Transcripts For CNBC Closing Bell 20240713

A vote failed again and as new york becomes a epicenter of the outbreak in america, more states are taking strict measures to keep residents at home including michigan, massachusetts and louisiana. As we stand, the market is down 3. 4 on the s p 500. The dow is down 60 poin60 59 minutes left of the session weve got a huge lineup of guests coming up including the ceo of Quest Diagnostics to break down the latest on testing for the virus and former bank of america governor, mervy nn king he was governor of the bank of england during the financial crisis we are covering every angle of this crisis for you mike is tracking the mashlgt moves. Kayla has the latest on the stimulus bill. Steve liesman is covering the feds historic moves again today and meg is following the latest treatment developments mike, first to you on the market another big sell off despite another big fed intervention yes, definite ly a big sell off. Though i have to say the intentionty of it, i dont know if this is much comfort, but the intensity isnt what we were seeing last week obviously we get up to the flat line and were pinned on some of these headlines coming out of the senate, but if yu look at a five yore chart of s p, it will show you what a lot of chart readers are looking at which is perhaps downside targets now being revised below 2200 to the mid to high 2100s. That gets you back in fact we dipped below 220 and sort of got to november of 2016 levels so thats how far back in time were dialing. The within theres significance in that area is that we spent a lot of time in 2015, 2016, right around there, so it seems like it might be an obvious place for some selling to let up if you look at different segments theres a couple of different messages, one of which is today, it is the defensive stocks that are losing more than the aggressive low volatility stocks have done better in this downturn but if you look at the last week, its the higher, the more aggressive and risky stocks faster moving ones that have started to outperform friday and today. Its a thin reed to grasp on to, but it suggests that one, either the stuff that hasnt lost as much is now being redeemed for cash and you can have no relative winners in a bear market or two, that people think theres been some overdone sell ing in some of the more aggressive names and if theres going to be a rebound rally, its going to be led by the riskier more beaten up stuff those are now being able to i guess surface as themes at least in the shortterm. One of those risky stocks that are up today is airlines. Lets focus on washington. Kayla covering the latest developments in congress as it relates to passing the stimulus. Where are we you, kay now, kayl . We saw a second vote fail one democrat defacted. Senate democrats are going to hold a Conference Call about next steps this as debate rages on the senate fail about provisions that should be included. Even so, i was text iing with a senior official who said its hot on the floor, but cool in the back room saying the talks are continuing to proceed, but when i asked about this idea that senator mcconnell raised earlier about the possibility that this now gets dragged out later into the week, this official said if it grinds on, that is possible, if there is an impasse, but as f o right now, the talks are continuing heres the moment from senate floor earlier today where majority leader mcconnell said that by refusal to allow us to take this first step, which would have still given them plenty of time to negotiate, we have put the senate in the following position if any of the 100 of us choose to object, we cant deal with this until friday or saturday at the earliest so the stakes are high for senators to figure out a compromise solution. We will see whether today is the day that yields that so what happens next and what are the sticking points that have them so divided depends on who you ask. Right now, there are meetings that have been continually taking place on capitol hill you have that Conference Call among democrats on the senate side thats happening then you have really continual meetings with the madministration officials. Democrats have wanted a lot of things they want more conditions for the corporations accepting this money. More transparency on behalf of whom the Treasury Department is is providing some of this stimulus to and they want some environmental prosigs visions for some of these companies then theres a whole host of other communities and sectors they would like to provide funding to what we dont know is how the hierchy of o that works. Whats a deal breaker . A nonstarter for democrats and what they would be willing to leave on the cutting room floor. Thats conversation thats happening right now. Thank you so much for that. Now the fed taking more extraordinary measures today to help support the market including an open ended Asset Purchase Program earlier on cnbc, david teper weighed in on the feds moves. Takes a certain amount off. Theres still a lot of stress, a loft different places. So it takes a little bit of the stress off and you really need a washington package lets bring in Steve Liesman with more on what the fed has done today steve, another big set of measures adding to many last week as well yeah, wilf. The fed give iing the whatever takes signal here at going where it has never gone before when it comes to Monetary Policy and trying to liquefy and unfreeze severely strained credit markets and financial markets. As part of that whatever it t e takes, right after the fed made that announcement that it would do an unlimited number of purchases or amount of asset purchases until there is relief in the markets, the new york fed announced it would be buying 125 billion in securities every day this week. And if you wait just a minute, ill put that in some kind of context for you for what id edit during the financial crisis, but lets go through the other historic things the fed did today. It announced a main street landing facility its going to be the stimulus bill to do that, it needs backstop from the treasury. It will do a 300 Million Lending Program backed up by the treasury already in that program and other, it will purchase and finance Corporate Bonds, asset backs securities, muni bonds its going to go 625 billion of purchase this week 5 times 125. Qe2 over seven or eight months was only 85 billion a month in just the last two weeks, last week and this week, it should do over, just about a trillion dollars worth of purchase so we have not been here before and yet im still hearinging theres motheres more the fed needs too and that these programs are going to take time they have to get used to putting these things to the fed. Doing that kind of business. Theres some relief out there, but still severe strain, wilf. Absolutely. Im sure many Market Participants will be pleased to see treasury yields and spreads come down today. Not a huge amount relative to the stress theyve seen. Interested in one of your final comments there steve because ive spoken to a couple of cfos and all of them seem to continue to strike the same tone which is the fed are listening and are acting quickly thats the Positive Side a couple also give the picture you just sort of alluded to, which is theyve announced so much so quickly theyre having a little bit of a trouble, the fed, in terms of actually enacting all of those different policies and measures and i guess thats something that might account for why we havent seen treasury yields come down more although not really a positive spin until theyve got their handle on these measures theyve announced. All those thing rs very true, wilf if you look at the ten year, the fed can take a little bit of measured success we were about 120 last time. Thats now down u in the 75, 80 range is thats going to be a measure of success for the federal reserve. Look, i talked to a guy on the credit desk. He said look, we have to figure out how this stuff works there is no silver bullet. You can imagine also that the situation is changing and moving whats a good credit whats a bad credit . Thats going the change tomorrow or the next day. What market is strained . I think the fed is at a point where its willing to basically liquefy almost every high equ quality credit market thats out there and they didnt sooner do that than i got a note from one analyst who said okay, how you going to figure out how to liquefy the rest, the lower grade credits because you could have a problem now in the clo lower credits. Its one step at time here and sometimes two steps backwards. But theyre certainly listening, thank you so much for that we should mention we are down 3. 5 on the s p. Just under 50 minutes left of the session. Turning now to the virus itself and the race among pharmaceutical companies to come up with an effective treatment meg has the latest on this front meg. Well the news is moving very quickly, but probably the drug combination getting the most attention is one tweeted about by President Trump over the weekend and mention ed many time in his press conferences he said this combination of two drugs have a real chance to be one of the biggest Game Changers in the history of medicine quickly to explain what those are. Theyre existing drugs, one for malaria and the other an antibiotic, there was a small french study that came out showing in a few patients there might be promise using this come by nation but that the structur is too weak to prove it really works. They also note there are safety concern, especially to the heart. So larger Clinical Trials are needed to prove these safe and work and new york is start iing Clinical Trial of this on toews, but guy, theres a lot of work going on on Clinical Trials. Gileads remdesivir, were supposed to get the first data in a couple of weeks from china trials kevza rrra, those trials are enrolling very quickly they started last week and roches actemra, which is a similar drug, starting trials in earl april so well get more day the over the next few weeks all right it will be key to get those headlines. Dow down more than 700 points. When we come back, the New York Stock Exchange movie ining to fy electronic trading well discuss with tom farley, next and latest on where we stand with tesng e ceo of Quest Diagnostics joins us live with the measures his company is taking. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. But when allergies attack,f any the excitement fades. Allegra helps you say yes with the fastest nondrowsy allergy relief and turning a half hearted yes, into an all in yes. Allegra. Live your life, not your allergies. It seems in the senate about a relief bill to help families weather this crisis. The s p is off about three and twothirds percent nasdaq holding in better as Technology Shares hang in there comparatively off just one and a quarter percent. Russell down b about 2 . Some individual market movers. Zoom video is soaring. Up 19 on pace for a sixday win streak up 21 now up 50 in the last month as more people opt for its Video Conferencing services for their work at home needs Southwest Airlines also higher bank of america and Raymond James upgrading the stock now to overweight bank of america says while booking trends are concerning, thats a mild way to put it, the firm believes southwest is best positioned and the highest quality airline in the group with a very conservative Balance Sheet. Sara, back to you. Thank you the New York Stock Exchange experiencing its first ever all electronic trading day today in an effort to protect employees from the coronavirus outbreak. Billionaire investor ken langone weighed in on what it could mean for the future of the exchange we can do business electronically so my own feeling is that probably theres a good chance, probably, i wouldnt be surprised if they didnt open the Stock Exchange again joining us now is tom farley, the chairman and ceo of far point acquisition corp. And former president of the New York Stock Exchange tom, welcome it does raise questions now that were seeing for the first time in its 228 year history, the market trading without the floor. Do we need to floor of the Stock Exchange to ever reopen . Thanks for having me on with you. Let me start by saying the markets are actually working very, very well and i want to acknowledge that and i want to commend not just my own colleagues, the nyc, but nasdaq and others i know its cold comfort to those watching their 401 k s or other retirement plans dwindle away here, but its very important the Market Infrastructure works in a volatile period and ive never seen volume like this. Ive never seen order counts like this. The options market, equities markets, these exchanges are handling it without a hitch which is amazing because were talking tens or murkss of billions with respect to messages in the ochinptions mar. To answer your question directly, the nyc can work without the flor the benefit of the floor is that you have those traders down there. You have that Human Element and theyre able to source liquidity really most importantly at the open, the close, on ipos, halts and reopens. The och opens and closes on the ncc floor are less volatile. And so you know, this will be an interesting test my supposition is that youre going to see more volatile opens and closes but it will be something that we can compare it against i can guarantee you market professors are ginning up to study this data it will be sbreing to see what it reveals to that point, i dont know how its going to be many ipos in the next couple of weeks, but if there are any again forced closes because were limit down, do you think those reopenings are going to be pretty tricky and bumpy without the guys on the floor . You know, i think this has been 15 years in the making. Shes manager by training. She has been involved in the floor. Personally involved in overseeing this all electronic effort for many, many years. Look, it will work it will work fine. Nasdaq of course all electronic forever. So im not too worried about it. The question is will it be more volatile than it would otherwise be when the floor soaped and my guess is that yes, it will be. It will be satisfactory and certain ly its the right thing to do to keep people safe. I know the exchange had a couple of cases of coronavirus so it was a no brainer i think it will work just fine i think well see the nyse floor coming again by the summer we should also say that it hosts us and its always exciting, especially on ipo days tom, you u mentioned just how unusual all of this action has been in the markets. I mean four Circuit Breakers triggered since early march. You talk to a lot of smart people and opobvious the market yourself what do you make of the relentless selling and whats priced in and how bad its going to get for the economy in terms of this virus. The market rs the messager and prices are the message the market is doing a fantastic job of telling us that this is a massive, massive problem i think the market is telling us we dont have a plan to get out of u it. It is not too early. To start thinking about what exactly does the plan look like to get out of this what is the plan to reduce social distancing over time. To get people back on planes and trains you need to give the market a little hope. And im really not hearing any of that. I think the market is sensing it that a mwe may be caught in this longterm loop and thats why were not hearing a plan to get out of it. I think the second thing the market is telling us in the near term is that Congress Needs to get their act together this has a heartbreaking toll on Service Industries originally it was the service industry, the travel industry. Now its every industry and its at this exact moment, not tomorrow or three days from now, but this exact moment that we need to see our Government Act in a constructive way. We seem to be supportive and i think thats what the markets are doing. Theyre really function iing wel i know some people are going to reflexively kind of i dont know, theyre in the going to like hearing me say that, but the markets are actually working r very well and sending the message that needs to be sent. This idea that we should shut the markets makes no sense whatsoever you need these messages to be sent and also the market, even p if prices are going down, they provide an avenue for ly quiquiy which is must needed by some people, by some retirement account, so as painful as it is and it is for almost all american, we need to leave the markets opened and they need to continue to function by and large the way theyre functioning even if were going to see extreme volatility. Thanks for joining us weve got just 36 minutes left of the session. Were down just over 4 on the s p. Approaching the lows again the dow is now down 820 points t still ahead, the feds massive new moves and Global Central Bank with mervyn king. And well get a check on two of haeshiars,iv le reports from italy and china thats up u next on cnbc at outback steakhouse, were committed to serving our communities by doing what we do best. Serving you and making one great steak. Thats why we have curbside takeaway and delivery on outback. Com because at outback steakhouse, were here to serve you. Edward jones is itswell aware of that. Et. Which is why were ready to listen. And ready to help you find opportunity. So. Lets talk. Edward jones. Its time for investing to feel individual. Time for ab update on how some hard hit countries are faring we have Worldwide Team coverage. Claude o is live on the phone in italy, but first, eunice on the ground in beijing. To what extent is life back to normal in china . You know, today is exactly two months to the date when the chinese epicenter of wuhan went into lockdown and life is definitely still not back to normal things have improved for example, china reported zero home grown cases cases infeked within the country today. Also some of the schools in the northwestern part or southwestern provens have resumed classes. Also another one is is supposed to be b resuming classes as well m shanghai is going to start lifting restrictions as of tomorrow because they have lowered their Emergency Response level. However from an economic standpoint, things are still quite mixed. Yum brands has said they see early signs of recovery. 95 of their stores are either partially or fully opened and i was at a starbucks today and you could now have two people sitting at the same table as opposed to two people sit itinga different tables so there are some signs of improvement but still even in the restaurant industry, its a lot of restaurants and businesses are closed here ill pick up there. Thanks so much for that. Now to italy, which has now reported more than 60,000 cases of the virus the most outside of china. Claudio joins us on the phone from italy the numbers of deaths in particular continue to be just absolutely devastating, but if we look over the last couple of days, is there a glimmer of hope that the pace of increase at least has temporarily fallen a little bit well, the numbers are st staggering as you were saying. 63,927 that is an immense number. But the fatalities as you were noting have declined ever so slightly on sunday and today but today, the fatalities were 602 in one day they were 651 yesterday. They were 793 on saturday. So to give you an idea that it is starting to decline and if this were to be con if i wered, that we touched our peak on saturday, which would take pressure off theres less singing from the balconies here daily appointments at 6 00 p. M. In the ooempk, which is our update time. Its when everyone is holding their breath to hear these numbers. Over the weekend, the situation got tense. Government officials were scrambling to put together more stringent measures to rein this in because that number was very, very scary over the weekend. What they did come in with were nearly draconian measures because after two weeks of a lockdown, three weeks of schools being closed, they decided to shut down all nonessential businesses that means that anybody that works in businesses that werent public administration, energy, food, pharmaceutical industry and medical can no longer work so clear ly this creates anothe big issue in terms of the economy. Also theyve hyped up fines up to 5,000 euros if youre out and should not be out. You can walk your dog, but only 200 meters, so they are stepped it up to make it clear this curve needs to flatten back to the economy. Companies like sba and that produces eye wear are no longer producing. Neither are the fashion groups so its really going to take a, you know, take a hit on the economy. Claudia, thank you so much for that update and please stay safe weve got just under half an hour left of the session down 4. 3 . Over to tyler. Thank you very much here are three things droifing the action this hour futures traded limit down overnight but a serious of massive moves from the fed included an open ended Asset Purchase Program sent stocks higher but a lack of the stimulus deal in washington pushed the major averages back down, a vote failed and as new york becomes the epicenter of the outbreak in america, more states are taking strict measures to keep residents at home including michigan, massachusetts, those among them. Sara all right, dow down more than 860 points lets get an update with sue thank you very much and good afternoon, everybody. Were going to start with an update on the global numbers there are now more than 367,000 confirmed cases worldwide. The outbreak continues to accelerate in the americas worst hit is new york state while in italy as claudia mentioned, the number of new cases fell for a second day in a row. The global death toll is now above 16,000 approximately 13. 5,000 americans overseas have contacted the state department for help in gets back to the u. S the state Department Says it has helped about 5,000 americans returned its working to get thousands more home in the upcoming weeks. Rhode island delaying its primary election until june 2nd. The government wants most voting to happen by mail and ontario is shutting down all nonessential businesses the shutdown begins tuesday at 11 59 p. M. It will last for at least 14 days you are up to date and as always for more on the coronavirus coverage that we have here at cnbc, head to cnbc. Com wilf, back downtown to you zbl sue, thank you very much that now a slew of retailers making the decision to draw down their revolving credit lines i amidst coronavirus pressures. Courtney reagan is following that for us. So by my count, some 30,000 Retail Stores are closed that means no cash flow is coming in, but retailers still have to pay those bills. So you couple no cash flow with the uncertainty for how long is this going to go on and youve got almost 20 retailers tapping into revolving lines of credit in the last couple of days what does that mean . A rerovelling line of credit effectively is a loan thats available should it be needed from a Financial Institution so if a retailer taps into it, is that bad not necessarily, but like many things, it depends on the circumstance in some cases, it may be to add a cash pad tog a Balance Sheet thats stable. That would likely be the case with a best buy or tjx here but then theres other scenarios where without this line of credit, they wouldnt be able to pay the bills. Names like j. Jill a retailer that was already in disstress before the coronavirus outbreak courtney thanks so much for that i mean its really fascinating story. Theres been a lot of focus not just for Companies Like yours, but also for the banks that are providing the credit lines mikes with us as well might have a view on what it means for the banks. I guess the big question that needs to be answered is if these are precautionary moves by companies to draw down their credit lines, then what do those companies then do with the cash . They just deposit it straight back in the bank banks and if that is the case, then it doesnt actually affect the bank easterly quidty and they start to earn a fee on that money. Now cloearly thats the positiv spin the back version of events is they draw down these lines and the Company Needs to cash, they spend it and for whatever reason, if that company then struggles in the future, it becomes a bad loan but if these are just precautionary measures from companies, and people are getting worried about what this means for a run on bank liquidity, perhaps those fears are overdone if those Companies Just redeposit it back in the bank. Sure. Right. Exactly. For liquidity purpose, yes, although drawing down the line puts an b additional claim on the banks capital at some level, but youre right. Its not something where its draining away from the system. I think it still comes down with what the market is deal wg, which is if this is relatively shortterm, if these are just conservative measures to make sure we kind of husband our cash until we get to the other side and its not long from now, then its all fine. Its reversible and you say, its not cash down the drain if not, if this is going to be needed and by the way, im sure theres some retailers who have not cut their dividend yet who are hanging on to these cash balances so i dont think from a market wide perspective, its cash being put to great use, but it isnt necessarily an adverse scenario town the road if this this doesnt last too long all right, guys, 25 minutes left of trade. We are headinging south again on the markets near session lows, down almost 900 points up next, the fed taking more action to support the markets today amid coronavirus concerns. Goldman sachs head of Investment Grade bonds joins us and later, well hear from the ceo of Quest Diagnostics, how his company is trying to expand virus testing. Well be right back. Dont get mad. Get e trade, dawg. But when allergies attack,f any the excitement fades. 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Welcome back the fed making aggressive moves to help the economy get back on its feet including buying Investment Grade corporate debt for the first time joining us now is johnny fine, head of americas Investment Grade bonds at Goldman Sachs thanks for joining us. I guess the first question is how bad did things get in the Investment Grade bond market in terms of stresses and ill liquidity and have the feds actions successfully addressed that thanks for having me on great to be speaking to you again. Our market has actually function ued quite well over the course of the last several weeks so even last week when the markets were in little bit more stressed scenario, we saw 62. 7 billion of Investment Grade debt crash thats the fourth week weve ever seen. Today we were by the fed announcement that we were pricing out of reissued debt today. This is really unprecedented action by the fed. Were seeing them coming in and make announcements that will Investment Grade credit that the crisis did not result in there was clearly a shortterm bullying the market had in the eck quity and credit market. I think a lot of that has steadied in credit markets even though theyre now declined into the close. More sense of whats actually happening. Who are the buyers and who are the sellers right now. So, over the course of the last couple of weeks, what youve seen is liquidation for mutual funds youve seen some pressure from the etfs and youve seen deleveraging going on broadly in fixed income Asset Classes thats amounted to pressure on shorts today to Investment Grade credit as you saw what happened in the commercial paper markets. You saw credit in five years in stocks and really steepen up and as a result, result in a number of inverted credit curves. So with the fed coming in now that can either by debt from corporations or invest in secondary market by buying Corporate Bonds or etfs. Again, they never did see the b financial crisis so i think its a very powerful announcement its a small improvement and its taken any number of bazookas over the could you rephrase the last couple of weeks from the fed to get us to this small improvement whats the risk that it goes back to being fairly negative outlook fairly soon or o different problem the sub Investment Grade debt hasnt been addressed and well have to see a separate bazooka in a couple of days time one of the things thats important to bear in mind is the distance weve traveled in terms of spread widening happen ng such a short period of time if we magnify how the market moves feel, if you compare and contrast the financial crisis in 2008, we really saw the first signs of it being stresses in the system as far back as february 2007 we ran for the next 18 months or so into what was the key of the financial crisis in 2008 the moves we have in just the last few weeks, the spread wi widening, weve moved so far so quickly. That it feels as though markets are more than what they have if you look at the reviews that are getting done and financing rating and companies are able to achieve, when youre on a historical basis, not a bad time to be going out and raisinging lar large sum us of corporate debt. Thats what many of the Largest Companies in america have been doing in the last couple of weeks. Thank you johnny fine from golden sax. Well continue to check in with you. This is the last commercial break we are going to take before the close though. 15 minutes left of trade up next, uninterrupted coverage of trade dow down more than 700 points infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. For a prospectus containing this information. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Under 13 minutes left. Now in the closing bell market zone commercial free coverage of all the action going into close. Mike here to break down these crucial moments of the trading day and today, weve got citys chief strategist, tobias, on the phone with us as well. Lets kick it off with the broader markets. Stocks remain under pressure david tepper calling in earlier, said he is cautiously buying stocks here. Heres what he said when asked whether hes putting money into tech right now im nibbling there and a little bit of health care today. Off the rules and such but mostlye iing in the tech sort o stuff. Also buying some junk loans and today. You know we do a lot of bonds. So were doing some of that today. Some bank debt so yeah, were doing, we are nibbling no question about it tobias, are you advising your clients to start nibbling . Not quite yet weve been a little bit more on the sidelines. Weve been watching sentiment in particular it is fatding and panic euphoria is getting closer to our panic line, but not there yet. Investors have been trying to buy the bottom theyve been trying to do the anybo nibbling maybe todays action is is kind of pushing them with towards that level mike, with the s p 500 down again today 3. 7 , its down 34ish, 35ish percent from it recent high on february 19th, it doesnt feel like anybodys doing any nibbling, but there are some individual winners out there and some stocks that people have been trying to pick up over the last couple of days. For sure. I do think nibbling is probably this is what it looks like in the sense that a the urgency is from the sellers the folks who say this is now a down trend im going to lean on it until it stops working where as youre a patient buyer, youve had cash, you realize theres no real, theres no real odds on bet to be had to pick the absolute bottom and go all in at any one moment so i think the nibbling and give and take is what happens around this stage. Also realize that a, the first 15 rally off a panic low is not necessarily changing the trend for the better, but also if it is a real bottom at some point down the road, you can miss the first 10 and still be in okay shape because it would then probably recover more from there so i think the patience is buy sers a feature of these bear phases but big cap tech, its outperforming now. Certain bio tech and health care is working theres selectivity thats working now. Its a net positive unless like tobias says, youre waiting for that moment of outright capitulation which hasnt fully registered yet we just improve d in the las ten minutes. Down only 600 points we were down 900 points just nine minutes left of trade National Economic counsel director, larry dkudlow doublin down on his investors to buy the dip. Here he is calling in earlier today. If youre a longterm investor, i would bet on america and i would stay in the market and i might want to buy. Youve got a 30 down. Weve been through these things before, kelly. 1987 2008 i think its the market becomes more attractive. I thought it was a really interesting interview early. Kelly pushed him hard and kudos to her, but kudos to larry kudlow for coming on as well on his key comment a few weeks back that we contained coronavirus airtight he said the facts have changed and im only as good as the facts, but clearly, mike, we discussed so often about when you try and time this big dip were in at the moment and when you can have a massive difference on your longterm returns and his prior call was at levels much, much higher than were at now for sure. Part of that is exacerbated by the sheer steepness of this decline. If youre two weeks early, youre too early in terms of percentage the its unforgiving in that sense. Were 25 down month to date its only happened a couple of times. You did get to the point where the market exhausted the selling and rally, but it wasnt the ultimate low so i think you have to have these multiple observations in your head as you think about whats going on here and the fact its been so fast that were down this much means we havent had time to really sort out what metrics were looking at how we can handicap when this nasty economic downturn is even in full effect, let alone when its going to come back. I think its dicesy when you care b about timing, but very, very longterm, much lower prices help you. So tobias w that in mind, if youre a longterm investor and even if you say were not quite there yet as far as the bottom, if you want to be positioned for r a rebound, where would you be doing that which kind of stocks which industries there are a couple of ways of thinking iing about it you can look at the beaten down areas. Chip stocks. Banks, certainly the ones that you believe will survive and the travel, tourism, hospitality but youve got to be somewhat careful because some of these Companies Might not make it to the other side but those beaten up guys when the market recovers will bounce back like coileded springs this is what happened to the banks in 2009 to 2010. The dot comes in late 2002 and 2003 if you dont really have that kind of stomach and i think thats the right way the describe it, you might be looking at things Like Health Care for three different reasons. Like health care, theyre part of the solution for coronavirus. Two, as Bernie Sanders has kind of diminished in terms of his probably probableties of him becoming the democratic nominee and then thirdly, you know, after having been so effective its going to be hard even for the d. C. Populous to be up on him well some of those hard hit names are bouncing back like the cruise lines today booingd as well one of the few winners in the session. Phil lebeau with some details there. There are a couple of reasons boeing is bouncing back. One could be that goldman came out and said this is a company you want to buy. Theres also the expectation that that 60 billion theyre looking for from the federal government will come through now the company did suspend production in the seattle area saying that will kick in on wednesday. That means where they build the dream liner, that will stop production on wednesday. Last week on friday, late in the day, they suspended the dif den and stock buyback programs you also had the ceo saying hes going to forgo his salary this year and again, theyre pushing for a 60 billion government bailout they say is not just for them, but to their suppliers and the entire Aviation Industry ecosystem. Speaking of that, take a look at shares of ge today, they said they will lay off 10 of its u. S. Workers. Also furloughing about half of their mro employees. The people who work on maintenance, repair, the oversight of all of the ge aviation engines that are in service around the world and guy, a lot of people sit here and say yeah, the airlines will be ordering fewer planes so ge wont be shipping as many engines. Theres also the possibility that a number of airlines will be prking thearking their planee gets a lot of Service Revenue from those planes in service if fewer are in service, then theres the potential it could weigh on revenue guys, back to you. Thanks very much for that with under four minutes left, the dow is down less than 2 hotel stocks remain under a lot of pressure as hilton furloughs thousands of peloemployees. Hilton and hyatt joining marriott in furloughing thousands of Hotel Employees across the industry. 4 Million Hotel jobs have been eliminated already or on the verge of being lost in the next four weeks as seattle, San Francisco and boston have seen occupancy rates dip below 20 , some encouraging news cvs health says the furloughed workers from hilt and marriott will fill new job openings to work in distribution and delivery this level of coordination across different sectors well see if more work eers can fill those jobs as we continue to see the furloughs come in from the major hotel operators. Absolutely a good sign. Thank you. About two minutes, little over two minutes left of trade. Mike, what are you seeing in the market internals today its negative but not necessarily as extreme as weve seen some days. If you look at up versus down volume, its close o 75 to the down. Outperforming high yield debt and thats a reversal because recently, its Investment Grade. Thats a stressed area its reseeding because the market isnt quite as sears as it was a couple of weeks ago a 65 vix says its going to move more than 4 a day so its slowly bleeding lower now. I guess the other indicator thats encouraging though not hugely pronounced is a slightly softer dollar and treasury yields coming down a bit right, so exactly again, i would almost put those in the category of where the feds direct effectiveness is being felt where as with equitieses, its still just redeem them for cash because we have such an opaque outlook, but thats right. Definitely a shift from time of very high stress from both those areas in the last week or two. We have just over a minute left until the market closes and just want to check you in on the action the nasdaq is is in fact positive with 59 seconds to go just turning positive towards the end of this session. The s p and dow have about equally improve nd the final hour of trade. The s p only down 2. 5 the dow only down 2. 4 or 500 or so we lock at the sector performance, we have got one just about in the green. Thats Consumer Discretionary. Communications Services Also flirting with going president oba obamative as we approach the positive the worst sectors, the two that have suffered the most financials and energy. Also utilities down, which has been one of the better hold up sectors. Within b financials, different performance. Goldman sachs, down 2 citigroup, bank of america down 7 so there again is some differentiation. The dollar down, but thats mainly against the euro where as its stronger against the yen and the pound. As we approach the close, we are down 2. 9 on the s p 500 600 points or so on the dow. Sara, over to you. Welcome back looks like weve got a nice little rally into the close. Theres the dow finishing down still sharply. 3. 12 . Thats a loss of about 600 points, though it was down more than 900 at the lows of the day. S p 500. Going to go out with a decline of just about 3 those Consumer Discretionary stocks held up all day and closed in positive territory the nasdaq dipped lower just into the close it had held up the best of the big three and was actually positive with just minutes to go looks like were going to go out with a decline of about a third of 1 so more declines after the first week of the final crisis it was also lower and it was down little less than the others down 1. 13 there was some action in the beaten down groups Like Airlines and cruise ships chip stocks to buy perhaps a good sign. Joining us to talk b about the market today is liz young, director of Market Strategy and still with us via phone, citigroup strategist, tobias first to you, mike, the feds major unprecedented actions getting into the Corporate Bond market and other certain ly what we heard helped kind of calm the bond market which should be taken as a good sign what did you see in the overall stock market yeah, i think thats the fair way to put it. I think the fed at least is perhaps insulated the markets from one extreme negative free fall type scenario where variety parts have locked up you have financial conditions tightened ever more so thats been eased up. So i think you can say if that was on your probability spectrum, you can nudge it off, but youre still faced with the big, wide gulf of what we dont know about exactly how this economy is going to proceed from here, but you know, in terms of f the actual market dynamics, a lot of kind of jumping, owe oyoyoing around, i think theres a lot of attention on what this support package is going to look like out of congress and it just seems to me youre starting to see more two way action underneath the surface of the index. If there could be a day where youre like down 4 much of the day and it didnt seem that bad, maybe were just getting used to it but it did seem like that for parts of the afternoon the dow closing 37 from its record high a few weeks back is that enough of a fall for you to start to put money to work in a meaningful way i think right now if you look at it in the context of history, if you have a drawdown that doesnt include a recession, were right about in that range. If you have a draw down that includes a a recession, we probably have a little further to go and the other issue with the drawdown that includes a recession is it usually takes a longer time to get out of that so i think were hitting that bottoming phase but bottoming is a process. And even if were at the beginning of that process, this is probably going to go on for a few weeks still before we really fi find a reasonable bottom i think that valuations are more attractive certainly in areas that are going to be continue to be concerns after this. Its okay to start looking for opportunities, but the most important thing to remember is how long is your time horizon and how high is your threshold for pain because theres a good chance we continue to chop around and we might see more downside from here so a key point during todays session, tobias, was when the procedural vote failed on the stimulus so they werent able to make traction in getting democrats on board with that stimulus bill. How important is that for the markets and as far as the fine print there, what do you think investors want to see or what would cheer up investors i think they want to see some progress on the health care side that we dont yoef whem our systems and theres Movement Towards a vaccine. We also want to see both fiscal and monetary stimulus are there in timely fashion. I to understand some of the debates between the republicans and democrats on oversight issues, on money thats going to go out there there are legitimate concerns that theres some concern theres too much discretionary with treasury in terms of how they dole out the money. Those are legitimate theyll get to a conclusion. What were worried about is that if youre kind of going the tarm method where the market goes lower until they patss the legislation after rejecting initial phases the market is strugging with that, wu i think theres an understanding amongst not just investors, but also legislateor that somethings got to be done quickly. Tobias, again, todays market financials and energy, the two worst performing sectors on the s p 500. Theyve been the two worst throughout this sell off if and when we see that bill pass in congress, do you think theyre the two sectors that will bounce the most i think they have the opportunity to bounce the most the problem with energy is its not just the coronavirus issues that are kind of weighing on it, but also opec, the agreement failure and will they get back to the table will they be able to get a better price on oil. On the financial, its a concern of a, how many of these companies, liz was suggesting concerns at the end and might have to take slow loss provisions they may not use those but banks are going to have to take them for some companies that go delinquent and supported by the legislation, get some money from there and be able to pay back those banks but i think thats part of the concern out there. Bob has a deep dive on the biggest moves of todays session for us hey, bob another big volatility. Thousand point swing in the dow. 100 points in the s p 500. Couple of highlights ugly day for those aerospace companies. Ge aviation laying off 10 m hon honey well, lockheed, down big boeing oddly not retail continued to get hit as the Stores Remain closed in a big part of the country. Kohls is seeing the gap Urban Outfitters all down in the double digits. Usually in the teens banks, another really tough day for them many of them are at four, five, sixyear lows now, but a tough day for all the regional banks in particular. It was a very big day for Corporate Bond etfs. The feds buying not just unlimited amounts of treasuries and mortgagebacked securities, theyre buying Corporate Bonds and etfs it had a big up day after being down almost 25 in the ls month. Thats a big change here and finally, tech did pretty well. Though apple got a reduction talk about much constrained consumer demand. About 10 to 15 of the iphone sales are online with the Stores Closed thats a major issue although i would note semiconductors are up for the most part today. Finally, first day of electronic trading in the nyse. Of course the floor is closed. I spoke to them all throughout the day. They said it had gone very smoothly at least thats a blessing on a down 3 day. At least guys, we didnt hit any Circuit Breakers today back to you. True. Bob pisani, thank you. Also another wild day in the bond market. Rick santelli with the details bob just laid out another huge step for the fed in this market. Is it working . Well ill tell you the fed is definitely thrown everything including the kitchen sink and a var very large sink. But just as a market observer, were seeing some movement but really so much is going on under the surface. Look at a month to date of tens. Here we are at 75 basis points down ten on the session. Up 20 from the all time low close basically 54 hyg. Lqd. The feds coming in. I think its a bad idea buying corporates, but i get it hyg is at the lowest level in suh years even though Investment Grade was up 7 plus percent today. Finally one week of the dollar index. Still within striking distance of 103 this one remains super firm. Theres going to be ongoing doll already funding issues back to you. Ill take it, rick santelli, thank you very much. Liz young, how much are you looking to the bond market right now . The currency market for signs of stress as it relates to whats going to play out next for stocks its a great question and back to a point mike made at the top of the show or the top of the hour, we do have that as a probability, that credit crisis and some of that turning into what would bake into the real economy. The fed backstopping this then purchasing Corporate Bonds is certain ly a huge buffer on that crisis b probability however, i still think the most important piece of information we need is is how long this lasts because if it lasts too long then were going to look at that as a higher and higher probablity moving forward through the year so the things that we really want to see once we get that combination of monetary and fiscal policy, we want to see the market calm down a little bit and its funny so say that im excited we didnt have a 10 move in one direction or the other today, but we want to see that volatility come down, those credit spreads come in and we want to see the disease spikes at some point late spring hopefully. If those things start to fall in place, it becomes a lore and lower b probability that we have that credit crisis and we can start to recover in the second half of the year tobias, our typical valuation multiples analysis sort of out of the window at the moment. If so, how do you assess when we have fallen far enough such that stocks are chief so to put it . You look at going back 80 years and what is the best place to bought the markets would have been under eight times earnings. The second best place is 14, 16 times and their kind of in that area at the low end of that and the 14 level and what suggested is a good time to buy markets. The only time with valuation is its not the best timing tool in that regard, you know, were not going to get every piece of information lined up perfectly to tell us okay, now theres this time to buy and were unlikely to see what i often refer to as the kre senn doe of capitulation we dont get these wonderful ringing of bells at the top of the bottom but were starting again we might be starting to put things in place that suggest a bottom can be found. Thats a lot different than two weeks ago. Thank you very much for joining us still to come, the ceo of Quest Diagnostics will join us to discuss how his company is working with other labs around the country to expand coronavirus Testing Capacity. Were back in 90 seconds a golf course is designed to be difficult. To challenge your thinking and test your execution. But great minds are driven to seek out the complex. They see what others dont, from an angle others wont take. They learn that embracing those challenges is what sets them apart. I am justin rose, and we are morgan stanley. We see hat emerson,kthroughs when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Outbaso now, you can enjoy great steaks here. Big game platters here. And date night essentials here. Get free delivery when you order now through outback. Com outback steakhouse. Diagnostic testing lags behind with many able to get tested or waiting hours for one being far too long this companys race to find treatment for the virus. Joining us with more, Senior Writer at stat news as well as or own meg terrell whats your take on how close were getting if at all to some of these potential treatments provided of course they are indeed effective treatments . I dont know if weve got matthew either or meg at the moment so we will try and get both of those up to speed but sara of course is still with me. Meg is now good as well. Meg joins us just the question i was putting to matthew there about these potential treatments we discussed it a bit last hour. How close are we to realistically having something that is effective and can be used well, we should get data in the next month in april. Thats the soonest were expected to get data on remdesivir from some Clinical Trials being run in china and also from some u. S. Trials by regeneron on their existing Rheumatoid Arthritis drug. That unfortunately isnt rolling very quickly i say unfortunately because its being used for very severe patients who are hospitalized for covid19 the company told me today because so many people are being hospitalized at that severe level, the trial isnt rolling very fast and that means we should see data in mid to late april. Matthew, whats the latest we can break down in terms of the testing here in the u. S. How quickly have we caught up you losing me again work to be done, yes, to matthew. Did you hear that . Do you want to call im not sure weve got matthew yet either so meg, continue with you in terms of that on the testing, were going to discuss a crucial testing ceo with quest shortly, but update us on where we are and the amount of catch up weve played to what the u. S. Had. We are hearing from more and more Companies Getting this emergency use authorization from the fda, were about to hear from quest they say their capacity is at 25,000 tests per day hoping to get toup 30,000 per day by the end of the week however, we are still nowhere near the Testing Capacity that weve seen in other countries like south korea and singapore, which of course is a smaller count country, but weve seen those places be able the control their outbreaks on a level that we have not been able to do and that we have not seen in europe and what a will the of experts say is those countries had testing in place incredibly quickly and they were able to roll it out to as many people as possible so that they really knew who was sick and they were test iing people who had come into contact with people who were sick and i ice lasolate ining those eem pee thats the kind of response the w. H. O. Says people need to be taking a lot of people here in the u. S. Are worried as were seeing the testing guideline, people who would be hospitalized and whose treatment course would be changed because of the uss capacity theyre getting pretty nervous about the fact we cant test everybody here well lets continue that discussion, meg, stay with us if you would. The American Enterprise institute found that as of march 16th, the United States is able to test over 3600 patients per day. Aei expecting tesing capacity to increase to over 100,000 patients per day by the end of the month . Is that even enough . Quests ceo joinsing us. How many tests are you doing now per day and how many are necessary in this country . Thanks for having us and right now, were actually doing 25,000 per day weve made tremendous progress since we first launched the test, march 9th, so not that long ago and were still working on some improvements we can expand our capacity beyond the 25,000 and we believe by the end of the week, well be close to 30,000 tests per day, so say about 200,000 per week. And how quickly if someone gets tested, do you get them the results and why do some people have to wait two to three days and others get their results within hours so as we brought up these test, we brought it up first on march 9th, we brought up one facility, which was a Laboratory Developed test the first facility is in california and a couple of days after that First Laboratory was brought up, we moved it out to virginia and now we have close to a dozen facilities with a Testing Capacity so what you saw in some of the long er turn around time ss tha f the individual got a test and we had to run it to california, it took a longer time to get it than it would today. I know youre not the only company out there thats massively ramping up its capability for testing, but i know youre in touch with some of your peers. How long do you think it will be before the u. S. Has an abundant Testing Capacity well you look at what i just said were getting close to 30,000 tests per day. Were one of a number of large clinical laboratories, commercial laboratories in this country. And so you could think about us being a significant part, but not the entire part then also you have a number of region alpha silties. You have hospital facilities and still federal and state facilities so i think by the end of this week, were going to have a significantly more Testing Capacity in this country than we had only a week or so ago. Steve, this is meg. We are hearing from people who are lobbying the commercial Testing Industry for coming on board as quickly as you have after we saw those initial snafus with the government set up testing but one thing were hearing now that seems really disturbing is that there isnt enough supply to run the tests in many places can you tell us about what youre hearing about this and you know what really is holding up being able to process some of the tests . So we could have Testing Capacity, as i said, but we have to have to specimens collected what weve been working on is to make sure the supplies, the swabs, is in the right location. Actually within the could you rephrase the last several days, we have shipped out thousands of these tests. The course of the last week and a half, weve shipped out 500,000 swab specimen collection kits to different organizations. They could be hospitals, physicians but also weve put these in the hands of these drive through centers youre see iing, so that is critical. To make sure those specimen collections are in the hands of those in collections so is it just the swabs that are in shortage or is it also the chemical reagents . What are the pressure points youre seeing now and how do we get that fixed yeah, so were keeping up the reiagents are keeping up wih capacity right now, so we feel good about that. We feel we can get to that level that i talk ed about 30,000 tests per day and keep it running given the projections we have from our suppliers to do that so, you know, i talked to my friend, a doctor in california and theyre only testing people in who theyre admit iting into the hospital who should be tested at this point . Right now, theres new guidelines that came out from hss and basically, theres a prioritization of who should get tested we want to focus first on patients what are in beds. We also want to focus on sifr tommatic Health Care Workers then symptomatic individuals at risk those should be the top priority so, actually launching tomorrow, the capability that we can identify those patients in beds. Theyll be very helpful to have those hospitals filling up quickly. Whether that patients thats in the ped they suspect has coronavirus is actually negative or positive, so that will be rolled out tomorrow by us. Steve, its good to hear that those sorts of things are the priorities, but is there a secondary market trading as it were for these tests to get tested where perhaps money or access can get you tested before others are you aware of that taking place . Zpl right. Right now, we are prioritizing on what i just said the patients, Health Care Workers. Symptommatic patients and by and large, those are the individuals getting the specimens collected by the centers thats where we see the primary coming from. Steve, are you working on any tests for immunity which it seems to me would beint an economy trying to get back to work yes, were working on the ability for us to see the antibodies through a blood test. Thats very important for us to take the next step so we have a team of scientists look iing at that as we speak. Wow when can we expect some word on when that would be available hard to predict weve seen some cent papers that have been published. Were collaborating on this throughout the industry. And you know, were hopeful but cant predict how long it will take for us to get a test to the marketplace. Steve, please keep us posted and thank you for joining us thank you very much thank you for having us. Quest diagnostics, also thank you to meg up next, find out whether stocks are starting to look cheap amid the market massive, the massive market sell off. S p down about 34 from its record highs plus former bank of england governor reacts to the feds pledge of open ended asset purchases to help support the market and economy you can also watch or listen to us live or on the go our coverage is back after a quick break. Yes im stuck in the middle with you, no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its the most open and secure public cloud for business. It can manage all your apps and data from anywhere. So it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. Without getting in your way. Edward jones is itswell aware of that. Et. Which is why were ready to listen. And ready to help you find opportunity. So. Lets talk. Edward jones. Its time for investing to feel individual. Breaking news on twitter julia. The company is withdrawing its revenue and operating income guidance for the First Quarter of 2020. Also withdrawing its guidance for expenses, head count for the full year. That is of course due to the coronavirus pandemic the company also says it expects its First Quarter revenue to be down slight sli on a year over year basis and expects to incur an operating loss due to reduced expenses not fullinging off setting the revenue impact now of course twit ter is primarily brand advertising. It doesnt have some of the advantages that facebook and snap have more of. The company does have one bright spot saying that improvements in global conversation theyre seeing additional strength in total monotizable daily active users, so greater engagement among their user base but still they warn about they can no l g longer stand by their guidance they say well hear more about the First Quarter in their earnings coming up on april 30th back to you. Thank you so much for that. Still to come here on cnbc, former bank of england mayor will join us to see if theyve done enough to help avoid a global recession life isnt a straight line. And sometimes, you can find yourself heading in a new direction. But when youre with fidelity, a partner who makes sure every step is clear, theres nothing to stop you from moving forward. A partner who makes sure every step is clear, wean air force veteran made of doing whats right,. Not whats easy. So when a hailstorm hit, usaa reached out before he could even inspect the damage. Thats how you do it right. Usaa insurance is made just the way martins family needs it with hasslefree claims, he got paid before his neighbor even got started. Because doing right by our members, thats whats right. Usaa. What youre made of, were made for. Usaa 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. We see eat emerson,mulating when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Lets get to mike now for a look at the damage done to valuations hey, mike. Hi. Quite a bit of damage in a pretty short amount of time. If you look at a ten year chart of trailing price multiples, the earnings over the last four quarters, it is down at or below 15 now hasnt spent a lot of time in this zone in the last five years as you can see late 2018 did dip down nfor a while. This is trailing earnings. We know on a forward going basis, next few quarters are going to be a mess in terms of s p. Goldman today saying they could go down 20, 30 for 2020 but the question is what is it mean that thats the baseline. The last four weeks, the four quarters are the baseline earnings power of the s p 500. The question is how long it takes to get back up there you would never say the market is outright cheap. We are not at a bedrock core value for stocks and we did come off relatively elevated valuations, but its come back into the zone where longterm inves r tors arent going to be penalized so badly unless this is a very, very long recession if youre buying at or below the current level. Okay, mike. Thank you very much. For that now the fed launch iing new programs today in an effort to combat the Economic Impact from the coronavirus outbreak initiatives include an open ended commitment to continue buying assets, purchasing Corporate Bonds. Will moves like this be enough to ease the economic fallout joining us on the phone is mervnn king, former bank of england. Oversaw the financial crisis lord king, thanks so much for join iing us good afternoon, wilf. I wanted to start with the reference to the financial crisis given youre at the he will at the bank of england at the peak of it clearly, theres a different cause to this crisis but are there similarities and which is the bigger threat to Economic Growth i think there are two its a global crisis, that makes it much more difficult for us to pretend that the rest of the world can help one country in trouble and secondly, what will happen in the next few months will depend critically on peoples behavior. Just as it was difficult to predict which funds would be withdrawn from banks and Financial Institutions in the financial crisis, so now an awful lot will depend on the behavior of people, whether they aby the advice theyve been given by governments and how companies will respond to the enormous uncertainty that lies ahead. Is it a bigger threat to the outlook to the economy than 2008 and 2009 i think its very different it was a lot easier to handle the crisis in 2008 because we knew what we were up against and once the Banking System had been recapitalized, people had come to terms with the fact that that was what was necessary. Then the crisis abate d and the banking crisis at least then went away. I think this is much more difficult because we are in a situation where for very good reasons of combatting the health crisis, and reducing the number of fatalities, governments around the world are deliberately pushing the World Economy down this will undoubtedly be a very major factor in peoples decisions looking ahead. It is vital therefore i think the governments do two things at present. One is immediately to deal with the cash flow problems that result from peoples cash takings disappearing overnight that is the sort of measure from that fed can help with but the second measure is to assure people that there will be compensation from the government to compensate businesses both marlarge and small and the selfemployeed for the fact that their incomes have simply fallen away and it is vital that governments put that in place in principle as soon as possible. Even if they may take a little time to work out the details of how it would be duone. Otherwise, youll find massive layoffs, falls in spending, which will exacerbate the problems we see now. Lord king, we have seen all sorts of actions from governments and Central Banks around the world i think you could legit may will the say they have reached this sort of whatever it takes mantra and have done so very quickly. Have you been surprised how quickly Central Banks have responded versus the sovereign debt crisis 2010 to 12 or 2008 and 2009 so i think one of the important things to recognize here is that each country on its own realizes its facing a National Crisis and thats made it much easier for governments to respond to its own crisis than to deal with issues that span across nations. The euro area was face iing a vy big challenge and governments are not finding it easy to come together to find a solution. The nation state here is acting quickly to deal with its own citizens im not surprised that Central Banks are v responded so quickly because i think the lessons of the financial crisis were clear and i think Central Banks have a history of a track record of cooperating together and of being willing to act quickly add and speedily many of the facilities that are being opened up are things that were created in the First Financial crisis so weve learned from the past and built on it. I think the bigger challenge now is the government. Central banks cannot make promises of compensation from the collective citizenry to individual businesses. But that is what is necessary now. I think the idea that we would just let businesses fail because theyre face iing a serious sho now which has been imposed on them to deal with the crisis of the coronavirus and was not fault of these businesses that they seem now able to be incapable of continuing without Government Support that support is crucial. It can be withdrawn when the epidemic disappears and they can go back to the market economy as usual but were not that that position now its sara, lord king. Thanks for joining us. Right now, its all b about a fix. Its responding to crisis. Its throw everything at it, but im just wondering with the fed throwing its arsenal behind the funding markets and credit markets and zero interest rates, how do you think about the longterm impact of some of these policies when we do hopefully get back to normal so again, id like to take it in two steps one is the credit facilities, the lending supported by Central Banks and the other is the solvency business. The compensation which governments i think need to offer. On the first, Central Banks will be able to reverse these policies to very quickly when it seems appropriate to do so and i think that the epidemic will go away at some point then Central Banks will be able quickly to reverse some of the measures theyve put in place. I think on the compensation front, its more difficult because unless we put these measures in place now, i think we may have a sharply reduced business sector to support the long run of the economy and i think the immediate need is for governments to act as purchaser of last resort we dont just need credit. We need more than that and if a government is a purchaser of last resort, it can say to businesses, look, these are the takings you expected to receive over the next few months and we will ensure that the government provides you with those takings. At least some proportion of them maybe 80 or 90 so you dont have to lay off workers. Indeed a condition of the grants would be they not lay off workers and that people can maintain their jobs even though theyre confined to their homes at present if we dont do that, then i think we could see serious long run damage to the economy. But i think whatever measures are put in place, it will be relatively straightforward to unwind them. What will be more difficult is if we allow this to cause serious darnlg now and to try to repairit later may be difficult. There will be changes in the economy looking ahead. We have no idea how far International Travel will continue in the way that it did in the past. We dont know whether peoples travel preferences will be the same methods of working may change and these will have consequences for businesses and some will disappear and others will be created. But this is not the moment to allow that to happen this is the time to support current businesses then once the epidemic is over then we can let the market economy sort out the allocation resources among different parts of the economy in the usual way Boris Johnson has put the u. K. Into a lockdown include in by the way, banning gattings of more than two people unless you live with them amongst other bullet points to that nationwide lockdown i wondered what your reaction to that was and as ive said, a follow up part of that question, the pound has been in free fall this year. Down 13 below 1. 15 against the dollar. Is there a risk, whether because of this lockdown or other fakih r tors, that it sort of slipped into free fall and falls even further from where it already has . Im not going to speculate on where any asset price is going to go. None of us really know that. I think the government has been very concerned about the advice it gave thats very clear and strong that people shouldnt xwo outdoors and congregate with others but maintain social distance of no more than two was flaunted by gatherings by people in the lovely and unusual sunshine of london decided theyd like to be outdoors these measures will help reduce the transmission of the virus in the short run. What we dont know is is really two very important things. One is how long will people be able or willing to put up with these extraordinary restrictions and will they work effectively how will people get food for example, will they be able to go to shops i have not seen the precise statement he made in the last few minutes. This interview coincided with his statement, but thats one big question how will people respond and react to these measures. How long can they seriously be maintained the second question is we dont really know what the exit str strategy is from this. Will it be the case that if we are successful in containing the virus in the short run, the population will be then exposed to a second or third wave down the roadonce restrictions come to an end. The exit route from the epidemic really that we can be confident will work is essentially a vaccine and that sadly seems further away than most of us are able to think at this stage. Lord king, thank you so much for joining us we appreciate it as always. Should mention of course as well with everyone at home with plenty of time on their hands looking for a book to read, lord king is out with a new one called radical uncertainty, Decision Making beyond the numbers. Well worth a look at we didnt get time to discuss it with him today good luck to you and all your listeners because this is a very difficult time all right thank you very much. Still ahead, we will speak to a prominent venture capitalist b about whher etthe this market meltdown could soon spark an mma boone. Well be right back. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. I know that every time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. We sunleashing the promisegas of clean energy. At emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Zblncht ba back to sue for tt what do we know, sue more details on british Prime Minister johnsons announcement just moments ago the very stringent rules are being put in place to fight the spread of the coronavirus. Theyve been r ordered to stay home for three weeks with only a few exceptions most stores must close but theyll be able to go out for groceries, pripss and essential services the police will be enforcing the new rules. The sec is warning companies here at home to make sure theres no nder trading based on nonpublic information vofl violaing the coronavirus outbreak the sec says it is committing substantial resources to investigate possible resources to investigate possible infactions ainfraxs and french olympic officials are calling for a quick decision several countries have publicly asked for a delay. As always for more on the coronavirus coverage, you can head to cnbc. Com back down to you sue, thank you so much. Still ahead, a hiring surge. Cvs and papa johns set iting ot he oundofew employees amid the coronavirus pandemic a full rundown of some of the god news stories out there when we return. Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. Amid all the doom and gloom, were finding stories of hope and charity, as countries and individuals step up for the greater good cvs says it will award bonuses to front line employees ranges from 150 to 500 they will hire 50,000 full time and part time worker as cross the country. Papa johns is hiring too. It will bring on as many as 20,000 Restaurant Team members kwal mart and amazon have announced massive hiring sprees. They have hiked entry level wages for overtime pay for warehouse workers. City says it will give special compensation awards to more than 75,000 eligible employees worldwide. Anheuserbusch says it will be producing and distributing bottles of Hand Sanitizer in the u. S. Medical tv dramas are joining the real world efforts as well greys anatomy New Amsterdam and the good doctor among the shows donating props and supplies i guess they had the real stuff on set much of tv production in this country is also shut down. Thats true its not fully shut down but theyre not donating doctors and nurses which i was pleased to see they didnt go that far i do like that story that brings it back. The hiring, i think is great to point out. Some of those numbers incredibly big numbers. Front line numbers getting an extra pay boost if theyre having to stay out there in customer facing roles is pleasing to see. Moving on. Another volatile day for stocks. What could be in stock for tomorrow well break down the charts and have a look at what to watch out for. Closing down 3 today on the dow. Nasdaq operates among the largest markets in the world. And our Technology Powers markets from indonesia to chile. Great markets are built on a foundation of trust and integrity, forged through leading Edge Technology and a smart regulatory framework. As technology advances, regulation must keep pace to allow the markets to evolve. Today we see an opportunity to modernize regulation, to make markets more accessible to investors and entrepreneurs of all sizes. From the graduate buying her first stock, to an institution investing in thousands. The markets belong to everyone and stand as a symbol of economic advancement, social progress and limitless opportunity. Thats the tomorrow that we envision and to get there, well have to rewrite it today. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Dont get mad get e trade and start trading every time it takes care of something for us, we celebrate. How often does that. Got it. Servicenow the smarter way to workflow. We have about three or four minutes left in the show just enough time for some final thoughts clearly theres going to be a lot of focus on washington and whether congress can pass that bill will we see a slight easing of liquidity pressures. The dollar was down today. Its a move in the right direction which equity markets want to see continuing i agree, i think you have to watch the dashboard for the stresses in the system weaker dollar certainly helps. Treasuries that are well bid and continue to hear chatter that the fed is actually being successful at least so far, in trying to grease the wheels there, that would be good news as well. Company reaction is going to be huge tomorrow morning we have an exclusive interview with james quincy about what hes doing for his workers and what hes seeing from consumers and on this program tomorrow, were going to talk to larimer low, who is the ceo of cbs health, whats hes doing for his workers and how hes responding. These companies are making some realtime decisions, shifting their business and at the same time, the market has been falling sharply. I guess on the plus side of the column, you could say there was some by fur indication there were winners and losers today. It was not an all inclusive one way down side bet today. We are in what we would call preannouncement season it doesnt seem to matter, the fixation on congress will be like the trade talks theres a trade tariff deadline, and if we get the decision, the market seems to think its coming, which is some kind of a deal then you find out whats priced in and was it enough to support stocks at these levels a degree with mike on that. Its reminiscent on the trade deal are we going to have a deal or are we not going to have a trade deal the market is reacting to that i think the internal plumbing of the credit markets, the commercial paper markets, the money markets is important im looking up at the screen here boeing, home depot intel and walmart were up in the stocks. Im looking tomorrow for the debate on whether the induced coma weve put the economy in, how long we can stay with it, i think that debate is starting to catch fire a little bit. And i expect it. Finally, i want to wish my wife a happy birthday, because this is the best present shes going to get, a greeting on tv today, theres no shopping. Tyler, we all echo that as well very happy birthday to mrs. Madison. Consumer discretion. There was one positive sector on the s p and Oil Turned Around sharply to the up side in the final hour or so of trade today. It was down 5 , it ended up 5 is that a sign of some improving risk sent imt, but we dont want to move too early with that. We are pretty much out of time here, thanks for tuning in from tyler, mike, sarah, myself, have a great evening and Brian Sullivan picks things up right now. No deal. Stocks fall again. The dow dropping 582 points. Another 3 loss. The selloff coming despite more unprecedented action from the fed. The central bank throwing every single policy action it can at the dire economic situation, offering up far larger programs than anybody had ever thought possible