Morning. And the nasdaq is down by 182 points a lot of this is whats happening in europe right now. You dont just look at the oversees market but were going to take our queues from what is happening there. You can see the ftse down by 3. 4 and the other markets are down by more and a lot of this is coming in the last few hours. They could be considering a second lock down as covid cases there have soared theyre back to the levels in may. Theyre concerned about whats happening with the number of cases and the hospitalizations admissions doubling every 8 days theyre now looking at 6,000 cases a day and again theres been some talk of a potential second lock down there now they want to make sure that schools can stay open and that some businesses could stay open but just the threat of that, the potential for the second wave coming is enough to push all of the stocks in europe into the red. If you take a look at whats been happening with travel and leisure stocks they were down by 6 earlier in the u. K. And some of the stocks trading here this morning, Carnival Corporation down by now 6 you can see Royal Caribbean down by 4. 7 and then other pressure coming on Southwest Airlines and norwegian cruise lines and wynn resorts. Theres been some concern about the bank stocks and financials under pressure this morning as well. There has been and its nice to see you we have been watching bank stocks this morning after a troef trove of Confidential Bank documents. Large banks moving massive amounts of funds over a period of 20 years. This despite red flags over the origins in the money hsbc, jp morgan chase, Deutsche Bank also on that list and Standard Chartered and bank of new york melon but bank stocks are down across the board this morning. You can take more away from whats happening in europe in terms of what the Stock Movement is today more than the report over the weekend meantime, the other big developing story over the weekend, President Trump agreed in concept to a deal where tick to be will partner with oracle and walmart to become a u. S. Based company delaying the ban that was supposed to go into effect last night. It would own an 80 stake in the company sort of and well try to break some of this down in a minute tiktok tweeting out this message, we are tiktok and we arent going anywhere. I dont know how much time you spent looking through this but its fascinating to try to understand what exactly this particular transaction means it doesnt very much look like i dont think what the administration said they were looking for which was a full sale it looks like what i just said byte dance would own 20 of it at the same time, the way theyre fireworks notwithstandi theyre using some of the language, it could be others that are currently owning part of byte dance, they will be issued shares in this new company and the argument ultimately is that if you recount those shares, plus the walmartoracle shares that they collectively would have the majority over byte dance. Plus the ipo. But youre getting into percentages of percentages im going to take your word for it that if you do the math its 53 . We switches seats again. I if any place would really love this deal, its france because it is statist, its picking winners and losers Larry Ellison is a Campaign Contributor and its Rewarding Companies that you like and its the perfect sort of government statism. I was going to have to download tik tok. It was going to be my last chance its supposedly as good as facebook. I never downloaded it and i wasnt in a rush to do it yesterday either. Lip syncing and dancing. The most interesting thing is not this particular transaction that i know it had so much focus on itself is that a number of Chinese Media which invariably when you see the Chinese Media come out, the expectation is that its suggested by the government. The expectation is that the fang companies should be regulated the same way byte dance is being regulated around the world so that in every location it should be run by effectively a local partner. But its the beginning of what a lot of people may be worried about which is what may be a backlash related to trading. I know people think this is very stattish. I would say from the respect of where the local servers are kept, in china, thats long been an issue they wanted servers keptlocall so they would have control and access to the information. Adding that additional layer of saying it has to be run by a local partner, it doesnt seem like a huge stretch from what many of the Technology Companies already agreed to do to be willing to operate in china. You know, he is pretty good at finding solutions. Out of all the people in the administration you said that before i mean, this is truly threading the needle to get this done and maybe its going to happen somehow but its like, i mean, it really is convoluted. The 52 , the ipo the servers are here it goes back there you know, i dont know heres my other question, maybe go ahead. Maybe you answered this last week but having missed out on some of what is happening, is this solution acceptable to the chinese because for a long time china was saying forget it, wed rather see it just go under and close shop than be owned in whole by a u. S. Company. Is this sort of threading the needle it is. But theyre going to try it is. Retribution probably and other areas. They didnt have to give up much and they have been able to maintain the value of the company. If youre the founder of byte dance youll make a lot more money from this deal relative to what microsoft was proposing so from a just straight financial perspective. So you can look at this critics of this deal would look and say if china is willing to accept this this is not such a great this is not such a great deal. People are supposed to be unhappy on both sides for it to be a good deal and then this education. Im confused about that as well were going to move on but did we get stiffed again last night . I show Schitts Creek won a lot last night you can never just say the name of the creek without saying the creek, if you dont say Schitts Creek youre up Schitts Creek jimmy kimmel kept saying it over and over and cbs at the bottom had to always put it, but it won whats wrong with you it won a lot but we again i dont even think we got a mention . Did you even hear the word squawk box squawk box. The news emmys are on a different day, joe theyre separate. We have to move on. That was 30 seconds. We have to move on you go ahead andrew. Thats way too much fun. Lets talk about the other issue of the weekend which has to do with wechat related to tiktok because theres a larger question about the role of the administration in these very decisions and whether they should be the ones making these decisions almost ad hoc on their own and thats where a u. S. Judge came down halting the Trump Administrations ban on downloads of wechat. The move blocking the Commerce Department from forcing apple and google from removing wechat from their stores. The users that filed a lawsuit to blocked the ban raised serious questions about First Amendment claims shares of Parent Company ten cent were down 1. 6 in hong kong overnight but theres a larger question to be asked about the role of this administration which is to say typically when transactions get done, theyre not negotiated by the president of the United States or the Treasury Department or what have you. We hisstorically havent had that we had systems in place that are supposed to actually prevent that kind of thing from happening. Lets have more on this from eunice because she can tell us about what were eluding to. We just heard about tiktok and we chat and now an update on chinas blacklist. How does this all fit into this. Yeah, well, i thought id weigh you in a little bit more on what youre talking about with byte dance. We were trying to get some verification about that 53 . They would not verify it at all but they just reiterated their position which is that byte dance will have 80 of Tiktok Global shares. So the company had put out a statement to try to clarify what they described as rumors and i think also perhaps to market to the chinese public that this was a good deal because one of the points was that byte dance would have a great share of the ownership. That the algorithm and that the technology was going to stay in chinese hands. That the tax payment or the key money of 5 billion wasnt actually key money instead they said that this was taxes that would accrue over a number of years and they also made a point in the chinese public to say that the idea that they would Fund Education in the United States was something that was totally new to them. They hadnt actually heard that part even though theyre committed to education. The way they have seen this deal is that it is positive for byte dance. That its positive for the Chinese Government picking up on andrew, what you had said in state media, everything has not been giving credit to the founder. Instead of giving credit to the Chinese Government and today theres a piece saying that the approval was because of the Chinese Government and holding this up as a model and a mechanism that can be used for a lot of i. T. Companies where theres a Data Security issue and a model that can be used around the world and theres been plenty of stories about how comparing the tiktok deal to the way apple is forced as well as other u. S. Companies are forced to work with a local company especially when it comes today at a storage because of national ecurity. All right did you know that it was going to be about a lip syncing app. But we are just agonizing ver. State media has been throwing out apple and fedex as possible targets for this unreliable entity list that china has but i think what is also interesting there is that theres a lot of talk but so far, no action because the Chinese Government also knows that if it were to clamp down on some of the American Companies that really does effect their jobs picture and they are very concerned about that and how it relates to the economy. Eunice, that was going to be my question on that. The reason that they may not want to name companies, particularly somebody like an apple, thats a huge part of the jobs picture is that the entire issue that you think is protecting any of those companies right now . And the disruption and uncertainty that that would bring to the economy is the reason why the chinese have been holding off. I mean, i talked to a lot of different people that said the way the Chinese Government would be doing this is like drawing up a list of American Companies and seeing which ones have a replacement that would be suitable and we dont know who is on that list. So sometimes i think its just to scare people and to get the u. S. Business community to put more pressure on companies all right thank you. Eunice finally were not were going to take a much needed break, i think. Im exhausted. Exhausted. After 17 minutes. 16 minutes in 17 minutes in. Hey, the one thing i would say is that seems to be the issue that is kind of universal for every government looking at this the Trump Administration pointing out that they think this tiktok deal will lead to what was the number they used . 25,000 jobs. Thats the only time that you hear any of the rhetoric start to die down a little bit in terms of saying were going to punish them. Well, if it means theres going to be jobs at home, thats the only time you ever hear them back down. Yeah. Somebody else invented a social media company, yay someone besides us. Its very hard. Ill just make a point its very hard to believe theyll ever see 25,000 jobs in the United States from tiktok. Come on come on, be positive. Do you remember when President Trump stood with the ceo of foxcon in wisconsin. You cant just be lets be half full today. Half full. Count how many people work at facebook and then call me and tell me that you can get 25 when the algorithm is being made by engineers in china. I thought you liked croni capitalism or was that me . That was you. Never mind, so i like it. All right, guys, news breaking overnight that nikolas founder is stepping down as executive chairman that stock is down its plunging down 28 this morning. This is only about a week and a half after gm bought an 11 stake in the company well tell you what is behind the move and show you gm shares as well when we come back. Right now as we head to a break, take a look at the u. S. Equity futures. This is what were paying attention to very closely this morning. The dow futures down 520 points. S p futures off and the nasdaq is down by 190 declines by 3. 4 for the u. K. Market right now thats coming as the u. K. Is saying its seeing an increase in covid cases and well talk more about that in a little bit too. Concerns about a second wave is probably a big part of the reason that youre seeing the sell off this morning. You can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Welcome back the breaking news just doesnt end. This is additional news breaking overnight. The founder of Company Nikola is voluntarily stepping down and giving up his board seat this move comes after short seller accused him of making false statements in order to cry to grow and secure partnership with auto makers he says that milton agreed to relinquish 4. 9 million that had been granted to him in august. Its down by 29. 5 this morning. And he intends to defend himself against false allegations leveled by outside atractors he has been appointed chairman effective immediately. Took an 11 stake in the company and check out gm shares which by the way were up pretty significantly on the news that it had taken the stake in nikola theyre down by about 3. 8 this morning. Well see what comes out. They are making it about the company. Either they have a proprietary technology or not. Well see what finally comes out. He was worth a billion dollars i dont know if hes below that at this point. I might get out of there too especially if some of it has been hyped a little. I think phil, we need to talk to phil and diamler and others are pretty well healed that are, you know, this is not tesla. If you paint it or maybe it is but they portray it like, you know, they have a barrier to entry like tesla has for some other places but i dont know its the beginning of the beginning and then we had mary bara on. I wonder whether his leaving has something to do with gm being up happy about the situation and the fact that he helped put that deal together and is now running the company. Right. Yeah. All right if you just i would agree 100 yeah. All right if youre just waking up this morning, you really missed some unbelievable stuff at the top of the show before we were told to stop. And last month on technology, everything happened. August 22nd. Go into cyclicals and industrials and you dont think that its too late to do that. No, actually, if you think about whats happened since Early September thats before the overnight sell off thats been dominated by the Consumer Discretionary perspective. Amazon Information Technology and Communication Services so its really been that the mega cap winner take most companies that have taken the market down, industrials, materials, and financials are flat during that time period. Theres all sorts of risks i didnt expect it to be about tiktok or wechat. Thats what i love and then i said, did you hear the one about the ceiling . Do they not get any its over their head anyway early morning, joe. I guess it is i guess it is. I shouldnt even try do you think this has run its course i dont think you do, do you well, not for the Technology Sector itself necessarily because if you look at whats behind all of this, the data has been getting considerably better so i listen to your show and brians show for awhile as well and i get one of the two numbers that i really liked overnight. One was the korean export numbers that went from negative territory to positive territory for the First Time Since the Covid Recovery and those were much stronger than respected so if you recall we had weak global trade activity because of the trump trade war. That was beginning to rebound before the covid pandemic hit. We got very low global inventories. You got the makings of the very strong rebound we get the flash pmi for september this week. More of the regional fed manufacturing surveys showing a pick up in Capital Spending related plans. So i think that you have the makings of a decent strong recovery even the inflation measures. Part of what i wrote about this weekend was called recovery and reinflation because prices were starting to head up as well so to me, the economic recovery is gaining momentum and thats behind why the other sectors are doing well and some of the work from home stuff is starting to sprawl out. Yeah. I would definitely be