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tv   Squawk Box  CNBC  October 9, 2020 6:00am-9:00am EDT

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after yesterday's 122 point rise following the previous day's big gain back on the campaign trail, president trumped could resume rallies this weekend his doctors say his treatment is complete and tomorrow marks ten days from his covid diagnosis. and new reports say that $30 billion chip deal could be in the work, we have all the details. it is friday, october 9, 2020 and squawk box begins right now. good morning, everybody. i'm becky quick along with joe kernen and andrew ross sorkin. and as joe mentioned, we are looking at a higher open this morning after the gains that we've seen the last several sessions yesterday the dow up by 122, a
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gain of more than 500 points the day before that and right now dow futures indicated up another 113 points this comes after the dow closed at its highest level in a month yesterday. oil prices picking up by about 3% more of a supply picture but the s&p 500 indicated up by about 13, nasdaq up by 31. and treasureky my market, te yielding 0.765%. andrew >> let's talk about stimulus this morning because house he speaker nancy pelosi and treasury secretary steven mnuchin spoke about a broad stimulus plan yesterday and speaker's office says that the treasury secretary made it clear that president trump had interest now in finding an agreement on a comprehensive relief plan, that conflicted with comments from the white house communications director
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who said that the white house wants to address stimulus checks, small business loans and the airline, but not anticipating a larger package. nancy pelosi said that the white house is open to something bigger but not on the scale that democrats have proposed. so a little bit of finger pointing back and forth about what is really at play here. some other reports suggesting that trump really does want a bigger plan. so i don't know. to believe. do you believe that the president saw the market fall and then decided to change his mind or do you think that he knew the market was going to fall and was hoping to use that and say look what will happen if we don't do this >> i think everything he does hassomething to do with an end game, at least that is what he is thinking. and when he said that the other night, i think that he was mad, he said okay, fine, go away. but i don't think at the time that he said it is off, that he
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didn't really think that it was going to come back on. be good for everyone and then on the other side, you know, it takes two to not tango. and on the other side, i think nancy pelosi may not give him a deal before the election so there is gamesmanship and politicking on both sides. which -- shocked that there is gambling in casablanca >> yeah, 26 days before the election you think about how high of a bar it would be to get over in normal times but given this run up to the election and given the huge angst on both side, again, i'd be shocked if they could actually get something through before the election. >> on brian's show before, i mean, we ran some sound from leader mcconnell and i mean, our
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debt is as big as our gdp. hasn't been that way many times. >> first time since world war ii >> in other countries where that happens, sometimes bad things happen hopefully we're not like that and our dollar -- we're fortunate to have such a great ability as the currency of the world to do things but you don't want to be stick on things that don't really have to come with covid >> i can look at both sides that try to tack things on that are frif ro frivolous. >> yeah, i just said in general you don't want to. >> and the other thing is, when you hear from jay powell, the chairman of the fed, when you hear from him that okay, we could overdo it, but it will help us get back on track -- >> he really did say that. >> he did. >> we may do way too much, but it will do some good somewhere
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>> but i think that is the general feeling. people say that we'll get back to growth more quickly even if you overdo it. >> doesn't sound like a real hawkish -- you know, probably trump loves him now. doesn't sound like a real hawkish fed chairman to say, oh, yeah, a trillion here or there >> but when you consider what has happened -- >> it is unclear -- look, here is the conundrum being hawkish now is probably the worst time to be hawkish i think that we learned that in the financial crisis and i also think that americans look at this and say yes,blplant people need the money. and so yes, there is politics and question shouldn't we shouldn't be shocked, but i
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don't want to let the viewerer think that somehow this is okay. >> being hawkish now is the worst thing now except for the airlines and shareholders. you go from let's throw everything at it and suddenly you are andrew the capitalist. oh, my god, the private sector will be bailed out by -- right that is the one time that -- it is that baby in first class. you don't want -- >> one day we should do it, i should play jon fortt and do one hand and the other hand pchb i think that i have a better airline than most airline executives telling us why they should get this money. one day i'll have to do that
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the explanation they give the american public i think is a terrible explanation and there are better ones and there are targeted ways to do this >> there it is, on the other hand so you have the right answer but you're not telling everyone. you are a sociopath. i can argue both sides too you know guys, i'll tell you something that i don't usually get excited about mergers, but we'll talk about it in a seconded, first we'll talk about president trump, but becky, when you do this amd story, i've got some details about -- i mean amd, guys, amd, do you know how long -- i was a stockbroker in 1982 amd also ran of all-time, it goes between 10 and 1 and 10 and 1 and 10 and -- and it never really got much traction against intel. it is $100 billion company now and it is buying xilinx. amd was back to its old self of.
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it was -- guess what the low was in it 2016 it is $100 now guess what the low was in 2016 >> what? >> $1.81 >> wow >> so it was a $2 billion company, just a couple years ago -- well, i mean that is a lifetime i mean how long is 2020, like eight years ir, right? so let's call it 12 years ago. but no, really, for you years ago in 2016, it was $1.81. there we go. bec becky, go ahead. xilinx now $25 billion so that is only double whereas amd is up 50 times in value. unless my math is -- >> to give you the back story on this, amd is in advanced talks to buy its rivye xilinx. and walling street journal
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reports that the deal would be valued at more than $30 billion and come together as soon as next week. xilinx chips are used in wireless communications and data centers and the company suffered from the trump administration limits on shipments allowed to be sent to huawei. those shipments to huawei accounted for about 7% of xilinx's revenue before this and amd stock has been on a tear this year. take a look, it is up 89% with its market cap as joe mentioned now close to $100 billion. $96.9 billion there. we'll see where this goes. and that is a huge deal and joe, you're right, watching that stock over the year, watching to try to challenge intel >> yeah, it was sad. and people recommended it and i'd be like -- amd i've seen it so many times go between -- and then xilinx, you remember that from the old "squawk box" what we used to say? you know what they make, right
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field programmable gatorade. that is where one guy likes grape, one guy likes lemonade. so you are on the field, you go over to the thing -- like one of the machines at wendys it is field programmable gate-a-raise which are chips but we used that joke so many times. but this is the old altera i think altera is gone too anyway, i got really excited about this deal because amd finally made it. now they can buy a $30 billion company. used to be worth $2 billion or $3 billion so as excited as you about a merger and you're the excited one sorkin usually about merger, but you're bored with this >> you know, i feel like there are certain deals that are game changing i don't know if this is -- this may be game changing for amd
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i don't know if it reshapes the industry anymore >> at least if you had bought amd at $1.81 -- >> yes, you'd be very excited. and another deal to tell you about this morning we can decide how exciting or not this one is. the london stock exchange agreed to sell milan's borsa to eurone euronext so i don't know if that one is nearly as -- there is no great joke in that one i don't know if -- we've been joking will the lsd for a long time >> so worth twice as much. if you had told me that, i would have said no way or almost worth as much as ibm
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wouldn't have believed that. but the world keeps changing, you know, in spite of -- >> this was a big sought after deal there were a lot of people going after this and who were interested looking at the bids prelts closeclos pretty closely so decent premium on this. >> and it is a pandemic stock, amd, too, i guess, with everybody staying athome, demand for chips for everything that we do at home >> and also a china story. they are being opportunistic and taking advantage of the idea that xilinx has been hurt. >> amd's improved fortune over the last year, up 90% due to demand for that. >> sure. and you can't get computers, you know, they are backlogged still for all the schools and kids and families ordering these things so not going away anytime soon that demand. all right, folks, when we come back, we'll talk about
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promising signs for therapeutic treatments for coronavirus but do better treatment options signal a catalyst for investors to jump into the recovery stocks and later, ceo of gilead will joins how remdesivir cuts recovery time by five days stock slices. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow.
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shares of diagnostics jumping after they have clearance for a test that can distinguish between the coronavirus and the flu. it uses a nasal swab to collect samples and provides results in less than two hours. market cap just a little over $1 billion. so obviously a small cap but up about 16% today i hear that nasal -- i'm seeing too many of the videos of that i think that i'd rather just take some blood rather than what they do with -- >> really? >> it looks like that they are taking a sample of your frontal lobe do you know how painful that is? i mean doesn't that look -- >> yeah, but not all of them are
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as deep as that. i think that they have gotten better with not needing to go quite as deep for some of the swabs. but i was thinking this test came along just in the nick of time because this can distinguish between the flu and coronavirus right as we're getting into the potential for threw season and that will be really important if you can turn that around in a couple hours and know if you have the symptoms, that could keep schools from having to close and keep workplaces open too. >> and how often with that flu do you feel that little fire requi fi fever require -- you think you might and i may have just done something, like walk up some steps or something and i'm writing myself off like i got it it is like the slightest thing >> so this test is important this is a big one. being able to distinguish this as we head in to the season is pretty important i was very relieved to hear that >> i've taken my temperature 100 times. have you guys in the last
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month -- i can't break 98. >> you got to take the kids' temperature every day before you can send them to school, so we're taking temperatures multiple times a day >> have you broobroken hav have? >> 97 a lot. >> i can't break 98. >> i run hot >> i went to a doctor yesterday, not because i was ill at all, just -- and they take your temperature to go in and i jogged there thinking that there will be a problem because i was jogging. but i was still 97 so who knows >> yeah, 97 is a good number in the meantime, the coronavirus continues to dominate headlines as well as the markets. take a look at shares of regener regeneron, the company requested for emergency use approval for antibody treatment is the potential for a therapeutic a good enough signal for investors to jump into the
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broader markets and if so, what should you be buying joining us is greg branch and also sarah keterror. g greg, i know you look at this as buckets of stocks what do you put in those buck be kets and which ones would be something that you would actually dabble in right now >> right so we're talking about the general market the bucket that i'm most attracted to are stocks poised for significant growth in 2021 provided we have a vaccine and therapeutic treatments stocks that not only exhibit trichblg earnitriple digit earn growth and also attractive to the valuation. and you can get it with a healthy dividend so i'd be looking at financials which are trading at a discount to their history, i'd be looking at certain segments of consumer
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discreti discretionary, gaming foekts where the names that are referred to asia will swing from a negative this year to over $3 in profit. and the dividend of $3 or more next year. and so i do think that there are some on th some areas provide that had we'll have a vaccine in the first quarter and return to some semblance of normalcy next year. >> sarah, when i think about what to be buying, i know he you've looked at some things undervalued. we are talking about the dow less than 5% from its all-time high, new highs set by the s&p 500 and nasdaq multiple times this year, but it really doesn't tell the overall story of the markets. if you look at the faang stocks, they are up almost 40% for the year 490 of the other stock, only up by about 1%. so when you start digging through this, what is it that you like, what would you be
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attracted to and is this a buying signal now? >> the market concentration is very specific to the u.s. market and interestingly the emerging markets where some chinese enter suns internet stocks have moved on. so not just a stock specific recommendation, but we think of this as geographic globally we're interested in europe there are a number of companies listed there that have hardly moved. in fact there are many that are down double digit percentage teens year to date so for the u.s. investor sounds shockingly awful, but these stocks are very representative of what happens in the world of cyclicality when the market anticipates recession. but we're now using with vk scenes in the first half of next year and an end to this pandemic we're moving to an environment where both consumers and businesses will be much more confident and as a result, the
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market will begin to anticipat recovery and the stocks that are most geared to that are definitely in the cyclical categories >> greg, you said assuming that there is a vaccine in the first quarter of next year is that your assumption and do you think that is a reasonable assumption and when you say that, does that mean that there is a vaccine as in one is approved or is that an assumption that you believe one is at scale? because i think that the new conventional wisdom is that maybe something happens in the first or second quarter in terms of approval, but in terms of scale unfortunately i think that we're now talking about next summer and some people are even talking about next fall. >> and that is a great distinct. from the vaccine perspective,
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we'll likely be capacity constrained next year even if we start ramping up in the first quarter. so that is where the therapeutics come into play as well and as long as we have therapeutic treatments, which don't provide for long lasting immunity, but does in fact treat and decrease the symptoms, as long as we have a vaccine that is available regardless of whether or not we have the quantities necessary to bring herd immunity about, it still provides a signal to the economy, a signal to the markets that we are headed in a trajectory toward normalcy, that we are headed in a trajectory where we will no longer have 30 million people receiving some form of an employment benefit be that state or federal. so i'm not sure that we have to achieve that as much as we have to signal to the market that we're on that path >> but greg, the piece i don't understand about that, even if you announce that it is approved, if they are not
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available until let's say next summer or fall and god hope us that it happens sooner, it is not that restaurants will somehow be able to go from 50% or 25% capacity to 100% capacity you will be waiting the 6 or 8 months and some businesses will still struggle to even stay in business >> that is a very fair point but what we've noticed over the last six months is that there can be a departure between what is happening in the economy and what is happening in the market. and so while i agree that it doesn't necessarily mean that restaurants and hotels will be full capacity, it will send a very powerful signal to the market that it is safe to engage, it is safe to start looking at things again, because we're on a pathway and we're merely capacity constrained. but once we have something that works, we know we're on that pathway. >> markets are forward looking sarah, you can tell us more
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about the stocks in europe that you think will be the ones that take off >> most hard hit in the pandemic have been the aviation and ar w aerospace stocks sends shutters down the spine of most people, but think about it, you could get airbus for one of the lowest valuations we've seen in a decade at least and now airbus is the world's largest commercial aircraft manufacturer they are a duopolduopoly, so une find some other way to transport ourselves, this is a very attractive business. and also in the industrial catego category spinning off their industrial business. and if you want very deeply undervalued, look at the banks i've been talking about them on your show for at least a year. and they get cheaper and cheaper.
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trading below where they did in the globe am financial crisis but yet three times the level of capital. you get the bank for free. and maybe this isn't fun to talk about, but the undervaluation is so compelling, it just has to get better and we think that -- and i agree with gregory that therapies will be a bridge to vaccines and we have so many different technology platforms for vaccines, that increases the likelihood of one or more of them being very successful >> sarah and greg, thank you for your time. good to see you both when we come back, a setback for the nfl, more games delayed after two teams reported positive covid tests this week we'll bring you the latest and as we head to the break, take a look at the biggest pl pre-market gainers, why exelon is getting a boost
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more fallout this morning in the nfl after some positive covid tests. the league postponed the patriots/broncos game from sunday to monday after at least two more new england players tested positive this week. the patriots game last weekend was delayed by a day after quarterback cam newton tested positive and hearing about the titans game against the buffalo bills will be moved from sunday to tuesday. the title tans have had 23 posie covid tests since late
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september. >> yeah, that has been concerning supposed to be able to open their practice facility again, but then they got two more that sh slowed it down after being on a very strong start and not seeing many positive cases, this is something that has people concerned about what happens with the nfl and breaking news, the united world food program has won the 2020 nobel peace prize for its efforts to combat hunger and preventing the use of hunger as a weapon in war and last week at the 10th annual alpha conference, i spoke to mary callahan and also john vask in aen pale all about international alpha. and you can now watch the entire video of that interview. go to to see that and all the interviews from
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delivering alpha it is worth spending some time >> yes, it is. the nfl is we'd, isn't ird. sounds horrible, but we're delaying it for a day. so okay. but you're right, the nfl is different than baseball. you can't have a doubleheader. do you know how many seven inning doubleheaders there were? which made it impossible to bet bay the over and under was totally messed up. like 6 1/2 or something like that by the way, the average temperature has dropped since the mid 19th century >> i saw that. >> really interesting why. because we're gist better ojust. first, it says better hygiene. so if you are a filthy, like you have a higher temperature because your body is trying to deal with the b.o. >> i run hot, i told you that. >> you did say that. we know that >> i'm not dirty
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i shower every day >> but if you are in constant temperature all day long, it is different than back in like the 19th century where it would be really cold in your house and you would put the fire on. i mean, no now with take so many things -- standard of living is better and we're cleaner, some of us. looking at you, matt coming up, stocks to watch including media layoff and streaming news and plus we heard a lot about the coronavirus vaccine, but you know children aren't included in the crowd. everything you need to know about the covid vaccine and kids is straight ahead. and a look at yesterday's winners and losers >> that was wonderful, bravo, i love that. it was great >> pretty good >> it wasn't bad >> parts weren't very good >> could have been better. >> i didn't really like it >> it was bad, it was awful. >> boo
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good morning and welcome back u.s. equity futures are higher this is after a gain of more than 120 points yesterday for the dow and 500 points the day before that, so a pretty big run-up this week s&p 500 up by about 15 points this morning, nasdaq up by 36. and all three of the major averages have been up eight out of the last 11 sessions, close to erasing the losses in september. and shares of exelon are rising this morning too this comes after keith meister made a pitch for that stock yesterday. he said that the energy utility is relatively cheap and well positioned in its sector and he expects change at the company. that stock is up by about 2.8% this morning covid vaccine is being developed at a rapid pace, but children are not included in the
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trial. so what does that mean for the potential for a covid vaccine for kids meg tirrell is joining us now with more. >> good morning. most of these trials start at age 18 with the exception of pfizers which was extended down to age 16. we talked with experts and drug makers about what this means for a vaccine for kids parents will be waiting longer for a covid-19 vaccine for their kids than most think >> one of the worst things is just the fear of the unknown so once we take away that, i think that it could be good for everybody. >> reporter: a public school teach he were of 17 years, kara doyle had just put away her number two pencils to start a new business when covid-19 hit the u.s. with the uncertainty of the pandemic, some he decided to keep her kids home from school and teach them herself doyle is hopeful a vaccine will help with the return to normalcy, but experts like emery's dr. anderson point out that vaccines in development for covid-19 aren't yet being tested in children.
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>> the down side to that, it will delay the time line for identifying the safety and immune response and correct dose needed in children which might well vary from adults. >> reporter: drug companies say they are waiting on more data in adults before starting pediatric trials hoe d hoe d moderna says that they will start by the end of this year. and the american academy of pediatrics writing a letter to the health secretary azar and stephen hahn noting that children can and do spread the virus with more than 587,000 infections in kids in the u.s. alone. about 10 respect about of aof% f all cases. >> and there are actual deaths in children that are happening at a rate which is similar to that for influenza >> reporter: dr. anderson says there is enough data in adults now to support starting pediatric trials and he warns
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the window for including children in the trials in time to have a vaccine for back to school next year is closing. kara doyle is staying positive >> we're hopeful that it will be something that ccan help everyone, not just our family, but everybody. >> reporter: and guys, u.s. advisory group on who should get a vaccine first actually puts kids ahead of most lower risk adults, but of course that is contingent on the vaccines being proven safe and effective for kids as well >> meg, thanks we are looking forward to daniel o'day at 7:00. can i just ask you a question, meg? when covid does cause mortality, do you assume those people were on oxygen or can it cause
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mortality in people that didn't need oxygen? do you know. >> reporter: that is a good question you'd assume that they would go through the course of disease where it would be harder and harder for them to breathe so they would be put on oxygen. >> that is what i mean so the results -- this is not embargoed. it came out yesterday. >> yeah, last night. >> so the subgroup that you are talking about where death was reduced by 72% was the subgroup was people on oxygen so it just seems like it would be hard to measure a mortality benefit in people who weren't on oxygen because they didn't get sick enough to die so just seems to me if you did reduce death by 72% on people on people on oxygen, that is really good so you say you don't understand why the stock is moving. i don't understand either. because it is a subgroup but it seems like a most important subgroup where you would need
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reduction in mortality i'm teasing the big interview with o'day, but the group that doesn't get oxygen, there is nothing to reduce. how do you reduce mortality in people that aren't sick enough to die >> i'm hearing the music, but we'll ask dan o'day all of this. >> and get it straight from the mo horse's mouth. and coming up next, regulating social media. a veteran media executive is rolling out a new proposal later today and he will join us first. and reminder, that you can watch or listen to us live anytime on the cnbc app. ♪
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coming up when we return, big tech regulation back in focus after a house report accusing major companies of monopolistic behaviors tom rogers has a plan and he will explain and here is a look at shares of general electric, buy rating of $10 price target there calling it the ultimate self help vaccine leverage story in industrials. that stock getting a bump this morning. back after this. everyone wakes up every morning
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welcome back to "squawk box" this morning big tech regulation has been in focus with house democrats saying earlier this week that companies like facebook and google, they're monopolies but in the case of social media, how exactly can posts from users be controlled on the platforms. joining us right now with his plan ahead of his keynote speech today at the better business bureau's national conference, tom rogers is here, executive chairman at engine media, a cnbc contributor. tom, you've got a pretty unique and novel idea about what you want to do in terms of regulation for these companies take it away what's the view? >> thanks, andrew.
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well, the question is what do you do about social media regulation when there is no good answer and i thought there are four bad answers, the zuckerberg answer, which is we don't want to be the arbiters of truth, the not me, he's modified that a little bit in more recent days under pressure you've got the dorsey view, yes, me, which is yeah, the social media platforms ought to be those arbiters, which many people object to because it concentrates even more power in the social media platforms making huge decisions about what's right, what's wrong you have the trump view, which is don't touch me, repeal 230, you better not label or warn anything about what i post and to some extent, that's becoming the democratic view also of repealing section 230, which is what gives a liability shield to its social media platforms and then you have a justice department view, a
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proposal they have made which would effectively put government in the business of regulating speech, which is always a bad answer so my answer was. >> so what's your answer >> well, my answer was arbiters ought to be the arbiters of truth, and literally i thought the best independent way to do this was to let everything be aired but subject social media posts to airing what i call arbitration independent review and i lay out a 12-point plan for how to make that practical because you can't arbitrate everything that's on social media, and you got to be able to arbitrate really quickly, given the news cycles here to make it practical. i put this out and i got some very interesting reaction, and the most interesting reaction i got was from eric grayson, the ceo of bbd, national programs,
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better known to a lot of people as the better business bureau national office, that's what it used to be known as, and i learned something really interesting from eric, and that was that if at&t doesn't like verizon's 5g advertising claims or vice versa. you don't hear about those disputes in court. those are actually taken to the bbb and they're arbitrated and they have arbitrators who have really fast processes for turn around because a lot of digital advertising, it changes very quickly. got to be speedy, and so this is an organization that is turned to by major companies for arbitration of content disputes because they're a credible knew l tr neutral party, they have a lot of experience, and they have an army of arbitrators, 700 of them, which they can expand, and
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so all of a sudden. >> tom >> yeah. >> in terms of arbitration, though, you know, you're talking about 700 arbitrators, you might need, i can't even fathom, in the united states alone you might need 25,000, 50,000 arbitrators literally daily, and then you're going to have people appealing these arbitration rulings and who knows what the politics of the various arbitrators are. historically, the kinds of things that are being debated in those types of arbitrations are typically fact oriented as opposed to fact but there's a political spin or this or that, so what do you do about that >> well, just think of the army you would need just for joe's posts. you make a good point, and what i point out in the 12 point plan is you can't possibly try to arbitrate everything and you have to have a standard as to what gets filtered for
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purposes of a process like this and each social media company would need a board that has standards in terms of the number of readers of a post, the amount of distribution a tweet got, how many re-tweets it got. its news worthiness, you clear have to have certain things that filter this down to a practical level and you have to have a big pool of arbitrators, together they pick a third, which also has to be done very quickly. what really surprised me is how there is a business process that most didn't know about i certainly don't know about, that actually is in place to deal with high level content disputes, and all of a sudden, there became, in my mind, a real practicality to this, given the fact that there's an organization that has a similar approach to this kind of problem, and i think the social
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media company should look to this and say, it doesn't do them any good to be in the middle of these disputes, they constantly come up, they get pressured from both sides the government shouldn't be the decision maker i can't say my proposal is perfect, you have to get it down to a practical level suas you sy but the other answers are all so terribly flawed. this problem isn't going away. you have to come up with some kind of answer broadcast regulation said spectrum is very valuable. this section 230 liability shield is really valuable to the social media company, and they should pay back in some way through some kind of public interest arbitration and pay for it the way broadcasters or spectrum users have fees or auction prices for spectrum. this needs that too. >> tom, it's a fascinating idea, we appreciate you bringing it to us hopefully there are people who are watching and listening and maybe thinking about which, you know, direction they could take
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leveraging this idea we wish you luck with the speech and hope to talk to you again very very soon >> thanks, andrew, appreciate it very much. >> joe, how are those posts going, are they going to be arbitrated or what >> i was laughing at that because i've got the most boring twitter feed on the planet because i'm so scared. you do too, sorkin, you post nothing. both of us. >> i occasionally tweet. >> if i re-tweet something, i'm scared, like from a major news organization, they still get mad at me like i wrote it. okay, forget it. you know, i'll tweet about sports no, i do not and neither do you 's bore. becky goes off sometimes, she's someone to follow. anyway, coming up.
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futures higher this morning as congress makes a slow creep toward finalizing a new round of taxpayer relief. what it could mean for your money is straight ahead. final data from gilead's antiviral drug remdesivir, showing some promising signs we will speak exclusively to the company's ceo. and the president is looking to return to rallies while joe biden sets a town hall for the night that would have been the second debate. the latest on the election and what it means for the markets is
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coming up as the second hour of "squawk box" begins right now >> good morning, welcome to "squawk box" right here on cnbc. i'm andrew ross sorkin, along with becky quick and joe kernen. take a look at futures on this friday morning as questions still swirl about whether a stimulus plan is going to happen or not dow looks to open about 100 points higher, nasdaq up about 25 points. >> gilead just out with a new study on the results of its antiviral drug remdesivir, which was one of the treatments president trump received for covid-19 and one of the first therapeutics that seem to have a
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positive effect, meg, and all along, scott gottlieb and others said it's not a panacea, but it's like a single or a double to use a baseball analogy. i don't know let's talk to him. i think this is maybe a double and a half, maybe not quite a triple but this looks pretty interesting. >> a double and a half, when you get in a pickle between second and third base, let's bring in gile gilead ceo dan o'dade, these are the results from the trial, and you have a deeper look into the patient groups and who they benefitted tell us how helpful remdesivir is for covid-19, and for whom? >> sure. good morning, meg, good morning, everybody. yeah, this is really important there's been a lot of data that's been released over the past weeks, and it's important that i discriminate that this is the final results from a gold
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standard clinical trial that was run in conjunction with the nih, and importantly also it's been so called peer reviewed. it's been looked at by doctors and scientists that have nothing to do with the study to affirm the results and it's now been published in the new england journal of medicine as of yesterday, and there are really three key findings that we saw in this final study result first of all, you know, it reduced, it actually helped people recover faster. up to a week in the more severe patients and five days on average across anybody in the hospital secondly, it prevented people from getting sicker, from going on to, you know, more oxygen support, where we know the outcome is worse, and then very importantly, it reduced the number of people who died by 70%, and the largest subgroup of patients, those receivin oxygen, so this is important information for doctors, for patients that are stricken with
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this disease, and importantly as we announced a couple of weeks ago, thanks to the efforts we took in january in working with partners around the world, we now have enough supply of this medicine for patients in the united states and globally by the end of this month. >> well, dan, tell us of course about that mortality benefit talking about saving lives if you look at the trial, it showed that benefit for people on oxygen, but not sicker patients who are on ventilators, for example, does this really underscore what was expected about this drug, the earlier you give it, the more of a benefit it likely has, but this is not a rescue drug for somebody who's really in the severe critical stages of disease? >> yeah, it's important to note that the investigators of this trial felt that this mortality benefit was very meaningful for patients that are earlier in their hospital stay, that it helped reduce the number of patients that died, if it was given early. 70% is of course a very large
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figure and to your point, meg, when we designed this study back in february, remember, we knew frankly very little about the course of the disease, and also exactly how remdesivir would work in that disease since then we have understood that, you know, mortality or the risk of dying differs greatly, whether you're very early in the stage of the disease or late in the stage of the disease also, this is a medicine that works by reducing the viral replication in the body, which is important earlier in the disease, and earlier in your hospital stay, which is why it has this greatest effect there later in your hospital stay, of course you have the second effect of this terrible virus, which is the body's immune system overreacts, produces inflammation and that causes risks for patients, including an increased risk of death as well, and so we're studying in the later stage of patients remdesivir, as a standard of care as a backbone therapy,
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combined with other anti-inflammatory medicines that may help us improve the outcomes for patients later in the disease, but what's really important from this study is that the earlier you treat the better in the hospital and you can prevent people from ever even going on to those stages of the disease where the risk of dying is very high >> that's much clearer now, dan, thank you. i'm trying to get a feel for the sub groups that we're talking about. so you talked about the subgroup that needs oxygen, and there's another subgroup that moves on to need a ventilator, which is the worst cases. what's the subgroup that doesn't need an oxygen or a ventilator how big is that as a percentage of covid patients? >> so, i mean, it's a smaller group of patients. in the study that was just released around 85% of the patients enrolled in this study, and that largely reflects the hospitalization of patients
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needed some form of oxygen, so if you like, joe, the remaining patients are the ones that come into the hospital, that may not need oxygen right away, either resolve their symptoms and go home or progress on to an oxygen therapy, so it's a large group of patients and of the 85% -- >> i'm sorry, go ahead and then i'll follow up. >> of the 85%, 40% are on the early stages of oxygen therapy, low flow oxygen, and this is where we saw the greatest benefits of remdesivir, and really kind of the sweet spot of the drug's effects >> but this is hospitalized patients mostly, too, so the asymptomatic people that don't go into the hospital, you're not even measuring them where the mortality rate is much lower because they don't even need hospitalization, so you've got most people that go to the hospital do need oxygen, and they do benefit from this with a 70% mortality rate reduction but it doesn't help people that are
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really sick already on the ventilators. but i'm trying to figure out how you can get a statistically significant, with 70% of the people on oxygen, or with 70% mortality lower with people on oxygen, i was wondering why you can't get a statistically significant mortality benefit with the whole group so there's that many on the ventilator that aren't helped that you can't show any statistically significant mortality reduction? >> yeah, i mean, i think, first of all, joe, your point is really important this is all hospitalized patients remdesivir is given by iv in the hospital, and although we are working now at looking at this medicine ino out patient, both b iv and inhalation, this study is really all about hospitalized patients so to your point, i mean, it's important to note that there was a trend towards a mortality improvement across the entirety of the patient population. where we saw this largest benefit was in the early stages
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of oxygen therapy, and that's where it became very statistically significant. so there was, you know, really a large breadth of patients in this study, and of course we have learned a lot about the disease and how remdesivir works. it's important to note that you want to stop the viral replication early, because that viral replication is what causes patients to be sick in the early stages of the disease where the body's immune system, the inflammatory prose is taking over and causing that illness. i think we'll see, joe, to your point, as you look at remdesivir, and there are many studies going on right now where if patients are at late stage, on that mechanical ventilation, and provided remdesivir and other medicines that handle the anti-inflammatory aspects of the disease, i expect we'll get even greater results there. >> let me ask you to sort of
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look out 12 months from now in a much broader context there's lots of obviously questions about whether we're going to get a vaccine, whether the vaccine is going to be successful, but clearly therapeutics are going to play a huge role in this. there are some people that believe therapeutics may play a bigger role than vaccines, especially if people don't take the vaccines and create the equivalent of a herd immunity. what do you think of that? do you think that there's -- and what does that cocktail look like in your mind 12 months from now? do you think everybody is going to be taking the cocktail of remdesivir and regeneron or the eli lilly product? what does this look like to you down the road so we understand >> yeah, absolutely. thanks, andrew so i mean, first of all, you know, i can just say i'm really impressed by whole the research based biotech and pharma industry is coming together here, and we're working against the virus, and working collaboratively against the virus to help patients
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to your point, vaccines of course are crucially important, but we know, even with influenza that convenience are never 100% protective and we also know that the entire population doesn't take the vaccines and so you will always have a role for therapeutics and treatment, even in a post vaccine role i think that's the first point i would make the second point i would make is that there are, you know, two ways to look at this there are ways to control the replication of the virus and to reduce that. and then there are the inflammatory virus in the late stage diseases let's talk at the viral replication. remdesivir is a medicine that stops the virus from replicating. it stops it in its tracks, whereas the antibodies which we have heard promising early data on, doesn't stop the virus from replicating. it attaches to viruses that exist in the body and neutralizes it these mechanisms could be complimentary, and we will be studying those as a way to even
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further suppress and eliminate the virus in the body, and then in later stages, he's using these antivirals in combination with anti-inflammatory medicines that help the other aspects of this disease so i see a treatment paradigm where of course we have vaccines but then we have different types of therapeutic combinations depending on where you are in the course of your disease, in the hospital or out of the hospital we're going to be a lot smarter. there are literally hundreds of trials going on right now, close to 40 with remdesivir as backbone, and in six months, twelve months, we're going to be able to fine tune this therapeutic paradigm and vaccine paradigm to the best benefit of patients. >> daniel, my ears perked up when you said that you will be able to manufacture enough for all of the united states for their needs here because that's been one of the questions when you start looking at regeneron, maybe have 300,000 doses by the end of the year, that's not going to be enough to treat it
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how many applications are you able to ramp up to, and does that mean it won't have to be chosen who gets this treatment, who gets the remdesivir, anybody who is sick and in the hospital can have access to it? >> that's right, becky, and it's really attributed to the scientists and colleagues at gilead and the partnership we created. remember, we started this back in january, and at the time, this is a very complicated chemical process that took at the time 12 months because there's lots of steps and not all of them can be done, you know, together they have to be done in sequence, so the good news is our scientists found a way to bring that down to six months. we invested immediately into a supply chain that allowed us frankly just recently in september and now in october to have sufficient supply to meet the demands of the united states, yes, any hospitalized patients, and we now have a distribution system to make sure it gets to patients in the hospitals fast and also by the end of this
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month, and we just announced a supply agreement with the european union, for instance, where we'll supply up to half a million treatment courses over the next six months. we'll also be able to satisfy global demand of this product by the end of this month, by the end of octoberment this this is really important these results are meaningful they'll definitely help patients around the world who have the disfortune of entering into the hospital to get better, and i'm really pleased to say that we have ample supply, and it's going to give thanks to the colleagues at gilead for ramping this up. >> dan, i want to follow up on andrew's question about the outlook for the next six to 12 months one of the things you're work on is an inhaled form of remdesivir, which could potentially be given to folks before they get sick enough to go into the hospital tell us the timing on that, when you expect to have data, when it could be available, and you feel
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like maybe you got exposed to covid, you get a test, you test positive, your doctor prescribes an inhaler of remdesivir, you go to the pharmacy, and get it and stay home and take it. is that what this looks like >> essentially mega, yes, there are two programs we have underway, two clinical studies that we're recruiting patients for. one is, as you know, as i said before, bringing the current form of remdesivir, which is given through an iv infusion out into the outpatient setting. and have that done through a home infusion center or skilled, you know, health care facility and so we're recruiting patients right now for that, and we should have data on that in the early part of next year. the second one is the concept of bringing remdesivir into a nebulizer, into an inhaled form, that, as we've talked about before, meg, to do a new formulation of a medicine
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normally takes multiple years. the scientists at gilead have worked fast to get into early stage studies, as we look at what dose is most effective and we expect to have the early stan stages of some of that information available to us by the early part of next year. that will then have to go into later stage confirming trials. the concept is you get diagnosed, you're able to take at home an inhaled version of the medicine that would prevent you from ever having to go into the hospital and so, and again, this could potentially be used in combination with other agents that allow us to get a greater effect because really what you want to do of course is prevent people from going to the hospital, and if they get to the hospital stage, treat them early so they can get out faster you know, this seven days of recovery time for severe patients out of the hospital has a lot of impacts of course it has impacts upon the patients and their families getting him out of the hospital,
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but it also prevents people from getting sicker in the hospital secondary infections, moving on to greater needs for ventilation. these things, you know, treating early, keeping people out of the health care system, not only helps the patient, it helps the health care system >> yeah, dan, getting people better faster, that's the goal thank you so much for being with us this morning. we really appreciate it. >> thanks for having me. >> andrew? >> meg, thanks for that. we've go t a lot more coming up on "squawk box," a number of buzz stories, coin base, the problems facing companies. and with theaters shut down, the movies and the move to bring movies straight to streaming services before we head to that break, though, let's get a quick check on the markets right now looking at green arrows across the board with the dow up 116 points, s&p 500 up autbo 14. squawk returns after this.
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the economic effects of the pandemic continue to go impact high powered entertainment divisions. hbo parent warner media confirming more cost costs are on the horizon joining us now sarah fisher is here, axios media reporter ed lee, and cnbc contributor, good morning to both of you i want to get straight to the issue of the movies, really more than anything. let's talk about what's happening because you have disney deciding effectively they're going to start doing now, is this thesecond one pixar soul, the latest film to skip theaters and go straight to streaming, right to disney plus nation can they make the economics of this work? >> yeah, i mean, it's going to be different from what you saw in mulan mulan, they charged people $30 to get that on disney plus this is coming out for free. they didn't release numbers for
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mulan, but neigh sayers say because they're to the talking about, it obviously didn't do as well as in theaters. i think the key here for disney is how does this help us bring in new disney plus subscriber, and i think the question is going to be around the christmas holiday time, a movie that's catered to families, can this get people to sign up? i think that it's not going to be the full stop strategy for disney moving forward. they take up about 40% of the box office, but you're going to see them try to experiment a little bit more with releasing something straight to disney plus >> ed, you look at an effort like this, though, how many new subscribers do they have to get to make the math work on a film like that? >> so, i mean, i think on an individual film-to-film basis, it's hard to do the math ultimately they're looking at long tail revenue. that's how streaming economics
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works, may not make it fully back, six months out, 12 months out, it's worth the money and i'm profiting pretty well. i think sara is right, in terms of "mulan" figures, the fact they didn't give us information tells us they probably didn't do as well as they hoped, at least in terms of a theatrical frame work. >> but you're looking for half a million new subscribers, 250,000 subscribers? >> on an individual film basis >> in this case, they would have otherwise put this in theaters and would have made how much money? >> theaters were closed, now at 25% or some shut down, that's the hard math on their end you're asking if theaters had been fully functional, what should they have gotten. >> yeah. >> exactly look, i think in terms of this new movie "soul," it's a pixar
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film, a family film, a holiday hit. they have to rethink the economics for how many more as you said this particular film versus over a period of time as opposed to what it did in weekend one and two. >> fair enough i want to talk to you about hbo and warner media, you know, there's going to be more cost cut cutting and restructuring at the company. what do you think about the soul of the culture of the company, is it a different company today, and does it matter >> it's definitely a different company today. anytime you're trying to nerjme an entertainment brand, you're going to have to make concessions to that creative culture. why it matters here, if you're going to be cutting people who are core to the hbo culture, the question is the programming going to be as good, we have seen hits continue to come out of hbo, "succession," et cetera, so so far they have been able to drum up hits that are good for
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hbo max. the cuts they're making to cable, you know they're going to be slashing tnt, tbs, a lot of those channels, they still do good work in terms of original production, and those shows help to fulfill hbo max it's not just high profile shows, it's a few lesser shows to fill up the library, so you have to kind of think about the economics here does that mean hbo max is going to have to license more programming if they're not producing their own? >> and ed, final topic for you, i don't know if you saw this, i'm sure you did, this digital currency company, coin base, brian armstrong, the ceo makesing lots making lots of headlines, saying he doesn't want to take political stances, doesn't want to get involved in social issues and after he said that, look, if you want to leave, go ahead and leave. we'll pay you for a couple of months worth of work so you can leave. roughly 5% of the work force read the memo and took the exit
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package. what does that say about the future of coinbase, and what does it say about silicon valley >> i think what's interesting about the ceo of coinbase, he has a different background than a typical silicon valley background you think it's interesting this is happening at this moment we talked about milton, and it's a clarifying decree for companies, don't worry about society, if you worry about profit, it will ultimately take care of itself, and it seemed like this blog post was sort of hitting on that idea here's the thing, though, when he sort of made that announcement, well, you know what, if you don't like it here fine, we'll give you an exit i think the opposite happening, he's signaling, there's a certain type of person that fits better here politically maybe, and that is the danger of this kind of push, right, where you're not selecting employees, not just on their ability or background but maybe even how they think it's a very slippery road.
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i think that is, on the margins of this, that's what it seems like the direction it's taking a lot of silicon valley companies, there is an ideology at play, and when i say ideology, i mean the idea that i'm trying to make the world better how do you define better, and ta that's where we get into sticky issues. >> it's going to be interesting, only 5% but depends which of the 5% if those are your top engineers, that's different than if these are people that perhaps were, you know, elsewhere the in organization nonetheless. >> and how easy and hard is it to find another job. >> exactly >> sara and ed thank you for joining us, always great to get through the news with you. becky. >> thanks, andrew. when we come back, the election and your money with less than four weeks to go, what should you be watching in the markets now. and dr. scott gottlieb joins us with reaction to the news from gilliard, the stock is up
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after news that remdesivir shortened hospital time for five to ten days for hospital patients and reduced mortality significantly in pieatnts requiring low flow action. "squawk box" will be right back. when i was in high school, this was the theater i came to quite often. ♪ the support we've had over the last few months has been amazing. i have a soft spot for local places. it's not just a work environment. everyone here is family. gonna go ahead and support him, get my hair cut, leave a big tip. if we focus on our local communities, we can find a way to get through this together. thank you. ♪ if you are ready to open your heart and your home, check us out. get out and about and support our local community.
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futures this morning are indicated up again and they have been adding to their gains, although still modest, but triple digits up 140. we were up yesterday, up the day before, 28,000 now on the dow. investors searching for clarity, though, on a possible skinny stimulus package we use that term a lot skinny margaritas, skinny this, skinny that. i'm not headed that way, i don't know about you we are now less than four weeks away from the presidential election, so how will this impact wall street joining us, jason trenner, we certainly say stimulus a lot, and we see it in all the news articles written about the market action over the past week, jason, and it is
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important, but there's a lot of things going on. there was the regeneron news, the president, there's a lot of things swirling around we had jobless claims. we've got a gdp number coming. what is really the market keying off of now, i mean, powell, too. we don't want to leave him out saying that hey, we could overshoot, but we'll use the money somewhere. it just, why is the market trending higher? >> yeah, joe, in my opinion, there's been obviously almost endless talk about the stimulus, and it seems to me that almost regardless of what the news is that the market goes higher, so i'm largely of the view that the stimulus isn't really the issue, and i think my own opinion is that chairman powell's speech earlier in the week, which largely got the fed into the political game, and also largely
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encouraged the fiscal side of the government, really, which is not something the feds should be doing, in my opinion, to me, that's the biggest story of the week for the markets now, you're also seeing, obviously, a rotation into some of the cyclical names, and value names, so i also think there could be a certain part of this, which is the idea that generalized lock downs are too blunt a tool, and that from now on, we're going to have more localized lock downs if there's a problem. i think that's also very very important, so i mean, it's the combination of those things. i also think just the fact that we're going to have some resolution, lord willing, of this election. to me, those are the things that are driving the market i think the stimulus talks, it's hard to ascribe that to be a major driver of the markets, given what we have seen, really, not just over the last two weeks but over the last couple of months >> the election is coming up obviously no matter what we do,
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and i don't know how quickly we find out either. there's been a lot written about stock market action before an election, and with an incumbent, if the market is positive, it's usually good for the market, but with covid, and everything else, and stimulus, and more, you know, potentially even more stimulus with a, even if there was what some people call a blue wave i'm not sure the market is telling us anything right now. do you think it is, and in september it was not necessarily a positive for the incumbent it's better now. >> escrojoe, you're absolutely t the metrics we normally look at, market based metrics that we normally look like give the president a slight edge, about 51%. on the other hand, we have portfolios that are designed for a democratic win or a joe biden win, vice president biden win, or a president trump reelection,
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and those are giving a 70% stance of vice president biden winning, so there's something, in terms of just the internals of the market of the industry groups, like green energy, and the things that are doing well generally speaking, the direction of the market, personal income, and also gdp are pretty good indicators of whether the incumbent gets reelected, and all of those things are in the president's favor. obviously this is a pretty different year, and there are a lot of other things going on my own opinion, i know there's been another narrative going around that a blue wave would be better for the market because you get more stimulus. i think the only problem i have with that is that under the biden plan there would be a very
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significant tax increases on income corporate profits, estate taxes, capital gains, dividend, and it's hard to see that, frankly from my point of view of being particularly positive for either corporate profits or for the market as a whole. >> and you didn't even mention regulation >> right >> which, you know, again, i ca tell you, you do these things in business school, the discounted cash flow analysis, i'm buying a piece of equipment or hiring new people, and you know, ultimately what i found especially when we were much smaller is that, you know, so much of those decisions were made on how we were feeling that day and just confidence, business confidence is one of those things, it's hard to measure it's elusive, but it is absolutely critical, particularly for small businesses who generally tend to be under capitalized and the
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regulatory environment, i think, obviously under vice president biden would be very different. >> well, i'll tell you, and then you got all the other stuff too, supreme court packing and 56 states, and no filibuster, and get rid of the electoral college. >> hard to feel good about that, in my opinion. hard to feel good about it. >> don't worry about any of that anyway, we got all of these worries and we got, you know, covid is not conquered yet, and the market just keeps going up and up and up, and it's got to be something maybe it has to do with chairman powell, and everything else. it's unbelievable. it's crazy where we are. it's crazy >> anyway, forward and backward with the last name, thank you. >> got it. >> good to see you, joe. >> word na, that means nothing. >> okay. i was going to say, by the way, the alternative view of this is
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that vice president is ging to - into -gog win, and there are investors who think that will be good for stimulus measures and that will be good for the market this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity. but i've never been afraid of hard work. i waited tables to help my family make ends meet. i dreamed of going to college and the kpmg future leaders program helped me get there.
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chip maker, in advanced talks reportedly to buy xilinx and come back quite a bit, down four or five points earlier. the "wall street journal" reports it could be valued at $35 billion, xilinx chips are used in wireless communications and data centers amd stock has been on a tear, not just this year, it's up 89% this year. and a market cap above $100 billion, but it's from a couple of years ago, it was below $2 below $2 a share, and now all the way up at 85 andrew. >> we have a little bit more chip news to tell viewers, nxp semiconductors raising the outlook for the end of the quarter, material improvement in demand across all products with particular strength in the automotive and mobile segments shares higher in the premarket
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on that news and ene tuwh wrern, a lot more dr. scott gottlieb is with us. you don't want to miss it. back after this. before we talk about tax-smart investing, what's new? -audrey's expecting... -twins! ♪ we'd be closer to the twins. change in plans.
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at fidelity, a change in plans is always part of the plan.
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welcome back, everybody. gilead releasing results on its antiviral drug remdesivir, which was one of the treatments that president trump received for covid-19 earlier this morning on "squawk box," we spoke with gilead ceo daniel o'day >> first of all, you know, it
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reduced, you know, it actually helped people recover faster up to a week in the more severe patients and five days on average across anybody in the hospital secondly, it prevented people from getting sicker, from going on to, you know, more oxygen support where we know the outcome is worse and then very importantly, it reduced the number of people who died by 70% in the largest subgroup of patients, those receiving oxygen, so this is important information for doctors, for patients that are stricken with this deciisease, importantly as we announced a couple of weeks ago, thanks to the efforts we took in january and working with partners around the world, we have enough supply of this medicine for patients in the united states and globally by the end of this month >> joining us now is dr. scott gottlieb, of course you know he is the former head of the fda.
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he is also a cnbc contributor, and he serves on the boards of both alumina and pfizer. he has a new op-ed in the "wall street journal" today titled the trump treatment for covid is coming soon. and dr. gottlieb, it's great to see you. >> thanks a lot. thanks for having me >> let's talk a little bit about this i have to say, after listening to daniel o'day this morning, i felt pretty good about prospects thinking some of these treatments could be the bridge to when we get a vaccine, and i was impressed by what he said about these results. what do you think? >> i think the results were strong, they confirm what we knew, which is remdesivir is active in this disease, it's not a home run drug. it's an active antiviral, it's meaningful, combined with the antibody drugs which should be coming on the market soon, based on the data we have seen, this is a pretty effective treatment regimen in advance of a vaccine. the challenge is we don't have enough doses of the antibody based drugs. we foresaw the problem, we talked about it many times on the show
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we'll have about a million doses between now and the end of the year regeneron could have 300,000 doses between now and the end of the year my estimate is we would need 12,000 to 15,000 doses a day just to take care of the population over the age of 65 and that assumes the epidemic doesn't get good that doesn't bake in the people at high risk of bad outcomes who want to have access to the drug. we're going to be supply constrained unfortunately, between now and the end of the year. >> that's with the anti body cocktails you were talking about. i was impressed when remdesivir, actually, they'rie going to hav dosage amounts they're going to have enough dosage for anybody who needs it in the united states and throughout the world >> they did a good job ramping up their supply. this was a very difficult product to make and they managed to innovate the manufacturing process. i think when they started, it was a nine month process to make this drug, so they invested
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heavily in manufacturing, partnering with other companies. it's quite an achievement. i think the combination of remdesivir with the antibody drugs which should be synergistic, we have to study that we don't have research on that there's no reason to believe it shouldn't be sin ir jynergistic that combination should be effective. we should continue to see mortality come down with covid in the hospital, and the hospitalized patients with the combination of these two drugs as they make their way into the marketplace. people are getting remdesivir right now, but the antibodies, i think, will provide another important therapeutic option, and with the antibodies, we're not going to have supply to use them this way. it could effective as a prof , s what we have seen with antibody drugs in a similar fashion with the ebola virus. >> doctor, i wanted to get your
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reaction to i imagine the videos you have now seen the president make, two videos in particular where he's touted regeneron and the eli lilly product, and his own experience as a doctor, as former head of the fda, what was your reaction as you watched that. >> that was the foundation of the op-ed i wrote today which is, what i think we shouldn't see here is people shoot at these drugs for political reasons. you know, these drugs based on the data we have seen publicly probably meet the bar for an emergency use authorization. they're different than a vaccine. a vaccine, you're going to have a much higher threshold for safety with these antibody based drugs, these are human antibodies, the th theoretical basis for why they should work and be safe, because we have done this many times before so you could take a little bit more risk in terms of authorizing and making them available on a data package that
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isn't as robust as what you would require for a vaccine. a vaccine should be and will be a very different hurdle. i hope that people don't now shoot at these drugs, maybe we shouldn't eua them because it's sort of a political veneer over access to this, and there's some jawboning around it happening p before the election. we should look at the scientific merits and do the right thing, which is probably to issue an emergency use authorization for one or both ofthese drugs. the lily drug has a stronger data package, but regeneron has more data soon, it's going to show good results based on what we have seen so far. >> you say that this is what we should do, go ahead and give the emergency use authorization, do you think that's what we will do >> i think so. i think that the lily drug will get an eua they have data on outcomes that looked impressive. regeneron should have that data, too, soon, so i think one or
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both will get an emergency use authorization, and we have been talking about these antibody based drugs, probably back in april, and been saying that they could be an effective bridge to a vaccine. things are playing out as they should have and as we anticipated with respect to the therapeutic options. they're coming on the market in the time frame that was prescribed six, seven months ago. and a lot of people, including me, but a lot of people were bullish that these could be a bridge to a vaccine, and being an important therapeutic advance as we enter the fall i think that's going to hold true i would expect one or both of these drugs to get an emergency use authorization sometime until the next two to four weeks i think the data supports that, and i think we should just look past the political season and the political rhetoric and do the right thing around the science and the public health need. >> we'll never be able to do that, scott, obviously, but you saw president trump. you know, he's 74 and his bmi, i don't know what it is, but he was in the high risk group, you
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would agree, in terms of obesity. a week later he's standing on the lawn looking pretty healthy. i don't know whether it was regeneron or remdesivir or dexamethasone or whatever it was, but do you think he is fine now? and if he is, is it touting, i mean, is that the right word to use? he should be surprised that he's doing so well, should he not, and we should all welcome that, or not >> i don't know the president's condition. he's doing well, and certainly reason to be concerned about how he was doing and how he still is doing, but he certainly seems to be recovering and had an accelerated decline based on what we know at the early outset of the disease, so something he helped him turn around i wouldn't be surprised if it was one or more of these therapeutics he had the kitchen sink thrown at him i don't like to draw conclusions
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from studies, but the antibody gave him back an intact immune system the remdesivir is an active drug, and i think the fact that they gave them the antibody gave more confidence about pushing the steroids early typically you wouldn't push the steroids because you wouldn't want to interfere with the immune response. in this case, they gave him an intact immune system by infusing that antibody, they were probably more willing to give the steroids, to reduce the effects of the inflammatory disease. they took risks, these were novel drugs but i think they made smart decisions how they used them, and frankly we should be studying these drugs in combination for other patient. >> doesn't sound like you think he should necessarily be in the oval office. you don't know whether he's shedding virus, and when will he know that he's non-contagious, for example. >> based on sort of classic cdc
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guidance, he's going to be -- he might be contagious for ten days after the symptom on set once symptoms have resolved. given the fact he had steroids, he may be longer than that the only way to know whether he's contagious is to get virus for swab and culture and see if it grows he's going to be shedding virus for a long time, but probably shedding dead virus like the lot of other patients. patients continue to spread virus. the only way to know for sure whether it's live virus is to culture and see if it grows. they're not going to do that if he continues to recover and he's symptom free. >> why not >> well, they could. you're right, they could given who he is, but i doubt they'll do that. but the reality is he should be no longer contagious by this weekend or a little bit after if he's no longer symptomatic, and
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they say he's no longer symptomatic. he shouldn't be contagious after the weekend. the confounding factor is the steroid because they should cause you to shed virus a little longer. >> dr. gottlieb, thanks for talking to us and we'll talk to you again next week. >> thanks a lot. ok, just keep coloring there...
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good morning, stock futures pointing to gains right now. the s&p now on track for its biggest weekly gain since august it's time to think outside of equities for returns he's going to join us live. stimulus stall, after a week of mixed messages on covid relief talks, we're going to take you live to washington on the latest of what could get done before the election. and senator ted cruz joins us with his take that interview minutes away. the final hour of "squawk box" begins right now >> good morning, and welcome back to "squawk box" here on
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cnbc happy friday i know we forgot about that, becky, that it's friday. >> i'm joe kernen. along with becky quick, and andrew ross sorkin u.s. equities, the futures this morning, up 118. you can see on the dow, the nasdaq indicated up almost 15, the s&p 500 up about 15, and it would end on a pretty solid note on what has been a pretty good week, and we're watching the dow transport, up 4%, just this week and trading at an all time high. when transports go the other way, we worry when it goes that way, it makes you wonder globally about just commerce and the economy, and everything else so all time highs probably a positive sign. we're eventually going to have crazy gdp number which is going to look as nutso as the last one. down 30, up 30, and that's all what we're getting used to this year, 2020, a crazy year, kind of winding down. some day it will.
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>> we hope we hope. >> we hope we make it. >> end of the year is not here yet. >> bite your tongue, knock on wood house speaker, nancy pelosi, and treasury secretary steven mnuchin spoke yesterday about the prospect of striking a broad coronavirus stimulus deal after the president pulled out of talks earlier this week and called for a stand alone bill. el ylan mui joins us. >> reporter: the white house telling us trump is willing to do something bigger beyond yjust ppe, direct checks and the airlines i can confirm that trump did speak with the top republican in the house, kevin mccarthy. the gop is trying to figure out exactly where its members stand. two prominent republican senators came out yesterday opposing any additional aid for the airlines, and there's also growing concern about how much this is all going to cost. >> of course i think we ought to
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act again, but when you've got a debt the size of your economy for the first time since world war ii, it's not an argument for extravaga extravagant unrelated spending. >> reporter: meanwhile, the treasury secretary told house speaker nancy pelosi yesterday that the president is interested in reaching an imminent agreement on a comprehensive deal mnuchin also spoke with other top democrats in ways to help small businesses, both sides are trying to figure out exactly how big of a deal the president is willing to make. back over to you >> all right ylan, thank you, i know you have your ifpn, lets hear what senator cruz on this for more, let's bring in senator ted cruz of texas, his new book is entitled one vote away, how a single supreme court seat can change history senator cruz, thank you for
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joining us this morning. and you heard ylan talking about the stimulus what is the current state? can you add anything that ylan didn't say that you know as far as where the talks stand right now? >> well, ylan is right that the president wants to make a deal i spoke with him yesterday, and he's eager to make a deal. the problem is pelosi and schumer don't want a deal. it's clear, nancy pelosi and chuck schumer have made a political, maximizing gain helps them politically, more people who are alone and broke and unemployed and pissed off, the better it is for joe biden i don't believe pelosi is going to agree to anything before the election i think, let's take for example, airline layoffs, we have seen tens of thousands of airline layoffs, it would be a simple matter to act to get
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overwhelming bipartisan consensus to stop the layoffs, but pelosi and schumer don't want to stop the layoffs the reasoning is simple. tens of thousands of people that got a pink slip believe they will be angry when they vote in november, and if they're angry, pelosi and schumer are gambling they'll say throw the bums out, let's vote for biden that's unfortunately their negotiating position. >> it's all about election in your view. i have seen some of your comments, and i was looking at the drudgington post, about mother drudge i call it? i read what it said, it said that ted cruz is terrified about the election, and i read what you actually said, and you said at this point, the president could win and both houses could win. we could lose the senate you said all these different things but that's obviously not the way i saw it portrayed but what do you think?
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i mean, the polls are bad. the betting sites are bad, 67/35 for biden. a lot of swing states seem like they're double digit differences with vice president biden ahead, where do you stand are you worried? >> i am worried. what i said is that it's volatile, it's highly volatile, to put it in market terms, the delta in this election is enormous that i think there are outcomes if people are going back to work, optimistic, positive about future, we could see a fantastic election the president getting reelected with a big margin, republicans winning both houses of congress. i think that is a real possibility. but i also think if on election day people are angry and they have given up hope and are depressed which is what pelosi and schumer want it to be, we
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could lose the white house and both houses of congress. that it could be a blood bath of watergate proportions, and i don't recall an election in my lifetime where the delta, the spread between those two was as dramatic as it is, and it makes this a very uncertain election >> becky senator, you do have more than 5 million people who have already voted. you have to throw the early voting as an additional factor, an unknown into this just a question for you, when you spoke to the president yesterday, were you talking to him to find out if he would support a bigger bill, if he worked out something with the democrats in the house, if that went to the senate >> well, he called me yesterday morning, i had called him just to see how he was feeling. that was the principle reason of the first call when he got back from the white house, and he said he was feeling much better and sounded strong and energized and called me yesterday, and when we talked a bit, we talked about several things, we talked
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about the debate between pence and kamala harris, and unsurprisingly both of us agreed that mike pence did a very good job, and it was a good contrast on ideas we talked some about the upcoming debate, and i told him i agreed with him that i thought the idea of a virtual debate with biden was ridiculous, that that was an idea stacked to really benefit biden by letting him hide in his basement and not have any scrutiny. the debate actually features the two people who were supposed to be debating in the same room and we talked about a deal he made clear he was leaning in saying he wants a deal he wants to get it done. and i didn't argue with him on that but as i said, i don't think pelosi and schumer are interested in dancing. i think he's a willing dance partner. i don't think they have even the slightest interest in seeing anything pass between now and election day
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>> he didn't put any pressure on he or did he, the idea that he gets something done, held like to see a deal done and get it through the senate too. >> he expressed his views. it was not a lobbying call it was a call just to talk about -- and he and i talk proe probably once a week that's not an uncommon discussion he talked about, he congratulated me on the book the book, one vote away on the supreme court rose to become the number one best seller in the country on amazon, and he was congratulating me on that. it's been nice that people are interested in learning more about what's really going on at the supreme court, and why those stakes matter so much, and the book tells an inside story of what's going on at the court from the perspective of having litigated many of the big landmark cases at the court, and so it's been selling really well, and i think people are interested in really understanding the institution and understanding the issues at
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the heart of the judge barrett confirmation >> senator, take your political hat off for a second, given that we're a business network, i have a question if president trump were the president of a publicly traded company today in the midst of a crisis, clearly that's the pandemic that we're living through, how would you measure the success or failure of that executive during this pandemic, including what's taken place over the past week and the hot bed of coronavirus that has happened inside the headquarters, if you will, of this company >> well, i think in any crisis, there are going to be challenges, and there are going to be things, hopefully, that are done well. i think in many respects, the administration's record has been quite strong this has been a global disaster. it's been a pandemic that has cost lives across the planet i think one of the strongest
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decisions the president made was a decision he made very early on on january 31st, when he halted air travel into and out of china. i had previously called on him to do exactly that, and when he did it, it was very controversial. joe biden blasted it as hysterical and xenophobic, and then subsequently when we saw the numbers spike in europe and the president did a second ban on travel to and from europe, that again wasn't an easy decision he was criticized for that in the senate where cdc experts told us that those decisions saved lives in the united states, and they slowed the spread of the virus. i also think the administration did a very good job on the supply chain for ventilators you know, early on, we were looking with horror, for example, at what played out in italy where you saw their socialized medicine system unable to keep up with the
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volume of people who were sick and they ran out of ventilators, and the administration leaned in, used the defense production act, which i had encouraged them to do, and we did not run out of ventilators anywhere in the country. we had a more than ample supply. so those were good, testing early on was not good. so i think if you look at in any crisis, there are lessons to be learned, on both sides of this crisis >> i thought you wanted to follow up, i heard you talking the entire time. you didn't have a follow up, andrew >> i heard him he gave lots of pros, he gave one con. i imagine he could probably give some more cons, but we'll let you continue on. >> what is the -- how are you feeling, senator, you're quarantined, are you not >> i am quarantined, so i am strong and healthy
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i tested negative, so i'm not sick i don't have the virus although i did spend some time with mike lee, my colleague and friend who did get sick, and so the doctor advised that i quarantine, so i have been sitting here in my d.c. apartment all alone, heidi and the girls are back in texas, which has me thoroughly grumpy to have gone a couple of weeks without seeing my family, but these are the times in which we live and so i wear, i guess you'd call it pandemic casual, which is sports coat on the top, and shorts and slippers on the bottom, which i'm not going to show you. >> what are the probabilities that amy coney barrett is confirmed before the election? >> i think very high i believe we have the votes. we're going to start the hearings next week i fully expect senate democrats
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to do everything they can to try to turn it into a political circus they were already incredibly energized, angry, filled with hatred for the president that was before the supreme court vacancy, and once the supreme court vacancy happened to borrow a line from spinal tap, i think now it goes to 11 i mean, they're just, they're beyond maximum anger that being said, i don't think they have the votes to do anything to stop the confirmation, and i think the president made the right decision in selecting judge barrett. i think in nominating a strong principled constitutionalist, the president was honoring the commitment that me made to the voters and i think when the senate confirms judge barrett to the court which i believe we will do by the end of the month before election day, i think the republican majority will be honoring the promises that we made to the voters.
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>> senator cruz, thanks. good luck with the book. a family member who's reading it that wants to figure out all about it she could use an autographed copy, if you have time, not doing anything, just sitting there in quarantine. >> i'd be happy to get it to you, joe, and you can get at book amazon, barnes & noble, anywhere books are sold. >> already got it. she already has it funny, she's a supreme court expert now she's an expert. they're quick learners when they're 20 anyway, thank you, senator cruz. you'll see andrew, god, they know a lot pretty amazing anyway >> thanks, joe. coming up, when we return, the pandemic sparking some big changes for this week's nfl slate as well as major movie releases and tech companies work from home plans. we'll talk about it all next, as we head to a break here are shares of general electric, goldman reinstating,
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with a buy rating and $10 price target, calling it the ultimate self-help vaccine. those are getting a bump this morning. stay tuned we're watching cnbc. ♪
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welcome back to "squawk box," everybody. we've begun watching the futur s and they have been higher all morning long after two days of gains. yesterday dow was up by more than 120 points, day before that, up by 500 points, with the s&p futures up by 16, the nasdaq up by 42 new this morning, microsoft is reportedly planning to let some employees work from home permanently. that's according to a report in the verge that cites microsoft's internal guidance for a new hybrid workplace workers are free to work from home for less than 50% of the workweek or work from home permanently with their manager's approval microsoft will use a g.o. pay scale for employees who decide to locate to new areas and work remotely, which i guess means they would be making a lower salary, if you move somewhere else that's got a lower cost of
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living >> right and this is going doto be the issue for a lot of companies that are going to allow this, moving to different places what that means in terms of how pay will be dolled out a very interesting issue we have talked about the tax implications and everything else locally and around the country and around the world meantime, the latest pixar movie is going to be skipping theaters and going straight to streaming. walt disney planned to release the movie "soul" to disney plus. planning to do that on christmas day. they planned to release it in theaters on november 20th. we talked about what this could mean for the future of films and whether a film like this is going to buy them new subscribers or at least prevent churn going forward. a lot of people may want to see this film and watch it with their families on christmas. we'll see. >> and more fallout this morning in the nfl after some positive covid tests, the league postpone the broncos
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game from sunday to monday after two more new england players tested positive this week. the patriots game last weekend had been delayed by a day after quarterback cam newton tested positive the tennessee titans game against the buffalo bills will be moved from sunday to tuesday. the titans have had 23 positive covid tests since late september. new reports this morning from espn say that the latest rounds of tests for both the patriots and titans all came back negative, thankfully becky. >> joe, thanks when we come back, news from the housing industry we have the latest mortgage delinquency numbers that will give us a better idea of the impact of the pandemic on homeowners that's coming up next. as we head to a break, the s&p 500 is on pace for its best week since august. here's a look at the stocks leading the way week to date xilinx at the top. amd expected to be doing a deal with xilinx, reported in the
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"wall street journal" today, could happen as early as next week that stock is up by tt tn beerha 20%. "squawk box" will be right back.
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welcome back to "squawk box" this morning, we just got the latest numbers on covid related bailout plans, and i want to get stra straight to diana olick.
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>> reporter: the number of bo mortgages dropped by 3 million for the first time since april because the first wave of forbearance plans hit the end of their six-month term active forbearances dropped by 18% according to black nooirknit the first wave of forbearances hit the three-month mark back in july adds of october 6th, 2.897 million homeowners remain in forbearance that is down from 6.8% in the previous week. these plans allow borrowers to delay their monthly payments for at least 30 days and up to a year the plans are administered in three-month blocks with the option to renew at the end of each borrowers can wait until the loan is refinanced or the home is sold. improvements across all investor classes but portfolio held and
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private loans saw the greatest reduction, and fha, va, about 3/4 of the loans that remain in bailout plans have had their terms extended at least once since march andrew >> hey, before you go. what do we expect to see in the next month well, we could possibly see even more because 800,000 more loans are set to hit that six-month mark, so, if, you know, good news, they could come out of that, that would be wonderful. we're going to have to wait and see they get extended. if borrows can get current on their payments again, but this is a pretty good sign to see that many at the end of this term we could see just as many in the next month >> diana olick thank you so much appreciate it. coming up, black rock's rick rieder will join us, a plan to think outside of stocks for returns through the end of the year i thought it was tina. as we head to break, take a look
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at u.s. equity futures up 130 points so far. ♪ ♪ ♪ ♪
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welcome back to "squawk box. shares of hca are sharply higher, returning $6 billion in aid that it had gotten when the covid-19 pandemic began and that it would be able to pay it back out of existing cash it also raised its revenue outlook. and zoom, video communications higher this morning as rated buy, zoom continue to deliver outsized revenue growth, and stocks of cannabis producers are adding to yesterday's gains. the initial surge came after democratic presidential nominee kamala harris said marijuana should be decriminalized at the federal level under a biden administration becky. >> joe, thanks our next guest says that investors need an alternative
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plan to try and generate returns for the rest of the year, and even into 2021 joining us to talk about that and much more is rick rieder, head of the black rock global allocation team at black rock. thanks for being here. it's good to see you. >> thanks, becky thanks very having me. >> so stocks have been doing pretty well at least the last couple of weeks. you're talking about the major averages only 3 to 5% off their all time highs is that why you think you better start looking somewhere else for returns? >> no, i actually think stocks, i feel like every time we have been doing this show for a number of months, we talked about how the equity market has up side. it still has up side i think the something different is a 60/40 blend, 40 is tough today. when the fed reduces interest rates to 0 and you take much of the mortgage market, the agency mortgage market, make uninvestable, and take the
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treasury market, you have to force assets or force people to go into assets the equity market, given the free cash flow yield, the equity market, the multiple can be high for a longer period of time. and the economy, whether the stimulus comes in the netflix coup -- next couple of weeks or next year, you've got some pretty good backdrop for what is a decent nominal gop, and the earnings and the income availability comes from equities, not the debt market. >> so wait, we've got your take all wrong, you're thinking people should put more money into equities, not less? >> we think the equity market has got attractive up side i think tgs tit's the rates mar that is more difficult there are the lot of companies throwing off generating return of capital, 10, 12, 15%, i'm going to hold that for the next three to five years at a discount rate close to 0
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not just where the treasury rate is, those companies are able to finance today, and they have been doing it and actually sitting on a lot of cash now you think about what's going to that happen next year, and seeing higher levels of m and a, capex spend, r and d, and all of those are good catalysts for the equity market to have a good run. i think alternatives are going to have a decent amount of investment, in lieu of the some of the traditional rate product we have seen in the last couple of years. >> to focus on equities, i know you can't talk about specific equities, but are you talking about the 490 companies in the s&p 500 that have not had these outsized gains that we have seen with some of the faang stocks and other tech names >> i think we said on the show last month or a couple of months ago, yeah, i think the big tech names have had a good run, and you know, for a long time, they were given a free cash flow
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generation, and should be a big part of the portfolio construct. you take where multiples are today, there are still free cash flow generators, boy, i think the next level of technology, look at today's news, the next level, whether it's semiconductors, software, whether it's forms of data transmission that are taking place, cloud, et cetera, that to me is the up side, and quite frankly, i think the cyclicals, we talked about it on the show for a while now, i think the cyclicals are a good place to go today, and people have been underestimating for a long time, while it's going to be hard to bring employment back to full employment, that consumption is going to be pretty good, and the economy can operate at a good level. i like some of the cyclicals, and the banks, including in europe, which i haven't done in a very long time it's a better economic paradigm. >> you're the second guest this morning who has suggested some of the banks if europe there have been so many people who aren't wanted to go near
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those for a long time. they're worried what could be there lying toxic under the surface on some of those things. what is it about the bank stocks in europe that attracts you, just in terms of valuation on them at this point >> price matters the european banks, they trade at 20% a book, 25% a book. we started buying some of the ranks recently, traded 15% of book value you know, if you think about a dynamic, and by the way, the ecb may turn on the ability to pay dividends again, and for some to buy back stock, and if you're generating, and you think about, if i trade 15 to 20% of book value, the bank can earn 3 or 4% roe, that's incredibly attractive investment. the banks in the u.s. and europe were thinking about covid. i have a reserve in a heavy way. they have over reserved, you think about what the earnings could be, if you don't have to reserve to the same extent as you have in the past couple of
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months, if you believe vaccine is coming, more stability of growth i don't think they're going to be huge earners, what you're buying into today is pretty darn interesting. >> is that your underlying thesis, things are moving, we're going to get a vaccine we have gotten through the worst of the economic problems at this point? >> i do. i mean, listen, you can take -- it's going to be an uneven economy, full stop, there are parts of the economy that are going to be harder to bring back in, in the obvious areas we talk about all the time, transportation, health, leisure, restaurants, et cetera, people don't put the size of the stimulus programs and think about what the real transmission is if you put 2 trillion of stimulus in, the last stimulus that's 10% of gdp. we're going to get another number and debate the timing, let's say another trillion and a half to $2 trillion, maybe a bit more depending on the election
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results. another 10% of gdp goes in, now you take a fed that's going to function that willy monetize e functionally monetize the debt the interest expense on the government debt is going down because of where we're keeping rates. that is an extraordinarily powerful cocktail, and i think people don't do the math by the way, i think it's going to be hard to bring employment back, as companies are realizing they can operate virtually, they can operate more officially, and so the feds got to stay on hold while you get some stimulus. you could have decent growth next year: i think people are under shooting in what that could be not without risk but i think people underestimate what it could be >> rick, what about the idea that we now have debt that is larger than our gdp for the first time since world war ii, and the fed may be maintaining, keeping rates locate at this point but do you worry about the market taking over and inflation kicking in >> that is, you know, you have
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to invest, when you think about your investment period is going to be. and listen, there's a limit. i'm not saying keep putting debt on the system. there's a limit to how much debt you can put on the system. the feds arehave room, and you v a very unique period of time where the ageing demographic, the system is set up to be a lender because of life insurance companies, pension funtds actually need to fitness you can support more debt and think about what's happened simultaneously you had delevering in parts of the economy. the consumer, the financial system has delevered, and you actually can put on a bit more debt the critical point that you make is you have to believe that nominal gdp accelerates that the debt doesn't become that great a burden, and people underestimate, when you're the reserve currency in the world, the great inflation that this gets away from the fed or gets away from treasury i think the u.s. has a series of
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tools that can actually absorb more debt, but there's a limit i don't mean to say just keep doing it, but i think now jobs are more important than anything else and you've got to get velocity of tax dollars in through more people working >> that's an argument for additional stimulus, if there's not a stimulus deal reached by the end of the year, does that create a bigger problem in terms of the belief that the economic growth is going to be there to back it up. >> the stimulus has to come back you will see the data start to moderate if we don't get more stimulus coming in over the next couple of months you know, so let's say if you had some election change from the e electlection, if it took couple of extra months, that's okay the fed tools are blunt at this point, to buy more assets.
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it has to come from targeted fiscal stimulus, health care, state and local, if it comes in the next few months, then that's fine like i say, you can't improve the employment die nam you cynas country without getting targeted stimulus can we absorb a bit more debt to do that. that's the important paradigm, today, you've got to get that in there. >> rick, thank you for your time it's really good to see you. >> thanks, becky thanks for having me again. >> okay. we'll talk soon. andrew. when we return, a lot more on squawk, jim cramer's first take on the trading day ahead. plus, the latest on the renewed calls to regulate and break up big tech hen henry blodgets is going to join us amd is in advanced talks to buy xilinx, the deal could be announced next week. you're looking at advanced micro down 3%, but xilinx up 13 1/2%
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squawk returns after this. 20 years ago, i was an hourly
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. welcome back to "squawk box," here's the futures up 124 points now on the dow. triple digits and the s&p up 16 1/2 jimbo, i don't know if you were watching when i was talking about amd. you've believed a few times in the past, i have been watching it for so long, i never really
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believed who was the guy, real charismatic. sanders and we watched that thing, did we not watch it go from 50 to 2 like every year 2 to 50 to 2 to 50, and intel just dominated. >> cleaned the clock >> when did that become a hundred billion dollar player. >> when took it over, and then said we're going to fix the balance sheet, stock was at 5. she told me at a very stern way, i was born on the horse with intel, and she was going to surpass them with a series of chips that are better for games and for pcs and she did it and then she moved it into the data center. lisa sue was a hero of mineme she's incredible i have to believe that xilinx doesn't want to sell, but remember, intel bought altera, disaster, i think if she bought
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xilinx she could integrate it better doesn't need it to be great. i doubt that the "wall street journal" just pulled a rabbit, take it out of thin air, but she's, if it's happening, it's certainly not happening today. but she's done a remarkable job and it's done by execution she's an engineer, intel switched to a series of people who were not engineers she is a great engineer. eastern trained, m.i.t., prodigy of rick hill who did, and tough as nails, flushing, about ten blocks from my wife. >> i was just thinking about how someone can really do well in the stock market, and i'm just trying to figure out if people bought it at 2 and held it and that's what really, that's what you try to help people do that is building wealth and your entire family, you do something like that, and, you know, money isn't everything, but it certainly makes it easier.
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>> yes, there's all of these people who say, listen, you don't want single stock risk why pass up single stock reward. if the goal is to have amd be in the same box as intel, then you've defeated exactly what lisa said she's going to do. that presumes it's part of a broad commodity of ceos. it's not true. she put together a great company. a great team, and has better chips, so why should we just say you know what you can't pick a better one she told me at five, listen, we're the better one, and don't be on the intel horse. so, i mean. >> amazing >> she's amazing >> that's great color and background on lisa, and what a job. unbelievable >> and her husband is terrific too. >> thanks, jim we'll see you in just a couple of minutes make sure to watch "squawk box" for the kick off of earnings season all the big banks, "squawk box"
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welcome back to "squawk box.
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house committee calling this big names monopolies business world responding. the prospect of a breakup this week >> do i think all this threat of breakup and blah, blah, blah is it really ever going to happen i'll bet money on that i could be wrong i'll bet some money on that. and yet at the same time, you know, i think over the course of the next few years each one of these organizations will have long drawn out difficult discussions with regulators. >> it is a jewel of our system that we produce such innovation, and i would like to -- and wouldn't want to give them a lobotomy by making them into utilities, because i kind of like what they're doing. but at the same time, it has to be a lot more regulation and perhaps even, you know, a breakup. >> if you want to tackle a monopoly that matters to this
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country, attack healthcare >> joining us right now is henry blodgett, you want to take the other side of mr. ballmer's bet or you put money with him? >> well, i will agree with the consensus that there is going to be more regulation these companies are extraordinarily powerful, they had very little -- there are lots and lots of questions including market power and market size that the government will look at much more closely and i think steve'sed arice to the advice to the companies, get in there, start negotiating now, get what you can, i think is sound. i don't think investors need to worry about a breakup. i think what people miss in this conversation, a, it takes a decade to get there, huge litigation around this and, b if they ever do get broken up, investors in the company are going to own all the different pieces, which will then be able to grow on their own. so i think that everyone should -- not necessarily in a
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media breakup. >> let me ask you then, you go back and look at microsoft, to the extent that could be a template for this, there was arguably a lost decade for microsoft, not just a lost decade in terms of what happened to that stock price, clearly it is obviously succeeded since then, i think even people inside microsoft, bill gates and possibly satya and steve ballmer would say because of the regulation and the lawsuits that were taking place during that period, they took their eye off the ball and that actually allowed the apples and the googles and everybody else to emerge do you believe that? >> i think very good point there, especially on the second part, which is that it is distracting. but i think what really cost microsoft the last decade was not this, but the market shifted. we went through a paradigm shift from pcs in the '80s and '90s to a shift to the internet and mobile
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and for five to ten years microsoft missed that shift. it is only been in the last seven years or so that they really figured out how to make that transition and done an extraordinary job. so i think what marooned microsoft stock for a decade was the market, not the antitrust issue. >> you don't think the -- but you know the -- you know the view there is a view that microsoft was so distracted that had they kept their eye on the ball, they would have been in the mobile phone business, for example, and that that opened up this whole other opportunity for these competitors. >> microsoft invested a ton in the mobile phone business. and they went after it with the assumption that it would be exactly the same as the pc market, that if you control the operating system, you would control everything, they tried that for years with tens of billions of dollars, turned out it was wrong that's not what ultimately mattered and what apple figured out that a lot of people were skeptical of because of the 1990s was that
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in fact it integrated hardware and software device would be the platform that everybody would build on top of. so i really think the main thing was the market shift, you're right, it is distracting and they had to change the culture of the company from kill everybody, to at least pretend to be getting along and being fair which does make a difference. >> so, if these companies are not going to be broken up, and i'm in agreement, by the way, the question is how do they get regulated? so let's take apple, for example, big question over the future of what an app store looks like this 30% apple tax. how would that change? and what -- how would that change in your mind, therefore the valuation of the company, if it would at all. >> i think this is where steve's point about the companies really getting embedded in washington and talking through all the issues is where all of that will be determined. but i think that part of it is just public perception we instinctively don't like it
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as people when companies get too powerful and control everything. and i think that is the main generator of all this conversation because you look at each one of these markets, actually there is a lot to support apple's argument that it doesn't have that much power in the smartphone market, et cetera but public pressure putting your foot on the throat of an entire industry, the way the app store percentages do and multiple industries, you know, people don't like that. they want to open it up, they want to be fairer. so i think a lot of it is public pressure on the companies to do the right thing and to share the wealth a little bit more than they have been >> what company do you think is most at risk >> for immediate regulation, i think each one of them is in a different position, if you look at google's position in the search market, that's just an extraordinarily powerful position, probably the biggest market share of all of these and that is a market that i think that you will see
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antitrust regulators dig into. facebook -- >> how would you remedy the google situation >> i'm sorry >> to the degree this yat you mt think the google search business needs to be remedied how would you do it? >> you go back to microsoft, i think is another good analogy here go back, say, it is way too powerful you got five years of digging into the details, trying to figure out what to do, huge litigation back and forth and microsoft's case, they lose, but then they make some changes that forestall big corrections going forward, so, yes, there is the distraction of it. but i think regulators will get in there, they will look at how does google search position allow it to get into new markets that are not related to search, how much is it favoring its own business over other businesses, lots of questions to answer about that and so they'll dig in, but it is going to be very detailed
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analysis >> where does amazon land in your bucket of risks >> i think amazon is in a position where if you look at amazon's retail business, the issue with amazon is that there are three or four different businesses that they're in they have a different position each one of them retail, if you look at amazon as a percentage of retail, it is tiny if you look at it as a percentage of digital or online retail, okay that's where they have major market power, but it is still not 90% of the market, something like half, so then you go to aws, you look at that relative to other companies, they don't have a monopoly position there, they have a big position, so these are some of the arguments the companies will come back with if the argument from the government is this is antitrust, you have a monopoly, it is no, no, we got to look at every business we're in, we have to look at all of the competitors out there, and that's what the discussion will be about and i think, you know -- i think
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one of the -- what ultimately will stop the growth of these companies is that in the case of google and facebook, the advertising market is not unlimited. and they have such a huge percentage of it already that, yes, they will continue to grow but there isn't infinite growth there. >> we have about 30 seconds left but the -- i think it is conventional wisdom that there is going to be more regulation that comes to all of these companies. do you think the market has factored that in when it comes to the stock prices or do you think there is still a day of reckoning to come? >> i think it has, actually. and i think people are constantly asking is this the 1990s all over again and i think one of the things that is very important difference is just the multiples of these companies you look at google, facebook and microsoft, they're trading at 30, 35 times trailing earnings high multiples, but not insane by any measure and so i think the market
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assumes those multiples will gradually compress >> okay. henry blodget, good to see you have a good weekend, my friend >> you too. >> quick look at the markets you're looking at the dow up, green arrows across the board. join us next week. have a good weekend. "squawk on the street" begins right now. good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber futures are up as the dow looks to wipe out its september losses at the open. stimulus hopes are still alive new covid cases break above 50k for first time since august. chip m&a, that's where our road map begins a many d repo amd in talks with xilinx. >> and stimulus confusion, now asking for a big deal.
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