Transcripts For CNBC Fast Money 20240713

Joining us momentarily and to open the show we have to get news that developed moments ago and that is the president invoking the defense production act to encourage or force some American Companies to make ventilators. Lets get more on that breaking news right now with Kayla Tausche in washington, d. C kayla . Brian, President Trump has done this just a handful of times during the coronavirus crisis, but this afternoon he issued an order that targets six medical Device Companies to procure the elements and materials they need to expedite the production of ventilators and personal protective equipment. The companies include general electric, hillrom, medtronic, resmed, philips and vy aire so they can make things like ventilators and the personal propektipr protective equipment for medical providers more quickly we know it is in short suspect blew in hardhit states as they grapple with growing numbers of sick patients. The white house so far has refrained from using the dpa as a blunt instrument they is used it mora a scalpel singling out specific companies to make these products as needed just last week President Trump singled out General Motors and ventec to expedite their production of ventilators and the companies are keeping the white house apprised of exactly how that progress is doing democrats say the president should be doing more he should invoke this authority more broadly across industries the white house has not wanted to do that President Trump has been critical of what he believes would be nationalizing the companies if he were to do that. The fed cal government has tapped its own stockpile of ventilators and 10,000 are on hand as we are approaching peak virus here in the next couple of weeks. I dont want to put you on the spot, kayla, but lets talk about timing, if you can ge does make a ventilator or close to it. So they might be earlier than most do we have ideas as to what the timing of this order to roll out, to delivery of a ventilator may be no, we dont, and the order didnt specify timing. We havent been able to glean details from the white house on timing this order specifically tightens the supply chain and tries to move some of the red tape to procure the parts going into vent laters. We know from the Previous Companies trying to make the ventilators and they say it will take weeks and potentially months to deliver the volume that the white house has been seeking, but perhaps by identifying some of these items that go into the production, the white house can hasten the production of those. All right Kayla Tausche with some important developments out of washington, d. C. , thank you very much now lets bring our fast money team for this thursday evening, guy adami, tim seymour, Karen Finerman i think we need to focus, to start the show, on gold. Weve been talking about gold for a long time. Gold was up nearly 50 an ounce today, and i have absolutely no idea why maybe you do i think you have an idea why, brian. Its because people are looking at the Federal Reserve, their Balance Sheet is just expanding at paces that i dont think anyone could have imagined and people are realizing, you know what goldwyns in this environment this isnt something we were talking about all week and weve been talking about this last summer i think when the dust settles and you saw that over the last three or four weeks people said the gold move is over. I think its Getting Started 50 today. Newmont mining bouncing off the 41, 42 level and the gdx, and the gdxj moveing to the upside if you are looking for something that wins in this environment and weve been steadfast with this and its gold in the mining stocks, brian, at least in my opinion. Tim seymour, what about the banks . Sort of an interesting move there. Did that give you a measure of confidence or comfort today . Yeah, what led us down yesterday seems to have rebounded and the things that rallied today, first of all, there are things you need to see and gold, you just talked about and one of the reasons why gold can rally is the liquidation around so many asset classes, and gold was selling off and it has abated and were within a whisper of a forehandle on the vix. I may have just jinxed that, but getting back to other asset classes, im not telling you Market Action is healthy im telling you that you saw enough breadth across todays rally where not only do you have some of the troubled industries and you saw certain parts of retail that were under duress banks and small caps and transportation stocks. So you saw an evenlybased rally and the continuation of the leadership and call it the qqqs and t and the megacap tech stocks and there are a lot of folks and dan talks about the narrowness of the rally of last year is something that people are concerned about and in the short run, im constructive on that. Karen finerman, part of the big bank rally, move up, if you will, was j. P. Morgan. The stock up 4 and your guy, jamie dimon coming back maybe earlier than some people expected after heart surgery just a couple of weeks ago that had to have played a role in the stock today. No question i appreciate you referring to him as my guy. He is the most seasoned and i think the most talented executive in the financial world. It is very good to have him back at the helm, and i think that has to be part of the reason, and then ive heard people say id love to see jamie dimon buy stock. That would really send us a message. Id like to see that, too. My strong guess is theyre in a blackout period because theyre less than two week away from earnings and i would be curious when they come out of the other side of earnings where the stock trades and whether he or other insiders will be buying stock. Yeah. If jamie dimon comes in and buys stock that might be a signal to you, as well steve grasso, i know gold has been a focus of yours as well today. Guy adami touched on that. How big, though, was the role of oil today . Heres why i ask because everybody has been slamming oil for years saying its tiny it doesnt mean anything to the market anymore and its 4 all of a sudden everyone says oh, the move in oil is the reason stocks go up. Come on, can you have it both ways think today it was about 90 of the reason yet market rallied. The s p definitely tracked oil and it didnt do it yesterday and it was inversely correlated. There were a couple of things going on gdp forecast, even though theyre worth nothing dont seem to be as bad as we thought they were going to be thats number one. Number two, oil has been the main reason as of late cyclicals are rallying and youre looking at the banks and look at chemicals and then you go back to what we had this week and we had a lot of pension Fund Rebalance and well sit this one out. Today there were 2 billion to buy on the close that looks to me, sneakily, like the Pension Funds are trying to nibble away at the stocks right now. I dont think were out of the woods. I think you have to look at the Technical Levels which is 2475, 2350 on the way down and on the way up is a little bit of a lid. 2650 on the way up until we can cross one of those significantly, we are range bound, but brian, out of the 55 clients that i cover on a daily basis, everyone thinks were going to retest the lows and fail i think retest has been the market word of the last week or two. Certainly steve grasso guys, sit tight here i want to bring in a special guest and savita subramanian, we read the note, i guess, is there a point and maybe you have to from a Risk Management or compliance perspective, is there a point at this point and even having a price target on the s p 500 . No. Its a good question i know moo, i think you can always assign a fair value to the market based on a normalized earnings framework and a cost of capital assumption, but in times like this it almost feels irrelevant and fundamentals seem to take a backseat to other factors. What we try to take a look at our forecast is incorporate framework. We have a fundamental read and we also have a sentiment read which is the most bullish right now in that everybody is freaked out and uncertain about the future which is generally a good time to buy, and then, you know, we also have our fair value model which means earnings have cyclically peaked. We are about to see the biggest recession in modern history. Its going to take a couple of years to get back to the earnings levels that we saw at the end of last year so i think there are puts and takes and all of that combined together, to your point, forecasts are silly, but i think what were seeing right if you is the idea that we get through this year. I agree with whoever said were likely to be in a range bound market and what i am looking at that seems really encouraging is once we get past 2020, if you think about whats going to happen this year, i think it will be a bad year for earnings and we have a 30 drop in earnings forecasted and that means the companies can throw all of their bad stuff into this year and have, you know, a terrible decline in earnings and have a great scapegoat to plame blame it on and come 2021 its a clean slate. Typicr typically, the earnings out of a recession is pretty strong at some point this year well start to think about next years earnings well look to the other side of this and that actually looks like a pretty Good Environment i cant i cant speak for you, savita. Ive already started thinking about last year. 2020 has stunk in every possible way and everybody is out there thinking, just throw it away. Its march 97th, april 2nd, weve lived a full year. Have we reached pessimism among the clients. Mom and pop are Still Holding on and the Retail Investor is not generally you not what im saying theyre still buying bias and from is a buy the encouraging sign in terms of providing a froor for equities is at that time fed will buy anything to keep liquidity in place and the fact that theyre buying investmentgrade bonds and it is unprecedented and it signals that if the fed is willing to buy risk assets and thats a decent floor under the market they can buy as much as they want so we get this moral hazard of a fed thats willing to do whatever it takes to get things going. Thats why i dont think things will get too ugly from here and one of the things from the desk data or flows date is that individual investors have been shedding exposure to stocks through etfs and passes, but they have been buying single stocks, and i think thats an interesting way to play this i actually agree with what individual investors are doing because i think this really is a stock pickers market. Yeah you wonder if it will bring back stock picking because you wonder if theyll make it and you just kind of avoid the whole thing and the carrot ruins the pot pie. Exactly savita, be safe be well, and well talk to you again soon thank you very much. We have breaking news on the sba, the Small Business administration, and the loan program set to launch tonight. Will fred has the details. The Paycheck Protection Program from the sba, meant to launch at midnight tonight and j. P. Morgan chase saying theyre about to post a statement on their website or email their Small Business clients saying, quote, we will most likely not be able to start accepting applications as of friday, third of april, as of midnight tonight as theyd previously hoped financial interables somes some u. S. Treasury, we will help you, our customer, a source pham achely, but were doing everything we can and when we get that complient, and theyre just waiting on that guidance. As vaurious cnbc colleagues throughout the day and i have been reporting, this has been all parts of this, trying to move heaven and earth to get it possible and j. P. Morgan saying most likely they wont be able to take applications tonight and if chase cant we might imagine others will follow. You know thats exactly where i was going wilf i want to do Something Weird and that was read you a text that i got from a former colleague of ours, actually and her parents run 125yearold wholesale seafood business saying weve called four lenders. Nobody would commit. The government hasnt given the banks any guidance so that was today, by the way, and i think that that wholesaler is supposed to be on our show tomorrow night to talk about it. Thats an example of a realworld situation, a 125yearold familyowned company calling the banks and the banks dont seem to have any information and dont know what to do with it and it seems j. P. Morgan is not the only one that does what you just reported. Well have to wait and see and the other point, just to bring up is chase saying most likely we wont be ready, but they wanted to get something out there because they know how many Small Business cut of like the one you just mentioned are waiting on every possible update and if it looks now highly likely they wont be ready they want to release information that their customers know that tomorrow, sadly, they wont be able to get this money in their hands. In terms of when this process is up and running, it means to companies you have a relationship with, and the sba, and because of that, chaes said they wont be ready to take an li kags tomorrow. It is such an important story to tens of thousands of Small Businesses across america. Well have that wholesaler tomorrow wilfred frost, guy, ill start with you listen, you live there in new jersey i know where you live, there are so many familyowned businesses up there its not just all chains in the part of new jersey where you are. Theyve got to get this program going. Its vital to them its vital to the economy to make sure the money is in the pockets of these people. Its got to happen yesterday and it sounds like its not happening tomorrow which is problematic. When were talking about weeks and im sorry about my dog. I understand that it takes time to get these things through, but sooner is better, obviously. Yeah. Tim, you are a Small Business owner, and maybe you dont need help and youre in a unique position, i dont know, but i mean i know were a stock show i get it fast money, but this is the backbone of the United States there are 900,000 restaurant alone in the u. S. Its painful its painful for my business its painful for every business on main street i think the government is moving as fast as you can expect them to move. Im reasonably encouraged that theres a policy in place. Theres also some trickledown effect from knowing there is a trickledown from landlords and suppliers and theyre able to buyback on open and they have the landlord to tell you and we care about you putting your folks back on payroll. If youre a landlord, by the way, you love this policy because it means that ultimately your tenant can pay you because theyve got the government paying their tenant their workers, but leaving that aside ill take the Glass Half Full on this, brian. I run a Small Business and its an awful time and its untenable and unsustainable and the understanding that everyone is going through this is making this unprecedented in both the response and the reaction time and also the tolerance level to let these businesses get as much rope as they need. Yeah. Good stuff i promise you this, tim seymour, when this thing is over, first round is on whoever first round is on me and second and third rounds will be on me to all my friends two big corporate stories today, two different directions. I like that, tesla, deliveries shocking everybody to the upside and even cramer was impressed and that stock soaring, Luckin Coffee fraudulent sales of the coffee giant or former coffee giant sending that stock down 75 . The ta otwstk ors lef o ocstie after this that the world needs. But right now, the world needs all the good that we can do. To all of our employees and everyone working to keep america strong, thank you. To all of our employees and everyone working shbecause xfinity mobilehen ygives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 300 off when you buy a new Samsung Galaxy s20 ultra. Thats simple. Easy. Awesome. Go to xfinitymobile. Com today. Welcome back to fast money. I hope youre having a good day, morning, evening or whenever you might be we have two stories of stocks going in different directions. The first is tesla that stock up big. 17 after hour deliveries and surpassing expectations. The other story, Luckin Coffee the major chain in china concerns of sales and numbers being fraudulently generated and that stock falling 75 today well get to that in a moment and tim, lets start with tesla and each jim cramer was impressed with those numbers and the First Quarter includes march where you still have coronavirus stuff still going in california. You have to breathe optimism on tesla. Look, the delivery numbers, although the delivery numbers have been selective for the market to interpret what do we want to listen to . There are times when theyre behind schedule, ahead of schedule and whats impressive is the shanghai plant was running at record production the last Earnings Report was well north of 1,000 units and this number is slightly below that if you think about it on a sequential basis annualized. So teslas story to me is about Balance Sheet. The last couple of quarts aers theyve shown Free Cash Flow the stock in this environment is a very difficult one to handicap especially because of the volatility thats inherent in the stock and if you lock at what its done its been more volatile than the market and it doesnt surprise me that after hours its up 14 , 15 all right lets go to the other story now. That is Luckin Coffee. Karen finerman there was a report out, a short sale report out last week and people said this is an 89page, ann anonymous report its muck and being delivered and now were getting reports that the coo i mean thshgs chief operating officer may have fudged numbers this is truly an incredible story out of luckin. Yeah. It is kind of amazing. If you read the release they formed a special committee to investigate and so far they found 2. 2 billion, i believe, of r renminbi which is fraudulent the first 2. 2 billion is never the end. Im sure theres more bad stuff to come, and the beneficiary of this today seemed to be starbucks because if their competitor is weakened so badly, and thats more room for starbucks. I wouldnt touch this stock. I think any fraud like this the first thing you find is not the last and there will be more down side i think theres a lot of Short Covering and theres also very unusual option trading in puts, 15 puts when the stock was much higher that you know, were more than ten times they went up by ten times what you paid for them. Yeah. So maybe somebody had a look into this already. Yeah. Zero to 4500 stores in two years. Good grief by the way, everybody sit tight. The White House Coronavirus nightly press briefing is going on and theyre talking right now about the Small Business Administration Program will fred just talked about. So lets dip in for a moment. As a result of this unprecedented situation. This relief will help stabilize the stable business sector by providing businesses with the Financial Resources they need to keep their workers employed and keep up with their day to day operating expenses today i want to ensure that Small Businesses all over the country know about the Paycheck Protection Program and how they can benefit from this. Simply put, the Paycheck Protection Program is to help keep employees on payroll and Small Businesses open. Sba will forgive the portion of the loan that is used toward Job Retention and certain other expenses we are working closely with lenders so that businesses can go directly to their local lenders. Paycheck Protection Program is, in addition to substantial work that the sba has and will continue to do to help Small Businesses including providing advances on sba disaster loans and forgiving existing sb alone paymen payments over the next six months and Additional Details can be found at sba. Gov and we will be updating these resources regularly. Our heart goes out to those affected by this terrible virus. Our communities around the country are stepping up and we will get through this together at sba we know that every phone call, email or application submitted has a Small Business owner, their employees and the communities they support are on the other side our most important objective is to allow Small Businesses to keep their employees onboard and keep their businesses viable through this unprecedented disruption i want to reiterate the importance of patience in this process as we Work Together to ensure that businesses are able to access needed credit. We will continue working around the clock as weve done with our federal and private sector partners expanding capacity and working to make our systems as robust as possible to meet the needs. Thank you, mr. President thank you thank you thank you, mr. President. Thank you, mr. President trump thank you to vida. Mr. President , youve made clear to us, we need to execute. We need to get money to maSmall Business and American Workers. To get this program up and running tomorrow and when jovita says people are working around the clock, we had both teams working until 4 00 in the morning and started working again today. We heard feedback from lenders, community bank, regional banks and we spent the last 24 hours making this system even easier this will be up and running tomorrow i encourage all Small Businesses that have 500 or fewer people, please contact your lenders and any fdic institution will be able to do this, any credit union and existing sba lenders and thintech lenders youll get the money youll get it the same day you use this to pay your workers. Please bring your workers back to work if youve let them go. You have eight weeks plus overhead this is a very important program. I am pleased to announce we are going raise the Interest Rate on these loans and the Interest Rate is paid for as part of the program, the borrower doesnt have to pay this to 1 we had announced it was going to be 50 basis points weve heard from some Smaller Community banks that their deposit costs, even though the governments borrowing at three or four basis points and this is on average a 90day loan to make this attractive for Community Banks and weve agreed to raise the Interest Rate. Again, i encourage everybody to take out the Paycheck Protection Program. I am also pleased to report the Economic Impact payments i had previously said this would take us three weeks and i am pleased to report that within three weeks the first payments will be direct deposit into taxpayers account and as the president said last night the president authorized me to say that anybody that has Social Security recipients wont need to file a new tax return and well have that. If we dont have your direct deposit information well be putting up a web portal so that you can put that up. It is a very large priority, th president has made clear and we want to get this quickly into your hands i am pleased to report that we continue to work closely with the Federal Reserve. We are in the process of designing a new facility that we call the main Street Lending facility we are looking at facilities for state governments, as well and i am pleased to report the employer retention credit. Thats up and running and the first 10,000 of wages you get a 50 credit thats 5,000 per person for everyone who has kept someone, you can immediately get that money you can deduct it from what you owe the irs immediately. If you dont owe us money youll get a refundable tax credit and that is up and running i am also pleased to report we have the program up and running and were taking applications from the airlines, from the Cargo Companies and from National Security companies. So thank you very much, mr. President. Thank you, steve. For jovita or steve, any questions . Mr. Secretary, chase bank sent a letter to its business clients today saying they dont have the necessary guidance from the sba or from the Treasury Department to be able to accept the loan applications starting tomorrow the need is clearly enormous, but at least one major bank says theyre not fully empowered yet. As i spoke with all of the ceos and i had a Conference Call with them and we got input as i said, people were working until 4 00 i believe we just put up the federal register with the guidelines for lenders ive been assured that the lenders will be in the process starting tomorrow. Again, its going to take a little bit of time, but we committed that this will be available tomorrow and i encourage all companies go to sba. Com, go to treasury. Gov. You can see the information you need immediately just to follow up with the Small Business owners, a number of them saying they were on the call and there was a power struggle between the treasury and sba and its over process and forms is what they tell me lenders are actually opting out because they cant make enough money to even service the loans. So how are you going to make sure these Small Business owners get the capital they need to survive right now. I can assure you. Jovita is here and jovita used to me as the treasurer there is no power struggle and jovita and our team worked until 4 00 in the morning and started working 7 00 again and weve made the form simpler and i can assure you at five points ive told these bankers they should take all their traders and put them in the branches so there will never be another opportunity to earn five points on a 90day fully governmentguaranteed loan. And are they direct deposit, the irs is saying four to five months and youre saying two weeks. I dont know where youre hearing these things i told you this would be three weeks. I am now committing to two weeks. We are delivering on our commitments and the irs which i oversee is two weeks and the first money will be in peoples accounts it is not about the first checks for folks who have direct deposit. The question is folks who dont have direct deposity and there was a staff memo released by the house ways and Means Committee today saying the process could take up to five weeks and that takes you to midaugust. Again, let me just say when obama sent out these checks it took months and months and months i happening assuring the American Public they need the money now. What were going to do again, if we have your information youll get it within two weeks. Social security, youll get it very quickly after that. If we dont have your information youll have a simple web portal, well upload it. If we dont have that, well send you checks in the mail . How many checks can you process . We dont want to send checks. In this environment we dont want to send checks and we want to put money directly into their account. There have been some anecdotal reports that Business People are trying to get access to the online site to submit the applications the website has been crashing and ive heard of webinars going online because there are just too many people on them. How are you going to be ready tomorrow to get these loans out . Weve brought in a lot of External Resources at sba and us to make sure theres additional capacity as i said, we heard a lot of good feedback yesterday to simplify this process. Its going to be up and running. Let me just be clear that doesnt mean everybody is going to get their loan tomorrow, but the system will be up and running and we encourage people over the next week, sign up and you can go on right now, you can go on the web and see what information you need. Very simple process. Mr. Secretary, on a separate subject. Have you been in touch with leader mcconnel and Speaker Pelosi about their differences right now about another stimulus package . I spoke ive spoken to the leader and ive spoken to the speaker. Ive spoken to the president constantly when the president s ready and thinks we should do the next stage were ready. The president s talked about the issue of infrastructure since the campaign i think you know thats a big priority for him and again, if we run out of minute owe the Small Business program well be back right away to congress to get this increased does the unemployment numbers today increase the urgency of doing a phase four let me just say, you know, were going through something that weve never done before where the government has shut down big parts of the economy because of health reasons. Our economy was in great shape, our companies were in great shape. There are three ways that americans will be protected. For Small Business, theyll get paid by their business through this program the direct deposit theres also enhanced unemployment spp so we realize, unfortunately, there are a lot of companies that because theyrent in business over a short period of time again, were working with the states on enhanced unemployment and as soon as the medical professionals and the president give the allclear, were going have a ton of liquidity. We have about 6 trillion. This has never been done between us and the fed to put into the economy to support American Workers and American Business. In addition to the jobless numbers we saw today, phase three was signed before the social distancing guidelines were extended for another month. So what additional relief are you going to give to americans as they stay out of work for all these extra weeks. What are you waiting for in designing this program we thought that we had liquidity for about ten weeks and thats what weve designed and again, i think the president s been very clear, if we need to go back to congress to support the American Economy and American Workers, we will be doing that mr. Secretary secretary mnuchin. House Speaker Nancy Pelosi has formed a select committee to oversee the distribution of recovery funds and she said she wants to make sure that those funds are wisely and efficiently spent. Do you think that select committee is something thats necessary . I dont both parties wanted us to have oversight, wanted us to have transparency we have full transparency. We have an Oversight Committee that the speaker gets to pick someone and the leader gets to pick someone i believe theres five people on it and again, that committee will review the money that were spending and again, we support full transparency and taxpayers should understand how were going to support this economy and jobs mr. Secretary, senator has what are your thoughts on that would you consider providing those loans to Energy Companies . Thank you and let me clarify. I have very limited ability to do direct loans out of the treasury i can do them for Passenger Airlines, arg ocargo airlinesese and security companies, outside of that we work with the Federal Reserve to create broadbased Lending Facility which is we will do. Our expectation is the Energy Companies like all our other companies, will be able to participate in broadbased facilities, whether its the corporate facility or whether its the main street facility and not direct lending out of the treasury. The question for clarity with direct payment to americans. For those folks who dont have Bank Accounts and information on file with the irs, how long would they have to wait for their check . For people who dont have direct deposit, again, well have an easy way they put up on a rolling basis, within a couple of days well send it out and we do realize there are people that are under banked and were working with it companies and prepaid debit cards to make sure we have a process that every american gets their money quickly. This money does people no good if it shows up in four months and we will deliver on that promise. It is a matter of weeks, not months. Thats correct. Would you consider a moratorium go okay, head mr. Secretary, one area where you can make direct loans is to the airlines how much do you expect that the Treasury Department and the federal government will be involved in overseeing the operations of airlines as it pertains to which routes get cut back, how much they operate, what they do about their employees and the like there are very strict requirements thats built into the bill this was a bipartisan requirement. One, anything we do with the airlines they have to maintain, substantially all of their employees so any money that we provide them will go to pay their employees and well be working with the secretary of transportation there are requirements to maintain certain routes. So again, we have a very clear process. Weve hired three outside advisers there are Financial Advisers and three law firms and well be releasing that information shortly and i want to thank them theyre all working for basically very, very little money. They couldnt work for free so theyve agreed to work for what they signed up to work for charitable organizations and no big fees to bankers and we have a great team of three lawyers and three Financial Advisers that will assist us. Just to follow up on that, will you give us a list of the names of the people advising you when you released the information . Of course, we will. Ill give you the names as well as contracts. Right now other than black rock again, im happy to announce that we have the pjt partners, okay, is going to do the Passenger Airlines mol son company will do the cargo and contractors and pirello weinberg will handle National Security and there are three law firms that will be working in each one of those sectors and again, let me just be clear we need to get this done quickly. The Airlines Need money and we will work closely with the department of transportation and get this done quickly. Weve already received contracts from a lot of the people again, theres guidance up on the web and full transparency and weve asked for applications. On the Airline Issue again, Speaker Pelosi and others have said that the government taking stakes in those airlines have not be a condition for the federal government to provide payroll support specifically whats your response to that i spoke to the speaker last night about that this was something that was highly negotiated between the republicans and the democrats. The president was personally involved in this he was on the phone with us many times. Mitch mcconnel and mark meadows and senators on both sides and there is a specific line in both bills that the secretary meaning me, will determine proper compensation and this is want a bailout for the airlines and i will be working once we get our advice from the Financial Advisers, ill be working very closely with the president and well make sure that we strike the right balance, not a bailout, taxpayers get compensated and these airlines, these are National Security issues we want to keep our airlines intact mr. Secretary, more broadly, perhaps for the administrate if not for you, as well some Small Businesses and restaurant owners, for example, are finding that laying off their employees so that they can start collecting unemployment is better both for them as Business Owners and for their workers what incentives do they have right now to keep their employees on the payroll if no one is coming in to their restaurant the incentive that you have and we want American Business to be kept intact the incentive is these are loans that turn into grants. So if youre a Business Owner and youre a restaurant you can hire your people back. You get money for their medical. You keep them on the medical plan you get money for your rent. You get money for your electricity. So youre motivated. We want you to have a business that you can reopen quickly when its appropriate so this doesnt cost the Business Owners anything when people talk about, i cant imagine any American Worker who had a job, is offered to keep their job isnt going to want to have it and let me just be clear. We also talked about this unemployment issue you can only get unemployment if you dont have a job so unemployment is intended for those people that are some of the midsize or larger businesses and were very sympathetic to this, but these companies cant afford and for those people the enhanced unemployment will be a significant benefit, but we want to make sure, 50 of the American Workforce is Small Businesses under 500 people. The president , the Vice President , the administrator and i want to make sure this part of the economy is ready and intact when were ready to reopen. Is there a certain category of Small Businesses that youre most concerned about, restaurants, hair salons and things like that thats a great question we are concerned about every Small Business theres 30 million Small Businesses that were really focused on and were working feverishly to provide the available funds to them as soon as possible. The other businesses are being dealt with with the ppe, the paycheck protection and the disaster with the injury or Economic Injury disaster loan, and then there was an advance associated with that particular program, as well, so to answer your question, we are concerned about all businesses, and as the secretary indicated we are looking at employees being ready and not lost in this process we want businesses to stay intact because they represent half the half the gdp so if we spend a trillion to support ten trillion or 11 trillion, i think thats a significant investment and thats what were focused on is there a certain segment that is particularly vulnerable . I just want to make one comment for explanation because i want to make sure everybody understands this if youre an independent contractor and sole proprietor, you are eligible for this as well that program wont be up and running until next week, but this is a very broad definition of Small Business. If youre an independent plumber, if youre an independent contractor youre covered under this program slightly more complicated, you have to come into their bank and give them more information, but starting next week that part of the program will be up and running. Also charities charities, as well very important the Vice President and president made sure that we covered small Issue Charities in this. Churches and religious nonprofits . It does although there are some technical issue, but yes, it does include faith organizations. And thats under the sba program . Under the new ppe and the new sba program, they are covered. Okay. Thank you all very much thank you, steve thank you okay so that begins right away and they start handing out checks and a lot of people will have their businesses built back up quickly, i hope, and well see complicated, big, Small Businesses and actually big business so i thank them both, and please, good we have some great gentlemen let me see, great gentlemen, thats correct thank you very much. Today my administration is also issuing new guidelines to protect elderly americans who remain the most vulnerable by now Nursing Homes should have suspended the entry of all medically unnecessary personnel. Today we are further we will step away because the business part of the White House Press briefing does seem to be finished and major headlines crossing from treasury secretary mnuchin. Two things that stick out. Theyll raise Interest Rates on the loans and if you are a sole prop righter, you are a business of one like so many are, this program will work for you. It wont be rolled out until next week. You will have to fizzecly physi into a bank, but secretary mnuchin saying yes, this program will work for you. Will fr wilfred frost monitoring it, as well we broke that j. P. Morgan chase most likely will not be ready to accept applications tomorrow as you just said, the treasury secretary made some fresh announcements and alterations to the tpp plan increasing Interest Rates from 0. 5 to 1 and i can confirm that had never been a concern of chases that alone wont change their decision on this, their readiness. Their concern is they havent had the broad guidelines from the sba in time to be ready for tomorrow and under that same issue, i can confirm that one of the other top four lenders in the nation whoey spoke to about 20 minutes ago and also in the same position. Without those guidelines they are also not ready to go by tomorrow though they had a slightly more optimistic tone to it saying if the guidelines came in they could be ready within a couple of hours after that again, not something we got there from secretary mnuchin in the press conference one other point that stood out to me during the press conference, brian. The treasury secretary made clear than the 350 billion that was allocated tothis they will get back in front of congress, that is particularly important if tomorrow this does go live with only some banks being ready and others not because you need to apply Small Business to your existing bank to get one of these loans if you want to get it quickly if all of that 350 billion got drawn down very quickly before certain banks were up and running then Small Business customers may be excluded by virtue of simply when they bank with and it is important there to hear the treasury secretary there say theyll seek to extend the size of this program if necessary. He was clearly very optimistic and he said it would be up and running. I spoke to the ceos last night and they said theyre doing everything they can, but we know as of 40 minutes ago, fresher than last night chase saying most likely they wont be ready. Brian. Yep makes it all the harder when a lot of people are working remotely as we are, wilfred. Businesses need that, wilfred frost, thank you very much lets bring back in our trader panel. Treasury secretary saying this is not a bailout youve got to keep your routes you have to keep most of your employees and this might not be for you. Are you happy visavis the airlines and the Airline Stocks . I was happy with it because i think those are unprecedented times as we all know and weve all talked about it and unprecedented measures that the government will throw at this. So they have to go out there and they have to say there are Strings Attached what does that really mean it doesnt mean theyll let them fail so today the airlines did not act well we saw the hotel stocks and they did not act well it sounds like if you ask this administration is going to give. I would be a buyer of delta. Its too early to be buying these stocks now you have to weight for a real confirmed rally, but i think ultimately, go to where it was before the whole thing started and by the way, brian. Did you hear the numbers he was throwing around . Back at the top of the show thats why gold will continue to move higher and make new highs, but airlines, youre safe, not now, when the smoke starts to clear. Yeah. I mean, nobody ive talked to thinks the 350 billion for Small Business is going to be enough that aside, guy adami, these airlines, we had an Airline Analyst last night, the days are running into each other, hunter k. Thought these airlines will take the money and theyll still need more down the line. Are the airlines investable at all right now . In my eyes, i dont know how you can. What is the Airline Industry going to look like six months from now will people be clamoring so sit in middle seats . Will there be middle seats its hard to answer that question and im just being honest i want to dove tail on what steve said because hes 100 right. One of the things i heard mr. Mnuchin say is we had 6 trillion at our disposal no, he doesnt they can make it up. They can create it out of thin air, but they dont have that at their disposal grew started the show asking why gold is going higher thats exactly why gold is going higher yeah. All right, guy, and steve thank you very much. Tim and karen, well get to you in just a moment and we want to bring in a special guest kevin cramer, a republican from north dakota who joins us by phone enroute to the white house. Thank you very much for taking some time. First and foremost, i want to ask about protocol are you okay fiphysically going are you being or have you been tested for covid19, obviously as i understand, the executives of these Oil Companies either are or will be thats my hope, as well, that i can be tomorrow. I have had zero symptoms and i havent completely selfquarantined since being from washington to north dakota and ive been locked in to my own space doing a lot of this and a lot of Conference Calls and a lot of meetings. So i feel very good and well take every precaution. Okay when i put the news on cnbc, the seven ceos that were going and what was likely to be discussed everybody started screaming bailout. The Energy Companies are very keen to tell us the media and others this is not a bailout is this a bailout of u. S. Oil and gas . Not at all theres no one asking for one. Im not suggesting one my main interest is policy around saudi arabias behavior and particularly, of course, especially in conjunction with rush abu the oversupply of an already glutted market at a time when demand was down is just the wrong move for lots of reasons, but especially at a time like this because its my sense that theyre taking advantage of this coronavirus situation and the drop in demand and its trying to put the american shale business out of business and in north dakota, we take that pretty personally. Sure. Ive met a lot of good people in the business and some people, senator, will push back and say, well, the industry simply grew too fast took on too much debt and overproduced what do you think about that well, you know, we have a lot of agriculture in north dakota and sometimes the same is said of them, but i would say this, that in the normal course of business i would agree, but when hit with a virus like this, a pandemic thats global and demand was down nearly 25 at the time that russia and saudi arabia decided to cut production, increased production by about that same percentage, to me it looks like dumping. To me it looks like collusion. It looks like a direct attack on the shale industry trying to put the United States out of business and theyve tried this before and we were able to outproduce them. They hopefully have learned their lesson, but now in this time of pandemic, it doesnt look good at all its also, brian, and ive been pretty open about this, this is a time when the United States of america has at least 2500 servicemen in saudi arabia we have several Missile Defense batteries defending the oil assets of their country and we stood with them in the war on yemen and we defended their assets and now at a time when they were just attacked a few days ago and i talked to the ambassador today about it, but for our Defense Systems those missiles might have struck riyadh instead, they were stopped this isnt how friends treat friends. So my hope tomorrow is frankly, what id like to see the president do is make an appeal, not necessarily a policy, but an appeal to the multinationals and the refiners that they use u. S. Crude during this emergency and show some corporate patriotism in that way. You have, senator, the power of the u. S. Senate behind you. If the idea of quotas, production quotas, divvied up by company, public and private, is brought up would you support the idea of artificially limiting Company Output well, that i would have to be convinced of, brian, i dont mind telling you i would just as soon, and i would like to see it i wouldnt like to see it manipulated by our friends and adversaries. Wed have to see i prefer some sort of a voluntary action by the refiners we currently export about the same amount as we import if we cut off imports for a while at least during the emergency and retooled our refinery to the degree they need retooling to take u. S. Crude, i think we can keep our industry afloat i think that would be a reasonable Emergency Response at a time like this senator kevin cramer, well let you go we know youre enroute to washington be safe, first and foremost and let us know what went down at that meeting tomorrow. Thank you very much, sir. Thanks for the opportunity as always sure, thank you, sir. Tim seymour, huge move for oil and a big move for stocks. Cold comfort, and based on what you heard, would you change your views on oil and gas at all . Well, i dont think you should be changing anything in terms of understanding the supply demand fundamentals each in the short to medium term. Getting a deal is about changing sentiment in the sector and obviously then changing supply fundamentals and i think there has to be one, and i love the fact that the senator referenced all that we are doing in that part of the world and at some point enough is enough so i think the 48 trough to peak intraday move on brent or crude or i tend to follow brent. Extraordinary, tells you where positioning is right now we dont have to chase oil here and i think the bottom is in for this cycle all right lets start to wrap it up here Karen Finerman, your theme for the markets tomorrow, looking out next week, next month. Whats key to you . Key to me is the credit markets. I want to see them continue to function, and there is a little firmness today weve seen some, but to me, credit will drive the equity markets and then, of course, any news on coronavirus and any hint of flattening the curve. Yeah. And steve grasso, 30 seconds to you. What are you watching for . Yeah. So you have to see corona is leading the market, but getting back to oil, ten times more important than the cut is when demand comes back and that will be dove tailed where corona cases. Corona is leading it, oil is secondary. Amazing, guy adami. 6 million plus americans file for unemployment americans and we barely brought it up and do you care about the jobs number tomorrow morning of course, i do, because its real people. Theyre not just numbers do i care about it i absolutely do, brian thats why i care. Yeah. Every one of those numbers is an actual person and a family thank you for joining us o my mission is simple, to make you money im here to level the Playing Field for all investors. Theres always a bull market somewhere and i promise to help you find it. Mad money starts now hey, im cramer. Welcome to mad money. Welcome to cramerica other people want to make friends. Im just trying to make you some money. My job is not just to entertain you, but to educate, teach you, put it in context call me 1800743cnbc tweet me jimcramer. This market is so desperate for good news that buyers are willin