Transcripts For CNBC Squawk Box 20240712

The dow down by almost 1,000 points the decline of 1. 8 . S p by over 8 the nasdaq a miracle come back after a laydate rally weve been bouncing around positive territory right now, the dow down around 14 points, s p up about seven points and the nasdaq up about 70 points. We are talking about a town month for the markets, we are looked at four sessions in a row. Thats the longest losing streak looking at these numbers, you are talking about these lower numbers. Month after month i think we had april, may, june, july, august are all up. Stocks only go up not in september. In an Election Year it can take on significance. The nasdaq can move. We can see it down 400 or more points can that close higher again today . Thats a good move you could look at it midmorning and then it seems like it is not the tale at this point kind of the log. Faang, tesla and the leadership move. Apple made the rally yesterday too. Gold is supposed to go up bitcoin, supposed to go up weird. Thats where you think it is just money i was digging into the dow. The component was under significant pressure and saw the climb more than 5 the industrial names really getting punished that could trace back to if there is a second lockdown those are skpektsed to be recovery stocks those are the ones that faced a lot of pressure yesterday. Talking about that exact point, the drivers of this and what is moving the market. It is that potential for lockdowns. Boris johnson expected to announce tighter restrictions. That will happen today Julianna Tatelbaum joins us in london with more on that good morning very good morning. Boris johnson is set to address the house of commons shortly and then address the nation at 8 00 p. M. Uk time hes expected to announce new measures among those is a 10 00 p. M. Curfew for pubs and restaurants and a move to Table Service only we could be cutting attendance at weddings from 30 to 15. We may get guidance to those working in the office and urging to work from home if they can. The telegram saying the second shutdown slammed in reverse the times, new 10 00 p. M. Curfew a huge amount of attention in the uk on this this comes after the warning yesterday from uks chief science testifyic advisor and medical advisor saying if cases keep doubling every seven days, then the uk is on pace to see 50,000 cases by midoctober. We saw the cases jump from three to four. The numbers reported 4,000 cases. The third day out of the past four where weve seen these cases. To put this in context for june, july, august taking this back to markets, we are seeing the rebounds for the most part. This comes after a plunge yesterday. The main benchmark stocks plunge 3. 2 travel and leisure continue to selloff. A huge amount of concern around what comes next and the impact of these new restrictions. Guys. Help us with this little piece, which is, i think a lot of investors not only worry about what is in the uk specific but that say to themselves is new york or other parts of the United States or europe just weaks behind what is happening in the uk. Speak to that. I think the measures being taken in the uk up until now are more relaxed than in the u. S. Right now . Thats right. I just spoke to Brian Sullivan he made the point where he lives, bars and pubs are not reopened at all. We are going out and there are rules around different venues. The uk has taken a different approach we have reopened more parts of the United States. It sounds like where you guys are, things have been more stringent. Clearly here, theyve sent this big warning that if nothing is done to change, we are headed towards a dire situation come november nobody wears masks in london right now, right there are rules in different venues but Walking Around the street in public, it is not a requirement. All right thank you. Tesla is holding its annual share holder meeting in Battery Technology day presentation. Last night, musk tweeted downplaying the short term saying the announce wont reach serious highvolume production until 2022 tesla shares fell after that tweet. Also said tesla intends to increase battery purchases from pan sonic and without taking action, they would foresee significant shortages. Shares of roku jumped when it was agreed for comcast. 20 million shares works out to the stake in 4 of the company a little tougher to do in this situation where the Roberts Family controls so much. What do you think more recently, and then ge pepsi there was another one too. Dow orone of those those around Financial Engineering and a bit of an effort spinning off and what assets, would you try to spin if that was going to be your effort im not too sure they would be ready to spin off. They spent so much time putting it together. The ministayathome play, the broadband business during the pandemic has been knocking the cover off the ball businesses like nbc if you are dependent on sports or a theme park put them back togetherle and they dont know. Possible, the pieces could be worth more, together with the sim foe knee you got to get back in here with the delay saying any share holder would tell you the pieces are worth more than the stock is reflecting thats where they see things in agreement. That stock is undervalued. It is following the pandemic. It may have. Prior to the pandemic, it was at levels it had never seen before. They almost got all the way back maybe the stock gets rerated here that would be the potential benefit he maybe shines a lot on it the issue for everybody right now, you look at a charter and the pure plays by default, the multiple they are capturing is higher. There is a potential almost in marketing or education that you could get a rerating on the way nelson approaches it ive seen him do that a little before kind of interesting weve seen it happen before. We get a lot of attention for such a small stake about your stake, i think. After those contracts you sign being here 12 or 13 years. It is a tiny amount. Yet, you get all this media attention. If i were comcast, i would go. Well, nelson, what do you want exactly . It is not that much really then there is the voting control. Youve seen it in the past you can shake things up a bit. Sounds like a lot of money not that much. 0. 4 okay we are talking about it. By the way, Parent Company of cnbc and this network. We should probably point that out. Again. Coming up on the other side of this break, lets show you stock futures right now. Where they are headed. Down on the dow but the nasdaq powering back. S p 500 higher as well well talk big moves in travel and leisure and whether we are seeing a return of the lockdown trade. Check out shares of the electric truck maker, nikola following the abrupt resignation of the companys executive chairman short seller accused the company of making false statements well have more about this story at 6 30 a. M. We are back after this the big events are back. Xfinity is your home for the return of live sports. Zoom is back in style. Who could have guessed going back to work would cause the virus would spread not safe to go to the gym so we are back on a peloton. What else is there to do when you are stuck at home other than watch tv and movies over the web. Yesterday was pretty calm. Less than 2 . Among the stayathome winners time to separate the stocks benefitting and those that had a temporary windfall and the performance of the selloffs like zoom, way fair, compared to the winners like match really that partner at 18 47 also with us. You got very offended when i said something about that pelt you have it is growing out. I like it better you think about that ill go to greg. Greg, youve been expecting some of these changes and the gap between stayathome or growth to narrow. You still expect that to happen. Maybe more slowly. I do. Let me state unequivocally, if we see another spike, these companies are going to put up other third or fourth quarters im looking for a little longer term just as happened for 2010 and 2012, tech underperformed and overperformed as traditional sectors outgrew them from those who have been temporary or lead to the baseline those with a higher baseline in that last bucket will be those that roulg with the experience in the structural shift or are posed to the e retailers. And those that could grow the quickest just looking at your notes, would you say we are in the market remains nearterm vulnerable you think we have more to do i think the market has a longer term, whoever the president will be. Clearly, whats happened is weve had five consecutive months that have moved higher. You climb those five steps and you run, it is okay to rest on the top step the first thing youll do is reach for a nice bottle of water and if you think about it, growth and megacap growth, microsoft. Thats your bottle of water, you are not going to push for the sugary pepsi it is a good sign late in the day. Watching apple, microsoft, salesforce again today thats where youll find stability in the market. The old adages, you have a price target or a time frame but never give both. So 3,600 what is your time frame on that . You mean in the next 12 months or 12 years . No, no. I think well get it quickly within the next three months. I hear everyone come on and say well this is a healthy correction it is not just a price correction where we quickly snap back like in 2017. So for the price earnings to chop and move. That is more healthy than well see in the last couple of years indicating the markets to recover. We made a lot of progress and we havent seen that. I can do 500 in my sleep the other one when the vichl spikes, reading when all of those went to croatia are there true concerns happening here i think there are we are building the uncertainties. We were worried about a second spike and whether or not we are going to get a stimulus we need to empower job growth and consumer confidence. You no we are worried about the attention being deflected to the Supreme Court nominee. Instead of taking care of risks, we are adding uncertainty to our plate. Not to mention, we are worried about whether or not there will be a resolution to the election. As these come off, well see more normalcy. We expect that to continue to be very volatile. Not like there was a lovefest going on before this now, well get another impeachment and get maybe 34, 35 justices, so it is 314 justices i dont know, what does it mean for more stimulus for coronavirus . They are just at each others throats, right it is not good cant believe the death of a Supreme Court justice really does impact the stock market at this point based on that stimulus, if you connect all the dots thank you. Well see you and check back soon becky. Poopoo platter. Havent heard that in a while. Coming up, cocacola ceo giving an update about going into seltzer and Barry Dillard will speak to you lets look at todays biggest premarket gainers and the nasdaq amazon coming up in second place, then sirius, apple and facebook [ thunder rumbles ] [ engine rumbling ] [ beeping ] [ engine revs ] uh, you know theres a 30minute limit, right . Tell that to the rain. [ beeping ] for those who were born to ride, theres progressive. Time now for the executive edge cocacola ceo says the Company Plans to release the first hard seltzer. First update since july. Here is what quincy told cramer last night we are going to follow the consumer in the old days, people were more regular meantled. There wasnt such a blurring about categories the consumer are trained in looking for new things releasing hard seltzer under the topo chico brand i have yet to try any of these but taking places by storms. Love them i do they are light i have enough vices they are light. I love all the flavors i like the white cloud can you get a little 12 pack variety. Do you remember zima . So difference thats a beer it was heavy and filled you up like a big beer does it taste like bartels and james . No. What does it taste like, you go from drinking soda and say, wow, this artificial sweet ner will kill me before anything you get used to that ands it great. A little bit of alcohol. So bowl and spring was your gateway drug so does andrew. He said i do drink sparkling water. That was his vice. Ive heard sparkling water is bad for your teeth it is you should drink it with a straw. Not with a paper straw. A metal straw. A reusable straw. This was the Culture Shift those first six go down so smooth why you laughing it is a joke we have a big story well take a closer look at General Motors investment of nicola after the resignation of the companys executive chairman and a programming note alpha is back for a special anniversary with a special guest. Visit delivering a look at yesterdays s p 500 winners and losers as business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Welcome back to squawk box. It has been 13 days since nikola announced the partnership with gm until the ceo resigned. With us, former ceo of ford markets. Great to see you help us unpack this. What is going to happen to nikola and what happens to gm . Lets talk about gm the reason they went into this partnership . They need to drive down the cost of their new batteries and improve the viability of the electric business. They get more scale of these batteries that will help drive down the costs it will allow them to use some capacity of the dedicated plants and electric vehicles. They get to share in the upside of the nicola equity with the issues coming up with nikola, mary barra is probably asking many questions and their board is probably asking questions such as did my team conduct a full investigation of the team and talent. Does she want to dedicate engineering, manufacturing and resources to the nikola project. Second is, is the nikola brand now damaged weighing in the brand and weighing the market or the risk. So thats the question do you try to get out of the deal at this point. One of the questions i tried to ask mary is how they had come up with and they felt with the valuation of nicola that so much of the transaction revolved around them taking a stake in the business and doing the work and diligence on the company and not just getting an out Source Company to pay you to do stuff, they were taking a piece of the pie here she is getting with her business development, head of manufacturing and saying listen, i want to double check this due diligence. Steve gersky will become the chairman there he worked a long time with mary. Hes probably getting on the phone saying, hey, is this a real company is it yojd a prototype and Business Plan to helpful fill the obligations of this arrangement. Right now, i think she has to double check on all of those things to make sure she wants to continue with this commitment. Becky has a question for you. Hey, becky. Hey, mark, good to see you. What are marys options . Could she unralravel the deal is it possible to even unravel this to my understanding, it wasnt finalized theyve put no investment here theyve said they would provide those and do some of the engineering and manufacturing of the products she has the option of finalizing this agreement and dedicating the resources to work with nikola and work this out there are a bunch of offrampps what happens to nikola if gm walks away from this if you read their sec disclose yures the source around driving the company you have to ask yourself the question, were they misrepresenting on that and what were they vesting in there is a lesson here for any investor they have to ask themselves the question, is the technology or service real and is the governance real. When you go under that white hot light. You have to have very mature processions for control, governance and disclosure. Here is the several billion dollar question. Now that you are also not just an operator but in the Investment Business with ppg, what price would you buy into nikola given that it still doesnt have a product and revenue associated with it in answer to your question, andrew, right now, i wouldnt buy. First, he has to resolve the doj and sec investigations and focus on the Business Plan and deliver the projects i would invest until they have the investor day that clarifies the capabilities and plans that put forward the milestones that layout until they have a day like that where they can clear the air, i would not be invested. Always a pleasure you know the ins and outs better than flib. Great to talk to you great to talk to you again too. The latest battle over the Supreme Court. And election uncertainty both of those ad to each other what does it mean for the markets and your mng dont miss our exclusive interview thwi Barry Dillard thats what my dad does. Good job, michael ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our Financial Futures. Its the simple joy of washing your hands,. Without ever touching a faucet. Its the Little Things that matter. Thats why we create moments to feel kohler clean, every day. Coming up, early voting has already started in parts of the country. Our next says the election uncertainty is starting to weigh on investor sentiment. Check out shares of am Zion Williamson up 2 after bernstein upgrades to a buy creating an attrtiacve entry point. 3,012. 18. I felt like. I was just fighting an uphill battle in my career. So when i heard about the applied Digital Skills courses, im thinking i can become more marketable. You dont need to be a computer expert to be great at this. These are skills lots of people can learn. I feel hopeful about the future now. Welcome back, everybody. The fight over the Supreme Court position is in full steam. Good morning, becky youre absolutely right there. Who controls the senate determines whether the next president will be able to push through his policy priorities, not just for the Supreme Court but also within his own cabinet and also on capitol hill that is why youre seeing so Many Political ads in this election cycle already blowing past projections Advertising Analytics have reached a billion dollars this cycle. The latest tally for tv, radio, digital ads is 3. 5 billion. More than half of that is going to just five states. North carolina topping the list at 205 million. Iowa 175 million followed by arizona, maine, montana. In each of those states and at the National Level democrats are outspending republicans. In just over a weekend, the group demand justice pledged to spend 10 million in the fight over the Supreme Court on the right the Judicial Crisis Network said it would spend 2. 2 million on ads specifically targeted to vulnerable gop senators and said it would also match democrats dollar for dollar now our own polling with change Research Shows only 43 of likely voters believes President Trump should fill the Supreme Court seat if he loses the election in november 52 believe that he should not and that includes a majority of independents, young people and women. Becky, all critical demographics back over to you ylan, thank you very much for more on the election uncertainty and the impact of the markets, lets bring in dan clifton. He is strategis researchs head of policy research dan, watching the action yesterday. There were some people trying to speculate and figure out how much of that is the idea that the tensions in washington are boiling over, that they are going up because of the passing of Ruth Bader Ginsberg and the push to try to fill that seat. What do you think . Its interesting, becky were 40 something days away from the election and here we are. Youre starting to see a lot of the pressure that builds in when you get close to the election in a very close president ial election and Senate Election Ruth Bader Ginsberg was almost the catalyst that exposed the transparency of this election. We have a pandemic, recession, mass protests and we have the election all happening at the same time. Thats very rare and now youre starting to see the fault lines. Can the government pass the government budget in the next nine days or so . Are we going to get additional fiscal policy . It looks like its less likely today after Ruth Bader Ginsbergs unfortunate passing because its going to be harder to find agreement. You have International Relations going on is trump going to do something on china before the first debate you saw iran sanctions go into effect yesterday there are crosscurrents after a big run up in the stock market i would add the last point is that a lot of our clients thought it would be negative for the republicans to move forward on the Supreme Court and that means that the possibility of a democratic sweep would increase. If thats the case, you will get additional spending and tax increases. If you have big gainers in the stock market, you might want to take some off the table with a 23 Capital Gains rate rather than 43 Capital Gains rate in 2021 theres a lot of different crosscurrents. I think the uncertainty is here. The unfortunate passing of Ruth Bader Ginsberg has exposed this. I havent thought we would see any additional stimulus package or aid package get passed before the election, but the idea of the government shutting down, i didnt take that very seriously. Do you really think that theres a chance that we see a Government Shutdown nine days from now so, first, i didnt think that we were going to get stimulus either so i was surprised by some investors reaction yesterday that they were holding out hope that theyre not going to go away without doing it on the government budget, there seemed to be an agreement amongst both parties on how that was going to proceed on friday at 4 p. M on monday we got a differing budget conclusion. It stripped out farmaid that the republicans had been requesting now i see the democrats are moving forward and theyre going to pass their budget and theyre going to put it in Mitch Mcconnells lap. Theyre going to say take it or leave it my guess is he will ultimately say take it. We will avoid a Government Shutdown that was an Unexpected Development that happened yesterday in the middle of everything else. What do you think would happen with the markets if we did see a Government Shutdown right now . We learned that its temporary. You go back to the shutdown that happened two years ago at the end of the year into january the shutdown from the coronavirus is probably much greater impact where youre shutting down the whole economy. Clearly its an extra headwind and another level of uncertainty as we head into the election youd rather not have that selfinflicted wound my sense is were not going to shut down. We may see some headlines in the next couple of days as the two parties wrangle over it and given the relationship, get over the Supreme Court hearing. Its a littlebit of an extra head wind. Dan, i hate to push you on this were out of time, we have to run. Would you tell investors to put money in here or wait and see . I would say be patient. If the Opposition Party wins the presidency, stocks usually go down into the election thats not about republicans or democrats. The election certainty is going to go up a contested election, well have to work through that after the election as well in that respect, looking for something in a month is probably not the right place to be. Long term its going to work thank you, becky thank you good to see you. Andrew okay thanks, becky. Coming up when we return, a big two hours ahead. After yesterdays session finished off the lows, here are where futures stand at this hour were back in the green across the board. Dow up 10 points s p 500 up about 10 points dont go anywhere because we have a huge show for you including kyle bass, barry di diller diane retired and opened that pottery studio. How did you come up with all these backstories . I got help from a pro. My financial professional explained to me all the ways nationwide can help protect Financial Futures in peytonville. Nationwide can help the greens get Lifetime Income because their son kyle is moving back home and could help set up a Financial Plan for mrs. Garcia. And he explained how nationwide can help mr. Paisley retire early and spend more time with his pal, peyton. And their new band. Exactly yeah. Dont forget the band. I havent. A good education takes you many different horizons and that sticked to my mind. So, when 1 a day came out, i said, why not . Why not just utilize that resource. And walmart made that path open for me. Without the 1 a day program, i definitely dont think id be in school right now. Each week for me in school is just an accomplishment. I feel proud every step of the way. But a resilient business iyou cacan be ready for it. Re. A Digital Foundation from vmware helps you redefine whats possible. Now. From the hospital shifting to remote patient care in just 48 hours. To the university moving hundreds of apps quickly to the cloud. Or the City Government Going Digital to keep Critical Services running. You are creating the future on the fly. And we are helping you do it. Vmware. Realize whats possible. Stocks on the move prior to a hearing on the hill with the fed chair and jay powell well tell you what you need to watch in todays trading session. Thats coming up. Will beijing approve oracle and tiktoks deal. Discussion is straight ahead london, Prime Minister Boris Johnson is talking today well get the flip from Scott Gottleib the second hour of squawk box begins right now. Good morning welcome to squawk box right here on cnbc im Andrew Ross Sorkin along with becky quick and joe kernen. U. S. Equities, things have gotten a little bit better than where they were. Now weve gone into the red on the dow, that is nasdaq powering higher s p also looking to open higher, about 9 points higher, but the dow has been swinging around back and forth youre looking at it go from the red to the green just before the break we were in the green before so thats where we stand right now. But, joe, it was quite a day yesterday. Yeah. Yeah one of those days where you you know, theres times i dont need to look at my phone, and that was one of those days i did not see the 900 points i heard about it later im kind of glad that i didnt see it. I was watching. Whats that i was watching tick by tick and the nasdaq, too after a couple of tough weeks. Anyway, at one point the dow was down more than 900 points before it cut the losses. I saw, okay, now 700, thats better little better. Then on the way back to see the close at five and change was a pretty good comeback, dom chu. He joins us now with some of the stocks, the individual names that were behind that selloff. I guess any of them that helped us come back, dom . I mean, so like, becky, those of us who were in the office hanging around saw the 900 points and then saw the kind of gradual comeback at the end of the day. There was a bit of dip buying. Joe, to your point, theres been a different theme thats been developing over the past few weeks which has been leadership to the up side and down side the dow industrials, s p 500 and nasdaq, were all still negative if you take a look at the most recent highs that we saw just in the case of the last few weeks, remember, for the dow its still not a record, but those are record highs for the s p and nasdaq, those moves lower here have been roughly about 7 lower from those highs for the dow, roughly 9 for the s p 500 and about 11 for the nasdaq we know thats been the big decliner in that span. If you take a look most recently at whats been the focus on the down side moves, it has been the Megacap Technology stocks and o other dramatic themes. Facebook and amazon are among the biggest decliners in the market move to the down side over the course of what youre seeing here. Other ones to watch, momentum bases. Lulu lululemon down 21 and halliburton down 17 Megacap Technology, oil, Energy Stocks and some of the momentum stocks powering the move to the down side. Now take a look at what happened yesterday with the buying power picking up later in the session. These are stocks people put on their shopping list. Its fastly, zoom communications, peloton and docusign these stocks all went up anywhere 4 to 10 in yesterdays trading. Becky, joe, andrew, as you take a look at the type of pull back were seeing, the types of stocks that are going back on the list are the work from home, stay at home names that weve associated with the covid19 pandemic curious to see if that continues. I think were waiting for liesman. Dom, the other thing sorry, beck were going to talk about powell i was going to point out the yeah. Some of those stocks in the dow yesterday i thought were very interesting watching caterpillar roll over, dow, chevron, some of the industrial names watching the pressure from that. Is that something because people are worried about Worldwide Technology theres no doubt. If you look at the way materials and energy both performed yesterday, it was indicative of what weve been seeing some names have been equally focussed at one point we saw a multimonth winning streak for oil prices all of that comes with a spike up of covid cases in asia, latin america and headlines coming out of places like czech republic, spain, europe. All of those things really lead you to believe that if there is Economic Uncertainty coming up again, oil and energy complex, industrial type stocks are the ones that take a bigger hit. The only thing i would say, we havent seen a huge amount of movement in has been the Home Builders of a regular to see them im not sure, becky. The industrials and energy had been outperformers over the last few weeks as people rotated into value. They were, again, not really immune in yesterdays selloff. You did great, dom. You spoke so long we fixed all of steves problems. Before we get to steve, you have gotten good at the whole audio visual thing do you there. If this doesnt work out, you could easily switch to we have a low pressure system, a front coming in. You point the right way. You could switch to weather so quickly with the skill set that youve developed at this point. Heres i will because you and becky and andrew know about the way our set is set up here we actually have plasmas and images that get projected on these screens. I havent spent a lot of time in front of a true green screen, which is what a lot of weather folks use. You could now. Right now i can see squawk box. You can i can touch it. No, no, this is not a green screen this is a plasma tv. When i was standing in front of that wall so you really cant so you dont have that skill. All right. Youre stuck. Im stuck here for a while. I need to spend more time on the green screen. Our benefit and viewers benefit. Messing with trump, bigly, fastly thanks see ya now fed chairman jerome powell, Steve Mnuchin will testify before the House Financial Committee this morning Steve Liesman joins us youre at home we are still at the we just never know, right . Until you get back are we ever coming back, do you know thats a different story. Im waiting for the call, joe. Im just waiting for the call. Im doing what im told. Im staying home here i am. Im going to talk about fed chair jay powell and treasury secretary Steve Mnuchin. They will take to the hill over growing pessimism that congress ask reach it both will tell the House Financial Services committee that the economy has improved but theyre going to link it to aggressive Government Spending and trillions of assets from the federal reserve. Powell will say, quote, Household Spending looks to have recovered 3 4 of its earlier decline likely owing in part to federal stimulus payments and expanded unemployment an his testimony says i believe a targeted package is still needed theyre ready to meet a bipartisan agreement the hearing takes place a day after the numbers show it will balloon from 190 to 104 by 2021 and 190 by 2050. That will drive up debt service to 1 3 from 1 5. The treasury secretary said now is not the time to worry about shrinking the deficit or the fed balance sheet. One of the big issues is the one about whether or not the treasury is taking enough risk with the money that congress appropriated steve, that comment that mnuchin made about now not being the time to start shrinking the balance sheet, that was a pretty widely agreed with statement from most financial followers, right . It is, and it also comes with sort of simulations or models that were done that if you dont spend the money, actually deficits end up being higher because you end up with worse economic outcomes and, therefore, less tax revenue. Steve, thank you. Good to see you. Bye. When we come back, what the tiktok drama means for Big Tech Companies that are trying to do business in china. And less than an hour, iac expedia chairman barry diller will be our special guest. Were going to talk about the media landscape, big tech regulations and what it all means for the markets. Speaking of markets, lets check out the futures at this hour right now the dow is at the flat line indicated down by 1. 7. The futures. Never mind, now its positive. This comes after a big decline with the markets down 500 points s p up 9 points. The nasdaq futures indicated up by about 79 points squawk box will be right back. Welcome back to squawk box. President trump saying he will not approve a tiktok deal if china has any ownership of the company. Oracle meanwhile says the new company, Tiktok Global, will only be american owned though currently bytedance has said it will own about 80 for more on what this drama could mean for Companies Currently doing or trying to do business with china, i want to bring in dan primac axioss business director and Joanne Lipman dan, im going to start with you. I want to tell my colleagues, becky and joe, that im having a little bit of sound trouble so im going to ask them maybe to take over in just a moment but, dan, start with us right here, which is, do we think that this transaction ultimately is going to happen given where trump has come out we also now have clearly the Chinese Government saying they dont even want to do this deal the way its been constructed. We have people on both sides claiming two very different deals have even been agreed to how does this even happen . Thats a great question this is the messiest deal. Youve covered deals for as long as i have for over a decade. This is the messiest single transaction ive seen in a decade i do think this is going to get done its the only solution to the requirements that trump and beijing has put on this. If youre bytedance, youre stuck between a rock and a hard place. Imagine bytedance the treasury says, these are the changes we want to your proposal. Bytedance says, okay, well make all of them. After that youll hear trump say, maybe thats not the deal beijing not liking it either i do think it probably gets done but, man, this thing continues to be a mess joanne, in terms of how this deal gets done, a, are you in agreement with dan that it gets done and what does that even look like . Yeah, andrew, ive got to say, this deal dont you feel like this deal is a metaphor for 2020 it is a mess its ugly. Nobody can agree whats going on and we have no idea how its going to end up. So, yeah, i do think there is an incentive to get it done, but to back up for a secretary, lets think about why we were supposed to do this deal in the first place, for security reasons. The United States was concerned china would get its hands on private information of u. S. Citizens this is going to be an increasing problem china is only increasing its high tech output, as are other potential adversary countries. This is something weve really got to get this straight this is all for American Security we were supposed to get our hands on code and algorithms it doesnt look like well have that, we will have a Minority Stake and we dont have control so, therefore, it doesnt seem to be actually ticking any of the boxes that it was supposed to to solve this deal in the first place. Right dan, can you try to settle this for us . Maybe its unsettleable because nobody knows the answer. A, do we really think well have access to the algorithms eventually, once, as the company likes to say as bytedance likes to say, once it becomes Tiktok Global and the investments are made, effectively the investments are distributed to all of the other investors . Thats a year from now i will say a lot of things can happen from now to then. For starters, the thing that would behoove everybody, lease the term sheet there is an actual deal. Reporters like us are talking to people who say they have read the term sheet then they have different understandings of what theyre reading. Given this is a government deal done by an elected official, theres no reason not to put it out public we can know. Where we have the algorithm, yeah, if this is going to run off of a server, it can be borrowed and live there. The question is whether it can refence it or not. Oracle says it can china is saying, were not giving it to them because they have to save face also the control piece also is interesting. My understanding of the deal, again, without the term sheet, is that basically the current shareholder structure of bytedance gets transferred over to Tiktok Global which means bytedance, ceo, its employees would have a piece but the majority of shareholders would be u. S. Once you have oracle and walmart joanne, lets talk about the bigger implications, what do you think happens to American Companies in china right now theres a story in the wall street journal today, cisco has pulled out of china. I dont believe their business is that big but could be impacted we all talk about apple. We all talk about a backlash against other American Companies in china how should we think about that yeah. The wall street journal piece that you reference is the one that also talked about china has a black list of American Companies that it could retaliate against. Obviously that is a concern, but at the same time, you know, chinese consumers as well as Chinese Technology companies rely on a lot 6 American Technology that is kind of a big gun that so far there is a dance. This is a much larger war. This is a little bit of a skirmish that were talking about and a much larger war. Literally i think the United States needs to have a coherent strategy that we can all gather around and understand. Its very murky right now, but we need to have that strategy because as you point out, there are implications not just for tiktok and oracle and walmart here, but for american Corporate America at large right dan, finally the other question i wanted to ask you is legally do you think somebodys going to try to challenge this deal in the same way that clearly the executive order on we chat is being challenged right now, which is to say this has been a somewhat undemocratic system in terms of how this deal got done. Its one of the few if only transactions i have ever even reported on where effectively the government negotiated the transaction and whether you think there are going to be folks coming out of the woodwork to try to block the way this took place well, i mean, for starters, they should. Tiktok is the first one, right, Andrew Tiktok filed a lawsuit tiktok thought over the weekend it had a deal so it didnt have to go forward. Although it hasnt withdrawn it so its still there. Treasury im sorry, Commerce Department only delayed that sort of block by a week. If were in this same position by this time next week, tiktok is blocked, the way the people described is the process of the e. O. , theyd probably win like wechat did the e. O. S were very sloppily written. Courts dont generally like telling the government that its wrong about Technical National security issues. Okay. The debate and soap opera continues. Dan, joanne, appreciate you joining us with your perspective this morning becky . Thanks, andrew. When we come back, weve got a list of stocks to watch including amazon, which was upgraded this morning. The stock is higher on that news got the details right after this. Right now as we head to a break though, look at this mornings winners and losers in the s p 500. Autozone leading the way for the winners right now. Squawk box will be right back. Time now for aflacs trivia question which Biotech Company was founded in 1980 as applied molecular genetics the answer when cnbc squawk box continues aflac now tell me, what does aflac do . Aflac pays you money directly to help with unexpected medical bills. And is Aflac Health Insurance . No, but it can help with expenses Health Insurance doesnt cover thats right. Are there any questions . Coach yes . Can i get one of those cool blue blazers . You know i cant play favorites. Alright lets talk coverage. Its go time get help with expenses Health Insurance doesnt cover. Mmm hmm get to know us at aflac. Com but inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Now the answer to todays aflac trivia question. Which Biotech Company was founded in 1980 as applied molecular genetics the answer, amgen. Applied molecular, am, genetics amgen. A couple of stocks to watch this morning. Autozone reporting quarterly profit of 30. 93 per share compared to a consensus estimate of 25. 01. Revenue also beat forecasts. Same store sales rising better than expected 21. 8 and amazon upgraded to outperform at bernstein with the price target of 3400 the analyst there says the stock is down 16 the last couple of weeks. Thats an attractive entry point. Nikola remains the stock to watch after the electric truck maker shares plunged after the resignation of Trevor Milton separately the wall street journal is reporting nikola will turn to an outside supplier to provide batteries for the semi truck supply. When we return, the cdc in hot water again after flipping on airborne virus spread well ask dr. Scott gottleib about that well also get an update on the growing hot spots cropping up in europe, in the continent squawk box coming right back mama from the first loving touch, everything that touches your baby should be this comforting thats why pampers, the 1 pediatrician recommended brand, helps to keep your babys skin dry and healthy so every touch is as comforting as the first pampers. The 1 pediatrician recommended brand welcome back, everybody. A potential for more lockdowns in europe. U. K. Prime minister Boris Johnson expected to announce tighter restrictions today Julianna Tatelbaum joins us today. Reporter good morning, becky. U. K. Prime minister Boris Johnson will give a message to the house of commons among the new measures set to come into effect are hitting the hospitality sector in particular were due to get a 10 p. M. Curfew for pubs and bars were looking at a move to Table Service only we could also see a cut back in the number of people allowed to attend weddings from 30 to 15. Potentially changes around guidance from working from the office with the government encouraging people to work from home when possible now this statement comes after yesterday after we got a stark warning from the countrys chief medical officer and chief scientific advisor warning that if the number of cases continues to double every seven days as they are now, then we could be heading to a situation if by mid october when weve got 50,000 cases per day. They said yesterday that we have raised the security warning or the warning around coronavirus from a level 3 to a level 4 which means the virus in general circulation and transmission is high or rising exponentially the chief scientific officers said numbers are increasing across all age groups. The biggest increase has been among 20 to 29yearolds followed by 30 to 39yearolds we are awaiting the statement from the Prime Minister. Tonight he is set to address the nation at 8 p. M. U. K. Time markets are on the mend here in europe we have seen stability come through equities yesterday we saw stocks plunge on the back of these developments and markets are, no doubt, waiting further clarity the travel and leisure sector getting hit hard were looking at what this means for travel around the region becky . Julianna, thank you very much joining us right now to talk more about all of this is dr. Could the gottleib thank you for being here today. Thanks a lot. Lets jump right in this concern about whats happening in the u. K. And more broadly in europe, a huge reason for the market selloff i wonder if this means well have a lockdown in europe. If we see a second lockdown, it could come here. What do you think based on what you see . Are we in the same position as europe or have we been taking things more slowly and more cautiously im not sure weve been approaching this much differently than europe. We are seeing a pretty sharp up tick here. Whether thats a post labor day bounce and it will level off or its the beginning of an up trend heading into the fall, its unclear well need a couple more weeks of data to know whether or not this is a discernible trend heading into the fall and winter there is a real risk as we head into the fall and winter this will come back all of us are concerned. We havent had to contend with the virus in the season it likes to spread, which is the fall and winter this is a respiratory pathogen that will spread in the winter weve had to deal with it in the spring and fall. Now that said, i do not believe that were going to reach back to certainly a National Stay at home order or even sort of pervasive lockdowns or stay at home orders. I think the mitigation is going to be a lot more targeted. You might see certain cities taking stringent steps when they have dense epidemics it will be much more targeted because we have testing. Well know where the spread is and in part because we have much more confidence around our ability to treat this. I think the capacity of the Hospital System is enormous relative to what we were in in march, april, may. Hospitals have stockpiled equipment. Doctors feel much more positive taking care of patients with covid. Weve substantially cut in hospital stays and mortalities so well be able to turn over cases much more effectively inside hospitals. In the u. K. Theyre talking about their cases doubling every seven days theyve been looking at hospital admissions doubling every eight days they were talking about testing. In the beginning you said you dont think weve dealt with this much more differently than they have. At the end it sounded like we werent going to be in that position where are we in terms of would we wind up in a situation like the u. K. Was when i say that, i think general compliance to the social distancing, mask wearing, anything like that the whole across the nation has been less of what youve seen in europe youve seen compliance spotty here certain parts of the country youve seen pretty good adherence to some of the social distancing and mask wearing and certainly here in the northeast. Other parts seeing very low compliance thats what i was referring to when i said in terms of how weve been dealing with it at a consumer level. Europes done a good job they have a Good Health Care system when you look at whats going on in the u. K. , you need to think of it as being a dense epidemic. Well have situations heading into the fall and winter if you believe this comes back, well have situations with certain select cities have dense epidemics. Houston had a very dense epidemic, miami did, phoenix did. I think the combination of what governors did, it was slow to act, no question about that, eventually they took targeted mitigation combined with the population of things like mask wearing, social distancing combined with Getting Better testing, combined with alleviating burden on hospitals by suspending elective surgeries for a period of time that combination of activities was enough to get these epidemics under control. I think those are likely the things to reach foreheading into the fall and winter on fair and accurately a rotating basis. Hopefully this isnt a con fluent epidemic. There are going to be sporadic hot spots or not so sporadic hot spots as you see flareups in different parts of the country. What the heck happened with the cdc guidance zbled the idea that they put on their website that aerosol sprays are probably largely responsible for some of these issues but then took it back, took that guidance back later. Then all i can think is that theres complications because they realize by putting those scientifically backed facts on the website it means businesses, schools are going to have to take much more extreme measures in terms of ventilation, am i missing something . I think thats right. If, in fact, there he is a conclusion this spreads through aerosolization, that changes it. Its hard to believe this was an accident, the reality is there was nothing surprising in what the cdc put up most people assume this is droplet transmission under ideal circumstances you get aerosolized spread if you get the right person with the right condition youll get a spread pattern as opposed to droplet transmission its not a binary choice these things exist on a continuum. A virus that spreads predominantly through droplet transmission under certain circumstances will spread through aerosolization youll get drying and suspension of the droplet nuclei, viral particle i think people need to assume thats the fact. Most scientists assume that. I would expect that at some point cdcs guidance is going to conform to the reality that i think most people have come to accept scott, i know that you were obviously former member of the administration, but can you just speak to the credibility of the cdc at this point and the politization of the cdc and how concerned you are about that. Well, look, i know some of the professional staff at cdc and i suspect they have to feel bad about whats going on with the organization at this point they take a lot of pride in that organization and how that agency is perceived this is deeply concerning. Seeing these kinds of activities where guidance gets drafted and posted on the cdc website, those things are concerning. You need to be able to accept that the material being put out by an organization, by an agency represents the view of that agency and if the administration wants to put out an alternative view on some of these things, theyre free to do that. They should put it out under their signature and not put it out under the imprint of the cdc. It shouldnt have the cdcs logo on it if its not their work we can know what the cdc thinks and what the people drafting this material think. Thats the most corrosive information. Seeing information get put up on the cdc website doesnt necessarily represent the work of the cdc scientists or doesnt represent the consensus of that agency scott, its more troubling than that because i know that businesses and schools are following the guidance thats on the cdc website and when they say we are following the guidelines, theyre not doing anything beyond whats required on that cdc website. This is a reliability issue. We have to follow what theyre doing. How safe are those schools and businesses right now look, thats why i think its corrosi corrosive. You dont knowwhether or not what youre following represents the Expert Opinion of the cdc scientist or whether it represents a policy point of view and so thats why its important that the information thats made available be represented by the people who are developing those facts look, i think by and large the material on the cdc website represents the work of the staff scientists at the cdc. I think we know where the touch points are where theres been some political consideration about whats getting posted and some political involvement its around the testing and things where weve seen push back from the business community. I think at this point we should be circumspect about whether or not those Draft Guidelines were accidentally posted as has been the story over the last 24 hours or whether there was some push back on the guidelines quite frankly six months ago, a year ago we probably wouldnt have suspected that. We wouldnt have been suspicious right now after this environment, after weve seen the heavy editing of mmr reports, thats the problem with doing things like that, you ruin the credibility of the organization and you dont get the benefit of the doubt in moments like this if, in fact, it was a mistake and these are going to be putback up in some form thats consistent with the draft that was posted in the last 48 hours. Dr. Gottleib, thank you its good to see you thanks a lot. Okay a lot more coming up on squawk box this morning. Teslas elon musslike provide an update on the company. Well discuss the companys first battery day and what it could mean for your portfolio. And then at the top of the hour, iac chairman barry diller will be here. Well talk about the state of the media, big tech stocks and so much more programming note get ready for delivering alpha back for the tenth year. Special guests including treasury secretary Steve Mnuchin, Carla Harrison and Chamath Palihapitiya learn more and risr. Egte squawk returns right after this thats what my dad does. Good job, michael ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our Financial Futures. Are a major security concern. Cdw can assess your needs, then design and implement a secure Mobility Solution using the hp elitebook powered by intel 8th generation core processors. The hp elitebook features groundbreaking builtin security, like sure view to thwart visual hacking and cdw configures them to your companys specs. For mobile security, you need hp and it orchestration by cdw. [intel jingle] welcome back to squawk box this morning take a look at futures right now. We want to show you where things stand. We also want to show you whats going on in europe as well dow looks like it would open up 38 points higher nasdaq, 71 points higher also looking atz the s p as well green arrows across the board in europe of course, there had been lots of concerns about the spread of covid specifically in the u. K. And concerns about whether that is a precursor to potential shutdowns and things like that elsewhere in europe and potentially longer term in the United States. We should tell you the Prime Minister, Boris Johnson speaking right now as we speak, to the house of commons among the headlines, he says that the u. K. Has reached what hes calling a perilous turning point and this is the moment he says we must act he says he will introduce new restrictions in england but this is not a deterrent to a full lockdown schools and universities will stay open. Office workers can go to work or, rather, i say can work from home hes now saying should do so starting on thursday all pubs, bars, restaurants must do Table Service only and businesses will be fined if they break the rules. Pubs will close at 10 00 at night though we should note theres a number of scientists and others in the u. K. Who are saying that on the pub issue is not enough. Joe pubs and bars. We were asking whether it was different than what were doing over here. I would not set foot in a pub or a bar. Right. Theyre closing at 10 i think thats you know, that sort of sums it up most saying pubs and bars. Get the hell out of the pubs and bars get your hard seltzer at home. Theres a lot of criticism of it the view is if you close at 10, people are going to start earlier effectively given the culture. You cant get covid before 10 p. M. Yeah, exactly thats a crazy thing . You cant get covid before 10 p. M. Something changes magically like cinderellas shoes at 10 p. M. . The concept, i dont think its a rational concept. The rationalization was as people stayed later at the pub, they might have drunken more and more. More careless. Became more careless. The issue in this case is if you told me the pub was closing at 10, you might take another round, if you will, at 9 and get a little careless earlier. Thats what has people concerned. You just go at 3. Right coming up especially when youre working from home. Yeah. Low ceilings in the you know, the people next to you yeah. I just ive got i dont know if ill ever get back to normal where i dont have that phobia i dont like anyone were all different. Weve all been changed elon musk getting ready for battery day, but he may not be partying up like many had expected last night musk tweeted this, downplaying the shortterm importance of the announcements at the event later today he said, the unveil affects longterm production and that might be disappointing to some what they announce wont reach serious highvolume production until 2022 the stock trading lower this morning after that tweet last ght. Well discuss it all when squawk box returns if i could, baby id how can i, when you wont take it from me you can go your own way go your own way your wireless. Your rules. Only with xfinity mobile. As amy first jober, is to care for derek. Everything i do is for him. When i moved to this apartment after six months, we need to connect with the world. I use the internet to keep him in the language, because thats the way to connect to my familys traditions. He has to know where he comes from. We need internet essentials. Theres no excuse to not get connected. Teslas annual meeting, a routine event that sometimes generates news is going to be taking a back seat to the companys first battery day today. It starts right after the annual meetle phil lebeau joins us now hes got more on that. The battery test is what tesla has been waiting for yesterday late in the day, elon musk sent out a couple of tweets basically setting the expectations perhaps a little lower than what people were thinking going into today. He wrote, this affects longterm production, especially semi, cyber truck, and roadster, but what wev announce will not reah serious highvolume production until 2022 he went on to tweet we still foresee significant shortages in 2022 and beyond unless we also take action ourselves. Think the indication is theyre going to be doing more battery cell production an clearly investment to expand battery production this is where they stand right now in their battery cost advantage. This is why tesla leads the industry when it comes to e. V. S. Theyre lower in terms of overall battery kroft per kill waut hour. At 156. There you see the other types of batteries that are used in electric vehicles. In terms of battery cell costs, tesla says theyre undergoing 100 kill a watt per hour most believe if you get down to 70 a kill waut, youre close to break even tesla is also expected to lower not only its battery cost targets but expansion in battery production, maybe higher density battery cell thats in development. Theyre currently top range on a model s, 402 miles fully charged. Dont forget the battery day start this afternoon at 5 30 p. M. Eastern time. As you take look at shares of tesla, you will likely see a little bit of movement in this stock after hours. Guys, one other thing to keep in mind we saw this when they had autonomy day, when they announced the new glass shingle solar roof, that they will make pronouncements elon musk will make grand announcements here it doesnt nicely mean well expect to see those on the immediate time frame often hell say this is what were going for, but its going to take some time to get there. Nothing on the autonomous, do you think, phil . Not today it may come up in the annual meeting, but today its primarily focused on the battery cost they have the advantage right now. I wanted to get you to say battery again. Battery. Chicago is not a protected like class i mean i dont have to worry about, you know, making fun of an accent. Probably i guess i probably do. Any time you want me to come on so you can make fun of me, joe, im all for it. Battery day let me see if Garrett Nelson says battery or battery. Garrett nelson, analyst at cfra. Does he lower expectations he doesnt usually then i want to get into the nuts and bolts about what they are trying to achieve because its prosecutor arcane and pretty detailed what theyd finally like to get with batteries lets talk about that. What are you expecting to hear sure. Thanks for having me the first thing i would say, you know, we would caution that its going to be very difficult for tesla to exceed the hype surrounding this event because it comes almost five months after when they had originally scheduled it its been delayed a couple of times, but thats also bought elon musk more time to innovate, deliver, and really impress the street so, you know, we think that they will unveil a millionmile battery today, a battery thats capable of exceeding the drivable life of a tesla vehicle, which will really enhance the Value Proposition of owning a tesla and really further solidify their dominant market share in e. V. S, which tesla has accounted for 58 of all electric vehicles sold in the u. S. Last year, up from 14 five years ago so thats good. But in terms of, you know, not having partners, not buying it in other places, making their own, that timeline is getting pushed out any developments on the real hightech nature, you know, the stated intention to try to use either le either use less cobalt or get rid of cobalt completely, using a tabless battery so its easier to hook up, anything on that horizon . Are we using anything of that issue . Different compound hightech . Sure. We think what tesla theyll provide more detail about a plan to reduce the cobalt density of a battery. And they eave real and theyve really been working hard with their partners catl in china and panasonic, where we think they have, you know, reached a point where they could make a battery with no cobalt whatsoever, which would be a huge breakthrough for tesla. We think theyll provide a lot more detail on the cost and content of the battery probably what elon musk was referring to in that tweet last night is theyll start producing in high volumes this battery starting in 2022 until then, theyll rely on their partner, panasonic and ctal to produce the batteries. Weve got to keep it short, garrett. Well all be watching. Maybe hell lower his expectation when something earthshattering comes up. We hope. Hope springs eternal andrew. Coming up ahead, our exclusioner interview with expedia chairman barry diller who will give us his latest take on media, travel, and so much more thats ahead after the break take a look at the futures right now after the wild day yesterday. Gsre looking a little better on nasdaq, but down s p weve often wondered what keeps the world running. Economics . Algorithms . Magic . Turns out, its you. Doing your thing. Dreaming dreams. Building new worlds. Its why we built our workspace technology. To help you do your best work and to see what you can become. Youre made for bigger things. And to see when disaster strikes to one, we all get together and support each other. Thats the nature of humanity. It has encouraged other people to take the time for each other. Good morning what a difference a day makes. Stocks much calmer in the premarket after yesterdays bigtime selloff and lateday rally, but the major day averages still on pace for a first down month since march. And tiktok possible sale of kwiquibi. Weve got a sudden rush of media stories on hand and the perfect guest to discuss all of it, barry diller and well dig deeper into the tiktok tensions with noted hawk, kyle bass. The final hour of squawk box begins right now good morning. Good morning. And welcome back to squawk box back hear on cnbc im Joseph Kernen along with becky quick and Andrew Ross Sorkin we had turned positive on the dow but saw a weakening of the nasdaq which for most of the morning was up about 70, 75 points its still up, 70, 75 points down now though. A minute ago down 70 points. Those were worst levels than weve seen in the premarket session since squawk box has been on. You see the s p is more or less flat right now yesterday, if you dont know, we saw more than a 900point drop for the dow followed by a late session comeback the index ended down about 500 points, but there you can see some of the seven, eight, and nine handles on the dow prior to the close. And then treasury yields this morning,. 67, without commentary its been there for a while, becky. I dont know im trying to figure out a way to make it interesting, but ive given up. Yesterday i saw at one point it was like reaching for a light bulb and the next thing, you know, horrible horrible anyway. We digress. Lets get you caught up on some of the stories investors are going to be talking about. British Prime Minister Boris Johnson announcing new restrictions to tamp down on the coronavirus in the uk. He says Office Workers who can work from home will do so. Pubs have to close at 10 00 p. M. Because you cant get covid before 10 00 p. M also businesses breaking the news will face fines johnson says these restrictions could last six months barring any progress scientists warn yesterday if the number of cases continues to double every seven days as is currently the case, there could be 50,000 infections a day by midoctober. Tesla is holding its first bat ray day today. Itsexpecting to announce a ne battery cell its developed, but elon musk himself saying, Important Note about battery testing day unveil this affects longterm production of semi, cyber truck, and road sterks bster, but what announce, will not reach serious highvolume production until 2022 an editorial in chinas statebacked global times says the terms of the potential deal says washingtons style and oracle and walmart said they will buy into a new Company Called Tiktok Global that will be primarily owned by americans. Tiktoks owner bytedance said it would own 80 of Tiktok Global, and, again, you have Different Companies trying to appease different administrations. U. S. Companies trying to apiece the u. S. Administration. The chinese making sure its bowing to the Chinese Government in this situation, and its hard to know if all sides can match up becky, tiktok may very well be a great place to start this next conversation. Ica Expedia Barry Diller is with us theres so much to talk about with you in terms of travel and with ease going on in the uk affecting markets. But we call you a media mogul, so i want your take on all the big media tech headlines were trying to grapple and understand what this tiktok deal or nondeal really means what do you think it means well, its no deal, so i dont know that it means much of anything at the moment the whole thing is a crock i mean, it starts obviously simply to say we want to protect the security of americans from anything that could happen to them by using tiktok it has now morphed into this kind of ludicrous kind of game match between toss iing ownersh here, control there, et cetera, et cetera. Its original aims are out the window, and in has just come a whole political mishmash i have no idea how it settles. I also think its relatively english. I think the whole thing has been stirred up for no great good reas reason are there larger implications that concern you, though, about what it means for american businesses doing business not just in china but abroad i dont know. I think look. I think once you start tossing this grenade about protectionism and turning these things into political questions, visavis china im not saying china treats fairly. Im not saying we should have policies against in terms of competition and all of that and not stealing property and all of those things, however, once you say we wont do this because of you, the reciprocal out of that is going to with just as bad, and that once you start it, its inevitable that that race just keeps going up and up and up and just prevents just natural commerce. I want to get your thoughts on a couple of other media transactions, and then i want to get into some of the things youre doing at iac. Nelson peltz taking a stake in the company. Curious your reaction to it. I mean mr. Peltz has been peltzing around for a whole i dont know, decades sometimes to good results, sometimes to no results. In this case, i think comcast is superbly managed and superbly hedged i dont know i dont know what i havent read or heard what his activism is about, but usually its just exploit aive. I think if theres any concern, its that the pure play, the charters have gotten rerated or rated at a much higher multiple as a result of being a pure play and whether the market is going to do give come quast that same kind of benefit, and i think thats what hes after. Yes, but, you know, multiples and drilling down in different areas simply to improve the stock price so he can make x dollars or y dollars and getting in and getting out and all of that, look, activism is good when theres a real reason for it but if the reason is simply to rejigger things to make it look better so that the multiples will be better, that is not any kind of activism that i think produces anything you know, any kind of even decent results. In this case, i dont know i dont know how you if youre a Media Company and youve really got both sides of it, youve got the distribution side and the production side and you have all of these landbased resorts, et cetera, you know, youre hedged various different ways, and since the internet is going to continue to get used more and more and bandwidth continues to grow and its going to cost and q, theres no way you can get the into trouble. New headline, quibi is not for sale maybe hes tried to call you to offer it for sale, has he . Oh, no, no, no. The one thing, whether this was a good idea or not as an idea itself was never really tested given that it came out at a time when instead of this idea of being about people having relatively little time and this would be programming to fill those spaces, those little short spaces in exactly the moment when everybody has nothing but time because they were all frozen in place, everybody was not tested i will say for jeffrey, i think he conducted this thing at the most aggressive i mean nobody could have nobody could have ever said that this idea was not out there fully funded, fully sold, et cetera, et cetera, as aggressively as possible so i think his guts for doing it, i think, are supremely admirab admirable, and it probably wont work out, but, you know, for the trying, wow. Who do you think did somebody buy that business, do you think . Look. What do i know i dont know what theyd be buying it for. I mean, if you could tell me that one i mean, it just it is a service that if you maybe if you wanted to put a lot of fresh capitol in it and try again once the world went back to normal when the people got, quote, busy again. I just think the chances are relatively slim. Talking about the world going back to normal, lets talk about iac and expedia and the world going back to normal or not. Obviously there are big concerns in the uk about further lockdowns. That sent the market into the red just yesterday whats your timeline now as you think about travel and people going back to not just to the office but getting back on planes i know you talked about the gaming signed also on the idea that vegas would ultimately and macau would ultimately come back. Yes, i think they will. I was in las vegas for a deep dive kind of tutorial on their business while it isnt what it was, there are people in the hotels almost all the hotels are open there is life there. It is not, of course, what it was, but inevitably it will be just give me an end date thats all i every day cry for and have to unfortunately put a bit off in the distance. I had originally thought, okay, great, well be back to work by september. That has not happened. Now its maybe christmas realistically its probably next your at some point i keep putting that, you know, little goalpost down the road. However, las vegas, you know, the amazing thing that i saw when i was there is who would have created this thing . It is the infrastructure, the amount of i mean conference space. Mgm has 460 restaurants. They have hundreds of venues for entertainment from 20,000 to 1,600, to small err venues the idea that vegas was built 70, 75 years ago, that place thats so much pound for pound entertainment, by the werek from all levels, from the very highest level to middle to transient to leisure, it is a place that you that, again, i dont think youre going to build it again anywhere in the world. Seas certainly not saudi arabia. Right. Theyre talking about this new neon city, whatever its called but las vegas is without question, when its safe, will come back without probably bigger in the early period because of the explosion of people wanting to get back to life i think the same is true of travel, of course. But you cant get travel back until you get planes and regulations, air regular legislations into a place where people can without worry go where they roy want to go. The thing is flying in a plane is about as safe a place as probably being on a beach with the wind blowing against you the air is refreshed every three or four minutes. Its utterly safe to be in a plane. Should taxpayers be continuing to support the airlines well, yeah, because if you actually lose the the thing about las vegas, that structure is going to stand. You can take the people away it will still be going the lights will be on. The problem with planes, witharilywith airlines, because theres no access to sustain these things, to rebuild is going to be really difficult. Yes, look. This is while were living in it and certainly not objective about it because and we wont be for decades probably about what is happening. Were living through something that whenever you stop and think about it, its impossible to think that the world stops, and it has stopped, and the damage is great, and government is the only place that can lift it out. And in every way it must, it certainly must for all the damage that has been created look its not troublesome to the people whove got ever lasting jobs or have wealth, but for everybody else, this thing is devastating, and government is the only place that can live it up, sates nice, put it back, and everybody comes out of it. Hey, barry, listening to you say airlines are a safe place because they circulate the air there have been cases i was reading a couple of days ago where people have picked up unin the plane, in coach. They werent Wearing Masks in the same way they are now. But i think questions like that raise a lot of concerns an questions not only for people deciding if theyre going to go on vacation, but more importantly for businesses thats the meat and potatoes for any of theme these things. Yes there is no question if youre going to be on an airplane, thats save. Were learning its daines to have pups open you cant have them at full object palsy. You dont have air recirque lating in a restaurant to the degree you have on plane. If youre trapped in quarters on a flight. In the healthy flights. Theres a chance of a safe being dropped from a building. But the odds are not the same im asking you as a business leader, where do you get your information . On the airlines no, no. Is it because you watch the headlines, youre talking to experts . When youre trying to figure it out, where do you get it until there is a vaccine, nothing you cant be certain about anything i think its absolutely true work from home does not work it can work in little bits and pieces, but it does not work right now some of our offices are open, and weve said to people in our companies, come. Its safe here, all the protocols, all that, we wont demand you come if you dont feel safe. Guess what no one comes thats the experience of it. This is day by day i said, for instance with expedia, on november 15th, to me, is the last day you could say to people, okay, plan to come back to work in january people have to make plans and do all that stuff i was really hopeful when you get to that date that you could say, okay, come back, january 1st. I dont believe thats probably true now because again the daily thing you read you dont have to go far to learn that everybody is telling you its still not safe so until you can get that demarcation line again, i think its probably realistically, if i can use that word in this craziness, its probably june of next year before you can say, by the way, employers will have to say, you erie coming back to work unless you have an absolute reason, youre coming back to work until you say that, nothing is going to start again by the way, in new york city. Let me ask. Safest place there is probably right now, you cant go to school. The idea the precursor to all of this is getting schools open, and were United States has done about the worst job of anybody in that regard. Let me ask you about the implications of the timeline, which is longer than what you had anticipated earlier and a lot of people haveanticipated earlier. What about as an invest . What does it look like if the world shuts down or slows down between now and next summer effectively . You know durks that mean are you trying to keep a lot of could be. How are you thinking about all of that . Personally and professionally, every nickel you can, keep whatever you can where its banked. I just think now is the time i mean, look we made a significant investment, a billion dollars, in mgm during this period. The crisis allowed us to do what we thought was extremely money good, meaning we would never lose our capital in it, but because of this because of this moment for bad reasons we got the ability to invest in Something Like that. But generally, i think for any speculation and i think the market is right now a great speculation, i would stay home and, again, weve got the anvil of this election over our heads. Each day from now and nosh has gotten more and more concerning and divisive and difficult i actually think if i could wake up in midnovember, maybe its even late november even though it might be contested, i would rub that magic genie. Theres a political speculation right now tra trump is good for business i want to speak to your position and speak to the position that has been argued that a Trump Administration a better for business. I think in probably i mean speculation i think in the early days of a Biden Administration, i think theres going to be definitely a downdraft on the expectation of taxes rising and things like that, but i dont think long term actually as far as business is concerned, i dont think long term is going to be any particular dirns i think there will be differences. I think people will pay high taxes, particularly the wealthy. I think this will are going to be things done, really done, to deal with inequality i think other things will happen i do not think theyre lets call it a big damper on business look i do think theres going to be regulation, which is going to be damaging for some of the Big Tech Companies, but i dont think beyond that that it will make any real difference again, posit ourselves again several years into a new administration, not the first month or two, et cetera. And, again, im being redundant. No barry, le me ask you because i know you mentioned big tech and youve been quite outspoken when it comes to google, for example, when it comes to them competing with expedia as youre, of course, one of their larger advertisers theres been lots of headlines about what mahan what are you expecting is going to happen to the Big Tech Companies right now . I think regardless, it is coming its necessary the monopoly of google is resolute weve spend a lot of money. When the person youre spending it with, i. E. Google, competed with you while taking your money and has control of basically the platform and continues to squeeze those down, i think it affects regulation i think the idea of apple charming 30 tribute simply to download an app and provide relatively no service for this 30 , who heard of a distributor the only reason they do it is because they can i think its very unwise of apple. Apple is generally a Company Thinks well of i think simply to stand there is almost as bad a listen city graham and his hypocrisy and standing there and saying its fair and proper for us to take 30 of every sale, and it costs consumer because you have to price it into the product. Anyway i think wreck lags are going to come in the next probably year before we let you go by the way airbnb, barry, likely to go public this year. What do you think about the prospects for airbnb, especially with this covid world . One thing weve found, travel is obviously hobbled were down to the worst of it, 95 . Now at 96 , some improvement, but not much whats up is alternative acontinue dalgss people are traveling to where they can drive to. Theyre not going to big resorting. Theyre going where theyre safe the physical is practically gone thats a good sign for airbnb and its good for expedia. Barry diller, you never hold your tongue. Great to get your perspective. Great to see you we all want to do it in person well make a plan to do it. You know what heres how you do it in person you go back to work. Yes, yes, yes were all headed that way. Barry, thank you again appreciate it. All right, coming up, Hayman Capital Management kyle bass and note chide na hawk joins us on the fight of tiktoks future as we head to bring, tack a look at the russell snap camp its the worst day stay tuned youre watching squawk box on cnbc the big events are back. Xfinity is your home for the return of live sports. Coming up, whats at risk . A Ranking Member of the House Financial Services committee will join us for todays highprofile hearing which features fed chairman jay powell and mnuchin. As we head to break, alpha is back. The treasury secretary will be with us along with Equity Partners and many more special guests visiting deliveryalpha. Com for more stay tuned youre watching squawk box on cnbc welcome back to squawk box. Take a look at the futures the s p 500 up about 4 points after what was a down day yesterday, big down day. It did come back toward the end of the day, but still becky andrew, thank you. When we come back, two interviews on the biggest stories wall street is watching this morning first up, Patrick Mchenry from the House Financial Services committee as investors get ready to hear from the fed chair and secretary. And the standoff witchh ina over tiktok. Stay tuned youre watching squawk box on cnbc [ engines revving ] its amazing to see them in the wild like th shhh. For those who were born to ride, theres progressive. Later this morning treasury secretary Steven Mnuchin and fed chair jay powell are going to be testifying before the House Financial Services committee both men will be peppered with questions about the state of the economy and what it means to recover from this pandemic joining us right now is congressman Patrick Mchenry. Congressman, its good to have you here with us today. Great to be with you, becky i think the big question that wall streets been considering is will there be another stimulus package that comes at least from a policy perspective when dealing with this pandemic. I think the answer is, we will not see one, at least not before the election are they right in their thinking yes, absolutely that opportunity was killed back in july when Speaker Pelosi said that she was not going to take any deal lower than 2 1 2 trillion, which is beyond really the capacity of both the house and senate to have a bipartisan vote to approve much less the president sign. I believe that both Steven Mnuchin and jay powell will probably say today in their testimony they think more is needed weve seen better economic numbers, but theres still a lot of pain out there, people who havent seen the additional Unemployment Benefits for nine weeks now. What do you think is needed . What do you think is necessary well, i think you should have some modest extension of Unemployment Benefits, yes, but you need substantial support for Small Businesses so they can make it through what is still an economic shutdown in most of our states what i would like to hear from secretary mnuchin is a broad outline of our economic recovery prospects, the necessary policy to make that happen, the necessary fiscal support for that, and id like to hear from chairman powell the limits of the federal reserves capacity to support this economy and the role of congress for fiscal stimulus if these two gentlemen i ask this because it seems to many that both sides are kind of set in stone with what theyd like, and theres a big hole between the two. You mentioned nancy pelosi looking for 2. 5 trillion on this the package most republicans lined up is 660 billion, and theres a big gap between the two. If you heard from these two gentlemen today that they think more is necessary,Something Like helping out states and local municipalities is something you would advocate, would that change your mind on that perspective no. Ive talked to them regularly. I no Additional Support is needed, but we dont have the data from the states on loss of sales tax revenue much less what is going to happen from income tax. We still need more data to understand the level of support for states, but what Speaker Pelosi offered was mostly about noncovidrelated spending lets stick to covid related spending and get a more modest package. What im talking about is the spending bill thats the largest or second largest in american history. So i still think theres substantial fiscal support thats necessary i mean thats really interesting though you just kuhn of put a ring fence around it that i havent heard a lot of other politician put there before you think a state or locality has suffered a huge amount of revenue loss because they havent had the sales because things have shut down and they havent gotten the sales tax which for many states in the northeast makes up a big chunk of the income that theyre bringing in, that should be Something Congress should move to shore up . What im saying is the overall state and health of these states is something we have to be mindful of. We have a federal system, so states have independent taxing authority and strength on their own, but i think theres a modest level of support we can provide given the unprecedent nature of the Health Pandemic that were experiencing, but i dont think we should have a blank check, nor should this thing be geared to states that are on the other side of this pandemic and doing quite well. That was a substantial part of the pelosi bill out of the house. Congressman, just to pivot the conversation for a moment, and i know its not ultimately your responsibility, its the senates, but i did want you to weigh in on a successor replacement for rbg and whether the senate should take it up an whether youve spoken with the senators in your state and others no. Its im on this side of the capitol, not on that side of the capitol, and so im respectful of their capacity to process nominations, and since, you know, youre replacing a threelettered name, maybe Andrew Ross Sorkin, you should throw your name in the hat, why not. Im not up for this i was just curious whether you think whether you think that this nomination a nomination should be taken up before the election oh. My view is the senate should process nominations from any president. But thats my view sitting in the house of representatives what i can tell you is leader Mitch Mcconnell is going to move forward with this nomination, and there will be a vote on the senate floor he announced that in detail yesterday, and Mitch Mcconnell is good at many, many things executing power, yes, moving conservative agenda, yes, moving nominations to the court, hell, yes. Congressman mchenry, thank you for your time. Well talk to you soon. Thank you for being with me okay. Thank you. When we return, the standoff over tiktok and the future of u. S. China Business ties Hedge Fund Manager and noted hawk kyle bass is going to share g chthoughts on the brewinte cold war you dont want to miss this conversation youre watching business squawk on cnbc everyone wakes up every morning to a world that must keep turning. The world cant stop, so neither can we. Because the things we make, help make the world go round. They make it cleaner, healthier, and more connected. Its what we build that keeps things moving forward. So with every turn, well keep building a world that works. As you know, weve been following the president and the standoff with tiktok the confusion started and now its not at all clue who would eventually control tiktok under a deal or who will get one done. Joining us to talk about this broader potential fallout is kyle bass, founder of it are you pretty strident about your views of china . Overall, what do you make of what we have witnessed because it started out presumably as a National Security issue. Is it still a National Security issue and was it necessary to be one right at the start, and have we taken steps to lessen the potential damage. First i like to think of myself as a china real left, not a china hawk unfortunately they put themselves in this situation when you look at tiktok and wechat, up to 100 million users in the u. S theyre very close to the Chinese Government they Data Collection policies are aggressive if youve raid the white papers, Cyber Security reports. Whats fascinating about this is china controls the narrative its what they do best if Goldman Sachs is going to open up a wholly owned subsidiary in china, china required Goldman Sachs to have their data held in china i. E. , it cant leave in this case, the Data Collection, data storage goes through beijing for tiktok there are two issues number one is the fact the Chinese Government has the Data Collection policies through tiktok number two, is tiktoks algorithm can influence the thinking and minds of the u. S. Youth over time because they control that algorithm and thats the algorithm they dont want to give up. Whether youre talking about china or tiktok or wechat. Those things have to be controlled think about this u. S. Social media is banned in china, yet china is exploring everything to their benefit. So, again, i go back to this idea of reciprocity. We should allow china to do whatever they allow us to do if that were the case, these social media plat fofrms wouldnt even exist today in the United States. So it sounds like a National Security threat and one that were, in your view, it was a good idea to take a position on. Is there anything in this deal that allays your fears that, you know do you feel it solves the problem or has it turned into a trade deal, hasnt it from my perspective, Larry Ellison is probably one of the singe most patriotic ceos in america. The fact that oracle will control if it works this way. If oracle will control Data Collection, data storage, and prevent data from going to china and oracle can also control the algorithm that may influence the youth of america, then more power to Larry Ellison and oracle and walmart as a lesser partner. But if, in fact, china isnt going to go for that, and i wholeheartedly support the Trump Administrations policy of shut it it down. So the way that its structured right now and the ownership and where the servers would be and all that, does it satisfy your concerns right now, or is it does it not . So, look. From my perspective, joe, as you know, im a Hedge Fund Manager i pull down there with the Chinese Congress party and congressmen as far as likability, but i also dont have a technical background deep enough to tell you that ive read every document looking at exactly how the Technical Specifications of the deal are controlled by the National Security council i feel like im not ifkyle, you said that you wod back shutting it down. Yeah, if china in china would that make it worse overall for just trade with china . We just had barry diller on saying this is protectionism at its worst and we started t et cetera, et cetera. You know, barry diller obviously hasnt read through the decades of data that are out there and most recently whats gone on with chinese social media, they are wolf warriors and the ccp apparatus. Look, there are four wars we can be fighting with china, number one is the kinetic war with the u. S. Has the top kinetic War Department in the world, lets hope it never goes there number two, cyber war, weve been fighting a cyber war with china since the early 2000s and we have one of the top War Departments in the world the two other wars we can be fighting with them, the economic war and the information narrative war, we dont have War Departments for, and china has been fighting those against us since it ascended the wto barry diller has his opinions, im sure he has investments in china and im sure he is some way trying to profit from this look, i dont have investments in tiktok or huawei or zte or wechat, but i try to call it like i see it and what i see here is a grave u. S. Security National Security concern. Andrew, do you have a question kyle, one quick note. I dont believe and i could be wrong about this, that barry diller at least publicly does not have investments in china and we can check on that, but as a separate matter i wanted to get your views, we have talked about social media and technology i want to talk about the business of finance and specifically the role that hsbc plays visavis china and the outside world given the revelations that emerged over the weekend when some of these sars reports were disclosed by buzzfeed and other media organizations. I know you have concerns about hsbc would you shut down hsbc in the United States. I would let me first say i have no positions in hsbc nor will i lets be objective here, hsbc signed a Consent Decree with the United States back in 2012 stipulating they paid a 2 billion fine which back then was a paltry five weeks of profits and no one at hsbc was criminally indicted nor was the bank they were laundering the money for a cartel and several terrorist networks and we figured it out and entered into Consent Decrees with them. What the reports are showing if you look at the International Consortium of investigative journalists they say that after the Consent Decree hsbc engaged in almost 7,000 transactions in their Hong Kong Branch alone running 1. 5 billion through that branch and its a highly profitable branch, and they were with at least 16 large Shell Companies that were criminal enterprises. They broke their Consent Decree with the United States, hsbc Hong Kongs Wong was one of the first banks to back the chinese National Security law and position of basically stealing the human rights and the autonomy from the hong kong people hsbc has decided that the better bed fellow, whether its the u. S. Or china, they decided the better bed fellow in the long run is china one thing that people dont know and i will maybe potentially break some news here is in 2012 hsbcs Board Members commissioned a report to understand the way hsbcs internal finance network worked and potentially how it might be funding terrorist networks it turns out that that report was turned over to the board in 2014 and in 2015 what the report stated was that hsbc was running the entire terrorist Funding Network for hezbollah. That network was basically used through brazil and south america and their branch in lebanon to basically raise all the money for the Muslim Brotherhood and hezbollah. So what did hsbc do . I dont think they reported it to the United States they sold their Branch Network in brazil in 2015 and then they closed the Beirut Branch of their bank in 2016 saying it was just unprofitable. Hsbc is not a good actor and i would shut them down kyle, just to be clear, you said you dont have any position in hsbc and you would never take one. You dont have a short position, either, right . Thats correct. I have no position whatsoever in hsbc securities. Kyle, i think were about done since you think that the hong kong currency the way that it and this was a bill ackman trade long ago the way that its pegged, you think that youre betting at this point theres going to be a decoupling and that is because of all the problems were seeing, all the unrest in hong kong or what is your rationale there . We have to do this quickly. Yeah, its both its both a financial rationale and a political rationale, but the financial rationale is simple, theyre the most heavily levered Banking System in the world at almost 8. 5 times gdp as the u. S. Entered our financial crisis we were 1 times gdp and you know how bad we screwed it up. They are engaged today in a pandemic depression. You cant have almost a ten times levered Banking System and have real gdp drop 9 or 10 and not have a full scale banking crisis the other thing thats happening on the political side is youre going to see at least 10 of the population if not more of hong kongers, healthy hong kongers are going to leave no one is going to subject their family members to the Chinese Communist partys overlord status in hong kong. I think youre going to see deposits leave and when deposits leave the only valve i think is going to be the currency andrew, do you have a followup . I just wanted to add that literally as you were talking, kyle, barry diller emailed into the show to say i have zero investments in china and i just want to clarify that, given the comments that you had made earlier about his position. I hear you. I dont know barry diller and i guess what i do is i respectfully disagree with him. Andrew, hes definitely got some investments in things that require planes to take you wherever youre going, though, right, in terms of travel. That is true. That is true yeah. I think he definitely has a reason to think that flying is safe anyway, that was pretty interesting. So, kyle, this is this has been a long time coming, i mean, the ackman i think this was at a delivering alpha conference maybe ten years ago. So people have thought this for a while in terms of do you think the time now because of the pandemic and reserves, you think this is inevitable that this is going to happen. That would cause a lot of turmoil in currency markets around the world that would be unbelievable if this pd. It might cause turmoil for a week or two, but, look, when oil collapsed in at the end of 2014, 2015 what did russia do . The russian ruble they left it devalue and devalued massively against the dollar, almost 60 in one years time russia was back to growing in almost 2 in real terms they were back to their Growth Status in hong kong when you have a currency peg thats rigid and they dont have a Real Central Bank and one question for your viewers to think about is now that hong kong is china, the u. S. Cant recognize two central banks. So ie who is the integral bank for china is it the pboc or the hkma i think the u. S. Will be thinking about decertifying the hkma as a Real Central Bank. Theyre pegged these pegs are colonialera relics that actually end up breaking in times and periods of stress in 36 years of stability doesnt beget another 36 years of stability. Its an archaic peg that i think needs to free float. That is a Macro Economic valve that actually will help hong kong in the long run. While we were talking one other thing hit the wires and that is that i dont know which biden adviser said t but basically saying its Vice President bidens adviser, unrealistic to fully decouple from china i guess thats not a stretch to say that do you think theres a difference between the Vice President s approach historically to china and President Trump . I guess you probably come down on a more hawkish position from President Trump . Biden has basically been saying he has not been sort of an enabler of china. Okay. So i will give you two make it fast, scott 30 seconds. So, look, we all know that bidens son did a lot of business in china and did a lot of miss in the ukraine that has to stop and biden has to separate himself from his son. But im encouraged by biden adviser Jake Sullivan and what he said specifically with regards to how the Biden Administration would interface with china on human rights perspective. He specifically said that the Biden Administration will not trade human rights for a trade deal and that was a jab at the Trump Administration, but if in fact Jake Sullivan, Kurt Campbell and his advisers stick to that i think the Biden Administration will be realistic in their dealings with china. Kyle, thank you i appreciate it. Becky, you want to take us out or youve got five seconds. Here we are. That does it for us today, we will see you guys tomorrow, right now its time for squawk on the street. Byebye. Good tuesday morning, welcome to squawk on the street, im Carl Quintanilla with jim cramer, david faber we are looking for some stability today after the s ps first fourday loss since february got powell and mnuchin on the hill talking pandemic response, tesla battery day, the uk announces new lockdown restrictions and oil is trying to reclaim 40. Our roadmap begins with fed chair powell and treasury secretary mnuchin, what to expect from todays testimony in front of the house financial