Netflix up and gains by apple and facebook getting help this morning from what we see in oil prices. Youll see wti is up almost 10 . Up about 9. 5 to 23. 34. That is a big come back for wti. Thank you, becky. Oil market market oil thats been a lot of the story want to bring you other headlines. United airlines as mentioned, planning to cut about 30 of management jobs in october according to a company memo that works out to 2,400 white collar jobs and has also warn the pilots to prepare for displacement that it will let go about 30 of its pilots. The airline has accepted aid and if they cant may pay by the end of september 30. This was always the issue, if you are going to give government money and taxpayer money to the airlines, you are going to force them to keep people on the payroll, you are eventually planning to let go of them anyway, there is something off about how this program was structured we want people to stay employed but either restructure to a bridge where they can run the airline and you are not and clearly in advance and united knows in which case, to borrow the phrase, are you really on i bridge to nowhere . What business is not like that restaurant businesses will need all the people they had. Name your business thats you are not going to have 100 retention. Maybe there is a few web stuff and on line. Many, many, many businesses. And working at home on top of that do you do a second stimulus then for the airlines . You cant just keep for everybody. Is it throwing good money after bad with no demand the plans are imperfect we have been trying to figure out how long this is going to last think back to six weeks ago, did you think wed still be sitting here working at home i didnt. I did i think we are making this up when do you think we are going back, andrew he doesnt say when, he says if honestly, when do you think we go back i think america goes back i think our particular job is unique in such that we have to be condition six feet of each other and around a table with guests i think it will be more complicated. Airlines, restaurants, we are in a similar boat all of these things with a vaccine, you could have restaurants packed again we are assuming you are going to have a third of occupancy and movie theaters if you do get a vaccine where everybody feels safe, you may have sporting events where people are sitting in their normal seats 100 , joe if you dont, the ppe, we keep having to extend. We run out of that, we have to get more i understand that the vaccine story, weigh understand so well now because of the guests weve had have discussed that vaccines at scale, even best Case Scenario is a 2021 story. Even if it is a january 21 story. That would be fabulous by the way, if you are asking me, i think there is a decent chance of that happening i think the world may go back to a real sense of normalcy keep me updated i need to know what you are thinking about when the vaccines are done it will make me feel a lot better we have pfizer on to talk about their chief science guy. They are doing a mr a similar to moderna. He might know something about it the simple question lets get to l brand. Both will drop litigation. L brand says it will spin off bath and body work to a separate publicly traded company and will plan to let victorias secret to operate as a stand alone less wexner will remain on the board. Andrew meslow will remain ceo of the brand and l brands apple issuing the chiefest bonds in years taking advantage of the feds to borrow monday on the chief they raised 8. 5 billion selling four different bonds maturities range from three years to 30 years. Apple has a large cash stash if you can baro money cheaply right now, why not good to have a cheap balance sheet. Elon musk looking to have qualified for a 700 million payday putting the market cap at 21 billion at the close that triggers the vesting of the first of 12 traunchs of options that have been granted as part of the 2018 pay package which we brought you and had a vigorous debate about two years ago now in davos there he is getting the money. If stock goes down at this point, he still captures those shares in other news, weworks cofounder adam neumann filed a lawsuit against softbank and vision fund. Frustrated minority Share Holders like neumann expecting a pay out of a billion if you read through the lawsuit, it was similar to another suit brought against the company by this special committee of wework which was representing the minority Share Holders it appears or at least the allegation is that softba purposely tried to upend so it could say certain conditions werent met. There were certain transactions in china, those didnt happen. The allegations were that they went out of the way to ensure this didnt happen so the larger deal wouldnt happen so they wouldnt pay adam neumann and the Share Holders. It will be fascinating to watch. When they get to discovery, youll get into adam neumann and the world of softbank. Get out your popcorn there has been so much written. I feel like i know him well already. Markets focus on rising u. S. china tensions. Eunice yoon is with us this morning. It is really good to see you it looks as though chinas top Intelligence Agency is concerned those tensions will get worse. Last month, researchers presented to xi jinping himself their concerns that the global push back is just as bad if not worst than what it was during the 1989 crack down on protesters reuters was told by sources that the internal report warned that china could see a push back of operation projects this could encourage u. S. And others to step up. Finally concluding that u. S. Would continue to fan this antibeijing sentiment in order to undermine chinas rise in a worse Case Scenario, could lead to an armed confrontation. It is unclear how seriously beijings leaders would take this report. What is interesting is the fact that this report was leaked at all. What is interesting is the leaked divisions about what has become a much more aggressive and combative style coming out of beijing it is good to see you again i dont know why we dont check in i saw an interesting political piece. Did you see this one china is really proud of the way they handled coronavirus and are kind of laughing at the United Statess response . All the time. I thought you meant in the state press. We see it all the time it is common in the television or papers about how poorly the u. S. Handled this. You ho they had a heads um for two months and how they were able to crack down quickly and were so gracious for the protective gear given from other countries and have been able to handle it so well. Kudoscha. We head to break, check out futures. You are watching squawk box on cnbc these days staying connected is more important than ever. So were working 24 7 to maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. Announcing it is imposing rigorous new standards after the agency would face criticism for hundreds of new tests to hit the market without proper review saying the standards will help crack down on fraudulent actors. Coronavirus deaths could rise sharply according to one draft model. Saying the covid19 deaths could reach 3,000 a day by june 1 and could be almost 200,000 cases daily. Joining us now is dr. Scott gottlieb and also serves on the board of alumina and pfizer. Great to see you this morning. This is a concerning report what do you think . Is it fit with what you are anticipati anticipating based on the number of cases now this is a good move by the fda at the same time, theyve proved new tests including a test with 99. 8 specificity. If i did an antibody test, and repeated it eight times. As far as the model that is leaked yesterday to the New York Times cdc doesnt have modlers on staff they work with groups to give those groups data and assumptions. They work with a group at hopkins that works with cdc that gave a sumgss over the course of may after a number of runs and it is not unclear if this is a model of what would happen the number of runs they did looking at different scenarios is it a worsecased scenario . There were models that looked worse than this one. It was unclear we can predict cases are going to go up over the course of may we saw Airline Travel up more where there is still a spread of the virus. You have to expect the spread to go up. They are not going to go down not much that will keep them from going down. The hope is that it will keep them from going up much. We have to look at how that looks and restart activity to give us a sense of normalcy. What it means most of all is weve got to protect those communities and settings with large outbreaks in places where people are crowded together in nursing homes, institutions and even shop floors in places like meat packing plants and in disadvantaged communities that lack access to testing and care and people who live in crowded housing. We need to focus on places that become more more indemocratic. We keep saying we need more tests and equipment. When do we get to the point where, okay, we can keep up with demand or do our best to keep people safe . Probably into june, well have robust testing. I think the issue Going Forward will be where can you go to get tested if the regulations are so ownerous that doctors dont want to do testing because if they have a positive, theyll have to shut down and do deep cleaned. Running through those regulations now to make sure they make sense that doctors offices dont have to go through extraordinary measures i think going into the summer, well start restocking that as well with a lot of capacity coming on line we got a late start on this. Heading. June, we are going to see a different situation when it comes to ppe and Testing Capacity heading into the fall, it will be much more this will become indemocratic over the summer. When you come back to the fall, you could have an ignition in a number of cases. New York State Health department put out an alert of what they are calling a pediatric inflammatory system. They talk about cases of children in new york City Hospitals with the system that they think could be related when it comes to toxic shock syndromes. Do you know about this there are various symptoms weve seen there has been reports in the literature of these kinds of conditions there was a notion that this wasnt really affecting kids it does appear there were kids being affectedby this. We know there were children hospitalized or getting very sick there seem to be unusual phenom nom affecting kids, not in a huge number. We dont understand this virus very well. It is really remarkable. We are still learning a lot about it it leads us to believe this is a more fear some vie raus than what weve perceived and the con kwenss and ability to affect people and how contagious it is. It is more fear so many than i saw about the latest is every day, there is another affect, purple toes and bizarre stuff. But if you do the math of the a symptom magnetic cases we see gae again and again. When you say fear some, dont you need to put that in as a disclaimer with the spread that is contagious that helps early on, those make these things contagious. That is part of what i mean when i say fearsome. Go ahead. Pardon my medical language. When we look at the case fatality rate, it will however between. 5 and 1 . Clo closer to 1 not below one given theliterature weve been looking at. I think weve been saying on your show, given what weve been saying, it is probably closer to 1 at 30 to 40 , we dont know. We dont know how much wer diagnosing we are diagnosing one in 10 and one in 30 days 1 is i dont want to do the math, obviously. Thats why we are mitigating and have something, either antibodies or a vaccine or something. We dont want to do 1 pes. 1 . We will what are you seeing now as the hospitalization rate not the death rate right the number of new cases is also skued by the fact that we are testing much more and turning over more cases. That rate is falling the challenge is rates are going down naturally you still see hospitalizations going up that said, they are a lagging indicator that tells you what happened seven days ago. The troubling sign is that we see them going up. You cant conclude that it is reaching its peak. National, it is still growing. On a very personal basis, people think, what is the chance im going to have to go to the hospital not whats the chance im going to die. We see it is around 10 so far, weve been saying about 10 end up getting a severe infection. Okay. Dr. Scott gottlieb, always a privilege to spend time with you. Thanks a lot. We have a lot more ahead. United airlines preparing for job cuts and the plunge in travel well have more of the details as we head to break, images of the pandemic attack from yesterday across america to keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Clean i a feeling. Its the satisfaction of upgrading to a bidet seat, just like that. And the simple joy of washing your hands, without ever touching a faucet. We think its the Little Things that matter. And we know you do too. Thats why we create moments to feel kohler clean, every day. I know that every time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. Confident Financial Plans, calming Financial Plans, complete Financial Plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Now white collar job cuts are coming to United Airlines. Phil has more. Good morning this is the first we will likely see for the entire Airline Industry yesterday, united told all management and administrator, about 11,000 in the company that at least 30 of those jobs will be eliminated starting october 1. The rest of the company, another 90,000 were also receiving a memo and that said there will be changes. Also reports that separately pilots wither told 30 of their jobs could be cut. Just a couple of weeks ago, they received 5 billion in the cares arkt 3. 5 billion in a grant in addition to the loan from the treasury department. The condition of that loan is you cant fire anybody or have mass layoffs before september 30 to be clear, every Single Airline has been forecasting there will be job cuts down the road they needed this money to keep everybody employed through september 30 but after september 30, united is now saying at least 30 of the white collar jobs are going youll see thousands more. They are also trying to as much as possible cut the costs here they told them your hours will go down 25 . Going from 40 to 30 hours a week guys, this is what the Airline Industry is doing right now. It has the money in place to keep operations in place unless things change and it is not expected to anytime soon, there will be other airlines discussing similar type job cuts in the weeks and months ahead. In terms of being able to cut hours, does that count too saying we are not going to lay anybody off . That is contractual allowed allowed by the airlines by the contract between now you are getting to the spirit of the law. At the time it took out the cares act that we will not cut hours or pay or jobs they are not cut the jobs. In terms of the pay, you are getting in a gray area in the contract between the machinists and United Airlines. Saying, look, we are allowed to go from 40 hours a week to as low as 22 hours and the union weve told could go down to 30 hours a week there machinists are not happy they said, look, this is contractually allowed. We have an airline here. They are not the only one. You will see this with almost every airline. They do whatever they can to cut things quickly this go back to the debate saying at the time even, there was an expectation they would have to lay people off as they were taking the loans . Yes as we were saying, weve said it on the air many times. This program saves the shareholders but doesnt save the employees. The airlines could have gone through bankruptcyand kept the planes in the air with less employees. How are the airlines going to respond to the public when 10 plus employees are no longer on the payroll come the fall . Theyll keep doing what theyve been doing since day one. We were at the white house when the airline ceos were called in. Every single one said the same thing. They need to make dramatic changes. We have thousands of employees taking unpaid cuts of absences they even said at the time, the money is appreciated it is helpful to keep us from going into bankruptcy immediately. We will need to make changes in how many people work for each airline. Is there going to be backlash . Absolutely the airlines are not loved about many people. This will be one more where they say, they took the money and then took the jobs they warned all along these cuts would be necessary it was known six weeks ago at the time yes it was known as they walked into the white house. It was known as they walked into the white house. Yep exactly. Okay thanks, phil you bet andrew was right. When we come back, finding out wh hate means when he says the pandemic isnt changing everything thats next. These days, its anything but business as usual. Thats why working together is more important than ever. At t is committed to keeping you connected. So you can keep your patients cared for. Your customers served. Your students inspired. And your employees closer than ever. Our network is resilient. Our people are strong. Our job is to keep your business connected. Its what weve always d