elan muskdo down playing the excitement ahead of the battery day and to london where prime minister johnson is expected to announce tighter coronavirus restrictions ed to, tuesday, september 22, 2020 we love summer and we are sad to see it go. "squawk box" continues right now. good morning welcome to "squawk box." we'll start with the markets after yesterday's big selloff. if you were watching this, this was something to be hold

the dow down by almost 1,000 points the decline of 1.8%. s&p by over 8% the nasdaq a miracle come back after a lay-date rally we've been bouncing around positive territory right now, the dow down around 14 points, s&p up about seven points and the nasdaq up about 70 points. we are talking about a town month for the markets, we are looked at four sessions in a row. that's the longest losing

streak looking at these numbers, you are talking about these lower numbers. >> month after month i think we had april, may, june, july, august are all up. >> stocks only go up >> not in september. in an election year it can take on significance. the nasdaq can move. we can see it down 400 or more points can that close higher again today? that's a good move you could look at it midmorning and then it seems like it is not

the tale at this point kind of the log. >> faang, tesla and the leadership move. >> apple made the rally yesterday too. >> gold is supposed to go up bitcoin, supposed to go up weird. that's where you think it is just money >> i was digging into the dow. the component was under significant pressure and saw the climb more than 5% the industrial names really getting

punished that could trace back to if there is a second lockdown those are skpektsed to be recovery stocks those are the ones that faced a lot of pressure yesterday. >> talking about that exact point, the drivers of this and what is moving the market. it is that potential for lockdowns. boris johnson expected to announce tighter restrictions. that will happen today julianna tatelbaum joins us in london with more on that good morning very good morning. boris johnson is set to address the house of commons shortly and then address the nation at 8:00 p.m. uk time he's expected to announce new measures among those is a 10:00 p.m.

curfew for pubs and restaurants and a move to table service only we could be cutting attendance at weddings from 30 to 15. we may get guidance to those working in the office and urging to work from home if they can. the telegram saying the second shutdown slammed in reverse the times, new 10:00 p.m. curfew a huge amount of attention in the uk on this this comes after the warning yesterday from uk's chief science testifyic advisor and medical advisor saying if cases keep doubling every seven days, then the uk is on pace to see 50,000 cases by mid-october. we saw the cases jump from three

to four. the numbers reported 4,000 cases. the third day out of the past four where we've seen these cases. to put this in context for june, july, august taking this back to markets, we are seeing the rebounds for the most part. this comes after a plunge yesterday. the main benchmark stocks plunge 3.2% travel and leisure continue to selloff. a huge amount of concern around what comes next and the impact of these new restrictions. >> guys. help us with this little piece, which is, i think a lot of investors not only worry about what is in the uk specific but that say to themselves is new york or other parts of the

united states or europe just weaks behind what is happening in the uk. speak to that. i think the measures being taken in the uk up until now are more relaxed than in the u.s. right now? >> that's right. i just spoke to brian sullivan he made the point where he lives, bars and pubs are not reopened at all. we are going out and there are rules around different venues. the uk has taken a different approach we have reopened more parts of the united states. it sounds like where you guys are, things have been more stringent. clearly here, they've sent this big warning that if nothing is done to change, we are headed

towards a dire situation come november >> nobody wears masks in london right now, right >> there are rules in different venues but walking around the street in public, it is not a requirement. >> all right thank you. tesla is holding its annual share holder meeting in battery technology day presentation. last night, musk tweeted downplaying the short term saying the announce won't reach serious high-volume production until 2022 tesla shares fell after that tweet. also said tesla intends to increase battery purchases from pan sonic and without taking

action, they would foresee significant shortages. shares of roku jumped when it was agreed for comcast. 20 million shares works out to the stake in 4% of the company a little tougher to do in this situation where the roberts family controls so much. >> what do you think

more recently, and then ge >> pepsi there was another one too. dow orone of those >> those around financial engineering and a bit of an effort spinning off and what assets, would you try to spin if

that was going to be your effort i'm not too sure they would be ready to spin off. >> they spent so much time putting it together. >> the ministay-at-home play, the broadband business during the pandemic has been knocking the cover off the ball businesses like nbc if you are dependent on sports or a theme park put them back togetherle and they don't know. possible, the pieces could be worth more, together with the sim foe knee

>> you got to get back in here with the delay >> saying any share holder would tell you the pieces are worth more than the stock is reflecting that's where they see things in agreement. that stock is undervalued. >> it is following the pandemic. it may have. prior to the pandemic, it was at levels it had never seen before. they almost got all the way back >> maybe the stock gets rerated here that would be the potential benefit he maybe shines a lot on it the issue for everybody right now, you look at a charter and the pure plays by default, the multiple they are capturing is higher. there is a potential almost in

marketing or education that you could get a rerating on the way nelson approaches it i've seen him do that a little before >> kind of interesting we've seen it happen before. we get a lot of attention for such a small stake about your stake, i think. after those contracts you sign being here 12 or 13 years. it is a tiny amount. yet, you get all this media attention. if i were comcast, i would go. well, nelson, what do you want exactly? >> it is not that much really then there is the voting control. you've seen it in the past you can shake things up a bit. sounds like a lot of money not that much.

0.4% okay we are talking about it. by the way, parent company of cnbc and this network. we should probably point that out. again. coming up on the other side of this break, let's show you stock futures right now. where they are headed. down on the dow but the nasdaq powering back. s&p 500 higher as well we'll talk big moves in travel and leisure and whether we are seeing a return of the lockdown trade. check out shares of the electric truck maker, nikola following the abrupt resignation of the company's executive chairman short seller accused the company of making false statements we'll have more about this story at 6:30 a.m. we are back after this ♪

♪ ♪ ♪ the big events are back.

xfinity is your home for the return of live sports. zoom is back in style. who could have guessed going back to work would cause the virus would spread not safe to go to the gym so we

are back on a peloton. what else is there to do when you are stuck at home other than watch tv and movies over the web. >> yesterday was pretty calm. >> less than 2%. among the stay-at-home winners time to separate the stocks benefitting and those that had a temporary windfall and the

performance of the selloffs like zoom, way fair, compared to the winners like match really >> that partner at 18:47 also with us. >> you got very offended when i said something about that pelt you have it is growing out. i like it better you think about that i'll go to greg. greg, you've been expecting some of these changes and the gap between stay-at-home or growth to narrow. you still expect that to happen.

maybe more slowly. >> i do. let me state unequivocally, if we see another spike, these companies are going to put up other third or fourth quarters i'm looking for a little longer term just as happened for 2010 and 2012, tech underperformed and overperformed as traditional sectors outgrew them from those who have been temporary or lead to the

baseline those with a higher baseline in that last bucket will be those that roulg with the experience in the structural shift or are posed to the e retailers. >> and those that could grow the quickest >> just looking at your notes, would you say we are in -- the market remains near-term vulnerable you think we have more to do >> i think the market has a longer term, whoever the president will be. clearly, what's happened is

we've had five consecutive months that have moved higher. you climb those five steps and you run, it is okay to rest on the top step the first thing you'll do is reach for a nice bottle of water and if you think about it, growth and megacap growth, microsoft. that's your bottle of water, you are not going to push for the sugary pepsi it is a good sign late in the day. watching apple, microsoft, salesforce again today that's where you'll find stability in the market. >> the old adages, you have a price target or a time frame but never give both. so 3,600 what is your time frame on that?

you mean in the next 12 months or 12 years? >> no, no. i think we'll get it quickly within the next three months. >> i hear everyone come on and say well this is a healthy correction it is not just a price correction where we quickly snap back like in 2017. so for the price earnings to chop and move. that is more healthy than we'll see in the last couple of years indicating the markets to

recover. we made a lot of progress and we haven't seen that. i can do 500 in my sleep the other one when the vichl spikes, reading when all of those went to croatia are there true concerns happening here >> i think there are we are building the uncertainties. we were worried about a second spike and whether or not we are going to get a stimulus we need to empower job growth and

consumer confidence. you no we are worried about the attention being deflected to the supreme court nominee. instead of taking care of risks, we are adding uncertainty to our plate. not to mention, we are worried about whether or not there will be a resolution to the election. >> as these come off, we'll see more normalcy. we expect that to continue to be very volatile. >> not like there was a lovefest going on before this now, we'll get another impeachment and get maybe 34, 35 justices, so it is 31-4 justices i don't know, what does it mean for more stimulus for

coronavirus? they are just at each other's throats, right it is not good can't believe the death of a supreme court justice really does impact the stock market at this point based on that stimulus, if you connect all the dots thank you. we'll see you and check back soon becky. >> poopoo platter. haven't heard that in a while. coming up, coca-cola ceo giving an update about going into seltzer and barry dillard will speak to you let's look at today's biggest pre-market gainers and the nasdaq amazon coming up in second place, then sirius, apple and facebook [ thunder rumbles ]

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time now for the executive edge coca-cola ceo says the company plans to release the first hard

seltzer. first update since july. here is what quincy told cramer last night >> we are going to follow the consumer in the old days, people were more regular meantled. there wasn't such a blurring about categories the consumer are trained in looking for new things >> releasing hard seltzer under the topo chico brand i have yet to try any of these but taking places by storms. >> love them i do they are light >> i have enough vices >> they are light.

i love all the flavors i like the white cloud can you get a little 12 pack variety. >> do you remember zima? >> so difference >> that's a beer >> it was heavy and filled you up like a big beer >> does it taste like bartels and james? >> no. >> what does it taste like, you go from drinking soda and say, wow, this artificial sweet ner will kill me before anything you get used to that ands it

great. a little bit of alcohol. >> so bowl and spring was your gateway drug >> so does andrew. he said i do drink sparkling water. that was his vice. >> i've heard sparkling water is bad for your teeth >> it is you should drink it with a straw. >> not with a paper straw. a metal straw. >> a reusable straw. this was the culture shift those first six go down so

smooth why you laughing it is a joke >> we have a big story we'll take a closer look at general motor's investment of nicola after the resignation of the company's executive chairman and a programming note alpha is back for a special anniversary with a special guest. visit delivering a look at yesterday's s&p 500 winners and losers as business moves forward,

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welcome back to "squawk box. it has been 13 days since nikola announced the partnership with gm until the ceo resigned. with us, former ceo of ford markets. great to see you help us unpack this. what is going to happen to

nikola and what happens to gm? >> let's talk about gm the reason they went into this partnership? they need to drive down the cost of their new batteries and improve the viability of the electric business. they get more scale of these batteries that will help drive down the costs it will allow them to use some capacity of the dedicated plants and electric vehicles. they get to share in the upside of the nicola equity with the issues coming up with nikola, mary barra is probably asking many questions and their board is probably asking questions such as did my team conduct a full investigation of the team and talent.

does she want to dedicate engineering, manufacturing and resources to the nikola project. second is, is the nikola brand now damaged weighing in the brand and weighing the market or the risk. so that's the question do you try to get out of the deal at this point. >> one of the questions i tried

to ask mary is how they had come up with and they felt with the valuation of nicola that so much of the transaction revolved around them taking a stake in the business and doing the work and diligence on the company and not just getting an out source company to pay you to do stuff, they were taking a piece of the pie here >> she is getting with her business development, head of manufacturing and saying listen, i want to double check this due diligence. steve gersky will become the chairman there he worked a long time with mary. he's probably getting on the phone saying, hey, is this a real company is it yojd a prototype and

business plan to helpful fill the obligations of this arrangement. right now, i think she has to double check on all of those things to make sure she wants to continue with this commitment. >> becky has a question for you. >> hey, becky. >> hey, mark, good to see you. what are mary's options? could she un-ralravel the deal is it possible to even unravel this >> to my understanding, it wasn't finalized they've put no investment here they've said they would provide those and do some of the engineering and manufacturing of the products

she has the option of finalizing this agreement and dedicating the resources to work with nikola and work this out there are a bunch of offrampps >> what happens to nikola if gm walks away from this if you read their sec disclose yures

the source around driving the company you have to ask yourself the question, were they misrepresenting on that and what were they vesting in there is a lesson here for any investor they have to ask themselves the question, is the technology or service real and is the governance real. when you go under that white hot light. you have to have very mature processions for control, governance and disclosure. >> here is the several billion dollar question. now that you are also not just an operator but in the investment business with ppg, what price would you buy into nikola given that it still

doesn't have a product and revenue associated with it >> in answer to your question, andrew, right now, i wouldn't buy. first, he has to resolve the doj and sec investigations and focus on the business plan and deliver the projects i would invest until they have the investor day that clarifies the capabilities and plans that put forward the milestones that layout until they have a day like that where they can clear the air, i would not be invested. >> always a pleasure you know the ins and outs better than flib. great to talk to you

>> great to talk to you again too. the latest battle over the supreme court. and election uncertainty both of those ad to each other what does it mean for the markets and your mng don't miss our exclusive interview thwi barry dillard that's what my dad does.

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the fight over the supreme court position is in full steam. >> good morning, becky you're absolutely right there. who controls the senate determines whether the next president will be able to push through his policy priorities, not just for the supreme court but also within his own cabinet and also on capitol hill that is why you're seeing so many political ads in this election cycle already blowing past projections advertising analytics have reached a billion dollars this cycle. the latest tally for tv, radio, digital ads is $3.5 billion. more than half of that is going to just five states. north carolina topping the list at $205 million. iowa 175 million followed by arizona, maine, montana. in each of those states and at the national level democrats are outspending republicans. in just over a weekend, the

group demand justice pledged to spend $10 million in the fight over the supreme court on the right the judicial crisis network said it would spend $2.2 million on ads specifically targeted to vulnerable gop senators and said it would also match democrats dollar for dollar now our own polling with change research shows only 43% of likely voters believes president trump should fill the supreme court seat if he loses the election in november 52% believe that he should not and that includes a majority of independents, young people and women. becky, all critical demographics back over to you >> ylan, thank you very much for more on the election uncertainty and the impact of the markets, let's bring in dan clifton. he is strategis research's head of policy research dan, watching the action yesterday. there were some people trying to speculate and figure out how much of that is the idea that the tensions in washington are

boiling over, that they are going up because of the passing of ruth bader ginsberg and the push to try to fill that seat. what do you think? >> it's interesting, becky we're 40 something days away from the election and here we are. you're starting to see a lot of the pressure that builds in when you get close to the election in a very close presidential election and senate election ruth bader ginsberg was almost the catalyst that exposed the transparency of this election. we have a pandemic, recession, mass protests and we have the election all happening at the same time. that's very rare and now you're starting to see the fault lines. can the government pass the government budget in the next nine days or so? are we going to get additional fiscal policy? it looks like it's less likely today after ruth bader ginsberg's unfortunate passing because it's going to be harder to find agreement. you have international relations going on

is trump going to do something on china before the first debate you saw iran sanctions go into effect yesterday there are crosscurrents after a big run up in the stock market i would add the last point is that a lot of our clients thought it would be negative for the republicans to move forward on the supreme court and that means that the possibility of a democratic sweep would increase. if that's the case, you will get additional spending and tax increases. if you have big gainers in the stock market, you might want to take some off the table with a 23% capital gains rate rather than 43% capital gains rate in 2021 there's a lot of different crosscurrents. i think the uncertainty is here. the unfortunate passing of ruth bader ginsberg has exposed this. >> i haven't thought we would see any additional stimulus package or aid package get

passed before the election, but the idea of the government shutting down, i didn't take that very seriously. do you really think that there's a chance that we see a government shutdown nine days from now >> so, first, i didn't think that we were going to get stimulus either so i was surprised by some investor's reaction yesterday that they were holding out hope that they're not going to go away without doing it on the government budget, there seemed to be an agreement amongst both parties on how that was going to proceed on friday at 4 p.m on monday we got a differing budget conclusion. it stripped out farmaid that the republicans had been requesting now i see the democrats are moving forward and they're going to pass their budget and they're going to put it in mitch mcconnell's lap. they're going to say take it or leave it my guess is he will ultimately say take it. we will avoid a government shutdown that was an unexpected development that happened yesterday in the middle of

everything else. >> what do you think would happen with the markets if we did see a government shutdown right now? >> we learned that it's temporary. you go back to the shutdown that happened two years ago at the end of the year into january the shutdown from the coronavirus is probably much greater impact where you're shutting down the whole economy. clearly it's an extra headwind and another level of uncertainty as we head into the election you'd rather not have that self-inflicted wound my sense is we're not going to shut down. we may see some headlines in the next couple of days as the two parties wrangle over it and given the relationship, get over the supreme court hearing. it's a littlebit of an extra head wind. >> dan, i hate to push you on this we're out of time, we have to run. would you tell investors to put money in here or wait and see? >> i would say be patient. if the opposition party wins the presidency, stocks usually go down into the election

that's not about republicans or democrats. the election certainty is going to go up a contested election, we'll have to work through that after the election as well in that respect, looking for something in a month is probably not the right place to be. long term it's going to work thank you, becky >> thank you good to see you. andrew okay thanks, becky. coming up when we return, a big two hours ahead. after yesterday's session finished off the lows, here are where futures stand at this hour we're back in the green across the board. dow up 10 points s&p 500 up about 10 points don't go anywhere because we have a huge show for you including kyle bass, barry di diller diane retired and opened that pottery studio.

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stocks on the move prior to a hearing on the hill with the fed chair and jay powell we'll tell you what you need to watch in today's trading session. that's coming up. will beijing approve oracle and tiktok's deal. discussion is straight ahead

london, prime minister boris johnson is talking today we'll get the flip from scott gottleib the second hour of "squawk box" begins right now. good morning welcome to "squawk box" right here on cnbc i'm andrew ross sorkin along with becky quick and joe kernen. u.s. equities, things have gotten a little bit better than where they were. now we've gone into the red on the dow, that is nasdaq powering higher s&p also looking to open higher, about 9 points higher, but the dow has been swinging around back and forth you're looking at it go from the red to the green just before the break we were in the green before so that's where we stand right

now. but, joe, it was quite a day yesterday. >> yeah. yeah one of those days where you -- you know, there's times i don't need to look at my phone, and that was one of those days i did not see the 900 points i heard about it later i'm kind of glad that i didn't see it. >> i was watching. >> what's that >> i was watching tick by tick >> and the nasdaq, too after a couple of tough weeks. anyway, at one point the dow was down more than 900 points before it cut the losses. i saw, okay, now 700, that's better little better. then on the way back to see the close at five and change was a pretty good comeback, dom chu. he joins us now with some of the stocks, the individual names that were behind that selloff. i guess any of them that helped us come back, dom? >> i mean, so like, becky, those of us who were in the office

hanging around saw the 900 points and then saw the kind of gradual comeback at the end of the day. there was a bit of dip buying. joe, to your point, there's been a different theme that's been developing over the past few weeks which has been leadership to the up side and down side the dow industrials, s&p 500 and nasdaq, we're all still negative if you take a look at the most recent highs that we saw just in the case of the last few weeks, remember, for the dow it's still not a record, but those are record highs for the s&p and nasdaq, those moves lower here have been roughly about 7% lower from those highs for the dow, roughly 9% for the s&p 500 and about 11% for the nasdaq we know that's been the big decliner in that span. if you take a look most recently at what's been the focus on the down side moves, it has been the megacap technology stocks and

o other dramatic themes. facebook and amazon are among the biggest decliners in the market move to the down side over the course of what you're seeing here. other ones to watch, momentum bases. lulu lululemon down 21% and halliburton down 17% megacap technology, oil, energy stocks and some of the momentum stocks powering the move to the down side. now take a look at what happened yesterday with the buying power picking up later in the session. these are stocks people put on their shopping list. it's fastly, zoom communications, peloton and docusign these stocks all went up anywhere 4 to 10% in yesterday's trading. becky, joe, andrew, as you take a look at the type of pull back we're seeing, the types of stocks that are going back on the list are the work from home, stay at home names that we've

associated with the covid-19 pandemic curious to see if that continues. >> i think we're waiting for liesman. >> dom, the other thing -- >> sorry, beck we're going to talk about powell >> i was going to point out the -- yeah. some of those stocks in the dow yesterday i thought were very interesting watching caterpillar roll over, dow, chevron, some of the industrial names watching the pressure from that. is that something because people are worried about worldwide technology >> there's no doubt. if you look at the way materials and energy both performed yesterday, it was indicative of what we've been seeing some names have been equally focussed at one point we saw a

multi-month winning streak for oil prices all of that comes with a spike up of covid cases in asia, latin america and headlines coming out of places like czech republic, spain, europe. all of those things really lead you to believe that if there is economic uncertainty coming up again, oil and energy complex, industrial type stocks are the ones that take a bigger hit. the only thing i would say, we haven't seen a huge amount of movement in has been the home builders of a regular to see them i'm not sure, becky. the industrials and energy had been outperformers over the last few weeks as people rotated into value. they were, again, not really immune in yesterday's selloff. >> you did great, dom. you spoke so long we fixed all

of steve's problems. before we get to steve, you have gotten good at the whole audio/visual thing do you there. if this doesn't work out, you could easily switch to we have a low pressure system, a front coming in. you point the right way. you could switch to weather so quickly with the skill set that you've developed at this point. >> here's -- i will -- because you and becky and andrew know about the way our set is set up here we actually have plasmas and images that get projected on these screens. i haven't spent a lot of time in front of a true green screen, which is what a lot of weather folks use. >> you could now. >> right now i can see "squawk box." >> you can >> i can touch it. >> no, no, this is not a green screen this is a plasma tv. when i was standing in front of that wall -- >> so you really can't -- so you don't have that skill. all right. you're stuck. >> i'm stuck here for a while. i need to spend more time on the green screen.

>> our benefit and viewer's benefit. messing with trump, bigly, fastly thanks see ya now fed chairman jerome powell, steve mnuchin will testify before the house financial committee this morning steve liesman joins us you're at home we are still at the -- we just never know, right? until you get back are we ever coming back, do you know that's a different story. >> i'm waiting for the call, joe. i'm just waiting for the call. i'm doing what i'm told. i'm staying home here i am. i'm going to talk about fed chair jay powell and treasury secretary steve mnuchin. they will take to the hill over growing pessimism that congress ask reach it

both will tell the house financial services committee that the economy has improved but they're going to link it to aggressive government spending and trillions of assets from the federal reserve. powell will say, quote, household spending looks to have recovered 3/4 of its earlier decline likely owing in part to federal stimulus payments and expanded unemployment an his testimony says i believe a targeted package is still needed they're ready to meet a bipartisan agreement the hearing takes place a day after the numbers show it will balloon from 190% to 104 by 2021 and 190 by 2050. that will drive up debt service

to 1/3 from 1/5. the treasury secretary said now is not the time to worry about shrinking the deficit or the fed balance sheet. >> one of the big issues is the one about whether or not the treasury is taking enough risk with the money that congress appropriated >> steve, that comment that mnuchin made about now not being the time to start shrinking the balance sheet, that was a pretty widely agreed with statement from most financial followers, right? >> it is, and it also comes with sort of simulations or models that were done that if you don't spend the money, actually deficits end up being higher because you end up with worse economic outcomes and, therefore, less tax revenue. >> steve, thank you. good to see you.

bye. when we come back, what the tiktok drama means for big tech companies that are trying to do business in china. and less than an hour, iac expedia chairman barry diller will be our special guest. we're going to talk about the media landscape, big tech regulations and what it all means for the markets. speaking of markets, let's check out the futures at this hour right now the dow is at the flat line indicated down by 1.7. the futures. never mind, now it's positive. this comes after a big decline with the markets down 500 points s&p up 9 points. the nasdaq futures indicated up by about 79 points "squawk box" will be right back.

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welcome back to "squawk box. president trump saying he will not approve a tiktok deal if china has any ownership of the company. oracle meanwhile says the new company, tiktok global, will only be american owned though currently bytedance has said it will own about 80% for more on what this drama could mean for companies currently doing or trying to do business with china, i want to bring in dan primac axios's business director and joanne lipman dan, i'm going to start with

you. i want to tell my colleagues, becky and joe, that i'm having a little bit of sound trouble so i'm going to ask them maybe to take over in just a moment but, dan, start with us right here, which is, do we think that this transaction ultimately is going to happen given where trump has come out we also now have clearly the chinese government saying they don't even want to do this deal the way it's been constructed. we have people on both sides claiming two very different deals have even been agreed to how does this even happen? >> that's a great question this is the messiest deal. you've covered deals for as long as i have for over a decade. this is the messiest single transaction i've seen in a decade i do think this is going to get done it's the only solution to the requirements that trump and beijing has put on this. if you're bytedance, you're stuck between a rock and a hard place. imagine bytedance the treasury says, these are the changes we

want to your proposal. bytedance says, okay, we'll make all of them. after that you'll hear trump say, maybe that's not the deal beijing not liking it either i do think it probably gets done but, man, this thing continues to be a mess >> joanne, in terms of how this deal gets done, a, are you in agreement with dan that it gets done and what does that even look like? >> yeah, andrew, i've got to say, this deal -- don't you feel like this deal is a metaphor for 2020 it is a mess it's ugly. nobody can agree what's going on and we have no idea how it's going to end up. so, yeah, i do think there is an incentive to get it done, but to back up for a secretary, let's think about why we were supposed to do this deal in the first place, for security reasons. the united states was concerned china would get its hands on

private information of u.s. citizens this is going to be an increasing problem china is only increasing its high tech output, as are other potential adversary countries. this is something we've really got to get this straight this is all for american security we were supposed to get our hands on code and algorithms it doesn't look like we'll have that, we will have a minority stake and we don't have control so, therefore, it doesn't seem to be actually ticking any of the boxes that it was supposed to to solve this deal in the first place. >> right >> dan, can you try to settle this for us? maybe it's unsettleable because nobody knows the answer. a, do we really think we'll have access to the algorithms eventually, once, as the company likes to say -- as bytedance likes to say, once it becomes

tiktok global and the investments are made, effectively the investments are distributed to all of the other investors? that's a year from now i will say a lot of things can happen from now to then. >> for starters, the thing that would behoove everybody, lease the term sheet there is an actual deal. reporters like us are talking to people who say they have read the term sheet then they have different understandings of what they're reading. given this is a government deal done by an elected official, there's no reason not to put it out public we can know. where we have the algorithm, yeah, if this is going to run off of a server, it can be borrowed and live there. the question is whether it can refence it or not. oracle says it can china is saying, we're not giving it to them because they have to save face also the control piece also is

interesting. my understanding of the deal, again, without the term sheet, is that basically the current shareholder structure of bytedance gets transferred over to tiktok global which means bytedance, ceo, its employees would have a piece but the majority of shareholders would be u.s. >> once you have oracle and walmart -- >> joanne, let's talk about the bigger implications, what do you think happens to american companies in china right now there's a story in "the wall street journal" today, cisco has pulled out of china. i don't believe their business is that big but could be impacted we all talk about apple. we all talk about a backlash against other american companies in china how should we think about that >> yeah. "the wall street journal" piece that you reference is the one that also talked about china has a black list of american companies that it could

retaliate against. obviously that is a concern, but at the same time, you know, chinese consumers as well as chinese technology companies rely on a lot 6 american technology that is kind of a big gun that so far there is a dance. this is a much larger war. this is a little bit of a skirmish that we're talking about and a much larger war. literally i think the united states needs to have a coherent strategy that we can all gather around and understand. it's very murky right now, but we need to have that strategy because as you point out, there are implications not just for tiktok and oracle and walmart here, but for american -- corporate america at large

>> right dan, finally the other question i wanted to ask you is legally do you think somebody's going to try to challenge this deal in the same way that clearly the executive order on we chat is being challenged right now, which is to say this has been a somewhat undemocratic system in terms of how this deal got done. it's one of the few if only transactions i have ever even reported on where effectively the government negotiated the transaction and whether you think there are going to be folks coming out of the woodwork to try to block the way this took place >> well, i mean, for starters, they should. tiktok is the first one, right, andrew tiktok filed a lawsuit tiktok thought over the weekend it had a deal so it didn't have to go forward. although it hasn't withdrawn it so it's still there. treasury -- i'm sorry, commerce

department only delayed that sort of block by a week. if we're in this same position by this time next week, tiktok is blocked, the way the people described is the process of the e.o., they'd probably win like wechat did the e.o.s were very sloppily written. courts don't generally like telling the government that it's wrong about technical national security issues. >> okay. the debate and soap opera continues. dan, joanne, appreciate you joining us with your perspective this morning becky? >> thanks, andrew. when we come back, we've got a list of stocks to watch including amazon, which was upgraded this morning. the stock is higher on that news got the details right after this. right now as we head to a break though, look at this morning's winners and losers in the s&p 500. autozone leading the way for the

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aflac trivia question. which biotech company was founded in 1980 as applied molecular genetics the answer, amgen. applied molecular, am, genetics amgen. a couple of stocks to watch this morning. autozone reporting quarterly profit of $30.93 per share compared to a consensus estimate of $25.01. revenue also beat forecasts. same store sales rising better than expected 21.8% and amazon upgraded to outperform at bernstein with the price target of $3400 the analyst there says the stock is down 16% the last couple of weeks. that's an attractive entry point. nikola remains the stock to watch after the electric truck maker shares plunged after the resignation of trevor milton

separately "the wall street journal" is reporting nikola will turn to an outside supplier to provide batteries for the semi truck supply. when we return, the cdc in hot water again after flipping on airborne virus spread we'll ask dr. scott gottleib about that we'll also get an update on the growing hot spots cropping up in europe, in the continent "squawk box" coming right back mama! from the first loving touch, everything that touches your baby should be this comforting that's why pampers, the #1 pediatrician recommended brand, helps to keep your baby's skin dry and healthy so every touch is as comforting as the first pampers. the #1 pediatrician recommended brand

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welcome back, everybody. a potential for more lockdowns in europe. u.k. prime minister boris johnson expected to announce tighter restrictions today julianna tatelbaum joins us today. >> reporter: good morning, becky. u.k. prime minister boris johnson will give a message to the house of commons among the new measures set to come into effect are hitting the hospitality sector in particular we're due to get a 10 p.m. curfew for pubs and bars we're looking at a move to table service only we could also see a cut back in the number of people allowed to attend weddings from 30 to 15. potentially changes around guidance from working from the office with the government encouraging people to work from home when possible

now this statement comes after yesterday after we got a stark warning from the country's chief medical officer and chief scientific advisor warning that if the number of cases continues to double every seven days as they are now, then we could be heading to a situation if by mid october when we've got 50,000 cases per day. they said yesterday that we have raised the security warning or the warning around coronavirus from a level 3 to a level 4 which means the virus in general circulation and transmission is high or rising exponentially the chief scientific officers said numbers are increasing across all age groups. the biggest increase has been among 20 to 29-year-olds followed by 30 to 39-year-olds we are awaiting the statement from the prime minister. tonight he is set to address the nation at 8 p.m. u.k. time markets are on the mend here in europe we have seen stability come through equities yesterday we saw stocks plunge

on the back of these developments and markets are, no doubt, waiting further clarity the travel and leisure sector getting hit hard we're looking at what this means for travel around the region becky? >> julianna, thank you very much joining us right now to talk more about all of this is dr. could the gottleib thank you for being here today. >> thanks a lot. >> let's jump right in this concern about what's happening in the u.k. and more broadly in europe, a huge reason for the market selloff i wonder if this means we'll have a lockdown in europe. if we see a second lockdown, it could come here. what do you think based on what you see? are we in the same position as europe or have we been taking things more slowly and more

cautiously >> i'm not sure we've been approaching this much differently than europe. we are seeing a pretty sharp up tick here. whether that's a post labor day bounce and it will level off or it's the beginning of an up trend heading into the fall, it's unclear we'll need a couple more weeks of data to know whether or not this is a discernible trend heading into the fall and winter there is a real risk as we head into the fall and winter this will come back all of us are concerned. we haven't had to contend with the virus in the season it likes to spread, which is the fall and winter this is a respiratory pathogen that will spread in the winter we've had to deal with it in the spring and fall. now that said, i do not believe that we're going to reach back to certainly a national stay at home order or even sort of pervasive lockdowns or stay at home orders. i think the mitigation is going to be a lot more targeted. you might see certain cities

taking stringent steps when they have dense epidemics it will be much more targeted because we have testing. we'll know where the spread is and in part because we have much more confidence around our ability to treat this. i think the capacity of the hospital system is enormous relative to what we were in in march, april, may. hospitals have stockpiled equipment. doctors feel much more positive taking care of patients with covid. we've substantially cut in hospital stays and mortalities so we'll be able to turn over cases much more effectively inside hospitals. >> in the u.k. they're talking about their cases doubling every seven days they've been looking at hospital admissions doubling every eight days they were talking about testing. in the beginning you said you don't think we've dealt with this much more differently than they have. at the end it sounded like we weren't going to be in that position where are we in terms of would we wind up in a situation like the u.k. was

>> when i say that, i think general compliance to the social distancing, mask wearing, anything like that the whole across the nation has been less of what you've seen in europe you've seen compliance spotty here certain parts of the country you've seen pretty good adherence to some of the social distancing and mask wearing and certainly here in the northeast. other parts seeing very low compliance that's what i was referring to when i said in terms of how we've been dealing with it at a consumer level. europe's done a good job they have a good health care system when you look at what's going on in the u.k., you need to think of it as being a dense epidemic. we'll have situations heading into the fall and winter if you believe this comes back, we'll have situations with certain select cities have dense epidemics. houston had a very dense epidemic, miami did, phoenix did. i think the combination of what

governors did, it was slow to act, no question about that, eventually they took targeted mitigation combined with the population of things like mask wearing, social distancing combined with getting better testing, combined with alleviating burden on hospitals by suspending elective surgeries for a period of time that combination of activities was enough to get these epidemics under control. i think those are likely the things to reach foreheading into the fall and winter on fair and accurately a rotating basis. hopefully this isn't a con fluent epidemic. there are going to be sporadic hot spots or not so sporadic hot spots as you see flare-ups in different parts of the country. >> what the heck happened with the cdc guidance zbled the idea that they put on their website that aerosol sprays are probably largely responsible for some of these issues but then took it back, took that guidance back later. then all i can think is that there's complications because they realize by putting those

scientifically backed facts on the website it means businesses, schools are going to have to take much more extreme measures in terms of ventilation, am i missing something? >> i think that's right. if, in fact, there he is a conclusion this spreads through aerosolization, that changes it. it's hard to believe this was an accident, the reality is there was nothing surprising in what the cdc put up most people assume this is droplet transmission under ideal circumstances you get aerosolized spread if you get the right person with the right condition you'll get a spread pattern as opposed to droplet transmission it's not a binary choice these things exist on a

continuum. a virus that spreads predominantly through droplet transmission under certain circumstances will spread through aerosolization you'll get drying and suspension of the droplet nuclei, viral particle i think people need to assume that's the fact. most scientists assume that. i would expect that at some point cdc's guidance is going to conform to the reality that i think most people have come to accept >> scott, i know that you were obviously former member of the administration, but can you just speak to the credibility of the cdc at this point and the politization of the cdc and how concerned you are about that. >> well, look, i know some of the professional staff at cdc and i suspect they have to feel bad about what's going on with the organization at this point they take a lot of pride in that organization and how that agency

is perceived this is deeply concerning. seeing these kinds of activities where guidance gets drafted and posted on the cdc website, those things are concerning. you need to be able to accept that the material being put out by an organization, by an agency represents the view of that agency and if the administration wants to put out an alternative view on some of these things, they're free to do that. they should put it out under their signature and not put it out under the imprint of the cdc. it shouldn't have the cdc's logo on it if it's not their work we can know what the cdc thinks and what the people drafting this material think. that's the most corrosive information. seeing information get put up on the cdc website doesn't necessarily represent the work of the cdc scientists or doesn't represent the consensus of that agency >> scott, it's more troubling than that because i know that businesses and schools are following the guidance that's on the cdc website and when they

say we are following the guidelines, they're not doing anything beyond what's required on that cdc website. this is a reliability issue. we have to follow what they're doing. how safe are those schools and businesses right now >> look, that's why i think it's corrosi corrosive. you don't knowwhether or not what you're following represents the expert opinion of the cdc scientist or whether it represents a policy point of view and so that's why it's important that the information that's made available be represented by the people who are developing those facts look, i think by and large the material on the cdc website represents the work of the staff scientists at the cdc. i think we know where the touch points are where there's been some political consideration about what's getting posted and some political involvement it's around the testing and things where we've seen push back from the business community. i think at this point we should be circumspect about whether or

not those draft guidelines were accidentally posted as has been the story over the last 24 hours or whether there was some push back on the guidelines quite frankly six months ago, a year ago we probably wouldn't have suspected that. we wouldn't have been suspicious right now after this environment, after we've seen the heavy editing of mmr reports, that's the problem with doing things like that, you ruin the credibility of the organization and you don't get the benefit of the doubt in moments like this if, in fact, it was a mistake and these are going to be put-back up in some form that's consistent with the draft that was posted in the last 48 hours. >> dr. gottleib, thank you it's good to see you >> thanks a lot. okay a lot more coming up on "squawk box" this morning. tesla's elon musslike provide an update on the company.

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welcome back to "squawk box" this morning take a look at futures right now. we want to show you where things stand. we also want to show you what's going on in europe as well dow looks like it would open up 38 points higher nasdaq, 71 points higher also looking atz the s&p as well green arrows across the board in europe of course, there had been lots of concerns about the spread of covid specifically in the u.k. and concerns about whether that is a precursor to potential shutdowns and things like that elsewhere in europe and potentially longer term in the united states. we should tell you the prime minister, boris johnson speaking right now as we speak, to the house of commons among the headlines, he says that the u.k. has reached what he's calling a perilous turning point and this is the moment he says we must act he says he will introduce new restrictions in england but this

is not a deterrent to a full lockdown schools and universities will stay open. office workers can go to work or, rather, i say can work from home he's now saying should do so starting on thursday all pubs, bars, restaurants must do table service only and businesses will be fined if they break the rules. pubs will close at 10:00 at night though we should note there's a number of scientists and others in the u.k. who are saying that on the pub issue is not enough. >> joe >> pubs and bars. >> we were asking whether it was different than what we're doing over here. >> i would not set foot in a pub or a bar. >> right. >> they're closing at 10 i think that's -- you know, that sort of sums it up >> most -- >> saying pubs and bars. get the hell out of the pubs and

bars get your hard seltzer at home. >> there's a lot of criticism of it the view is if you close at 10, people are going to start earlier effectively given the culture. >> you can't get covid before 10 p.m. >> yeah, exactly >> that's a crazy thing? you can't get covid before 10 p.m. something changes magically like cinderella's shoes at 10 p.m.? >> the concept, i don't think it's a rational concept. the rationalization was as people stayed later at the pub, they might have drunken more and more. >> more careless. >> became more careless. the issue in this case is if you told me the pub was closing at 10, you might take another round, if you will, at 9 and get a little careless earlier. that's what has people concerned. >> you just go at 3. >> right coming up -- >> especially when you're working from home. >> yeah. low ceilings in the -- you know,

the people next to you >> yeah. >> i just -- i've got -- >> i don't know if i'll ever get back to normal where i don't have that phobia i don't like anyone -- we're all different. we've all been changed elon musk getting ready for battery day, but he may not be partying up like many had expected last night musk tweeted this, downplaying the short-term importance of the announcements at the event later today he said, the unveil affects long-term production and that might be disappointing to some what they announce won't reach serious high-volume production until 2022 the stock trading lower this morning after that tweet last ght. we'll discuss it all when "squawk box" returns

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to my family's traditions. he has to know where he comes from. we need internet essentials. there's no excuse to not get connected. tesla's annual meeting, a routine event that sometimes generates news is going to be taking a back seat to the company's first battery day today. it starts right after the annual meetle phil lebeau joins us now he's got more on that. >> the battery test is what tesla has been waiting for yesterday late in the day, elon musk sent out a couple of tweets basically setting the expectations perhaps a little lower than what people were thinking going into today. he wrote, this affects long-term production, especially semi, cyber truck, and roadster, but

what we'v announce will not reah serious high-volume production until 2022 he went on to tweet -- we still foresee significant shortages in 2022 and beyond unless we also take action ourselves. think the indication is they're going to be doing more battery cell production an clearly investment to expand battery production this is where they stand right now in their battery cost advantage. this is why tesla leads the industry when it comes to e.v.s. they're lower in terms of overall battery kroft per kill waut hour. at $156. there you see the other types of batteries that are used in electric vehicles. in terms of battery cell costs, tesla says they're undergoing

100 kill a watt per hour most believe if you get down to $70 a kill waut, you're close to break even tesla is also expected to lower not only its battery cost targets but expansion in battery production, maybe higher density battery cell that's in development. they're currently top range on a model s, 402 miles fully charged. don't forget the battery day start this afternoon at 5:30 p.m. eastern time. as you take look at shares of tesla, you will likely see a little bit of movement in this stock after hours. guys, one other thing to keep in mind we saw this when they had autonomy day, when they announced the new glass shingle solar roof, that they will make pronouncements elon musk will make grand announcements here it doesn't nicely mean we'll expect to see those on the immediate time frame

often he'll say this is what we're going for, but it's going to take some time to get there. >> nothing on the autonomous, do you think, phil? >> not today it may come up in the annual meeting, but today it's primarily focused on the battery cost they have the advantage right now. >> i wanted to get you to say battery again. >> battery. >> chicago is not a protected like class i mean i don't have to worry about, you know, making fun of an accent. probably i guess i probably do. >> any time you want me to come on so you can make fun of me, joe, i'm all for it. >> battery day let me see if garrett nelson says battery or battery. garrett nelson, analyst at cfra. does he lower expectations he doesn't usually then i want to get into the nuts and bolts about what they are trying to achieve because it's prosecutor arcane and pretty

detailed what they'd finally like to get with batteries let's talk about that. what are you expecting to hear >> sure. thanks for having me the first thing i would say, you know, we would caution that it's going to be very difficult for tesla to exceed the hype surrounding this event because it comes almost five months after when they had originally scheduled it it's been delayed a couple of times, but that's also bought elon musk more time to innovate, deliver, and really impress the street so, you know, we think that they will unveil a million-mile battery today, a battery that's capable of exceeding the drivable life of a tesla vehicle, which will really enhance the value proposition of owning a tesla and really further solidify their dominant market share in e.v.s, which tesla has accounted for 58% of all electric vehicles sold in the u.s. last year, up from 14% five years ago

>> so that's good. but in terms of, you know, not having partners, not buying it in other places, making their own, that timeline is getting pushed out any developments on the real high-tech nature, you know, the stated intention to try to use either le either use less cobalt or get rid of cobalt completely, using a tabless battery so it's easier to hook up, anything on that horizon? are we using anything of that issue? different compound high-tech? >> sure. we think what tesla -- they'll provide more detail about a plan to reduce the cobalt density of a battery. and they eave real and they've really been working hard with their partners catl in china and panasonic, where we think they have, you know,

reached a point where they could make a battery with no cobalt whatsoever, which would be a huge breakthrough for tesla. we think they'll provide a lot more detail on the cost and content of the battery probably what elon musk was referring to in that tweet last night is they'll start producing in high volumes this battery starting in 2022 until then, they'll rely on their partner, panasonic and ctal to produce the batteries. >> we've got to keep it short, garrett. we'll all be watching. maybe he'll lower his expectation when something earth-shattering comes up. we hope. hope springs eternal andrew. coming up ahead, our exclusioner interview with expedia chairman barry diller

who will give us his latest take on media, travel, and so much more that's ahead after the break take a look at the futures right now after the wild day yesterday. gsre looking a little better on nasdaq, but down s&p we've often wondered what keeps the world running. economics? algorithms? magic? turns out, it's you. doing your thing. dreaming dreams. building new worlds.

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good morning what a difference a day makes. stocks much calmer in the premarket after yesterday's big-time selloff and late-day rally, but the major day averages still on pace for a first down month since march. and tiktok possible sale of kwiquibi. we've got a sudden rush of media stories on hand and the perfect

guest to discuss all of it, barry diller and we'll dig deeper into the tiktok tensions with noted hawk, kyle bass. the final hour of "squawk box" begins right now good morning. >> good morning. >> and welcome back to "squawk box" back hear on cnbc i'm joseph kernen along with becky quick and andrew ross sorkin we had turned positive on the dow but saw a weakening of the nasdaq which for most of the morning was up about 70, 75 points it's still up, 70, 75 points down now though. a minute ago down 70 points. those were worst levels than we've seen in the premarket

session since "squawk box" has been on. you see the s&p is more or less flat right now yesterday, if you don't know, we saw more than a 900-point drop for the dow followed by a late session comeback the index ended down about 500 points, but there you can see some of the seven, eight, and nine handles on the dow prior to the close. and then treasury yields this morning, .67, without commentary it's been there for a while, becky. i don't know i'm trying to figure out a way to make it interesting, but i've given up. >> yesterday i saw at one point >> it was like reaching for a light bulb and the next thing,

you know, horrible horrible anyway. >> we digress. let's get you caught up on some of the stories investors are going to be talking about. british prime minister boris johnson announcing new restrictions to tamp down on the coronavirus in the uk. he says office workers who can work from home will do so. pubs have to close at 10:00 p.m. because you can't get covid before 10:00 p.m also businesses breaking the news will face fines johnson says these restrictions could last six months barring any progress scientists warn yesterday if the number of cases continues to double every seven days as is currently the case, there could be 50,000 infections a day by mid-october. tesla is holding its first bat ray day today. it'sexpecting to announce a ne battery cell it's developed, but elon musk himself saying, important note about battery testing day unveil

this affects long-term production of semi, cyber truck, and road sterks bster, but what announce, will not reach serious high-volume production until 2022 an editorial in china's state-backed global times says the terms of the potential deal says washington's style and -- oracle and walmart said they will buy into a new company called tiktok global that will be primarily owned by americans. tiktok's owner bytedance said it would own 80% of tiktok global, and, again, you have different companies trying to appease different administrations. u.s. companies trying to apiece the u.s. administration. the chinese making sure it's bowing to the chinese government in this situation, and it's hard to know if all sides can match up

becky, tiktok may very well be a great place to start this next conversation. ica expedia barry diller is with us there's so much to talk about with you in terms of travel and with ease going on in the uk affecting markets. but we call you a media mogul, so i want your take on all the big media tech headlines we're trying to grapple and understand what this tiktok deal or non-deal really means what do you think it means >> well, it's no deal, so i don't know that it means much of anything at the moment the whole thing is a crock i mean, it starts obviously simply to say we want to protect the security of americans from anything that could happen to them by using tiktok it has now morphed into this kind of ludicrous kind of game

match between toss iing ownersh here, control there, et cetera, et cetera. its original aims are out the window, and in has just come a whole political mishmash i have no idea how it settles. i also think it's relatively english. i think the whole thing has been stirred up for no great good reas reason >> are there larger implications that concern you, though, about what it means for american businesses doing business not just in china but abroad >> i don't know. i think -- look. i think once you start tossing this grenade about protectionism and turning these things into political questions, vis-a-vis china -- i'm not saying china treats fairly. i'm not saying we should have policies against -- in terms of

competition and all of that and not stealing property and all of those things, however, once you say we won't do this because of you, the reciprocal out of that is going to with just as bad, and that -- once you start it, it's inevitable that that race just keeps going up and up and up and just prevents just natural commerce. >> i want to get your thoughts on a couple of other media transactions, and then i want to get into some of the things you're doing at iac. nelson peltz taking a stake in the company. curious your reaction to it. >> i mean mr. peltz has been peltzing around for a whole -- i don't know, decades sometimes to good results, sometimes to no results. in this case, i think comcast is superbly managed and superbly

hedged i don't know -- i don't know what -- i haven't read or heard what his activism is about, but usually it's just exploit aive. >> i think if there's any concern, it's that the pure play, the charters have gotten rerated or rated at a much higher multiple as a result of being a pure play and whether the market is going to do give come quast that same kind of benefit, and i think that's what he's after. >> yes, but, you know, multiples and drilling down in different areas simply to improve the stock price so he can make "x" dollars or "y" dollars and getting in and getting out and all of that, look, activism is good when there's a real reason for it but if the reason is simply to rejigger things to make it look better so that the multiples will be better, that is not any kind of activism that i think

produces anything -- you know, any kind of -- even decent results. in this case, i don't know i don't know how you -- if you're a media company and you've really got both sides of it, you've got the distribution side and the production side and you have all of these land-based resorts, et cetera, you know, you're hedged various different ways, and since the internet is going to continue to get used more and more and bandwidth continues to grow and it's going to cost and "q," there's no way you can get the into trouble. new headline, quibi is not for sale maybe he's tried to call you to offer it for sale, has he? >> oh, no, no, no. the one thing, whether this was a good idea or not as an idea itself was never really tested

given that it came out at a time when instead of this idea of being about people having relatively little time and this would be programming to fill those spaces, those little short spaces in exactly the moment when everybody has nothing but time because they were all frozen in place, everybody was not tested i will say for jeffrey, i think he conducted this thing at the most aggressive -- i mean nobody could have -- nobody could have ever said that this idea was not out there fully funded, fully sold, et cetera, et cetera, as aggressively as possible so i think his guts for doing it, i think, are supremely admirab admirable, and it probably won't work out, but, you know, for the trying, wow. >> who do you think -- did

somebody buy that business, do you think? >> look. what do i know i don't know what they'd be buying it for. i mean, if you could tell me that one -- i mean, it just -- it is a service that if you -- maybe if you wanted to put a lot of fresh capitol in it and try again once the world went back to normal when the people got, quote, busy again. i just think the chances are relatively slim. >> talking about the world going back to normal, let's talk about iac and expedia and the world going back to normal or not. obviously there are big concerns in the uk about further lockdowns. that sent the market into the red just yesterday what's your timeline now as you think about travel and people going back to -- not just to the office but getting back on planes i know you talked about the

gaming signed also on the idea that vegas would ultimately and macau would ultimately come back. >> yes, i think they will. i was in las vegas for a deep dive kind of tutorial on their business while it isn't what it was, there are people in the hotels almost all the hotels are open there is life there. it is not, of course, what it was, but inevitably it will be just give me an end date that's all i every day cry for and have to unfortunately put a bit off in the distance. i had originally thought, okay, great, we'll be back to work by september. that has not happened. now it's maybe christmas realistically it's probably next your at some point i keep putting that, you know, little goalpost down the road. however, las vegas, you know,

the amazing thing that i saw when i was there is who would have created this thing? it is the infrastructure, the amount of -- i mean conference space. mgm has 460 restaurants. they have hundreds of venues for entertainment from 20,000 to 1,600, to small err venues the idea that vegas was built 70, 75 years ago, that place that's so much pound for pound entertainment, by the werek from all levels, from the very highest level to middle to transient to leisure, it is a place that you -- that, again, i don't think you're going to build it again anywhere in the world. seas certainly not saudi arabia. >> right. >> they're talking about this

new neon city, whatever it's called but las vegas is without question, when it's safe, will come back without probably bigger in the early period because of the explosion of people wanting to get back to life i think the same is true of travel, of course. but you can't get travel back until you get planes and regulations, air regular legislations into a place where people can without worry go where they roy want to go. the thing is flying in a plane is about as safe a place as probably being on a beach with the wind blowing against you the air is refreshed every three or four minutes. it's utterly safe to be in a plane. >> should taxpayers be continuing to support the airlines >> well, yeah, because if you

actually lose the -- the thing about las vegas, that structure is going to stand. you can take the people away it will still be going the lights will be on. the problem with planes, witharilywith airlines, because there's no access to sustain these things, to rebuild is going to be really difficult. yes, look. this is -- while we're living in it and certainly not objective about it because -- and we won't be for decades probably about what is happening. we're living through something that whenever you stop and think about it, it's impossible to think that the world stops, and it has stopped, and the damage is great, and government is the only place that can lift it out. and in every way it must, it

certainly must for all the damage that has been created look it's not troublesome to the people who've got ever lasting jobs or have wealth, but for everybody else, this thing is devastating, and government is the only place that can live it up, sate's nice, put it back, and everybody comes out of it. >> hey, barry, listening to you say airlines are a safe place because they circulate the air there have been cases -- i was reading a couple of days ago -- where people have picked up unin the plane, in coach. they weren't wearing masks in the same way they are now. but i think questions like that raise a lot of concerns an questions not only for people deciding if they're going to go on vacation, but more

importantly for businesses that's the meat and potatoes for any of theme these things. >> yes there is no question if you're going to be on an airplane, that's save. >> we're learning it's daines to have pups open you can't have them at full object palsy. >> you don't have air recirque lating in a restaurant to the degree you have on plane. >> if you're trapped in quarters on a flight. >> in the healthy flights.

>> there's a chance of a safe being dropped from a building. >> but the odds are not the same i'm asking you as a business leader, where do you get your information? >>. >> on the airlines >> no, no. is it because you watch the headlines, you're talking to experts? when you're trying to figure it out, where do you get it >> until there is a vaccine, nothing -- you can't be certain about anything i think it's absolutely true work from home does not work it can work in little bits and pieces, but it does not work right now some of our offices are open, and we've said to people in our companies, come. it's safe here, all the protocols, all that, we won't demand you come if you don't

feel safe. guess what no one comes that's the experience of it. this is day by day i said, for instance with expedia, on november 15th, to me, is the last day you could say to people, okay, plan to come back to work in january people have to make plans and do all that stuff i was really hopeful when you get to that date that you could say, okay, come back, january 1st. i don't believe that's probably true now because again the daily thing you read -- you don't have to go far to learn that everybody is telling you it's still not safe so until you can get that demarcation line -- again, i think it's probably realistically, if i can use that word in this craziness, it's

probably june of next year before you can say, by the way, employers will have to say, you erie coming back to work unless you have an absolute reason, you're coming back to work until you say that, nothing is going to start again by the way, in new york city. >> let me ask. >> safest place there is probably right now, you can't go to school. the idea -- the precursor to all of this is getting schools open, and we're -- united states has done about the worst job of anybody in that regard. >> let me ask you about the implications of the timeline, which is longer than what you had anticipated earlier and a lot of people haveanticipated earlier. what about as an invest?

what does it look like if the world shuts down or slows down between now and next summer effectively? you know durks that mean -- are you trying to keep a lot of -- >> could be. >> how are you thinking about all of that? >> personally and professionally, every nickel you can, keep whatever you can where it's banked. i just think now is the time -- i mean, look we made a significant investment, a billion dollars, in mgm during this period. the crisis allowed us to do what we thought was extremely money good, meaning we would never lose our capital in it, but because of this -- because of this moment for bad reasons we

got the ability to invest in something like that. but generally, i think for any speculation and i think the market is right now a great speculation, i would stay home and, again, we've got the anvil of this election over our heads. each day from now and nosh has gotten more and more concerning and divisive and difficult i actually think if i could wake up in mid-november, maybe it's even late november even though it might be contested, i would rub that magic genie. >> there's a political speculation right now tra trump is good for business

i want to speak to your position and speak to the position that has been argued that a trump administration a better for business. >> i think in probably -- i mean -- speculation i think in the early days of a biden administration, i think there's going to be definitely a downdraft on the expectation of taxes rising and things like that, but i don't think long term actually as far as business is concerned, i don't think long term is going to be any particular dirns i think there will be differences. i think people will pay high taxes, particularly the wealthy. i think this will are going to be things done, really done, to deal with inequality i think other things will happen i do not think they're -- let's call it a big damper on business look i do think there's going to be

regulation, which is going to be damaging for some of the big tech companies, but i don't think beyond that that it will make any real difference again, posit ourselves again several years into a new administration, not the first month or two, et cetera. and, again, i'm being redundant. no >> barry, le me ask you because i know you mentioned big tech and you've been quite outspoken when it comes to google, for example, when it comes to them competing with expedia as you're, of course, one of their larger advertisers there's been lots of headlines about what mahan what are you expecting is going to happen to the big tech companies right now? >> i think regardless, it is coming it's necessary the monopoly of google is

resolute we've spend a lot of money. when the person you're spending it with, i.e. google, competed with you while taking your money and has control of basically the platform and continues to squeeze those down, i think it affects regulation i think the idea of apple charming 30% tribute simply to download an app and provide relatively no service for this 30%, who heard of a distributor -- the only reason they do it is because they can i think it's very unwise of apple. apple is generally a company thinks well of i think simply to stand there is almost as bad a listen city graham and his hypocrisy and standing there and saying it's

fair and proper for us to take 30% of every sale, and it costs consumer because you have to price it into the product. anyway i think wreck lags are going to come in the next probably year >> before we let you go -- >> by the way -- >> -- airbnb, barry, likely to go public this year. what do you think about the prospects for airbnb, especially with this covid world? >> one thing we've found, travel is obviously hobbled we're down to the worst of it, 95%. now at 96%, some improvement, but not much what's up is alternative acontinue dalgss

people are traveling to where they can drive to. they're not going to big resorting. they're going where they're safe the physical is practically gone that's a good sign for airbnb and it's good for expedia. >> barry diller, you never hold your tongue. great to get your perspective. great to see you we all want to do it in person we'll make a plan to do it. >> you know what here's how you do it in person you go back to work. >> yes, yes, yes we're all headed that way. barry, thank you again appreciate it. all right, coming up, hayman capital management kyle bass and note chide na hawk joins us on the fight of tiktok's future as we head to bring, tack a look at the russell snap camp

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welcome back to "squawk box. take a look at the futures the s&p 500 up about 4 points after what was a down day yesterday, big down day. it did come back toward the end of the day, but still -- becky >> andrew, thank you. when we come back, two interviews on the biggest stories wall street is watching this morning first up, patrick mchenry from the house financial services committee as investors get ready to hear from the fed chair and secretary. and the standoff witchh ina

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later this morning treasury secretary steven mnuchin and fed chair jay powell are going to be testifying before the house financial services committee both men will be peppered with questions about the state of the economy and what it means to recover from this pandemic joining us right now is congressman patrick mchenry. congressman, it's good to have you here with us today. >> great to be with you, becky >> i think the big question that wall street's been considering is will there be another stimulus package that comes at least from a policy perspective when dealing with this pandemic. i think the answer is, we will not see one, at least not before the election are they right in their thinking >> yes, absolutely that opportunity was killed back

in july when speaker pelosi said that she was not going to take any deal lower than 2 $1/2 trillion, which is beyond really the capacity of both the house and senate to have a bipartisan vote to approve much less the president sign. >> i believe that both steven mnuchin and jay powell will probably say today in their testimony they think more is needed we've seen better economic numbers, but there's still a lot of pain out there, people who haven't seen the additional unemployment benefits for nine weeks now. what do you think is needed? what do you think is necessary >> well, i think you should have some modest extension of unemployment benefits, yes, but you need substantial support for small businesses so they can make it through what is still an economic shutdown in most of our states what i would like to hear from

secretary mnuchin is a broad outline of our economic recovery prospects, the necessary policy to make that happen, the necessary fiscal support for that, and i'd like to hear from chairman powell the limits of the federal reserve's capacity to support this economy and the role of congress for fiscal stimulus >> if these two gentlemen -- i ask this because it seems to many that both sides are kind of set in stone with what they'd like, and there's a big hole between the two. you mentioned nancy pelosi looking for $2.5 trillion on this the package most republicans lined up is $660 billion, and there's a big gap between the two. if you heard from these two gentlemen today that they think more is necessary,something like helping out states and local municipalities is something you would advocate, would that change your mind on

that perspective >> no. i've talked to them regularly. i no additional support is needed, but we don't have the data from the states on loss of sales tax revenue much less what is going to happen from income tax. we still need more data to understand the level of support for states, but what speaker pelosi offered was mostly about non-covid-related spending let's stick to covid related spending and get a more modest package. what i'm talking about is the spending bill that's the largest or second largest in american history. so i still think there's substantial fiscal support that's necessary >> i mean that's really interesting though you just kuhn of put a ring fence around it that i haven't heard a lot of other politician put there before you think a state or locality has suffered a huge amount of revenue loss because they haven't had the sales because

things have shut down and they haven't gotten the sales tax which for many states in the northeast makes up a big chunk of the income that they're bringing in, that should be something congress should move to shore up? >> what i'm saying is the overall state and health of these states is something we have to be mindful of. we have a federal system, so states have independent taxing authority and strength on their own, but i think there's a modest level of support we can provide given the unprecedent nature of the health pandemic that we're experiencing, but i don't think we should have a blank check, nor should this thing be geared to states that are on the other side of this pandemic and doing quite well. that was a substantial part of the pelosi bill out of the house. >> congressman, just to pivot the conversation for a moment, and i know it's not ultimately your responsibility, it's the senate's, but i did want you to

weigh in on a successor replacement for rbg and whether the senate should take it up an whether you've spoken with the senators in your state and others >> no. it's -- i'm on this side of the capitol, not on that side of the capitol, and so i'm respectful of their capacity to process nominations, and since, you know, you're replacing a three-lettered name, maybe andrew ross sorkin, you should throw your name in the hat, why not. >> i'm not up for this i was just curious whether you think -- whether you think that this nomination -- a nomination should be taken up before the election >> oh. my view is the senate should process nominations from any president. but that's my view sitting in

the house of representatives what i can tell you is leader mitch mcconnell is going to move forward with this nomination, and there will be a vote on the senate floor he announced that in detail yesterday, and mitch mcconnell is good at many, many things executing power, yes, moving conservative agenda, yes, moving nominations to the court, hell, yes. >> congressman mchenry, thank you for your time. we'll talk to you soon. >> thank you for being with me >> okay. >> thank you. when we return, the standoff over tiktok and the future of u.s./china business ties hedge fund manager and noted hawk kyle bass is going to share g chthoughts on the brewinte cold war you don't want to miss this conversation you're watching business "squawk" on cnbc

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standoff with tiktok the confusion started and now it's not at all clue who would eventually control tiktok under a deal or who will get one done. joining us to talk about this broader potential fallout is kyle bass, founder of it are you pretty strident about your views of china? overall, what do you make of what we have witnessed because it started out presumably as a national security issue. is it still a national security issue and was it necessary to be one right at the start, and have we taken steps to lessen the potential damage. >> first i like to think of myself as a china real left, not

a china hawk unfortunately they put themselves in this situation when you look at tiktok and wechat, up to 100 million users in the u.s they're very close to the chinese government they data collection policies are aggressive if you've raid the white papers, cyber security reports. what's fascinating about this is china controls the narrative it's what they do best if goldman sachs is going to open up a wholly owned subsidiary in china, china required goldman sachs to have their data held in china i.e., it can't leave in this case, the data collection, data storage goes through beijing for tiktok there are two issues number one is the fact the chinese government has the data collection policies through tiktok number two, is tiktok's algorithm can influence the thinking and minds of the u.s. youth over time because they control that algorithm and

that's the algorithm they don't want to give up. whether you're talking about china or tiktok or wechat. those things have to be controlled think about this u.s. social media is banned in china, yet china is exploring everything to their benefit. so, again, i go back to this idea of reciprocity. we should allow china to do whatever they allow us to do if that were the case, these social media plat fofrms wouldn't even exist today in the united states. >> so it sounds like a national security threat and one that we're, in your view, it was a good idea to take a position on. is there anything in this deal that allays your fears that, you know -- do you feel it solves the problem or has it turned into a trade deal, hasn't it >> from my perspective, larry

ellison is probably one of the singe most patriotic ceos in america. the fact that oracle will control -- if it works this way. if oracle will control data collection, data storage, and prevent data from going to china and oracle can also control the algorithm that may influence the youth of america, then more power to larry ellison and oracle and walmart as a lesser partner. but if, in fact, china isn't going to go for that, and i wholeheartedly support the trump administration's policy of shut it it down. >> so the way that it's structured right now and the ownership and where the servers would be and all that, does it satisfy your concerns right now, or is it -- does it not? >> so, look. from my perspective, joe, as you know, i'm a hedge fund manager i pull down there with the chinese congress party and

congressmen as far as likability, but i also don't have a technical background deep enough to tell you that i've read every document looking at exactly how the technical specifications of the deal are controlled by the national security council i feel like i'm not -- >> ifkyle, you said that you wod back shutting it down. >> yeah, if china -- in china -- >> would that make it worse overall for just trade with china? we just had barry diller on saying this is protectionism at its worst and we started t et cetera, et cetera. >> you know, barry diller obviously hasn't read through the decades of data that are out there and most recently what's gone on with chinese social media, they are wolf warriors and the ccp apparatus. look, there are four wars we can be fighting with china, number one is the kinetic war with the u.s. has the top kinetic war department in the world, let's

hope it never goes there number two, cyber war, we've been fighting a cyber war with china since the early 2000s and we have one of the top war departments in the world the two other wars we can be fighting with them, the economic war and the information/narrative war, we don't have war departments for, and china has been fighting those against us since it ascended the wto barry diller has his opinions, i'm sure he has investments in china and i'm sure he is some way trying to profit from this look, i don't have investments in tiktok or huawei or zte or wechat, but i try to call it like i see it and what i see here is a grave u.s. security -- national security concern. >> andrew, do you have a question >> kyle, one quick note. i don't believe and i could be wrong about this, that barry diller at least publicly does not have investments in china and we can check on that, but as a separate matter i wanted to get your views, we have talked about social media and technology

i want to talk about the business of finance and specifically the role that hsbc plays vis-a-vis china and the outside world given the revelations that emerged over the weekend when some of these sars reports were disclosed by buzzfeed and other media organizations. i know you have concerns about hsbc would you shut down hsbc in the united states. >> i would let me first say i have no positions in hsbc nor will i let's be objective here, hsbc signed a consent decree with the united states back in 2012 stipulating they paid a $2 billion fine which back then was a paltry five weeks of profits and no one at hsbc was criminally indicted nor was the bank they were laundering the money for a cartel and several terrorist networks and we figured it out and entered into consent decrees with them. what the reports are showing if

you look at the international consortium of investigative journalists they say that after the consent decree hsbc engaged in almost 7,000 transactions in their hong kong branch alone running 1.5 billion through that branch and it's a highly profitable branch, and they were with at least 16 large shell companies that were criminal enterprises. they broke their consent decree with the united states, hsbc hong kong's wong was one of the first banks to back the chinese national security law and position of basically stealing the human rights and the autonomy from the hong kong people hsbc has decided that the better bed fellow, whether it's the u.s. or china, they decided the better bed fellow in the long run is china one thing that people don't know and i will maybe potentially break some news here is in 2012 hsbc's board members commissioned a report to

understand the way hsbc's internal finance network worked and potentially how it might be funding terrorist networks it turns out that that report was turned over to the board in 2014 and in 2015 what the report stated was that hsbc was running the entire terrorist funding network for hezbollah. that network was basically used through brazil and south america and their branch in lebanon to basically raise all the money for the muslim brotherhood and hezbollah. so what did hsbc do? i don't think they reported it to the united states they sold their branch network in brazil in 2015 and then they closed the beirut branch of their bank in 2016 saying it was just unprofitable. hsbc is not a good actor and i would shut them down >> kyle, just to be clear, you said you don't have any position in hsbc and you would never take one. you don't have a short position, either, right? >> that's correct.

i have no position whatsoever in hsbc securities. >> kyle, i think we're about done since you think that the hong kong currency the way that it -- and this was a bill ackman trade long ago the way that it's pegged, you think that -- you're betting at this point there's going to be a decoupling and that is because of all the problems we're seeing, all the unrest in hong kong or -- what is your rationale there? we have to do this quickly. >> yeah, it's both -- it's both a financial rationale and a political rationale, but the financial rationale is simple, they're the most heavily levered banking system in the world at almost 8.5 times gdp as the u.s. entered our financial crisis we were 1 times gdp and you know how bad we screwed it up. they are engaged today in a pandemic depression. you can't have almost a ten times levered banking system and have real gdp drop 9% or 10% and not have a full scale banking

crisis the other thing that's happening on the political side is you're going to see at least 10% of the population if not more of hong kongers, healthy hong kongers are going to leave no one is going to subject their family members to the chinese communist party's overlord status in hong kong. i think you're going to see deposits leave and when deposits leave the only valve i think is going to be the currency >> andrew, do you have a follow-up? >> i just wanted to add that literally as you were talking, kyle, barry diller emailed into the show to say i have zero investments in china and i just want to clarify that, given the comments that you had made earlier about his position. >> i hear you. i don't know barry diller and i guess what i do is i respectfully disagree with him. >> andrew, he's definitely got some investments in things that require planes to take you wherever you're going, though, right, in terms of travel. >> that is true.

that is true >> yeah. i think he definitely has a reason to think that flying is safe anyway, that was pretty interesting. so, kyle, this is -- this has been a long time coming, i mean, the ackman -- i think this was at a delivering alpha conference maybe ten years ago. so people have thought this for a while in terms of -- do you think the time now because of the pandemic and reserves, you think this is inevitable that this is going to happen. that would cause a lot of turmoil in currency markets around the world that would be unbelievable if this pd. >> it might cause turmoil for a week or two, but, look, when oil collapsed in -- at the end of 2014, 2015 what did russia do? the russian ruble they left it devalue and devalued massively against the dollar, almost 60% in one year's time russia was back to growing in almost 2% in real terms they were back to their growth

status in hong kong when you have a currency peg that's rigid and they don't have a real central bank and one question for your viewers to think about is now that hong kong is china, the u.s. can't recognize two central banks. so ie who is the integral bank for china is it the pboc or the hkma i think the u.s. will be thinking about decertifying the hkma as a real central bank. they're pegged these pegs are colonial-era relics that actually end up breaking in times and periods of stress in 36 years of stability doesn't beget another 36 years of stability. it's an archaic peg that i think needs to free float. that is a macro economic valve that actually will help hong kong in the long run. >> while we were talking one other thing hit the wires and that is that -- i don't know which biden adviser said t but

basically saying it's -- vice president biden's adviser, unrealistic to fully decouple from china i guess that's not a stretch to say that do you think there's a difference between the vice president's approach historically to china and president trump? i guess you probably come down on a more hawkish position from president trump? biden has basically been saying he has not been sort of an enabler of china. >> okay. so i will give you two -- >> make it fast, scott 30 seconds. >> so, look, we all know that biden's son did a lot of business in china and did a lot of miss in the ukraine that has to stop and biden has to separate himself from his son. but i'm encouraged by biden adviser jake sullivan and what he said specifically with regards to how the biden administration would interface with china on human rights perspective. he specifically said that the biden administration will not trade human rights for a trade

deal and that was a jab at the trump administration, but if in fact jake sullivan, kurt campbell and his advisers stick to that i think the biden administration will be realistic in their dealings with china. >> kyle, thank you i appreciate it. becky, you want to take us out or -- you've got five seconds. here we are. >> that does it for us today, we will see you guys tomorrow, right now it's time for "squawk on the street. bye-bye. ♪ good tuesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber we are looking for some stability today after the s&p's first four-day loss since february got powell and mnuchin on the hill talking pandemic response, tesla battery day, the uk announces new lockdown restrictions and oil is trying to reclaim 40. our roadmap begins with fed chair powell and treasury secretary mnuchin, what to expect from today's testimony in front of the house financial