tv Squawk Box CNBC September 9, 2020 6:00am-9:00am EDT
led by technology. you see things have turned around for the moment. you are looking at dow futures indicated up 230 points. nasdaq indicated up 215 points that's a big deal. it was a big downward decline. it was a reversal of what we've seen as things really heated up. the s&p 500 is indicated up about 36 points. if you were watching this, check out some of these numbers. something brian sullivan was just talking about the nasdaq composite has gone from record high to correction 0 territory in just three trading sessions after one and a quarter decline on friday and 5% decline on thursday this is just speed up and kind
of mind blowing. check out these numbers, the six biggest tech stocks losing more than $1 trillion in value in three days apple, microsoft, amazon, microsoft, tesla and facebook. this is kind of unbelievable >> on the way up, we kind of get -- i won't say we get used to it. >> complacent. >> we don't quite notice it as much after the split, was apple up 40% or something remember when we were arguing about tesla at $500 a share? look where it went eastbound the s&p was up almost 60% since march. you get these crazy moves to the upside we should have been able to
watch this after all these years and how quickly the corrections can come to get that move and have a correction in three days maybe we need to even revise the terms for how we talk about it given what the nasdaq has done, that perspective -- >> it is nothing >> it is not that shocking >> if you are a long-term investor, this is no big deal. if you were looking at this. those six stocks losing a trillion in value, they are still up several trillions you are still sitting on winners. if you are a trader and there are so many traders who have come into this, then you could be sitting on pretty substantial losses if you bought into tesla when it
issued additional shares last week, that falls on gains it built on several trading sessions it is down 30% >> this bhoel thing has been so head scratching for the past two or three months. anybody who has come on the show and talked value has made that point. you talked, becky to cooperman a week ago now he said it when the stock splits, it doesn't just go up because people are making money in many heaven or how they think this is supposed to be happening. i don't know maybe i'm being cynical. i feel like we watched this movie. the pandemic play.
okay now we found some. digital is going crazy everybody is staying at home they allow for the new normal. that's wherewith he can go that gets to a point where 0 okay, that makes some sense. then it triples from there it compares to where it goes based on momentum. robin hood and all this stuff. you see where it gets. it is so far removed, this is what can happen. people buying tesla or apple or some of these other really stretched faang stocks that are piling in, maybe they do have other jobs and maybe these are the famous day traders that get in at the end of the moves and stuff. i love apple but at $2 trillion, are you ready --
>> the the soft piece tof this pushed this up and then professionals were scratching their head and jumping on the train a little bit i'm going to talk treasury yields we'll have a big interview later. talking about a piece. i don't know if you had a chance to read through it fed is a big part of our lives there onthis slope it might be good for wall street but not so
from dogs that are basically horses >> telling the audience about this big show today. we have a big line up of news makers we'd talk to reed hastings from netflix. investor stanley drukemmiller and then from children's hospital, and a huge lineup. so much to talk about including this astrazeneca news. >> did anyone else google transfer myalitis. it is troubling.
this is the one patient. yes. it is spinal it exists. there is a reason we know all about it it exists. it can come from ms. this is a vaccine you are talking about. we'll talk to dr. scott gottlieb this is one of the adno vaccine. the adno vector does give its own immune response in addition to the added protein it should be great to talk to gottlieb about this. we'll point out he's on pfizer's board, so keep that in mine.
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. welcome back to "squawk box. green now. the nasdaq may be giving us a little hope in terms of the overall averages yesterday, it wasn't that bad. it got nasty when it was all said and done. would like to see something like a six handle but we did. pr pretty nice move but has been hit hard we try to keep it all in perspective. we'll take it. becky. >> up 206. it was down 465 yesterday. these are some big swings. you are right.
it was more gradual. this is more shocking when you watch that pull back in the span of three days. >> the month of august was a good one for the nasdaq and the rest of the markets. telling you about other top stories. astrazeneca has paused global trials after a study participant came down with an unexplained illness. reviewing safety data. joining us now to talk more about this is dr. scott gottlieb form fda commissioner and serves on the board of illumina and pfizer it is good to see you this morning. >> thanks. >> when you consider this that this was just one person with an adverse, unexplained illness maybe it doesn't seem like that big of a deal but it is shutting
the trials down. what are we looking at >> this is not a large trial it is a 10,000-case trial. one case is goes to cause them to go pause and go through the data carefully they'll probably ask for data from other trials as well to see if there could have been a case something like this or similar to it. this is transverse myelitis. it is associated with adults and children that could make them concerned there is a causal relationship what joe was getting at is
whether or not this condition is related to the vaccine con straukt. this is an intenuated chimp cold virus. so is it related to that segment or the covid epitope or the latter. the spike protein being the part of the virus used to infect ourselves and delivering that protein, we stimulate the production of the antibodies. is it related to the addnal viral vector or the spike
protein or something else? >> joe >> okay. you answered almost all of my questions there, scott just a drill down a little more on that. adno vectors have been used a lot. ever seen transverse myelitis before is this the same or a new chimp adno vector? >> it is new and has been tweaked dlirchly they have been used in other vaccines those are vaccines delivered on a wide-scale basis you have seen cases of transverse myelitis associated with other vaccines.
it is not clear whether that is related or a side affect or something else there are reports of this in an extremely rare circumstance. we have seen this before you have a reason why it could be related to the is vector itself or the spike protein. assuming the fact that it is the case i trust the reporting from the new york times >> dr. gottlieb -- >> i'm sorry, becky. >> they said me next that's why i asked >> we are not getting great queues on how to do this sorry, becky 0 scott. the spike protein doesn't seem like what makes you sick
the spike protein, they pick that as something to generate immunity on the surface but it doesn't seem like it is what gives you covid the disease. that would be very worry some if it was the spike proten itself we'd have to go back to the drawing board with all of these? >> not necessarily the spike protein does stimulate an immune response we have seen rare post viral inflammatory auto immune type phenomenon you could potentially see them with covid and with the vaccine. they might occur in low enough incidents that the vaccine still makes sense. we see this with the flu
vaccine. people get a response to the flu vaccine but very rarely. it is possible that epitope is the same that is causing these rare conditions we are seeing. that is something you'll figure out with these trials. that's why it is important to do these trials the risk benefit profile still wouldn't line up you'd want to understand that fully. that might affect who you vaccinate as well. you might reserve it for people who are at high risk we really don't know the answer to these questions and why it is important to do these large 30,000 patient trials. >> we talked about what the chinese were doing to move ahead quickly which was the dirty old way of doing vax eenz.
i felt good that we were trying to do something more sophisticated. does this raise questions about this more? >> we do sanofi, and glachl co-smith kline entered trials with the hold style vaccine it is a little behind the moderna and pfizer product and the astrazeneca trial. novavax also has a trial the viral vector vaccines are further ahead. we'll see if this is further from the epitope
if it is the viral vector. it could be it is one case not related at all you haveto take it seriously we have seen this associated with covid and other vaccines. a 10,000 patient trial, to see one case, you have to take that seriously. they'll get some clues based on when the condition developed and the history of this patient and whether or not there were risk factors and anything that could be suggestive of this side effect right now, you have a lot of data on people who have been vaccinated >> put a time line on this when a pause has been put in place like the ones now being
put in place today, is this 24 hours, 48 hours, a week, two weeks out? how much communication is being taken place between astrazeneca regulators and all the other drug companies working on vaccines that may be models on similar profiles we just talked about to the extent they are sitting around saying, are we going to have to pause >> right, well i think the other vaccine trials what they'll do, pfizer is one of them. i'm on the board i have not talked to the company. there has been reports moderna has been contacted by regulators there has been a statement put out. i wouldn't expect other trials to be paused i wouldn't be surprised if they ask the safety regulating board
to go back and look for indication that this side effect is appearing in other trials and that this could be suggestive to this side effect with the astrazeneca trial, they'll go back and look more carefully and investigate this case more carefully before they continue that trial to continue to enroll. you are looking at days and weeks. now that you've paused it, you'll want to investigate this more thoroughly. i would expect that trial to get back sorted. they'll be able to tolerate the potential risk
it will depend where they are with this particular side effect >> some people think this is some form of good news that it will create additional credibility for the industry and how they are approaching these vaccines given all the pressure. it used to be any time we got a little shred of good news, when it came vaccines, the market would skyrocket. we had bad news today, i would have thought we are coming off a situation yesterday where the markets were under pressure how do you see that? in terms of good news, bad news.
>>. >> whether or not it is a tolerable risk it could be that this is a rare side effect. we have seen it associated with covid in rare circumstances to your point of questioning whether or not the system works. the system works we have never been in doubt whether this works you have regulators and monitoring boards when you find
recruited back to nbc universal. in a memo, it was said they wanted to simply the way content is created a new book out entitled "no rules rules. i asked him about the title and how is that really supposed to work >> we are fundamentally dedicated to employee freedom because that has made us more flexible because we've had to change so much from dvd by mail to leading the streaming
the book is about how do you give freedom and not have chaos. >> part of that keeper test, your coauthor said this really amounts almost to like the hunger games to say, the keeper test you think, would i keep this employee, if you wouldn't, you are not supposed to keep them. thats a pretty high bar? >> it is we model ourself on professional sports if you you are going to win the championship, you got to have incredible talent. you focus on who of your employees would you keep going to another company those are the ones you would hold on to >> i don't know if you read the article dowd put out she called the culture of ar owe
against and fear and only now are you not too big to hate. what did you think about that? >> she's talking about the hollywood contenders and us as an upstart it is natural for the new guys to be threatening. >> you've got from being a small startup to a big giant yourself and global at that do you think the culture you had in the beginning is the name or does it have to change >> our culture is much better than it was 20 years ago we've continued to get more honest, thoughtful creative we are focused on inclusion and all kinds of dimensions.
>> i should mention reed is in his son's bedroom doing that interview. i should also mention that netflix mentioned it would move millions of cash to black-owned banks. i asked hastings about what he thinks the role should be on all of this talking about equality and injustice. >> i think there is a broad opportunity to be thoughtful in the society you operate. costco also made a deposit in black banks as we did and many others are doing that. these are things every
corporation can do to put 1% or 2% of assets in black banks which will make a difference to close the wealth gap it is the wealth gap between black families and white families that the power gap comes from i commend costco for doing that. >> the larger picture with silicon families and other families like your own have opened your books of what diversity looks like intheir companies. what do you make of quotas or goals? >> our goal is to be more diverse in the areas we operate. looking at top executives now are half women, half men, 25% leaders of color we've made real progress to tell
stories that reflect our audiences. >> some say we should set a goal nbc university says you should set a goal are you a fan of goal? does netflix have a goal >> our goal is do better every year we don't have a goal around membership or other kind of things our goal is to get better on a continue uous basis. >> we talked about a lot of things we'll share more later in the show ied to ask about the megadeal with meghan marklend prince harry and how it came about? >> going to be epic
entertainment. so excited about that deal they are smart they were shopping it around all of the major companies we put together the best complete package we'll do a wide range of entertainment with them. i can't tell you more about it the most exciting new contact. >> will meghan markle be acting in think of these. their foe cushion is on producing and production capacity that's the key thing they've developed a great eye for story. we'll be working with them on that basis >> in the next hour, we'll show you more on that interview with netflix ceo reed hastings and what he says it really means it
means to work from home. we talk about his time as a board maybe of facebook. his take on what's happening on disney plus and his words on hbo max and we get into china and tiktok as well so a lot coming up >> andrew, i keep going around in my head about the keeper rule tell me about that i'm nervous trying to figure out if any of us pass that rule. >> the keeper rule is literally, do you want to keep the employee or not if you wouldn't kill yourself to keep them, you should get rid of them that's pretty much the rule. >> so the important decision is who gets to be the decider, right? >> yes the decider matters a lot. being the boss matters
>> my favorite thing -- he's got a lot of confidence. you get really big and how is the culture change he said, it's unbelievable but the bigger we get, the better our culture gets. it's unreal. the bigger we get, we keep getting better with culture. the same with "squawk box. it is better and better. >> and we are all keepers. >> yeah. we are all keepers didn't you notice that he goes, god, sometimes i surprise myself how good we are doing this >> you know, you can look at the stock price and laugh every
morning, right >> exactly >> he has every reason to laugh. he can look at the stock price ever day of his company. >> i have thought there are times, you know how you go back and forth between cable and netflix and it is a pain i've found, i have just left it on netflix >> me too. i finally figured out how to flip back and forth. when we come back -- >> i always go back to cable there is a big nba playoff season going on. >> that's right. when we come back, the six biggest tech stocks have lost more than a trillion in value in three days we'll talk about investors should do now. we'll be right back. waistband
go to levels that are sort of unwarranted given current fundamentals a sharp pull back is not to be unexpected and may not be the end of things. >> i think that's probably right. if you look at 50-day moving average, whether you are looking at triple qs or individual stocks, they are right there at the technical support. those days would be interesting. you are right. there is a weird thought process going on driving the share prices look no further than apple and tesla. stock splits don't drive the value. everybody piles into those names
and it drives the prices tesla was down more than 80% and was still above the average. think about that in terms of the magnitude. you can pull back the lens a little bit in terms of growth to value. the s&p up over 35% year over year within tech, a big component of growth, you've seen it contract a little bit we were at 85 to 90% stocks. that's down to 50% now you are losing a little momentum there. but still not oversold slk still 15%. room to the down side but the next couple of days will be interesting in terms of the technical support the market sees >> a good way of putting it. tesla was down 26% but 80% above
the average. that sums up the move up and down jeff, it sounds like you think it is not over yet i want to get to kevin now when we talk fundamentals -- it is tough that's why technicians are necessary to factor in what the technicals say fundamentals might not come through for, say, amazon for years. it looked like it was way over its skis but then the fundamentals catch up. sometimes you need to go with the flow what do you think? are we ahead on all of these >> definitely think we got ahead of our skis. the market went up too quickly
you had a bit of a pull back here the technology highs was up over 80%. technology up over 80% is to be expected in a short period of time we believe you should stick with technology because these stick with 28% of the s&p 500. they are growing earnings and think they'll continue to grow it is not time to get off or dump but is a time to trim back and take some profits. >> since you do cover fixed income so much, kevin, i might just drop the title. what should investors do to try
to insure late t to insulate? >> we've created a barbell and put corporate bonds in front of the curve and long treasuries on the back end of the curve. that is to be a shock absorber in the for the folio when we do get these pull backs in the market and these risk off moments. overall, fixed income would be exciting when you reveal these for longer that is just for equity markets. they need to reset for a moment. >> jeff, someone wants to know about banks and bank stocks and
big oil names. do you have a feeling for those and how they are setting up? >> banks are at a really interesting technical juncture as well traded at these lower highs and higher lows. the question has been especially given the outperformance which direction it breaks. my guess is that it breaks to the down side. there is a catch up trade to be had. i don't think the time is now. the yield curve has steepened from about august 4 to now given what the fed has said about the average inflation targeting. the fed has said what they want to do but haven't said how they'll do it. my guess the long end is that the yield curve will remain under pressure not to mention the political
risk associated with the potentially changing regime. banks are particularly vulnerable to that i would say that outperforming now but longer term, there is a catch-up trade to be had patience is necessary for had. >> thank you we appreciate it thanks to it over to you, becky >> thank, joe. when we come back crypto deal. we'll be back after a quick break.
welcome back to "squawk box" we got a deal this morning digital currency group which backs 160 companies in the crypto space announcing a new deal in transaction this morning. good morning to you. you are making a big acquisition, at least a big acquisition in your space and for your company, barry. >> yes so dcg just acquired luno one of the bitcoin exchanges focused on the emerging an froe ining fron. >> what is luno? a lot of our audience know about coin base, for example in the united states. is it fair for me to compare
luno to being the coin base of the emerging markets >> yeah. absolutely look, the opportunity to help educate the world and build on-ramps, crypto space enabled people to buy bitcoin and really create a better financial system is a mission that luno has been on since it was founded seven years ago. we were a seed investor in coin base we watched this company grow from five people to 400 people with this acquisition we get to accelerate the growth of it and bring it to every corner of the globe. >> barry, you know a lot of people have viewed this pandemic as an accelerant to the world of crypto what has it done to the business of luno during, let's say, the six months >> most of the companies in the
bitcoin space are seeing some fantastic growth this year as you may know bitcoin is probably one of the best if not the best performing assets luno is seeing record month over month growth in transactional volume, in revenue and customers and we're looking forward to accelerating that super quickly with the dcg balance sheet >> barry, the flip side of this is, you know, we all talk about how bitcoin and some of these other crypto currencies are supposed to be operating, if you will, quite independently. at least that's the idea from the markets. yet when the markets have gone down and we've seen the down draft recent ly there's a down draft on bitcoin too. >> sure. bitcoin trading is not for feint of heart the downs are amplified. the ups are amplified. so far this year bitcoin has played its role as a
diversifier, as an asset its performed quite well this year it's up 40% this year. >> barry, what's the fair market valve bitcoin? this is maybe the philosophical question here. what do you honestly think it is and how would you even decide how you would value it >> we look at bitcoin as the next generation's version of gold gold is $8, $9 trillion asset class. over time bitcoin will capture a larger and larger portion of that asset bitcoin is a couple hundred billion dollars in value when you have investors saying hey look it's okay to put 50, 100 basis points in this asset class it doesn't take a lot of money to move a large amount of the gold market into the bitcoin market >> what do you make of dave
portnoy and his comments about bitcoin? >> he's an entertaining guy and, you know, look i think it's fantastic he's bringing his followers into the asset class whether buyers or sellers, liquidity is good. most people once you fall in love with bitcoin you tend to stake with bitcoin >> do you worry, those about how educated most folks are going to be about this class or is the whole idea you just want more people to know about it >> luno is focused on education. we're helping people >> thanks so much. we got to run. we appreciate it very, very much we got two big hours ahead we got two big hours ahead includten compdrucs for $50ice,n instead of paying thousands.
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and the peace of mind of knowing that important things like your prescriptions, and ballots, are on their way. every day, all across america, we'll keep delivering for you. wall street looking to bounce back from its tech selloff that pushed the nasdaq composite into correction territory in three days. what investors need to watch is straight ahead stay-at-home success netflix seen record subscriber growth since the beginning of the pandemic we'll hear from reed hastings on whether the company can keep up that momentum. three special guests on the
nation's education system and the push to break generational poverty across the country we'll hear from stanley druckenmiller who may have an interesting take on the latest market moves the second hour of "squawk box" begins right now. good morning and welcome back to "squawk box" right here on cnbc. i'm andrew ross sorkin along with becky quick and joe kernen. take a look at u.s. equity futures this hour. we're in the green things looking up after some tough, tough days. the dow about 137 points higher. the nasdaq up about 170 points higher 175 point higher the s&p 500 looking to open about 25 points higher becky? >> the technology looks up pushing the broader markets as
investors rotated out of companies that led a historic come back from the coronavirus recession. the nasdaq losing more than 10% just in the last three sessions making at any time fastest correction in history. however, you got to put that in context. the index is still up 63% from its 52 week low that it hit back in march mike santoli joins us with more. this is coming fast and furious. >> this market has been operating in a hurry all year. it's created these very rapid moves in both direction. it's not waited for these things to develop slowly. you mentioned nasdaq, fastest ever 10% drop. this is what it looks like on a more diversified index it's somewhat similar to what we saw in june. i heard you guys talking last hour about the 50 day average in bull market that's supportive. that's where it is, 3310 it's in that zone in an upfriend the market will fall to the down side you don't want to see a meek
bounce but it makes a lot of sense for this to be the case. something else about the last three days it hasn't been associated with a lot of macro stress. if you look across asset markets. the u.s. dollar, yes it did gain and bounced off recent loss. maybe looks who knows it could be creating more of a bottom a weak dollar has been a benefit to equity market for a while it's harbor to say this is a trend change you didn't see a buying panic in treasuries it seems like a shake out of out of positioning last in first out. >> mike, it's not just that watching some of these other moves with oil, with any of the other things like crypto currency that we talked about before >> it's true i would say oil and crypto and gold are kind of just the direct
nevi inverse of the dollar. lumber was up huge and came back a lot. credit spread and treasury markets and other markets of the subsectors of the market you expect to sell off if it was a bigger economic stress event like transports which were up yesterday that's not necessarily been the case. it's not a clear message that somehow this is really a panic about the recovery, it seems a little more equity market focused right now with those other asset classes thrown in. >> mike, thank you joe? yeah thanks, becky. astrazeneca, we've been talking most of the market pausing its covid-19 vaccine trial the phase three. a big one. to investigate an unexplained illness and that is putting pressure on the shares of the drugmaker, but it has come back from the loss. they are slowly heading lower as this pre-market session comes
along. m meg terrell joins us we had a long conversation with dr. scott gottlieb i hadn't considered the possibility that the spike protein itself could, could result in some of the sickness that you get from coronavirus, that causes the covid and that would be -- that's worrisome >> reporter: yeah, joe, there are a lot more questions than answers about this event this morning. it was reported late last night astrazeneca had paused all of its studies as it investigates this one event in the uk that was reported by stat news in a statement astrazeneca telling us as part of these ongoing global trials our standard review process was triggered and we voluntarily paused vaccination to allow review of safety data by an independent committee. here's what we do know this is what they call routine action after an unplanned
illness. it may be unrelated to the vaccine. they are expediting the review to minimize the impact on trial tlienl there was some speculation there could affect trials of other vaccines we reached out to pfizer and moderna and johnson & johnson. none of those other companies right now see any impact on their timelines. i also reached out to operation warp speed, of course the trump administration's effort to speed vaccines to market the chief adviser telling me this pause while the adverse event is fully investigated means the science based driven process is working as it should. they have a portfolio of candidate and platforms and believe they are still on track to deliver a vaccine by the end of the year. there's so many questions about what this event is whether it was caused by the vaccine. and what impact it will have on this trial and potentially other
trials right now those are question marks and we're just going to have to wait for more information. >> on the business side of things, meg, just watching the stock, should we tie it to astrazeneca's actual income statement? i don't know how big of an event would it be? everyone wants a vaccine, obviously and there's bragging rights and for humanitarian reasons it's very important. people say it might be that much to the bottom line social we look at the action in the stock to glean what's really happening? >> probably not. you know last night the stock was down about 8%. it's a scary headline. when there's a safety event in a major clinical trial we don't know what's happening you know for smaller companies their stock prices are tied directly to any whisperof news about these vaccines because it could be so meaningful to these
companies. for astrazeneca, an established company with many other products that make many billions of dollars a year in revenue, they are not a vaccine company for the most part. they partnered with oxford on this vaccine to manufacture it and bring it through these large trials i've seen estimates for the total size of covid-19 vaccines at multiple billion dollars a year for the entire market some are much higher this is likely not a make-or-break product at all for astrazeneca. >> all right, meg. thank you. andrew coming up on the other side of this break the coronavirus helping netflix to grow its subscriber base by leaps and bounds reed hastings spoke to me about the company's success during the pandemic that interview straight ahead. before we get to a break, though take a look at the markets right now. s&p 500 up about 21 points
nasdaq looking higher about 135 points higher after what has been quite a creioorctn. we'll talk all about it when "squawk" returns after this. ♪ (vo) while you may not be running an architectural firm, tending hives of honeybees, and mentoring a teenager -your life is just as unique. a raymond james financial advisor gets to know you, your passions, and the way you help others. so you can live your life. that's life well planned.
company's culture that made netflix grow that way. the subject of hastings new book titled "no rules rules" netflix and the culture of reinvention i spoke with hastings yesterday and asked him about work from home and whether this trend can persist after the pandemic >> i think it's really valuable, and important and useful to have in person meeting, and i miss that so i would say there's nothing good about the ten person zoom call that it wouldn't rather do in person. >> but, in the future, in a post-pandemic world how many days do you think you'll be in the office >> well, i've always worked from home on nights and weekends. so really talking about, you know, is it the only nodality you have or is it partial? i think it will be partial
some working from home and some group meetings together. >> i think many of us are working nights and weekends from home in addition to all day. i asked hastings about the success of disney plus with 60 million subscriber as they did and what the number he had previously expected from the competition. >> oh, maybe 20 million at best. you know, they've -- most companies have a hard time executing on something as radical as, you know, let's go direct to consumer over the internet and they've done a remarkable job growing to over 60 million in less than 12 months it took us 12 or 13 years to get there. so, they are very focused, obviously, on direct to consumer but so are we. and i think, you know, we love
the challenge. we want to bring the challenge to them. we want to get better than disney in family entertainment and that's going take five or ten years. they are very, very good at it but, you know, we're very focused and we continue to learn new things >> what's the lesson in their growth given you've been surprised by it is there something you notice and said hey that's pretty interesting we should try that >> they've had lots of incredible content and they've been very aggressive about putting that content on to the disney plus service and then i think it's the power of a great brand like disney has really carried the day. so if anything it's emphasized how important it is for us to invest in the netflix brand and what it represents great series great films. that you can relax with any time >> let me ask you a different question about one of your other competitors which is hbo max
critics said they stubbed their toe on the way out of the gate do you agree on that >> depending how you read the numbers. they got 3 or 4 million people on hbo max so compared to disney 60, it's a pretty small number. so i think they got a ways to go but, you know, they've been a legendary provider of great entertainment for a very longtime so i wouldn't count them out >> we'll show you a lot more of that interview throughout the program with netflix co-founder and ceo reed hastings including some of his comments about tik tok and china as a market. so stay tuned for that becky? that is a bold prediction to think that you can be bigger than disney to the children's market sometime in the next five to ten years think about decades and decades and decades that disney has been building up that library, that catalog, the number of
characters that one i have a hard time kind of understanding >> the two things i thought were fascinating this idea they would invest so much in family entertainment and what that's going to mean and also in the brand. because i historically asked reed about the brand before. netflix represent as lot of things to a lot of people and i don't know if they focus so much on what netflix as a brand means. i think you'll see more how they promote the company and the overall brand as well. okay we got much more of that interview coming up. in the meantime after this, investor stanley druckenmiller and
harlem children's jones are going to join us to talk about the nation's education system. we'll get stan's take on the recent mark downturn as well lots to talk about with these gentlemen. then we have senator ted cruz. he'll be joining us to talk
about virus relief and his new legislation which includes tax relief to employers and employees. right now as we head to a break let's look at aflac trivia question according to the brewers association which craft brewery is number one in sales volume. we'll have the answer when we we'll have the answer when we come back. aflac. what he said. and this unexpected bill is from... the two-thousand-dollar specialist. thanks. aflac. when you're sick or injured, aflac is there. we can help with expenses health insurance doesn't cover. get to know us at (aflac!) dot com. pampers
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it's the simple joy of washing your hands,. without ever touching a faucet. it's the little things that matter. that's why we create moments to feel kohler clean, every day. ♪ . this is fun. we don't normally get to actually to read the answer to the aflac trivia quiz but here it is. according to the brewer's
association, which independent craft brewer is number one in sales volume yuengling. it is the oldest operating brewery in america becky, before we get off of this subject and, sorkin, you're a piece of work but we ask you your biggest vice and you say you drink sparkling water or something in the house that's a stretch because it might be bad for dental enamel i want to gave plug to something that's the greatest invention in recent history and that's the spiked seltzer i'm not going to mention any brand names. one in particular that's named after a jack london novel. i tried lime, black cherry they are so good you know what happened i stopped drinking soda, right,
because i don't know there's something about that sweetener maybe that's bad who knows. anyway i can do sugar because i'm too fat so i started drinking these possible land springs flavored like lime so i love them >> those are good. >> raspberry lime. i drink them and they quench your thirst so well and you don't have that after taste. try that quenching your thirst with a spiked seltzer, sorkin it's 5% alcohol, not a big deal. just have one. >> how many have you had this morning? how many have you had this morning? >> first six go down pretty smooth honestly i had a long day yesterday at the dmv, not for me but anyway i had one when i got home and it was great. i'm not mentioning any names becky.
white fang have you tried that sorkin live a little, dehumidifier. your biggest vice is sparkling water? doughnuts. >> doughnuts >> let's check shares of tiffany. it is set to walk away from its planned take over of tiffany because of complications tiffany said it will be suing lvmh over the deal if you look into the reasons why on this. lvmh says that it won't be able to complete this because the government, the french government is asking for a delay because of the threat of tariffs on french products from the united states. this is another case where threatened tariffs are interrupting global business tiffany shares are down by 8.8%. this is going to be very interesting to follow with the tiffany lawsuit coming out and
saying they've done nothing. no material or adverse change on their part the french government getting involved here and it will be the one that's really driving things on this. we'll see how it plays out in the court system >> okay. coming up very big interview here on "squawk box" tan lie druckenmiller joins us with reaction to the market selloff. and his involvement with the harlem children's zone joining us for that geoffrey canada, president and founder of hcz and kwame owusu-kesse. he is ceo of the harlem children's zone. we'll discuss the nation's education system, inequality and the future of the workforce. check out the futures at this ho, 1 pnturup34ois. i feel like we're forgetting something.
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with internet essentials from comcast. when you're connected, you're ready for anything. welcome back to "squawk box" former xerox ceo said the company must to change the criteria to create a diverse work forward >> we know that there's a lot of talent there that's need on the boards that's not, can be delivered by people other than past ceos. so i think that it's a fallacy and a structural form of racism and exclusion to say that the only people who can actually participate are people who have this very narrow set of skills and it's a way to exclude people
versus include people. >> we'll continue this important conversation today with a special edition of the "halftime report". a new initiative to increase diversity at the highest level of u.s. company. guests there include merck ceo ken frazier. i know you think i have novices in honor of the pandemic -- >> oh, my god. >> i want to shout out to my good friends at corona, because corona >> well, yeah. >> there you go. >> that's one of my brands, anyway i think that might have been we should all try to shock each other occasionally because now i'm -- i wasn't expecting that >> you tell me i have no vices
i asked you how many white claws you had. >> that's bad you asked that because we do get crazy ones you cannot have a drinking problem if you're going to get up at 3:45 every morning they should know that. ken frazier is an example of someone who got some, a hand up early and that's sort of what we'll be talking about now it's not easy. it's expensive but it works the harlem children's zone is celebrating its 20th anniversary today. what started as a social policy experiment has grown into a successful data-driven model to break generational poverty at scale across the country joining us now on what's to come, we saw the last 20 and see what happens in the next 20. stanley druckenmiller became the ceo. geoffrey canada, president of the harlem children's zone and i think of as the guy who thought
this up. and was early 20 years ago and kwame owusu-kesse. he's ceo currently of the harlem children's zone. so we've had this conversation before, gentlemen. and i think most people know what we're talking about let's tart there, again, geoff, because it was 20 years ago. you look around and tried to figure out what do we need to do we need to look at these poor communities and structure a middle class environment for these kids whoa, how much would that cost and is it even possible. that's what you did. it was funded and it was expensive, but you started using data early on and you got data to prove that it works does that summarize essentially what happened, geoff >> i think it summarizes what happened, how it happened. but i want to start the morning by doing something radical that i've never done on national tv before i want to say how much i love stan druckenmiller
you know, we've been partners in this work for over 27 years. and none of this, the zone would not have happened and, you know what i think america can learn something about this right? two guys from different worlds, deciding we both loved this country and america can be better than it is. and the only way we do that is we got to roll up our shirt sleeves and we got to really work at this really hard and we've been doing that and, you know, stan stepping down after 20 years is something that i'm very emotional about it. because of what we've done but here's what people don't under about the zone when we started in harlem there was not one national chain in harlem people did not believe you could do business in black communities. you come to harlem today, you can find every national chain in america there and they are all doing well this is about not just what's
good for these poor black and brown kids but good for america for us to rebuild these communities and that's what stan and i are involved in and passing the baton out to kwame so he can continue this work moving forward >> thank you, gentlemen. love you too >> stan, i want to -- i mean i think at some point it was like, you know, it was a very -- to try to do it took some forward thinking and some big thinking and a guy like you stan that can write a check for something like that, and that -- money a lot of times doesn't solve a lot of things but to do what harlem children's zone -- it is expense jennifer, isn't it, stan was there ever a time you said wow that's a big number would it work >> first time geoff told me the idea that's exactly what i said.
but geoff had a plan from day one. and it was a model that was laid out and the plan looked good the most important part of the plan was geoff was going to be open-minded and flexible as to what worked and didn't work. geoff, this is not paying you back well for what you said about me on national television but the dirty little secret about geoff is he's a data keeper 40 years ago when no one realized the value of data, one of the four pillars of the harlem children's zone was for us to have an outside and inside evaluator on everything that worked and did not work. basically we started with a model. a lot of stuff worked. a lot of stuff did not work. we had a lot of failures if something failed it was thrown out the window. if something worked we kept it here we are 20 years later and i think we've really built up 20
years that we're willing to share, willing and anxious to share with the rest of the nation in other communities. so is it expensive yeah but that's kind of a joke because it's about $3,000 per participant and i think the incarceration rate in new york city is over $120,000 a year and, by the way, no tax revenues from gentlemen and women that are incarcerated so it's an absolute no brainer economically and businesswise. yeah was i nervous about the big number yes and i think that because you started with him so early you can go to different people in terms of funding other cities, other children zones, if you will in other places it will work still be expensive kwame i want to got it, chief handed you the baton
hey, kwame there's a pandemic called coronavirus thanks geoff it wasn't hard enough. let's do this during a pandemic. that has informed the actions you had to take since you started, right >> absolutely. quite a time to be transitioning into the role of ceo i feel prepared for this moment mostly because of people like stan and geoff and our previous ceo. but at the harlem children's zone is at its best in moments of crisis and we always say we run towards the bullets we don't run away from them that's core who we are there's a real opportunity for us to take the leadership mantle in response to the covid-19 in harlem but as a leading example for the nation >> you know, geoff, in terms of the next 20 years and kwame, you can speak to this as well, given
events of 2020 and the past six months, in terms of the awareness being raised and so many people wanting to get involved and saying this is the time and corporations and we've seen all these numbers thrown around i'm putting 100 million here then there have been times when they said, what should we do with this? how do we use this have you tried to say, geoff, look we know what to do with this if you're wondering where to go? can't you say we've got the answer, send it here >> look, i honestly believe that there's an answer to poverty that has been generational in this country and we got the evidence, outside evidence you know, we got one of the top most economists in the country who did the numbers, who knew what we were doing, we broke that cycle of poverty in this country. and it's not just me
stan and i are out saying to the rest of this country, if you care about these communities, if you truly believe black lives matter, then we need to make the kind of investment in these places it's not about slogans like defund the police and stuff like this this is about let's really get serious about making an investment in children and families that we know we have evidence is going to work. i'm telling you, that we need to take this crisis that's going on right now in this country seriously. as bad as the last six months have been, the nextsix months in the poorest communities of this country are going to be even worse so we need to begin to act with real urgency and do the kind of investments that make a difference look the corporations are wondering what they should do. we have the answer that says, look you need to make smart investments in places that will deliver the data that proves the
efficacy of this work that we're doing in poor communities. >> go ahead. >> okay. >> sorry kwame. >> i agree with geoff whole heartedly on this. we know the amount of resources being invested to fight the coronavirus. we believe we have the vaccine of poverty here on the ground in harlem and spreading our model across nation. targeting neighborhoods with comprehensive services is the vaccine and we need to be able to mobilize resource with the same intention, same sense of urgency in communities focused on place based efforts the other thing i want to emphasize when people think about nonprofit or think about the work of the harlem children's zone i don't want to be known as best in class as nonprofit organization i want to be known best in class business. we've seen with covid-19 with the impact of social unrest how
interconnected we are and the need with leadership so when we look at high quality organizations like the harlem children's zone, i want folks to see centers of excellence. whether it is high quality product and customer service, whether it's general management practices and good governance. whether it's strategic planning and innovation there's a real opportunity to break mental models what it takes and invest in these organizations. >> stan, you want to weigh in? >> yeah. i just want to say i've seen a lot of ceos on your show who look incredibly sincere. they talked about giving money towards racial equity, trying to deal with this problem look, i made a lot of investments in my life the best one i ever made was hcz. i would encourage those ceos to come look at the data, talk to kwame, because if you're going to invest in racial equity you
should invest in something that works. we have data that proves it works. we have an event tonight i would like them to take the perspective a company like ripple they are giving $5 million towards our event. that money will be put to use around the nation in six different cities as well as harlem and i would just say take a look because the one thing i hate more than anything is pouring money down a rat hole. if you give money to hcz you're not pouring money down a rat hole you're making a great investment >> i want to ask one sticky point and i don't care whether you answer stan or kwame or geoff. should we think of hcz as school choice does it go hand-in-hand with charter? sometimes whether it's good or not there are people that don't think that charter schools are the way to go, we need to fix public schools should we think of hcz as school
choice proxy, geoff and does that hurt sometimes that you might not be able to appeal to as many different groups for philanthropy >> yes so this is one of the, i think fallacies about children's zone. yes, we have eliminated the white-black achievement gap in our public schools it's something the country has been trying to do for the last 50 years we've done that. but most of our young people who are in college, over 900 young people in college right now, they didn't dprom our charter schools they came from the traditional public schools in our zones. so the harlem children's zone is not just about charter schools we're about great education. while i'm a supporter of charter schools i also have been fighting to make sure our public education systems have the
technology, have the connectivity so our children can continue their education across this country and i think this is really about great schools and we shouldn't be pigeon-holed just being a charter school because we're not. most of our children attend traditional public schools >> all right stan, can i just get a couple of questions in on this crazy environment we find ourselves in i start with kevin's op-ed piece and this has been a theme for a while. the fed is a big part of our lives. might being a great for wall street not necessarily great for main street where are we now, stan >> kevin has written a lot of great articles in the last few years, so i would say it's a very high bar. but i think it's his best piece ever and i think the merging of the fed and the treasury, which is
effectively what's happening during covid set as precedent that we've never seen since the fed got their independence and it's obviously creating a massive, massive raging mania in class assets and it has not spilled over to main street. i would just say that i hear a lot of people on the air saying save the world and i think powell did a great job in march. i just want all you guys cheering him on to remember the maestro in 2005 and how that worked out everybody loves a party. geoff loves a party. kwame loves a party. i love a party you guys love a party. but after a big party there's a hangover and right now we're in an absolute raging mania
we've got commentators on your network encouraging companies to do stock splits. companies then go up 50%, 30%, 40%, big market companies on stock splits as andrew pointed out earlier on your show that creates no value but the stocks go up look, joe, i have no clue where the market is going to go in the near term. i don't know whether it will go up 10% i don't know if it will go down 10%. i just want to remind people that there's no valuation support because we dropped 10% that hasn't mattered because we're so far outside of valuation realm with the fed doing what they are doing. the next three to five years will be very, very challenging and what the fed has done, in my opinion, if you listen to their, the jackson hole speech on
framework it was quite amazing it sounded like an apology because inflation has been 1.6 instead of 2 the last ten years. their mandate is price stability. where i think 1.6 is like to hit a home run they actually sound like they've been too tight the last ten years and look what they are risking in terms of financial stability to hit that 2% mark. my own sort of central cases for the first time in a long, longtime, i'm actually worried about inflation. unless everything i learned about it is incorrect, de facto, mmt which is what we're doing right now because we actually have a chairman of the federal reserve, $3.5 trillion deficit out lobbying congress to do more spending and guaranteeing those of us on wall street that he'll underwrite it. i think it's dangerous i think we could easily see 5% to 10% inflation in the next
four or five years ironically, i also think he's raised the risk of deflation because i cannot find a deflation that happened because you were near the so-called zero down everybody was precede by an asset bubble and he created this massive asset bubble so ease raised two tales risk of inflation is much higher than 12 or 24 months ago the risk of deflation, i'm talking like minus 3% or 4% because if things don't work out and we get a bust here that is up i think the odds of us hitting the sweet-spot, which i would say is around the 2% area which is where we've been has actually gone way down with fed activity. >> so, at this point, stan, you know, you've had to make macro calls. that's always been one of your forts and i mean do you think we
need more stimulus from congress for this or do you think -- what's the state of the global economy or the u.s. economy right now? is it past the point where we need more stimulus, kit go from here without it or would you still -- are there people that still need help, i think >> joe, there are some great anecdotes on the ground. i have a friend who owns a private trucking business. i used it for several years. it's absolutely booming. there's some noise making there because you have more points ever sale with online sales than you do when you're selling big boxes. the data is so strong it's hard to argue with. then on the other hand you have, obviously, the drop-off of unemployment insurance, the additions that have been put on. the answer is i don't know i think the most important thing to do is to have an open mind. just like the inflation outlook
where you got to be open-minded to inflation but you got to be open-minded to deflation i think you got to be open-minded about the economy here, despite the moves on astrazeneca, i think the vaccine data is very encouraging i just don't know, joe but there are a lot of signs, a lot of commodities are higher than they were pre-covid there's a lot of stuff on the ground so were we to get a vaccine and confidence comes back i could see things work out. so if i was congress, i wouldn't be in a hurry to dosome great addition here. i do think it's a little ridiculous they can't get-together and give some help that we talked about in problem spots. but the answer is i don't know, joe. >> stan, thanks. thanks for that. i look forward to hearing your thoughts whenever we're fortunate enough to hear it and gentlemen congratulations,
chief, great 27 years and kwame, you got this not the pandemic but the future looks bright, you know with what we've seen demonstrated by hcz up to this point. geoff, i think stan still has got some -- when push comes to shove he might go back to that well he already said he really believes in it so i think he's all softened up for you at this point. gentlemen, thank you very much good luck. we want to see you again, hopefully we will soon >> thanks for the opportunity. >> thank you >> okay, you're very welcome you're welcome good to see you guys we should take this opportunity to tell you about an upcoming event. cnbc's inclusion in action forum examines how business leaders can take immediate concrete action addressing racial disparities in their organizations and create
sustainable solutions to allow for equity and opportunity for all. programmed in partnership with the executive leadership council. it will feature conversations with leader of several companies. join us tomorrow, september 10th, and register at cn cnbcevents.com/inclusion we'll be right back. clean is a feeling.
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insider us a view for hopes of another round of stimulus. senator ted cruz is pitching his new pandemic relief egislation the recovery act this week senator cruz, it's good to see you. thanks for being here. >> good morning, becky good to be with you. >> let's back this up a little bit because for anybody who is watching, this is not fun watching the sausage get made as congress goes back and forth and the administration steps in from time to time too it sound like right now the democrats in the house are stick with this $3 trillion number that they've thrown out. the latest i heard they would go up to $1.5 trillion from the administration mitch mcconnell has had trouble getting a trillion dollars through the senate and so he's now got a new bill that will come out this week ate skinny bill we can call it, $500 billion what do you think about in terms of what we need, would you vote for the is
in they bill? >> well, i expect to vote for
the more targeted relief bill but i'll tell you we'll take it up this week i expect we'll get all or virtually all of the republicans. but sadly we're going to get very few if any democrats, and the sad reality of how washington is operating right now is that we got less than 60 days to an election and i believe nancy pelosi and chuck schumer have made a political decision and their decision is they don't want to deal. they don't want to pass anything so i don't think that congress is going to end up passing anything between now and election day and the reason i think they've done that is that pelosi and schumer have calculated if they maximize economic pain, if they have the most americans home and broke and unemployed and pissed off that benefits their party and helps joe biden. that's a very cynical approach i'll tell you what we ought to be doing we ought to be focusing on
recovery we ought to be to concussion helping millions of small businesses that have shut down, helping them re-open, helping get people back to work. millions are hurting but unfortunately a lot of washington democrats that are playing games instead of getting the economy moving again >> senator cruz, you have been a vocal critic of some of the things that are in that $3 trillion bill, things like ba banking perks for cannabis companies. i'm with you but you have your own pet project that has been added on to mitch mcconnell's skinny bill and that's making sure there's a tax credit for donations given to scholarship funds for private cools. i mean i'm with you in terms of paring this down and making sure this is only for relief. but critics in your own party who have a problem with that addition to mitch mcconnell's bill >> well, you mentioned critics in my own party. let's wait and see the vote. i think we'll get all or
virtually all the republicans. you want to talk about responding to the crisis i'll tell you all across the country. families are hurting and parent with kids are hurting. we got two little girls who are 9 and 12 we have been distance learning since march. it's tough especially tough -- look with us we have a two parent household for much of the shutdown i work from home heidi worked from home we had our fourth grader at the dining room table. we had our seventh grader in her bedroom. it's not easy for two parents and for all the single moms, single parents struggling to hold on. what we've done effectively is millions of kids their education is on hold they are not learning the basic skills of reading, writing and arithmetic it's a tragedy for these kids. it's a tragedy for those families whose parentscan't resume work again. and so i am a passionate, passionate advocate for school
choice and the targeted relief bill that rear going to vote on this week includes my legislation to create a federal tax credit, $5 billion a year which even in washington speak lot of money, directly focused on expanding choices for parents who are struggling and it's a dollar per dollar tax credit, to individuals, to corporations that make contributions to scholarship granting organizations, giving scholarships for k through 12. by the way that's for parents to send their kids to public school, private school, parochial cool their choice they can send them anywhere. that money can go to public schools if parents choose but what it gives is the parents the forechoo parent to choose the demonstrate will filibuster it because they are happy not only do they want people to be unemployed right now they want kids to be staying home. and, again, that's not the right solution we need to have an urgency in
washington get people back to work. that's why my recovery bill cuts taxes, cuts regulations on small businesses on job creators because we got millions of small businesses that are on the verge ever going out of work millions of families who are hurting right now. >> senator, i guess back to my point. i would like to see these things get passed for the schools and small businesses as well i don't think anybody likes to see anything get hung up on the way. it sounds to me that no way something will get done at this point. do you agree with that assessment >> you know, unfortunately, i do you know, if we look back over the last six months, in march and april and may we saw congress come together in a bipartisan way we work together passed a whole series of major legislation. the biggest of which was the c.a.r.e.s. act c.a.r.e.s. act passed the senate overwhelmingly the vote was 96-0. i voted for it bernie sanders voted for it.
that is a lot of ideological diversity. the reason that we saw that bipartisan, it was the height of the crisis, right as the pandemic struck and congress felt a real sense of urgency what has changed in the months since then is we've gotten closer to an election and i believe the democrats have made the decision they don't want to cut a deal i'll tell you republicans, the president has been looking to cut a deal from the beginning on this, but you mentioned the nancy pelosi bill. listen nancy pelosi drafted a $3 trillion bill and it was never intended to become legislation working in the capital you learn the difference between something that's just a political show piece versus legislation that actually can pass, can pass into law. the $3 trillion she drafted she didn't talk to republicans she didn't talk to the senate. she put together a democratic wish list that's designed for them to campaign on. she knew full well it would never ever become law.
what we're going to vote on this week is a much more targeted relief bill. tinting thing is the democrats agree with almost every element in it but yet they are playing politics and the reason is -- look next month we're expecting tens ever thousands of airline furloughs. i've spoken with most of the major airlines ceos. they are looking to furlough massive number of people what i tried to explain to the ceos look the democrats want to see fur loss in october. why? because they think people who just lost their jobs who are sitting at home will be angry and the normal instinct is to throw the bum out. that means bring in joe biden. >> senator, do you support targeted relief for bail outs for the airlines and what do you think the american taxpayer should get in return if and hopefully when the airlines succeed and their share price and value goes up. should we become shareholders of those airlines
>> you know, i think it is in america's interest to have a strong and robust aviation sector an enormous amount of commerce goes through aviation. you look at aviation much like restaurants and hotels their businesses have been destroyed by government. it is the government that's stepped in and shut them down. it's not through mistakes they made now the reason the government did so is we had a global pandemic that's serious, that's dangerous and we need to continue focus on protecting those who are vulnerable but at the same time we can't utterly and completely destroy our economy and so i think if a bill were moving you would see relief for airlines included but i think the democrats want the furloughs. i think stopping the furloughs in october, the democrats view that as a political mistake. i think our urgency, so the recovery act i introduce today it suspends the payroll tax for
2020 what that smaens for every employee in america you get an immediate raise. your salary goes up so that you can go home and provide better for your family. also means for the employer the cost of hiring employees goes down that's a strong pro growth incentive to hire employees back not only part of the recovery act says that the next $10,000 that you earn in 2020 is entirely tax-free. it's free of income tax. why do you do that because as you know and economics what matters is the marginal incentives of the next dollar you're earning. we've seen 51 million americans lose their joins the last six months we should have a focus bipartisan urgency on getting those folks back to work >> senate, on the payroll tax holiday, i completely appreciate the idea of putting more money in employees pockets, but it's unclear that it's actually going to put more people back to work insofar as companies are only going to hire more people a, if there's more demand.
but this is still a health crisis so if you're a restaurant that can't operate indoors, whether you have a payroll tax holiday or not it doesn't matter >> so let me make three points going in reverse order starting with the last one you made i agree it's a health crisis one of the reasons the recovery act has strong incentives for testing. has tax credits for employers to provide weekly testing for their employees because one of the ways people will go back and feel comfortable going back is if they are confident they are safe and not endangering their health and safety and families we need to lean in vigorously on testing, testing and more testing. people are going back to work unless we re-open the economy. we're seeing at the state level, democratic governors democratic mayors who are playing politics. they are shutting the economy down i want needs to stop we need to let people go back to work and starting with the very first point you said you said gosh, if you lower the
marginal cost of employees you're not going to see more employees, you and i both took economics. you understand supply and demand if you reduce the price you're going see demand go up and in this instance what i want to do is incentivize small businesses and employers bringing their employees back as quickly as possible there's got be consumer demand business has to have a reason to have them back but i want to reduce the cost for the employers because, listen, there's not enough money in thebuilding behind me to shovel trillions at this problem and fix it the only way to fix it is to unleash the economy. our economy in january of this year was booming at historic levels lowest unemployment in 50 years. we can get back to that but not if government keeps man dating that everything stays shutdown until election day and here's the prediction, by the way if god forbid joe biden wins in november, the week after the election all of the politicians
saying shut everything down all of the democrats i predict they will suddenly say okay everyone go back to work, everyone go back to school, everything is fine this is not to say this isn't a serious problem but it is to say they are playing politics with people's lives and life savings and that's not the right thing to be doing. >> senator, can i just to push back on that cynical view of why elected officials are taking the stance they are take obviously there are some democratic senators particularly in areas that were already hit hard by coronavirus back in the spring who are proceeding more cautiously i don't know that any of them would be doing this to try to say they are doing this for an election for the president coming down the road because they all have their own constituencies that are very angry. i watched it play out here when it comes to school re-opening. i watched it as restaurants and businesses open. it's not an easy stance for politicians to say we're not
going back tropg people are sick of the lockdown. they not taking these stances because they are playing politics necessarily they may be worried because they've seen this play out before there are a lot of people that to see schools re-open, businesses re-open but some of that, this is a chicken and egg game where you're waiting for congress to approve known give the schools the things they need so they can open safely. or you're waiting for congress to give the small businesses loans so that they can get the protections that they need to re-open their business safely. some of this is just a chicken and egg game can't open it safely until the money is there to do this the right way. >> becky, i don't think it's overly cynical to expect politicians in washington, particularly career politicians who have been here forever will behave politically on the eve of an election, particularly in this hyper polarized partisan environment we're in beyond that, i think the democrats are making it -- it's
not a crazy political calculation that they believe they will get cover from much of the media who will blame whatever happens on donald trump no matter what so this week, you're going to see the democrats filibuster targeted relief. relief that's provide regular leave to small businesses and families and tax relief and relief to parents who want their kids to go back to school. democrats will filibuster. they will block it most of the press coverage will be putting the blame on donald trump. now that's just ridiculous that's not, in fact, if you're actively filibustering something you don't get to at the same time claim you are supporting it and i think democrats are playing games right now with people's livelihoods and it's really wrong by the way i'll say my home state of texas, you look at texas. a lot more texans are going back to work than other parts of the country and we're seeing benefits texas is still too shut down
we need to open up and let people provide for their families use common sense practice social distancing but don't kill the economy >> senator, real quick before we go you made a comment, you said god forbid joe biden wins and you talk about playing politics. i would love to hear your response to the critics who would say that the president has played politics with the pandemic from the beginning. you know, you're advocating for testing right now. there are a lot of people arguing for testing a lot earlier than this and the president was actively publicly talking about how he wanted less testing. he was publicly talking about how he didn't want people wearing masks. he was not trying to model that as a behavior. how do you react to that when you talk about tissue of playing politics >> look, i can tell you i've been calling for more testing and more testing and more
testing from the beginning of this pandemic. this pandemic is serious treating it seriously is the right thing to do. i can tell you back in january i urged the president to shutdown air travel into and out of china and the president did the right thing. he shut down air travel into and out of china joe biden immediately attacked him and called him racist and xenophobia it was the right thing to do i chaired a hearing where i heard from customs and border patrol saying shutting down that air travel slowed the spread of the virus. it was the right step to do. from the beginning i've been calling for more and more testing. it's why my recovery act includes very substantial tax credits to help employers provide testing on a wide scale basis. but the focus of the testing -- listen we know this virus doesn't impact all communities the same we know if you're very elderly, have serious health ailments this virus can be deadly
for young people, healthy people, the mortality rates are much, much lower and what we have done and what we're seeing too many politicians continue to do, is strangle our economy rather than letting the engine of the american free enterprise system help people get out of this great depression. >> senator cruz, thank you for your time. great talking to you >> always a pleasure. when we come back, can video makers survive as more workers go back to the office and spend less time on their couches we'll speak to strauss zelnick s&p is higher this morning ♪ ♪
>> faang stocks have been slammed but the drop is affecting tech names dominic chu looks beyond the carnage. >> reporter: over the course of the last three trading sessions the biggest s&p 500 companies along with that surge of electric car member tesla lost over a trillion dollars in market value as you can see behind me. just for perspective that's like losing an entire google parent company alphabet from the s&p in three trading days that means outsize return declines as well that's the mega cap side of things
now take, for example, what's happened with nvidia it's up 3.5% right now over 140,000 shares of volume pre-market the biggest computer chip maker in america right now has lost around 17% of its value since closing at a record on september 2nd. that's $60 billion worth of market value shaved off. remember it gained over 190% from the pandemic low to that september record high. then you got software make i adobe. also up 2.5%, roughly 6,000 shares pre-market. it lost 14% since september 2nd. that's $34 billion in value after rising 88% from the pandemic lowto its recent record high. then there's a relative newcomer we've been talking about it a lot. zoom video 70,000 shares of volume. lost 24% of its value since its record close on september 1st which ends up being around $30
billion of lost market value but, remember, it was a stunning 300 plus run so we're seeing a bounce back in the pre-market for these beaten up tech names. the question is whether it can be sustained or not. so just check all your numbers from now on. can you believe these moves? there must be times where okay i got to check that. i know you do. >> you're absolutely right, joe. i double check these numbers i triple checked them. i cannot believe that a company could lose say $50 billion in two or three days, let alone the hundred or $200 billion some of these guys lost in that same time span. it's like monopoly money throwing billions and trillions around like it was nothing >> 2020. and anything can happen. you know what?
it's only september. there's not much more going on for the rest of the year you can relax. >> no volatility will die down right into november, i think >> it's got andrew drinking coronas during the show. that's how crazy 2020 has become >> where is the lime >> couldn't find one it's early in the morning. >> it is i'm looking for a white fang white claw he were joined last hour by longtime hedge fund developer stan druckenmiller he had a colorful way of describing what he has seen. >> i think the merging of the fed and the treasury, which is effectively what's happening did your covid set as precedent that
while we've never seen since the fed got their independence, and it's obviously creating a massive, massive raging mania in financial assets and as you pointed out joe it has not spilled over to main street. >> joining us now to talk more about the markets, paul hickey, co-founder of the spoke investment group paul, did you hear most of the body of stan's comments or is that the first you heard were you watching? >> i heard much of it. i think, you know, the key takeaway and what every investor should be focusing on is to keep an open mind we don't know what will happen going forward. i do think looking forward, you know, we're worried, dom was talking about the carnage in these big cap tech stocks. while they are such a large weight in the market they tend to move market there's a lot of
other stocks out there for the individual investor you don't have to be pre-occupied what the market is doing, focus what individual stocks are doing. you go back to 2000. we made a lot of comparisons 2000 the average stock in the year leading up to the 2000 peak was actually down and well into what was a bear market. from march 24th the year after that the average stock in the s&p 500 actually saw a gain in that year. it was just a large gap tech stocks i think going forward what we're looking at here is to focus on, as the economy picks up steam, these large cap tech stocks have benefitted from the shutdowns because they were the only growth in town, may see some rotation into sectors of the economy that will benefit from economic growth. so you look at theindustrials, you look at some sectors, some parts of the consumer discretionary sector and even the financials which were hit
very hard during the initial lockdown of covid. you want to take a stock by stock approach and look at those things rather than focus on the market unless you're investing strictly on index funds you shouldn't be pre-occupied what the market is doing at all >> so, paul, i guess we do focus a lot on short term and even intermediate term and especially this year when we talk about 2020 and everything that's happened so it's hard over to think about three to five years. but one of the things that druckenmiller said was that the after effects of the fed or even the, all the congressional spending that we're seeing with coronavirus and the worries about inflation and actually challenge on deflation as well will make for a tough operating environment in the stock market for the next three to five years and that we normally don't hear. we hear about the future is always, you know, we see technology and there's
alternatives in fixed income we always hear long term we're bullish. that didn't sound that bullish how do you feel about five years out? >> yeah. we're in on unchartered territory. we're dealing with the pandemic. what will happen going forward i think over the long term we have had, you know, very strong returns for the last ten years in the market even with what we saw in the first half of this year so history suggests that future returns aren't going to be as great as that. that being said, looking forward and over time i think the stock market has historically provided a better return to investors than treasuries have and bonds have over time as long as you were willing to hold for a certain amount for an extended period and not focusing on the short term i think for an investor with a long window, equities will certainly do better and especially in an environment where we may see inflation run
hotter than normal, i think you want to be focused on assets rather than cash or fixed income >> all right, paul thanks we appreciate it thanks for responding quickly. all right. you're welcome becky. >> thanks, joe when we come back more from the news making interview that we've been bringing you all morning long that's with netflix ceo or co-ceo reed hastings take two with strauss zelnick. he'll join us next on gaming during the pandemic. and what happens when people go back to work and cool. right now you can check out shares of slack. that company beat estimates on top and bottom lines for its latest quarter but said its growth rate slowed that's responsible for a 17% decline in the stock this morning. we'll be steaking with stewart butterfield tomorrow at 8:00 a.m. right here on "squawk box". stay tuned we'll be right back.
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the video game business is booming as americans spend more time at home shelter-in-place stocks are sharply higher in march when the pandemic was declared. total consumer spending reached second quarter record of more than $11 billion joining us right now for a squawk exclusive is strauss zelnick. strauss, good to see you >> thanks for having me. nice to be back. >> let's talk about where things stand right now. we know that as people sheltered in place, things like video gaming, usage skyrocketed, went off the charts i wonder if you can tell me
about engagement with your customers and if they turned down at all as people have gone back to work and school started again. >> well the first thing is we don't want to celebrate these times because they have taken such a terrible toll on people all around the world and continue to take a terrible toll on people here in america. that said we're pleased we're able to provide entertainment during these times when people have been stuck at home and we have seen that reflected in engagement and in our numbers. so, for example, we had another record and will gross over a billion dollars. sold over 14 million units grand theft auto sold over 5 million units. will sell another record this year seven years after its launch the list goes on we see it in engagement and revenue and cash flow for the company and reflected in the stock price as well.
>> what has happened to engagement, though are people spending many more minutes with you every day more customers coming in from what i understand, numbers for similar companies have really been kind of hit through the stratosphere on how high those numbers have gone. >> engagement in our mobile title is up 50% to 100%. we've seen people spending more time with our titles and that's translating into spending and into unit sales as well. so we are seeing that. i think the question is now what happens is people are able at least in some parts of the country return to work we do believe that engagement will continue to be stronger than it was before the pandemic because we think there's been a systemic shift from linear entertainment to interactive entertainment as people realize
it's not just a great experience, great stories, great characters, great graphics you can engage with friend and communities in real-time while you play around the world. when people have been constrained socially that's been powerful even when less constrained it will continue to be powerful we've seen new players come in and lapse players return >> that's what i wanted to get to we look at all of these stocks that have done so well the we is will it last there have been so many things, i think new users for online banking and those people who have figured it out and who are new users are very likely to continue their online bank episcopalian as the pandemic goes you think you will continue to outperform maybe not to the levels you see now but engagement will be stronger than it was before the pandemic what would you anticipate? 10 or 15 or 15% increase over what you had seen pre-pandemic
>> it's very hard to know. as a practical matter what have we done about our guidance we have not adjusted up our guidance for the second half of fiscal '21 because we don't know what that will look like ane anecdotally we expect it to continue it's on the order of 15% even when the world really returns entirely to normal which i hope and believe that it will so i don't think it's 50%. i think it's 15% to 20% none of this matters unless you make hits and our goal is to be the most creative and innovative and efficient company in the business that's what we strive. >> how has it been operating when some of your employees have been working from home how has it been in terms of trying to turn out new content you can deliver quickly? >> in that area we've been
extraordinarily lucky. indeed we were prepared. we have actually planned a remote work from home day on, i think march 12th then in turns out oops we all have to work from home within a week we had more than 5,000 of our colleagues all around the world up, running and highly productive. we're able to measure productivity because all of us do our work on computers at take two and our productivity if anything has been higher during this time. certain areas are constrained. for example motion capture we're now back doing motion capture in bubbles for people's safety and security. we haven't missed a beat in terms of production. i am of the view, those being able to collaboratate physically in person is really important. to business process and creative process and i'm looking forward to the time when it's safe and secure to do that. >> strauss, you said earlier that the market share that you've been stealing, engagement
you've been stealing from customers is coming from lynn after entertainment. who do you think you're stealing that from? >> well, look the pie continues to grow. the media day continues to expand and linear entertainment has grown during this time as well we've grown more rapidly it's less about stealing share and more as the media day expands which remarkably continues to do, we can grab a greater share of that day as long as we put out products that people want. so far we've been able to do that with some of the most powerful and highest grossing franchises in the entertainment business i want to thank you for your time today good seeing you and we hope you come back soon >> thanks for having me. a lot more "squawk" ahead. how much additional pain could investors expect from this latest bout of market volatility well last hour longtime hedge fund manager stan druckenmiller
said the market is in a raging mania. we'll talk about stan's market call but next reed hastings weighing in on tik tok, china and the tech stocks. more from our special interview with the cceo o-is on the way. stay tuned you're watching "squawk box" here on cnbc r any amount you che instead of buying by the share. all with no commissions. stocks by the slice from fidelity. get your slice today. i'm a sustainability science researcher at amazon. climate change is the fight of our generation. the biggest obstacle right now is that we're running out of time. amazon now has a goal to be net zero carbon by 2040. we don't really know exactly how we are going to get there. it's going to be pretty hard. but one way or another we're going to reduce our carbon footprint to net zero. i want my son to know that i tried my hardest to make things better for his generation.
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welcome back to "squawk box" a shake up taking place at netflix management team. bela bajaria named new head of global tv for the streaming giant, and to say she used to be a comcast employee back in the day. but meantime longtime netflix executive cindy hollands who built netflix original programming could be exiting in a memo the ceo said he wants to simplify the way the content team operates. netflix is well-known for its culture and candor and the subject of the new book by the company's co-founder and co-ceo titled "no rules rules." i spoke with hastings yesterday afternoon and asked him about the title of no rules rules and now the title is that's supposed to work in this day and age.
>> we're in fundamentally dedicated to employee freedom, because that makes us more flexible and we've had to adapt so much back from dvd by mail to leading streaming today. and if you give employees freedom you got a better chance of that success and the book is all about the subtlety of how do you give freedom and not have chaos. >> one of the most controversial things do you is this idea of keeper test. as part of that keepertest i say your co-author said that this really amounts to almost like the hunger games which is to say the keeper test is if you wouldn't -- if you're thinking in your head would i keep this employee and if you wouldn't you're not supposed to keep them that's a pretty high bar >> it is you know, we really model ourselves on professional sports and if you're going win the championship, you got to have incredible talent in every
position that's how we think about it we encourage people to focus on who of your employees would you fight hard to keep if they were going to another company and authors ones we want to hold on to. >> i don't know if you read your own interview, an article that maureen dowd did over the weekend but in it she quotes janice janice said netflix has a culture of arrogance and fear and at one point said now only now are you not too big to hate. what did you think of that >> well, she was talking about the hollywood perspective of our competitor against us as an upstart. and so it's natural for the new kid in town, that's netflix, you know, to be threatening to the viacoms, the ddisneys, to the f. >> i got into a conversation
with hastings about tik tok and its implications with china. >> tik tok has done a phenomenal job on short form entertainment. so it shows there's always room for innovation i would never count anybody out. it's a wide-open market. and lots of new surprises coming >> given you just mentioned tik tok, there is a real question about the future of tik tok, but more importantly the future of the relationship between the united states and china. a market that you've long talked about trying to get in i'm curious what you think the implications of what's happening with tik tok may or may not be on your ability, netflix's ability to enter that market in the future >> well, we got turned down by the chinese government several years ago. and we've not been spending any time on china in the last couple of years there's so much opportunity for us in asia, rest of asia, india
in particular, korea, japan, indonesia, then all through europe and latin america we're focused on that. it's a pity from a long term perspective of the u.s. and china disengagement. but there's nothing we can do about that instead we're to concussion on ent -- focusing on entertaining everybody else >> another topic why step down a year and a half ago from the board of facebook. >> i've benton board for many years. so i just felt it was time we both compete for a lot of the same employees that's the primary competition so i felt it was good for me to step down. >> in retrospect now that you have a seat on the outside of the ring do you have a view about the role of social media and the role of facebook when it
comes to the elections and southeast anxiety around that right now? >> well, i month that cheryl and mark take their responsibility very seriously it's clear we had a difficult situation also at twitter, at youtube. you know, these are new technologies and, you know, new technologies have some negatives and some positives and the trick is to constantly be learning how to minimize the negatives and increase the positives >> we also discussed the remarkable run for faang stocks. i asked hastings what he thinks about when he looks at the markets and in particular the valuations of tech stocks including netflix. >> from what i was reading, softbank sort of driven. i'm not sure, but, you know, i really focused very little on
things i can't control focus almost entirely on our employees, our customers, our series, our films because that's, again, an area i can have some impact >> do you buy stocks, by the way? >> index fund investor for at least a decade >> that's it so no tesla for you? >> there's netflix and then passive. so i'm very barbell. >> you can catch the entire conversation with reed hastings on cnbc.com and also on the squawk pod later today including his thoughts on how covid may become part of hollywood's story line in the future becky. yeah i was going to ask you just in terms of the amount that they are spending, was it $6 billion or something that they were planning to pour into new and original content how did that get changed by what happened with covid w-shutdoith
shutdown of things and are they ramping up >> it's close to double that number he says there's going be more production that will be available for viewers in 2021 than there was in 2020 even with covid. so, you know, i know there's lots of questions whether there will be enough programming even by the way new york city, southeast productions are starting to get up and running so we'll see i think the next couple of months there may be a lack of new production for viewers going on to some of these, some of these networks i'm sure reed would say there's still a lot coming to netflix but i think or at least my hope from what it under is come 2021 there will be some more stuff for view stories watch and binge on >> cross our fingers we're desperate for new content at this point. really interesting stuff great job. when we come back, what the
selloff in technology over the past few days means for your portfolio. the nasdaq closed yesterday in correction territory getting there in three trading sessions. market cap losses from some of wass's biggest names stretched past 12 figures. that's right use your fingers to count these nuls check out the futures this morning. things are in the green. dow futures indicated up by 238 points s&p is up by 35. sd inaaqs up by 150 points stay tuned we'll be right back.
the 2020 presidential election is less than two months away a new cnbc research states a survey takes a close look at voters in battleground states and issues important to them eamon javers joins us more with more on that front what do you see? >> reporter: what we're seeing is a stabilizing lead for joe biden in terms of the horse race take a look at the national map. we're looking at six
battleground states. we're surveying likely voters in those states states that will make a difference and voters who will make a difference in those states once again joe biden has a lead in all six of the battleground states with a margin much 49 to 45 in arizona, 50 to 44 in wisconsin. 49 to 43 in michigan 49-47 north carolina and 49-46 in florida so biden runs the table there. it translates in to an overall lead of 49-45 for biden over trump. that's been remarkably stable during this summer despite the political conventions, the national protests that we've seen these numbers are really hardening. one statistic that is trending in trump's direction is the rebound in oatism about the economy which climbed back up to 50% in september so that's something that can be beneficial to an incumbent president is that optimistic number on the economy. although there's a raging global pandemic, intense national
protest, the biggest issue for voters in swing states is the economy. at 43% followed by political corruption at 38%, then covid-19 at 35%, law and order at 29 and racism at 27 so the economy once again the deciding factor in a presidential election. >> is there anything different about it this year i mean, i have a hard time thinking that any of the things we've learned in the past necessarily will count in a year where we've seen such upheaval, shutdowns of the economy, so many people whohave kind of been tossed and turned around by this >> yeah. look what's remarkable to me is you look at this list of issues. the economy at number one. you know that goes back to bill clinton's '92 campaign it's the economy, stupid the economy has been a dominant issue forever. with this year with these "titanic" events happening the economy is still at the top.
the big difference is how much the economy is intertwined with tissue of the virus. can we he restart the economy, get kids back to school. authors economic issues. people are really feeling the uncertainty there when they say the economy is now their biggest worry, far ahead of the virus. >> one more question i hate to put you on-the-spot. do you know what the margin of error is looking at some of those state race, in the swing states that matter so much, states that are in play it's gotten closer >> some of these are close to the margin of error. i don't have the exact number. it's narrow. north carolina toggle back and forth a little bit over the summer but right now you see biden, you know, sort of slof solidifying lead 49-43. some of these others, north carolina is really tight ueno at 49-47. so, there is a margin for error here of course, the big question this
year in the polling that we don't really know the answer to based on 2016 is, is there a quiet trump vote out there the trump campaign will tell you that there are people who support the president who won't tell pollsters about that, won't respond to pollsters call or lie to pollsters and have one up on them when they call. so how big is that effect? you know, we don't know because it's by definition unmeasurable. but there presumably some shy trump voters out there and if that's enough to make a difference >> thank you good to see you. >> you bet >> you too the tech stocks led the market higher. now leading it lower for the last couple of session nasdaq in correction territory just three sessions, three sessions after seeing a record close. that's the fastest ever. josh lipton joins us now with a look at some of the biggest
decliners and some of them are the biggest names, josh. >> reporter: that's right, joe this tech tumble continues let's start with apple closing below that $2 trillion market cap now trading nearly 20% off its all time high. a slow start to september. that's following five straight months of gains. also remember just how far and fast that stock has come still up 50% so far this year. apple is hosting an event on september 15th usually this is when ceo tim cook would take the stage and introduce lots of new products but this year analysts do think the focus will be on the watch and ipad with the official iphone launch perhaps coming in october. then there's the smh, the etf that tracks the chips. surge on that work from home trend now trading about 10% off its most recent high among the names getting hit, applied materials, qualcomm and
nvidia important event coming up for chip investors, the election and questions how that could impact u.s.-china dynamics. big software names are not unscathed. the etf that tracks that subsector is about 10% off its record high. microsoft, sales forks adobe and zoom coming under pressure zoom down 30% now from its all time high reached on september 1st. back to you all. >> josh, thank you i wish we could see the future who knows. three days and up a little bit today. we'll see whether that's the beginning of a come back thanks, josh lipton. becky. thanks when we come back jim cramer's first take on what's shaping town a big day for the markets and not so evident benefit of stocks latest slide. tomorrow on box box doesn't miss honeywell ceo miss honeywell ceo stay tuned wlle ghbae' brit ck
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america can be better than it is and the only way we do that is that we have to roll up our shirt sleeves and we will to really work at this really hard. >> that was geoff canada, president of the harlem children's zone joined by billionaire investor and philanthropist zuk a miller. there are times when we are not sure where to go, advertising or how to spend the money to try to solve these things and there is a model at harlem children's
zone where it has worked tru druckenmiller has been one of the driving forces behind it a couple years ago he was the biggest philanthropist in the united states, $705 million i think back in 2009 or so but it's expensive jim, what do you think of charter schools? i asked them and they point out harlem children's zone is not just charter zones, most of the kids are public schools. i don't know it's such an intractable problem. >> druckenmiller is amazing, committed throughout thick and thin and a person who is inspirational to a lot of people i have felt that the best thing to do is support the public schools because the public schools particularly in new york are not that good. my wife went down the block and wrote a check and give it to the principal of public schools. wow, now we can get some books and some paper i follow stanley's lead. he's been true north for such a long time, that was a great interview and i think more people have to think long and
hard about schools, but also giving jobs. the governor from rhode island who is a venture capitalist before, she just corralled big companies and said, look, the people in our state may not have the credentials but they have the comp thens ray theen and salesforce are hiring people. the more druckenmillers we put on, you have to give now don't mail until you're older. i may disagree with him at times about the market but who cares the big issues he's the best. >> i mean, it's -- you know, you hear about reparations, i don't -- it's such a big number, but to take a poor neighborhood and make it middle class for kids and that's what harlem children zone does, from when they wake up in the morning, before school, during school, after school, that night and
that's expensive i don't know any other way -- i don't know any other way to do it it would be cheaper than a $14 trillion move, but whatever we do it is going to be hard work, roll up your sleeves and these guys have a model for it and i think it's moving to other cities i think the more that we can bring it to people's attention the more we need to do that. >> we should be replaying ray mcguire from citi, we have his comments over and over because he's inspirational, too. there are people out there who are committed, it's weird, but the government isn't big enough to help or doesn't want to the people have to help. i think that business is the greatest platform for change stand druckenmiller, ray mcguire, these are people who are using the platform of business to change lives it's such a great thing. joe, it's new. people didn't do that, of course, stan has done it for years but now people are doing it left and right. >> jim, thanks
we will see you in a couple minutes. we will have a lot more on tech and everything else that's been happening. thanks, jim. we will see you in a little while on "squawk on the street." andrew >> thanks, joe meantime, we've been talking all morning about the big selloff in tech you're looking at the markets getting a little bit better this morning but other sectors have also been getting crushed. look at the financials and energy yesterday joining us right now is jim paulsen chief investment strategist for the luithold group i read your report recently that looked at where we are now but also looked at history and where we may be going. i know you have an optimistic take but i want to throw at you a little bit of the conversation that we had earlier with stan. he says we are in a mania right now. >> i don't necessarily agree with that. i think that, you know, there's been this idea, there's been
this big disconnect between wall street and main street i think there is a pretty good evidence of a connection here. you know, we've had on main street we went from a minus 32% real gdp growth to i think in this quarter probably plus 30% we've never done that before we went from losing 22 million jobs in two months and then regaining almost 11 million of those jobs in the next four months we've never done that before we've had huge bounces in retail sales going back to record highs and housing on fire. in other words, there is been an incredible bounce on main street and that's exactly what the stock market has done as well. >> jim, but none of that has been, quote/unquote, organic it has all been the effect of the federal reserve which has also never done what it's done, the u.s. government has never done what it's done and i think
the argument that stan druckenmiller is making is that there will be a hangover effect to all of this spending. >> well, i think -- first i would say this bounce we're having, i would say that the collapse was not organic the collapse was artificial because all we did was turn an off switch on the economy and then a couple months later we decided to turn it back on and that's very artificial it wasn't because balance sheets were bad or -- it was more just a recession by proclamation and then a recovery by proclamation. a big part of that jump i don't think was organic, either. i agree that the policy stimulus is going to have big impact and i think it hasn't even started i think next year it takes about a year lag to really have impact and i think, andrew, my view is it's going to create a boom. that's my best guess i think we are going to have a big year in 2021 with growth and
we're seeing some of the evidence of that it amazes me that we are talking about the need for more stimulus in a quarter where we are growing at 30% of real terms and we've created 2.6 million jobs on average in each of the last four months. >> so you would not advocate -- jim, you wouldn't advocate for any more stimulus? you think if there's no more stimulus that's fine >> i think we're going to do okay i think we've added more stimulus already than we added anywhere close to what we added in the '80, '82 double dip recession, in the dot-com collapse, in the financial crisis of '09. i think it's going to work, andrew, it just takes about a year and next year we're going to see i think some pretty colossal growth numbers in the economy. >> okay. jim paulsen, always good to see you to get your insights and your perspective and see a little bit of this back and forth with two people i
respect to have very different views about where the markets are headed. >> that's right. >> i want to thank everybody joe and becky, cheers. cheers to you. corona, corona, corona. >> you're nursing that thing you're nursing that thing. take a drink take a drink you're nursing it. >> "squawk on the street" begins right now. >> tap water ♪ >> good wednesday morning, welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber another wild overnight in futures as you know, stocks will try to get back some of the worst three day stretch for the s&p since june a lot of news on lululemon, slack, tiffany and of course the vaccine makers our roadmap begins with the tech tumble the nasdaq now in correction territory, but futures do point to a bounce. >> tiffany shares down more than 10% ahead of the bet this has lvmh tries to get out