Saving in terms of production and marketing costs. Of course, the question is sort of how that impacts the question next year when we start to see them ramp up the production again or even second half of this year. But to your point, mike, about digital, i think what really is driving this stock higher today is not just the fact that disney plus is doing so well, hitting 60 million subscribers, four years ahead of the goal of hitting between 60 and 90 million subs so really far better than expected in terms of disney plus but also the fact that the company is really doubling down on digital theyre committing to build another digital streaming service, internationally, also talking about this mulan strategy, offering mulan at 30. Really interesting to see the company push even further in that direction this at a time when the parks are struggling lets take a closer look at the park segment, taking a 3. 5 billion hit due to the coronavirus. Joining us now to discuss that is former design manager at disneyland paris, bill cohen he is currently running itech entertainment the firms specializing in theme park design and production. Now, tell me what did you think about these theme park numbers, 3. 5 billion hit to the parks. Some talk on the call about how perhaps people were making reservations and then canceling them when there were spikes in cases in florida what did you make of that . Yeah. I think thats im sure disappointing news to them im not necessarily speaking for disney dont really know the inside but living in Central Florida and being in the themed entertainment business, it was probably pretty disappointing that they didnt have the attendance or at least sustain the attendance from the first week or two that they anticipated. So, could have been better news for the theme parks, not only here in orlando but worldwide. Yeah. Theres also this question of half of the visitor base for orlando comes does some travels comes from out of state. Right. What should we make of that and the fact that disney isnt disclosing any specific numbers about capacity where do you think disney is in terms of capacity and how much do you think theyll be able to ramp that up if half of the visitors would be coming from out of state if they were willing to travel. Yeah. So thats the question really is twofold. Whether they have capacity in the parks and they certainly do. The next part of that is are they getting the demand and the attendance that they anticipated. Good news and bad news theyre getting a chance to ramp up at a pace that allows them to be better operators over time and really understand this challenge of reopening but at the same time, i think they were hoping to see more people come and certainly more people come from not only local, the region, but also from out of state. And maybe thats not been as good as they anticipated yeah. Certainly seemed to be a lot of challenges to out of state there were some comments on the call the company saying the Research Indicates and the booking indicates that they should be in good shape once Consumer Confidence returns. What do you think we should make of that both in terms of the domestic parks, of course, the park here in california is still closed but also internationally where things might be opening up faster than they are here . Yeah. I think thats one of the many things that they have to consider theyre not only a business that they have to manage and plan and strategize themselves but they are at the mercy sometimes of the local domestic Government Agencies you know, whether its the state government, federal government, local county so they dont necessarily have complete control over it and then these spikes that were experiencing, tend to kind of work against them in the press and in their communications. So, i think the dynamic is still in place that they dont know exactly whats going to happen week to week, month to month, but i think they are strategizing how to get these things up and running. Get them up and running to the point where when the demand comes back, when this kind of settles down a little bit, theyll be ready to go and im confident that not only here in florida but eventually california and worldwide this will pick back up once we solve some of these issues hey, bill, i wonder how you think seasonality gets sort of turned inside out this year because of the because of the pandemic one of the things we were told early on before the parks reopened in florida was mask adherence would be difficult especially in the humidity and the heat obviously thats less of a factor in the winter plus kids will be taking School Online potentially. I wonder do you think the fall winter season could be stronger than we otherwise see well, we hope so. I think that this is a seasonal business disney not so much because they kind of achieve capacity most of the year they dont have so many slow seasons. If they do, they throw in special events to get people to come in. But the normal seasonal cycles for attractions obviously lean heavily on the summer and then the christmas vacations. And that maybe is a little out of whack this time here in Central Florida and in other places of the world, halloween is a big event time. And were going to miss that this time. So, im sure the hope is that, yes, because the schools maybe are not completely open that theyll see an extended Summer Season im sure theyre confident that some of that will take effect, but certainly with the regional audience the people that are traveling, though, are still going to be kind of connected to what their Normal School cycles are. And theyll be holidays and kind of weekend travelers, which is not the best news for disney, but at least gives them a running start towards next year. Yeah. It will be interesting, bill, to see how those visitors spread out. A question for you in terms of your business. You design theme parks and produce theme park attractions. Sure. How do you see that business changing for this new normal even if there is a vaccine and things start to get back to normal next year, do you think theme park design will be forever changed now that we know that Something Like this can happen yeah, certainly listen, i hope its not the forever normal i really like to see some of this come back were blessed we have a business that is global in its nature we have clients throughout the world. We are in touch with them everyday, certainly every week so the way our Client Management techniques are a little different than they would have been a year ago from now and thats because were trying to stay in touch with these guys and we are the source of information. So, we seem to be connected to a lot of people and a lot of the industry itself. So our clients depend on us to tell them where we kind of think this is going to go. Then it also allows us to anticipate our workload hopefully picking up towards the end of the year for new attractions, but certainly into next year where the pentup demand and lack of spending, Capital Spending this year, we hope will pick up in the next year and that we wont miss too much it will just be delayed. I think thats a strategy we see worldwide. Its also happening with disney and universal, the big entertainment company. So we believe at least at this point in the pandemic process our industry is definitely affected, but the strong will survive and we anticipate a lot of this work will return to us next year. Were hopeful, any way well, were glad that youre optimistic, bill thank you so much for talking to us this morning. Its a pleasure good to speak with you guys as well meantime, reporting on microsoft tiktok hey, david. Yeah, carl. You can step back and just imagine the level of complexity that attends the talks between microsoft and bite dance about the potential sale of the u. S. Tiktok business. Its not just two Big Companies negotiating for transaction involving a unit it involves the u. S. Government, National Security concerns, keeping the chinese government, at least, somewhat happy as well and then youve got to deal with things like, National Security and value. Its so complex. But they are making progress, according to people familiar with the situation and they do hope at least to reach and this is a hope again, to reach some sort of potential transaction within the next three weeks. Doesnt mean it will happen, but that is certainly something they are targeting at this point as we have been reporting during the course of the morning. A lot of the recent negotiations have been between microsoft bytedance and the u. S. Government in terms of trying to get a deadline specific to how long microsoft would have to transfer the voluminous amounts of code, a lot of it Artificial Intelligence that would need to move from china to the u. S were not talking about something that could be taken care of in a day or a week it will take many months to actually move that code. So microsoft has been given, according to people familiar with the situation, one year which it can do that and that is still a very significant task that it faces and one key reason why microsoft is against a small universal company that could have entertained taking on that task, but they will have a year after the close to actually transfer all the code to the u. S. Answering, of course, so many of the National Security concerns that have resulted in the u. S. Saying we are going to ban tiktok unless, unless, it is used to the u. S. , that is the u. S. Version, of course, of the service. Now theyre focussed in part on value. Doesnt mean that other things wont come in. Doesnt mean that President Trump wont introduce perhaps things unexpected as he did earlier this week when he talked about key money, something that still many people are trying to figure out exactly what he meant but there would be a u. S. Taxpayer that doesnt currently exist in the form of tiktok. That would be beneficial to the u. S. Treasure, one could argue right now value. Theyre bracketing where the values might be. If youre bytedance at this point. You dont have a lot of leverage youre not having a lot of value in your business unless you can restart in some amount of time or dealing with microsoft to get the best price you can well see where that ends up as a business, carl, you know very well, of course, is growing rapidly in the u. S. , has 55 million daily average users continuing to go up who spend an enormous amount of time on the platform one key reason why microsoft may well be interested in continuing to pursue this transaction getting to a value, at least, that would accept. Back over to you right as the clock ticks, david. Thank you for that. Our next guest is the cofounder of the social phenomenons vine and hq trivia. Russ joins us to talk more about the future of tiktok russ, good to see you. Welcome. Thank you for having me weve talked a long time about the strength of tiktoks algo, the way in which it becomes a cultural force in its communities. How long can they run into these land mines like they have in india and now here yeah. I think what were seeing here is tiktok stumbling as theyre trying to expand internationally. If they want to succeed here in the states they need to create a distinctly u. S. Brand and bring in u. S. Leadership and hopefully this deal with microsoft or another acquirer comes to fruition which i think it will. How do you think it answers the concerns of those who were most hawkish in the white house, at least look, i love the microsoft and tiktok deal for a few reasons. I think tiktok in america is a good thing we need more competition in tech, not less and it remains to be seen if tiktok is the right acquirer and if they can actually scale the service reliably and responsibly. But, im also very concerned i think here we see how trump can yield his power to drive a more favorable deal for his administration and having influence and leverage like this really early in a deal could mean that tiktok could become trumptok, right this influence over an acquisition could mean influence over how user data is collected by our government and that comes with a lot of potential problems rus, julia boar steen here. You said competition is good in this space now speaking of competition, just today Facebooks Instagram unveiled reels, which is their tiktoklike tool thats going to be part of instagram how do you see that playing into this do you think reels will be a real competitor to tiktok and could draw people over especially in the midst of all this controversy absolutely. I think facebook and instagram have done an incredible job in creating the types of features and functionality that video creators really want tiktok was able to evolve the medium by innovating around the creation tool and bringing lip synching and dance videos to a new generation theyve also been able to innovate around distribution with their algorithms, so they can pair creators up with their niche audiences without having people search and hunt for different accounts to follow to develop a follow graph, right . Following an account on tiktok isnt really necessary you just browse through the feed and you get content tailored to you. Thats incredibly powerful in terms of distribution. Theyve always been able to innovate around monetization they successfully bring in advertising and virtual gifts with Live Streaming. So creators can monetize this way. I think instagram has a challenge on their hands in competing with tiktok around distribution and monetization for creators im looking forward to see what comes of it and im also excited about new players in the world of social media and video. Well, rus, how do you think that this evolving competitive setup filters into the conversations and in the price that Microsoft Might be able to pay for tiktok just because tiktok came so fast in terms of getting to massive scale that you almost wonder if thats a reminder that Something Else could come along pretty quickly as well. I mean, does tiktok have some kind of a mote there that they can protect . I think their mote is frankly pretty weak. There are lots of opportunities for startups in this tech landscape to build something new, to innovate around Creation Tools, to innovate around distribution and monetization. So, apps like byte are bringing real competition to tiktok and im a huge fan of byte and what the team is doing there. And i think another way to compete here is just by bringing people something thats never been done before so we should expect to see a lot of activity in the Competitive Landscape here rus, im curious for your perspective as a ceo of a company that sold to twitter that was part of twitter for a while and ultimately folded in and almost disappeared vine was a really big deal back when twitter bought it and then theres sort of questions about whether it made sense for twitter, whether the corporate ownership it didnt sort of push the company to continue to innovate and be its own thing. Im curious what that makes you think about ownership by microsoft and about what that could do to innovation and to the relationship with the content creators yeah. So i think tiktok will find a really comfortable home with microsoft. And i think the administration will find that microsofts privacy and data practices will appease them but the question remains around talent will creative engineers, creative designers and product people run to microsoft to work on tiktok . I think given the pandemic theres a lot of ambiguity and uncertainty about job preservation so maybe being part of microsoft is a good thing now days that job security is great and working on an innovative product like tiktok could be appealing but weve seen big corporations stumble and not really bring that creative innovation thats necessary to keep a service like tiktok thriving. So, i think it will be an interesting next couple of months as this pans out. Finally, rus, we just showed your tweet from a few days ago where you said im feeling a vine comeback. Were you just spouting off there . Or do you think theres real possibility . Twitter so, look, i cant say whether vine will or wont come back, but i think we should expect to see a rise in creative experimentation around mobile video and social media broadly i think competitions that can evolve the mobile video Creation Tools beyond just dancing and lip synching involve content distribution beyond the typical follow model and in monetization, of course, for creators beyond advertising and virtual gifting and Live Streaming that these competitors will see success in competing with the big players so, i think it positions twitter very well in this Competitive Landscape against facebook and potentially microsoft. Well, vine still has a lot of cult status even in its absence. A lot of us miss it everyday rus, thank you hope youll come back later and talk about this evolving chapter. Thank you, rus yusupov. Thank you. The ceo of Pharmaceuticals First on cnbc as the dow continues a nice gain here back in a minute welcome back to squawk alley. We have the ceo of another earnings mover meg . Mike, thanks so much. And joining us from tvea its good to see you lets start with the news of the morning. Reaffirming the outlook for the year tell us about the impacts you have seen from covid19 on your business so far and really how youre modelling the year ahead. Yeah. We are very happy about the performance of the first half. We have shown great resilience in manufacturing and of course we had numerous challenges all over the world, but our Manufacturing Organization has risen to the task and we have been able to keep on supplying were the worlds biggest supplier of medication we supply around 200 million patients everyday. And the pattern we really saw, we saw some shifts in demand patterns we had extraordinary high demand in europe in the fourth quarter, basically in march when people started hoarding at the pharmacy level, generic products and so on and then we saw a reversal in the Second Quarter where during the Lockdown People went less to the doctor people went less to the hospital, less t