Income we will be joined by mohammad al aryan and minor the Dow Jones Industrial average right now is off by 1 . A loss of 280. The s p down by three quarts of one ten year note yield it is up a slight amount right now. But it was as low as 1. 02. We are keeping an eye on all of that steve as we try to make sense of what happened today and the 50 basis point cut, the largest since 08. You say it was meant to be a surprised but you werent . I dont think if you were paying you should be surprised lets look at the ill at that of the tape friday, unscheduled announcement by the chairman where he said he would use all the available tools and the fed would act as appropriate. That was one yesterday, comments from perota, from la guardia are the ecb, comments from the imf and the world bank along the same lines. We learned about the g7 meeting. This is exactly what you would expect if you went back and look at how these things work, scott there was a complaint earlier this morning in one of the headlines i red that a market sells off because g7 meeting is not enough, no policy action two and a half hours later you got the policy action. The question, was it the right move or do you think did the fed panic. For me, it probably panicked a little bit i dont know what a lower rate cut is really going to do. If you sort of look at whats going on and why markets are going down, it is because people are worried about this virus, right . So if you sort of think air travel is peep arent traveling as much, people are cancelling events. The fact that the fed lowers the rate doesnt mean you are going reschedule those so at the end of the day, what you are saying is, what the fed is saying is we are willing to make sure there is no issues and we will make the cost of capital cheaper. That i think makes sense but at the end of the day you have got to have people using that capital and that i think is going to happen 30 days, 60 days, 90 days from now when people are less worried about what is happening with the virus. The chair spoke to that, he said we dont have all the answers, this al avoid a it tooening of financial conditions it will boost the consumer everything that mark lazry said is correct i agree with everything he said i will take it a step further. I dont think it will boost business confidence. Thats blip on your screen every day. What we are looking at is the market already giving itself a rate cut look at what treasuries did before the fed opened of the mouth before they said they would act and what it did ar after they did react you could refinance a 30 year mortgage that was 4 a year ago. You can now do a 15 year mortgage at under 3 why financial conditions have to get easier makes no sense in terms of combatting what is sure to be weeks and weeks of negative headlines. What is the downside. You cannot give it back. You are never raising rates in an environment like this in the foreseeable future unless there is a massive fight with inflation in which case we have bigger worries. If you know you cant put the jeepy back in the bottle, and we all agree financial conditions are easy right now then what we are seeing this is to make people feel better fine, then do it the right way dont drop it out at 10 00 a. M. When no one is paying attention. If you want it to have a school logical impact make it meaningful, with some bombast. This was ill thought out i dont know why they felt the need to to it right this minute. We are not in bad shape coming into the day and now people are saying wait a minute, they did it . What is coming sit getting worse . What do they know about the jobs report on friday. All good points thus far. Mohammad, al ariane, what is your reaction to what the fed did, 50 point basis move mistake on justified. Had they not done anything the market would have been disappointed the market has already priced not just this cut but as noted earlier even more. But doing it doesnt actually help because mazz mark lazry pointed out the damage on ground is not something that the fed can help we have two problems here. One is that Market Expectations are running way ahead of reality in terms of what policy makers can and will do. And the second one is that the fed has massive communication problem. It cant on the one hand say that you need an emergency cut and signal that this is an emergency situation and on the other hand say the economy is fine and this is an insurance cut. So this is a nowin situation for policy makers. What you really need is not the market forcing their hand. What you really need is medical progress in, a, containing the spread of the virus, and, b, increasing immunity and recovery rate that is what is going to make everything consistent, not the fed, not the g7. Whats the harm, though, to steves point, mohammad . I get the point that josh has made, why shoot bullets that you can never put back into the chamber . But why not do Something Like they just did . What is the harm three thing one is you are getting closer to the zero bound therefore you are taking away policy flexibility and you do not want to go negative. That are really break thing. Two is you want to keep Interest Rateswhen you see market malfunction, when you see parts of the market no longer providing proper liquidity and keep an eye on the high yield market thats the area of greatest risk. And three, credibility forward policy guidance by the fed is a very important policy tool so having the market set off during every press conference is not a good thing. Mohammad, we appreciate your time very much we know you have got run i will let you go. We appreciate hearing your voice today. Rick reader you made some point. There is a lot of leverage around the globe the fed has to keep rates low. Structurally it is part of their policy they cant get off of that was this the right move or not by the way, i think all the commentary has been spot on. Its not just a positive that when you cut rates by the way, rates were already low. And i would argue they were low enough there are other issues i think what happened today they almost forced into it by the markets and it would have created a problem if they didnt do it. That being said, Small Business lending programs putting in initial tiffs in place for transportation we have got to get more out of the fiscal more out of the administration would going the hear from the ecb. I dont believe in negative Interest Rates, i dont think there is any velocity to it, particularly in an aging demographic. You are you are the hadding the Pension System and the insurance system, which are your main investors. I hope whenever the ecb acts Small Business benefits. They are hurt when there are supply chain issues. We need to see the administration and we need to see real policy thats fiscally driven. Interesting the markets did the light thing. Scott minor, do you believe that are the markets taking this move by the fed the right way i think the one thing thats disturbing scott is we are all becoming too preoccupied on the micro. That is the fed had to cut rates. Should they have cut them today . At the next meeting . At the ends of the day all of this stuff is irrelevant the bottom line is that Monetary Policy cant really solve this problem, as everyone has pointed out. And we are going back to zero. Lets just lets just acknowledge that rates are going to move a lot lower. And you know, it is time for the policy makers to be sitting down and designing policies like talc and tarp where the government stands ready to provide funding to a lot of companies which are going to find themselves cash flow constrained over the coming months. Scott, i want to chime in on that. Thats a comment. If you ask me what the absence, what the missing thing is yesterday eamon javers asked the president if he thought we needed a Stimulus Program the president said no. Are the now they are talking in congress about some 8 billion program which i think mark just kind of laughed. Thats less than we do in a hurricane. The tarp, as scott just pointed out, was a 700 billion program, and arguably was not necessarily even enough. So thats the missing element right now. The fed, my opinion, did what it had to do whether it was forced to do it or not. Maybe the timing was off it kind of could have waited if we were a thousand points down in the dow now we might say the fed should have been out the there lets build hospitals we dont have a situation with bank. Bailing out Small Businesses. How do you administer that . Administering is difficult. We do it in floods and hurricanes in the aftermath. Right. By policy objective would be those businesses that are good businesses that go out of business because of the temporary disruptions from the coronavirus. Hotels, travel . Hotel, travel, Small Businesses, especially as i think mohammad was talking about and scott as well. Those are the key things that you might do thats what fema does thats what they do. They say you know what, you were adversely affected by this you have a good business, we are going to put you back in business. The president has a tight line to tow here, right . They have been maintaining that the economy is in such great fundamental shape that they are not ready to move of that line, it seems, to where you know right now you need what those that could be considered a drastic for dramatic measure. President s political constraints are the president s political constraints. Not mine i am just asking let me make a comment after today. Everybody who is watching this show, do you feel better about what happened . And now you are ready to go out . Like, am i ready to get on a plane . Am i ready to go to a conference am i has this made me feel better no nobody. Nobody. And thats what the problem is you are not deal with the iing e issue. The issue here is how do you make people feel better about going out and doing thing . The administration is missing that. Do you solve that problem by what Scott Minered said is a massive fiscal stimulus of some kind. What you have got do psychologically to get people to get out is president clinton is, look, if you are 40 and under, this isnt going to really affect you or if you are 50 and under, this doesnt really affect you. It affects people glad you moved it up from 40 i did that for you. They are doing the opposite they are malaysia muzzling the scientists they are not. They think it is a p. R. Challenge. They are not muzzling the scientists they are not. Clearing statements through the white house. Dr. Fauci has been out a million times. Lets not go there. Now is the moment to get people out look, thing like this happen. Right. There is going to be a period of quarantining, sequestering, whatever you want to call it, cocooning, people are going to reduce it. There are thing the administration i think could say that would make people feel more comfortable but getting them out and doing things is not necessarily anything they want to do right now. We had a 5 move in the market yesterday did that make you feel like we were in the process of putting in a bottom. Is this what it feels like you have volatile moves approximate now you have the fed injection into the cocktail bowel . I think, you know, look we were getting deeply i dont have sold we knew that somewhere in this 3,000 zip code on the s p we should find a temporary support level. But you know, at this stage of the game i would say we have more Downside Risk and you know, the expression dead cat bounce. Thats what i think it feels like yeah. I dont know, maybe you had a dead cat bounce in yields. Rick reader, how low are yields going to go do you think you could have another 25 or 50 basis points to go certainly on the back end of the curve there is more room here. If the risk markets come unglued. You could certainly press down press down rates and the fed would get to zero pretty quickly the way you manage your portfolio you have got to keep a moderate risk and be thoughtful about the balanced portfolio rates still work in a balanced portfolio. They can still move lower. My question is how much risk do you take until you get the fiscal niche thifs that are diversified in enough scale to get the benefits. Jim manages peoples portfolios what do you say. I didnt think yesterday was the start of a v shaped recovery it was highly likely we were going to see a double dip, retest the lows. Thats what i am tell people frankly yesterday and this morning i trimmed further. I was imfromming earlier this year i am mott going to say i am all cash thats preposterous. But i am not doing right now buying of any size i nibbled of the at United Technologies and qualcomm because they have been on my watch list too long. Let the double dip happen, the test of the lows happen. That is 5 to 90 of the time what happens whether this is a correction or something worse you dont go in a v shape. Thats my criticism. Why dont you wait for the double dip which is highly likely to happen and hit it when people are throwing in the towel. Doing it today after a 5 rise yesterday is ill timed. I think the fed wants to be out of the limelight they want to shift the focus back to administration and congress saying we are done, we are not going to be blamed about what might happen over the next three to six monday. We are going to take ourselves out of limelight as for Portfolio Management i hear what jim is saying, but if there are companies you want to add to, if your few is over the next three or five years they could be stronger, i think it is a great time to add to those types of names we are doing that. We are doing it that youfully, but the High Conviction names we are adding to it in our portfolio. Scott minored, why doesnt dont fight the fed work now i get they cant get people to go to the movie or get on a plane . They couldnt do that in 08 it comes down to the same thing, no matter what the fed does, it is dont fight the fed why is this timing go to be different . It is really interesting here because the whole formula for the market has been wait for the monetary authorities to come in and bail us out. We are going to make new highs this is different because this is the equivalent of a katrinatype disaster, which is national and it doesnt matter how low you make Interest Rates. If you are living with a flood there is not much you are going to be able to do you know, the Interest Rates are not going to get people out of their houses and doing things. And it is more than a confidence game you know, because panic is setting in this thing is real and while people will probably be overreacting in the near term, you know, i agree with marks comments, the majority of people are not going to die from this thing, but you know, why why take the risk . And thats the view that people are taking so, you know, it doesnt matter. We could drop helicopter money on people, they are not going to go out and spend it when they are afraid her going to get the coronavirus. How does the fed contend with this steve . These are all legitimate concerns and you are hearing almost universally from people, minored or lazry and people who are running billions and billions of collars saying it is not going to do anything that it smacks of panic more than anything else. I think you feel your way every crisis is different. I think the fed may not be done yet either in terms of rate cuts or in terms of the administrative reg la story supervisory tools that it could bring to bear against this crisis i think ultimately you stick to your knitting. I mean, to jims comment, i heard you know, it sounds lying a great plan i dont want the central bank timing the market on what a double dip could potentially be. I will finish the point, jim, and then give you a chance to respond. You stick to your knitting you look at what you perceive to be the neutral rate. You find that given what has happened to the rate structure, the term structure, that you have essentially a series of inversions throughout the structure look at what happened to stocks, Financial Issues has tightened the neutral raid has dropped, i dropped my rate to equal that or to be below that you can have all of this fancy stuff about will it bring people out to the movie theaters or to the converts no, it wont but it will bring down the neutral rate, the feds rate closer to where the neutral rate is. Positive thing on top of that the first is that most americans, maybe not necessarily the viewership of this channel, we all have the benefit of having money to invest most mourns, 20 of their Monthly Budget goes to things like buying gasoline clearly the price of gas plunging is not a negative for those households the second thing, housing stocks are ripping. Higher. Higher despite the fact. Thats the kind of effect it can have. Despite the fact that the dow is to the dog del. I am not saying it is going to last longer than a day or two. But it issed about for affo affordab affordabaffor affordabili affordability. We have the highest cohort in this country of people age 29. These the biggest age group in this country right now those are people it affects and it is a net positive for them even if they are worried about recession and Everything Else. It is not all horrible that this is happening i think mop terry policy can play a role but i agree with what mark and scott said we need a big plan how we are going to get testing done all over the country and how we are going to give people the right advice, do you go to the hospital go to this doctor . Call this had theline . None of that seals to be happening to that extent and i think that is weighing on sentiment as much as to whether or not the fed is doing. I think it is playing a role. I dont disagree with you in in shape or form. The key now, rick, is this just the beginning, just the beginning of a globalized evident by Central Banks to get involved in any way that they have go back to draghi, years ago, we will do whatever it takes. You are going to get a collective message like that, arent you. You are going to get more o this coming down the pike. From the bank of england, from the ecb. More of this coming down theics pike risque sets, equities, credit rk markets. When you get to see thoughtful proactive fiscal initiatives you manage money for people. You manage a lot of pun who people you have got to take opportunities. We talked about it on your show last week. Home builders that business is in structurally great shape. You take risks in those places, you have got to be more careful in otherwise predicting where this virus goes, how deep it goes, how much contagion across the world is hard you have got to be proactive around where you are taking the risk. Scott minored, if you know that rick reader is going to be right and there is going to be this global effort at what poept do you get positive on the market and think that okay we overdid it we were i dont have sold and it is going to correct itself and at the end of all of this the economy is going to bounce back and so are stocks . I think this is not something you want to get ahead of if we go back to the financial crisis, even after the bailouts were announced, which in my mind obviously were going to work, stocks went on and made new lows because at that point it is just become Investor Confidence so i think it would be premature to do anything in a significant way to ramp up risk until one of two things either until we get it priced correctly and you know, mohammad mentioned high yield bonds we are nowhere near the spreads we were on high yield bonds back in 2015 in 16 when Energy Prices were under pressure so we are not really discounting anything major there and you know, equity valuations continue to remain relatively high and you know, i think trying to use an earnings model at this stage is a little bit difficult because nothing rate cuts arent going to salvage future earnings right now we need to find out where the bottom is here until we have something that firmly tells us where it is, i think we should just wait. This notion of high yield, there has been massive outflows, and spreads had blown out a bit, they have come back in and maybe some of this activity by the fed today helps relieve a little bit of that. Are you watching that with any sort of vigor, what it means we are watching it because the more outflows there are, the more people have to sell, the more they have to sell lowers prices so we have an opportunity to come in in a number of situations we have been looking at, hopefully at lower levels. Right . So you know i would love to tell people dont panic but i would like you to because if you sell. You will buy it. I will be able to buy at the end of the day, what you really want is if you think something is cheap, start big it it is a little bit of what you said i think it is cheap, we will start buying as you have more and more outflows it forces people to sell things they dont want to sell let me ask you another way. Putting your own sort of opportunity aside. Right. Do you expect more outflows the likes that we have seen in high yield i do. I do i think because when people are nervous and they dont understand something, which is whats going on today, right, the better part of valor at times is just to wait. I think people will end up saying when i look at everybody who is younger and i keep asking are you taking advantage of this . They are like, i have no idea. I dont know what to do, so i am going to wait. People who have been doing it for a long time want to take advantage of that. Everybody who 29, the age limit you talked about, you have a new group of investors out there, i think they are going to wait until they figure out when things are safer their app is currently out of commission. Robinhood the last couple of days. What scott was saying it set me off on a chain of thinking down the road very much you think about the way Economic Data troughs, what you would be looking for here is infection data peaking yes. If you think about what happened with china it took them six or eight weeks or so to get a handle on this do the math. We cant quarantine everybody. Double that. Lets say it takes us 12 weeks or the better part of a quarter. The thing i would be looking for, scott, would be when the companies have visibility. We talked about this yesterday. Lets not go there again. The idea that finally somebody can say we believe we have seen the worst of it and we start to think that maybe we are starting to see the bottom and it is going to start coming back thats the kind of signal of a bottom that i think scott may be talking about if you bring along the fed policy along with the fiscal policy, not a tarp, but i guess in this case using the flu metaphor we need a blanket. Scott minored do you want to respond or react to that i think steve is right. I think he picked a good word, visibility until we have some visibility here of a bottom, whether thats a bottom in earnings or a bottom in terms of the crisis or a peaking in the contagion in the United States and around the world, i think it would be premature to take on a lot of risque sets. And risk assets i agree with rick, the target of 25 basis points and the long bond at 1 . Rick reader, 25 basis points coming on the ten year i thought it was interesting today in the comments made by the fed chair maybe you dont hear it all that often and frankly maybe policy hasnt been made like this all that often. He admitted we havent seen anything in an actual data point yet. It is the expectation. It is the preemptive nature of what they did. Normally economists are you know, they need to see the data, the whites of their eyes, right . They need to see the numbers before they react to it. He made it clear, this is not like that. I completely agree. I think the fed has done a great job. I think up to this point they have really done a good job. I think they were forced into doing. I think the markets required them to to what they did today and i think from here you have got to be really thoughtful about how you use your remaining tools. Liquidity is a big tool. I think they should utilize that when you start firing the bullets you have got to be careful if you are wrong internal Interest Rates, you have a limited set of liquidity. You have to be really careful about that people think cut rates and there is no downside to that thats not true particularly when you reach the zero bown i think the fed has done a good job. I think now we need to hear from fiscal and we have got to hear the economy is going to be better and you have a big set of bazookas alongside of you. He j, thank you for your insights on what is a business audio day for us and all of our viewers. The ten year goes to 25 basis. Can you underscore that headline one of the leaders of the biggest bond shops in the country put in a 25 basis point handle on the ten year. The implications for everything from utility stocks, tech sector buybacks, bank earnings. Equity premium, what about the equity premium the relative value of stocks versus bonds. Go down if thats the reality and people start to believe that it could become self fulfilling to some extent and opinions have to change about Asset Allocation if in fact you are managing toward that potentialality being what you think is going to happen. The risk is probably closer to minored at this point, is it not, than the other way . Shannon, would you say that. Yes, you think we are i think it is definitely asymmetric and much more likely to go down. If you look at what is happening with rates josh talked about the refi market it is incredible what we have seen in bonds. And i think as a bond manager, it is going to continue to be difficult to diversify your portfolio knowing that if you buy bonds today in three to six months you could what does that mean for the multiple of the stock market what does it mean for the multiple of the stock market if you are thinking about it from a discount perspective. 22 times will be the new. 19 at 1. 6, what would you be willing to do with. 25 right some number much higher than that. To your point about Asset Allocation how does that change your longer term expectations for Capital Market assumptions with the next three years at rates at those levels. Heres the problem. You have you have like lets say 30 trillion of Investor Capital in retirement accounts and the vast majorities of those investors are doing some version of 70 30, 60 40. What are you getting out of the 30, 40 portion of the portfolio unless you are willing to compete and take more risk on duration or credit quality, argueclibly you would not be if you are looking at the economy. Which you were willing to to five years ago you cant do that now. Slowing [ overlapping speakers ] i dont want you to talk over each other want them to understand. To put an asterisk on that. What if you go of the all of that and dont get the recession . 25 on the ten year, if i was coming from mars and you told me that, i would say the u. S. Economy is in a recession. We are growing of theat 1. 2 . How does that not put us in something in a sounds like a recession. Scott minored is well educated but the trend is the friend. As i hear him i think about jammy diamond in september of 2018 the ten year is at 3. 75 and he says it is going to 4. 50 he is an educated and experienced man as well. I want to throw caution out there. At moments like this, the talk can get a little extreme. Let me stop you you tell me why the yield on the ten year note is not going to go near supply shock. Thats the only thing that reverses it substantially higher i dont want to get too over our skis because all of us come to the edge of going viralol gists. You said the trend is your friend the trend on the ten year especially today with the feds surprise move aint up aint up it is at 1703. I am not saying it is but the trend was up in september of 2018 when mr. Diamond who is no dummy made that call. And mr. Minored is no dummy. I am saying at moments like this it is logical to get on the trend and ride it down i am not saying todays we are turning. Im saying lets be careful. Recognize when there is a trend like this it doesnt mean you are going to a final conclusion. The trend is 40 years in the making i am a dummy i look at four decades of rates being ratcheted down over that period of time. I dont want the make the case too strongly. I am just saying there is an alternative viewpoint. Lets take a quick break when we come back we will have more ahead with mark lazry and the gain lets check the s p sectors. A volatile session the ten year is at 104 the stocks have been up and down up a lot and down a lot. Right now the dow is one 415 after the fed cuts rates by 50 basis points we are back on the half in must two minutes. When it comes to your business internet, which is more important . Okay, i wish i didnt have to choose. Like the more i think about it, the more i want to jump to each room. What if i said you can have it all . Comcast business gives you connectivity that goes beyond. Thats what we want thats speed, reliability, and security, all from one provider. Touchdown comcast business goes beyond with the extraordinary speed, reliability and security your business needs. Call today. Comcast business. Beyond fast. Welcome back, everyone im sue herera heres your cnbc news update at this hour. The head of the World Health Organization saying it is still too early to make a decision on the Tokyo Olympics in light of the coronavirus outbreak this during a conversation with the president of the International Olympic committee. The olympics have only been canceled three times in history, all during wartime poll workers taking precautions against coronavirus in Northern California on this super tuesday. Sacramento county polling places are stocked with cleaning wipes, gloves, and hand sanitizers. A german cruiseship with 1200 passengers quarantined at aport in norway while two passengers wait for coronavirus test results the crew saying those passengers had been in contact with someone who then tested positive. Tornadoes striking across tennessee killing at least now 22 people and demolishing dozens of buildings in nashville. More than 44,000 customers are without electricity. Schools in the city are closed today. And neighboring Wilson County closing schools for the rest of the week the president just announcing he will travel to tennessee on friday to assess the damage there. We will keep you posted on that story and much more, scott back to you. Appreciate it sue thats sue herera with our headlines for us. I have a couple of things for you. You have said on this show numerous times the business you do in china, direct lending and otherwise. Can you tell us how thats been impacted by all of this . I would imagine it has had to have been dramatic. Yeah, i would tell you at our office in hong kong nobody is coming in to work. Everybody is working at home schools have been closed there is no travel so, you know, until that changes, you cant get back to normal so you know, thats why my point, irrespective of what happens with rate cuts you can cut rates as much as you want, people arent going to come into the office they all want to work at home because everybody is worried about dying. When you are worried about dying you are not focused on anything else at least for us, things slowed down a lot so thats the bad news the good news is the need for capital is greater. That was my followup yeah yeah. The need for capital is greater. Now you can actually dictate more terms and one of the things we are doing so i talked about this a little bit earlier, at the end of the day, everybody who works for us is sort of 35 and younger or 40 and younger, so they are not as worried but you take some precautions. But the fact that our guys are willing to travel a little bit, you can end up if you are willing today to be out there, you are going to end up doing exceptionally well. We were talking during the break. I think it is worthwhile even though it may seem obvious to some, you said a sign the bottom could be when big business says okay employees, it is okay to travel again yeah, because at that right now every company is trying to be conservative and saying you dont have to travel. It is a little bit of what scott said earlier, where is this bottom, and josh, when you talked about it. So the bottom is this visibility that visibility will be when companies are saying to their employees, it is fine. And whether thats i dont think it is a week away. I dont think it is a month away whether thats three or six monday away thats when you are going to see this. Lets talk about the other hat that you wear. As the owner of the milwaukee bucks. You sit on the board of governor force the nba. Yesterday the league released a statement. I will quote, the health and safety of our employees, teams, players and fans is paramount. We are coordinating with our teams and consulting with the rdc and Infectious Disease specialists on the coronavirus and continue to monitor the situation closely. It is said, they say, no fist bumps or fist bumps over high fives, fans avoid taking items such as balls, pens or jerseys to autographs. On that note, tell me how you are thinking about this. As the owner of the franchise, with thousands of fans coming into your building several times a week i think it is an issue. You know, you i think right now you hope that people who are coming in i think anybody who remotely doesnt feel well, you hope they are not coming in. You know, i think what you are going to see at these sporting events is i think you will see a little bit less physical touching among fans. But i think, you know, events are going to dictate whats going to happen. If all of a sudden you start seeing fewer and fewer people and there is more and more people getting circumstances i think you a getting sick i th you are forced into a situation saying to people look we will have the games but you are not going to be able to have fans in had. Events more limited in scope or even canceled those are the wore they issued could you envision a scenario in which some of your games would be canceled . I dont think the games will be canceled. What you will do fewer people will be coming to those games or you may not have individuals who are there but i think you will still end up having the games. Do you think u. S. Athletes are going the travel to tokyo for the olympics i think it is still a bit early. Problem is it is three months away. Everyone is waiting until the last minute to decide. Thats what you have got to do if more and more people are getting sick people are not going the want to do if you have less ander on the downside. Paradoxically we are going to test more people which is going to lead to more, quote, unquote, confirmed cases. People are going to take that as a negative but the lack of testing doesnt suggest there are less cases jwould you say we dont know about them you are right i dont know if people take it as a negative. You have more people who are sick, from the flu if you have. 01 of people diing, here, you have. 05 and thats five times now is there a real risk at this point nobody knows what the revving is would you be willing to play basketball games with nobody in the stands would i i will definitely be there i will be there. Could you envision a scenario if it gets to that i think if the fbi determines that, it could happen. I hope we are a long ways away from that. That would mean sort of the forget basketball. You have got baseball. You have got the Season Opener i think is in about a month for everybody. Thats 50,000 people basketball is 15 to 20,000 people if you are going to do it to basketball i basketball, you are going to be doing it throughout, with all of the sporting events. I dont know i hope we dont get there. Do you own the arena as well, new building. Yes, we do. Concerts, not the mention the Political Convention the democrats are holding in the summer. Yeah, yeah. How are you beginning to think of all that . I think it is a little bit too early. I think right now people are making decisions at least for concerts, and for games that it is fine, i am willing to take that risk because i dont think i havent really seen a lot of young people getting sick if you find that you start having more and more people, and it is happening because people went to arenas or they went to consertsz, i think you will have less people going and things will get canceled. Are you advising your players even though they are young and in as good physical shape as you can possibly be, are you advi advising them to do anything different personally. All we are doing it sound hokey, i apologize but that you are constantly sort of, with aing your hands trying not to touch your face. But try to be more focused on what you are who you are touching, what you are touching to make sure that you are trying not get sick. On a regular, quote, unquote, day, we probably would have got tony super tuesday earlier than 43 40 in how are you thinking about today . What may happen. You are a supporter now of joe biden. You had been supporting Kamala Harris and now biden, why i think joe i have always liked joe. I think hopefully when i sort of look, i agree with his views and what he wants to do for the economy more than i do with Bernie Sanders or Elizabeth Warren just as simple as that . Yeah. Do you think South Carolina was obviously big i dont know need to overstate it it was big but what do you think is going to happen today. I think if you had super thursday it would have been better for him because he could have used more momentum. I think it is been great i think the fact that Amy Klobuchar and mayor pete dropped out and that congressman beto came in and are supporting him, i think thats going to be very he helpful. It is helpful for him, the question now is if it is a twoperson race, which it didnt because you have still got Elizabeth Warren in there, and mayor bloomberg in there if it is biden and if it ends up being Bernie Sanders, then i think people will be able to make sort of a choice. Right now, you dont have that but i hope biden ends up doing well enough that things will go pretty well. I think he is going to win the south. And i think hold his own against sanders in texas and california. Let me sergeant your own economic views and market views wont mesh with a sanders or a warren but that means you would have a choice between a biden and a bloomberg. Why biden over bloomberg and did the mayor reach out to you and ask for your support i have been supporting senator i mean Vice President biden for quite some time. I think right now when i look at whats going on, i think hes got the best shot of beating trump. And at the end of the day, thats sort of what i think most democrats are focused on. If thing get messy, so to speak at the convention in your building. Yep. How do you think it is all going the play out do you think we are going to have a brokered convention. I think you could. And some ugliness. I think you could when you have a brokered Convention Really what that means is a number of people are going to get upset whoever is not deemed to be the inwither is going to be upset and the winner is going to be upset and claim that it is unfair but the process is one where people vote. If you dont have enough delegates, it is structured so people will end up voting. And the super delegates will end up voting for who they think the nominee should be. If you lose, people are going to get mad. Is there any doubt on your part that the Vice President has enough money to make it to the convention i think he has got enough money. A lot of it will depend over the next couple of days. I think if he does well in a number of these states he will get more money at the end of the day i dont know if it is all about the money. I think it ends up being there is a choice and people have to go out there and vote. The fact that he may not have as much money as sanders does, you know, if people want to support him, they are going to support him. We will take another quick break. There are a number of coronavirusrelated calls on wall street today. We dont have a call of the day. Calls of the day, nike, disney, facebook, lyft, uber a reminder e othcn aonten to us live or thgon e bcpp we are back after this one of the products i helped develop was a softer, more secure diaper closure. As a mom, i knew it had to work. There were babies involved. And they werent saying much. I envisioned what its like for babies to have diapers around them. Thats what we do at 3m, we listen to people, even those who dont have a voice. At the end of the day, we are people helping people. But shouldnt somebody this is be listening . Pression. So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. When yowhat do you see . Itical issues facing our world, we see breakthrough medicines getting to patients in record time. We see harnessing natural gas unleashing the promise of clean energy. We see engineers simulating the future to improve today. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Hi, everybody. Heres whats coming up. Call it no shock and no awe. Did the fed miss its mark . The markets are definitely suggesting yes well continue on debate that ahead. Plus, the banks are getting hit and well dive into the sector to see whats next and whether any names are a good bet and he was at the white house 24 hours ago and now he joins us for an interview on where things really stand in the race for a coronavirus cure thats ahead on the exchange. Let me say, these are all coronavirus related. The impetus for doing this, nike, 123 from 136 at ubs. In the near term we think the stock plis correlate with news headlines. Who wants to take that how can you disagree . Lets down grade the whole market its not nikerelated it is Global Commerce slows down or goes negative year on year. Why would nike be spared they dont make masks. So im bidding for nike right now. Im not rooting for it but the stock comes down with the overall market i will back shareholder. Sub 80 . Sub 80. These are clash bids same with Berkshire Hathaway i might get my chance. There wont be an emotional decision these at specific price points where historically buyers have come in. So where they are trading today, and i suppose i should also pre face it with what happened yesterday the 5 moves a lot of stocks went up. Is starbucks a no touch . At current levels no. No. Industrial . No touch if youre going broad, heres what i said earlier. This is not a vshaped recovery in the stock market. Youre going to test the bottom. When you have the final capitulation trade, it could be anything coming out. Somebody gets a big call the clerk doesnt say do you want to work the order, they just dump it out on the order. Somebody has an accounting issue. The bottom is not in so yeah. All these stocks are likely to go lower we were talking about this earlier. You have your buy list this isnt the time on buy youre talking. Shes buying you added disney. Shes buying. Did i add disney. We sat here six months ago and talked about how disney had this tragic ebtory in front of it and we werent talking about parks it was Everything Else bringing the content back. Going direct to consumer are we going to see lower park attendance yes. But thats not why we bought it. We bought it for content wells fargo dropped from 255 to 180 i bought some disney on a buy limit last week. I think on friday. So yeah. The stock has risk froif is coming from the parks. So there is no way theyre going to do number you thought they would do two weeks ago lets get that out of way. How much is in a share price that has collapsed like the one has . I believe with what shes saying you have to be open minded you cant go into this and say this is the ultimate low just to say its fox its not. The other one i wanted to do. Take facebook and alphabet together if you have a recession and you have a significant dropoff in ad spending, you have the two most Significant Players in the digital ad space what happens in recessions is you dont get the dim in overall spending the most Effective Ad Solutions become more valley you about handle the ever. And thats google and facebook theyre just better than anywhere else you can play tag talking about which stock will go down less if a recession and facebook and alphabet, you look at companies that have a lot of cash on the balance sheet. They dont have debt if youre looking to where you put your moan in a recession, throws good compared to others how do you deal with uber and a lyft if you have these scenarios we talked about, mark talked about it this hour, too. People not doing their normal routine. Are you going to want to get into somebody elses car where hundreds of people potentially have already been in theyre certainly going to be impairment on the number of rides. There is been great reporting from china you see all the plastic in the cars thats certainly something that you wont want to feel as comfortable getting into somebody elses vehicle not knowing that so i think theres a discount that needs to be applied to ride sharing. To anything that is a shared service that you have very little control over. And uber was 42 got to be quick it went to 30 it doesnt have to go to 15 again, its all relative knowing where you feel most comfortable entering into a positionnong kwi theres more potential negative impact. The dow is down about 400 thats 1. 5 . You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. To be our guest. With an invitation. The invitation to lexus sales event now through march 31st. Lease the 2020 rx350 for 409 a month for 36 months and well make your first months payment. Experience amazing at your lexus dealer. Woi felt completely helpless. Hed online. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. Take the personal assessment i love the new myww program, because its tailored to you and get matched with a proven weight loss plan. Find out which customized plan can make losing weight easier for you myww join today with the ww triple play were back for some final thoughts our guest, its been great having you here. Wild times in the markets. My takeaway from you, the climbed of person who does what do you for a living, unfortunately, you think things are going to get a little bit worse which would be more advantageous for what do is that fair it is you want for everybody else to get better for us we need to it get worse and it looks like were going to be entering that faces in the next couple quarters and energy is one of the thoughts you zero in on . Weve done that and i think with where oil prices have gone, it has made that a lot cheaper over the course of the last three to six months an indication other than oil prices wouldnt go lower i dont know if i disagree with you well see you soon. My pleasure adobe a great content creation love the stock i. T qualcomm. Steve weiss has been all over this i was waiting for the price break below 83 i got it last thursday only a small size. Im keeping a lot of dry powder. 2,900 on the s p 500. It is a fat around number but thats where im going i would say youre wrong. 2902. Lets leave 30th. An incredible day already continuing on the exchange with kelly. Thank you, scott welcome to the exchange. Im kelly evans. It is an his, to day as the Federal Reserve announces a half point rate cut and holds an Emergency Press conference to explain it this morning. It has changed tlirl as coronavirus spreads in the u. S. But they still ants fate return of solid growth. Powell said he is prepared to use all tools at the feds disposal and admitte