire we pledged 10 million meals on march 31 we've outperformed a shade before 50. hopefully by the time this broadcast is over we hit that number but i would just say, joe, as i said on march 31, this is really a callout to everybody watching this show we have a lot of ceos, a lot of founders, a lot of entrepreneurs that watch every morning we have to use our resources as companies to do good there are over 50 million americans that are food insecure that don't know where lunch or dinner is coming from. my inspiration, russell, sierra, tom, gisele, j.j., our ambassadors really showed us the light and the orange plane today that we're taking delivery on

from ron draper, scott donnelley, amazing support they're 500,000 meals on top of helping us design the plane and do deliveries. my quarterback, 167 days later is claire babineau, a great partner, real inspiration. claire should be the starve this segment. >> market or sales, i don't know how well you know him. if he says 10 million, you know, he's going to do 50, but i think a boring ceo could do 10 you don't need every single person to overdo it by a factor of five. why can't you get everyone on board even the ones that aren't good at marketing and raising money? >> well, part of the answer is this show right now and you having that call out out there as kenny said, he's been a

wonderful ambassador for our work, along with a bunch of other people together we've been able to inch towards progress we're looking at around 50 million people in the country who know where we're going to get the next wheel for themselves, the kids i'm particularly concerned about what's going on with children right now. we're looking at somewhere around 14 million in the country who will be food insecure as well as food insecurity that existed before it started. koom on, guys. let's compete on this. this is really good. >> kenny, i don't know whether

you can hear claire. >> i can hear. >> i was able to hear almost everything claire said kenny, do you know the facts for -- that claire was going to talk about in terms of how much worse food insecurity in america has gotten in the past -- i mean, in 2020 the numbers are staggering there's people that never had to do this before four out of ten are new to the process of not having enough to eat. >> the pandemic has clearly affected minorities, people of color and new people in this crisis in a way that we never could have predicted and, again, it gives us even more energy to get behind this. 4 in 10 people visiting food banks this year are new visitors, which is not a good stat number two is, i didn't realize this, as i was getting ready for

this interview, claire explained to me that because restaurants and the hospitality business are getting hit the way they're getting hit, there are many, many people in this country that work in a restaurant or fast food place just to get their meal done for the day and for their potential bringing it home for their family at a discount so with restaurants and hospitality getting hit, there's a lot more people out there that need to get fed. many, many restaurants are life lines for feeding america and that supply and that's gone away one thing claire explained to me, there are a lot of people that can help. there is a lot of food that's donating that can't get to the 200 plus food banks that they is he port. that said, there are logistics folks here watching the broadcast that they don't just need meals and food from suppliers, we need technology and logistics to help us

jeff bezos, i know you wrote a big check. 1 million meals. russell helped inspire that. we need folks that are experts from getting from a to b to c here reach out and call claire >> claire, we'll try your feed again. we'll take a shot. think about -- we know this. how many kids rely on school to get either a free or reduced lunch. i know one of my children has one day a week so that's four days that this hybrid system is making it a major problem. it was 10 million kids, now it's 17 million kids. we need to address that as well. >> yes that's all true. i think kenny really did a good job of talking through what the key issues are when you learn that kids can't

get back to school safely, so many of those kids, 22 million children rely on free and reduced lunches. that means they're not getting access to that nutrition and they need a way to supplement it we have made some progress, but there's so much more to do. >> kenny, while we have you here, i want to talk about wheels up quickly. we've had this discussion many times about what the pandemic is likely to do to your business. what's the state of what you're trying to do i don't know if you call it democratize, bring the cost structure down to where more people can do it has the pandemic helped, hurt, sort of about break even >> we're very fortunate we can

serve our 10 million members i will tell you the new member velocity is very, very firm. the addressable market for private aviation in the united states going into the pandemic was roughly 100,000 people in businesses it's feeling like 2 and 300,000. the flying, the demand, which is driven by three buckets, bucket one is people moving around, bucket two is traditional vacation and bucket three is business two buckets, traditional vacation and business aren't happening right now but i would say the wheels up members moving around have gotten our flying july, august, into september at pre-covid levels i think the tailwinds put us in great position it's been seven years. t. row fidelity, franklin templeton and delta behind us to look at the public markets we want to be the air bnb, the

tech enabler we want to talk about the people in businesses that can use private aviation to get from a to b we're in great position to do o so feeding america, you can rely on us forever i feel very sure, ed bastian, who is our leader, you learn about a leader when things aren't going well. >> hopefully a lot more will step up. we have a lot of influencers watching claire, i want to thank you. good luck. thanks for everything you're doing. kenny, thanks for what you did as well. we'll have you back again soon maybe you'll be at 100 million meals by then, kenny

>> andrew? >> good cause that you're working on we have a huge hour ahead here on "squawk box." we'll hear from treasury secretary steven mnuchin and mike novogratz and pete buttigieg. it looks like we're going to open up in the green tough week last week nasdaq up 117 points s&p 500 looking to open 31 points higher. we're back after this. the only thing that makes t-mobile's new offer on iphone better

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futures up across the board as we come off the nasdaq's worst week since march remember march and a tech sector shocker. we're told oracle will partner with chinese owned tiktok beating out microsoft as the trump administration deadline is approaching. really and we're going to talk about that, the stimulus stalemate in d.c. and the strength of the economy 50 days out from the presidential election with treasury secretary steven mnuchin shortly. final hour of "squawk box" begins right now. good morning welcome to "squawk box" right here on cnbc i'm andrew ross sorkin here with joe kernen becky is off we look like we're going to open up in the green.

dow up 182 points. s&p up 30 points and nasdaq up 100 points you can look at a ten year notoriety now trading at .674. let's also talk about some of the big stories investors will be talking about oracle has been chosen to be tiktok's partner beating out microsoft. oracle will take a significant stake in tiktok but not necessarily controlling stake. the white house hats set bytedance to announce a plan for the sale of tiktok or face a ban at the end of the month. so many questions that the white house told microsoft they couldn't pursue what oracle is

pursuing nvidia has a deal of $40 billion. they're using chips for mobile phones including qualcomm. softbank bought it for $31 billion. they're looking to improve the finances after bets on companies like wework and uber have deteriorated the ft looking to potentially take itself private. this could work into that. the british trials from astrazeneca have resumed they got the green light to resume it was suspended last week after reports of a side effect in a u.k. patient and that created

real concerns over the implications for that vaccine and the timing of these trials joe? >> all we know is that -- when we heard about it, it made me think, of course they said it's a blind study there's some people that get the vaccine, some don't and get a placebo. they pointed out that the person that did get it had come down with this odd illness was not part of the placebo group. duh. yeah otherwise they wouldn't have stopped the trial obviously. when you unblind it you find out the patient hadn't even gotten the vaccine, then obviously this disease which can occur for a lot of different reasons, but that's all we know we don't know anything else why suddenly it's okay to begin

again. i don't know how you would decide, you know, to go ahead and restart it if you still don't know the origin of this disease of the spinal cord which is an immune disease that you could see how introducing something like a vaccine could potentially result in that i don't know >> it's very good news because i think the worst case scenario, there were some concerns out there from doctors that if this was a genuine issue and a much more problematic issue, that potentially other vaccine makers that have some similar elements in terms of the production and how the technology works will be impacted a lot of people were watching and waiting. today, i'm not going to argue that the stock market is moving off of that. it didn't move off of what

seemed like bad news last week >> you know, to talk about it directly, we talked to dr. scott gottleib and many of these vaccines use the spike protein or an epi attorney-client privilege -- epitope if it became clear that introducing an epitope could make you sick, all of these vaccines are based on the spike protein. while we're waiting for the treasury secretary, andrew, we'll take a quick break and get him miked up and ready to go. >> let's do that we have the treasury secretary after this break joining us. after the secretary, we also have pete buttigieg joining us we'll talk about biden's tax plan and economic decisions and we'll talk to galaxy digital's

mike novogratz, markets, money, crypto as well so much more this morning. when we come back, we'll have the treasury secretary, steven mnuchin, right here on "squawk box. u can traand etfss for any amount you choose instead of buying by the share. all with no commissions. stocks by the slice from fidelity. get your slice today. [ engine rumbling ] [ beeping ] [ engine revs ] uh, you know there's a 30-minute limit, right? tell that to the rain. [ beeping ] for those who were born to ride, there's progressive.

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the latest in the stalemate, the senate's failure to move forward on a $300 billion republican proposal, joining us

now to talk about whether he thinks we can get a deal before the election, treasury secretary steven mnuchin mr. treasury secretary, good to see you. it was confounding to watch last week and there's a lot of the public at this point watching what goes on in washington and scratching their head. can you describe exactly what happened last week it seems like there was enough in that bill even though it wasn't everything everyone wanted, it would have been a plus, a net plus for businesses and others why didn't the democrats allow that to move forward what is the root of the disagreement between the senate republicans and democrats on this issue in your view? >> i think the bill clearly had components that are supporting kids and jobs and small businesses and there's clearly parts of the economy that need more work and the president and i want to have more support to

help those american businesses that have been impacted by this. i think there is many areas of this where there is an agreement between the democrats and the republica republicans. in some of the areas we do have differences on the amounts i will continue to work on this. i've told the speaker i'm available any time to negotiate, no conditions. we look forward. i understand the problem solvers is going to put out a bipartisan proposal this afternoon from the house so i look forward to seeing that as well. >> you do seem to be, unlike maybe some of the administration, the rest of the trump administration, you seem to be able to go back and speak with pelosi, but are you frustrated you're throwing out the bath water with the baby on

some of these things you understand where they're coming from and that they have legitimate issues? many are saying 300 billion is better than nothing. >> i'm not going to speculate on whether we're going to get something or not i think there is a compromise if the speaker is willing to move forward. i am somewhat concerned that she's afraid that any deal will be good for the president -- >> right right. >> -- you have politics getting in the way the speaker and i will be working on the cr this week, which is obviously a priority for us to make sure we don't shut down the government >> all right that's what i meant. you seem to be able to go back, thank you, sir, i have another i just don't understand how it works. would you call it a v shape, nike swoosh, check mark? we've seen the unemployment rate

fall below 10% is the second derivative slowing without additional help? is it going pretty well and we don't need additional help >> this is an economic scenario that nobody's ever seen. this is a scenario where we closed down the entire u.s. economy to combat this terrible covid-19 as we've reopened, you've seen an enormous rebound. the fact that we're down to 8.4%, people are going to have as high as 24% unemployment. clearly we are having a great rebound. we'll have a strong third quarter. there are areas of the economy, particularly travel, entertainment, hotels, small businesses, restaurants that are going to need more work. the president and i are going to continue to fight for those parts of the economy >> andrew? >> mr. secretary, i wanted to

pivot to another piece of news this morning that around the future of tiktok the president and your administration, i know you've been in the middle of these conversations and talks, has given a deadline for the sale of tiktok's u.s. operations, and i should say a full control sale was always our understanding given that was what's on the table with oracle? is ticktock still a threat >> the deadline is september 20th some people thought it was the 15th in the eo it's the 20th. we're going through two processes right now. i want to be careful what i say but i will confirm we did get a

proposal over the weekend that includes oracle as the trusted technology partner with them making many recommendatiopresen national security. i'm not going to go into the entire proposal. we will be reviewing that at the committee this week and then we'll be making a recommendation to the president and reviewing it with him. >> just so i understand, the microsoft/walmart proposal which appeared to be rejected, was your understanding that that was similar? >> i don't want to go into the details of the negotiation i would say there has always been a critical factor for us driving national security is making sure that the technology on american's phones is safe and make sure that it is not

corrupt. we've got a lot of confidence with microsoft and oracle. we'll be reviewing it with their technical teams and our technical teams. >> just to put one final fine point on this. the algorithm which is the central issue, releasing that or letting that live, if you will, on american soil and be in control of an -- is that your understanding what would be needed from a national security perspective? >> i'll say from our standpoint we need to make sure that the code is, one, secure, american's data are secure, phones are secure and we'll be looking to have discussions with oracle over the next few days with our technical teams. >> mr. secretary, you finally eluded to the real possibility

that there won't be another stimulus bill because there is an election coming up. are there executive orders being considered that will run out. how do you plan on approaching it, if there is no more stimulus are there other executive orders being considered >> we're always considering them the president will make sure he uses his authority to do whatever he can to help small businesses but there are limitations and that's why it's very important that we have stimulus that helps the areas of the economy that need support. americans are beginning to see the benefits of the economy reopening. >> do you think the housing data that we're seeing, foreclosures,

et cetera, is that -- if we don't get a vaccine quickly, could this turn into something much worse than what we're seeing right now there's some signs that it's in a lot better shape than it was in the financial crisis? could housing become a much bigger problem maybe slow the economy >> the good news is housing is nothing like it was during the financial crisis that was a situation where you saw tremendous amount of over aged lending we had a complete change on that we have a situation with gse reform where the gses, both fannie mae and freddie mac have allowed forbearance for people affected by covid. you see the president's executive order that impacts 40

million units. i'm more concerned about small businesses that are particularly impacted by the slowdown >> andrew? >> mr. secretary, the president told bob woodward on march 19th that he tried to play down the severity of covid and liked to continue to play it down taking february off the table but just in terms of that taking place on march 19th, what do you think the economic impact has been because of his efforts to play it down and the reason i ask you that is because it has you create more testing. there are questions why there isn't more testing and maybe efforts that would have come faster. >> let's just get the facts correct. let's just start on testing. mark meadows and i just had the

government enter into a commitment for over 150 million abbott tests that are going to be points of care tests. those will be delivered between now and the end of the year at point of care. we'll have tens of millions of more testing between now and the end of the year we have an abundance of testing. the second issue is the president made the very, very difficult decision i was there in the oval office when he made the decision to close down the economy it clearly was the right decision at the time and he's made the decision to open up the economy in a very controlled way. so i think when you look at where we are combined with we've made major commitments on vaccines they're going through 2testing, but we've committed tens of billions of dollars of

production to six or seven vaccines so we hope to have one of those completed soon so we can distribute to the american people >> mr. secretary, the -- i mean, we had stan drunkenmiller on when you look at what fed powell said if we don't have stimulus, they're prepared to shrink the balance sheet of the fed and extricating the federal reserve from what we see people on fixed income, retirees, staying at zero forever has consequences do you see a way out of this for the next administration, whichever it might be? >> well, let me just say, i

speak to that. right now is not the time to shrink the fed deficit and balance sheet. there was a time it was shrinking. the good news is that gave them a lot of room to increase the balance sheet, which they did. i think the monetary policy working with fiscal policy and what we were able to get done in an -- they've got the various 13-3 facilities we've worked on together i think you would see a very different economic scenario right now. >> you know, mr. secretary, the journal and freeman in sort of commenting on andrew's points about the shutdown, there is a

whole cadre that think less of author ri tharn views. you think the case could be made because it's going to be a key point in the election. do you think the case could be made as it was by "the wall street journal" that trying to keep the economy as open as possible was one of the things that we needed to do and that, you know, shutting -- we could shut down for two years but there are effects and what we've seen with the rebound in the economy and the markets, maybe we -- i mean, no one wanted 190,000 or 200,000 or 250,000 deaths, whatever it's going to come out to, but we're also trying to balance that against job losses and the loss of small businesses do you think that point can be

made prior to november >> let me say, i sit in the task force meetings from the beginning. there have been different views from the medical community from the beginning. we haven't seen anything like this before. i think the president got the absolute right balance now we have to keep the economy open i think you've seen areas where we can now operate safely. we'll have an abundance of testing between now and the end of the year. i think that's going to create confidence for people knowing kids can get tested at school. this is an extroitd naryury break through. >> mr. secretary, just to follow up on some of the comments you've made specifically relating to the steps you think the president has taken. the thing that i'm concerned

about is that the country never really did collectively shut down as you know, there was more than a debate around masks. it was between the president and states that didn't pursue masking early on when i say early on, i don't think there was health implications of using masks. february, march you can debate it but afterwards you don't think it's the worst when it comes to deaths that's empirical and everything related to that >> the issue on masks, i saturday and listened to them in the beginning. it was clear the recommendations coming out of the medical professionals were unless you

were a professional and you had a fitted mask that was a specifically medically designed mask, that it wasn't going to help so that was the recommendation and that's what we moved forward with at the time later on there was a view that you could use cloth masks. look, i think it's better to wear a mask than not wear a mask there are still different views of the medical issues, but we've had an incredible rebound in the economy. people didn't think we would be there by the beginning of next year we've reopened the economy safely now we need to get the economy back to where we were before covid. there are areas that had nothing to do with the issue would have been hurt.

>> mr. secretary, we appreciate all of your time we're going to have to end it there. we want to see you again hopefully in the near future treasury secretary mnuchin >> thank you. and a reminder, delivering alpha is back for its tenth year on september 30th the treasury secretary will be with us along with steven schwartzman, mary erdos, many more visit delivering alpha.com and learn more and register. andrew joining us right now to react to what we just heard is billionaire investor mike novogratz. he is the chairman and ceo of galaxy digital let's start in terms of the way the treasury secretary sees the economy but specifically whether stimulus is needed where do you land? >> i think steve did a good job of outlining what's going on

gdp is better, inflation is worse, unemployment lower. hard to be dovish. there's big parts that are still hurting. so how do you get stimulus to those places the one thing he missed was state governments and local governments are really hurting the dems want money for state and local governments and republicans want markets have done great. markets have done great means the dow and the s&p are roughly flat on the year the nasdaq is up 20. a lot of that is in a few stocks atz investors, a lot of rich guys have made money the rest of the country not so much that's kind of where we stand. >> mike, assuming that this standoff continues through

november and there is no money coming, what do you think the real implications are? >> there's this push and pull. the economy is picking up. on the flip side, i run the -- i'm on the board of the west side highway i look and that hasn't happened, they're on the come. if they don't get money, new york city will have a much smaller budget next year i think it can last through the election with 50 days left, this is all politics at this point. >> do you want to be in this market right now we've been talking about the volatility in the markets. we've also talked about what the implications may be if the

president were to win a second term or if vice president biden were to win. there were questions we were talking about if there was a biden win, what that would mean to taxes and whether you think there might be a selloff come the end of this year in that instance they want to capture any tax gains that might be a lower rate if you believe rates are going to go higher. >> i think biden is going to win. they're going to look and scratch their heads. better sell this year before the tax rate goes up he's going to raise corporate taxes. the people that have been benefitting the most are the .1% or 1 percent are going to get hit hardest by tax play.

it's not going to be good for the overall market >> just to follow up on that, mike, you're supporting biden. do you think that would be b better for the market. chairman powell put it and in both senses. it's a lot more conservative.

>> i don't see, you know, our deficits miraculously collapsing powell keeps it on the currencies are there and shortened dollars. there is a question. can we get out of the trap here. i don't know what you said, people like you were saying. >> it's at an all time

i know you're a democrat, god bless you. we're going to have pete buttigieg on in a second, and also talking about the markets you haven't been around for the markets for the last 800 points of the s&p and you've made the point, hey, don't feel bad for me i don't need the money i feel bad for people that might listen to you. i know you're doing fine whether it's all fluff and all fed and all stimulus, i don't know, i think there were some good policies there. we'll see. what did you say, that the democratic policies that they're proposing are more business friendly than the republican ones did you say that with the green new deal, free everything? did i hear you make that point >> i didn't make that point. what i made the point, for the country the actions start balancing out the disproportionate gains versus where half of the country is

living in the long run you get the country right and you get that balance right, markets will be stronger we're in a speculative frenzy. >> you think the chaos and the mean tweets were holding back the economy prior to covid >> no, i don't listen, i think the market was up because the economy was strong lots of liquidity in the system. we were running a 5% budget deficit before covid, right? trump was running irresponsible fiscal policy so there was a big sugar high being pumped through this economy 5% budget deficit is supposed to be reserved for when things are bad, not when they're good. >> we've cut corporate taxes and obviously that may be responsible for some of the good economic numbers that we saw the tax revenue even after the corporate tax cuts, the overall revenue was more or less flat.

these were -- we're never going to settle the arguments about which way to go. i don't know, certain things that i hear that i just have to push back on and disagree with we appreciate you coming on, mike go ahead, andrew i can thank him. you can thank him. we have so much more coming up on "squawk," right, joe? pete buttigieg. >> we have pete buttigieg coming up i'm going to have to calm down because i know we're going to hear some interesting stuff from mayor pete as a biden surrogate. i'll be here anyway, andrew. f it.

>> microsoft, walmart.

there is no comment. bytedan bytedance. corporate restructuring. oracle is taking a significant minority stake becoming the company's cloud provider oracle would take responsibility for privacy and data security issues that have raised concerns for the government as the company will be run entirely out of the u.s this will be part of the restructuring that bytedance has been pursuing to comply with sifius long before the president got involved and set a deadline for the sale secretary mnuchin clarified that it's september 20th. mnuchin clarifying that the proposal was received by oracle. he said the administration will review this proposal for tiktok this week and will have technical discussions with oracle over the next few days. i'm told that one reason that

oracle is securing this deal is in part because of close ties between the company and the administration safra catz has donated over $130,000 to the trump campaign and other republican candidates. they continue to have an interest in the tiktok investment with bytedance so we'll have to see where walmart can fit in here. andrew >> okay. julia, thank you for that report we've been reminding folks all day, all show that we're now just 50 days away from november's presidential election earlier this hour we heard from steve mnuchin on the state of the economy. >> so clearly we are having a great rebound. we're going to have a very strong third quarter, but there is also clearly areas of the economy, particularly the travel area, entertainment, hotels, small businesses, restaurants that are going to need more work and the president and i are

going to continue to fight for those parts of the economy >> joining us right now for some reaction and to talk about joe biden's plans for jobs in the economy, pete buttigieg, former mayor and biden campaign surrogate. mayor pete,great to see you this morning are you surprised by whatever -- i don't know how you want to describe the recovery, but given that we have recovered more than i think even when i talked to vice president biden on this program several months ago and the expectation was, he said very explicitly he did not think there would be one. >> well, anything short of a total constegration we can take as good news we're looking around and seeing something like 30 million americans relying on unemployment seeing a rise in food insecurity food insecurity in the united states of america.

clearly we are in for a long struggle some economists are talking about a u-shaped recovery, v-shaped recovery but a k-shaped recovery, those that had the most to begin with will pop right back to normal a lot of those who are most vulnerable are dug in even worse for even longer. i'm very concerned about what's going to happen with this $300 kicker on unemployment runs out. as i look around my community, i think we've got a long way to go before we can say that we have a strong economy but we're just not going to have a strong economy until we deal with the virus that's the simple reality of economics in an emergency. that's why we need a president who has a plan to do that, believes in science and is going to be honest with the american people instead of trying to downplay or mislead. when there's a real life national emergency on our hands.

>> mayor pete, one of the things that treasury secretary mnuchin said, this was not a time to think frankly of saving money or to think about the debt. how do you think about debt right now? and how would the vice president approach a presidency in terms of spending? >> well, you know, that's right. this is like war time. the biggest priority is making sure we avoid catastrophe. it's still out there we still have to make sure we're paying attention to our fiscal position it's one of the reasons the vice president has been honest about the american people about what's going to happen and where the revenue is going to come from. americans are already of the opinion that corporations need to start paying their fair share, that the wealthiest need to start paying their fair share. we have decades of proof in the american experience that when you do that, it's perfectly compatible with robust economic growth that's what we need. >> mayor pete, one of the things

that the vice president has said is that he will raise corporate taxes. what do you tell the small businesses out there, the restaura restauranteurs and others struggling that they may get a tax hit come 2021 if the vice president were to win? >> well, what i can tell you is under president trump those small businesses are paying more taxes than amazon. what you're going to have with the vice president, biden/harris administration is actually respecting small business and asking the giant corporations to pay their fair share look, the biggest problem with the american tax policy has been the loopholes. it's been the ways in which you can make billions. if you have legions of accountants, lawyers, you can park your profits in such a way that in some cases some of the most profitable and largest companies in the world are paying less in taxes than the small business, less in taxes than you and i did in dollar terms. that's not going to continue

under joe biden. in the long run, that levels the playing field so that those small businesses are better off. >> mayor pete, maybe we need to change some of the depreciation or tax loss carries forward that amazon uses. it's an american success story what amazon was able to do maybe we need to change some of those laws to arbitrarily say that we needed it, it was higher than most parts of the world. as a result, jobs leave the united states, go over there we don't repatriate any money. it doesn't come back in. even democrats even president obama wanted to lower corporate taxes. to just give the knee-jerk reaction that they're paying their fair share and things need to be raised, don't you think we should have a competitive tax rate with the world so

corporations can flourish, they hire more people, more jobs, more tax revenue from the people they hire? isn't a vibrant corporate so he can tore something that's good for the country and not bad? >> sure. i think we can have a vibrant corporate sector without multi-billion dollar profiting corporations zero. why do you suppose the job growth in the u.s. slowed down under trump from where it was obama? clearly what we had before was robust job growth. >> why do i think? because to go from 12 pers percent -- to go from 12% to 6% is a lot easier than to go from 6% to 3% that's just a total species shus argument to say the job growth was higher from 12% down to 6. >> all right so the obama/biden administration managed to get us from 12% to 6% astonishing. and a little bit more gets wrung out. >> any time we've had -- when we

have a recession the economy is going to recover that was still the slowest recovery in post world war history coming back from trump because they focused on health care for the first two years instead of focusing on recovery. that was one of the weakest recoveries that we've seen compared to the ragan recovery after a deep recession. >> faster job growth than you saw under president trump and the focus, you're right, was on getting the american people with health care. you're going to see a focus on joe biden is for the american people i think about my neighborhood, the retired public school teacher that lives next door, the retired postal worker that lives behind me. again, the american economy, corporate sector can do fine and very well under a fair tax code. we need to have one that will allow us to finance what makes

america great. part of why we have these american success stories is education, it's infrastructure, it's the things that at one time were the best in the world and now are not. there's a lot of measures where the u.s. has fallen out of the top 20, top 25 if we were looking at a developing country right now, one that's in the middle ranks of all the countries in the world showing up with a clipboard figuring out how is that country -- is that country going to make it, and you saw rising levels of hunger, you saw difficulty controlling the spread of disease and you saw escalating political violence and a leader suggesting he's maybe going to give himself a third, this may not be a country that can hack it that's what we've fallen into under president trump. it's time to get the country on track before it's too late common sense is telling us that it's obviously possible to have a lot of economic growth and a

fairer tax code than we have today. that's what americans had for most of its modern experience in the last few years >> mayor pete, before we let you go, the big headline of this morning in corporate america, really washington as well, is the future of tiktok and now what may be a transaction with oracle our own julia boorstin saying the relationship between them may be the result of a transaction going their way. what would happen in a biden administration what does the biden campaign think of what's taking place right now? >> what you're going to see in a biden administration is a vision that puts the american economy and national security first. there are very real concerns with tiktok and a lot of real software dependencies. we have to make sure they're prioritized not based on whether

the president was mad at somebody and did they get resolved not based on whether the president is friends with somebody what's going to make sense for america? what happens when he listens and instead of attacking and names e kind of oversight and transparency that frankly any republican or democratic administration other than this one is considered to be table stakes we'll have a much better way of dealing with these issues. >> mayor pete, want to thank you, as always, for joining us and look forward to continuing hopefully this conversation as these next 50 days move and i imagine moving even faster than we expect. but, thank you, again, for joining us this morning. meantime, jump over to cnbc headquarters and get a quick take on the markets this morning, which look like they may at least start the day in the green, jim what are you thinking about? >> we have so much good news

whether it be the gilead, that's an overpay but still there and terrific report by megea earlier today. this invidia deal and merck is taking a stock in seattle genetics and, then, obviously, what you guys were talking about with tiktok which i don't think is nearly done because walmart will be speaking and walmart as big as oracle. i think the news is great. obviously, the backdrop last week is that we are too high is there like a person who is older than 40 doesn't say we're too high begins to aggravate me after a while. >> jim, we will see whether things are too high or too low you're right, right now things look good. we appreciate seeing you we'll see more of you. you guys have some amazing guests coming up on "squawk on the street" including the ceo of

nvidia another ceo joining us right now that joe is going to help introduce. joe? >> gilead, jim, is referencing some of this big deal gilead to expand its presence in cancer drugs meg tirrell joins wi s us with e we'll pay you time and half today, meg third or fourth time you have been on. what's the latest? >> well, so, gilead paying more than 100% premium to acquire the $21 billion. this to get a drug for triple negative breast cancer but the company and analysts think could have much broader potential. we talked with ceo dan o'day this morning about the potential of this cancer drug and why they did this deal. here's what he said. >> allows us to really complement the portfolio that we have been putting together of

cancer medicines to help both in solid tumors, which is really what this medicine is for, as well as the work we're doing in blood cancers and acquisitions like 47 we did earlier this year >> meanwhile, guys, a lot of other news coming this morning in the pharma space. jim was just talking about merck and taking that stake. this is the same technology known as antibody drug focused in drug kancancer and news on te covid-19 front a drug from eli lilly when given on top of gilead's remdesivir. so, small gains. back over to you >> speaking of which, meg, david ricks, eli lily ceo. bring us the news this morning

that the drug we're talking about used in combination with remdesivir which seems to add to the positive effects for recovery for covid-19 patients >> it's the third, i think, successful medicine in a well-controlled study this time of remdesivir which works in a very different way it taps down your own immune response shown to allow patients to leave the hospital at least a day early and then hit on many other secondary end points this is a phase three study. we conducted in collaboration with gilead, as well as the nih. and we started this back in may. immediately after the first remdesivir positive announcement great news for patients. 30,000 people in the hospital today in the u.s. and perhaps many of them could benefit from this, if approved by the fda under emergency use. >> david, i'm wondering. so, this taps down the immune

system a little bit. doesn't some steroids do something similar? could there be a three-drug regimen or does one preclude the use of another that might even lower the recovery time even more >> well, we don't know that yet. of course, using anti-viral earlier in the disease, which can reduce the viral load makes sense logically does and then adding a drug like illumeiant which could reduce the body's overinflammation which could cause some of the severe lung and breathing problems from covid-19 is a rational selection. from the uk study you mentioned was done on any background gilead's remdesivir was done on any background looking at a combination rashinally we don't know the answer to your question probably some overlap in the steroids and that might not be as wise to study we are doing our own placebo'

controlled phase three with any background of therapy and that might help answer your question when that information is available later this year or next year. >> i don't think you developed this drug for covid. how big is the market potential? what are the other uses and what is the eventual size in your view for market potential? >> we didn't develop this for necessary business reasons this is part of an industry-wide company wide for lilly which started in mid-february for us our neutralizing antibodies and that is the data developing now and hope to have announcement shortly on that. we set up testing to support our state of indiana when there is a dire situation on testing and we tested in this case in a series

of cases to help patients. the treatment course is only 7 to 15 days the drug is oraaoriginally developed for rheumatoid arthritis and phase three programs for lupus and atopic dermatolo dermatitis and this effort was to respond to the global pandemic issue and make a difference for patients. we're super pleased that it does make a difference and in this day and age when we're all desperate for well controlled, scientific evaluations, that's what this study was. it is the gold standard phase three design within nih. we're pleased to be a part of that >> david, overall, just switching gears a little bit what do you think of the current state of discourse on drug

pricing? you know, it seems like both republicans and democrats are becoming much more, hands on about what i would even call price control. do you think the trump administration has it wrong on trying to get the same price for drugs here as abroad where they basically just have price controls you talked to the administration and push back on the notion that drugs are not worth what we pay for them it certainly helps to prevent hospitalization. >> exactly well, you know, we have the global industry as a u.s. industry basically 70% and many of the manufacturing jobs and a lot of the big companies are headquartered here even those that have a flag in europe, a lot of operations here that's because this is the best environment of the world that rewards innovation so, we staunchly defend that environment and speak to the trump administration and democrats and everyone else to try to do so i think the problem is health

care is complicated. and drug pricing is even more complicated and simple solutions like, oh, let's look at the price in france and apply it here a, won't really affect patient out of pocket costs. so, they have it wrong on that b, won't allow us to have a balanced system, which is fragile, joe, as you know. where investors will give us money to take huge risks on drugs like the one you announced today, the gilead deal with breast cancer. we have our own breast cancer efforts and alzheimer's. we spent billions of dollars looking for solutions there. no one will let us do that if there is not a reward on the other end. and certainly that reward isn't coming out of markets like france so, if we take their system, we won't have much of a business here to invest the way we do that said, we want to lower out of pocket costs for patients and there are other ways to do it. >> mr. rick, thank you thank you for coming on such short notice with this news

about the drug we appreciate it a lot >> all right, sorkin. >> you all right that was a big three hours. >> between the two of us, something for everyone i love twitter, don't you? but between the two of us, we got it covered we got it covered. anyway, thank you, see you tomorrow final check on the markets >> thank you "squawk on the street" is next that is us good morning, i'm david faber with jim cramer. carl has the morning off let's get a look at futures. we start a new week of trading and you can see maybe all that m&a. we did see significant