tv Squawk on the Street CNBC January 8, 2021 9:00am-11:00am EST
grow and banks and insurance companies and healthcare companies prevent those opportunities. so what you've touched upon is there are all of these different areas where the market is not expensive. and where clients should be putting money now and that's really why we're excited about the market, for the next year. >> david, thank you so much for your time. it is great to see you today >> good to see you. >> it is friday. finally, this weekend, finally made it. we'll see you back here on monday morning right now time for "squawk on the street." good friday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber stocks not far from new highs as the president acknowledges that biden's term will begin a week from wednesday some democrats call for impeachment, december jobs down 140k, the first negative print since april. road map begins with the day of records. new highs for covid cases and deaths stocks rally to all time highs
why one bank is saying investors should, quote, sell the vaccine. >> and as carl mentioned, pressure has continued to mount on president trump two cabinet secretaries are out, rising calls for invoeking the 25th amendment. those both seem somewhat unlikely, this following the riots on capitol hill. and we got to get to tesla once again. why? because of its incredible wild ride on track for its 11th straight daily gain. the stock up more than 740% in the last year. and it does have a larger market value. it is funny, carl, just the other day, i was looking at the differential between tesla and facebook, it was about 50 billion, it made it up very quickly. >> yeah. as we get another analyst today, play something catch-up on tesla. jim, quickly, on the president's video from yesterday, evening. are we done with election risk at this point? can we start talking about what comes next i think we can
i do think it was a moment of truth from the president always quizical. i think question move on i think what we have to move on to, though, is covid i think that we -- not that i want to minimize what happened in the steps of the capitol. that was a travesty. but i do think the covid numbers are horrendous and we tend to ignore them because of what -- of the farce going on in washington, but, david, can we really ignore something that is killing so many people every day? >> i don't think so. 4100 people yesterday, jim 3700 or so the day prior to that we're at the highest death toll we have seen i think we're at the highest single day, 272,000? it is out of control you heard scott gottlieb as he comes on frequently on "squawk box", there is concern about the strain, the uk strain or the south african strain, where it
is, how quickly it is spreading, because, of course, it maybe is more transmissible, thankfully not more virulent, but we got to be concerned as the vaccine rollout was interesting also looking to dick parsons, new yorker who went down to florida, he gets the vaccine, but new york doesn't seem capable of figuring out how to get the vaccine out. >> one thing that is devastating is the truth about what happened here, which is that the president had no clue. decision to not have a federal move, but to have it state by state, when you think we had 6 million people vaccinated against smallpox over three weeks in new york city, very small incident, you can see just how ludicrous and stupid everything is being done now everybody is starting to tell the truth maybe we don't fear the president on twitter, i don't know but i do think, carl, that when this first broke and came home from the super bowl, without watching the game, i was reading
harvard school of public health, talking about 60% of americans will get this before it finishes and i think that when the -- when dr. gottlieb talks about a footrace, all along, i mean, i cannot believe how prescient that the publications were that 60% are going to get it it has become a matter of time unless we get some new president comes in and says, listen, this is all i'm going to do is vaccinate people i think it is possible everybody gets it. is it a stand-like situation, yes. yes. we're doing this all wrong >> looking at some of the comments this morning, jim, from say the mayor of london, who says city is in crisis mode. one in every 30 londoners is infected maybe the silver lining here this morning, david, is the bid from pfizer that says their vaccine does appear to work on the uk strain, the variant, and the south african strain, though
we're waiting for peer review. >> and you heard, again, i listened to scott gottlieb, we talk about the science of it and the spike protein and things of that nature. that's good. it still works the question continues to be when is the vaccine going to be more broadly available to people, who are still in high risk groups. starting with just elderly and, jim, i certainly hope you're wrong on that prediction. even 60% seems a number hard to imagine. you're talking, what, we got 320 million people in the country, so that's an enormous number that said, there are plenty who may have had it who never were tested and don't know they had it, and that's the insidious part of the virus, the fact that it spreads so easily from people who are asymptomatic which is why we still have to tell people wear a mask and it doesn't go unnoted that so many of the people who stormed the capitol the other day were not wearing masks and apparently some of the legislators themselves were moved to secure locations refused to put on
masks. which is just hard to imagine. >> i would call them idiots if it weren't for the fact that i'm jimmy chill. no joke about this let's understand eem i'm going to begin to take an at home test on air next week it is available. the public health system is ready to help. the medical system is not. the fda approved this, what i'm going to be taking i got a box of 20 of them. not readily available. why? because we have a system in this country that is completely dysfunctional. it should be available to everybody. that will keep you home during those days between when you caught it and are asymptomatic and when it is on russ ybvious it which is the crux we know that how to stop aerosol. we have a system where we have a regeneron pill, regeneron drip that works that we don't support because the nih doesn't support it
as dysfunctional as the government has been on so many other issues, we have been just a travesty in this country and are we all going to get sick because we're a travesty how can you vaccinate 6 million people in six weeks, most vaccinated in three weeks, for smallpox epidemic in this country, in new york city, and now we can't even do this? carl, i don't want to -- i'm going to go to florida i'm lucky. i have enough money to go to florida. >> yeah, yeah. fauci, though, was -- i would say was net encouraging saying we can get to a million a day, within our reach, but we're not there yet. as it pertains to stocks, j&j, hopefully in the days to come. we mention eed citi call yesterday, they cut u.s. to neutral. david solomon spoke to axios yesterday and said i would be cautious on equities and b of a, sell the vaccine,
frothy prices, greedy positioning, inflationary and desperate policymakers, ultraall ult all ultimately a toxic brew in 2021 i wonder if you are more open to it now than you were back then. >> no. not yet. as i said last time on "mad money," more buyers than sellers. there is a group of stocks called the s&p 500 and not issuing any new stock. i look at that group, there say huge shortage of stock coming from there we have a lot of spacs that are coming public, but not that big. we have tesla. and tesla is a wonderment, it never happened in our country before, a stock that won't quit, which encourages so many other people and so many other companies to be the next tesla i had plug power on last night $3 last year at this time. now look at it 50 everyone wants the next tesla. the fact is that it is not a stupid hunt.
it is not what i call a snipe hunt >> look at plug power. after that deal, of course, yesterday, they announced you had them on with -- >> they're hydrogen power. we know that, by the way, that -- >> chinese ev company nio, look at the performance of that one put up bitcoin because, i mean, i don't know, jim, what is that saying same thing >> bitcoin replaced gold, i think, as the repository of safety, which is, i know, going to come back and haunt me on youtube. but i have to tell you that we're in a strange time. we have never seen this before i will say, david, it is too early to say we're quitting. this -- it is too early to say when we got $2,000 checks that might be coming and -- >> but those checks are going to be going to people who are are also you hope in need of paying the rent, of making sure they can put food on the table, that would be the expectation >> how much goes to the merry
men? >> i don't know. we won't know. >> the merry men -- >> the merry men believe that stocks don't go down merry men being -- >> no reason to believe that because they haven't gone down since they became involved in the market place, let's call it in april >> so, david, t portnoy, the evangelist was right when i say merry men, i say that because robinhood is 17 million strong, but so many others will get the check. they don't understand discipline, and so they created a new world of discipline. carl, there are people who are buying stocks that are up, companies are issuing stock and people are thrilled and they buy that plug power up $4 more as i watch this screen. yesterday, there is a story about apple, and the car, and
that -- look, let's just understand we're in strange times. a lot of capital talking on "squawk box" about whether it is jay powell that is the problem. i think it is covid that is the problem. if we get a shutdown, of some proportion as we get the vaccine out, you can't raise rates you can't. >> can you raise rates and lose 140,000 jobs in december >> no, you can't raise rates. >> no. >> so what >> we did have revisions up for november and october, but, still, no. >> it is a very odd different time everything about this time, carl, no playbook. no playbook. people come on, talk about value versus growth. we like value in the morning and then the next day it was every single growth stock up much more than value is there a pattern here? yes, people want to own stocks, and there is not enough stock. there is just not. not yet. >> to hear you say there is no playbook, i mean, any -- the
playbooks they have just aren't valid given the extremity of scenarios we have seen but i'm not hearing you talk about corporate earnings, or -- it is all -- i hear you talking about flow, i hear you talking about positioning, i don't hear you talking about profits. >> i think profits are going to be pretty good for companies that do business overseas because we forget we have been using currency, dollar adjustment, dollar is going their way. i think that china, mr. president, if you're listening, i'm sorry to say this, china is an amazing growth engine, they'll probably pass us anybody who sells into china is doing incredibly well. our banking system is in tact and the bank stocks are very inexpensive. the most expensive stocks are obviously governed by the tesla concept, or by the digitization concept. i'm going have micron on tonight. it is a very inexpensive stock if you get the economy open, then you got the disneys of the world flying and as the economy stays closed, you got a whole bunch of other stocks, the
amazons flying there is a lot of stuff flying, david. i bet you boeing is going to fly after they paid out that -- >> there is a lot of stuff flying and i don't -- >> ever seen it like this? it is not 1998, 2000. >> it doesn't repeat, but it does rhyme it does rhyme. >> does it really? >> carl? >> we're going to get to a lot of the calls today pretty steady diet of names, cvs, jetblue, dr horton, upgrade of tesla, double upgrade of x. we'll get to that. not too far away from new highs at this point. we'll be back in aine. mut keeping your oysters business growing
fascinating story developing this morning involving a small company, communications. announced they have been acquired by cisco back in july 9th of 2019. why? a few different things going on. let me bring you the latest news that i don't believe has hit yet, which is you got these companies actually in an argument, it was a $70 deal, this is a manufacturer high speed optical interconnectity. that group has gone skyrocketing since they announced the deal back last -- the summer of 2019. fast-forward to this morning, 12:01, that was the walkaway that is when basically either
side could terminate the agreement. and acacia terminated the agreement. they hadn't gotten approval from the chinese antitrust authorities. well, cisco, this morning, is going to say, and has said they did get that approval from the chinese authorities and they released the company indicating on january 7th, yesterday, received a statement from sammer, there is the beginning of it, seeking confirmation from the delaware court of chancery that it has met all the conditions of closing the deal and is seeking a court mandate including, there it is, the approval of china state administration for market, and an order from the court requiring them to close. cisco received a statement saying the agency has determined cisco submission is, quote, sufficient to address the
relevant competition concerns. what does all this mean? let me try to explain it for a minute here. acacia wanted out because the stock would go up. as you see, it was going up. much higher than the $70 bid why? because they were able to exercise the provision that said they can get out, given how much time had passed without them getting aproval from the chinese antitrust authorities. but apparently cisco telling us, they have received approval from the chinese antitrust authorities yesterday, though, again, sufficient to address the relevant competition concerns is that full approval this may end up in court this is going to be very interesting to watch jim, this group has gone up a lot. we know that chip stocks have gone up an enormous amount what was so interesting and always planning on discussing this later in the show was that acacia was walking way from the deal because it was going to benefit from doing so given the stock would go up. maybe it wants to sell itself again at a higher price, but now we have this thing going to court, because cisco is going to say, hey, we got approval from
china, just in the knick of time that not unimportant in the larger context of china, u.s. relations and whether you can get chinese antitrust approval for these deals that are out there, whether it is a xilinx deal, the deal that -- the armed holdings deal that nvidia is trying to complete, so very interesting story developing here that we can give the latest on cisco says we got approval and we are closing and we are going to go to court and you better not try -- we'll wait on the court's decision here acacia says we're out. >> this is one i thought was a done deal. i like the deal very much. i know if you go to delaware court of chancery and have this approval, how does cisco lose? >> i don't know the specifics of the approval, i don't know when it was received. i don't know about the 12:01 timeline for the 8th and whether they made it before that they say they did. it is something you need a judge to make a decision and to go back, this was july 9th, 2019
deal, 70 bucks a shark the gre.p why they didn't try to renegotiate or why cisco is playing hard ball here is unclear. but we'll keep an eye. not that large a deal, dollarwise, but sort of interesting and important to see the back and forth. >> you mentioned the amd xi llix deal i do wonder, david, whether i think both amd, buying xilinx, and nvidia buying arm holdings had kept those two from participating in the semiconductor round. >> you have a lot of uncertainty as to whether they're going to be able to complete the deal or how quickly they're going to be able to complete the deal as you wait for sammer to give approval on the deals the antitrust authority in china, we know, takes its time and given the tensions, between our two countries, it is always in focus when it comes to antitrust matters for these
deals. >> from cisco to roku, a busy week, rosenblat to 420 and julia boorstin has news. is this about quibi? >> it is about quibi, carl we had reported that this was in the works. now officially roku has acquired quibi's global content distribution rights and this is for the roku channel that is the ad supported free channel that roku distributes not just on its own devices, but can be accessed anywhere this will be key fuel to help grow the audience for that free ad supported channel just to put this in context, it is more than 75 shows, a dozen of them have not yet aired on quibi. so a dozen of them premiering on roku this will be the first time that roku is premiering content for the first time now, it is about -- it is several hundred hours of content and i think it is interesting here to see roku move into this original content game. these are licensed rights, so this is not rights for perpetuity basically roku is taking over
the rights that quibi had purchased from the content creators big names here, anna kendrick, kevin hart, idris elba, it should help roku acquire new viewers. we don't have a dollar amount, we don't know how much was spent on this deal, but they say it is very valuable content to them. >> can't wait to get jim and david's comments on that after the break, julia, thank you. julia boorstin dow needs 152 points for a new high looks like we'll get 95, judging from furutes opening bell in just about eight minutes. ♪ ♪
all right, let's get to a mad dash opening bell two minutes from now. we end a tumultuous week to say the least. micron >> look, david, the micron call was i thought sensational. and i do have them on tonight. but they're talking about what's doing things the end market driving things. data center. d-ram better and mr. mehrotra will explain this. it is driven by data center, clout, artificial intelligence, these are all long-term growth drivers, storage and the reason i mentioned this is because everyone thinks stocks are so expensive. this was selling at 20 times earnings look where it is and it is a backbone for everything including auto. and all i can say, david, is that things are good around the world, their mobile business,
they took -- they lost with huawei and picked up by everybody else this is a good barometer this is the key to the market today. >> micron is key to the market >> yes, because this is an $88 billion company that has the pulse on pretty much every single part of the economy and everything needs chips micron's chips are in strong demand and there is not enough supply you know how good that is, you have great demand and not enough supply, prices go higher >> and generally speaking. i mean, most chips have gone higher >> right >> maybe even potato chips you have utz on a lot. >> utz is good the problem with pepsico is that that's -- that's not what you buy when the economy is accelerated. >> no. clearly you don't buy coke either, which has been a significant underperformer so far on this rally we had beginning year one with -- beginning the year. >> rather than trash tech, like so many people do, carl has a great new acronym for the stocks that are working
it is the consumer -- the consumer package good companies that aren't doing well tech is doing fine >> yeah, jim to your point, on micron, jpm goes to 100. credit suisse to 110 that citi double upgrade doesn't look too bad in retrospect. >> a lot of people got on board at 40. he was right the sanjay, the stock is really cheap who says that? that's up to you, jim, wheth whether -- he said our stock is really cheap you had to buy it ahead of the cycle turning. many analysts wanted to wait not as many that hated tesla as now like it moved to the sidelines. see evercore >> yeah. >> sell to hold.
$600 price target they're using. i guess that comes into play. >> to micron, nikkei has a piece out that nissan is going to have to cut production of carsshortas i wonder how much of a problem that's going to be for broader industry in 2021. >> sanjay, the ceo, is claiming it is other parts, not his part, that is delivering, that is causing the shortage but the shortage, he talks about it several times on the conference call, people try to say it was his fault, it clearly isn't. they're producing chips, but other chips that are in too short supply carl, it is a remarkable time, again. koim ba i come back and say look at micron, is that a value stock? i guess so people come on and say i like value now. just go buy it
it is not a spac real company david, you have something to say? >> no, i'm talking to my producer carrie trying to remember how many shares musk has. >> back on that. >> we were going over it yesterday, trying to make sure we had the numbers right on the share count for tesla and the actual number of shares he owns because he owns roughly 20% of what is roughly a billion shares out there, so about 193 million. he's the world's richest man the stock is up 20%. >> well, they add it to the s&p and people -- >> 20% in four trade -- four and trade daig ing days and two mins >> okay. want to sell a million shares of tesla, i'll give you an $840 bid right now. $848 for 1 million tesla. >> i wish i had $848 million that i could actually sell to you -- >> you can put it into bitcoin and make more money, carl. >> yeah. bitcoin going to a million i think i saw some guy saying it was going to a million
>> minerd at 400k. today, b of a says it blows the doors off of prior bubbles, the action in bitcoin over the last two years. >> well, okay. let's say it is a bubble let's say it is tulips let's go there we could be very early in the tulip. i don't think it is, but people say cramer says it is tulip. remember, you got a long ramp before that pops and the price targets that people are using and the people involved in it are not -- they're not fly by nighters they're people we respected. i find their credibility higher than the people who came on our air in march and said it was the end of the world, you got to sell everything. i don't know i have said, i'm very vocal that i own bitcoin. i don't come on air and say, go by bitcoin, that's not my job.
i said own gold, own bitcoin, own alternative assets, alternative assets are working. >> clearly are they clearly are >> gold is a little disappointing. >> gold is not moving along with bitcoin, bitcoin is on its own journey. >> yeah. >> like journey? >> like a journey. >> like a psychological -- like your journey, my journey you know, it is on its own journey it is disassociated from other -- >> journey good for you, david. >> how about spacs let's talk about them. >> i haven't talked about spacs for seven or eight minutes >> at least. you saw that one yesterday, i assume, the sofi another spac getting done. >> legitimate. >> what is interesting about sofi, i talked to people on venture capital, they have not had up round in years. stuck at $5 billion valuation. >> they're no merry men robinhood. >> no. and they, you know, solid company, solid ebitda, but not a lot of growth there, not in the
valuation. and then paola hapatia comes along and then the spac itself, do we have that, it is up dra mat matically. >> he's an old friend of mine, he bought the street.com, didn't have the great growth, but now maybe it will, carl, back to you. >> maybe it will why? why -- >> now it has a stadium that people are very excited about. >> it has a stadium. >> i had them on like 25 times >> they are going to be able to go public and the spac itself is a double already >> it was run poorly for a while. anthony has come in, made it -- made it be the youthful bank,
but we got a lot of youthful banks, pay pal, square >> interesting you can go from 5 billion, 5 billion, 5 billion rounds to up -- to 8.65. we'll see. you're right. >> maybe we shouldn't, but it is that's the problem maybe it shouldn't, but it is. >> and then on spac news as well, don't want to forget softbank price they're offering, well over subscribed 525 million bucks, 52 1/2 million units of 10. that's rajid misra running that for softbank softbank has a spac, like liberty has a spac, but isn't that what they're supposed to do in the first place don't they compete with the entity itself? >> gary cohn, vice chairman of ibm has got a spac david, the rules have changed. >> rules have changed. >> the s.e.c. is being obviated. >> it is >> well, yes when you do a direct listing
>> yeah. >> you do a spac listing, you can make projections you can make all sorts of great projections, you can't do that if it is going through the traditional system >> right >> projections are so good, carl you want to buy every one of these. >> wow guys, we got record highs on s&p, 3821, on the nasdaq, on the russell, on the transports jim mentions gary cohn, speaking of directors of the national economic council, we have some news from eamon javers >> good morning, carl. just been texting with national economic council director larry kudlow kudlow telling me that he intends to remain in his position as national economic council director through the end of the president's term on january 20th even at a time when other officials in the trump administration are resigning in protest over the president's conduct on wednesday during the attack on the capitol. we saw the acting director of the council of economic advisers tyler goodspeed make a different
decision and resign in protest kudlow saying he is not going to be doing that. he will remain in service to the president. he says he will be taking some accumulated vacation time between now and the end of the year and i think this sort of underscores the decision-making that is going through the minds of a lot of administration officials, and white house staffers as they calculate what their response should be personally to the president's conduct on wednesday separately, guys, i can tell you that i've been talking this morning with the seniored a -- former senior administration official who tells me that he has been talking to members of the house and senate and he's come to the conclusion that an impeachment removal vote would sail through the republican-controlled senate right now with enough votes to remove the president based on his conversations. so these informal whip counts are going around now as people try to assess the president's vulnerability here to removal from office before january 20th.
that's just one official's count, but it gives you a sense of the fluid situation here in washington as of right now, the expectation, the betting is not on an impeachment and removal in time for january 20th, it is a big hurdle to climb, in terms of the procedural practicalities of it, but that does give you a sense of sentiment anyway on capitol hill at least as far as former administration officials are hearing, guys. back over to you >> that will -- that informal whip that you're hearing does kind of dove tail with what clyburn said this morning and that is you could be looking at a house vote in the middle of next week. >> right nancy pelosi has said that the house is prepared to possibly move forward with impeachment quickly if the vice president does not move forward with the 25th amendmentand remove the president himself. that seems to be unlikely given the signals that we're getting from -- in and around the white house, that there don't seem to be the votes in the cabinet, there doesn't seem to be the sentiment within the heart of
the vice president to do that right now for a variety of reasons. so in terms of democrats hopes to remove the president before january 20th, that leaves impeachment, but that's a cumbersome process we have to go through hearings, we have to go through articles being drafted, house vote, then a senate trial and senate vote to remove to convict and remove all of that takes time the advantage, politically, for those who don't want to see trump remain a viable political figure is they can remove him in such a way if they conduct the vote and write the language that way in the senate, such that he can't run for president again in 2024 that might be a limiting factor then on the president's ambitions going forward politically, carl. but we're a long way from there and it does not seem -- it seems look a long shot to say the least at this point, that gives you a sense of where the sentiment is. >> all right we'll watch that closely thank you very much, aymeamon r javers the discussion of 25th and
impeachment is crowding out the stories we would normally be talking about today, the 1-2 punch of stimulus that at least axios says biden is planning through infrastructure and a variety of other methods >> yeah, look, there is just -- it is so confusing out there, because you have companies like union pacific, that's a classic infrastructure play. some people say it is a value stock, some people say it is a transport that is doing quite well, sells at 27 times earnings stock is up a quick seven bucks because we expect a lot of infrastructure spend david, there is a lot of people want to bet on infrastructure, a lot of people want to bet on -- that we have seen the job declines there are many people who want to bet on positives, and there are very few people who just say, you know what, covid is going to lead to some sort of shutdown as if maybe doesn't -- >> doesn't shut down again
if we were going to, we would have, don't you think, at this point? if we were going to shut down, we would have shut down. >> with president trump? >> in general. new york hasn't done it. the positivity rate is much higher than maybe at the height of the pandemic it was higher. other places have not. and we're just taking it we're just taking it, trying to get to the vaccine >> right you're right you're right that's why you -- we can buy a lot of stocks. >> yeah. between rates, between potential more stimulus coming, infrastructure spending, you say, and a lot of other things, people are -- >> tesla. >> people continue to be positive carl, quickly, just to clarify the story we discussed earlier, cisco and acacia end up in the court in delaware over the merger agreement which acacia says they have terminated and walked away from, and its stock being higher than the 70 bucks that cisco was paying, it would appear they would wave the china
approval and cisco even though they have gotten this language from china that says we're going to approve, they haven't received official approval, so acacia will say you didn't get official approval, you needed our waiver to close the deal prior to the expiration, we're not giving it to you, we're out. that's where things stand. they'll go to court. i wanted to clarify that because some people are saying, well, couldn't cisco just waved if they knew it was coming and it may very well be close, carl, but it is not yet there, i guess, the sammer approval we were talking about for the deal. over to you. >> financials are not leading, even though the ten-year is closing in on 1.1. let's get to bob pisani. hey, bob. >> good morning, carl. still a great week for banks overall. we're up which is remarkable, given the disappointing jobs report here is the covid winner we're in for a tough three or four months. this is why the market reacts to stimulus stimulus is the bridge that gets us through disappointing few months here, where we have a
tough time overall you see energy up, great week for energy, up 10% or so, tech is flattish for the week, up today. banks are down, but they had a great week, they're up 8% or 9% as a group, some of the big super regionals are up even more than that. we had a lot of new highs in the last couple of days, highs in industrials, caterpillar, dover, some banks, some material names, free port mcmoran, new highs as well quite a week here. trends, little tough to discern, but at least in the first four or five days, you could see some clear trends, and, again, a little early here, but small caps over big caps for sure. cyclicals over defensive values doing better than growth. small cap values just killing it this week. and believe it or not, asian stocks over u.s., that may surprise people, but with the weak dollar and sort of global reflation trade, look what has been going on in the asian markets. we have hit new highs in all of the big asian markets this week.
so korea is up 10% that's a new high. vietnam, china, that's the csi 300, that's the s&p of china taiwan, japan is at the highest level in 30 years. so bear in mind, weak dollar, global reflation, there is other markets doing really well, europe is shy about 5% of a new high remember what is moving the markets. keep thinking in terms of buckets, you don't get too confused, stimulus in the vaccine, versus the virus and taxes. stimulus is the most important thing. it is more checks in people's pockets, more infrastructure, local government, aid, then you have the vaccine against the virus. that's the most important thing, that battle will determine the pace of the recovery, whether we get a recovery starting in the second quarter or the third or the fourth, that's the determinant of that. speaking of taxes, everybody is dusting off the biden tax plans. this -- a lot of influence on stocks here. so he would raise marginal income tax for those making over 400,000. he would raise the corporate tax
from 21 to 28, he would tax long-term capital gains and dividends at a much higher level towards ordinary taxes this is going to affect the markets overall here the issue here is what effect would these taxes have on stock market behavior. would people hold stocks longer, sell them quicker, particularly regarding any changes in the higher capital gains taxes and, carl, you know, raising taxes on the wealthy is going to revive that old debate that raising taxes would not necessarily provide an increase in revenues. back to old 1980s argument and, yes, you have somebody bring up the laugher curve, not me, but somebody will bring it up. more on taxes and impact on the markets, trader talk.cnbc.com. have a good weekend. >> all right bob, you too still to come this morning, an exclusive interview with barry diller of iac later this morning on "squawk alley." look at how treasuries are faring this morning. the weaker than expected jobs number taking center stage, down 140k yield on the ten-year, initially
spiked in reaction to the drop in payrolls as you see from the chart, now above 1.1 we'll finish with a look at the dollar index, obviously had its own travails more "squawk on the street" in a minute don't go away. hey frank, our worker's comp insurance is expiring, should we just renew it? yeah, sure. hey there, small business owner. pie insurance here with some sweet advice to stop you from overpaying on worker's comp. try pie instead and save up to 30%. thirty percent? really? get a quote in 3 minutes at easyaspie.com. wow,
what what happened yesterday is a disgrace, and what happened as an american is an embarrassment. i didn't vote for trump in '16 i voted for him in the past election, november today i'm sorry i did that. >> america has been through hell and back it's become so tribal. and i just hope that president-elect biden will act to bring us together he's got full control of both houses he needs do that we need to heal from trump it was really a devastating
blow and we just can't go on. >> that's nelson peltz on "closing bell" yesterday adding to the likes of chris christie, bill barr, nikki haley, john kelly, and so on. >> right i thought -- it was tough -- it was painful. nelson did a lot of people wanted do saying, listen, i voted for the wrong person the 74 million people out there, i have to keep mentioning this 74 million people is not an aberration, and if you're going to unite the country a la what lincoln would say to do, you have to figure out how to bring 74 million people together to the party with solutions. >> i don't i don't. it's beyond that as you know it's people beyond our era it's different realities, different facts so to speak, or at least -- >> but lincoln -- >> i don't know how you do it.
but lincoln wasn't dealing with facebook and twitter and any other social media platforms that were giving people exactly what they wanteded and nothing else. >> well, my hope is that fewer people die of covid than they did in the civil war. >> we can go around debating stephen douglas, you know. >> frederick douglass would be better but a lot of people showed up. that's how they got the word out. >> i don't know what to else the analogue is the civil war. i don't know what else to do you saw the heart of the rotunda. >> that was the most disturbing single thing -- well, whatever. >> carl? >> yep i know and the flags will be at half-staff as brian sicknick has passed away, only the fourth capitol policeman to be killed in the line of duty in the past two centuries. we're back in a minute
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in the old days we would all be heading out to san francisco, be able to go to the jpmorgan conference and listen to lisa gillis i've got her on tonight. her favorite, cvs. the integration starting to work and they have health hubs, and, yes, it's a place where you can get vaccinated i'm looking forward to talking to her and micron is coming in a little if it goes down, then you do want to buy it i've got sanjay mehrotra he's got the best call the best analyst on the street can't resist, carl i want everyone to be safe, carl i want everyone to just be safe, please remember, you can't get it unless you get it from someone else. >> i think of what david said almost a year ago, you need to
evade it every time, but it only needs to get you once. >> yep. >> dr. swhiechweitzer over ther >> i wouldn't say that wear a mask. it helps. >> social distance don't have fun. >> okay. >> meaning, death gather look, i mean it. we've got to stop. we've got do what we can to stay alive. >> yep. >> jim, we'll see you at 6:00. of course, "mad money"y with jim cramer, 6:00 p.m. eastern time good morning, everybody. welcome to "squawk on the street." stocks not being led so much by banks. a lot of attention is on washington, d.c. the process on capitol hill is to see whether or not house democrats lead to impeachment, but the jobs number was a disappointment there are calls for impeachment. cabinet members are resigning, and there's public outcries as to the president's handling on the capitol. >> the markets at near record
highs. >> and we're watching the continuing rollout of the covid-19 cases in the united states this is the second day for record-highs hospitalizations, above 130,000 people. let's start in washington, d.c. calls for impeachment continue as more of president trump's cabinet members resign overnight. let's get to meamon javers in d.c. >> it looks like the path to approval is narrowing dramatically but the path toward impeachment is look to move forward as democrats are talking about that oncapitol hill before the president leaves office on january 20th we're seeing the resignation of cabinet members over the way the president handled himself during protests on capitolhill. elaine chao and betsy devos have
turned in their resignations larry kudlow says he's going to remain in his post through january 20th, although, he will be taking some accumulated vacation time between now and that date, so larry kudlow making a personal decision to stay at this point inside the administration meanwhile in terms of that sentiment on capitol hill in terms of impeachment, i can tell you i've been talking to a former senior administration official who tells me that he's been speaking with members of congress in the house and in the senate, and he says that his take now is that an impeachment vote and approval vote would be sailing through the senate he said, i get the impression it would succeed. he said everyone is tired of trump and afraid of what he might do next that gives you the sentiment of the republicans on capitol hill.
we'll see if it comes to that. there are a lot of hurdles to get to between now and any senate trial to remove the president. it's a long trial to go. it seems more likely than not. this is a fluid situation. back over to you. >> a real quick question a frade of what he might do next, i guess i would ask you to speck lay. what are people afraid of? what is the list of potential things people would be concerned about? >> well, look. i don't even want to enumerate sort of the hypotheticals here, but the presidency has vast powers when you talk to people around the president as i've done over the past couple of days, you know, they're very concerned about his association with reality right now and his mind-set and his anger we saw him issue that statement yesterday calling for calm and reconciliation, and a lot of people around the president view that as a positive step, but
there are just some real concerns over the president's behavior over those close to him and those who will sit in judgment of him on capitol hill. the question is sort of process, politics, and timing in terms of an impeachment and removal it's never been done that fast a president's never been impeached twice. a president has never been removed from office with an impeachment and senate vote. all of this is uncharted waters. we'll see where it goes. >> i'm curious what this does for the transition period. i know there's been some talk in terms of what could be another constitutional amendment to see a president-elected to actually enter office much more quickly, whether we could see legislation or proposal around that introduced now. >> yeah. that can't happen under the constitution you know, any removal of the president would result in mike pence becoming president of the united states for a limited period of time until january 20th
joe biden and kamala harris will not take office before january 20th you know, that's not an option but what you could see is pence as sort of a caretaker to take management of the transition before biden comes in. i can tell you there are trump administration officials very quietly moved forward with the transition process all the basic blocking and tackling of government, getting the biden people security clearances, getting their emails and computers ready to go, all of that is happening and not necessarily being brought to donald trump's attention that that's happening inside the white house. the staff is moving forward with the transition even if the president has not until last night committed himself to a smooth and peaceful transfer of power. >> yeah. i wouldn't expect to see that change happen this time around but for future elections eamon javers, thank you for bringing us an update.
sharon epperson has a connection between wall street and main street sharon. >> it's really astounding when you think of what people are seeing personally what they're seeing in washington and the pandemic in fact, politico did a poll that came out last night saying that 64% of registered voters were worried about the events that occurred at the u.s. capitol on wednesday and yet the market continues to reach new highs. we talked to a number of people, behavioral finance experts, market strategists, as well as financial advisers about what's occurring there, why there seems to be this disconnect with what's happening on main street and wall street. and the chief market strategist for schwab said there is indeed a lot of froth in the market, that prices are unsustainably high and investors need to realize what they need to be doing is sticking with their plan and not get emotionally involved with what they're seeing in washington or what people are experiencing at home with the pandemic. so it's a time to kind of
reassess where you are, but a very worrisome time for people, even though they're seeing their investments go up in many cases. >> yeah. sharon, i think peter bookfarr put it very bluntly. even though we're not seeing the markets react at least as of yesterday, what happened in d.c. has no direct bearing on the economic earnings, the economy -- here we go. i can speak this morning earnings or interest rates obviously the fed and liquidity story is playing well. the fact that we have so many more retail investors in the market right now, is there a sense at least from the folks you speak to that maybe their trading in this market or investing in this market without that institutional knowledge and that's having a role too >> well, they don't have that institutional knowledge, but they may indeed be following what the institutional investors
may be doing when you think that more than 30% of this market is individual investor, many of them -- and particularly new investors -- are investing on a digital platform they're with robo advisers they're self-directed but there are algorithms making the investments for them in that case, they may not be making any emotional decisions but going along with what the institutional investors and money managers are doing and keeping their money there. add to that the people invested in retirement plans where they're default investing in a target date fund that, again, takes the emotion out and rebalances based on their age and retirement date and allows them to take some of the emotion out of the investment proceeding those may be some things taming the fact that, yes, people may be looking at what they're seeing and be a bit frightened personally, but then they're following with what's happening with institutional investors as well with their own investments and own money.
it is important as we talk to some of the financial advisers and behavioral economists, it's important to stick to that plan. we always talk about it, but this rebalancing even when the rebalance means now you're 70 stocks, 30 bonds instead of 60/40, it's time to look at that it feels good until it doesn't one of the key points that dan egan made is this is the time to be aggressive in your safety, building that safety net, that buffer and that emergency fund so if you feel you want to be or need to be more aggressive, then you can be you have the comfort of doing that because you've been very aggressive, conservatively saving so you can be more of a risk taker with your investing. >> yeah. no question, sharon. that the past year has given us a lot of opportunity to stay disciplined. thanks so much our sharon epperson talking markets today.
>> my pleasure. >> you have covid cases at record highs jobs results disappointing how are the nation's governors reviewing this week? the governor of arkansas is joining us thanks for joining us. >> absolutely. it's good to be with you today. >> let's talk about d.c. first how are you viewing the fallout from the attack on the capitol, and what should happen to the president over the next 12 days? >> well, of course, i'm troubled like everyone else with what i saw in the halls of congress it's terrible for our democracy, for our image across the globe everybody who's visited the capitol has had the same reaction is how can this happen. clearly president trump has responsibility he brought those people there. he asked them to go toward the capitol. and that created the start of this scenario. and so what we have to do
between now and the transition is make sure there's good checks and balances in place. the remedies that are being talked about whether it's 25th amendment or impeachment, they're really not practical remedies in my judgment. i think we have to concentrate on just making sure there is a smooth transition. i was delighted with the words of president trump yesterday that he's committed himself to that, but we have to make sure that we have a steady ship over the next couple weeks and work toward a smooth transition >> are you confident -- he's back on twitter this morning are you confident he won't do anything else to incite rioters or unnerve americans before he leaves office? >> well, if there's anything we've learned about president trump is there's an element of unpredictability i think there is legitimate
concern as to all the actions that might be taken, but i'm not on the inside in terms of his behavior, his mental state, those types of things. i see what everybody else sees, but you have to be practical about it too i think there's ways to strengthen oversight i'm grateful for our public servants i understand those who have resigned, but also have a great appreciation for those with the pate ottic duty who says they have to help stick through and help biden understand the vaccination distribution and fight the pandemic those are the critical elements of a transition we have to focus on there are enormous powers of a president. it is somewhat worrisome and unpredictable as to how those powers will be used in the next couple of weeks, and so i know congress could be debating that,
but those are unwieldy constitutional powers to try to remove him from this office. >> meanwhile people died yesterday as a result of this virus. what are you seeing on the ground in your state let's start with the virus itself and then move to the vaccine distribution and what the plan is. >> well, our cases are high, way too high our hospitalizations are high even though we're not beyond our capacity we're having to surge some our focus is both on trying to get over thanksgiving, the holidays, christmas, new year's, and to reduce those cases. i'm hopeful that those will come down but the gatherings have caused them to increase our focus right now is both on reducing the spread and the cases, but also looking at the vaccination rollout. this is the biggest vaccine
administration in the history of our country, and the challenge is on each state i had a call yesterday with the biden transition team on vaccination. we have to have a seamless approach to this we articulated to them the challenges that we face, but we're stepping up. our vaccination in arkansas is going well in the first stages of it, but everyone is anxious to make sure they have that opportunity. i think the acceptance rate will continue to increase as the vaccination rolls out. >> governor, i am curious about that vaccination rollout. when hhs secretary azar earlier this week basically said put guidance out there that the state should pass the covid priority plan if it slows the administering of shots, are you taking that to heart is that something you're considering as you continue to, i i guess, roll out some of these doses? >> yes
that is -- we want to make sure the doses are put in the arms of people and not sitting in a freezer somewhere. we have a good plan for the administration of it, but there are always glitches. we will accelerate it as need be, but we right now in 1a, we've added our law enforcement/first responders/personnel we want to cover our long-term care facilities, workers and residents. once we move to 70 and plus -- and we made some adjustments there -- that's going to be a huge logistics challenge, because we're quadrupling the number that's going to have access to the vaccine and be in the priority line for that and so that's what our focus is, but we're not going to let those doses stay in a freezer. we're going to get them out. >> we had been worried about
uneven distribution protocols from state to state. we spent part of the morning talking about migration people going to florida, vaccine tourism is essentially what it is, is there any level of coordination between governors on this? >> well, there's a great exchange of information. we work closely together we exchange ideas. but, for example, the cdc guidelines is where you start, and a number of states including arkansas, we adjusted from the cdc guidelines, reduced the age from 75 down to 70, and people are very anxious in that category, particularly if you have underlying conditions so you asked me earlier are we looking at moving those up we will as soon as we get 1a covered. and so we will do what's necessary to accelerate getting those vaccines out right now our goal is to start that on february 1 and get the
1a category finished on january 31st but, no. every state is a little bit different. it has to have some flexibility to look at their greater vulnerability. we're trying to focus on the ways that will cover those with the greatest risk and those that are the most vulnerable. that's our focus. >> hopefully this is the most challenging period and we can move on from here with greater speed, governor. appreciate it very much. great to see> and later this hon hatzius on this morning's job numbers. we're back in two minutes. ok, just keep coloring there...
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the major averages set to rise this week take a look at pfizer and biontech saying their vaccine could work against the new more contagious strain, although, it has yet to be reviewed do not miss next week's jpm health care conference that will include biontech's chief executive on monday. chief executive on monday. we'll be right back. ♪
>> let's get into it your freight forwarding revenues improved by 16% last quarter your ocean freight increased by 32%,ing are signaling a strong demand in the u.s./asia lane what's the current environment like and how long you do see it lasting? >> we've got a supply constraint environment really around the world both in air, ocean, and here domestically on the truckload side given the capacity, it's had reverberations across the network with more and more freight to the ocean we've seen significant delays on the west coast where normally it would only be 3 to 4 days. significant demand we feel like we're starting off the new year on a really strong foot from a demand perspective, and there's a lot of tail winds that we think will have some
staying power throughout the year. >> another big part of your business is trucking it's highly elevated 33% higher in october and november, 27% higher in december i'm going to ask you again, how long you do see that happening and at what point do you see it increasing increasing even higher >> there's tail wind there, too, frank, both on the supply side and demand side. maybe i'll talk with the supply side when you're talking about the rates being up 20% or 30%, that's really a look at the stockmarket. that transitional market leads the overall market which is where freight moves. about 85% moves in that market but we've got real supply constraints that we think are going to carry over for the year there's a lot of bottlenecks in bringing new drivers in. we've got delays at the driver
schools and delays and constraints on drugs and alcohol. there will be a lag before we get additional capacity in the marketplace. you mentioned e-commerce on the demand side. but we've also had a strong consumer dollar strong through 20 into 2021, and now we're seeing recovery on the industrial side, the manufacturing side when i think about coupling that with a bigger potential infrastructure spending under the biden administration, we think about some of the other tail winds associated with a healthy economy and reopening, we tend to think there's legs to o this overall freight environment. we don't expect a 20%, 30% increase will carry forward because many shippers are in the process of reprocessing their prices right now, it won't be at those levels >> let's switch gears to d.c.
and the riots at the capitol your business is based in the minneapolis area and you saw your fair share of unrest. what was your take and if any of your employees were involved in this, what would be your response >> it was a sad day on wednesday and certainly something we'll look back on at in weeks and years to come. we're fortunate to live in this great democracy. t in the cornerstone of our democracy is the ability to participate in elections and government what happened in d.c. on wednesday wasn't about democracy and it wasn't about patriotism, and it certainly wasn't about decency. i'm really hopeful as we move forward we're able to come today and disagree without disliking and come together without demonizing the other point of view because we've got so much
important things to focus on as a country about getting jobs and getting -- we saw our jobs report today getting jobs back for our economy, dealing with the political and the social and racial unrest that is within our country today and putting an end to this pandemic that has really dominated all of our lives for the past year. >> bob, morgan here. thank you for joining us on this birmingham it. ice go program here. thank you for coming on. we have this new congress that's democratically controlled, albeit by slim margins here, what are your expectations in terms of some of the policies? what also are your expectations on these china relations, for example, and the trade tariffs we've seen >> no question we look forward to working with the new biden administration as well as pushing for things like a national hiring standard in order to provide protections for
any of our companies in the u.s. but no question, trade fuels growth and trade fuels jobs, and we really want to put a focus on open and free trade as well as ensuring that we can get an infrastructure built through that addresses the bottlenecks in our nation's highways and ports. there's too much lost with our truckers on the front line >> bob biesterfeld with ch robinson, thank you so much. >> let's get a covid update from sue herera. >> good morning, everyone. for the first time, the united states has recorded 4,000 covid deaths in one day. that averages one death every 21 seconds. it's the third straight day a new high has been reached with a
total of 11,700 deaths over those three days that's all according to the johns hopkins' count. the european union has now inked a deal for another 300 million doses of the pfizer/biontech vaccine, doubling its previous order, which means the eu will be getting about half of this year's expected supply and moderna's vaccine is about the third to be authorized for use in the uk, but the first deliveries are not expected until the spring you're up to date. i'll see you guys in an hour carl, i'll send it back to you. >> thank you very much coming up this morning on "squawk alley," barry diller with an interview. dow's gone red, s&p holding at 3800
job creation came to a halt as the labor department said farm markets fell. the unemployment rate, 6.7%. let's bring in goldman's jan hatzius. did the economy change as we head into 2021 >> i think they confirm that the high virus numbers and the renewed restrictions in some places are clearly weighing on the labor market, however, it's quite concentrated if you look at the decline all decline was in leisure and hospitality. excluding that, we had about 350,000 new jobs in positive
territory. so it's clearly in the sector that's most vulnerable to these restrictions and also to the winter weather so our expectation is that, you know, right now we're going through a weaker period in december, in january, probably still in february. i think things are going to be fairly sluggish, but then as we head into spring, we're expecting a very strong recovery on the back of coronavirus news, the stimulus, and the georgia runoff we have a strong consensus view on growth in 2021. we're at 6.5% for u.s. gdp growth, and today's growth doesn't change any of it. >> let's get to the implications of the democrats taking control of the senate because you mention it there as one of your reasons for the growth forecast. what are your expectations in
terms of new relief and aid to state and local municipalities you seem to expect that that is going to happen, jan >> we are expecting that, yes. so we think that on top of the $900 billion package that was passed recently, we'll get about $750 billion in additional relief, and that includes another round of payments of -- rebates or checks to the tune of $2,000 a person for lower and middle income earners in total including previous round we do think there will be aid for state and local governments to the tune of maybe $200 billion or so and also some further extensions of unemployment benefit payments. so it's another sizeable package in addition to a fairly sizen
sizen'tabsizen' sizen'table package. it takes it to $1.6 trillion, $1.7 trillion, and it will impact us in a couple of months. >> it's morgan here. shifting from stimulus to monetary, do you have anything on economic growth we did get comment this week from fed officials suggesting that we could potentially based on the data we see this year see the fed begin to taper maybe sooner than everyone has anticipated. where do you fall on that debate >> i think it's certainly something that's being debated and so far the fed has not really provided a whole lot of clarity. some have talked about it. some have talked about the end of 2021 for the tapering our expectation would be that it's ultimately going to take somewhat longer than that, sometime in 2022
and that's basically because while growth is strong, that doesn't necessarily translate into a rapid increase in inflation. right now it was at 4.1% they say they want to see substantial improvement on inflation and employment, and it seems that's going to take somewhat longer burke this is a fluid situation where they haven't provided, really, a lot of guidance at this point, and there are probably some pretty significant differences of view. what we, i think, do know is that they've set a very ambitious criteria for when the first hike in the funds rate is going to come. you're going to have to have full employment, 2% for pcm inflation, and confidence that you're set for a moderate overshoot. i think that's going to take quite a while longer our forecast there is the second half of 2024 so that's still a ways away.
these are two different things, and i think ultimately, the path of funds rate is probably the more important one for the economy. >> jan, on the vaccines, you wrote we cannot rule out a downside where you would have to readminister vaccines if they don't work against the new variants it sounds like a low probability call how low? >> it's very hard to put a number on that especially for somebody like me who's not a medical expert i mean coming up with probabilities, i think, is difficult. i do agree that the latest indications suggest that at least as far as these variants are concerned, the existing vaccines probably do work, but, of course, they could be mutations in the future.
the virus and the medical news has thrown us a lot of different curveballs and we could see more of them. i can't put a probability on it, but it's a downside risk that i think all of us as forecasters and investors and market participants should be aware of. >> right and yesterday you upped your guide on q1 stimulus i think you're at $750 billion are you assuming that's going to be the last batch? >> i think for -- you know, i think for covid relief, it would be my expectation that that's going to be mostly it. i mean under our forecast that the economy recovers quite strongly as we go through 2021, we do assume that there will be add employment insurance money for extra payments, you know, $300 per week. we think that's going to be
extended through the middle of the year and then gradually reduced through the end of the year so from that perspective, that's probably it for a while. however, we also think there will be additional fiscal legislation affecting the biden program or at least a more moderate version of the biden program, given the tight majority with the 50/50 senate but we think that's going to mean additional spending and also some tax increases, but probably not until maybe the middle of the year of q3. >> we, of course, will be watching all of that closely jan, thank you. >> thank you very much. >> jan hatzius keep your eye on bitcoin this morning as always we did go above 41k earlier ilday, currently at 46 stl a 4.6-plus gain. we're back in a moment
the street." getting a check on the stocks, the dow is down ever so slightly, down 19 points all the major averages on pace for gains for the first week of 2021, really putting a distant memory to the selloff we saw on monday the s&p on track for its best weekly gain in five weeks. meantime, though, can anything slow down the surge we have seen in bitcoin well, kate rooney, northward record-high this morning she's going to break that down for us hey, kate. >> hey, morgan bitcoin broke through with 38,000, then 39,000, and finally 41,000, all in about 24 hours.
it's more than doubled in the past month, and it's up about 40% for the first week of this year analysts tell me this week's drivers are some of the same factors that pushed bitcoin over 10,000 we talked about the flood of institutional investors who see this as a hedge against inflation and the weaker dollar, but there's also been a resurgence of the retail buyer take a look at google trends since december when bitcoin first cross 240ud, google's surges for bitcoin have skyrocketed. they credit it to fomo or what they call fear of missing out. you have the altcoins or smaller bitcoins their boom this week puts the entire crypto cap at above $1 trillion for the first time. with these new buyers all pouring in blockchain data from
chain analysis, it shows that fewer people are selling what they call a liquidly crunch with an imbalance between supply and demand for exchange of coins we had a bullish note out that said bitcoin could hit 146,000 long term as it competes with gold and the chaos in washington this week may have also been a tailwind some are looking to bitcoin as a digital save haven since it's not tied to a central government david, back to you. >> all right thank you. by the way, speak of high-flying stocks, we can't not look at tesla, can we? right now we're talking about the performance it's had this week, up 24% most people would be happy if they owned the stock for a year and it did that. elon musk has pointed out many times he's the wealthiest person in the world i want to get the right numbers there. remember all of those restricted
stock agreements he had where he was going to get stock if it hit certain levels you could largely imagine when it was awarded to him. so far surpassed that now, which makes him the wealthiest man i'm looking at an $827 billion market value number five in the country tesla up 24% this week tesla up 24% this week we'll be right back. tesla up 24% this week we'll be right back. that's the nature of humanity. ♪ it has encouraged other people to take the time for each other. ♪ ♪
welcome back a record two-day total of over 1,000 deaths as hospitals strain under unprecedented caseloads as the united states reported more than 4,000 ed manganos in a single day for the first time a new record joining us now with the latest from his city, san diego mayor todd floria in his first 100 days in office mayor gloria, thanks for being with us today. >> thanks for the opportunity. >> i do want to talk about -- i do want to start specifically with what you're seeing on the ground in san diego in terms of covid cases, when i see statistics like zero capacity in terms of current icu bed availability in the southern california region, i mean that's a very scary statistic right there. is that what you're experiencing in san diego >> it is as i talk to our hospital
administrators, they are taking extraordinary efforts to increase capacity opening up shuttered units, converting nonhospital spaces into hospital spaces the situation here is extremely urgent which is why i've been asking dagens repeatedly to do everything they can to follow the public health order as well as directing law enforcement to focus on egregious violators of the public health order. >> i have to ask, i mean, how did we get here in san diego and in southern california i mean, california was one of those first states sort of hit the hardest last march and during the spring, was there not enough time to prepare and to make sure there would be enough icu bed capacity, enough supplies, et cetera, given the fact we did anticipate from a national perspective a winter surge? >> well, our position today is not what it was back in the spring at the onset of covid-19. we have a number of mobile and other uses, resource as valuable to us which is greater capacity, but even with that capacity,
what we're seeing because of lax ad heerns to the public health order, holiday celebrations and the like an increase in cases and acute of those cases is great so hence the need to continue to ensure people that this is very real and the vaccines are here and are being distributed, but it is not at a rate that is sufficient to let our guard down, so i believe that some improvements have been plead over the spring but, you know, this situation is extremely dire and doing everything we can to tackle it >> mr. mayor, i wonder, are there people now perhaps dying who otherwise wouldn't because of the inability to take care of them >> i haven't heard that situation yet, but we are in a position where folks are having to make critical, you know, game day decisions, if you will, where, you know, folks who are being told that if there's no hope for this individual, you know, not to bring them to hospitals and we don't want to be in that position. san diego's position is a little better than our partners to the north in los angeles and places
in the central valley, but we are by no means where i'd like us to be which of course is back to a state of normalcy, quite far from it. >> just to follow on a question morgan had, many people -- california was pretty early and has been strict in terms of protocol san diego, warm weather, people can be outdoors. i don't quite understand why it's spread so widely in the state given those things >> well, you know, we could be a victim of our own success in the sense we did do all the right things in the spring and may have led itself to a false sense of security, again, part of what i've been trying to do in my first days as mayor to remind people this is active, this is serious and your decisions and actions have consequences. i also think there are unique factors here in the san diego area, you know, as bad as our situation is on our side of the border, just south of us with our partners in baja california are seeing far significantly higher rates of transmission and let's be honest the virus does
not recognize international boundaries and have to work better with our partners south of the border and have been doing that but we have unique challenges here in the san diego region that makes this virus a top level concern. >> mr. mayor, cnn's reporting in the past few minutes the biden administration plans to release all available doses instead of holding back stock for the second dose. does that seem well guided. >> i will take whatever doses they will give us. working with our partners at the county of san diego who is our lead public health agency in our area, we are doing what we can to do -- get this vaccine out to as many people as possible that includes training 50 of our firefighters to be able to be vaccinators. we're opening up and anticipate opening up public facilities, trusted known locations to community members to come and get the vaccine. but what we need is more vaccine. you know, to date we have received about 120,000 doleses,
51,000 have been administered to date that's less than 2% of our overall population we need more supply and the ability to actually execute it into the community >> just to dig into that a little more, i mean where has that been? you cited two very drastically divergent number there is in terms of supply versus what's actually made it into people's arms >> right, well, that 51,000 administered, 120,000 doses received but that's for a tier 1a population of over 600,000 dagens, right, so, again, i appreciate the efforts of the new administration and that gives me hope that this will get better in the near term future but some of those bottlenecks have been the lack of federal direction. you know, what we have are some guidance given the federal level filtered through the state government and brought down to the county level that's why you see mayors like myself and colleagues across the nation saying give us some of these dose, give us the ability to administer it allow us to use our public facility, places that the public
knows, trusts and is willing to come to to actually get this out into the neighborhood. as i hear from small business as cross san diego who are desperate to re-open, the path to re-opening is to ad heerns of the public health order as well as mass vaccination. >> mayor gloria, thank you for joining us today we appreciate it >> thank you for the opportunity. >> still to come, barry diller is going to join us on "squawk alley. the dow up 6 don't go away. the new lexus is. with a lower center of gravity, a more responsive suspension, and an aggressive wider stance. this is what we call going all in on the sport sedan. lease the 2021 is 300 for $359 a month for 39 months. experience amazing at your lexus dealer.
"squawk alley. two plainspoken founders join us at the end of a dramatic barry diller and tom siebold will talk what's the impact of washington turmoil on brand america, what's business' role in securing what we hope will be a new normal post pandemic and speaking of that, major indices slightly higher after a disappointing jobs report but not everyone is flat tesla is up another, my goodness, 5% but now it's higher than that. the market cap on tesla, deidre, now above -- you see it up 7.5%. the market cap is now above $800 billion valued higher than facebook i just want to remind everybody, elon musk tweeted that the