They say that they are going to begin a phase three trial later this month, but until they have that data, and they havent published any of the early data either, the long term effects and the safety of the vaccine remain unclear ive been talking with experts this morning from the childrens hones hospital of philadelphia and he says that there is no way that they could have any evidence that the vaccine works at this point. And it is based on technology that is not dissimilar from what other Vaccine Developers are working on, essentially using two other harmless viruses to ferry genetic material from the coronavirus to produce a immune response against it. J j is pursuing one vector using that same approach so not a lot known about this and experts are concerned that russia is approving this before they know if the vaccine can really protect people and if there are any safety concerns that would turn up when the vaccine is administered to more people they say in the United States and other places we cannot cut corners and that is why were running these Clinical Trials and thousands of participants to ensure safety and that the vaccines actually protect us against the coronavirus. Meg, thanks for laying that out. Still a lot of question, but investors focusing on the positive today meantime numbers out of boeing just crossing. And were looking at july orders and deliveries from fr boeing and yet another reminder of how weak the commercial Aviation Market is worldwide for the month of july, boeing reports orders of negative 52 planes, all of the cancellations last month the 737 max, the year to date order book negative 836 planes, that means the backlog has now dropped down to 4496 planes boeing did deliver four aircraft last month year to date, it has delivered 74 commercial airplanes, but again, jon fortt, a negative month again for boeing, negative 52 planes on the order book. Phil, thank you rough numbers. The s p meanwhile though approaching an alltime high amid and aiming for its eighth straight day in the green. Joining us now, bob dahl great to have you this morning good morning. What do you make of this . The market certainly seems to be shrugging off the questionable news are we near a top here, how do you position yourself . I would not have believed almost any month this year that you would tell me wed be where we are today that is new alltime high in light of covid the market is obviously marching to the drum of the fed is providing unbelievable liquidi y liquidity, fiscal policy, going to get more in my estimation the old fomo, you know, i dont want to put my money in cash and get zero, bonds are not really attractive, so i guess ill buy some stocks. That is what is powering this thing higher fundamentals as you point out are mixed, but general improving. Look at how much less worse Second Quarter earnings were than expected. So a lot of cross currents here. My view is all these positives, i think we have to raise some questions. Weve come a long way in a short period of time and while i dont see big down side, i think that well go back to the churn that we were in for much of june and much of july are. Side wise, up some day, down some others. Okay, bob, that is a good way of laying it out we dont know a lot, but there are a few things we do know. Chances are well have some elections this year in november. And there is going to be some controversy leading up to that we know how markets can react to that and we know that weve got trillions of dollars potentially in stimulus that is either come or also coming what are the consequences marketwise to those things that we do know so i think the market is assuming that well get the fiscal stimulus. If we dont get it, that will be a disappointment to the market so i think the market will check the box when that happens. The election is a bit of a different story. Markets tend not to pay a lot of attention to the elections until the conventions and were knocking on that door. I think the market to some degree is fearful of a democratic sweep which has a high probability because of taxes. So i think that it would put the market back into the churn process as it watches the polls and debates. No doubt that this recovery in terms of the s p back almost to the old highs, pretty surprising, hard to predict a few months ago but if you look back at the experience after the 2009 market low, we were up 50 by august after a march low. Right now were up about 50 in august from a march low. Obviously that was not at a new alltime my back in 09, however that level of recovery before the economy looked like it was back on its feet maybe is not unprecedented. And my question would be can we use that as a means of handicapping how things go from here in terms of a general up trend with choppiness ahead or do you think that it is too hard to make that call . Mike, im with you. I still think that were in a bull market secularly and i think a new cyclical one started march 23 but bull markets dont go straight up. So the churn is not where you get big double digit percentage declines, it is just backing and filling so the market can catch its breath so fundamentals can catch up we could quibble with the fact that Second Quarter earnings were better than expected, but third and Fourth Quarter earnings estimates hardly moved up at all. But i hear your pattern that you are talking about and of course we were getting fed easing all during that period and now the fed has put the pedal to the medal so quickly, how many more things can they do, if you will. Hey bob, this is deer dwridre do investors just stay put, what is the next catalyst if you think that there is another leg down so i think this is where the action is, not so much about how much do i have in if were in a churn period, it is more about what do i own. While up until the last few weeks, it has all been about big and defensive and growth now were seeing, oh, well, value can have two up days in a row. Small stocks can do a bit better cyclicals can do better. I think you need both in your portfolio. I know that is hedging a bit, so if you force a gun to my head, what do i want to own here to labor day . I want to own the new leadership, the value, the cyclicals. I think there is more to go there. And that is all probably signaling that the economy will be okay. Bob, we just showed a chart of thero rouussell 2000. And i believe it was up about 6 catching up last week. So what are you doing, are you buying more of those small caps . Yeah, down cap. Whatever your mandate is, more down cap i can own mega large and mid i own more mid and less mega than i did a few months ago. And finally, what do you do about bnd bonds if you are playg at home . Most people arent buying individual bonds, probability bond funds but who knows what are in those things these days as ratings are all over the place is there something that substitutes for bonds in a time like this, do you stay in cash, what do you do i put a big question mark on bonds no question about it like if you had told me the stock market was at an alltime high and that ten year treasury would be giving me 60 basis points, i would have said one of your numbers is wrong. So my view is the risk is well see higher yields. Remember we were at 90 basis points a couple months ago i think that were going back to 70, 80, 90, maybe 100 on the ten year before it is over and therefore i dont want a whole lot in treasury. So i want more cooperates than treasuries if tax conditions permit, i want more munis than corporates, but i wasnt to be underweight fixed income hard out there for investors trying to include that bob, thank you all the best. The ceo of adobe is up next with surprising data online spending dont go anywhere. I see an unbelievable opportunity. I see bestinclass platforms and education. I see awardwinning service, and a trade desk full of experts, available to answer your toughest questions. And i see it with zero commissions on online trades. I like what youre seeing. Its beautiful, isnt it . Yeah. Td ameritrade now offers zero commissions on online trades. You say the customers maklets talk data. S. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g, everybodys 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. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you preorder the new Samsung Galaxy note20 ultra 5g. Welcome back in just the first seven months of this year, online spending is already pretty much surpassed all of 2019s total. We havent even hit the Holiday Season yet that is according to new data out of the Digital Economy index a and. And good morning, thanks for having me. And great to have you for multiple reasons adobe because of your breadth, you have an excellent take on what is happening in commerce in general. And Digital Commerce specifically so lets start there as some areas of the country begin to reopen, some areas of the world begin to reopen, what kinds of trends are you seeing from this surge in online buying we saw right through the entire pandemic as people recognized that the only way to transact with customers was online, those who already had a commerce presence saw a frid tremendous uptick. And those who didnt put a significant amount of urgency in creating that. The kinds of goods that were trance acted first online had to do with essentials, but i think that you are now starting to see every single good transacted on line and we expect the amount of commerce will exceed all the of 2019 so what has that meant for a bow adobe . If you are trance acting in person, certain things that you need to do the digital version involves your tools so while i imagine some segments of your business are hurt, others are thriving. How is that breaking down . First when you look at all three of our businesses, the creative business, the intention to create at home and everybody who has a story to telling, weve seen a tremendous surge in people wanting to create content at home. And that applies to commerce as well because everything that you want to transact on line of scrimmon express it appropriately being able to do a physical signature and translate that now to digital signatures, we saw tremendous influx in people wanting to do digital suggests but really the core of that business as you know is our digital experience business where we help people with having a presence online, their. C do tm business, what they are doing in their mobile apps, put their merchandise online, and doing predictions with it. So weve seen tail winds across all three of our businesses. And i think initially you saw a little bit of advertising spend that was impacted, but even now, you are starting to see that go up as well so overall were in a very fortunate position in that all three of our businesses are seeing tail winds. Digital media is a big area for you guys so i have to ask you about tiktok it is interesting to see how this social network, this app that so reliant on media has become a big deal socially and a big deal politically what is the minimeaning of wher gee politically and artistica y artistically lets start artistically. Everybody has an inherent desire to tell their story. And what social media has allowed you to do is even if you werent somebody who was wellknown, i think social media is like tiktok, it allows new kinds of influences to be able to create their content and with the algorithms that Companies Like tiktok have to make that front and center for new consumers. So to be able to get your story out to a much broader set of consumers, it used to be restricted with other mediums to either people who are your friends on systems like facebook or instagram, but now that is really getting exploded. And so we just continue to believe that with all the newde people want to create and consume and especially since people are at home, the amount of content that is being created is exploding i think as it relates to the geopolitical, the emphasis of what were hearing is how do you make sure that there is privacy associated with the data and where is that data stored. And so again in that particular context, Adobe Solutions are really being used to make sure that the person who is providing that data owns the data and that it is secure so that is the way we look at it. As it relates to what happens to tiktok, your guess is probably as good as mine good morning, this is deidre. Given what you just outlined the artistic side, the benefit that it brings to creator, i wonder if you would give us your opinion on whether you think that microsoft, if it were to buy tiktok, could continue the momentum that it has seen. Well, i think a lot of these social media, they tend to be are you satisfying a particular consumer need. And the consumer need communicate i think is going to continue to be viral and it will continue to explode. Im not as privy to what those algorithms are, what is the code associated with it and what might happen in a transaction. But i think that this innate desire to communicate i dont think that were seeing the end of that. Mobile devices are not just consumption devices, they are creation devices and i think from the adobe point of view, we look at the member, at styluses, and we think they tell the story and that is what we focus on and i wanted to ask you about adobe corporate footprint. I believe you upped your Square Footage to about a million square feet. Do you have a date for employees to return and how are you thinking about your real estate footprint especially as other Tech Companies scale back their expansion plans or dont renew you leases well, i do think that were all revisiting what it means to be having the kind of footprint that we have and it is probably fair to say that if we had been in this we might have thought differently about how we want the physical footprint that we have but a couple things. Firstly, we are not in any hurry for reentry so were said that our employee safety is first and foremost, until testing is more previous land, until prevalent l continue to make sure that employee saefree safety is firsd foremost when we had smaller site, i think that those will be ones that we actually underinvest in because we dont necessarily need all of these satellite offices. We will continue to have our employees work from locations that they prefer but were not going to have the footprint that we had. However, i think that when it you look at our larger footprints, people like san jose, what were doing in San Francisco and other centers around the world, i for one continue to believe that having a great physical location to have that collaboration that is needed, i would say that projects which are well under way, weve seen tremendous momentum continue. When you are trying to create a new project, you want people around that water cooler, you want that sense of urgency i feel like productivity is impacted a little bit in that. So well continue to have location, they will be different in terms of how they are set up, the structure associated with it, the capacity, but it is all areas that were working through and frankly im just going to learn from what other giants have done in that particular space rather than unnecessarily bring people back to work early in case there are any risks associated with that and that is an important point that we tend tooff look when were in a period like this, talking about everything changing there is some value to physical locations especially if you are kicking off projects tell me about the process to boarding employees you continue to grow you have to manage people. How is that working, are you learning anything in this period that will carry over what we did when the crisis first struck, we said that we would not layoff any employees the company is doing exceedingly well so we reprioritized. And now we have a College Hiring program because we hire the scary smart people and what will be interesting is the entire internship was virtual, so at all times of day and night i was meeting with these interns across the globe as they were apprenticing at adobe. I think what will be interesting is how do you instill in them the values that were so wellknown for when they engage with people, they understand the values of the people and were working hard to figure out how as all of these new people come on board, how do we instill in them the values, evolve the culture bringing their smart ideas to bear, but that is something that i think is ahead of us and as social distancing and the ability to dulactually have peoe in safe locations happens, it is something that were continuing to work on but that is ahead of us. We have a great crop of new hires coming and well focus just as much as we did in the past on assimilating them and making sure that their great ideas benefit adobe. And what is your philosophy on m and a during this period . There are some opportunities out there certainly. Your stocks currency certainly hasnt gotten any cheaper. It is holding up quite well. Were thrilled with the portfolio of what we have. Most companies would be fortunate to have one business that has the tail winds that we have we have three. For us as you have followed us for a lonk tg time, looking at t just the business that we might be interested z iin, but the pee and culture is so critical so we again put a little bit of a pause. Because until we can look at people, understand what the culture is, that is the intellectual property that we have but that is starting to open up so were extremely excited about the port grol that we have we dont think that there are gaps but were always on the look joutd for Great Technology and great people who can complement our offerings. Great perspective from Silicon Valley appreciate you joining us. Thanks for having me. As we head to a break, airlines you s outperforming buo transports, avis budget, kirby among the leaders on the day, all up more than 3 . And also a few new highs among transports, including jb hunt, union pacific. This follows u. P. S. And fedex. Keeping an eye on those. And the nasdaq which after starting in the red has just gone positive on the day welcome back here is your cnbc news update. A majority of american duadults are not confident that the november elections will be conducted in a fair and equal way. 55 say they want all americans to be able to vote by mail republicans are more likely than democrats to doubt the elections fairness. Confirmed cases of coronavirus now number more than 20 million around the world the u. S. Makes up about a quarter of all cases even though new confirmed infections have bae been trending down and in beirut earth moving equipment is still remove dag brie n debris after the deadly explosion. The death toll is now 163. Economies say the blast could wipe up to 25 off of the countrys gchlts d. And youre uptodate. P. And youre uptodate. Lets turn back to the markets here bob pisani has a look at what is driving todays action weve been talking building the cyclical sector, but then they bought the dip in the Growth Stocks as well youre right. The mini rally in the cyclicals, the value stocks continues but mega caps were coming on strong take a look at what weve been talking about. The bottom line, for the last three days, banks, energy, industrials, what we call cyclical names have been rallying at the expense of technology and this is happening again today. Biotech has been weak for a while here at the open the mega cap tech names were all weak, your fs facebook, your amazon. But now it is very much mixed. They are starting to buy them here in the middle of the day. And still though the travel and leisure stuff is doing well and that is a good barometer of peoples confidence in the reopening story. Intercontinental hotel which owns holiday inn oig, th, they a steady improvement and that is what people want to hear ro Royal Caribbean had positive comments the other day s p is knocking on the door of an historic high the old high 3386, you see how close we are about ten points away but dont kid yourself, it has been largely Technology Stocks leading the rally. Since that historic high, tech up 10 , consumer disstrecretions up because amazon has been a monster. Health care modestly contributing but all of the value sectors, the cyclicals we talk about all the time, a much tougher time. Mega cap tech is moving the market since that old high here. And amazon, 45 since february 19th apple, facebook, netflix, microsoft, these are the big names we talk about all the time and everything else, the rally in the last three days, industrials, banks and energy, a good three day run, but keep it in perspective banks still an important part. All right, thank you. And after a break, buyer for tiktok a lawsuit from bytedance and news out of intastacainstacart. Come on in, were open. All we do is hand you the bag. Simple. Done. We adapt and we change. You know, you just figure it out. Weve just been finding a way to keep on pushing. Weve just been finding a way to we did it c g. crowd cheering [narrator] wherever you start, snhu is where you can finish. crowd clapping crowd cheering here we go. [narrator] and its it. [group] yay [narrator] you did it, high five Southern New Hampshire university. [man] that gets a hug. laughing look at that masters degree, i did it i did this for my children. I am very proud of myself. [narrator] finish your degree at snhu. Edu. music anncr give customers access to precisely what they want, when they need it the most. With adyen, the payments platform that delivers convenience for all. Adyen. Business. Not boundaries. Instacart has struck a deal with walmart, deliveries now available in oklahoma and they call it an initial launch that covers not just grocery, but more of their catalog including pantry item, electronics and home decor this is a big deal because walmart is tlargest grocery chai in america and the missing part in instacarts growing dominance. They now have eight of the top ten grocery chains in the country. Remember, it did have whole foods, but that partnership went around after amazon acquired the chain and beefed up its own Online Grocery offerings there you see it, the landscape to discuss this and more, editor in chief of the verge is joining us i find this interesting that it comes just a few weeks after jeff bezos named amazon competitors, one was instacart and another was walwalmart so them teaming up, does that present a real risk to amazons grocery offering but perhaps beyond that too . Yeah, i think it absolutely does amazon has been trying to grow that grocery business for a wrong ti long time. The big question for all of these companies, it comes down to the logistics model walmart, costco, their physical 34r57b9ss are operates mized for people shopping in them. Amazons logistics businesss warehouses are optimized for pack alleging and shipping quickly. Instacart has built their r reputati reputation, but it is how fast can they get in and out of the warehouse and ship the actual products so well have to see how it that plays on with wall martz a walmart. And instacart can get stuff at your door within 24 hours, an hour sometimes and an interesting trend weve seen is some of the food delivery Companies Like doordash, uber, postmates going beyond food delivery into groceries and essentials do you think that they could become real competitors in the space . I do and i dont. I think with all the delivery services, weve seen that their model in the prepandemic era was built around losing a large amount of money very quickly to build market share and the model doesnt scale well when there is a surge in demand and you are losing more money for every delivery that you make so i think that they have to be profitable in the face of demand which is weird to say admittedly, but the truth about all these services that we see and i think that Rate Stabilization will lead to i think some refugee allegization of the services where they pick markets where they can win as opposed to being national. And this is jon i think doordash is dangerous here we were talking about their new partnership with walgreens. I think skalg mattecale matterso a weird component, if im doing a big grocery order, im not sure i want somebody delivering that in their camry. Like i expect a trurefridge ratd truck to drive up. And it seems like there is value to that, but im getting a little order from walgreens or some food delivered, that is different. I think that there is subscription possibilities embedded here. I mean, this is going to take some time to play out and it is not clear what instacarts structure is, right . Yeah, instacart is your classic gig economy play they have contractors who are literally shopping in stores for you. That comes back to my point earlier about the logistics of the physical plants. You have to go into a walmart store, i dont know if youve been in a walmart recently, they are designed to make you buy more stuff, not efficiently getting items in to a car and out the door so if the bigger operations come in and say were going to efficiently do this, a truck will come up and seem official, you do have some opportunity for consumer difference differentiation, but i think that it will come down to rates. Can they manage their delivery cost structures without killing themselves and to be clear, up until this point, none of them have really managed to do it and i guess it raises the question, is this a winner take all market or do there need to be two players because right now we see many, many players going into the space yeah, and the economics of almost every one of these service companies, uber, doordash, instacart, it is based on burning cash to a winner take all chingt all position and i think jeff bezos named his competitors because the scrutiny is very high they dont like to say they have competitors until there is an anti trust hearing and then everybody and their brother is a competitor. So if the regulatory dynamics are forcing competition, i think well see weird breaks in the market it is a tricky spot and im liking forward to seeing some financials out of instacart. And i want to switch to the tiktok saga that continues with parent bytedance expected to file a lawsuit against the u. S. Government huawei also se sued the u. S. Government and it hasnt helped their case and tiktok, the clock is counting down. What do you think is the most likely outcome here . I do think the most likely outcome is a sale. Weve seen reports that there are other suitors in the mix like twirttter the big difference with huawei, the United States government pressed charges against huawei and it found it gimtsity of some problematic acts and it did not want to have Telecom Companies in the United States invest in physical hardware at the Network Level from huawei. And that is a clear problem to understand the data could get sent back to china and you could enable surveillance at a mass scale none of that has been found with tiktok there are some problem, but it hasnt come to that level yet and i think tiktoks argument im assuming part of it will be procedural, but part of it will be substantive you havent shown a harm here yet. So you dont think that tiktok is as much of a Security Threat and that i would also ask you about wechat, the other app being targeted in these tensions because a lot of Security Experts say they do present a real threat especially because of the way that companies have to operate in china. The government has access to whatever data if they need it. Ive heard from all the Security Consultants i think they are right there is some amount of threat here to be calibrated and discussed and potentially mitigated. We have not been shown what this threats is from tiktok, from wechat obviously the Chinese Government is involved. And wechat is used as a tool of surveillance in china. But here, this is the United States the government has to make some showing about why it is barring companies from operating here. In the case of wechat in particular, ten cent is augull e media com. They own 40 of fortnite if you go after wechat and say any traction is a problem, the next move you are looking at is ten cent, you are looking at fortnite and that is a bret bpretty big f you havent shown a meaningful harm that people can understand. My issue with this, and ive said it before, lazy government. Right . If Data Security is the core issue here, dont just issue a blanket rule that anything that has made in china on it is all of a sudden forbidden or banned. Develop a system for clearing apps, clearing products to make sure that they are safe. Isnt that what Good Government is supposed to do . You set up checks and if it clears the checks, then it is allowed. Instead of this one by one youre allowed, youre not, looking at china there are plenty of other countries that nefarious forces could go there that arent china and feed the information back to china if we dont focus on the core issue of Data Security, right . I think that is exactly right. And lazy government is one way to phrase it i think our government is actually being reactionary in a way that is detrimental to businesses they are making policies based on threats that they have heard about not on actual policy outcomes that they want to achieve. In the case of tiktok, maybe the policy outcome that you want to achieve is data transparency, United States corporation seen as its oversite, algorithmic transparency which is critical they should be made to be transparent. You can achieve those policy goals without holding a gun to the companys head saying that the government will come in and force a sale based on unarticulated harms. And i think that is the case here and in the absence of any of that happening in the next 40 days, that kind of transparency and clarity about rules, im wondering about the sale process presuming there still is one multiple different fronts. Clearly it is a valuable asset if permitted to operate here you can argue about strategically who it fits for, what it should be worth. Do you think that there is any of the buying interest that has been expressed by microsoft or others is at least in part abouw dont want to allow a large and successful 234e9 work fful net down, lets recould you rescue f interests . I think all of the buyers the American Companies would tell you there is a little bit of patriotism in here this is a good outcome would be for us to rescue it. Ive heard that already. I think the actual reason they want to enabout any up 30 billion or whatever is definitely based in self interests. And if it wasnt, shareholders would have a lot of concern about why you would spend that much money but that said, i think one of the challenges for buying tiktok is that running a large social network, its scale presents an enormous amount of problems. You are in control of speech of young people, you have platform moderation problem, advertising problems we know what those problems look like they happen on twitter, facebook and youtube. Wanting to be in that Business Needs to come with an appropriately high up side and i think all these companies will have to articulate what they think that up side is certainly it is a sgaga that we continue to watch thanks for being with us and coming up, californias eryfrney general on the ub lt ruling stay with us you say the customers make their own rules. Lets talk data. Only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g, everybodys 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. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you preorder the new Samsung Galaxy note20 ultra 5g. Hitter sto shutter stock is plunging after announcing a large chunk will be sold by the companys founder and executive chairman who also happens to be its largest shareholder. Todays move lower pretty much on track for its worst day in years. The stock remains firmly positi w20 after notching a new 52eek high a week ago. Well be right back. At u. S. Money reserve. Weve helped hundreds of thousands choose the best precious medal for their retirement portfolios. And many are in profit positions today because of those choices. So, dont wait until the next crisis. Get started secure your financial future today. Recently, Congress Passed a bill that created a better solution. Its a new type of ira that allows you many of the same tax benefits of a traditional ira, but without the same types of exposure to market volatility, its called a selfdirected ira. Were talking about real solid physical gold just like the gold im holding in my hand. Securing your savings with gold or silver and a selfdirected ira is an easy way to protect your financial future. So you dont want to wait for the next market crash. Call and ask the experts at u. S. Money reserve to send you their free information package. Its full of everything that you need to know about Getting Started on your selfdirected ira today. Youll be glad you did. Its a bogus argument the court saw straight through that what worker doesnt want to have access to paid sick leave . What worker doesnt want to have Unemployment Insurance at a time of covid19 crisis what worker doesnt want to know that theyll get paid for overtime if they work 60 hours in a week or 12 hours in day its a bogus argument. Whats worst about the argument is uber and lyft try to present a false choice you dont have to give up those rights and benefits to have flexibility. Theres nothing in California Law that requires a company to remove flexibility in order for these people to be classified as employees and get those rights if they decide to shut down their apps in california versus bringing on 100,000 plus troodrr as employees it seeps like every one loses. Drivers and riders are you worries that could sort of shift the sentiment here and legislation could be seen as a negative thing instead of a positive one you realize what you just said the example youre portraying here that the only way for uber and lyft to operate successfully is to deny their workers their rights and provide them no benefits, to mistreat the workers. I dont think thats a Business Model that leads to a lot of success. They are saying the only way to make money is take it away from workers by not paying them benefits theres no reason why during the covid19 pandemic in the cares bill that the Congress Passed to give relief to a bunch of americans who lost theirs jobs that taxpayers had to foot the bill to provide Unemployment Insurance to lyft and uber drivers because they didnt have in because uber and lyft didnt provide any. You dont think they will go that far in. Any Business Model that relies on shortchanging workers, in order to make it, probably shouldnt be anywhere whether california or otherwise. I dont believe thats what it takes for uber and lyft to make a living mr. Attorney general, uber ceo or in the past couple of days called for a sort of new model for benefits and support for economy workers. What hes presenting has contractors with some guaranteed benefits but i imagine a new model could work any number of ways there could be employees has anyone approached you about that and have those conversations moving anywhere or is this more of just posturing from the companys about presenting new ideas that arent really being talked about. I think you do have to wonder why is it that it takes more than ten years and lawsuit for two Innovative Companies to come up with a new idea on how to provide their employees with the benefits they are entitled to. Theres nothing that stops uber and lyft from providing these benefits and services right now which these employees are entitled to which the court in california recognized. There are conversations going on i think certain these Companies Want to move themselves out of this legal predicament theyre in i believe they want to continue to do business in the largest state in the nation. California they got to do it the right way. You got to follow the rules. They were caught they were caught theyve been doing this the wrong way for too long and its cost American Workers in california and its cost our taxpayers because as i just said in the tcase of the cares act where we provided Unemployment Benefits to gig workers, theres no reason why taxpayers should have to do what companies are required by law to do. Kind of taking a backseat to the legal proceedings. Do you get the sense that the companies in your side are trying to figure out where the starting line is and where the leverage is for those conversations or are they substantive at this point . Im not i cant tell you any conversations were engaged in with regard to the lawsuit but ive heard, as you have heard, there are conversations occurring among a number of folks in the industry and outside to try to resolve the situation. The law is clear if you dont give that individual who does work for you that independence, you cant classify them as independent contractors. If you control their activities to the point where they are employees, you got to treat them like employees and employees are entitled to certain protections, rights and benefits. Both lyft and uber have been evading the law and they got caught the judge made it very clear its time for them to join the rest of the Business World in doing this the right way mr. Attorney general, you said that these companies are innovative, they should find ways to make their drivers employees. Theyre already bleeding billions of dollars and some argue in the marketplace that they just dont have the money to turn every one into an employee you also say they were caught. Theres a number of exemptions under ab 5 including dentist, lawyer, construction contractors. Why are you making the distinction between drivers and others in other independent contractors . To give you a complete answer here, i love you to show me these execs at uber and lyft and show me where they live and wha kind of car they drive and how they travel around be world. I guarantee you they are not doing it the way a Small Business that might be bleedsing money would do it. If they are truly bleeding money, its not because their workers are entitled to have their protections and their compensation be fair and according to the law to the point of how theyre doing business, whether its fair to to do treat them one way or the other, california is pretty clear if you are working for a company and doing their bidding, youre an employee. If you are truly independent of that company and theres a test to make it clear if they are or not. Then youre an independent contractor and youre responsible for those benefits and protections not the company that reaches the contract with you as an independent contractor i think its pretty clear. The judge wasnt deceived at all. He made it clear that he said the harms are not abstractions they represent real harm to real working people mr. Attorney general, we appreciate you coming on and sharing your perspective thanks to you gets get to scott in the half welcome to the halftime report. The push to new highs as stocks approach another milestone the big question, is the rotation for real. Joining me for the hour are stephanie link, josh brown and megan shue let geese to wul look at the major
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