Transcripts For CNBC Worldwide Exchange 20240713

As yet another central bank initiates an emergency rate cut in the face of a Global Economic slow down. Its wednesday, march 11, 2020 and Worldwide Exchange beginning right now. Good morning and welcome im Courtney Reagan in this morning for Brian Sullivan with me this hour aaron gibbs. Were going to kick off this morning with a wednesday whips off for wall street. Stock futures look to erase the majority of yesterdays gains. Right now we are indicated for a lower in the Dow Jones Industrial average, futures pointing to lower open of 482 points, s p500 down by 58 and nasdaq off by 161. Lets check out the action in the bond market. This of course has been something that weve really been watching before we go there, were going to watch the dow futures for you again, down 1. 4 in the early going. In the bond market, the yield on the ten year is above 0. 7 , 0. 741 look at the 30 year, above 1, but still 1. 2 those are levels we havent seen in so, so long all of this comes after the dow saw its third single biggest point gain ever searching 1,100 points and in the close snapping a threesession losing streak. The major averages remain in correction territory thats down 10 or more from recent 52week highs we are seeing right across the street overnight in asia as well, the japanese nikkei down by more than 2 . The shanghai composite down by a percent. To the campaign trail. Former president former Vice President , i should say, joe biden is gaining even more momentum to the nomination after key delegate wins in several caucuses and primaries overnight you whiching a big win in michigan the state senator Bernie Sanders carried in the 2016 primary. Ally voir dire tally joins us from cleveland the twitter machine tells me im in your home state so ill try to do it justice for you all the candidates were set to be here, both cancelling those events because of coronavirus fears here after talking to local officials on the ground. And this marks the first time that coronavirus has forced candidates to actually cancel events instead, joe biden went and talked with supporters in philadelphia Bernie Sanders went back to his home state of berlington, vermont. But this shows where the campaign is at in light of the mounting coronavirus concerns. Even look towards the coming weekend where the Democratic National committee is set to hold another debate. We heard from them last night. They say now theres not going to be a Live Audience in that debate room, nor is there going to be what we call a spin room or press file, the area where reporters like me go and cover the event. Clearly were entering a new phase in the age of coronavirus. But just to turn to last nights results, it was a really good night for someone like joe biden. He swept across the map in the states that we are able to project results in including in states like michigan you mentioned thats a place that Bernie Sanders did well in 2016 and a place that his campaign was also banking on doing well again in here but perhaps the point is made best in counties like livingston county, one of the suburbs in michigan, one of the places that flipped from red to blue in 2018 its also a place where 50 more voter turnout in this case that was good for someone like joe biden because i think turnout is going to be the message of his Campaign Going forward youre absolutely right it is my home state. I was talking to my mom about the cancellation of some of those rallies happening or not happening as the case may be so, as you look forward, whats next here for the candidates when it comes to delegates, to the caucuses, to the primaries. Well, look, right now theyve got about 150 delegates between them, between joe biden and Bernie Sanders and this race has been really volatile you look at even just after the nevada caucus, it seemed like Bernie Sanders had all of the momentum he was building this air of inevitability. Then joe biden having the big win, the endorsements falling behind joe biden that gives him the momentum. I think volatile is still the word of the day. In places like ohio, here, and florida as well. Thank you very much were going to move to breaking news in uk. The bank of england this morning announcing an emergency Interest Rate cut following the feds lead this happened during a special session yesterday, the bank voting unanimously to slash its key rate by 50 basis points to a quarter percent. Steve sedgwick is outside the bank of england in london. Good morning steve yeah, good morning. I was due to be and was down westminster which is three miles from here, the city of london, to talk about the chance that the uk man in charge was going to do on the fiscal front. But ive hot footed down to the bank of england looking at what bank of england has done following the fed is the first time weve had a rate cut. This is the First Time Since the financial crisis i would suggest some of the other measures below the surface are as significant if not more including the fact youve got this curious acronym, tfsme which is term funding which could add an extra hundred billion pounds of funding to the smaller and medium sized companies. The countercyclical buff is the banks have to make sure they hold thats been scrapped to 0 which means another 190 billion pounds there is going to be go to Small Businesses let me recap lower rates for the whole of United Kingdom with. 25 rates now, but also another 290 billion pounds which is going to be made available to banks to lend to businesses the bank of england says the credit is plentiful for small and Medium Size Companies amid the Coronavirus Crisis its worth noting the european markets are moving higher which is in stark contrast to what we saw in asia and the futures market we are getting new comments here from the ecb president she says europe risks a Major Economic shock she said the ecb will take its own steps as soon as this week what more can you tell us about this and where did these comments come about . What i can tell you is i remember 2009. I was here at london at the g20 meeting. Then i ran into president obama hosting pittsburgh in g20 2009 it was an enormous globally coordinated action this is potentially coordinated but were not seeing the leadership from the u. S. President , from the big investors globally as well as china and saudi arabia looking at a coordinated fiscal pack j the french finance minister now head of the ecb, shes been through this as well so, for her to say its akin to 2008, 2009, absolutely right late 2008 we had leemans collapse, then s p down to lows, lows, then many months later march 2009 and a month later we saw the g20 in london followed by pittsburgh later in the year. If she says its like then, we have to take her at her word that this is incredibly serious and were going to see more from governments and the Central Banks. I hope you have your Running Shoes on steve thank you for being with us this morning. Were going to join up with erin gibbs whos been with us here erin, whats your take on the action that the bank of england took here overnight and the potential coordinated action of the ecb. If we see more rates where theyre cutting, it makes sense for england because theyre the only country that can do big rate cuts without heading even further into negative territory. I think when weve seen weve looked at other countries that have really gone into big cuts and negative rates that havent stimulated getting them out of, you know, basically stagnation or even deflationary moves. Weve seen these rates put further into deflationary moves. I think countries like italy where they can go out of their required deficit rules, increased spending just on a temporary basis to overcome any economic slowdowns because of the virus. I think thats what might be more useful because one of the problems is even if rates are very low, that might help Small Businesses but youre just not going to see big cap x spending when the entire country is in quarantine. Youre not going to get people motivated to do anything with that extra cash. So, i think thats youve got to be taking care of the individuals, whether helping them on Additional Health care, additional spending just to be able for people to still go to work on a day to day basis versus cheap loans the market pretty much expects were going to see a further cut here from the Federal Reserve. But beyond that, does the fed need to do more . Do they need to look into tools they havent used before, other purchases, other kinds of assets i think because this isnt so much about a lack of cap x spending or a lack of not being able to get your mortgage and really more about changing our behavior and that loss of productivity of simply being able to go and travel and go to your conferences, go to your interviews, go and meet new investors. I dont see the Federal Reserve being as powerful a force as weve seen over the past ten years just because even if i have all this extra cash that i might be able to access for spending, until i have sort of more freedom of movement and able to do business as normal, i may not be able to do anything with that money. Theres no point in taking out a loan unless i can go out and, you know, throw a big conference and throw a big party. So, i think thats going to be one of the issues that we see here you may have some immediate constraints still. Erin, thank you. Youre going to stick around for the hour weve got much more to talk about as we move forward when we come back, worse than september 11th . What the ceo of a major airliner is saying about the demand after the coronavirus threat plus italy on lockdown thats coming up first take a look at some of the biggest s p laggards they include alaska air, anchor plc, and mgm resorts a very busy hour still ahead when Worldwide Exchange returns. Dont just plan to retire. Plan to live. An annuity helps cover your essential monthly expenses, so youre free to live the life you want. Find out how an annuity can give you Lifetime Income at protectedincome. Org welcome back the number of coronavirus cases in the u. S. Topping 1,000 for the first time as michigan becomes the latest state to report its first state the u. S. Death toll now at 28 people this as new york with nearly 180 confirmed cases, the most in the u. S. , institutes a containment zone around the epicenter of its outbreak just north of manhattan. Contessa brewer is here with the u. S. Government response and more what do we got this morning . The Treasury Department is considering delaying the tax deadline beyond april 15th as taxpayers and irs brace for economic disruptions this is just one of the measures that the treasury and the white house are contemplating to relieve financial pressure walmart is deploying an emergency leave program after con frming one of its associates in kentucky has tested positive for coronavirus. Walmart is taking preventive measures to keep stores clean, to maintain a healthy environment, looking for more efficient ways to sanitize shopping carts and evaluating whether to modify store hours. At some 24hour facilities that would allow for deeper cleaning. Jet blue ceo robert hayes said demand for Airline Flights has fallen more in response to the coronavirus than it did after 9 11 when i look at how the demand has deteriorated the last couple of weeks, it appears to be worse than what we saw after 9 11. Given the uncertainty of the impact, the speed of events, and the dynamic nature of whats going on, jetblue has withdraw First Quarter and four year 2020 guidance in 2001 hayes says they saw a 30 declean. Today its worse united said bookings are off 70 . This is a tough time for airlines airlines, hotels, cruise operators, all of it overseas the outbreak continues in italy the number of deaths there jumping more than 30 overnight. 631. Nbcs claudio joins us from rome whats the latest . Reporter good morning, kourtney the first day of nationwide lockdown without a glitch yesterday. There are already some who are saying the very tight travel restrictions imposed on all italians all 60 million of them are not enough to stop coronavirus, especially in the north. The governor of the region thats the economic power house of the whole of italy, this is where milan is, the government is saying they want to go even further. They want to shut down the remaining shops, the transport system, and have only supermarkets and pharmacies to remain open. Look, the reason is that lombardi is where the outbreak took place and where the highest number of cases are being registered every day just to give you an example, you said yesterday the death toll went up to 61. Thats one of 20 regions here in italy, the number was 468 dead so, the majority of people dying are dying in lombardi. What theyre afraid of is theyre going to run out of beds and intensive care and thats going to be a massive problem. Well see whether the governments today will agree to those requests and even if they will expand that ban to close down all the shops all across italy as they have done yesterday. Kourtney claudio, i also noticed there was a twitter thread from an emergency room doctor, i believe from the Northern Region of italy, who was concerned about the respirators, frankly saying there werent enough for those in the hospital, particularly the Elderly Population to have those. When it comes to those supplies for those that are just on lockdown, that may not be sick but may be contained to their homes, have there been enough access to things like cleaning wipes and masks and other kind of sanitary items, and frankly, you know, food and stock up supplies okay. Lets start with the food. Initially people started panicking, especially in the north and started ransacking and looting supermarkets thats not happening anymore the government ensured they will be stocked that calmed down a lot on the first day of lockdown i went to check out the supermarket. The food was still there people were lining up because you cant be more than 30 people at a time in a supermarket the only shelf that i saw empty, i dont know why, it was the one that had toilet paper. But the food was there in terms of the other question, yes, there is a massive problem when it comes to spaces and beds in intensive care wards because all across italy there were only a little more than 5,000 of those and those, of course, are being filled up very quickly and so they are trying to add more but at the speed of this coronavirus, they need to get some more drastic measures like the ones that the government of lombardi is asking for which is shut down everything, just keep the essentials open, kourtney. Claudio, thank you for joining us again today on all of the updates out of italy stay safe and healthy yourself still on deck, another retailer warning investors over fallout. Lets check out the nasdaq laggards, amgen down more than 4 Worldwide Exchange is back after this memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. Including your Interest Rate right by locking in a fixed low rate today. And you can get your money right with sofi. Check your rate in two minutes or less. Get a nofee personal loan up to 100k. Get a nofee personal loan its only human to find inspiration in nature. And also find answers. Our search to transform. 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The Hotel Operator says with the virus spreading beyond china and the related travel restrictions, the potential negative impact will be greater than the companys previous estimates share of hilton down more than 2 well, straight ahead Emergency Action from another central bank as the world braces for a dramatic economic slowdown in the face of the coronavirus threat and as we head to break, a developing story in the energy patch. Saudi aramco, russia responding saying it could boost production by half a million a day which would put that countrys output to a record 11. 8 Million Barrels per day. Despite the ramp up, reports say both sides continue to negotiate. We continue to monitor the situation as it develops wti crude down more than 2 . Chgeonnbatches worldwide exan cc. Is the age of expres. But shouldnt somebody be listening . So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Its almost like a challenge everyday to see how well i can eat and still enjoy myself all day long, i wake up every morning to see how much weight ive lost and how much better i look. Myww join for free and save 30 were midway through the week lets get a look at futures. Dow jones indicated lower than 2 , s p500 down more than 2 as well and this is after a relief on tuesday following mondays huge sell off lets see what happens weve got a lot of time left before the opening bell sounds lets take a look at some of the dow laggards premarket goldman sachs, jpmorgan chase, and nike down. Youre watching Worldwide Exchange on cnbc. When i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. It is already working in cities like tokyo. Can we go get some ice cream . Alright, we gotta stop here first. From smarter atms, to after hours video tellers comcast business is connecting thousands of banks to technology that turns everyday transactions into extraordinary experiences. Hi there. How are you . Do you have any lollipops in there . laughing no, sorry. Were helping all kinds of businesses go beyond customer expectations. How can we help you . Stocks poised for another round of steep losses as the roller coaster ride continues. The bank of england announcing an emergency rate cut. President trumps efforts to shore up the market met with a muted response in washington the second half of Worldwide Exchange starts right now welcome back. Im Courtney Reagan in this morning for Brian Sullivan still with us erin gibbs lets get a kick off on the second half hour stock futures look to erase the majority of yesterdays gains. Right now the Dow Jones Industrial average is pointing low tore the tune of 482 points, s p500 off by 57, and nasdaq down by 156 points lets check out the action over the past 12 hours. Its been quite a 12 hours we are off session lows for the dow futures, down 1. 3 but still after that relief rally yesterday were pulling some of that right back again today. Lets get a look on the bond markets, see where yields are. Appears here we go again, falling again. The tenyear yield holding above 0. 7 at 0. 746 the 30year yield 1. 23 that one still amazing me. And all this comes after the dow saw its third biggest single point day gain ever surging more than 1,100 points into the close and snapping a threesession losing streak on tuesday major averages still remain in correction territory that means were down 10 or more from recent 52week highs we saw red arrows overnight in asia as well the japanese nikkei down by more than 2 , hay sang off. 6 . Breaking news out of the uk, the bank of england announcing an emergency Interest Rate cut following the feds lead to mitigate the Economic Impact of coronavirus. That in part sending the major averages in europe higher to the tune of almost 2 , the ftse went higher by just about a percent now. Steve, take us inside the decision reporter yeah, look kourtney, i dont know how well the phrase throwing the kitchen sink at the problem translates at the other side of the atlantic but i know that shock and awe works on both sides of the bond and thats what theyre trying to do today westminster is going to do later and throw fiscal stimulus at the uk economy this morning it was monetary stimul stimulus from the Outgoing Bank of england Andrew Bailey take over start of next week. They cut Interest Rates. 50 basis points down to 25,. 251 . What theyre also doing is throwing money at it taking away countercyclical buffers. The banks have to hold less capital so they can lend more money. That could put money into the economy. For the next 12 months you can lend money for four years if youre a bank lending to smaller and medium sized businesses at a rate which is not going to be the usually 3, 4, 5 at these Small Businesses you can lend them at the base rate over at the bank of england as well. Youve got lower rates, lower Capital Buffers for the banks, and more money being lent to the sme. Mark cairny said in 2008 the Financial System was the problem. Now it can be part of the solution back to you, kourtney. We apreeappreciate all those updates. We have another busy morning of market moves but theres a lot of moves in politics overnight so were going to have to move there in just a moment first were going to talk about the ecb because we had strong comments out of kristine laggard. She says the ecb needs to Work Together to have the coordinated moves or we could having something worse than what we saw in the financial crisis. That is awe pretty strong commentary out of ecb. We are seeing the market move higher in europe across the board. So, perhaps the Market Participants like what shes saying because of the very strong tone that she has erin, what do you make of those comments and do you think thats something thats possible and necessary . I think its certainly something thats possible. I think that the fear has spread across europe that theyre getting they may have put nationalist issues aside and are starting to Work Together. We even see that with italy just with infighting across parties that are all pulling together. So i think in general europeans are realizing this is something we really need to address, maybe obviously not just only just using Monetary Policy but also perhaps increasing deficits to really get the spending to get the entire region out of the mostly deflationary period in Economic Activity theyve had for the past months. They didnt come into this on a strong level, and so i think theyre really realizing they knead to pull out all the stops. And jim your yo is also with us jim, if i can get your comments on the early going here in the ecb commentary and the movements over in europe, movements in the pound. What do you make of that is it necessary, coordinated action, something that needs to happen at this point to sort of stem the possibility in the pushdown from the Economic Growth from the coronavirus and otherwise. Reporter for several weeks i thought the Global Response was going to be coordinated, liquidity projections and theyre following that script. The question as necessary is that markets and Central Banks seem to be pricing for worse Case Scenario. I always thought in mid april for some reason not just because the weather breaks and thats the end of flu season here but also the time frame. If by then it seems that we prepared for the worst and that money is still sloshing around in the system, then i think the u. S. Stock market becomes a place as a matter of fact with ecbs cutting right now and european markets rallying, i would have made the argument that more of that money would have filtered into the u. S. Stock market just because we are less bad from a coronavirus standpoint and even before this all happened we were, you know, the u. S. Stock market was kiendd of on the list of almost global safe haven until the correction ban. I think when the bust et issals we probably will have overprepared i hope thats the case i think there will be a lot of money in the system that flows to the u. S thank you very much, jim. Stick with us here as i just mentioned were going to move to another topic we had a very busy morning were also watching the campaign trail, former Vice President joe biden extending his delegate lead overnight, winning michigan and three other states following yesterdays primaries and caucuses we have the founder and decree of of maximum momentum how to get it, how to keep it jim and erin are still with us what do you make of what we saw overnight from these new wins from former Vice President joe biden and path to the nomination, no well, last tuesday the most used word in the word was momentum and pundits are using momentum to describe whats going on whats the definition of momentum weve been able to quantify and decode what does momentum mean looking at the physics definition of mass times velocity what happened over the last week is that joe biden out of nowhere he always had mass. He never had velocity. He was a flat line until he got to south carolina. He wins. The whole Democratic Party sort of gives him velocity, klobuchar, buttigieg, bloomberg all support him. He gets velocity, wins pretty decisively on super tuesday. Bernie sanders had a bad week, lost his momentum. A coronavirus comes, cant engage and cant get anybody to listen to his Campaign People keep coming behind biden. Hes done nothing. The Biden Campaign hasnt changed one bit. Its just all the momentum has moved his way and sanders just cant get it back. And so when we look at our momentum score which is mass tim times velocity, we see that sanders momentum is dropping, bidens momentum is going up, and thats how you win in politics youve got to have it go up on the right time . Youve got to have momentum on election day or you lose. And the key delegate races. Why are we not seeing any biden bounce this morning . Shouldnt the markets be a little relieved that sanders momentum is wayning a bit . The s p would get about a 10 point bounce but not follow through and leave it i remember we like to think in a psychology of sanders is bad for the market that must mean biden is good for the market i dont think thats the equation here. I think the market was saying sanders is bad for the market. If hes going to be out of the equation, then biden is neutral to the market. Then it just becomes a nonstory and the market goes back to concentrating on oil and coronavirus and the negative things thats been concentrating in the past. I think we often fall into that trap and i dont think its always accurate. I think now biden just means we can ignore this and i think the market feels he would be more of a caretaker president than anyone who shocked the market one way or another i think youve got to throw the fed in there too if the market is saying bidens policies would be a little less business friendly than trump but more so than sanders, then they could make up the difference and buoy the stock market. Erin, youre nodding. I think if you summarize it as if sanders goes away, youre taking away a great negative but not that biden is such a positive for stock market investors. Youre not going to get that bounce from eliminating one more negative we still have these great big fears to worry about with this virus hitting earnings it could just be worse if sanders was leading. Got it. What should we be looking forward here what other momentum things should we be watching . We have two major momentum issues biden now is going goat the nomination hes got an insurmountable lead unless theres a major correction which i dont think is going to happen so, its biden as the nominee. We also have a coronavirus which has significant momentum and continues to build over the weekend i watched coronavirus go from 46 to 53 i knew monday was going to be a messed up day because the whole weekend we were thinking about i. As corona takes second, were not going to be thinking about politics which is going to give biden and trump a free ride on the political sides until we get to the corona issue. Coronavirus is here and that uncertainty that is permeating, do i have it, do i not have it, were just starting to see that momentum i think thats the major trend that were going to see in the political landscape. Second of all, we really dont know what bidens going to be about. Hes unchecked and hes going to be unchecked by sanders. Well find out more where hes going. Weve got a lot still to find out. Mike, thanks for being with us keep us updated on those indicators jim, thank you for being here as well and erin, were going to stick around and talk to you a bit more in just a moment. Be sure to tune in our special coverage of whats shaping up to be another fast moving day 7 00 p. M. Eastern time only on cnbc still coming up on Worldwide Exchange President Trump and his administration set to meet with a number of top Business Leaders on the coronavirus, the names hell be speaking with plus lawmakers set to question the white houses response to the u. S. Outbreak. Were talking to one official heading to capitol hill today. And taking another look at some of the biggest s p laggards in the premarket alaska air down 7 , oxen dtal pretroll yum down and am core down. I. I dont know. When did we introduce siracha . Not soon enough. These are our sales. By product, by region. Set against evolving demographics. You can actually see taste trends. Since when can we do that . Since we started working with bdends. announcer people who know, know bdo. Dont just plan to retire. Plan to live. An annuity helps cover your essential monthly expenses, so youre free to live the life you want. Find out how an annuity can give you Lifetime Income at protectedincome. Org. The number of coronavirus cases here in the u. S. Has now surpassed 1,000 as michigan reports its first case the virus is now being reported in at least 35 states. Contessa brewer has the latest including the white house response good morning again contessa. Guilty ood morning to you the president s plan to suspend the payroll tax to poboost the economy is falling flat on capitol hill republican senators reportedly expressed skepticism of the proposal Steve Mnuchin is leading the administrations economic response and he met with House Speaker nancy pelosi yesterday to start talks on a relief package. I had had a productive meeting with the speaker i think you should know we worked together on thespending i feel like were going to Work Together on a bipartisan basis to figure out how we can get things done quickly and help the americans that are most impacted by this in small and medium sized businesses that are impacted is there negotiations underway i would say were having discussions about various different policies the president and Vice President just had a very good lunch with the republicans. We spoke to them about ideas so, i think theres a lot of interest on a bipartisan basis to get something done quickly. The Trump Administration is set to meet with a number of top executives today on the Virus Outbreak the white house reportedly will hold talks with several Large Tech Companies including facebook, google, amazon, twitter, apple, and microsoft. And the administration has also invited several top banking leaders to the white house to discuss their liquidity levels and the stock markets volatility executives scheduled to attend include wells fargo ceo, goldman ceo david solman, and bank of america Ceo Brian Moynihan organizers of coachella and stagecoach festivals have postponed those events until october. And next Months International auto show has been rescheduled for august organizers of e 3 say biggest Video Game Convention will be cancelled. That is scheduled for june in los angeles. A lot of this is about tackling these events ahead of time that seems to make sense, preventive measures. The House Oversight committee is set to hold a hearing this morning looking at the Trump Administrations ability to officially and accurately diagnosis and coronavirus and manage the outbreak joining me now is chris curry. He is the director in the Government Accountabilities Office he leads the departments work on emergency management, disaster response, and recovery and is set to testify at todays hearing. Chris, good morning. Thanks for starting the day with us what do you plan to say today in your testimony how has the white house and administration been handling this thanks for having me first of all. I think one of the things were going to talk about is this is not a new type of event. Weve had these types of outbreaks before and actually weve been very concerned about our ability to respond to a pandemic, particularly after the 2009 h1n1 attack so, this is not a new thing. But obviously this is a very different type of attack so, how would you say the response is different to something thats just spreading at a so much faster rate and clearly has people drastically curtailing their daily habits already . Absolutely. I mean, you know, while these types of pandemics have happened before, i want to be clear its really early to assess the response theres just so much we dont know we dont know how quick this is transmitting we dont even know how many people are being tested right now according to the administration yesterday but clearly this has a very huge impact on us here in the u. S. Right now. And one of the things well be talking about is past experiences and outbreaks and what different federal agencies are doing. Its not just the medical community and cdc and those agencies but how does this affect other departments like the department of Homeland Security with the travel restrictions and other things like that chris, will you be giving advice to congressional leaders today on what you think they should be doing based on past events or based on what we have learned already from other countries, making sure we have enough respirators should we need them, making sure the Health Care System is able to take care of these patients in whatever way they may need taken care of financially or otherwise . We wont be giving specific advice on the outbreak because its difficult to know whats needed today what we will be talking about is the recommendations weve made in the past after other outbreaks in the country and things that need to be looked at moving forward, questions about whos in charge, questions about how federal agencies coordinate, and questions about who pays for these types of things. Moving forward we and other agencies will be doing a lot of work looking at the current response and figuring out areas to prepare for in the futures. One of the challenges of these biological events is theyre so rare honestly, complacency sets in and its difficult to prepare for these things day to day. We have a window of opportunity to up our game in term of preparedness now and in the future we have to leave it there theres a lot to tackle with this virus and we hope your congressional testimony goes well today thank you for joining us this morning. Thank you on deck the moves you need to make with your money in what is shaping up to another volatile trading day ahead the dow lower by 636 points, nasdaq down more than 200, s p 500 down by 77 after yesterdays rally. As the Global Markets continue to face volatility, you can listen to us live on the go and the bccn app dont go anywhere. Tv just keeps getting better. How you watch it does too. This is xfinity x1. Featuring the Emmy Awardwinning voice remote. Streaming Services Without changing passwords and input. Live sports with realtime stats and scores. Access to the most 4k content. And your movies and shows to go. The best tv experience is the best tv value. Xfinity x1. Simple. Easy. Awesome. Xfinity. The future of awesome. Get you back to the markets. We now appear to be set up for another volatile day amid continues virus worries and the bang of england follows the fed in cuts rates by half a point. Futures are lower by 614 points. Im joined by Catherine Rooney vera and erin gibbs, Wealth Management and chief Investment Officer is still with us catherine, i want to dive right in and see if you have any advice for investors if theyre just waking up, they saw this huge drop off on monday, this perhaps relief rally on tuesday because maybe monday took it too far but now were indicated lower here today if im an investor waking up, what would you tell me what should i be doing, thinking, feeling . An investor just waking up will have negative and positive news on the negative front you have kristine la gard coming out saying with a ridiculous statement saying this could be worse than 2008. The fact is this is a temporary phenomenon which is not relatable to 2008 in the sense that the Financial System and its utter collapse brought about that crisis and it was devastating for many years, for ten years subsequent so, this is a different scenario where as he said you can have the Financial System playing a part to counteract the temporary, he said it about 20 times courtney, the temporary impact of this viral concern what im telling my clients right now is start to accumulate start to accumulate s p500 i think the valuations are attractive as current levels, and i believe that this period of time, courtney will prove down the road to have been an opportunity to buy erin, what do you think have we hit the bottom is now the time to find opportunity or not yet i still see this as potentially theres room for further decline. A couple of reasons. One, we just havent hit major level of supports when you look at the past three to five years where buyers really jump in, even looking at support levels from 2018. We could go to 15 times earnings and looking at 16 1 2, 16. I think it would be quite possible for us to decline another 10 . Again, this being temporary, i think by the time we hit Fourth Quarter, we start seeing more positive trends, going back to normal life. We could have this massive rebound in the Fourth Quarter which is why im advising clients to not do anything if you certainly have the extra passion, youre willing to take that risk of potentially seeing new buys go down another 10 , you have that stomach for that, thats great but most investors dont so, im advising that you stay with can i just Say Something . Its impossible to time the bottom its impossible. No one can tell you when the bottom will be you can go down another 2, 5, 10 . What im telling my client Social Security that this period of time, you can start today, you can start tomorrow im not going to say when the bottom is. This period of time will prove to have been a time to accumulate positions in the broad indices which are getting disproportionately impacted and are discounting, erin and courtney, the worst Case Scenario without discounting what is in the offing which is subsidized loans just like bank of england did today phenomenal response expected as well a drop to zero on the fed funds and youre also going to get on the fiscal front payroll tax cut extension of unemployment coverage, if im right on that, then by year end, markets will be far higher than they are right now. Erin, what do you think do you have any specific advice then im not quite as bullish when this recovery it may even take to the beginning of next year to fully flush out until we see positive news around the vaccine. I would say unless you really need that cash and you really need to reallocate to bonds to at least stay on your overall allocation, i think the bigger issue is that if you were overexposed to equities you probably no longer are and in that case you might just want to stay with your overall allocation and really i think most important is just minimizing trading because you dont want to have to do these whip shaw. So, if you have cash saving on the sidelines, thats fine but for the most part, most investors just need to ride this out. Catherine and erin, thank you both for being here with us on Worldwide Exchange. That does it for us, this morning. Squawk box beginning right now. Good morning here we go again big premarket moves, overnight huge moves in the stock future the dow set to give back more than half of yesterdays gains which got back half of mondays yesterday. Breaking overnight, the bank of england announcing emergency Interest Rate cut following the move by the u. S. Federal reserve. Ill take you live to london and the u. S. Trying to step up its fight against the coronaVirus Outbreak, setting up the first containment area in new york and shutting down events and gathering nationwide. Its wednesday, march 11, 2020 squawk box begins right now. Good morning welcome to squawk box here on cnbc were live from the nasdaq markets. Lets take a look at the u. S. Equity futures i dont even know where were coming from and where were headed this point were down by about 556 poupts this comes after the biggest oneday advance since december of 2018. But youre right that was giving back half of what we had lost the day before. Now were losing half of what we gained yesterday yep its getting a little hard to keep track of these, but these major swings are continuing not only on a daily basis, but hourly basis s p futures down, nasdaq off by 184. And if youre watching the