tv The Exchange CNBC August 3, 2020 1:00pm-2:01pm EDT
indicati -- depracation. for him i'm doing pki, going strong going even higher on covid-19 related growth >> good stuff. jon ajerion, what do you have? >> tiktok are doing great on stocks kelly evans and "the exchange" begins now >> thank you, scott. here's what's ahead of us. it's microsoft to the rescue the company confirms it's looking to buy tiktok, the wildly popular chinese-owned app. it wants it done within six weeks. will the government regret letting this tech giant get bigger plus, the nasdaq at record highs, this as we head into the middle of the year for stocks. do you stay the course or get more offensive google seeking some safety
and the auto name wall street likes ahead of its results that's all ahead in "rapid fire" today. rahel is here with the stocks. rahel? >> stocks are not far from the hedge in this session. the dow needs to hit 278 -- kelly, don't make fun of my writing -- 94 in order to break a record tech has driven the nasdaq to another high where have we heard that before? take a look at the stocks who underperformed airlines and casinos are relative outperformers but it's another rough day for amc as theaters really struggle to reopen, along with travel stocks like cruise lines, expedia getting another upgrade. analysts there say they think when the travel recovery happens, expedia will benefit. they also like their aggressive
cost-cutting measures. let's finally end on shares of apple jumping again today. closing in on a $2 trillion market cap the key level to watch here would be $467.77 kelly, don't laugh at my handwriting. of course, it aspired to the company's 4 for 1 stock split taking effect at the end of the month. we will be keeping a close eye on that milestone for the world's largest company. you can see shares are up almost 3%, kelly. >> i think it was beautiful. you knocked it out of the park watch out, dom let's turn to the story that has captivated wall street, silicon valley, washington and some millions of users we're talking about tiktok under scrutiny for months now over its security issues. take a look at tiktok's weekend. on friday the cdc reported that microsoft is interested in acquiring tiktok from the company bytedance.
the president said he would impo cut the ban if it was a deal joanna stern of the "wall street journal" with some reaction and impact on the tech world, and dani mes is looking like in particular for microsoft kelly, let-- kayla, let's start with you >> kelly, you mentioned the president's pronouncement on friday that he would move to ban tiktok he told reporters that on board air force i on friday, and over the weekend those discussions continued. we learned from secretary steve mnuchin said both parties were involved, that whatever happened to tiktok existing in its current format was unsustainable. >> we all agree there has to be a change the president can either force a sale or the president can block
the app using iefa, but everyone agrees it can't predict the way it does. >> the foreign investment in the united states overlooks all foreign investments. the minority and majority of any company here in the u.s. microsoft in its statement sunday night said the discussions with bytedance will build on a discussion with siphius. kelly, there is something of a precedent for a move like this you may remember after congress and the treasury department cracked down strengthening these siphius rules back in 2017, they then moved in 2018 to require kwunglung, the owner of the app
grindr, to stop because there was personal identification about the military being stored to grindr and the u.s. government did not feel comfortable with that ownership. we have seen at least some similar story lines before, but we'll see where this one goes. kelly? >> it's fascinating. i'm glad you mentioned that precedent. i had forgotten that was the case with grindr kayla, thank you let's talk about how this could changethe landscape if the deal happens with joanna stern and dan imes joanna, what's at stake here >> what's been at stake is the largest social media platform since instagram, snapchat, facebook we have over 7 million users all fighting over or trying to figure out what's happened to this social media app that every
other company is trying to emulate or trying to buy the question now is what happens next with it if microsoft does proceed, as it seems it will what happens to the app? how does it look different how do the users feel about the takeover does any of it change? those are things we're still asking >> i'm curious, joanna, and we're getting headlines from the president right now about this deal he said it might be easier if microsoft buys the whole of tiktok rather than the 30% that's been discussed. he also says microsoft or another american company would have to buy tiktok by the september 15th deadline or it would be banned. so what do you think -- i'll ask dan about this, obviously, joanna, but it's interesting that microsoft wasn't at the big tech hearing and it kind of gets this free pass for this acquisition at the same time that we're all going back and looking at whether facebook should have been allowed to acquire instagram.
tiktok is the most sought-after platform that exists in the u.s. today. so what about forcing it to pursue an ipo? what if tiktok moves its ownership outside of china, as was something else floated today. are those possible remedies here, or do you think a microsoft or a big tech acquisition is the only feasible option >> i think it's such a double-edged sword i think all the points you bring up are really valid. look at last week, look at the landscape of last week and we had the four biggest tech companies sitting in washington being grilled about these types of things, acquiring giant companies or companies that had a lot of potential to then become the monopolostic companies they might have become because of where they sit. to me is microsoft a safe bet? it's a bigger company. is it a safe bet
does president trump or his advisers at this point like the idea of microsoft because microsoft is here and it is trusted? >> right dan, let me ask you, microsoft doesn't have anything other than a linkedin social business act, but should they get one? from the government's standpoint, should they give it one? >> they're basically caught in regulatory swirl, which is not going to change. this is not something from dell and microsoft. it really fell into their lap. i know christmas came early for microsoft and the dow. it's already gotten a green light from the white house, and i think dell understands that there is no other company out there that could do this, and that's the leverage of microsoft. >> dan, i don't think the u.s.
is interested in tiktok being successful per se, it's more, okay, if it is a tool that people enjoy, you don't want to cause massive disruption, you can give them some option. why not force an ipo, why not force divestiture in some other ways why would this have to go to an existing big tech company? >> i think when it comes down to the national security concerns we've seen with huawei, and this is essentially the u.s. in a tech war, and i think it's as american as apple pie. they have their focus on the cloud and ultimately they do not have another social media platform so there is no an antitrust or regulatory issues they have 13 billion in cash from a consumer perspective, this would give them another play this could be worth 200 billion.
this is really a coup. >> joanna, i'll let you respond to that, but everything dan laid out is why i understand to some extent it makes sense that this be a company owned by an american company that we can trust, but it's a huge win for microsoft. perhaps the process should be more competitive or something, i don't know what do you think? >> it's funny, i spent the last 24 hours speaking to tiktokers, asking them what they were thinking about this ban, what they were going to do. one of the questions i kept asking was what about microsoft, what do you think about microsoft? they didn't have any thoughts about microsoft. it's really not a huge presence in this generation's life. as dan points out, this could be the moment this could be micromicrosoft's n to be remembered in the social media world. >> 100%. quick, final question, dan what's your kind of evaluation of microsoft now absent this deal, and what would your evaluation be if this happens?
>> i think this could add 100, 200 billion to the market. i heard from investors on the weekend, this is a social media piece and that's why i think this is a no-brainer i think there's 75 to 80% chance this happens that could be conservative >> i think there's 1.6 trillion in market caps you're talking 1.7, 1.8, just in my opinioning -- nipping at the heels of apple today coming up, we'll talk about yield stocks or gold all at or near record highs. with gains across asset classes, should apple be betting on them all. eli lilly says it will have new trials
these shockingly low levels. as we mentioned, august has been historically low for stocks, so what's next? we speak to you both george, i'm going to begin with you. how would you explain to a ten-year-old -- that's my level here -- what's going on with bond yields these days >> i think that's a great level to set for buying yields and that's really the way you need to be to explain them. bond yields are very low for a couple reasons obviously the pandemic has put a tremendous amount of pressure on the economy, growth has slowed dramatically, and the central bank is easing policy. all of that has translated into a dramatic decline in yields i would say looking forward, the expectation is none of those -- all three of those factors are still very much in place, and so for the ten-year-old, the yields are low, the yields are likely
to stay low, and you should expect relatively low returns from your fixed income portfolio. that being said, bonds as a class have done very, very well this year and have been kind of the anchor of an investment portfolio, again, something we would consider going into the end of the year. >> the price appreciation certainly has given you some returns. i saw high yield bond spreads absolutely collapsed, meaning you can make money that way. let me turn to you, because the landscape george paints is a slow, kind of difficult economy and something we all experience. then you have the other side of the coin which is the ism report comes out pretty strong. new orders look pretty good, and it's hard to reckoncile that wih what the bond yields are telling us about macro what would your advice be for investors here >> that's right, i think george's statements are all correct, and what you've noted is that bond returns have
borrowed a lot from the future in the context of having very low yields and very low future returns. when you think about ism, just remember that that's relative to previous periods we saw a huge decline and now a stabilization. it's coming back, but it's coming back slowly at very low levels still a chance for volatility, and with regard to land for credit, still more bankruptcies. we saw two more over the weekend. >> i wonder, though, george, if big tech is also buying for the future apple is at 1.9 trillion today we're within a couple percentage points of it being a $2 trillion company. amazon is up there, google, facebook is not quite at the threshold yet, but the digitization, so to speak, of the economy has accelerated, and to some extent, didn't we just borrow that for the future >> i think that's right. you remember when companies struggled to get to that
trillion-dollar market cap, that was a signal that the company was getting too big. we've blown through that in a number of ways the thing to look at there is really p.e., right if you think about the p.e. for these companies, they've grown early. they're the companies in the best position to take advantage of the digital economy going forward, but the reality is that p.e. is an indicator of what an expensive price investors are paying, and the market cap for those companies are increasingly a huge weight for places like the s&p 500. investors need to look at that, because if they buy these large company indexes, they're buying that for a month >> george, let me turn back to you, then. if the fed is successful from keeping the economy at worse outcomes, worse inflation, shouldn't bond yields at some point stabilize, start to move back up, or no
>> we did see a little bit of a downdraft over the last week or so, but they've been pretty rangebound, really, since april. the fed intervened, they really kind of compressed volatility across the entire fixed income landscape. i would argue that the bond market is kind of in a wait and see mode the trajectory of the recovery as we just described, some of the numbers looked good, but the actual trajectory is still relatively gradual coming off a very, very low base. to the extent that company unfolds, then expectations for the fed can start to dial back but the fed told me they're all in, they're not easing from a policy until growth is kind of accelerating and improving, and number two, and this is important, these deflationary trends have started to reverse the expectation is for incredibly low inflation
so i think that is sort of what we need to watch as we go into the end of the year, is a sort of gradual improvement growth and coming off a very, very low disinflation and inflationary numbers would be a good sign that the market could then start to take back some of these expectations for the fed but there's still a long way to go between now and then, and like you said, as your people are channelling their money into relatively what are now defensive plays, these are these mega cap tech companies that are now increasingly just a very significant share of the u.s. economy and a very significant share of the way consumers kind of are behaving, and that's the new world. >> to some extent that tells us the market position can be considered defensive even at all-time highs given those characteristics that you described. gentlemen, appreciate it today, jason brady and george bory for that chat. coming up, the biggest restaurant winner of the year is
a name that will surprise you. it has doubled its stock price, had massive sales this quarter and analysts love it we'll tell you what that is, ahead. plus coronavirus is wreaking havoc on baseball less than two weeks since players took the field. we'll look at the financial stakes if this continues a dive into one name hitting all-time highs without any fanfare. we'rbae ck in two.
usaa is made for what's next we're helping members catch up by spreading any missed usaa insurance payments over the next twelve months so they can keep more cash in your pockets for when it matters most find out more at usaa.com welcome back, everybody, i'm sue herera brooklyn estimates just over half of the population is under 40 with the oldest millennials hitting 39, that generation will soon be taking over key roles in government and business. as covid-19 cases surged, emergency room visits plunged in march and april. that's according to a new study. one of its authors says public messaging about staying home
worked too well, discouraging some people from getting the medical help that they needed. president trump is firing the chair of the tennessee valley authority and also removing another board member, accusing the tva of betraying american workers by outsourcing its i.t. operations. president trump also wants a new ceo who will, quote, put the interest of americans first, end quote. and spain's former monarch is leaving the country he used to rule. juan carlos i has been implemented in a financial scandal and the king says he doesn't want to make things more difficult for his son, spain's current king filipe vi kelly, i'll send it back to you. >> thank you so much the same names tend to get the attention, like alphabet,
apple, facebook, but there are names still flying under the radar. today we're looking at cyrus i, particularer cone, trading at 80 there are a share. they specialize in data center properties in fact, it's the third largest data center provider in the u.s. it operates in three continents, serving 100 million customers. since january 13th, it's up 3% since then get this it's up 90% since its 52-week low set in march and it pays a dividend of 2.4%, which is higher than microsoft, apple, disney and p and g it's been just over a week since the baseball season got underway, and covid-19 has been wreaking havoc on players and league logistics eric chemsky is with me. eric >> that's right, it means
quarantines and more postponed games. the looming threat that the entire season may be canceled is putting billions of dollars at risk the mlb is putting major safety restrictions in progress the marlins have had people test positive, forcing them to postpone six games the st. louis cardinals had to postpone their game in milwaukee because of positive results with more results still to come don't think it's spread because of going to crowded places, but rather players and coaches are doing seemingly benign things like eating together inside. the league does not think the virus is spreading between teams during games the league says the players need to do better, but many experts wonder if having 30 teams traveling around the country was just a bad idea to begin with.
a full season without a pandemic, that's normally worth $10 billion in revenue the mlb is trying to salvage whatever they can in this shortened season with no fans. kelly? >> real quickly, they're going to do whatever they can to keep the season going for any of these sports, if they stop, none of the players get paid, right? >> no one gets paid and you lose a lot of money because there was so many costs just to try to put the thing on it will be a big financial loss if they can't finish it. >> speaking of financial trouble, am i wrong that i see the rock is buying the sfl what's going on there? >> they were going to go into a bankrupt proceeding, the rock and xfl. they're paying $15 million for the assets they'll assume some liabilities. they'll pay up to $9 million to settle old defaults. that's the spat that made ipo in the upcoming weeks we'll see with these two big brands, what can they turn the xfl into will it be back on tv or will
they be dormant for a few years? they have a lot of money, they can buy a lot of things. >> we'll be watching for that ipo and maybe a hopeful sign for the post-covid landscape eric chemi, thank you so much. ahead is "rapid fire." stay with us it's easy to get lost in the economic uncertainty. the volatility. the ambiguity. this moment calls for more. and northern trust delivers more. with specialized expertise. proven strategies rooted in data and analytics... and insights borne from over 130 years of successfully navigating economic turbulence. giving you new clarity. inspiring confidence. and helping you uncover new paths forward. northern trust. wealth management. i opened a sofi money account
michael. the first ever earnings report tomorrow it's got some positive calls on the street, deutsche bank says it is to provide importance to its investors. you're saying there is no pressure for nikola. shares are off 10% and still off of its price of $93, it's at $33 today, but still a lot of enthusiasm for a company that's not booking any revenue yet. >> and it's telling, kelly, exactly what the premises of these earnings a willingness to pay a higher price has already been demonstrated already, nikola has clearly seen the test in the playbook which persuades everybody there is an enormous market to address, and they have a constant barrage
about building factories that keep people excited about it, so it's a $12 billion valuation it almost seems like this market is throwing around $12 billion valuations on less than they have to offer at this point. >> exactly, and also accide, ro this comes at the same day -- lordtown motors are going to go public under a ticker symbol ride, but i wonder if these moves are simply op por tunistic i can totally see why they're doing it >> this is a corner of the market that seems speculative. you've got lordstown, raven and now nikola
you're writing a blank check to companies that don't exist no problem, what could go wrong, right? i think there are a lot of upside possibilities obviously if this all goes well, this is a brand new industry, but the way this is happening from a fundraising point of view, again, through spaks, with companies so early in the process, i think there could be some pain with this. >> it's so volatile. i have to say it makes it entertaining to cover, but if you're trading in this stuff, beware let's move on to something more substantial it's no secret that fast food has done well, but one of the names is wing stop not everybody has seen they're one of the best beneficiaries in the way we're eating and dining. >> that's right, kelly, really outperforming a lot of its peers in the space, it's up over 85% year to day. a very similar model to you like
a domino 's or papa john's. it's mostly delivery and carryout as dining rooms are closed around the country. they said even though dining rooms have reopened, they haven't seen interest fall off they've seen interest sales rise by 34% this is while we're seeing drops in the same amount by some of its competitors. a lot of people leaning into this, also opening up new stores we're not seeing a lot of that, and digital sales up 50% a lot of consumers flocking to this name. >> there's not one close to me, but it sounds pretty good right now. >> i was looking around, too the closest one is 45 minutes. what's also interesting, as kate just mentioned, the competition for this app applebee's is launching something, chili's is launching a wing only brand. i was looking at the menu, and kelly, when we are all back in person, i want to do a taste test of the wingstop atomic sauce, the atomic sauce, and see how we can take it
>> i have more tolerance, mike, for the hot buffalo sauce than i recognized, but i'm not going down that road it's amazing to me the differentiation in the restaurant space this year we're talking about a number of closures north of anything we've ever witnessed in our lives in a single year, but if you have a model like wingstop, like some others that kate mentioned, then you're getting all of that market share >> yeah. it's sort of an uncomplicated menu, i think, operationally for the restaurants, and clearly having that infrastructure already in place to be mostly delivery i was most amazed when i looked at the valuation of the stock. it's essentially got a chipotle type evaluation if you believe the earnings a hundred times massive store growth on top of just what they're doing here during this period people have caught on, at least in the market, to this concept >> this is not an under the radar pick, to be sure 100 times is astonishing also astonishing, spacex
reportedly safely returned those two nasa astronauts to complete a test that marked a major milestone for them both. for spacex, it's the first time they put humans into orbit and nasa's mission in over a decade. michael, what michael sheetz is here with us. what a great moment, right >> what a great moment is it right. while it was a historic moment for both nasa and spacex, it was only a test. they launched two astronauts on this one, and they'll be launching four on six missions in the future. they spent two months on the space station, did a number of tests on the spacecraft to make sure everything worked out, and now spacex and nasa are going to spend a couple weeks basically
taking the spacecraft and going through all the data to make sure it all looks good for nasa, especially, they expect to be paying now about $50 million a seat in the future when they send astronauts on spacex this is far from the ballpark of $90 million a seat since the space program ended in 2011. nasa chief brian stein really put the emphasis on this saying this is the business model for the future >> you got like a clark gable thing going on, sheetz >> thanks, kelly >> for people who are listening, you look very dapper with the 'stac 'stache and the jacket and the whole thing. we were just talking about electric cars. this is a close rival for some of the retail interests.
virtual galactic, which i think reports tonight, is still below levels it was with the fed >> it is is that a measure of how wild things got back then, or does it mean people have actually had more reasonable expectations about it it's very tough to say i think there is a business model within sight for this company, it's just a matter of exactly how much the staof a scu can expect any time soon is it a tourism business, is there a lot more to it in the immediate term very difficult to say, but it is, again, just a testament to how there is a willingness to believe in kind of these big picture conceptual ideas in this market it's not just about demonstrated cash flows >> it's certainly nice to have that optimistic theme right now, you just don't want everyone to get burned michael sheetz, last word to you since virgin galactic does report tonight what should investors be focused on >> they should definitely be looking beyond the fact that the annuals expect them to report a
loss in the adjusted area of about $50 million or so. you can expect an update on the progress of getting faa certification to fly passengers as well as any new numbers on how many deposits have been made towards future space flights those numbers giving a little bit of an idea of how much demand there is out there. >> great we appreciate it, sir. virgin galactic shares up about 5% in anticipation a much bigger move today google announced a nearly half million investment in adt today, and as part of the deal they're going to take a 6.6% stake in the home security giant. they will have a stake in the home devices as early as this year 6 million-plus customers will have fewer false alarms and better detection robert, adt is only up about 6% right now. at one point it had doubled. >> it's interesting, it was a
$450 million investment that actually increased the market cap of adt by $3 billion this is just an incredible upward move for google what i don't really understand, though, is what google gets out of this. i love nest. i think their cameras are fantastic. you can easily install it yourself the adt systems are hugely expensive. they're like 37 to $52 a month once you subscribe i could see why nest was putting adt out of business, but i don't understand why google would then invest in adt. yes, maybe it's that customer list, maybe it's that ability down the road to install more elaborate systems in these homes and charge more, but right now if you've got nest, you don't need adt >> i, kate, wonder why google didn't just buy adt. you look at amazon and everything it's done with ring and how popular and successful that's been. i also wonder if the property
brothers make out on this deal because they're the ad t spokesmen these days >> they could get somebody like me that doesn't want to install this kind of stuff i get a mental block on what i would personally have to do. >> just plug it in >> i would have to have somebody do that for me home security is so big right now. we're all home, working from home i think there is a bigger focus on this because we're spending so much time in the home i don't know maybe that's the reason. >> we're adt people, so i'll let you know what changes we see as a result thank you all, we'll leave it there today, robert frank, kate rogers and michael santoli there are new trials of an anti-covid drug. eli lilly shares are up 2% we're back in a couple
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welcome back ie lay eli lilly with word they're going to start antibody trials meg tirrell is here. meg? >> hi, kelly this is an important trial given the severity of the disease and the more deaths that we see in the nursing home in older populations. lilly is running this trial in partnership with the national institute of allergy and infectious diseases to see if they can use this antibody drug as a preventive in settings that have had a case of covid-19, actually going in to try to protect residents and staff at these facilities what this drug is is an antibody that was actually derived from
one of the first u.s. survivors of covid-19, and they're testing it both as a prevention and a potential treatment. of course, they're not the only company in this race regeneron also started late stage clinical trials last month. so joining us now to tell us more about this trial and this approach in general the lilly's chief sign particular officer dr. daniel skovronsky. thank you for being with us today, and i want to ask you about this specific trial, but tell us first about the trials you've run already on this drug and anything you see so far that tells you about its safety and any efficacy signs >> thanks. it's a pleasure to be here we just started in patients just over two months ago, at the end of may, and we started in hospital situations just looking at the safety of the drug, and he with found it was well tolerated, no serious events or anything like that then we moved to diagnosed
patients people who just got the diagnosis of covid-19 and are early in the disease course, so we're seeing if we can slow down the sickness in their body or keep them from getting too sick. we don't have data from this trial yet, we've just been watching the safety, which looks good we hope to get effects from that first ambulantory trial in the next month or two. >> when committee expect to get results from the hospitalized patients >> it was just a small number of patients who were pretty sick but late in the disease course, so they came out better than people who took the placebo. >> in this country we've seen so much of it from nursing homes, but it's a challenging study to
run, so we understand you're using a mobile research fleet to get to the nursing homes that have outbreaks tell us how you're designing this >> yeah, this is an incredible effort for many, many people i nursing homes from nih and our own team we wanted to see if we could help people in nursing homes because the disease has been so devastating. it's just heartbreaking to think about the isolation, the fear, the illness and death. 40% of deaths have been in nursing homes. as you know, nursing homes aren't set up to do clinical research to make it even more challenging, we said we want to go in nursing homes within days after they have their first case of covid-19. so that's a really tough challenge, and the way that we're addressing that challenge is we've created these mobile research labs. they're essentially rvs that we stripped out the inside and turned them into research facilities we've driven them and positioned them with staff around the
country waiting for outbreaks at nursing homes. when the outbreak starts, we're nearby, we drive to the site, we set up research there working with the staff at the facility and randomized residents as well as workers at the nursing home in this trial. that's what we just started today and it's a big endeavor. we hope to treat over 2400 patients in the next couple of months and see if we can prevent the spread of covid-19 in nursing homes and the patients who get this drug. >> dan, it's kelly here back in the studio if this drug works as you hope in nursing homes, what kind of difference would that make to patients, aside from the spread of covid what would it do to directly help those who contract the disease, and are there any applications for those who might be younger, a little bit healthier than the population you're testing >> we're doing both trials this trial was really focused on prophylaxis of preventing the
spread, which i think the study could absolutely be used as the nursing homes start to administer drugs to other people and staff in that nursing home but treatment is really important also, as you point out, so we intend to start registration trials for people who have just been diagnosed with covid-19 as well as people in hospitals but one of the things to keep in mind here is that manufacturing capacities is limited. so we think we can make 100,000 or more doses by the end of this year and many more next year, but that's still not enough for everyone who might need this drug to get it so we have to think about where we can benefit patients the m t most it's a vicious circle in one of those populations. >> you just mentioned your goal for 100,000 patients by the end of the year if this works. is that a dose for treatment or
prevention i understand the dose for treatment has to be much higher. >> we don't know the doses yet you might be right we're testing a variety of doses for treatment to see how low can we go? because the lower the dose can be, the more we can mix. so 100,000 is sort of a worst case scenario. we sort of locked into a dose. it's so large. we picked a dose and we're testing it we'll see how long it gets protection for it's a single dose we'll see. >> i know a lot of people looking forward to hearing these results so we'll hope you come back and keep us updated >> so are we thank you. >> i just hope manufacturing capacity isn't a huge constra t constraint you hope that's not one. thank you very much for bringing that us. still ahead, one of the
largest ppp lenders is a bank you've probably never heard of we'll talk to the ceo of cross river bank they have one branch we'll talk about the help they are giving small businesses, next you can watch or listen to us on the go we'll be back right after this tn amazon fulfillment center, it's like walking into the chocolate factory and you won a golden ticket. all of these are face masks. this looks like a bottle of vodka. but when we first got these, we were like whoa! [laughing] my three-year-old, when we get a box delivered, screams "mommy's work!" mommy's work. with this pandemic, safety is even more important to make sure we go home safe every single day.
permanent ones. welcome. con congratulations. we'll talk more about how you did this in a moment do you expect we'll see an extension of the ppp program >> thank you for having me on show great to meet you. i sure hope so i believe this is taking a little bit of a better shape than before the weekend. >> in terms of the talks and progress how did you guys wind up doing as many ppp loans with just one bank branch as you did >> it's not about the branch it's how you access the customers that actually need it to most. we did partner with a number of channels some of them that you probably familiar with such as intuit
obviously blue vine and a few others we want to have customers that will not have access to the ppp loans. we sprung into action and roll up our sleeves we put everything we knew thus far. this is the result >> you've gotten a lot of press coverage the new york times wrote you up. in normal times you do partner with companies like affirm and other platforms, upgrade, upstart. you're used to making these low dollar, high volume loans. when people say the banks will
make money from these loans and there's all these problems with how the process was gone about in first place, what would you tell them? >> ill tell them this is really a demonstration that the bank partnership model works. we've been doing this for a while. it takes a bit of time to get adapted by the common banks such as the community banks around the corner deploying a lot of marketing dollars in order to enable the people to have access to credit and access to the small business loans is really the key to unleashing the mite of this economy. >> 100%. >> this is an integral part of
the future of banking. >> are you getting involved in fed main street or sitting on the sidelines? >> we've been exploring it it's a different animal. the loan amounts are bigger which are a bit outside of our sweet spot we want to help the companies that have do have the wherewithal to borrow significant amount of money so it can keep like 100 to 300 employees. >> just one branch in teaneck, new jersey an incredible story. quick programming note, former ceo of starbucks will be on squawk box tomorrow. that will start around 8:00 a.m. eastern time don't miss it.