Good morning, everybody. Welcome to squawk box on cnbc. Im becky quick with joe kernen and Andrew Ross Sorkin well start with the markets after the dow fell for the first time in four sessions. Airlines, cruz and retailers all fell during yesterday sessions those have been the volatile stocks if you look at u. S. Equity futures this morning, youll see green arrows the dow indicated up by 28 points nasdaq up by 24 and s p up 4. 5 yesterday, the dow was down 170. During the course of the morning, we were watching the futures and up as much as 250 in the morning. Weve been keeping an eye what is happening with the treadsry markets. Right now, it looks like that 10year yield is just at 0. 71 andrew good morning. Thank you. United states pulling out of talks with europe to tax tech giants Steven Mnuchin saying international talks have hit an impasse and there wasnt even room for an interim deal it threatened retaliation if they move ahead with plans of their home a number of European Companies were hoping to impose taxes above threshold which would have mainly hit u. S. Tech firms frances finance minister calls this a provocation the u. S. Threatened to retaliate with 100 tariffs on french champaign, cheese and hand bags. The uk, italy and spain have all developed their own digital tax approaches in case the International Deal failed. Why are you laughing, joe i dont want to be an ugly american im just hesitant to step out there. You are in europe. Lets see, what can we do . When is the last time we developed a really great new tech company we havent developed any why dont we tax Big Tech Companies that are all based in the United States where theyve developed things we have sap, i think thats about it. It is typical. A great way to do it we are taxing everybody. Every Digital Company of a certain size it is just that there arent any. You realize your people are spending their time and money trying to advertise on those things you are right. If you intentionally set out to tax something that hurts somebody else and not you, they are going to retaliate disruptors, are they any Domestic Companies does it matter no. Weve had International Companies on the list. There is one from israel. Im just waiting now for somebody they made you do this anyway. This was another one look what you made me do. Exactly i heard homer when i heard this story oh we almost had it they looked at the fine print. Hertz is halting plans to sell 500 million of worthless stock. Pending a review of the sec. I am surprised the sec stepped up on this we heard from harvey pitt yesterday. I thought maybe the investment banks would bauk after he pointed out they were the ones that would get sued. Your days are merging together i think it was tuesday or monday all one long week lets just stick to weeks. We might be able to keep our weeks straight but not our days. Earlier this week, hertz said it got the okay from the Bankruptcy Court but warns that it faces substantial risk if they buy this that is worthless. Investors take a risk. I was trying to think if it would ever make sense. Shorting the equity, go long the debt could you ever be historic and belong equity and short debt i dont think there is no because you are behind the line. Hertz was going down to 40 on the debt now i stumped you. Easier for the Retail Investor to buy the equity not the debt that explains who is getting stuck. In most cases when you let a company know those comments on the disclosure, they do not go forward until those comments are resolved if those shares are listed meaning the continuing requirement and there are investors involved trading in hertz was halted and it was choppy when it reopened you can see it is back firmly in the penny stock range right now. Ford announcing plans to launch the Driver Assist that will control the vehicles speed and braking through radars and sensors and will only operate on premaped highways. Additionally monitoring drivers attentiveness. Available to order later this year followed by other select vehicles for the 2021 model. The software wont be activated until the Third Quarter of next year thats weird maybe they need more time to make sure the other pieces are in place thats weird. Tesla, i dont even believe it matters that it has been fully mapped it doesnt work in the roads where all the lines are in the ground these are specific roads they feel comfortable with. Similar with the approach gm has done it, maybe even a little less in terms of the full mileage but nonetheless. If you are a music fan, spotify reaching a deal with reality star if you keep air fans in your ears all the time. Kim kardashian west will be hosting a podcast focused on criminal justice terms have not been disclosed but connected to her work with the Innocence Project that fights wrongful convictions. Spotify has been trying to lock up a lot of exclusive deals. Struck a deal of 100 million for joe rogans podcast, which i believe is the most popular podcast in the country time to mention you should listen to our podcast which you can get on spotify behind the scenes news and access we are available everywhere. Spotify, apple wherever your favorite podcast can be found what did rogan get . The number out there the number out there is 100 even on my own reporting, i think it is actually higher. I think it is actually in the 150 ish range. For a podcast hes doing a daily radio show i havent decided what to do with our podcast money yet i dont have a place in florida. I havent spent any of it. I guess because i havent seen any of it. I havent seen it either . You havent either . I think they may based on your talent. Both of you should have said you are getting paid really you havent got yours. They pay us on the amount of talent and effort we put into it being able to come in and work for such a great company, i dont think i would accept it. Shout it out, the person who deserves it is katie cramer, the person who produces it she should be getting a check in the mail. We do this and they find stuff. Katie makes the magic happen. Hard to believe did you know the podcast wo a gracy . That is all katie. It did . I think. It was up for one made a finalists moving right along google is spending 175 million to supporting blackowned businesses and will end what it calls peer badge checks which some have said encourages racist behavior when we come back, governments are taking different approaches to the surge of the virus in some states futures down by about 35 for the dow. It was just just five minutes ago. S p down 2. 5, nasdaq down 8. 5 but that is up 24 points from where it was moments ago well be watching jobless data at 8 30 eastern. Stay tuned for that. Businesses are starting to bounce back. But what if you could do better than that . Like adapt. Discover. Deliver, in new ways, to new customers. What if you could come back stronger . Faster. Better. At comcast business, we want to help you not just bounce back, but bounce forward. And now, with one of our best offers ever, were committed to helping you do just that. Get a powerful and reliable internet and voice solution for only 29. 95 a month for three months. Call or go online today. Welcome back an update on the outbreak in beijing. 21 new cases yesterday linked to wholesale food market. Officials have canceled hundreds of flights in and out of beijing. Renewed closures of businesses and schools. They have tested 356,000 people between saturday and yesterday and plan to expand the Testing Capacity in coming days. A little over an hour ago, the countrys chief such a tough word for me. Said the outbreak has been brought under control. Epidemiologist. Florida, arizona and texas are siege a rise oklahoma continuing to report a surge days before a planned Campaign Rally for President Trump in tulsa reporting 359 new cases in the last 24 hours. Ranked third in expected spread on rt. Live the tests positive has been ticking higher in the past week. Michigan is not one of the states hitting new highs, the governor has decided to extend the state of many everything si set to expire on friday. Joining us now is dr. Scott gottlieb, former fda commissioner, cnbc contributor and serves on the boards of illumina and pfizer. Good morning can i say this has gotten to be one of the most confusing points in all of this i know there is still a lot we dont know when you hear about the different extremes of reaction from beijing saying we are shutting down hundreds of flights because of a handful of cases weve picked up and other states saying weve seen big up tiks but saying we have to move on i have to say living in the mist of all these rules, it is completely confusing to what we should be doing and allowing what advise can you offer any of us to try to navigate this it is very clear we have made a decision we are going to accept a certain level 20,000 diagnosed cases a day, which probably represents well over 100,000 actual cases. We are probably only diagnosing 1 in 10, 1 in 8 cases. China has made a decision what they need to do is crush the virus and eliminate it entirely and keep it out. China is making a bet they can get more quickly to a vaccine. They are trying to keep it out of the country weve decided and it is clear that we can accept a certain level of infection and keep it from getting out of control. The challenge is can we keep it from getting out of control . This virus wants to infect a certain population and not going to adhere to our rules in the states in the south and southwest. Arizona, houston, austin, parts of florida look very concerning right now. I think one of the tougher things you are trying to figure out. You have to go back to work. It is the things around the edges, if we are saying it is not safe to go to school on friday but if somebody is having a Birthday Party at the beach on saturday saying you cant attend graduation in july but two weeks later volleyball practice starts again. How do you navigate it as a parent making sure your kids are safe but also mentally engaged and not depressed . Going into the shutdown, it was patch work approach. A lot of states making different decisions. The states hardest press took the toughest measures. The states that were aggressive are seeing the outbreaks right now. We expect these numbers to go up it has gone on more than predicted. Look at texas, about a quarter of all hospitalizations are between the age 20 to 29 around austin, a majority of the new cases are under the age of 30. It looks like a lot of young people the governor there leading to maybe bars are part of the study and that they might take action against the bars they have to take certain measures in texas but many arent conforming. The state can step in and maybe limit the amount of people in those settings and start enforcing the rules around social distancing. As far as individuals are concerned, i think this is very much still with us and going to be with us until we get to a vaccine. If you feel you are at risk or vulnerable, you need to take steps to protect yourself for the foreseeable future there are certain things that dont bounce back quickly. If we are not willing to accept that or accept the Slower Growth and recovery over the next six months or five months until we can get to a better vaccine, well have a larger outbreak if we want to get back to where we were in january or december, well have to contend with large outbreaks and a real risk of the second wave in the fall. Quick question from a viewer who has been writing in says, can you ask dr. Gottlieb why this country cant produce enough n95 masks for the senl general population there has been a little bit of domestic manufacturing that has been stepped up. There is a Global Demand a lot more capacity and supply has been brought up across the world. What you are seeing now is hospitals, states and the government stockpiling these and in some cases hoarding them for themselves they dont want to be caught short again. There will be more these are obtainable to consumers right now. There are sites selling these to consumers. The niad masks, not the fdacleared masks. They are costly, between 5 to 10 a mask right now consumers at risk. Think of an older person that has to go out to a doctors appointment. We have to get our hands on these to be used in an atrisk setting would be prudent to do for the fall. The other day when we first heard about the new drug, dexamethasone, i noticed moderna and other vaccine companies, their stocks were a little lower because people think these new therapies would replace vaccines certainly not the case. The only thing maybe they thought is perhaps if you took more of the fear out of coronavirus, youd see people more reluctant or less likely to get vachl. Dexamethasone isnt going to have enough of an impact that outcomes of people will no longer view coronavirus as something they want to protect themselves from. Scott, are you more concerned and pessimistic than you would have been three weeks ago based on the numbers we are seeing in some states . Im more concerns than i was three weeks ago heading into the fall the numbers are higher outbreaks are higher than expected we expected numbers to tick up we have seen doubling times now falling. I think these states still have a week or two to take action we have better tools and testing in place to do that. We can do it the other thing that makes me more concerned is the Political Landscape and lack of political will to take mitigation steps. We are not going to shut down the economy. If you are texas and you think the bars or the setting affecting a lot of 28, 29yearolds do you shut the bars and tell them to go back to 50 capacity rather than 75 probably probably step in quickly the cities havent done that they havent mandated masks in those locations. Unless we get our hands around that and get comfortable taking some common sense, limited measures, well be stuck with more stred look at us compared to china we havent done much in the wake of these outbreaks yet dr. Gottlieb, as always, really appreciate your time and council this morning thanks a lot. Coming up, hope springs eternal for live sports this year Golf Tournament today. Well bring you up on the nbas plan to monitor players and the troubled talks of the mlb. Have you heard we have a chair segment. Im moving over to a chair it is a chair. This sad, lonely chair here. Im going to go sit in it and put a dunce hat on like im in the corner im going to go sit in the chair for the sponsor. Well get to see your legs. You wearing the lululemons today . Gray pair of lululemons on today. So you are comfortable. And i have my allberg sneakers on. As we head to break, look at the biggest premarket decliners on the s p 500 im going to the chair okay, give it a try. Between wisdom and curiosity, theres a bridge. Between ideas and inspiration, trauma and treatment. Gained a couple of more pounds. Thats good for the babies. Between the moments that make us who we are, and keeping them safe, private and secure, theres webex. Beautiful. Yeah yyeah yeah hey, hey welcome back to squawk box. We are still socially distanced but we are going to bring you what we call chair stories in a modified way chair chair. We are all in chairs. I asked them for you to change your background i can do that for you thank you i can do it what kiechnd of background do y want thank you that way it all looks like weve moved to the chair segment and not just me. It looks like ive messed things up andrew, let me know what you think of this. I dont have a problem with this, this story do you im not an alcoholic so air travel is going to look a little different. A number of airlines including delta and american suspending all or part of their alcoholic drink service limiting the amount of time passengers are spending with their masks off and limiting other components. Drink options to water only. Im cool with it i dont think i want people drinking on a plane. Remember what happens when people drink too much like that guy who jumped up on the cart and relieved himself relieved himself . He took a Bowel Movement on the cart i have never seen that and i dont want someone to bring it up now i saw somebody go on a rant like this guy cant even fly if he cant imbibe if it is like an overnight flight, maybe a glass or two of wine fw it is a dayflight, dont you feel crappy enough already jet lag, you dont want to feel like that at the height anyway would you want 90 passengers breathing on you is. No. No just from the heightened tensions, everybody is nervous weve seen all kinds of problems and the air rage people get into you dont need that. People are tense enough as it is just wait. You could power a couple in the terminal before you go on if you are a nervous flier or something. I dont see why this is not just a no brainer ill make it there are been times a cocktail come on, with one of those little bottles then you really do feel like, the lost weekend. If you need one that badly it is not the plane. You need to see bill w. And go to one of those meetings three days after you decided you are not going to drink except for the weekends. Big talker i had a steak last night and a glass of red wine. So you lasted three days. Three weeks but i discovered something called paloma. Very low sugar good in the summer look it up have you tried those grapefruit, lime, tequila and seltzer. I dont like any of those ingredients except maybe lime. You had bad experience at rutgers. Is that what happened . Yeah. I dont drink any hard alcohol at this point. There is no way. It is just not necessary eamon is texting me about berlin and you are texting me about rutgers. You can keep your mouth shut. Not. Mlb is one day closer to starting its season. Holding talks facetoface with executive director to talk about the possibilities of resuming operations according to the athletic details include a 60game season that would start july 19 and offer players their full prorated salaries. Also options to expand the postseason play in 2020 and 2021 thats the big deal. Owners are worried about how much they are going to be making this season but if they can extend the postseason, then that is big bucks potentially down the road media bucks to try to replace from the fans. I think it is not all parode around the league. Cubs make a lot from the stadium. I guess players for a while were going to do prorated but get 80 . But now they are at 100 supposedly it is not a done deal but they are talking thats a good thing if they dont figure this out quickly, there is not going