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@davidchou
David ( Jih Jiun ) Chou
Social Capital CEO Chamath Palihapitiya's case against stock buybacks, dividendsCNBC's "Halftime Report" is joined by Social Capital CEO Chamath Palihapitiya to discuss his latest deal, his view of the U.S. economy and markets. Social Capital CEO Chamath Palihapitiya on Wednesday doubled down on his comments that the government shouldn’t bail out billionaires or allow buybacks amid the Covid-19 pandemic. “Buybacks are the primary example of a growing strain of incompetence amongst CEOs and amongst boards,” Palihapitiya said on CNBC’s “Fast Money Halftime Report.” “And it’s where we need to start thinking about how the rules need to change.” Palihapitiya was defending his comments from two weeks ago, when he said poor-performing CEO’s deserve to be “wiped out” rather than bailed out from coronavirus-related economic issues. “I think why I was frustrated is that I just think that that kind of behavior makes no sense and instead of being punished, it has been rewarded,” Palihapitiya said Wednesday. “Since 2009, the 500 companies in the S&P 500, they bought back $7 trillion of stock and or issued dividends that turned out to be more than 90 cents of every dollar of profit that they made over the last 11-plus years. The federal government, as well as the Fed, between monetary and fiscal stimulus combined, have essentially transferred around $7 trillion now back to those said companies as well as companies slightly smaller than them,” he added. Palihapitiya has been critical of the United States’ economic reaction to the Covid-19 pandemic, saying that stimulus money should go directly to consumers and workers rather than businesses. The Federal Reserve has announced a slew of new moves aimed at getting trillions of dollars into businesses and governments, including its Main Street business lending program and market interventions, as part of an aggressive strategy to keep markets functioning and support the economy. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2JdMwO7 » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC #CNBC TV
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Father Jim Martin on the emotional impact of the coronavirus crisisThe coronavirus pandemic is causing an economic and humanitarian crisis that is being felt on an emotional level across our families and workplaces. Father Jim Martin, Jesuit priest, author and editor-at-large of America Magazine, joins "Squawk Box" by phone to discuss the mental and spiritual toll of coronavirus. Stocks jumped on Monday, rebounding from sharp losses in the previous week, as the number of new coronavirus cases in the U.S. appeared to slow down. The Dow Jones Industrial Average traded 1,200 points higher, or more than 5%. The S&P 500 gained 5.5% while the Nasdaq Composite advanced 5.4%. American Express gained more than 10% to lead the Dow higher. Dow Inc, Raytheon Technologies and JPMorgan Chase rose more than 7% each. The S&P 500 was led by the industrials and financials sectors, both of which traded more than 5% higher. Retail stocks such as Nordstrom, Kohl’s and Macy’s also rose sharply. Investors were encouraged by data that shows a slowing in the number of daily U.S. coronavirus cases, although it is still early to determine a lasting trend. There were about 30 thousand new cases on Thursday, 32.1 thousand cases on Friday, 33.26 thousand cases on Saturday, and then a slowing to just 28.2 thousand new cases Sunday, according to the latest data from Johns Hopkins. For more coronavirus live updates: https://www.cnbc.com/2020/04/06/coronavirus-live-updates.html For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2JdMwO7 » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC #CNBC TV
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Airlines slash flights to the New York City areaThe "Squawk Box" crew talk about several of the morning's top stories. American Airlines on Sunday slashed its flights to the New York City area by more than 90%, the latest carrier to drastically reduce service to the region, now a coronavirus hot spot. “As coronavirus (COVID-19) cases in New York City and the surrounding region continues to increase, along with Centers for Disease Control and Prevention guidelines for travel to the area, the demand for flights to the New York area is rapidly evaporating,” David Seymour, American’s senior vice president of operations, wrote to employees in a memo. New York-area airports are normally among the busiest in the country and the area has some of the most congested airspace, but coronavirus has prompted several carriers to cut service to bare bones, leaving the region more isolated. The cuts in the tri-state region are deeper in some cases than those carriers are making throughout their networks, as demand for air travel craters because of the disease. More than 120,000 people have tested positive for the disease in New York state, more than half of those in New York City, Gov. Andrew Cuomo said Sunday. The Centers for Disease Control and Prevention just over a week ago urged residents of New York, New Jersey and Connecticut to refrain from nonessential domestic travel for 14 days. Fort Worth, Texas-based American Airlines said it will operate eight departures from New York’s LaGuardia Airport, down from about 170 in April 2019. It will also fly three daily flights from John F. Kennedy International Airport, down from around 80 midweek peak departures in the same month last year. And the airline will operate one daily flight to its Charlotte hub and another to its home at Dallas-Fort Worth from Newark Liberty International Airport. For more coronavirus live updates: https://www.cnbc.com/2020/04/06/coronavirus-live-updates.html For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2JdMwO7 » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC #CNBC TV
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Watch CNBC's full interview with Treasury Secretary Steven Mnuchin on coronavirus relief billTreasury Secretary Steven Mnuchin joins CNBC's "Squawk on the Street" by phone to discuss the $2 trillion stimulus package the Senate passed Wednesday night. The bill is intended to blunt economic damage from the spread of the coronavirus. The House is expected to vote on the legislation Friday. The unprecedented stimulus bill approved unanimously by the Senate has an estimated $2 trillion price tag that backers hope will lessen the coronavirus pandemic’s human and economic toll. The chamber passed the legislation Wednesday night as workers face widespread layoffs, hospitals and states starve for resources and businesses small and large worry about their survival. The House aims to pass it by Friday. The bill, designed to offer relief to individuals, the health-care system and even an entire corporate sector ravaged by the outbreak, would: Give one-time direct payments of up to $1,200 for individuals and $2,400 for couples, with $500 added for every child, based on 2019 tax returns for those who filed them and 2018 information if they have not. The benefit would start to phase out above $75,000 in income for individuals and $150,000 for couples, going away completely at the $99,000 and $198,000 thresholds, respectively. Boost unemployment insurance, adding $600 per week for up to four months on top of what beneficiaries normally receive from states. It expands eligibility to self-employed people and independent contractors. Create a $500 billion pool of taxpayer money to make loans, loan guarantees or investments to or in businesses, states and municipalities damaged by the crisis. Give $25 billion in grants to airlines and $4 billion to cargo carriers to be used exclusively to pay employee wages, salaries and benefits, and set aside another $25 billion and $4 billion, respectively, for loans and loan guarantees. Provide $17 billion in loans and loan guarantees for unspecified “businesses critical to maintaining national security.” Put $117 billion into hospitals and veterans’ health care. Provide $16 billion for the strategic national stockpile of pharmaceutical and medical supplies. Give $350 billion in loans for small businesses to cover salary, wages and benefits, worth 250% of an employer’s monthly payroll, with a maximum loan of $10 million. Include a tax credit for retaining employees, worth up to 50% of wages paid during the crisis, for businesses forced to suspend operations or that have seen gross receipts fall by 50% from the previous year. Require group health plans and insurance providers to cover preventive services related to coronavirus without cost sharing. Delay payroll tax for employers, requiring half of the deferred tax to be paid by the end of 2021 and the other half by the end of 2022. Ban companies that take government loans from buying back stock until a year after the loan is paid back. Bar employees or executives who made at least $425,000 last year from getting a raise. Stop President Donald Trump and his family members’ businesses from receiving emergency taxpayer relief. The provision also applies to Vice President Mike Pence, heads of executive departments, members of Congress and their family members. Suspend federal student loan payments through Sept. 30 with no accrual of interest on those loans. For more coronavirus live updates: https://www.cnbc.com/2020/03/25/coronavirus-latest-updates.html For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://www.cnbc.com/pro/?__source=youtube%7CDEK » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC #CNBC TV
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Watch CNBC's full interview with House speaker Nancy Pelosi on coronavirus stimulus billHouse Speaker Nancy Pelosi joins CNBC's "Squawk on the Street" by phone to discuss the bipartisan stimulus package to help counteract the economic downturn as a result of the coronavirus outbreak. Democrats and Republicans are closing in on a massive stimulus package to combat the economic impact of the coronavirus. House Speaker Nancy Pelosi, D-Calif., told CNBC on Tuesday morning that there is “real optimism” Congress can clinch a pact within a few hours. Senate Majority Leader Mitch McConnell, R-Ky., later said the bill is at the “five-yard line.” Treasury Secretary Steven Mnuchin arrived at Capitol Hill just after 9 a.m. Tuesday for a new round of negotiations with Senate Minority Leader Chuck Schumer. Just before 11:00 a.m., Mnuchin, Schumer and Rep. Mark Meadows, Trump’s incoming chief of staff, went into Schumer’s office as part of the negotiations, according to a Democratic aide. After the meeting, Schumer said on the Senate floor that negotiators were on the “two-yard line.” Issues can be resolved within hours, he added. He listed a number of changes he said Democrats have secured, including obtaining “unemployment insurance on steroids,” which includes four months of full salary for idled workers. He said the provision would also help businesses, by keeping employees on the payroll during the crisis, so they can reassemble once it subsides. Schumer has said that the Democrats’ “two main issues: workers first and a ‘Marshall Plan’ for hospitals are very strongly in the bill.” Democrats appear on track to secure $25 billion more for hospitals, staff and equipment, a Democratic aide told CNBC, cautioning that terms may still change. Still, Schumer implied that negotiations continue around the $500 billion fund that Republicans have proposed to support distressed companies. Democrats have argued the fund gives the Treasury too much discretion. “We’ve been fighting very hard that any bailout fund − money to industries that have trouble − have real oversight and transparency,” Schumer said. “We’ve been pushing hard that any contract the federal government makes with the company to give it loans, that we know of that contract in a very short period of time so that we can examine it ” he said. “Because we all know there was a load of dissatisfaction with TARP,” he added. Democrats are pushing for an inspector general and congressional oversight board to oversee the fund. CNBC earlier reported that Mnuchin had agreed to more fund oversight. Pelosi said Tuesday she was “very happy” it appeared the Senate had taken some of her suggestions on fund oversight. Schumer also said Democrats were making “very good progress” in their efforts to add “incentive or mandate” for companies receiving federal loans or grants to keep their employees. According to NBC News, Senate Majority Whip John Thune, R-S.D., said the bill would include, among other items: Immediate $2,400 checks for married couples and $500 per child $350 billion for small businesses to set aside for payroll to keep people working Major U.S. stock indexes climbed more than 5% on Tuesday as optimism about a deal rose. For more coronavirus live updates: https://www.cnbc.com/2020/03/19/coronavirus-live-updates.html For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://www.cnbc.com/pro/?__source=youtube » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC #CNBC #CNBC TV
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