Skip to main content

tv   Squawk Alley  CNBC  July 8, 2020 11:00am-12:00pm EDT

11:00 am
invidia. alibaba very strong, chinese economy. if that's true, explaining why that move up in alibaba is up 7% today, too, carl >> guys we'll see you later on david, have a good afternoon kayla, thanks for the help this hour always good to see you >> same to you we'll see you tomorrow good wednesday morning, everybody, welcome to 'squawk alley. jo jon, interesting action, it is leaning heavy into big tech. the nasdaq clearly outperforming even as the s&p is hanging on to a 16-point gain in the dow thanks to the likes of microsoft and apple getting back to 26k. >> yes, indeed you guys were just talking about twitter and snap and the boost that they've got this morning.
11:01 am
i'm also watching pinterest which has also moved higher, starting around 10:30. i'm not sure what it's about either, but i can't help and look at facebook and note there's no such bump in that stock. facebook's barely higher so it makes me wonder if perhaps the news around some civil rights related groups being disappointed in facebook's progress in some areas lack thereof in addressing some issues that they would like to see addressed. talks again of potential facebook ban those things don't always materialize. i guess facebook -- let's see, we're showing a longer chart there in facebook. today in the intraday action it has not moved higher maybe there's some hope. there's the facebook daily chart. it's actually moving lower starting at that 1030 mark maybe there's hope among investors that some of those advertising dollars, some of that engagement moves off facebook to those smaller
11:02 am
rivals, carl >> yeah. we talked to levi's chip berg and he was unekwifable looking for concrete action in terms of changes out of facebook. paul holland, general partner at foundation capital and amit-daryanani good morning thanks for the time. >> good morning. >> good morning. >> you bet >> amit, let's just start with apple, i guess or just megacap tech where do you think investor sentiment is at this point given the seven record closes, apple, for example, has had since the beginning of june and to what degree do you think investors are trying to hedge some of those bets with, you name it, gold or treasuries or some of the other things that have been on the move this week? >> yeah. you know, the move with apple has been fairly impressive my sense, it reflects two things one, services business accelerate rather dramatically over the last few months
11:03 am
we have seen the app store revenue growth maybe 2x what we have seen the rest of the year so services doing really well. you have the cusp of this major product cycle of iphone 5g what we see from investors a lot is a little bit -- fear missing out at this point. you are seeing folks pile on to the name largely as you get ahead of the cycle given the momentum you have seen on the names. give you better downside protection versus the rest of the market. >> yeah. paul, i mean, next few weeks are going to bring potentially a couple of bits of news one is the testimony of those big cap ceos in front of house judiciary. that's going to get interesting. i think on the 27th. then if we keep hearing commentary vis-a-vis china from the likes of secretary of state pompeo we just got this morning, how is the market going to look through all that >> yeah. i think i would say maybe two
11:04 am
dynamics here. there's a whole bunch of stuff around the political economy aspect of things that's very messy and very choppy and quite frankly has been for, you know, quite some time. but i think there's a more fundamental thing that's happening that is purely related to stocks. and i would narrow it down to two words. it's digital and virtual you can just simply run a dividing line and covid has really helped create that dividing line or take the line that was there and make it much, much deeper and broader and take companies that are primarily in the world of physical businesses with not much digital, not much virtual presence and the world of people who have really pushed their businesses toward the digital and the virtual. and you can just simply look at that dividing line and the nasdaq has really helped define that and look at all those companies that are kind of running away to the upside because people are already looking beyond where we are now and realizing that those are the businesses that have the high growth potential going forward and that's where the money is
11:05 am
going. >> amit, i want to go back to apple because there's something interesting that i know you've looked into regarding the stock. and that is apple offering less for iphone trade-ins than they were does this reflect perhaps an increased supply of trade-ins or inventory of trade-ins, maybe apple has a lot of unused inventory since its stored have been closed and they don't want to pay as much or does it reflect reduced demand for older phones maybe they can't move them in emerging markets at the rate that they're used to so they don't want to pay as much for the trade-ins >> you know, it's a great question we spent some time looking at this recently. our gut is especially with the advent of the launch of the iphone se 2 has been a fairly successful phone for them, our sense is demand is somewhat perhaps lower in the emerging markets for refurbished used
11:06 am
phones and that is perhaps why there's saturation why apple can be selective and not be as aggressive rebate. so i think it's a con influence of iphone se doing really well in the emerging markets and saturation that's happening over there. >> interesting interesting. paul, to sort of extrapolate some of that out, i understand a bunch of what's changed short-term i mean, wework blew up and even if it hadn't, demand for office space certainly isn't what it was a couple months ago. airbnb similar, but what do you think has lost value in tech long term? a lot of people talk about in the long view this and that stock there just as valuable or more so. what's less valuable >> yeah. i think that's a very inciteful question, carl. >> it's jon. >> sorry, jon. i can't see anybody. >> we sound a like >> it's just guessing. but i think that's a pretty simple answer.
11:07 am
it's the companies that are stuck behind the fire wall right? it's companies that have to go and actually physically deliver their product. they have to install their product. they have a service element that has to be on site associated with that. and there's sort of the old iron tech companies that are stuck with that dynamic. then if you look at what's happening with the newer sass related companies, look at what's happening with kind of the digital consumer related companies, the netflix and sun runs of the world, those are the companies that are prospering and the companies that are in a situation where they've got to go and actually get inside a building and have a direct relationship kind of what we call belly to belly with the customer, those are -- it's very difficult times for those guys and it's going to take quite some time, if not sort of forever for that to come back. all of those companies are now rapidly accelerating their cloud initiatives. but they should have been doing that five years ago.
11:08 am
>> amit, remind me, you do cover twitter, right >> no, i don't >> oh, you don't let me ask you then -- amit, if you want to take it but, paul, people are obviously looking at the price action this morning and pointing to a post on their career website, twitter's that is looking for a new full stack software engineer saying it's for a new team code named griffin. we're building a subscription platform it reads, one that can be reused by other teams in the future this is a first for twitter. i'm not attributing the price action to this particular job posting, but i wonder theoretically what that might mean for a platform like twitter? subscription platforms have been talked about as a possibility for years. >> yeah. i'll take a shot at that i think, you know, if you look at the twitter community, you've got folks like you that are stars on twitter with tons of followers, including me.
11:09 am
then you have folks like me that are a little more pedestrian and i think we're beginning to see a new emerging class of companies that are happening now. i think twitter is seeing that and i think they're looking at some of these companies trying to figure out if they should acquire them because they're building some of these platforms. you know, i throw out a few examples of those. jeannies is a really interesting company down in venice beach so they're building the first digital talent agency. so justin bieber, cardi b, drake, post malone, all their digital personas on a platform where they can monetize that in virtual settings as opposed to physical settings. they came up with this two years ago. they're very much ahead of their time look at companies like community, you may have a community number it's an opportunity for celebrities and people who are very heavy users on twitter platform to offer a cell phone number out to fans and it's a real cell phone number where you can text the celebrity, you can do all these other things it's a way to basically take twitter, which many people think
11:10 am
of as realtime and very, very direct and make that essentially little slower interaction point and there's a chance for people to put something between the power users of twitter and twitter itself i think jack and the people there are very, very smart they're following this stuff they probably want to be in a position where they can disaggregate the dising a regators before it starts to affect their business. but that's a guess >> yeah. that's a good -- that's a very good analysis given what little information we have, paul. we appreciate that we're going to watch it closely, obviously, with your help. it's good seeing you guys again. amit and paul. thanks >> be safe take care. >> thank you. when we return, significant setbacks for civil rights. a new facebook audit criticizing the tech giant following the company's meeting with civil rights groups yesterday. we'll discuss next stay with us ! marco...!
11:11 am
polo! marco...! polo! sì? marco...! polo! scusa? marco...! polo! ma io sono marco polo, ma playing "marco polo" with marco polo? surprising. ragazzini, io sono marco polo. sì, sono qui what's not surprising? geico helping you save even more on car and motorcycle insurance. ahhh... polo. marco...! polo! now get an extra 15% credit when you switch before october 7th.
11:12 am
11:13 am
as you probably know by now that meeting between facebook and civil rights advocates didn't go so well. julia bore steen has the latest. good morning. >> good morning to you, carl facebook is under attack from the experts who conducted a two-year civil rights audit of the platform and nearly 100-page report finding that facebook has been too reactive and slow on issues of hate speech writing that auditors, quote, watched the company make painful decisions, saying that the
11:14 am
company made decisions that are, quote, serious setbacks for civil rights it has not devoted enough resources and that facebook's, quote, algorithms fuel extreme and polarizing content, warning that facebook could be weaponized to suppress voting. sheryl sandberg responding to these findings, as hard as it has been to have our short comes exposed. we would urge companies in our industry and beyond to do the same now, the criticism from the audit echos the criticism of the civil rights groups that organized the stop hate for profit boycott of facebook meeting with mark zuckerberg and sheryl sandberg last night and calling that meeting disappointing. saying that facebook's management is not ready to address the hate on their platform it's unresponse toif the demands of dozens of their largest advertisers. now, they also say that zuckerberg offered no automatic recourse for advertisers whose content runs alongside hateful
11:15 am
posts and asking why facebook recommendations hateful groups and zuckerberg didn't offer any plans how facebook will address what they call rampant disinformation and violent conspiracies now, while facebook has said repeatedly that it would not fold to pressure from advertisers, the fact that facebook commissioned the civil rights audit and opened the doors to its auditors for two years indicates that it could be compelled to make some of the changes that the auditors are recommending guys, back over to you. >> julia, thank you. joining us now for more on this is ceo at the douglas alexandra agency, founder of the the national organization for diversity in sales and marketing. shelly, thanks for being with us >> thank you for having me >> so facebook is in my eye in a tough spot this is an audit that they participated in. it lasted for more than a year a couple of years. and it finds fault with many of
11:16 am
facebook's practices and processes. so, what from this audit itself would you like to see facebook address and change and what did you hear from facebook on these issues just recently >> i think the largest issue is that these issues are so systemic and they are so engrained in a lot of larger organizations that to say they're diverse and focussed on inclusion but we still wouldn't be having this conversation in 2020 if that were the case so, what was interesting about the meeting yesterday was that their leadership from the marketing side was not even at the table. when i look at the leadership team of facebook, there's no one that looks like me and so how can you have conversations about different communities if everyone at the same table is having the same experience and so one of the things -- we know that facebook is being sued right now by some of their employees from their black employees because of discrimination and lack of opportunities to move up and advance in the company. unless conversations are really
11:17 am
being held within the organization and commitment is being seen from the top, not just lip service, not just the nice statement you put on your website, not having a meeting or pr to boost your pr efforts with civil rights organizations but to really do what needs to happen, none of these things are going to change. now, at the end of the day, unless profits are affected from facebook, there's not going to be a change. >> and facebook -- mark zuckerberg is saying that they don't respond to demands that have to do with revenue and boycotts essentially i'm para phrasing there. but i'm curious, there are 10 demands, as i understand it that the group brought. i don't expect you to read through all ten, but give me a sense of the specifics of what you're asking facebook for. >> well, one of the things that they want definitely is to have someone at the table in leadership, in senior leadership, that has a voice around civil rights. again, the people sitting around the table making the decisions
11:18 am
all look the same and there's no input from the communities that this issue is affecting. if you look at even the content areas, there's really lack of diversity in those areas as well so, making sure that there's a seat at the table at leadership. making sure that, you know, the ads that are being run and that the hate content and the speech content, all those things are being tagged, being taken down although facebook has said they have done that it really isn't enough i applaud the advertisers who have taken the step, the first step, because it will be a long process to stop advertising for the month of july. again, unless this is -- there's a commitment also from those advertisers to stay strong with this, unless it's hurting facebook, and that's why zuckerberg is saying, you know, we're not going to respond to a boyco boycott, they're not hurt. a month of advertising from those corporations is not going to hurt facebook so, what has to happen long-term is really going to be up to them and the corporate communities that are really focussed on
11:19 am
their brand being representative of diversity, inclusive community. so i'm hoepg, again, this is a first step, and that will continue to see a push to make facebook change and really take a look at what's happening within >> well, i guess that raises the question, one, whether or not you see the list of companies growing at all two, whether or not you think this gets extended into say november or the end of the year or even beyond that. or three, if some of these companies not -- don't just stop advertising but actually actively remove their page, which some have argued would be the real sign of commitment against the policy stance the company has. >> that's a great point. again, these are all first steps. so, even though these advertisers and these brands have removed their advertising, which is a great first step, let's take a look at what's happening within their organizations. so as an advertiser, you can put out a black lives matter statement, do all these things that look really good, but internally what's happening
11:20 am
within your organization because if they're facing some of those same problems of diversity and inclusion, then what they're doing is just not really being effective at all. again, it's a first step we'll see. i hope that there are more brands that join this cause because, again, that's what's going to get the attention of facebook it's going to be having a significant impact on the advertising revenue. so we'll have to see i'm hopeful. i'm hopeful these organizations that are stepping up to do this, these brands stepping out and saying we are taking a stand against this will also take a look internally and make a long-term plan to not only change their advertising practices and where they spend their money but also how they are promoting leaders within their organization and making sure that down to the person that is, you know, customer facing in front of customers on a regular basis, that person is maybe 100 levels down from the ceo. >> get your idea. >> has a commitment to diversity. >> i get your meaning. but i can't help but wonder what if boycotts just don't work for
11:21 am
a dominant digital social network? one could argue that the way facebook is structured for network effects make it really really difficult to affect by this kind of a boycott are there other tactics or ideas that the group is exploring to get its message across >> well, you know, i think at the end of the day what we have to look at, too, is you're exactly right. facebook is a power house. and so one of the things that i think a lot of companies and organizations can do is also look at investing in minority startups, especially in the tech arena. and giving opportunities to have -- to give facebook some competition. this is not going to be an overnight process at all it will be long-term but the problem is, and this is where i think diversity and inclusion processes have fallen flat is that if people did it because it was the right thing to do, we wouldn't be having this conversation right now. >> right. >> the only time we really see change affected is when there's
11:22 am
a bottom line that is affected to your point, facebook, you know, when are they going to see that -- when are they going to see that happen with their organization are they going to see it at all? they may or may not. the process will be long >> yes. >> we have to stay committed again, these organizations need to actually look within and make changes. really understand that -- >> a lot -- there have been a lot of companies and a lot of rivals for different reasons trying to take eyeballs and dollars away from facebook and it has proven very difficult so, we'll see if in the social arena the outcome is different shelly, thank you for being with us. >> thank you for having me. in the meantime, dow has gone negative. down about 44 points on a wednesday where we're obviously seeing some light volume when we come back, we'll check in with slack ceo stewart butterfield on a new deal they have when "squawk on the street" continues in a moment.
11:23 am
11:24 am
11:25 am
european markets are set to close in a couple minutes. see ma moe di has the breakdown. >> jon, foming a strong session in asia where chinese stocks extended their gain by more than 8%, action in europe relatively subdued down fractionally with france the worst performer down 1% the focus remains on the spending pledges made by the uk chancellor this morning who announced he's cutting the vat tax for the hospitality industry by 20 to 5%, paying companies to bring back furloughed workers in
11:26 am
a package that amounts to around 30 billion pounds and perhaps most interesting a new initiative to discount meals at restaurants in the uk by as much as 50% in a plan he calls eat out to help out in the month of august it's seen by economists as a rather unprecedented move. the stock of the day, though, in europe is nokia. the worst performer on growing concerns that the telecom giant may lose verizon to samsung following a downgrade by jp morgan of the stock from neutral to overweight. in the finals we're looking at hsbc following on the report of bloomberg the trump administration is considering undermining the hong kong currency to the u.s. dollar a move that would be disruptive to banks like hsbc that have high exposure to hong kong. jon and carl back to you. >> thank you. after the break, slack cofounder and ceo stewart butterfield joins us first on
11:27 am
cnbc we're back in two. so many people. d-19 is stillg if you've survived it, then you're the heroes we need. the plasma that's in your blood can literally save lives. but we have to act fast. so please donate. you fought for your life. now, let's work together to take down covid-19 to donate plasma go to find a stock basedtech. on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter trading decisions. fidelity.
11:28 am
11:29 am
♪ welcome back, everyone i'm sue herrera. here is your cnbc news update at this hour. florida just reported almost 10,000 new covid-19 cases. 2,600 more than tuesday's daily count. confirmed cases in the entire u.s. are now above 3 million the supreme court expanding protections for religious institutions from discrimination lawsuits brought by their employees. in a 7-2 ruling the court blocked two teachers from catholic schools in california from pursuing discrimination lawsuits based on age and disability the supreme court also allowing more employers to site religious or moral objections to be exempt from the affordable care acts requirement that they provide no-cost birth control. president trump threatening to cut funding for schools that don't reopen in the fall meanwhile, new york city mayor
11:30 am
bill de blasio saying most students will only be in school two or three days a week so that social distancing can be maintained you can go to for more on the various school reopenings across the country you're up to date, carl. i'll send it back to you. >> sue, thank you very much. getting news about united airlines and warning employees about pending fur lloughfurloug. >> massive job cuts coming to united now the company is detailing exactly how many employees may be laid off. they're going to be sending out warn notices these are required by law that you send these out 60 days before a potential layoff. 36,000 front line employees could be laid off. these jobs will be going away likely come october 1st. here is how it breaks down they still need to do some negotiations on early outpackages. voluntary leaves of absences flight attendants, 15,000 jobs being eliminated
11:31 am
11,000 customer service and gate agents 5,500 in maintenance and then 2250 pilots could also potentially be laid off. here is the time line, guys. by mid to late august they notify those employees and they say, okay, here is how many jobs are actually going be to be eliminated through furloughs there's also part of the equation, how many will take a voluntary separation that impacts how many will have to be ultimately involuntarily let go bottom line, come october 1st, united will be dramatically smaller. 36,000 front line employees, carl, just to give you some point of reference, that's about 45% of the jobs that interact with customers in some fashion 45% will be likely eliminated come october 1st again, this is all because of the drop in demand that we've been seeing. >> wow phil lebeau, those are some rough numbers. we hope, of course, that that can turn around for the sake of those employees and the broader economy.
11:32 am
thank you, phil lebeau. and it has been meanwhile one of the big winners among the stay at home stocks, slack shares are higher again today as it announces the acquisition of enterprise directory software maker. joining us is slack cofounder and ceo stewart butterfield. good morning. >> good morning. thanks for having me. >> great to have you i want to get right into the strategy behind this and what's happening in the collaboration space. it seems to me the battle space for collaboration platforms has moved over the past couple years from internal company communications increasingly to collaboration outside company. you were working on slack connect. how does this fit into that and the experience that you think is going to make your platform better >> that's a great question and i think it's obviously especially important right now, i don't think we'll be back in the office for a while, but even to the extent that people do end up going back to offices let's say later this year or early
11:33 am
next year, it's still going to cause a generational shock and much bigger reliance on software couple weeks ago we announced slack connect. the idea there is to both increase the efficacy of collaboration across organizational boundaries while also increasing the security so, it's two slack organizations can set up a shared channel between them and have more than one and in fact when we did our convertible debt offering a month and a half ago we did that in a shared channel with goldman sachs and morgan stanley and jay wood and put the whole thing together in that way it's a great way to collaborate. and then this morning we're announcing the acquisition of fore meadow, their tag line is re-imagined. that's obviously going to be especially important now 12% of our employees started after the pandemic they weren't flown to headquarters for a week, didn't do the on boarding, they haven't met casual aquint tanss.
11:34 am
the weak cultural ties and value built up will be to be realized in another way. >> that's 1 in 8 that's a lot of employees. >> yeah. >> tell me how much of this deal came together during the pandemic your communication with the founders there, your decision to do it and how much did the pandemic and this environment accelerate the deal itself >> yeah. it's funny i think we probably started talking just before the pandemic hit. so, i've actually never met any of the team face to face no one on our side has met anyone on their side face to face the whole thing was conducted using all of these technologies. we of course had a shared channel in slack with them but we also just set up -- it's them it's us. it's the lawyers it's kind of the accountants the whole suite of entities that are required to pull off a deal like this. and i think you're going to see more and more of that happening.
11:35 am
companies are not going to stop doing offerings or acquiring or see road shows conducted in that and way and ipos when you're crossing organizational boundaries, the profile information, the identity of the person, is also important. you know, inside the company, we're offering much richer search, much more detailed information about groups and things like skills and background not just the phone number and desk location. but we also want the ability to have some of that cross organizational boundaries. so partners, collaborators, professional services firms, customers, venders can have access to that as well >> stewart, it's a fascinating picture that you're painting about the way our lives will be virtually run. i guess from here on out and that's not with standing any kind of medical breakthrough i wonder when we think about i guess you call them risk factors that would unwind the digital narrative. if we had some massive breakthrough on a vaccine,
11:36 am
whether it's this year or next, how much of this would truly get undone is it just sheer inertia at this point? >> it's a great question and, you know, i'm obviously hopeful for some medical breakthroughs because this is not a great cause for this but i do think we've dislodged a bunch of equill lee librium. when i talked to my peers and other ceos and customers, no one is unhappy about stopping business travel. obviously that will come back to a certain extent, but i don't think it will ever come back the way that it did. as managers adapt to this environment and learn how to manage their teams using a greater reliance on software, i think a lot of those will persist. we have 122,000 customers. behad almost all of them before the pandemic started growth has increased but there's a big value to using slack before this and values to using a bunch of other tool. now customers are leaning in, finding more and better use
11:37 am
cases and improving their processes and there's no reason to expect they won't continue. while i do imagine many people will be back in the office, i think it will be much more casual and flexible schedule we're kind of anticipating that most people, 60, 70% will probably want to be in the office one or two days a week. we re-imagine the way offices are configured so i think we're again hopeful for a medical breakthrough but i don't think that will impact this change in trajectory. >> yeah. i wanted to ask you more about that, stewart. i remember talking to you years ago. you're kind of the ultimate decentralized office person. based in canada for multiple efforts but you got a lot of work force in california and other places i would think if there's anybody who would have been working entirely remotely already, it would have been you. so, to what degree are some of these voices that are saying it's going to be all remote pretty much from here on out, the office will just be a gathering location, to what
11:38 am
extent might they be overshooting based on what you've seen the needs of culture are, the needs of management, the needs for people to feel connected in a more intimate way? >> yeah. that's a great question. i think again one of the reasons that we're excited about rimeto, those what we call weak ties which maybe don't sound important but i think they're critically important, you have strong ties with your manager and peers and people on your immediate team but we're a couple thousand employees and organizations much larger than ours part of the fabric of those organizations and the way that collaboration happens relice on casual aquinn tanss. i think we're going to continue to need offices and continue to get people together even if 20% of employees are fully remote. the majority of the remainder are people who are flexible. you kind of get people together to brainstorm, to plan, to kind of prioritize, to get the cumulative bunch of work to do
11:39 am
but when you're sitting at your computer doing that work, you might as well be at home and be more comfortable and skip the commute and more comfortable could be in the office someone referred to unbundling the office which i really like think about all the different things we do there the one that takes up the most square footage and least important is housing all of these people who are sitting by themselves at their computer not talking to anyone doing their work they can do that anywhere. >> well, stew, we got this far in the conversation without mentioning microsoft but we'll do it now. because it's on a lot of investor's minds as kind of the elephant in the room or in the market how do you view the way that your competition with them is shaping up under these conditions, your ability to get deals done versus that larger company, your ability to recruit and retain talent versus that larger company and develop product. >> i think in all those respects we're doing great. i think we're a little
11:40 am
misunderstood and the competition is little bit misunderstood. i think the companies compete and there's a long-term strategic collision between email as the fundamental way that people get work done and slack or other channel-based messaging is the fundamental way that work gets done, but we have been competing with microsoft for three and a half years, almost our whole existence and entire enterprise existence has grown up in a world where teams is available to people for free and it's bundled in there. nevertheless, we keep on wing in intersurprise. this last quarter we announced site license for amazon going wall to wall before that, it's companies like nationwide and the airlines and it's veterans affairs is a big win, the quarter previously i know a lot in the federal government we're doing great in enterprise. we're also doing great with tens of thousands of small businesses around the world and increasingly we see them wanting to connect in the first 24 hours after we
11:41 am
launched the new multiorg shared channels which is a mouthful, within 24 hours we had almost 1,000 businesses using it. by the end of the first week more than 2,000 and now coming up to two weeks and we're about 5,000. so 5,000 businesses have now started relying on this. those interactions between the large enterprises who are vendors obviously a lot of smaller companies and the smaller businesses and all of their connections are something that i think we're going to have a driver for the business for the long run. >> finally stewart, we heard from aws's head of public sector just a few days ago. and she was saying that this crisis has accelerated a lot of public sector move to cloud, to sass because of the demand from their con stitch wentsies that really need to connect to them digitally. so my question to you is, in what areas are you seeing that acceleration, and how do you
11:42 am
expect the reduction in revenue to some of those organizations that are taking big tax revenue hits to affect their ability to pay you? >> yeah. it's all connected and we're seeing some of the macro impact the way it's showing up is because we have such a large number of customers they're relatively predictable we're seeing a lack of expected expansion. obviously some companies go bankrupt and some undergo lay jaufs. what you see in the largest case is companies hiring much more slowly, hiring freezes we're not especially worried about that other than citizens and participants in the economy. but we're not worried about that for slack because eventually that turns around. eventually we'll see a recovery and those businesses will start growing again. try not to focus on the turbulence that we'll see in an environment like this and focus a little bit more on the long-term customer value as you said, there's just a massive acceleration and we're working really closely
11:43 am
with partners, dozens of companies in the case of this rimeto acquisition, deepening our partnership with identity. it has two parts authentication security and also the profile what the human beings. and we want to make that available at the software layer so that people can create more powerful applications. and that's third party software vendors and system sbe gratders and software developers inside our companies. >> interesting announcement today stewart building out what slack is thank you for joining us first on cnbc. >> thank you so much. we continue to turn around these levels here, obviously going back and forth between the green and the red. the united news took a little enthusiasm out of the market and we're watching the vix back to 30 highest in about a week. we're back in a moment introducing stocks by the slice from fidelity.
11:44 am
now you can trade stocks and etfs for any amount you choose instead of buying by the share. all with no commissions. stocks by the slice from fidelity. get your slice today. stocks by the slice from fidelity. you may be learning about, medicare and supplemental insurance. medicare is great, but it doesn't cover everything ...only about 80% of your part b medicare costs. a medicare supplement insurance plan may help cover some of the rest. learn how an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company might be the right choice for you. a free decision guide is a great place to start. call today to request yours. so what makes an aarp medicare supplement plan unique? these are the only medicare supplement plans endorsed by aarp because they meet aarp's high standards of quality and service. you're also getting the great features that any medicare supplement plan provides.
11:45 am
you may choose any doctor that accepts medicare patients. you can even visit a specialist. with this type of plan there are no networks or referrals needed. also, a medicare supplement plan... ...goes with you when you travel anywhere in the u.s. call today for a free guide. come on in, we're open. ♪ all we do is hand you the bag. simple. done. we adapt and we change. you know, you just figure it out. we've just been finding a way to keep on pushing. ♪ grmpblts you missed it earlier this morning, harvard and m.i.t. suing the department of homeland
11:46 am
security over those new i.c.e. restrictions robert frank has an update hey, robert. >> carl, this is getting to be such a big deal because international students are the financial lifeline for so many top colleges and universities which is why this backlash has been so swift. harvard and m.i.t. filing a lawsuit seeking temporary restraining order against the trump administration revoke visas and deport international students whose classes are all online the suit says this decision leaves hundreds of thousands of international students with no educational options within the u.s. harvard president saying i would affect about 5,000 of their students and that we will not stand by to see our international student's dreams extinguished by a deeply misguided order. we owe it to them to stand up and fight and fight we will. there's a lot of revenue at stake here as well with more than 1 million international students in the u.s., about a third of them from china. they spend 45 billion a year on school costs, not to mention all
11:47 am
the economic spending to local restaurants, services, real estate, supporting over 450,000 jobs now, some universities had already seen revenues drop by over 25% due to the decline in international students before the virus. now with states cutting education budgets this will put another financial strain on all these colleges and universities. guys, back to you. >> yeah. robert frank, this is a big deal in the education space thank you for that and coming up, coronavirus cases in the country now topping 3 million. with infections continuing to rise in florida. we'll speak with one bar owner in that state on the path forward. stay with us turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want. okay, it's got screeners and watchlists. and you can even see how your predictions might affect the value of the stocks you're interested in. now this is what i'm talking about.
11:48 am
yeah, it'll free up more time for your... uh, true crime shows? british baking competitions. hm. didn't peg you for a crumpet guy. focus on what matters to you with thinkorswim. ♪
11:49 am
iredefined the wordng th'school' this year. it's why, at xfinity, we're committed to helping kids keep learning through the summer. and help college students studying at home stay connected through our university program. we're providing affordable internet access to low income families through our internet essentials program. and this summer, xfinity is creating a virtual summer camp for kids at home- all on xfinity x1. we're committed to helping all families stay connected. learn more at
11:50 am
look at the home builders this morning when rdr and poulten group, as those low interest rates have sent home buyers rushing back into the market. the nation's fifth largest builder saw record sales last month. we'll be right back. dy for it. a digital foundation from vmware helps you redefine what's 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.
11:51 am
vmware. realize what's possible. i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424.
11:52 am
♪ ♪ now is the time to support the places you love. spend 10 dollars or more at a participating small business and get 5 dollars back, up to 10 times with american express. enroll now at 60,000 covid cases in the past 24 hours, 7,000 new cases
11:53 am
from the state of florida alone, with positivity rates now over 20%. joining us this morning to join us is paul cippirone, who has over 26 restaurants across florida. good to talk with you this morning. >> thanks to talk with you today, carl. >> we've been trying to get the lay out of the land from miami-dade i wonder what the picture look like in central florida, where you are more it concentrated. >> the bulk of my restaurants are up in jacksonville, st. augustine area >> the president vice president is saying some of the mitigation measures are starting to work. is that the view you are seeing? >> covid has been a very
11:54 am
interesting endeavor we started opening up the restaurants. it got us up to 50% and it flared up. we've been pretty lucky in jacksonville, citi augustine, even orlando they left us at 50%. miami-dade, somewhat south of us, they have closed up again and it's very difficult. one day closed, not sure what's happening on the other day what's been the bigger challenge so star? getting people in the door demand or getting employees in the door getting labor to come back to work >> well, we had them coming back it was good, employees were showing up, restaurants, people were feeling good when it first came back at 50% there was a lot of excitement. up until then, it was good, and then they started with day after
11:55 am
day the news that covid, the covid, the covid, how bad it is. it got people scared then they brought the masks into place, now people are really scared, and they're starting to argue with each other, why don't you have a mask on why are you wearing a mask and all of this. there's no clear-cut rules, and some counties, put a mask on some counties you don't need a mask cdc -- or the w.h.o., one day masks are good, the next day masks are not to be worn very confusing nobody knows what to do. as for the employees, they did all start to come back to work, then the scare came again, and in our restaurant industry, what we do, they're all the 20 to 25 age group. they're listening to all these news reports, and they don't know they're scared, and i can't blame them they hear it's bad, so they
11:56 am
don't want to come to work, and it's very, very difficult right now. my two biggest challenges right now are getting employees to come back to work and getting the food product on a constant stream >> yeah, paul, that really does sound challenging. i understand that one of your restaurants in waterford lakes village did have an employee test positive. i'm sure, you know, employees wonder, what to do in that situation. i wondering what you're seeing and maybe hearing from other owners how the contact tracing works. i've heard from other places, when that works well, people end up feeling better about the process. is contact tracing working well when there is a positive test, to be able to contain that and make people feel like the authorities have a handle on it? >> it has worked we've been very lucky and unlucky.
11:57 am
our employees -- we've had two or three restaurants that had employees, but it just so happened they hadn't been to work in ten days, so they all got together and they did talk the fact that they know about contact tracing is very good, because they're tariking, okay, i was with them, i better not go out. so it is helpful in that way we still close down the restaurants, have them sprayed down, all the work done to make sure they're sanitized against, so you're always closed down two, three days, another day or two to get the staff back in and going against. >> paul, if you and your restaurant buddies had half an hour with the governor, with cdc officials, with white house officials, i mean, are there ready ideas that you would pitch to them as things that could be done pretty easily to get the situation more under control
11:58 am
>> i think continuity is the biggest thing. put it in order and have it the same for everybody it just changes day by day you have inspectors coming in and he wants certain things done, and then inspectors in another area, they want it done their way. we're scrambling every day now, instead of taking care of the customer, trying to take care of the rules and the laws, so continuity is good, and open stores, close the restaurants, open the restaurants, 50%, 25%, it changes daily, so make it so that we can always move in order instead of changing, changing, changing
11:59 am
one last point, we pay close attention to disney and the phased reopening on saturday there at lake buena vista. is that a focal point for folks in orlando is there a feeling if disney can do it, everything else will follow in time >> universal studios has been open about a month know. there's a lot of people say yay, a lot of people are saying that's horrible, which in this scenario, you always will get half the people saying great, half the people saying bad disney opening up will give people the feeling that things are safer now and they can start moving again i personally think it's great, they're out there, and they're going to do things properly, as disney always does hopefully you won't get a big backlog on this,
12:00 pm
and people feel like they can do things, do it carefully, do it smart, be responsible for yourself by wearing a face mask. if you're sick, don't go out, don't bring someone else. our best to you. thanks very much thank you very much. welcome to "halftime report." front and center this hour, the future of facebook, a highly anticipated a duty of the social media company's practices is raising concerns about tackles hate speech and misinformation our investment committee joe terranova, jim leben


info Stream Only

Uploaded by TV Archive on