Transcripts For CNBC Squawk Box 20240713

Microsoft was up by about 7 if you watch this morning, dow futures are indicated up s p up by 11 and up by 55 points the treasury yield looking below where we are now the yield on the 10year last i checked weve gotten used to that 0. 8 range. 0. 7 in that area now. Andrew becky, it appears weve found a bottom we have an update on the numbers to bring to you. New york has more thans the epih more than 61,000 of those cases. New york governor made this appeal for Health Care Workers across the county to come help new york as governor of new york, i am asking Health Care Professionals across the country if you dont have a Health Care Crisis in your community, please come help us in new york now we need relief Governor Cuomo said new yorkers havent been doing well with social distancing and he implored the public to be responsible and stay home. A hospital built in central park will officially open today located in front of mount sinai hospital up in the 90s there on the east side. It holds 68 beds to help provide care for patients diagnosed with the virus. The usns comfort arrives in new york harbor to help with noncoronavirus patients. That ship has 1,000 beds and 12 operating rooms on board joe. Thank you lets get to eamon at the white house. Preparing for a fourth round of emergency Economic Relief amid the outbreak this is just days after a 2 trillion phase three plan. Eamon javers putting on some weight joins us now. Good morning to you, joe. The white house is pivoting away from the economy saying the idea of extending the social distancing guidelines out to the end of april now saying the First Priority here is focused on preserving the lives of americans so bad for the economy but that is number two on my list. Fis i want to save a lot of lives. Well get the economy back i think it will come back fast ied to go from doing a great job for three years to shutting it down it will come back rapidly. We learned a lot what will happen on capitol hill nothing immediately. Theyll be out at the house of representatives until the end of april. They are starting to talk about it nancy pelosi said shed like to bring back the state and local Tax Deduction that has hit some relatively high earners in coastal states pretty hard that is one in there and talking about aid to front line Health Care Workers, inphau structure spending giving that Interest Rates are so low and aid to states. All of this is a stu of ideas right now. Nothing is likely to happen anytime soon this will be more partisan right now. We saw the 960 vote in the senate those are rare as this goes on, it will likely get more contentious well see where it lands it is march 31st. If we are not in april, we cant get through april. I was just saying, god, i wish it was april then the days start going by did you see in virginia, the stay at home, what it extends to it extends until june 10 . June 10 june 10. We got a stay at home order in maryland yesterday go on, eamon. We got a stay at home order in maryland. It comes over the phone. It is scarey when you get the sense we are all hunkered down here riding out the month of april. It will be a tough period of time eamon, in terms of whatever this next package may look like, what kind of dollar figure do you think could possibly be on it we heard from ted cruz who said, we spent one tenth of our entire debt i do think there will be a second need for stimulus it is possible to discuss some of these things will go on longer and have a larger economic impact. Right i think you you are hearing that from some republicans on the hill saying wait a second. We just passed a 2 trillion bill lets see the need before we rush together a list of ideas of some are skeptical of nancy pelosi they are working on a wish list here i do think you got a 24 trillion u. S. Economy here and we turn it h we turned it off like a water spigot if you see Small Businesses applying for that loan, which is only authorized up to 350 billion in the current bill. They are going to have to reauthorize that up to a trillion, maybe. I dont think there is a sense we can hold off on this kind of rescuing the economy in order to reserve the figures because weve blown a huge hole in that already and the need is right now. Eamon, im kind of struck by the idea you are just getting the stay at home orders. You talk to the Health Care Professionals here, they say in new york, they hope that will peak midapril and in the weeks after that, it doesnt just go away seeing how this plays out, no better place to watch that than in congress. Is this a situation that has really hit home . How does that play out watching local politics and how that plays out in the house too. Look, i think it is hitting home we saw a report that one member of congress is diagnosed with likely diagnosed symptoms. There is a sense that this is coming closer and closer to congress there is a real question now of whether or not members of congress will be able to get back to vote given weve seen all these Flights Canceled people wont want to drive from the west coast to the east coast to get back to vote. There is a continuity of government they dont have a plan for remote voting. Theyve been considering those since september 11, 2001 and never come up with the idea. Congress has never faced the idea of its own mortality. Members are starting to feel that particularly when you look at congress, a lot of peoples are in a vulnerable age group. They are living with this too . Just to point out, joe gave you grief at the top putting on weight that was him pointing out what you were pointing out on twitter about your daughter baking up a storm. My 13yearold daughter has been on a cooking spree. She made inkred inl cookies i ate for break fast and now these incredible lemon cupcakes you know they are calling it the covid19 its like the freshman 15. Youve heard that we are all baking and eating yes we shouldnt make fun. Thats what you do. You are nesting. Thats what is happening look, this is the new reality we are all in. We are figuring this out together and we have to figure out a way to get some more exercise too we are eating our way through it i picked a bad period to start putting on pounds. A bad starting point thats the problem anyway laps around the living room did you see the sparkly things on what i tweeted those are oatmeal. My daughter got the picture to sparkle. Have you seen the video of the work outguy dancing before and then after thats me. Coming up, we are talking about some of the alternative data sources to try to quantify the impact steve will join us next. Crude prices are bouncing off those multiyear lows. Well are talk about the efforts from u. S. And russia to stabilize amid the price war that is coming up next turning to the alternatives, steve turns to what they are looking at and what it shows gauging the extend of the downturn and from the gauging bid, ill tell thau goldman lowered the forecast to minus 9 , which is about the worst ive seen. The official data lags theyve turned to this Real Time Data using city map or data to track mobility in a bunch of u. S. Cities on a real time or daily basis here it is all down as youd expect that is terrible news but it might be a positive sign for slowing the spread if we do get an upturn or when we do get an upturn, this will turn up. Morgan stanley, they are following the coronavirus data they are also looking for the mention of coronavirus in sec filings on a daily basis again, on the way up or when the turn around comes, it will be on the way down youll be able to gauge it pretty quickly then there is my favorite data they have all of these millions of searches that they track. They get hyper focused when it comes to individualtype businesses out there you can see American Interest by search of restaurant type. The relative performance, pizza doing the best chinese food the second. Italian not so good and french the worst of all we can track this on an almost daily basis here to see when these things turn. Dont get too excited. The consumer interest overall for restaurants, down 54 . Consumer interest for night life down by 69 . One of the good things about this data to help us gauge the extend and form the debate that eamon is talking about which is warrant we need the stimulus build. Ill be back at 8 30 with the work that goldman is doing theyve developed a whole series of Economic Indicators steve, you know when you do people are really excited to moderately excited, i think you need to add pizza and italian. That would put italian way up. I do. I thought about that, joe. On a more serious note, with he were talking about another stimulus p stimulus package and that we added about 10 of our total debt we are throwing everything we possibly can to try to stop this virus. Then, we are going to throw everything we possibly can to try to keep the economy running and put it in position to come back if you cut out the middleman, we are just ready to do anything to save our people and stop the virus. Thats why weve all done anything to save as many people as we can. The economy is sort of take the brunt end of it but well try to save that too. Is it that simple, steve i think it is that simple that is sort of a positive sign that we are not really arguing the political situation here one of those things where you have a fire and nobody is debating whether we are using too much water here. We could have the argument about the fed. Everybody sees the need for this i think maybe some of the details we could debate. You are right, you are going to figure out how to save peoples lives and the economy here we are in a unique position here we print the dollars if we were a country with a large foreign debt wed be having a much bigger problem. It is the exceptional position of the u. S. And World Economy that gives us the luxury to do this right now thank you the dow futures are trending towards unchanged. Oil plummeted to an 18year low hitting the lowest close since 2002 i think that tick was 19. 20 a barrel for a closer look, lets welcome our guest from ca canary oil. It has been extremely rapid you have to look at what is happening macro wise and also with the specific industry, the demand has been catastrophic for us the demand was down in february. We are looking at Something Like 20 to 25 to 28 demand in north america and europe this month. The big question is how long can that last when you are talking about another month, two months of shutdown this country i dont think much longer the problem coming up is the Storage Capacity we are looking at running out of storage for the first time in history. Prices are soaring several of the pipelines have sent letters to tell them to shot and shut production i think the storage crisis will be the next shoe to fall and likely push prices lower in the short term texas regulators have been looking to curtail production for the first time the lack of storage may be the thing that shuts them down yes the market will beat them to it. The storage rates are doubling i think we are looking at a rapid rush for Oil Companies to stop drilling. In the short term, i look for oil to fall and production numbers to fall rapidly. This is a case where the data is lagging behind that will lag behind what is happening on the ground for now. The Trump Administration has been considering intervening President Trump had a call with president putin of russia. They agreed on how important it is to see some stability on the oil prices what do you think about what the u. S. Should be doing when it comes to Foreign Relations in this i think trump should be actively trying to solve this. Without foreign oil, it will create quite a hardship for u. S. States like texas, oklahoma, north dakota, this is going to be a huge wet blanket on what we all hope will be a vshaped or a high sloping ushape effect to the economy. Using sanctions to try to get them to come to an agreement this is painful for u. S. Oil and gas. I expect someone to blink at some point in the future one of those two countries will get the other two forward for the price of oil at some point, i think. Thank you for your time well talk to you soon thank you for having me. When we come back, well tell you about some moves companies are making in response from retail furloughs to ventilator productions some of the images from the impact across america yesterday. I knew about the tremors. But when i started seeing things, i didnt know what was happening. So i kept it in. He started believing things that werent true. I knew something was wrong. But i didnt say a word. During the course of their disease around 50 of people with parkinsons may experience hallucinations or delusions. But now, doctors are prescribing nuplazid. The only fda approved medicine. Proven to significantly reduce hallucinations and delusions related to parkinsons. Dont take nuplazid if you are allergic to its ingredients. Nuplazid can increase the risk of death in elderly people with dementiarelated psychosis and is not for treating symptoms unrelated to parkinsons disease. Nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. Tell your doctor about any changes in medicines youre taking. The most common side effects are swelling of the arms and legs and confusion. We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. You should be mad they gave this guy a promotion. Ask your parkinsons specialist 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. Welcome back we had an update came out with numbers on what is happening with internet traffic. The shift in the Network Usage is within its cap ability about the speeds of people learning and working from home. A huge surge in what is going on come cost has seen a 32 increase in peak traffic prime time downloads have shi t shifted to earlier primetime for uploads that the entire workday from 8 00 a. M. To 6 00 p. M. Is primetime with an uptick in Video Conferencing and calling. Gaming downloads are up. Streamer consumption is up 38 ge is stepping up to produce ventilators. Doubling capacity for production at i wisconsin factory separately, Ge Health Care is collaborating with ford. Planning to build 50,000 machines in the next 150 days. Macys, gap and others will furlou furlough thousands of workers. As they advise social distancing romai remain in place. They will continue to pay benefits offering to send some displaced workers to places that are hiring like walmart. More companies withdraw their guidance in response to the pandemic futures now moving to the red. Flickering between red and green now. Off about two points have you noticed how well all the departments have been working together since weve gone mobile with the now platform . Theres no friction at all. Its neat to see the Office Running so smoothly. Servicenow. The smarter way to workflow. Should they downsize . Nesters now. Probably. Will they . Not as long as thanksgiving is a holiday. Planning for the future is about more than just money. Let equitable be your guide. Welcome back to the final trading day of the month and the quarter. We have a jobs report coming up. U. S. Equity futures have turned into the red not significantly at this point but after a pretty good showing overnight in the overnight session, i dont know. Actually, they are right around unchanged as andrew was saying well see what happens between now and 9 30 and between 9 30 and 4 00 who am i headed to me, ill take it. Me guys, telling you about a few companies turning out guidance Restoration Hardware after Fourth Quarter missed expectations earnings did beat expectations but withdrew guidance for 2020 then there are shares of Dominos Pizza which are under pressure the company withdrew because of the coronavirus as well. Shelter in place directives, university and school disclosures and the lack of televised sports is weighing on business what do you think . Any company that hadnt withdrawn guidance who figure out what is going on at this time i dont understand. You are either going to have guidance you cant even provide guidance. Nobody knows half of the guidance will be wrong, right i dont think we know we have a letter to tell but right now from two blackrock shareholders saying the economy will recover but well feel this in reverberation. The outbreak has attacked Financial Markets only seen in a classic financial crisis going on to say, as dramatic as this has been, i do belief that the economy will recovery because of the lacks of some of the typical financial crisis larry fink seeing some operation. Not necessarily a magical snap back but that he does see overtime a steady recovery when we return, new data coming out from china. That could be a possible recovery later, dont miss our interview with ares manager. Hell give us his take of where markets are headed you can watch or listen to us live any time on the cnbc app around your house. Hopefully, you are not going anywhere if you are on the front line and headed to work this morning, thanyofoalyoark u r l u e doing. You can watch us on the app. We are back after this did you know prilosec otc can stop frequent heartburn before it begins . Heartburn happens when stomach acid refluxes into the esophagus. Prilosec otc uses a unique delayedrelease formula that helps it pass through the tough stomach acid. It then works to turn down acid production, blocking heartburn at the source. With just one pill a day, you get 24hour heartburn protection. Prilosec otc. One pill a day, 24 hours, zero heartburn. Welcome back surprising data from china coming in from overnight showing an expansion just a month after showing a record rate of contraction. Eunice joins us from beijing good morning even the bureau of statistics was playing down these figures saying the rebound was only happening because of the february data. The march pmi came in at 52 beating contraction of 45. Saying this does not indicate a sustained recovery or even stabilization of Economic Activity it says new export orders contracted reported a lack of demand as countries around the world continue to impose lockdowns because of the virus spread the expectations here is that the Chinese Government will continue with these measures touring with factories and ports along the east coast to indicate that resumption of work is a priority the country is still nervous they are worried about the spread of infections returning and also the spread locally. That was indicated by the chinese premier urging local authorities to monitor and isolate a symptom magnetic cases. Because up until now, china has not been counting a symptomic cases. Tomorrow, april 1, they are going to be counting the asymptomatic cases in their Daily Briefing that should address some of the public concern in china and globally about the fact that they dont, havent been, counting these cases up until now. Eunice, before you go, im curious about what is going on on the ground and your daytoday given that we look at china as the model of what may be or is coming to the United States we talk about the end of april, potentially being able to open up for business. Others are talking about it being in june. It is looking like something on the order of eight or nine weeks. Do people go to restaurants . What is actually happening it has definitely gotten a lot better especially this past weekend a lot more people are going to restaurants. I went myself. There were 10 tables open. All spaced out nine of them were occupied they have some changes they have requirements, they want only people people at each table. There are a lot of preventive measures they were serving chop sticks at the table. Dishes were wrapped in plastic you see that sometimes, that is different in highend restaurants in china i saw a lot more workers that were landscaping you havent seen that. One other thing is for the drycleaners at my residential compound to open up because those people are outsiders from outside of beijing they were finally allowed back into the city. They went through the 14day quarantine and the compound now said they are able to enter and open up their shop there are definite signs of green chutes here. Weve talked through email a few times about how you have room at your house you never thought it would get that way for our families would move over there because you have room. Part of that is dependent on believing the overall numbers we have seen. There is all theser n current about what the real infection rate might have been in wuhan and what the real mortality numbers might have been . Do you see those numbers are much higher. Theyve got these theories about what those are are you confident about what numbers are close to reality yes it is really difficult to say. Weve seen the same things you see. There have been reports about how people have been picking up the ashes of their loved ones and seeing photos of the number of urns and the trucks that carry those urns dont seem to reflect the same number being reported there are a lot of ways in which people are skeptical about the official figures then like i was talking about with the asymptomatic numbers, if they are not being open about those cases, what else are they not being open about one thing i will say, in china today, anyway, when you do see major news here, it does start spilling out on to the internet. There is a certain period of time when they are trying to figure out, do i censor, do i not . What happens you start to see the news the government might want you to see but then you close it up because you havent seen the massive opening and piles and piles of bodies outside of hospitals, which we did see outside of wuhan that gives me some confidence here that the epidemic isnt Getting Better and better that the government isnt easing up on these lockdowns and restrictions okay. Thank you. We have another report just out by the american enter prize questioning the accuracy of the numbers be egg put out by china in the wake of the coronavirus outbreak joining us now on the phone, a resident scholar and hes been listening to this conversation with eunice in beijing we had a little bit of a discussion there about the vor asi v numbers. I did appreciate that eunice did say we are going to start the asymptomatic cases on april fools day there is no mass testing, which means the numbers should not be compared to the u. S. Where we are now doing mass testing. The country looking at lower levels to xi jinping looking like winny the pooh. Cases in hubei is higher even though the population outside is 22 larger hundreds of thousands left hubei even though there was no quarantine for at least two months china doesnt have a covid problem except for in one province china outside of hubei wildly outperformed south korea if you divided by 10, you get 3. 4 million cases. If the chinese are doing much better than south korea, you would still see millions of cases. They report in the thousands how are we doing in the u. S. . Well, we are finally getting numbers. I object to these graphics comparing countries. India doesnt count, japan doesnt count. We are counting finally. You cant make Public Policy decisions if you dont know where the cases are. If we werent counting, how would new york and cuomo make decisions. We are finally doing the right thing. We started very, very late how off do you think our numbers are now . Some think our numbers are off because of the testing and lack of testing that we are off by a magnitude of 5 to 10 yes when you look at south korea because they tested so widely, the percent average reporting positive has dropped below 3 . We are at 17 as of yesterday. That suggests we are still missing about a spread of five in the population. I dont want to alarm people most people with covid dont get very sick. 90 of the cases are very mild we are probably off by a factor of five. Let me ask you the terrible question is your view that we had more accurate numbers wed be doing less i thinks that what you are imply ing . No. I think we would do the right thing. Right now, we have hot spots in the u. S. We are not aware of as a possible we are not taking strong enoughh action meanwhile, there are other areas where maybe if you had a broad testing program, youd find, whoa, 2 of the people have this so i am not worried about it i dont think theres a rule of do less, the u. S. Is a huge country. Weve already seen this in washington and new york. Theres a ton of variation we dont know where that variation really is. Derek, thank you for joining us this morning. Appreciate your time and perspective. Thank you. Becky, over to you. When we come back were going to talk about the wild month for stocks take a look at futures the dow is up 20 points above fair value stick around, squawk box will be right back. Todays big number 21. 76 , thats how much the dow has dropped so far this quarter. On pace for the worst First Quarter ever not as long as thanksgiving is a holiday. Planning for the future is about more than just money. Let equitable be your guide. Despite recent gains the dow on track for the worst First Quarter ever joining us now by phone is keith ban banks, head of Investment Solutions at bank of america take it to the banks keith, let me try to summarize what youre saying its as simple as this if you are not fully invested, start dollar cost averaging in does that kind of sum up what you think we should be doing if so, into what yeah, joe right now what were urging clients to do is you need to have a longer term view, number one. Youve got and if you find yourself below what would typically be, you know, an equity allocation, were saying take your time, get yourself back to what would be a more normalized level, we like large cap as far as where money should be going you know, maintain diversification. Go multiasset do all of the things that you would normally do but just stick to this country and stick with large cap . Any sectors in general you like financials, staples, health care, what . Theres a scarcity of growth, yield, within those sectors it would give you those exposures whether its finance, health care, tech on a bar bell stant point. A lot of people are trying to get clever its time in the market not timing the market. If you go back to 1930, your returns would have been around 15 . If you missed the top ten performing days of each decade over that period, your returns would be 91 so people get drawn into theres a gravitational pull people want to sell when the markets are getting hit bad and you tend to do the wrong thing at the wrong time. Thats why, again, were having a long term perspective, be disciplined and build your way back to what a longer term equity would be. Cushion with some treasury and gold as well thats your portfolio, right, in a nutshell, keith . Yeah. Just hang tight. Again, were confident well come out of this just dont be zigging and zagging. That never works all right keith banks, b of a. Head of Investment Solutions group. We appreciate it well talk to you at some point in the future. Thanks, joe when you look at the Critical Issues facing our world, what do you see . We see breakthrough medicines getting to patients in record time. We see harnessing natural gas unleashing the promise of clean energy. We see engineers simulating the future to improve today. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. But when i started seeing things, i didnt know what was happening. So i kept it in. He started believing things that werent true. I knew something was wrong. But i didnt say a word. During the course of their disease around 50 of people with parkinsons may experience hallucinations or delusions. But now, doctors are prescribing nuplazid. The only fda approved medicine. Proven to significantly reduce hallucinations and delusions related to parkinsons. Dont take nuplazid if you are allergic to its ingredients. Nuplazid can increase the risk of death in elderly people with dementiarelated psychosis and is not for treating symptoms unrelated to parkinsons disease. Nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. Tell your doctor about any changes in medicines youre taking. The most common side effects are swelling of the arms and legs and confusion. We spoke up and it made all the difference. Ask your parkinsons specialist about nuplazid. Aand were here for you ry day fespecially now,rs. Ask your parkinsons specialist doing Everything Possible to keep you connected. Through the resilience of our network and people. We can keep learning, keep sharing, keep watching, and most of all, keep together. Its the job weve always done. It is the job we will always do. Searchingfor direction thi morning on the last day of whats been a volatile month and quarter for the Global Markets in washington President Trump and congressional leaders are mapping out more potential stimulus to help shore upthe economy amid the coronavirus virus. And the virus sending auto sales to a screeching halt the latest data is straight ahead. Cnbcs coverage continues right now. Good morning, everybody. Welcome back to squawk box. Im becky quick along with joe kernen and Andrew Ross Sorkin. Were watching the u. S. Equity futures. Dow implied down by 20 points or so that comes after a big day yesterday of gains dow up 690 points for a gain of 3. 2 the s p 500 and nasdaq did even better in percentage gains but it has been a pretty miserable march for the markets. The dow is down 12 for the month. That included three drops of 2,000 points or more half of the dow components are down maybe were ready to get rid of march, get into april. Right but you know about april, comes in like a lion or out like comes in like a hopefully march goes in april showers bring may flowers. March is the bear. Thats right. Thats right well, maybe thats appropriate then lets talk to mike santoli yeah. I wanted to ask you, mike, are you feeling like were searching here for maybe some stability. Obviously thats what weve seen, but are you less convinced we need to see new lows at this point as a sage, you know, longtime watcher of things . What do you think . Reporter yeah. I dont think, joe, need is what i would call it. It seems to me when you go down 35 in a Straight Line youve discounted a lot of bad. I do think the behavior weve seen so far on this rally, weve regained a little more than 1 3 of all that was lost in the s p 500 in just about a weeks time. So thats both relatively routine relief bounce after you get the rush of panic and also its a pretty good start i think the history says 70 of these major panic low points in a bear phase do get retested by whatever definition you want to call that. I think the conversation has gotten a little over heated on that level i think the more interesting thing is was that low that we saw last week something that represents an over shoot to the down side of the probable economic scenario . That was the whole point were in the lull where i think its good we have a narrowing range in the last few days you did not have a lot of crazy moves overnight even though it seems a little bit touch and go in terms of gains and losses thats good. You want to see volatility bleed out. Parts of the market that were really under a lot of stress have definitely been under repair right now you look at the Corporate Bond market, all the rest of it one of the big questions, we have quarter end everyone has been talking for days about the big shift that might or might not be happening from Pension Funds into fixed stock. Bonds have obviously trounced what equities have done. Very much on a micro level, if you look at the way alphabet responds to a massive slashing of its ad revenue output yesterday, the stock was up. It was down 1500 to 1100 maybe they discounted there was going to be a nearterm slowdown things like visa, Sales Volumes being down not getting incrementally hit, theres a thin read to the grasp before. Thats the zone were in this is what a relief rally looks like sometimes they carry higher. Sometimes they dont sometimes you need to roll over again. If you havent been tested probably the worst of the economic numbers then were going to get to the big question. Boeing looks a little better today. Weve got oil, mike, there are certain key things here that we watched the overall averages underneath that theres some specific things going on, too, that kind of obfuscate exactly what were trying to do here anything else . Yeah. Its true. Its not a clean look at just oh, weve got a shock about this stoppage of the economy due to the virus, exacerbating factors. I could argue thats the way it goes when the market hits the skids, right we were in a bear market when 9 11 happened and then the enron accounting scandals and it seems like everything gets piled on when things are not going well its not just the economy. Oil obviously going to extremes right now. Whats interesting is looking at the way the equity market is just kind of letting oil kind of decline to new lows and not really using it as a key tell because it has so many, you know, unique factors going on there. When this is all over, mike, i think maybe i ought to come over, bring a little paint well pick a color, put a little paint on that wall do you like that . Is that intentional or is it just run down or what . Heres what i want to say this is not its not faux distress, its real distressed old wood siding. So its for effect im not going to say i was the lead on all of these Design Choices but i did not oppose them i wasnt the lead on any designs, mike, so i know exactly what youre talking about there. Anyway, thank you. Andrew, lets go to you. Were going to continue this conversation on the markets. Right now we are joined by Ares Management ceo michael arougheti. Thank you for joining us you spent a lot of time in the credit markets tell us how you see it from your seat well im not actually seeing it from a seat where i can see the real economy because obviously im home, but i can give you a view of whats going on in the market as you said, were in the credit markets daily, both liquid and private. We have investments in about 1700 middle Market Companies ill tell you, across the board it is tough out there. Thankfully we saw a little bit of a relief rally at the end of last week. Thankfully the fed stimulus has helped the markets heal at least for the time being i think the challenge were having across the board is its very difficult to price the market well positioned. Were not set up for this kind of a shock. So in the lending markets, private lending markets particularly, whether youre talking about real estate or corporate, theres just a lot of handtohand combat right now. Banks and nonbanks working with borrowers and asset owners to provide liquidity to get to this demand shock when we turn the economy back on. To the extent you follow the equity markets and see that it appears that were having i dont want to say stability but some semblance of stability, people are talking about whether a bottom is in, relative to what youre seeing in the credit markets, does it make sense that a bottom is in does that look right to you when you see the fundamentals in what the markets might look like in six to 12 months from now . I think we have to be careful not to confuse the equity market with the real economy. Obviously we saw such a severe move to the down side that we had a little bit of recoupment and that feels better. You do have to appreciate, were still on the front end of this we havent seen the unemployment numbers really roll through. We havent seen the stimulus ge into the hands of the consumer or Small Business. From my perspective we have a little ways to go to get fundamentals to the bottom and not sure the market is fully factoring that in. You sound more pessimistic rather than optimistic at least as of now. Im more shortterm pessimistic but longterm optimistic that well get to the other side of this given the fed Monetary Policy long term and short term when you think of this we went into the early days of the crisis thinking there were a handful of industries that would be affected by the Health Crisis travel, leisure, hospitality, et cetera, and i think now looking across the markets, its actuallytoee a market that hasnt been affected consumer behavior, revenue shocks, supply chain disruption, et cetera, et cetera the challenges out there are pretty broad and pretty pervasive. The steps the government has taken in terms of Small Business loans, liquidity thats trying to be pumped into the system do you think its enough we talked with eamon javers about whether a second stimulus bill may be in the offing ultimately. Yeah, i think we need to do more both in terms of size and scope. I think we should all applaud the work thats already been done, both in terms of the size of the stimulus and the speed with which it was implemented and i commend everybody for the bipartisan work in getting that do done i think one of the challenges is we are using the 20082009 playbook in a very different type of crisis if you think about what we were trying to deal with in the last go round, it was a Bank Liquidity issue on the heels of a mortgage crisis. This is projecting much more like a natural disaster. This is a main street problem, not a wall street problem, and a lot of the stimulus thats already found its way into the system is really geared at the Securities Markets and fixing the plumbing, if you will. I think some of the work thats been done around the Exchange Rate fund and the sba Lending Program to get capital directly into the hands of the Small Businesses is a great start, but i think were going to need to do more to get dollars flowing in the real economy. What are you hearing from the companies that youre invested in terms of whether some of them are going to take the loans . The reason i ask about that is i keep hearing from Business Leaders who are saying, look, i dont know if i want to take the loan given that it requires me, if i want it to ultimately be forgiven, to keep 90 of my employees on board i thought that was a great idea except a lot of people are saying, i dont know what the world is going to look like four months from now. I dont know if i want to be able to keep 90 of my employees on board because it may take six months, eight months, a year, longer to get back to where i need to be to keep most of those employees. I think its a great point. Were in the phase where everybody is digesting the proposed stimulus and, frankly, figuring out exactly how to access as much as were figuring out whether or not they want to access but i think your point is a good one. If you just take the Small Business monday facility as an example, youre really talking about a loan to a Small Business at 2 1 2 times monthly payroll if you have a view that your business has been materially changed even coming out of that loan either, a, may not be enough or it may come with too much constraint and you may not talk it. I think thats a tbd and its going to be very company specific. Final question, is there any money that you are putting to work if so, where yeah. I think the good news, weve been active. Of our 150 billion of assets, 150 billion is uninvested largely focused in the private equity, credit and real estate markets. As you can appreciate, the new deal environment is pretty slow so most of what weve been doing is in the liquid secondary markets. Cmbs, high yield leverage loans and there are some great values to be had in the past few weeks. And on the private side, on the rescue capital and distressed side, weve been pretty active in providing Liquidity Solutions to private companies. Whats the energy patch look like i know you have money there. And also in the real estate space. I cant use expletives on tv. The energy patch is pretty tough right now. Thankfully at ares it represents only 2 of what we do, meaning ent, but challenge in energy right now, weve never seen a simultaneous supply shock and demand shock at the same time and its just unprecedented. Were talking about demand contraction right now about 10 to 20 Million Barrels over the next 30 to 60 days supply in the next 30 days will likely surpass supply that we saw over the twoyear period in 2014 and 2016. That is just devastating across the energy sector, not just for high Grade Companies but also for subinvestment grade as well not surprisingly youre seeing that play through in the Energy Markets and the Securities Markets. High grade energy bonds, yield probably 6 versus 3 going into this Energy Stocks as you guys know down 40 to 50 very, very tough and i think this will persist when you think about where saudis and russia are from a projected supply chain stand point. This will go on through 2020 if not into 2021. Michael, we always appreciate your time and perspective. Thanks for joining us. Thanks for having me. Take care. Be well. Thank you you too. Joe. Private Aviation Company wheels up donating meals to help americans get through the tough time meals up envelo nfl quarterback, russell wilson, hes a winner. Well talk about the entir venture next talk about the best, we are down near 70 or 80 points stay tuned, well be right back. From wheels up to meals up the private Aviation Company is donating 10 million meals to americans in need through the nonprofit feeding america. Joining us now with more on the action that ceos and entrepreneurs can take to provide relief for hardhit americans, Kenny Dichter and russell wilson, quarterback for the Seattle Seahawks guys, welcome. Kenny, russell you know, well see how this works. Weve got skypes, delays here. So lets give it a go anyway kenny, why dont you start by telling us how you came up with this, what youre doing, what russell is doing how russell got involved i dont think everyone knows about feeding america even so fill us in. I appreciate that, joe. First off, thanks for having us. I wish everybody safety and health right now i think were in a john f. Kennedy moment were all in a john f. Kennedy moment ask not what your country can do for you but ask what you can do for your country i think wheels up is now in meals up mode. I think every ceo, every entrepreneur, every company out there, anybody whos in the trading business, hedge fund business, this is really a call to action and about us standing up and giving back to america. I was inspired by russell and sierra russell goes and visits seattle childrens every tuesday i met russell ten years ago through coach alvarez at the university of wisconsin. Russell has been giving back before he had anything to give when i saw what russell and sierra did in response to this crisis, donating over 1 million meals to the city of seattle, i said, ive got to call the ambassadors, the backbone of the marketing of our business and see what theyre doing i saw and had a great conversation with j. J. Watt who turned me on to feeding america. J. J. During Hurricane Harvey donated tens of millions of dollars through his foundation to feeding america i picked up the phone. Tom brady. Tom and gisele, food banks in boston, feeding america in tampa bay. Joey logano at nascar, i called him yesterday, joe, told him we were coming on the air, 1 million meals. Alex rodriguez, jennifer lopez, 1 million meals. Alex will send cases of presidenpress president e beer. David adelman, Michael Rubin on your broadcast im being inspired by everybody. I said, weve got to put the wheels up machine on to wheels up we partnered with feeding america. Started in 1979. They do over 4 billion meals a year theres 37 million americans that are food insecure on a regular day. Were going to see that build by a factor of 2 with the unemployment and with the need that people are going to have with the contraction in the market so i called russell i said, russell, youre my inspiration. I said, weve got to get this thing going. Ill hand it over to my quarterback and my inspiration, russell wilson. Well, obviously, you know, kenny, i really admire obviously your intelligence but also your heart, you know, because the reality is is that this is a reality. The reality is a lot of people are facing tough, tough times right now. Were all facing it in different ways but theres going to be, you know, people being let go of their jobs i think about the young kids, you know, across the country that may not have a mom or a dad or, you know, the family situation may not be the best financially. Theyre going to be looking for food you talk about the numbers 37 million, you know, people looking for food on a daily basis. And the worry is that this may double the worry is that this may continue i think for sierra and i, you know, a couple weeks ago we started thinking about weve got to make a difference weve got to be able to help in some form or fashion and we started doing our research, sierra and i we found out feeding america is such a Great Program 1979, 40 years of doing good in the world and trying to make a difference so thats where we decided to donate a million meals and make a difference there and kenny and i have been so close. As kenny mentioned, weve been close for ten years. He called me right away. Russ, weve got to do something. Weve got to make a difference in this world and find a way to impact and hopefully help some lives here so meals up, were excited about the potential of beingable to give back and everybody coming together to make a difference. I think about just the cool thing about feeding america, too, as well, is over 98 of each dollar thats donated, it goes to feeding lives. You know, it really makes a difference and each dollar is roughly 12 pounds of food so we can all make a difference, and i think thats the initiative with meals up is to really step in and help out and do as much as we can the best way that we can help out is to love at the end of the day, its the quality time that we spend with one another. Those moments that we get to help each other, serve, give back hopefully we can continue that hey, thanks, russell. Kenny, not everybody thats watching is like an ambassador, a wheels up, tom brady do we go through wheels up do we go through feeding america . Whats the best way for everyone to pitch in . First and foremost, again, we went out and pledged 10 million meals. We got in touch with the charity through our folks and were already at i made ten phone calls and were at 7 million meals. Everybody out there, its so easy to donate go to feedingamerica. Org mealsup 1 million meals. This charity is so efficient, theyre acquiring meals, they do 4 billion a year 10 meals is 1 if you want to donate 100 meals, its 10 you want to donate 1,000 meals, its 100. Im looking at their business seeing how can we be more efficient. He said, we have to get efficient like feeding america we have 8,000 great members that were going to go out to and let them know that were here to help facilitate them helping we have 1,000 pilots 300 airplanes. By the way, i want to answer Governor Cuomo and any other governors call. If there are volunteer medics, at bastian, one of the best ceos setting a great example, we will, wheels up will fly medics. Governor cuomo, reach out to us. We want to help. What we want to do is empower not just the feeding America Movement and getting our members and our investors involved in helping others, because we all have the band width to do that and empowering the social reach that all of our ambassadors have to throw that goodness around. We want to inspire ceos, entrepreneurs, anybody watching the show to have your company take a little bit of band width while were going through unbelievably unprecedented times, were all going through the same thing lets all take a piece its the best thing in the world. Were going to get through this. All right i think were losing kenny russell, i just russell, just as an aside for a second, i know you probably remember back during 9 11 how it felt when we saw a baseball game after going through that im just wondering what its going to be like for you when were through this and what sports are going to mean, the seahawks, the nfl, Everything Else for the country i just wondered if youve thought about that its going to be pretty special when we get to the other side and go back to doing i think ratings, everything is going to be greater than it ever was when we do that im really looking forward to it you know, i think thats a great point. You know, i you know, sports, music, entertainment is such a key part to just us having that joy, you know, and that togetherness it doesnt matter your socioeconomic status when people come together, its a special thing. The reality is, none of that really matters right now i think that the only thing that matters is the next day that we wake up and making sure that were safe and our families and whatever we can do to help serve and give back in whatever capacity, whether its just protecting our families, whether its being able to donate if you can. I think the reality is a lot of people worried about their next job and whatever it may be for me, i love playing the game, you know as soon as i can get back out there in a safe way, that will be great but the reality is is that were in a worldwide pandemic. Its unprecedented ive never seen in my whole young 31 years, ive never seen anything like this in terms of us, you know, canceling sporting events and colleges. I think about my sister, you know, stanford university, you know, basketball player. You think about that her whole seasons canceled. Her senior year, she doesnt get to experience her last little semester and Everything Else, you know, in college i think of all the College Young students who are looking forward to college, the High School Kids the kids that wake up and they want to go to little league. You know, i just the best thing that we can do is just love and give and serve and if we can do that if we can do that, i think well be back out there and be able to spend time together, altogether enjoying games. None of that matters yet. Russell, thank you for doing what you did and inspiring kenny. This is going to be much bigger than just you and your wife once it gets rolling here i dont know whether kennys with us still. I think we lost his audio. The last thing i want to say is with kenny and other ceos that can make a difference, if you can, you know, i know were all going through stuff but the reality is if we i love what kenny was able to do he was able to make a difference any other ceos want to make a difference and partner up with the meals up initiative and get back with feeding america and everything lets donate lets make a difference if we can and serve. Sierra and i, for our why not you foundation, weve always thought how can we help one child at a time . Thats what weve been focused on, why not you foundation kenny with wheels up too great russell wilson, thank you. We appreciate it Kenny Dichter, thanks for bringing this to us. Good luck with all of your efforts and well speak to you guys hopefully soon under different circumstances. Thanks thank you guys. All right becky. Thank you, joe when we come back, the Auto Industrys streak of strong sales is screeching to a halt. The coronavirus wreaking havoc on the industry. We have the latest numbers ahead. As we head to break, lets take a look at some of the latest auto stocks. Well be right back. Dont forget to subscribe to our podcast. Youll get interviews, original content and behindthescenes access look for us on Apple Podcast offer on your favorite podcast app and subscribe to squawk pod today the barkins are empty nesters now. So it doesnt make a whole lot of Financial Sense for them to stay in this great big house. But, well, this is home. Its where they raised their three boys. Could they downsize . Sure. Will they . Not as long as thanksgiving is a holiday. Planning for the future is about more than just money. Let equitable be your guide. Ever somethings gone mogotten into the office. M, i hear you. Feels like theres no barriers between departments now. Do you think everyone appreciates it . I do. Huh. Forgot my glasses. Serivcenow. The smarter way to workflow. Still to come on quack box this morning, the coronavirus posing the biggest threat to the Auto Industry since the great recession. Got an outlook on sales and the future of automakers later the ceo of brands such as burger kim and tim hortons and his vision of business after the pandemic well be right back. Yes. Its the first word of any new discovery. But when allergies attack, 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. Yes. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Ok. Yep. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Xfinity makes moving easy with twohour appointment windows, even on nights and weekends. Go to xfinity. Com moving to get started. Welcome back to squawk box the Auto Industry trying to figure out the path forward. Phil reporter andrew, they will not see the path beginning in early april. Ford out with an announcement that it is postponing when it plans to restart production. Remember, it planned to start on april 6th and then add more plants april 14th. Its he saying, you know what, were not putting a date out there. Were postponing and we will let people know when is the right time whether its april, may, whatever it may be in terms of auto sales, this is going to be a rough number that we see over the next few days from a number of the automakers that we report march and q1 sales the estimate, were going to see 11 and 12 million vehicles forget about 17 million. Were back to 2012, 2013 when you look at gm and ford. Were showing you a tenyear chart. Were talking about going back to the sales level of 2011, 12, and 13 at least for march and april and may. Shelter in place is clearly hurting people not going out to dealerships. We will see these numbers likely by thursday or friday and 2350i78ly take a look at group 1 automotive were showing you this, becky, because group 1, the dealership chain out announcing 6,000 layoffs. They did this a couple of days ago. Youll see likely similar announcements from other dealership chains as they wrestle with the fact that theyre not seeing people coming into dealerships right now all right phil, thank you very much. Joining us right now to talk more about all of this is bob lutz the former vice chairman with General Motors hes now a cnbc contributor. Great to have you with us. Good to be here thank you. You know, we were just talking to russell wilson. He said hes never seen anything like this in his 31 years in terms of the shutdown with sports youve got a little more experience than that how would you compare this to things or is this unique well, its fairly unique, but dont forget that during world war ii the Automobile Industry was shut down from 1941 through 1945 and while the business may be off 20 to 25 right now, there is that still leaves the other 75 . Ive been talking to former colleagues at General Motors and they say, well, its time to cut fixed costs, reduce spending, prevent cash outflow as much as possible, probably put some future products on hold, but as we pointed out, some of the country is doing business okay a lot of the country is not as affected but dealers are off they account for the Global Business like china which is a huge factor has apparently passed the peak of covid and is seeing a reduced number of new cases and the automobile business is unfortunate and an unforeseen business. Not triggered by war and some financial disaster the large corporations are well equipped to handle this. Theyve got a lot of cash on hand theyll be conservative conserving it. Theyre going to join this war effort and have the arsenal so all in all its sad. Its very bad. You can feel for the people who are momentarily losing income but well get by this is the Automobile Industry. With a lot of pent up demand you mentioned that gm and other companies are actually going to start producing ventilators. What did you think of the president s decision to enact the defense production act was it necessary i dont know. It certainly surprised people. They were working as fast as they could with vent tech. Who knows what he was thinking it was probably right to invoke it it speeds things up. Im not going to judge one way or another one thing is they will get the job done and will start producing ventilators in an astonishingly short time you mention that they have cash on hand you dont think that the automakers, any of the three would need to get government assistance like were seeing with the airlines . I dont think so. The car makers, at least the ones im familiar with, had a pretty good cash reserve lets not forget this. The positive unlike 08 where you had this perfect storm of 4. 25 gasoline prices and collapse in demand, not 20 off or 30 off, 50 to 60 off, thats where they were hemorrhaging 3 or 4 billion a quart quarter. Cash is still coming in from the west the spare parts business is still running more or less as normal so its bad. Its not a calamity. Whether its the end of april or mid may but at some point it will decline and get back to normal normalcy dont forget, the demand that people that are not buying cars, theyre not going away theyre just waiting theyll be back with a vengeance. There will be a very, very strong bounce back effect which will bep fett everybody. Thank you. Good to talk to you. Thanks very much. Byebye. Thanks, becky we have not been able to you know, were not talking to each other when were on break. The mikes have not been open so were missing our socialization. I just want to tell you one thing, becky, while i have you and see if you can see it. You know what that stuff is called behind mike santoli, ship lap. Ship lap ship lap. Of course. Say it sip techb fast, ship lap, ship lap, ship lap, ship lap, ship lap, because i watch all of the home renovation things i know you well. I do watch the hope mike shiplap santoli. Thats his they have been branding him that on twitter mike shiplap i was afraid to say it like clucking chicken. Shiplap the ceo of Restaurant Brands, the owner of names like tim hortons, thats donuts, sorkin his vision for the company after the outbreak as we head to the break, check out the mornings winners and losers in the s p 500 in this case were coming right back. When you look at the Critical Issues facing our world, what do you see . We see a billion more people breathing free. We see access to fresh food being the global norm, not the exception. We see homes staying cooler, without the planet getting warmer. At emerson, when issues become inspiration, focusing core strengths to create a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Coming up when we return, the new world of drive throughs and deliveries the ceo of Restaurant Brands is going to be our guest. Look at futures there pointing to a lower open on the last trading day of march cnbcs breaking News Coverage of the pandemic and mket ar continues right here on squawk box when we return. With restaurants across the u. S. Forced to close their dining rooms, many are relying on drive throughs and deliveries joining us with a look at that sector is jose cil hes the ceo of Parent Company burger king, popeyes and tim hortons. On monday you penned an open letter outlining your vision as leader of one of the Worlds Largest Quick Service restaurant companies. Welcome to the Program First of all, before we get into the future of what this business is going to look like, just tell us how things are on the ground right now. How many restaurants are open . How many restaurants are closed . What does it look like for you good morning, andrew. Thanks for having me on. It really depends where you go and where you look we have business with more than 27,000 restaurants around the globe and 110 territories and countries. In north america the bulk of our restaurants, over 98 of the restaurants are open we have a couple of instances where locations are in either airports or universities that are more nontraditional type of restaurants. Weve closed those in the interest of addressing the challenges in those particular types of locations, but across north america were open for business and i couldnt be more proud of our franchisees as well as our workers in helping the country work through this Current Situation providing safe food through drive throughs, delivery, mobile order, pickup weve implemented contactless procedures and heightened hygiene and sanitizing as well as disinfecting procedures in all of our restaurants here in north america and across the globe, procedures weve taken from best practices in asia. We think were well positioned here and im proud of the team thats come together to address the Current Situation. Well, your folks and so many folks like it are on the front line of it and trying to help communities. My question for you is how difficult is it to get employees, frankly, to come to work given the anxiety about social distancing and about covid19 weve worked closely with our Restaurant Owners, franchisees and weve put together procedures that address social distancing and ensuring we can do our jobs in the restaurants safely and with social distancing as a front and sebcer approach weve implemented heightened hygiene and cleaning procedures. Were getting thermometers to the restaurants very soon to be able to even address concerns around health even further to ensure that all the restaurants and team members are safe and delivering food safely to our guests. What does the future of this business, do you think, look like how does it change after this . I couldnt be prouder of the work folks are doing internally and with the franchisees our business has been preparing for a shift to off premise for quite some time. Weve invested in technology, digital teams. Our restaurants in north america and across the globe are well positioned to be able to deliver food off premise, whether its through third party aggregators, through our own app. So were well positioned to continue to serve guests our great tasting food, safe food in any service mode we think over time well be in a good position to grow that platform for the long term so were excited about the future, optimistic about the future were really focused right now in ensuring that we keep our team members safe, our guests safe, that we address concerns and what the Restaurant Owners are dealing with thats our focus now. Jose, when you think about the future of this business, i dont know if this is going to be uncomfortable im curious because its a competitive question one of the things you hear about, so many Small Businesses, small restaurants may ultimately go out of business or are worried about going out of business and theres going to be more consolidation or that the Big Companies like yours will ultimately be the successful ones but that there will be a waste land underneath it how do you see that . Yeah, look, i think brands and concepts that take care of their guests first and their team members are the ones that are going to do obviously have to have great food, great quality food and deliver it safely, but the folks, the brands that do the right thing by their team members and guests, those are the ones that are going to be here for the long term. Thats what makes me confident and optimistic about the future. Weve been around for collectively 170 years at tim hortons, burger king and popeyes weve got owners that have been around and were can have doesnt and optimistic about the long term. Were certainly concerned and see the struggles that folks are dealing with every day thats why we applaud the governments actions to address some of these issues immediately with the cares act and in canada were concerned and optimistic about the long term. Jose, thank you for joining us this morning. Appreciate your time. Thank you. Wish you lots of luck. You bet. Becky, over to you andrew, thank you. When we come back, senator rick scott of florida will join us to talk about the spread of coronavirus in his state and talk about another stimulus package coming out of washington. Also later, well be hearing from the ceo of ab inbev and how hes working theyre making Hand Sanitizer instead of alcohol lets check out the best and worst performing dow stocks. The barkins are empty nesters now. So it doesnt make a whole lot of Financial Sense for them to stay in this great big house. But, well, this is home. Its where they raised their three boys. Could they downsize . Sure. Will they . Not as long as thanksgiving is a holiday. Planning for the future is about more than just money. Let equitable be your guide. Good morning it is the final day of the First Quarter and its been an ugly one. Futures pointing lower and the dow is on pace for the worst quarter in three decades crude comes off of nearly 20year lows as putin and trump plan to have talks to stabilize markets. The industrial pivot theyre joining the fight against the coronavirus. Just ahead, well be speaking with ab inbev ceo adding 1 million worth of cnbc continues now good morning, im joe kernen along with becky quick and Andrew Ross Sorkin the futures on the dow have been fluctuating between 80 and 90 points down. I think were seeing some triple digit moves. We were up sharply earlier in the premarket session but weve gone down to breakeven and now are off a little bit this morning. Treasury yields have been fluctuating around. 65 to. 75 this morning on the ten year andrew okay. It has now just been four days since President Trump signed a 2 trillion Coronavirus Relief bill it includes checks for Everyday Americans as well as billions of dollars for airlines, hospitals, Small Businesses around the country. But with u. S. Social distancing guidelines extended through the month of april, theres already a talk of a phase 4 aid bill eamon javers joins us with more on that. Reporter good morning again, andrew there is a lot of talk already, no action coming any time soon the president said yesterday that given that these social distancing guidelines have been extended out until the end of april now, hes really focused on saving lives and the economy, which he was really focused in on last week is going to have to take a back seat heres what he said. And i guess we dont have that sound bite sorry about that but the president said yesterday that ultimately the economy is number two saving lives is going to be his focus. He expressed frustration he said lives are here and theyre not coming back until the latter part of april so nothing coming up in the next couple of weeks. Thats something thats been controversial among upper and middle income earners. She wants to restart that. Broadband, 5g and water systems. Better protection for hospital workers. Financing for direct payments. Once you start paying people, when do you stop clearly congress is already feeling some political pressure to keep up the direct payments at some point presumably theyll have to stop making those. That will be a tough political decision to make once they get there. Back to you. Eamon, thank you. Joining us to talk more about the aid from d. C. Is rick scott. The former governor. Just issued a stay at home order for the southern part of the state. Will there be another necessary package, do you think, a phase 4 at this point, senator and thats a lot of money we spent on phase 3 do you have any concerns at all about how big the bill is going to be . Well, first off, what my focus is, how do you get the money to people who lost their jobs and how do you help Small Businesses i dont think we ought to be bailing out Big Companies. The money we put in for people who lost their job, money for Small Business, i want to make sure that money gets out there as quickly as possible i dont think we ought to be funding things like candy center, National Endowment for the arts that has nothing to do with coronavirus. On phase 4, if theres ways to help workers and Small Businesses, i want to hear it but im not interested in Nancy Pelosis pet projects, the Green New Deal or cutting taxes for millions airs and billionaires thats not what we should be focused on we should be thinking about how do we stop the spread of this virus. Youre not governor of florida anymore. There is a stricken cruise ship, the zaandam that may or may not be allowed to dock in southern florida, around ft. Lauderdale 4 dead passengers, 179 others with flu like symptoms governor says we dont have the facilities or it would stress the facilities of that part. Doesnt want the ship docked there. What would you do . What would you suggest Governor Desantis does . Well, what i would do is first off your heart goes out to everybody on that ship and so what ive said is weve just got to make sure that everybody is tested and everybody is guaranteed before they get off that ship if theyre going to be off, then we have to find a place where they have to be guaranteed for 14 days. Hopefully nobody will get it wont get worse. So my heart goes out to them, but they have to, have to be guaranteed senator, wanted to talk to you about the governor of florida and the steps that he has or frankly hasnt taken over the past several weeks despite mounting opposition from Health Experts and others who petitioned him for days and almost weeks on end to close down florida in ways that he had been he has been seemingly unwilling. Can you speak to that . Do you support this governor well, first off, im not going to second guess somebody in the middle of a crisis. Heres where i think florida needs to step up we have to get more testing done they have done five times as many tests they keep saying theres all these tests out there. I do town Hall Meetings, telephone town Hall Meetings people are telling me, they cant get a test or if they do get the tests, theres ten days to get a result. We have to get more people tested the reason we need more testing. If you know youre positive or youre around somebody positive, quarantine for 14 days senator, that may be true, but isnt that isnt that a greater reason, senator, to close down the state if you dont have the right testing, isnt that more of a reason than ever to take aggressive action . And when i was asking you about what this governor is doing or not doing, do you support what he has done so far well, im not going to second guess him. Ill tell you, we have to get testing up we have to make sure we keep this economy going to the extent we can i put out a plan two weeks ago 30day plan. Get people to isolate if you can, dont go out if you dont need to. Robust testing with results now. I mean, look at south korea and look at taiwan look at what theyve done versus what the United States has done. I dont want to continue to head down a path of italy i want to head down the path of south korea. Youve got to get more testing done, not just in florida but around the country everybody has to show up locals have to, state has to, federal government has to and the private sector has to. We have to get more testing so people will know if theyre positive or not so theyll quarantine. Senator scott, your state more than any other in the nation relies on tourism tourism is what is shut down, the entire economy is shut down. What do you think about how long some of the social distancing is going to have to take place, how long people are going to be reluctant to travel or told not to travel and where you will be taking your cues from . Becky, a couple of weeks ago i suggested we shut down the airports i dont think we ought to be doing domestic or International Travel we have to figure out and let everybody state by state, city by city figure out how to stop the spread of this i think its going to take a while. I think everybody has to stop and say, what are the new rules. Like an airport, back in i think it was february i said, why arent you just even testing people for a fever you couldnt even get airports to test for a fever. I mean, were going to have to change how we look at this what are going to be the rules if you want to open up your business, does everybody have to have a mask . Does everybody have to be six feet apart do people have to be tested . Do you have to have gloves we need to have these conversations now about how were going to open up this economy because i want it open as soon as we can, but we cant open up everything if we havent stopped the spread of this. You mentioned people needing to be six feet apart and wearing masks. Hard to imagine disney world or universal opening up again universal orlando if they have to be six feet apart do you think its going to be a long time before those places can reopen becky, i think we have to have the conversations about what are the rules Going Forward . If china keeps creating these these viruses keep coming out of there, we have to figure out in this country to be more like taiwan and south korea that take these things seriously and stop the spread early senator, just real quickly before we let you go, you talked about Small Business and people that are out of work as opposed to bailing out Big Companies do you think we need to keep the Airline Industry in business, right . What about boeing . I mean, there are Certain Companies that obviously we need im a business guy. I want everybody to be in business, but these are the companies, they can go to the markets and get money. And by the way, ive been doing these telephone town halls some people are pretty frustrated with the airlines that when trump said you had to fly back to the states, prices went be up quite a bit i have a lot of people that i talked to that are really mad about how much the prices went up by the way, the other thing we ought to be talking about is china. We dont clearly wouldnt have the same problems if china had been transparent when everybody thinks about buying anything from china in the future, just remember the Chinese Government is a significant culprit in this pandemic because they were clearly not transparent. All right, governor senator. Senator, governor, we appreciate t. Thank you good luck. Well see you hopefully on the program in not too long a time. In person see yall. Yes, in person. Six feet away, but in person and in a mask going to be different. When we come back it will be thank you very much, senator when we come back, businesses are pivoting to try to produce badly needed supplies during the coronavirus pandemic join us to talk about manufacturing, disinfectant and Hand Sanitizer in addition to beer plus, check out cruise line operator carnival. Theyre suspending Dividend Payments and stock repurchase as they postpone more voyages they couldnt estimate the impact of covid19 on its business but that it does expect a net loss for fiscal 2020 you think . Futures dropping to the lows of the session. Stay tuned cnbc special coverage will be right back dont forget to subscribe to our podcast. Youll get interviews, original content and behindthescenes access look for us on Apple Podcasts or on your favorite podcast app and subscribe to squawk pod today. Sleep this amazing . Thats a zzzquil pure zzzs sleep. Our gummies contain a unique botanical blend, while an optimal melatonin level means no nextday grogginess. Zzzquil pure zzzs. Naturally superior sleep. As Companies Large and small see their businesses disrupted from coronavirus, some big Company Names are purposefully making a pivot budweiser brewer ab inbev is pushing Hand Sanitizer joining us right now to talk all about this is carlos brito he is the ceo. Thank you for joining us hi, becky good morning to you all and great to be with you so tell us a little bit about this operation with bud reiser and rubbing alcohol. How does that work first, becky, what i would like to say before i go there, let me step back and say this covid19 crisis has chiengd life temporarily but hasnt changed the way and the things we value and the things we stand for here at anheuserbusch. Safety and health of people. Our partners and communities were learning from teams in china, south korea they say this covid19 crisis prior to other countries weve learned a lot from them and the learning in terms of best practices around the world. To your question, as a beer business, were very connected to the communities 95 of what we produce is sourced. Our people are from the community. We brew it locally and sell back to the community thats why were so involved in what the Community Needs are for example, Hand Sanitizers, but also relief water. Also helping our pubs and restaurants to stay afloat also helping the red cross in the u. S. , getting money from sponsorships getting money from sports sponsorships and reverting that to blood drives for the red cross and that goes on building annex to Public Hospitals in brazil, adding beds fully equipped in less than a month. Lending our trucks to Regional Health care service and providers to get medical supplies to hard to access places in latin america, colombia, peru, belize were doing these and adapting to consumer behaviors so theyre not going to bars, pubs, restaurants anymore because theyre closed, but they continue to buy our products in Grocery Stores, big supermarkets were adapting to that, the whole business of value chain and also the air force for recovery as we continue our business Hand Sanitizer is something that we early on in the process saw we could divert some of our production to Hand Sanitizer we produce alcohol, ethanol. We extract alcohol to produce our 00 alcohol beers we also have readytodrink cocktails so we have some distilleries in our breweries so today we produce Hand Sanitizers in more than 20 countries around the world. We dont sell them, we donate them to first responders, to Public Hospitals, to people that are in need and today we already have committed more than 2 billion bottles and well continue to grow because thats what our communities need. Carlos, you have been able to reopen china, including a brewery yes. In wuhan youre 100 operational in china. Yes. I dont think you would have gotten to that point if you didnt feel that the time was right. Can you speak to reopening that . And it gives us all hope and, you know, it gives us maybe a time line with the best Case Scenario here. What we saw in china is that when Chinese New Year came, the lunar year, that was the last week of january, by coincidence that was the day that the Chinese Government shut down everything and put a hold on travel so instead of millions of people moving around the country, everybody stayed put they also mandated the closure of many of our retail customers and what happened is that there was a big lockdown and now things are going back to normal for the past weeks so in the last month or so offices are back to normal our office was one of the first ones to reopen in shanghai the vice mayor went there because we followed all of the procedures mandated by the government they all open up because different provinces are there. So today we have all of our breweries in china open for business business is recovering our restaurants, bars are reopening. Very fast pace consumers are going at the same kind of frequency. They go sometimes in a restaurant and leave quickly so theres some change in behaviors. Consumers are buying more online i have to say they did an amazing job of adapting to new ways of Consumer Shopping and other products during the lockdown cantar, global Search Company did a survey with all of the chinese consumers and theyre making enough, amazing enough, the things and questions were what are the most wanted things you want to do after the lockdown is over in four out of six of the top things they said they would love to do are all connected to many people in our business they all want to go out with friends, back to outdoor entertainment, travel, back to indoor entertainment our business is all about bringing people together even those days of social distancing, were continuing to bring people together through virtual happy hours. Happening all over the place thats why we continue to be in business as governments allow us to be feel our product is very important to keep that supply chain in the area of normalcy so consumers can go to the grocery store, they see the brands theyre used to buying on shelf stocked and they can buy budweiser, bud light, michelobe ultra, your favorite seltzer, joe, and so we feel its important to be open so we can help the Community Like i said in the question before, but also because we service 6 million Small Businesses across the world and these are the businesses that are being hardly hit by the closures and the lockdowns and we have an obligation and we feel a moral obligation to keep them in business right now theyre doing takeouts so were doing all sorts of things on social media to let neighbors know what are the pubs that are open. In europe, latin america were doing a bonus. So if you buy a 50 if you pay 50, for 100 bonus for your favorite pub, when it reopens you can redeem that bonus for 100 bucks worth of food and beverage thats the cash thats badly needed now were doing everything we can to keep the 6 million Small Businesses around the world. Thats why we have to keep operations going and thats why we have to prepare for a strong recovery in china you already see that recovery coming. Carlos, very quickly. I know youve withdrawn guidance for the full year but you did talk about how in china you were looking at revenue down by about 285 million, ebitda down by 170 million in new jersey they closed all nonessential businesses but Liquor Stores are deemed an essential business is the u. S. Seeing as much of a downturn as china did . Were operating where governments are allowing us to operate. Our customers are calling us, everywhere in the world, to make sure our products will be supplied because the consumers are also looking for our products we feel its important to give consumers in this time of strange times of living where theres so much uncertainty, everything is fluid, i think its only fair to give the consumers the products and staples theyre used to and to make it possible that they find the products and that the products find its way to Grocery Stores the u. S. Is adopting this far different approach from china. China closed down everything but food stores. Even in china we sold beer during the lockdown. The u. S. Is keeping Grocery Stores open, Liquor Stores open because, again, consumers need to find their products otherwise, life gets even tougher. Being open, were having communities with our trucks, Hand Sanitizers, with the alcohol it provides for the hospitals. With the red cross, amazing partnership. Same in the u. S. In the u. S. What weve said, all sports are canceled. We have sponsorships we are the biggest sponsors of sports in the u. S. So we agreed with the leagues, with the teams, with the venues to open this to the red cross. I dont know if you know that, but because of the covid and social distancing measures, the red cross had to cancel 7,000 blood drives thus far this year because the places where they normally get the blood drives, people are very close to each other. People still need blood, not because of covid but because of Everything Else. So we have now the stadiums open and available to the red cross because in the stadiums that can do the blood drives and still have social distancing we are also redirecting money that we would be using for sports sponsorship and media time for the red cross for them to drive their message to the communities. Also, were donating in the breweries to do the blood drives and do social distancing those are the advantages of having People Like Us in business. Great carlos, want to thank you for your time today. Carlos brito joe . Thanks, beck. Coming up, former fda commissioner, dr. Scott gottleib what he says will be a hard month ahead for us in the fight against the coronavirus. Plus, the impact of the virus not yet showing up in many traditional economic reports well bring you a story on how some wall street firms are turning elsewhere for insights as we head to break, check out some of the biggest premarket decliners in the dow and they probably have gotten a little worse with the futures pretty close to the lows. Well be right back after this okay, everybody. Welcome back to squawk box. Weve been watching whats happening in the futures this morning. It is the last trading day of the month. Right now we are on a pretty negative trajectory. Dow futures down well have much more when we come back. Andrew coming up when we do come back, former fda commissioner dr. Scott gottleib on the spread of the coronavirus in america. What do cities outside of current hot spots like new york, new orleans, detroit need to know well bring you those answers. As we head to break, take a look at the price of oil. Coming off of 18 year lows the kremlin, Vladimir Putin and President Trump had a phone call to discuss stabilizi tnghe market well talk about it when we return awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] squawk box this morning. Worldwide Coronavirus Infections have now topped 800,000. This according to Johns Hopkins University Joining us to find out how critical the next month will be in the fight against the virus someone weve gotten to spend a lot of time with dr. Scott gottleib, of course a cnbc contributor as well serves on the boards of pfizer and i will lumina. Good morning to you, doctor. Good morning. One of the topics we havent had a chance to talk about in a while is antivirals we had conversations and you had some skepticism about the idea of this antimalarial pill and mixing it with zinc or zpac. Im curious if your view has changed. You hear evidence when people get on it early enough and tests are so important, that at least with mild cases it has had success. Is that right or wrong the data is early there was another study out of china with 60 patients that have shown effects as well. We need to properly study it the drugs have been effective in vitro and where you put it into humans it didnt have activity we need to study this drug it might be weakly beneficial, we dont know. This is being widely used right now. Doctors are using this in the United States and outside the u. S. Doctors are taking it prophylactically and trying to prevent infection. Were not seeing a very robust treatment effect to your point, you might have to use them earlier two other drugs that are pretty far along are remdesivir by gilead and avagon by fuji and it acts directly on the aspect of how the virus replicates data should be coming out on both of them within the next month or two that will turn over a card and tell us whether or not these might be working theyre available. Are being made available but none have the definitive data that youd want to conclude that theyre having a robust treatment effect right and, doctor, were hearing that the white house is going to be releasing some of the models that they have been looking at and using to make policy and thinking about policy decisions. Do you have any idea about what their models may look like that differ from some of the models that maybe the public is looking at now one of the models that theyve been looking at is an ihme model i tweeted it out yesterday i know a lot of folks at the white house have been looking at it i think one of the revealing things for folks inside the government right now is that when you look at hong kong and singapore, their economies have largely restarted. The consumers have come back theyre in restaurants, going out, wearing masks, taking caution. Life isnt what it used to be. In china, the consumer hasnt come back. Governmentrun factories and other factories have restarted consumers are scared to come back you need to definitively defeat this to bring the consumer back. China, which is a manufacturing community, can sustain itself but the u. S. , which is a consumerled economy, needs to make sure the consumer comes back i think what that says to policy makers is we need to defeat the virus. We need to get over this and people need to feel confident that we have the tools in place to make sure this doesnt happen again so people can go back to living their lives if this becomes a pervasive threat and consumers are reluctant to go out and shop, go to restaurants, theaters, thats going to be a big, protracted drag on the economy. Hey, scott, the latest on europe id like you to comment on, whether theres a slowing in the increase, i guess . Its a Second Derivative we may be looking at third derivative comment on that. Comment on whether new york when you listened to Governor Cuomo who talks about a slowdown, how quickly things are doubling, patients at hospitals and he looks at that as a positive and then, third, so i dont have to keep trying to you know, with these delays, do you think that the ventilator situation in new york city at this point has caught up with where were going to be in a week or two weeks . Right theres some indication at least peaking. Theyve been peaking for a number of days now the cases level off, come down a little bit data spikes, it comes back down. Thats the case. Its starting to peak. Germanys been doing a good job keeping up spain is still rising. In new york, i think theres a likelihood theyre going to peak in 7 to 10 days, which is consistent with what the government said a week ago there is some information that things are starting to improve theyll still have new cases, it will continue to grow but the rate of growth has been slowing. Hospitalizations and icu admissions and tragically the death is going to lag. Theres a delay in time to hospitalization and time to death. I think the governments been doing a very good job in that state leading to that state. Im proud to have been a new yorker and worked in those hospitals. My colleagues are working hard for many years i think the ventilator situation in this country is going to be really pressed the question is, can you move around equipment it will be very hard to do that. Florida, louisiana, florida is likely to have a big outbreak. On per capita, it can be a hard outbreak as it warms, they didnt act early and they have a lot of infections i think the feds will be tapped out. Their ability to backstop some of these other cities and states the way they did new york is going to be limited. You cant move those resources around so quickly. So communities around the country, cities need to be thinking about how do you shut down elective procedures ppe, move them into the urban settings like new york did cuomo really sort of he looked at the state as one Hospital System and started to move resources out of the Community Hospitals that werent going to see cases and move them into urban centers that were and move the cases into those urban centers. They kind of corralled all of the resources into hot spots other states need to be thinking about that holistically statewide. Scott, i have a related question i know in wuhan part of the reason they were so successful is they were able to bring in doctors and equipment from all around china and make sure they hit that problem hard. Here in new york you have Governor Cuomo asking for help from other states and other localities, but what are the odds that that happens when other states are facing their own outbreaks in the near horizon . Thats a challenge, becky it has happened. Some doctors from out of state have moved into new york and im hoping doctors from new york are going to move out of state as they see their epidemic move down according to the data china put out, you have to take it with some caution, but they had no province that had above 1r5 00 ca 1500 cases were going to be dealing with multiple hot spots you look at states like michigan, you look at states like louisiana, states like florida. Texas. Texas is going to have a bigger problem than what the data is showing. Massachusetts, boston, illinois. These states are going to have a lot of cases and the cases are going to build were not going to be able to shift around providers and resources, both because we dont have the same top down command and control but were going to be strapped nationally you keep listing all of these places that are going to have problems where in the United States are there not going to be problems well, look, i think that theres parts of the country that feel unaffected right now if you look at hospital census data in the midwest its low, parts of Rural America havent seen the virus come to their locations. This is going to start in urban centers and hopefully it ends in urban centers. The mitigation steps that were doing and they have their effect and we are to protect life i live in a small town in connecticut, we have hundreds of cases here from one introduction that we can trace it back to germ theory tells us this can spread across the whole United States if we let it. This isnt a virus that wants to infect 40 of a population were not going to let that happen, but if we let this go it could and anyplace can be host to it. Doctor, i just wanted to talk again about the time line because as you mentioned, new cities, states, municipalities where you think a hot spot could emerge if it hasnt emerged already, each of those hot spots are going to come with their own curve, and to the degree that this is still a free country and people are going to travel, we dont know how much theyre going to travel, the potential for reinfection is real so in terms of, you know, youve talked on our program about mid may, maybe some parts of the world going back to some semblance of normal or early june when you start to talk about some of these other places that dont seem that hard hit yet and you start to say to yourself, okay, well, is that an eightweek to tenweek process there . And then you keep adding them alo along, it seems like this could stretch out longer am i wrong well, the mitigation steps are going to stretch out longer. Thats the point of putting in place mitigation you push down the peak of the epidemic and stretch it out. The rest of the country is on a larger curve youre going to see the rest of the country light up about the same time. There are some parts that lag maybe by a week. There is some precedent that as this progresses it becomes an epidemic it collapses as you get into july and august. Thats what happened in 2009 with h1n1. Coronas dont spread in the summer this is so novel, we have no cross immunity it will transfer where a coronavirus wouldnt but we should have some natural backstop as we get into the hot, humid months this could run its course and collapse as it gets warmed well see the peak sometime in late april, early may. We have toit for the mitigation steps. In july and august we should get back to our normal lives, new introductions, features and prevent this from happening again. When we come back in september and the virus wants to come back, we have a much different toolbox. I think we will. Well be much better prepared in september. We need to start thinking about that now we didnt take certain steps in january to prepare ourselves for march. We need to prepare in march and april for august and september okay. Dr. Gottleib, it is always terrific to talk to you and to learn from you and we appreciate your time this morning joe, over to you thanks a lot. Thanks, andrew whampt to watch in the markets today on this last day of march futures are down 200 plus on the dow but pretty volatile. A lot of moves this morning, both in the green and in the red. The dow, by the way, has dropped 12 this month its dropped more than 2,000 points on three separate occasions and its seen a nearly 9,000 point rein since the beginning of the month more market coverage on cnbcs special coronavirus pandemic merit ck the barkins are empty nesters now. So it doesnt make a whole lot of Financial Sense for them to stay in this great big house. But, well, this is home. Its where they raised their three boys. Could they downsize . Sure. Will they . Not as long as thanksgiving is a holiday. Planning for the future is about more than just money. Let equitable be your guide. Breaking news from the fed Steve Liesman joins us with that steve . Reporter good morning, becky. The Federal Reserve announcing a new program, one it never did in the financial crisis, which is going to set up a new repo facility for foreign central ban banks. If they have an account at the Federal Reserve, they can have an account here. They can take pressure off the treasury markets if theres a need for dollars over seas, they dont have to sell treasuries, they can go and repo them, that is borrow them, over a shortterm period it will ease the strain in the dollar funding markets over seas part of this is like the idea of go set up a branch over there just to do these transactions so that they dont have to come here and put additional pressure in u. S. Markets here this will be in effect for six months, new, Innovative Program for the Federal Reserve. I want to talk about the outlook. Weve been talking about economists using alternative data to figure out whats going on in the economy with the coronavirus. Goldman sachs this morning or i guess it was Late Afternoon yesterday coming out with a revised forecast where theyre now looking for a 9 decline in the First Quarter, an unbelievable 34 decline in the Second Quarter the only good news here is they have increased their outlook for the Third Quarter rebound to 19 , which is pretty good from a prior expected 12 maybe about half of that we get back in the Third Quarter depending, of course, on the huge variabilities here. These are just gauges to gauge are we getting more or less optimistic or pessimistic. The anecdotal evidence about the high jobless claims number shows a bigger jump. On the other hand, both monetary and fiscal policy are easing dramatically further which will tend to contain these secondround effects down the road one way that goldman is estimating this using alternative data, they have an index that they put together of consumer activity and whats interesting is you can compare their same index they have for china with the u. S this shows we were in early days compared to china and that it may have further to fall before it begins what looks like in china right now a long and slow climb back up for the u. S. Economy and consumer activity. Again, all of this depends upon containment. Is there some vaccine, some palliative created there economists are watching. The virus data from guys like Scott Gottleib as surely as they are watching others. Becky . Steve, thank you very much. Joe . Lets get to cnbc headquarters, jim cramer joins us now im trying to figure out trying to anticipate what youre looking at, whether its the way were seeing infections spread in new york, ventilators, oil. I never know with you if its new medicines, whether they work or not what are you working on today . I have been favoring test, test, test we find out whos sick and whos not. Which is the quickest way to get back to work in the country, which is something we all want to do. I thought abbott labs last night was seminal in what theyre doing. It starts with 50,000, theyll take this up as high as it has to be, and then have what we would call a pregnancy test, something you can do at home, well finally get people to find out whether they had it or not we have to start to talk about how to get people back to working not when, but how. As dr. Fauci says, the illness will tell us when. When we are able to find out that we had the illness or that we recovered from the illness, i think the complexion of the whole issue changes. We go from fear to hope. Im expecting that will happen im not a pollyanna about this ive been one of the few people most frightened about this thing the whole way, i think abbott did make me feel like maybe theres a turn coming. There may be more people who have had it already than we know about. Right that were asymptomatic. Yeah. I think a lot of people have given up and said, all right, well follow the italian model well follow the spanish model once we get testing, we follow the south korea model. People have to recognize testing and the equipment that the doctors need first the testing goes to the doctors, the equipment you need you get them that, then we have a semblance of a war against this thing instead of thinking were playing catch up and the issue is not whether the president is doing well or badly, the issue is how well were addressing it personally personal responsibility will play a big role once we can really test. Jim, well be watching at 9 00 thanks yep andrew . Okay. When we come back, a lot more on squawk. Well get you ready for the trading day ahead. You can get a full recap of the markets fastmoving developments at 7 00 p. M. Eastern time on cnbc i hosted it last night, you have to see it. Well be right back after this 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. Welcome back our next guest says the markets will probably begin the recovery long before the virus is over. Joining us is jim paulson, chief investment strategist at the leuthol group. Markets are always forward looking. The biggest question is do you think markets will continue to recover as you see the numbers go up in terms of the cases and deaths as people have people they know get sick or who are in these hospital situations . I think i dont know about the virus. Well have to let that play out. The experts know more than i do on that. It could certainly take a while, but i think a couple things i would say. Normally when you go towards recession, the bear market unfolds slowly, we have to debate whether its a slow june or a recession this one collapsed instantly because it wasnt a normal recession, it was one that was created by announcing a shutdown of the economy so the stock market didnt play around with the foreplay of a bear market. It went right to a full recession. It fell 34 in the first 23 days, thats larger by a factor of seven times than the average of all previous 13 bear markets in postwar history. So there was a lot put into this stock market decline quickly i think the vast majority of it is over because of that. Second point, it could still go lower, but if you look back at 2000, it bottomed initially in november of 2000a8 and went dow 10 more in march of 09 it was only below that initial november low nine trading days if would have bought in november of 08, a year later you made a lot of money if this goes lower, a year out from now its a bargain at these levels as long as the virus does burn out this summer in my view youre talking broadly what you think about the major averages, are there sectors or Major Companies you would be wary of . We dont know how this will play out, which companies will get assistance, which are not, which choose to get the assistance, what dont, thats the one big uncertainty out there still. Certainly with the type of collapse were looking at here in the Second Quarter theres going to be bankruptcies, a long road back for Certain Industries whether thats airline, cruise industry, energy industry. I dont think i would touch those. I would use weak days here to add to more risk, part riskon assets i could chip away at the international markets. Add some financials in here, which are high quality but still i would look at industrials, maybe some material stocks i would look at adding some of those, and on strong days sort of reducing some of my defensive plays that have held up well whether thats utility and staples, low vol investing positioning my pofl more aggressively here, trying to keep an eye on what it might look like a year from now rather than what it might look like three months from now. Jim, anything that made you feel like okay, this is the turning point . Just the incredible lows that we saw . That that 23 days we have never seen anything like that. Im not sure how to look at that but theres no doubt that there was a lot of panic evident in that collapse. And it certainly is encouraging to see the bounce weve had. I do think at a minimum it suggests the cascade of selling is gone. Anyone that wanted out of this thing is probably gone theyve sold and theyre done. Thats a good thing. What we dont have yet is buyers if dr. Gottlieb is right, well see some buyers. Jim, great to see you thank you very much. That does it for us today. Well see you back here tomorrow continuing coverage on cnbc starts now good morning. Welcome to squawk on the street, im Carl Quintanilla with jim cramer and david faber coming to you from different locations. Final day of q1. Futures in a stable range