Transcripts For CNBC Squawk Box 20240712 : vimarsana.com

CNBC Squawk Box July 12, 2024

Pointing upward the wall street journal is calling the last four months a melt up and thats what it looks like. Dow up by 83 points. S p 500 looking to open 12 points higher. Treasury yields as well. Were at. 572. Theres a mix of what theyre thinking and what the equity markets think, right melissa okay we have a we will work on the audio and hopefully get that a busy week ahead. A twoday fed meeting with a policy announcement. No major change is expected. That will tell you that but investors will watch for clues about what the central bank might do next and then on the corporate front earnings season kicks into overdrive 167 of the s p 500 companies will report. Well hear from 12 dow components and among the names likely to get a lot of attention, apple, amazon, boeing, mcdonalds, 3m, exxon and many others. This is if you like earnings, if youre excited by earnings this is going to be a big week. So far this season we heard from 128 of the s p 500 companies so well more than double that 81 beat analyst expectations but as you would expect they have fallen more than 30 from the same quarter a year ago. The other big item to watch this week, the stimulus debate. Treasury secretary mnuchin says republicans plan to introduce the latest piece of Coronavirus Relief its worth about 1 trillion where they are right now its expected to include another round of 1,200 stimulus checks for americans. If the legislation will modify the federal Unemployment Insurance supplement to include about 70 . This will be in place of the 600 recipients and other items in the package include that Liability Protection also for businesses and for schools. Andrew, are you hung over . Oh, do you know what, i actually, we might have a video of it. I dont know if i can get it to everybody. Im not hung over but we did i did get to enjoy that tequila and aparptparently its a famous brand andits escaping me. Its famous i actually had a conversation with penelope about it and we both said theres no way you bought that. Someone sent it to you it was given as a gift. Its not mine. I didnt know what it was. And you cant melissa it was pretty sad not that youre not a big drinker but he was trying to ring the bell. Trying to ring the bell with his hands and you need to use a spoon or a fork or something i dont have a spoon. It was a beautiful vessel it was. What about the shot what about the shot that you poured which was probably worth about 20. What happened with that . I drank it. No, i drank it later friday night i drank it. Thats awesome. That is you missed it melissa. You werent here for National Tequila day. But i saw it. I saw every second of that. It was fun. People liked it. They were retweeting it and stuff like that. Anyway, some reason a little bit of a reason to celebrate maybe this morning, especially if youre gold. Do you remember our jim grant interview . We had jim grant on and i asked him this question about given the fed, given this, given that, given all of these things happening in sectors and stocks and here and there and i said what do you think what should we do . And he said buy gold and silver and all i did because i asked him this big long question, i barely chuckled because obviously with Central Banks doing what theyre doing that seemed like an obvious answer and people are saying you mocked him. You mocked him i did not mock him i love jim grant i agree with everything he says. Anyway, i wanted to get on the record of saying that. These people when theyre looking for a target, melissa, whether its like if you say anything about tesla either long or short, you know, either side, going absolutely nuts on you and its like dont you dont need a target all the time for your stupid trolling twitter hate speech constantly. Theres certain assets, theres certain assets out there that just evoke that response. Gold is one. Apple way back when tesla. Gold moderna. No way im going to be nice to him and pretend hes like an honest guy no way im just going to name him today. Because people go crazy im kidding. He seems very reasonable when he talks. Right. The science makes a lot of sense instead of using in a virus. I know they dont have a product yet. I know that they have the regular stock sales. I understand all of that but why do they hate moderna theyre so mad about tesla at this point that theyre short of 200. I dont know if any of them have any money left but now theyre mad at moderna and they dont want a vaccine they dont get to me at all. Im not sensitive. Anyway, no. Not at all no. Not like an orchid. You know that i did very well with betting on baseball so im not unhappy about that and i loved it i loved watching all the games sports is back i want to send in, were going to send in our pictures. Our cardboard cut outs to be behind home plate. In the background. In the background. Meantime, theres another sport, i dont know if its a sport to watch or not but its a big event to watch this week the tech ceos going to be appearing before the house antitrust subcommittee wednesday. Im sure that theyd feel like this whole thing is sport or that the congressmen are going to be treating them like sport amazons tim cook, Facebooks Mark Zuckerberg and google, they will all testify this will be the first time they appear before congress. You might recall that they were going to meet today but that was rescheduled to wednesday due to some of the memorial events around lewiss death. So melissa. In corporate headlines this morning, moderna secured up to 472 million for its efforts in treating covid19. It will go toward Late Stage Clinical Development moderna shares are up 300 in premarket trade adding 7. 25 well talk more about this in a few minutes and dont miss our interview at 7 30 a. M. Eastern time on squawk box s p plans to spin off its Cloud Software business. Well continue to hold the stake after the ipo. In geo political news, its closed its consulate in china shutdown the chinese consulate in houston and eunice joins us with the latest youve had all weekend to think about this big time insight analysis and tell us what exactly is happening and again youll probably only be telling us. Thats right. So over the weekend theres a lot of color i dont know if its necessarily optimistic but there were people outside of the consulate waving chinese flags, taking selfies. Theres a great Police Presence around the consulate moving trucks and diplomatic plated cars left the compound and of course today was particularly sad for it at the consulate. It was the last time they were lowered at dawn and the staff had 72 hours to vacate the premises this was a legitimate and necessary response to this it was also interesting today is that state media was playing video of black plastic bags and what he described as shredded paper on the u. S. Consultate grounds and it seems to be suggesting that the way americans were reacting was similar to chinese officials burning documents in open trash bins in houston. One way theyre trying to stress that theyre different, theyre saying yes they have taken over the consulate but one way in which theyre different is that they went through the front door where as the americans forced themselves through the back door in what the Foreign Ministry has described as burglary. So the messaging that were hearing thats being sent to the public is that the chinese are taking a Higher Ground compared to the americans yeah. All right. Unbelievable, eunice. I could give you some optimism i know that youre always a little worried about where this relationship is going just as i am but two things also happened over the weekend one was that the Justice Department said that the chinese researcher who they suspect fudged her association with the military to get a u. S. Visa, she is now in custody so that suggests that the chinese are working with the americans at least on that case and also the phase one trade deal that we have been talking about for way too long actually dictates that the top trade negotiators have to have a discussion six months from the start of the trade deal so that means august so that means at least well have the two sides forced to speak to each other. Its better than not speaking at all. It seems like it could be worse. Given pompeos speech im surprised that they havent reacted more strongly to that to some extent. You know, its like, hey, hold on. Hespublic enemy number one theres no punitive retaliation but right now theyre looking for the consulate move and theyre moving on the consulate. You dont see a stronger reaction because at the end of the day i dont think that the chinese want this to escalate to the point where there is no other choice but war and so theyre being very careful about every next step. All right thanks eunice. Great to see you okay. When we come back after the short break, he is going to join us to walk us through everything taking place over the weekend and talk about todays big coronavirus headlines. But first, prices surging to a record high amid covid worries todays jump passing the previous record high set in september of 2011. Stay tuned youre watching squawk box on cnbc this selenite grey is so pretty isnt it . Wow. Jim could you pop the hood for us . There she is. Turbocharged, right . Yes it is. Jim, could you uh kick the tires . Oh yes. Can you change the color inside the car . Oh sure. How about blue . Thats more cyan but. Jump in the back seat, jim. Act like my kids. How much longer . Exactly how they sound. Its got massaging seats too, right . Oh yeahhhhh. Oh yeahhhhh. Visit the mercedesbenz summer event or shop online at participating dealers. Get 0 apr financing up to 36 months on select new and certified preowned models. Now you can trade stocks and etfs for any amount you choose instead of buying by the share. All with no commissions. Stocks by the slice from fidelity. Get your slice today. Stocks by the slice from fidelity. You say the customers maklets talk data. S. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept. 5g, everybody is talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item, corner offices for everyone. We just have to make more corners in this building. Chad . Your wireless, your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch to Xfinity Mobile and save up to four hundred dollars a year on your wireless bill. Plus, get two hundred dollars off when you buy an eligible phone. This is the oil markets. Were looking at a positive open as cross the board s p 500 looking to add about 12 at the open. This is the calm before the storm though one third of s p 500 companies are due to report earnings this week including apple, amazon, google and alphabet all on one day on thursday. Meantime getting to oil the Energy Industry is watching over the weekend. Hurricane hanna made landfall and then weakened and moved further inland the National Weather Service Warning that even in its weakened state it dumps 18 inches of rain through the region today Texas Governor greg abbott issuing disaster declarations for 32 counties in the storms path they have not evacuated workers or shutdown production because of hanna oil right now is slightly on wti down a third of a percent. In coronavirus news, florida surpassed new york now with nearly 425,000 covid cases the state seeing more than 9,300 new cases and 77 deaths. Meantime the federal government is testing czar says that virus test results are taking too long some states expressing concerns about backlogs joining us to talk all about is this is the former fda commissioner and cnbc contributor on the boards of pfizer and lumina. Why dont we start with that idea it does feel like were not doing enough stock piling. Theres a reason that theres not stock piling on testing or on Everything Else because people think that somehow theres going to be a vaccine in four or five months from now theres not going to be a need for it it seems to me that theres going to be a need for all of this stuff potentially for years. What we need in terms of the equipment is we just got a late start. Theres no supply. Theres Global Demand now for the products and the u. S. Isnt the only country trying to get more testing equipment, more reagents, more swabs, so were pulling on a Global Supply chain thats scarce and we dont have enough for this country. Thats the bottom line the idea of the op ed is that we really should build a reserve capacity of these items. What we should do is probably pay the big clinical labs, Companies Like bio reference labs additional money to maintain excess capacity so if there is a Public Health emergency you have some Surge Capacity in these laps they have been built for efficiency we need to build them in the future for resiliency and capacity we have done that in the drug space. Theres certain critical drugs that we know that we would need in a National Security crisis. We havent done that with diagnostic testing and we need to. Let me ask you about the testing. They have been seeing different opportunities come their way and investing in these things. There is a few you might have used the word moth ball at some point. If you built out a lot of Testing Capacity right now you ultimately have to moth ball it. Ive seen a raging debate about that this idea that sure if a vaccine comes and theres a therapudic and everybody is better 12 months from now you have to moth ball it but i also heard views from doctors and others that say were going to be living with some form of coronavirus for years. Hopefully not in the same way that we are today because well have the drugs and features because testing is something that we could be doing all the time for a long time. I think thats right. Going forward. Were going to be testing for covid19 well still be testing for it. What well be doing is using point of care and so the i. D. Now and the systems that are currently used to screen for flu testing in doctors offices are probably going to be used for covid testing. Was the acute fear around this virus and morbidity taken away and perhaps other therapeutics thats typically not reimbursed outside of certain settings and if they were to step in and say were going to reimburse broadly for asymptomatic screening testing that will create a Natural Market for the kinds of technologies that youre talking about. More point of care technologies and technologies that could be sent directly to patients to screen them on a routine basis for covid. If we want to see this get into the market quickly well have to pay for it it will be a small investment to make to get in control over this epidemic over the next 6 to 12 months. What do you think the cost is how much money do you think you should spend on this the cost of goods for pcr based testing is probably less than 40 if youre doing it to scale. The actual cost of the test itself were talking about millions of dollars, not tens of millions of dollars to get much more testing into the market with point of care tests medicare right now is reimbursing for example for testing anyone that comes in to rule them out for covid on the presumption that number one, people do worse post procedure and post surgical procedure. Theres some data suggests that not very reliable data but some data to suggest that and also to make sure that you dont bring infection into the hospital based on the resumption that it helps reduce the risk that the infection would get spread in the hospital so they are paying for routine screening. Thats one sort of setting where its being done. You can broaden that look theres businesses that can pay for this right now Major League Baseball. The white house is doing routine asymptomatic screening some businesses are paying for it but a lot of businesses dont have that margin dont have enough money to do this but have a lot of at risk employees. Think of Public Transportation or Grocery Stores cant pay for this screening yet these are the venues that should be doing it. Scott in texas and florida, there seem to be, we were talking about the plateau last week, is that continuing saturday and sunday . It is i think arizona looks like theyre doing the best interms of starting to peak. Texas is suggestive of that. A little less so than florida. Its unclear theres been spotty reporting on Hospital Data since the cdc changed the reporting departments. It was turning the corner and arizona looks like theyre starting to come down slowly these are going to be egs tenxt platea plateaus other states look like theyre heating up and theyll start to offset the gains were making in the sunbelt. Its crazy in new york. If you go to anywhere, youre supposed to come back and not poke your head out of your house for 14 days. When would you take a state off . They keep adding them on when would you take a state off of that list for people coming back to new york,for example they cast a pretty wide net. Theres about ten states with the positivity level which is really an indication that they have out of control spread that they really dont have the epidemics contained so i would use that as a hard metric. They dont have a lot of new cases. They look like theyre heading toward a wider epidemic. I wanted to ask you about a vaccine. The ceo is on this morning of course receiving 472 million to accelerate the phase three trial of the Covid Vaccine i was wondering if you will take the vaccine in the first batch given the compressed time line of all of these clinical studies, not knowing what they are and not knowing the efficacy in terms of how long it will protect you and to what degree rjs im on the board of pfizer which is also developing a vaccine. If that vaccine comes through the regulatory process and gets regulatory clearance and is indicated for me, i would feel confident taking the vaccine its indicated for me. A lot of these vaccines might be authorized first as someone that is older for first r

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