Transcripts For CNBC Squawk Box 20240713

Not a surprise if you look to see whats happening with the shutdown of the economy, the forced shutdown because of coronavirus. Taking a look at the tenyear this morning, it looks like that is yielding about 0. 735 at least on the last time i looked at the boards it was. And then wti is the other big story today. Joe also mentioned opec plus deal it was an historic one opec and other nations agreeing to cut Global Oil Production by onetenth. Well talk about this in a few minutes. Wti is up by 1. 5 to 23. 11 a barrel. We have a huge lineup of squawk newsmakers including Mohamed El Erian, Richard Preston and dr. Scott gottlieb starting in a few minutes. Andrew thanks, becky hope everybody had a great weekend. Lets bring everybody an update on the pandemic. Of course, the number of confirmed cases in the United States now more than 557,000 and the death toll is more than 22,000 there are 190,000 cases in new york state with more than 9300 deaths that means new york alone has reported more cases than any foreign country, to put it in perspective. A sign of hope, though, in new york city the number of daily icu admissions and intubations showed a downward trend using a threeday average. New york mayor de blasio said saturday that Public Schools would stay closed for the remainder of the academic year, but shortly after, a sort of back and forth with the with Governor Cuomo, new york Governor Cuomo said the announcement was bill de blas blasios opinion and there was no official decision yet cuomo said new york may close Public Schools but it would do that in cooperation with other localities lots of folks in the state of new york trying to figure out where this all goes and its impact on employment as well meantime, new jersey governor murphy ordering transit to cut capacity by half and asking all passengers to wear face coverings. Transit workers will be supplied with gloves and face coverings as well. A lot going on in the tristate area joe . Boris johnson, andrew, has been released from a London Hospital where he was treated in intensive care for the coronavirus. His office said he left st. Thomas hospital and will continue his recovery at checkers, the prime ministers country house. And he will not immediately return to work he had been in the hospital for a week and we watched that closely and sort of incredulous the World Leaders obviously not immune to this either. Its been for a week he was there and spent three nights in the icu. Separately the irs says it started depositing stimulus checks into accounts of qualifying americans in a tweet the irs account said theyll continue issuing the payments, in their words, as fast as they can the money is part of a 2 trillion relegal bill passed in march. Taxpayers can expect 1,200 to 2,400 based on their income and filing status from 2019 and 2018 todays the 13th, which would normally be accompanied with some butterflies and panic and have i have we filed for an extension, but not so much this year did you, becky and andrew realize it was the 13th today . Of april no, i didnt. Your big day is coming, andrew. I sent my i sent my stuff to my accountant i kind of forgot it snuck. What did you say . I sent my stuff to my accountant it snuck up up on us so quickly. Thats true i havent done it yet, joe, so im going to take the delay with everybody i do think i know you think its my favorite day i think theres going to be a complete rethink of how we think about taxes in america when this is all over. I think its almost impossible to think, given the support the government is providing all of us, that were not going to have that conversation in this country. Well see. I dont know if you dont owe more than 1 million, you dont need did you have to send anything in i think i think i sende sent something in. To be honest, i dont know what weve done maybe given the pandemic, im not on top of it i think my accountant is on top of it, or at least i think my accountant is on top of this we did do work on this a month ago before everything started to shut down. I think something started to happen, but im not sure exactly what meantime the Energy Markets are the thing i think everyone will be focused on today. Interesting to see how the equity markets are keying or not keying off energy right now. The group pelosi as opec plus finalizing a record agreement over the weekend to cut production by 9. 7 Million Barrels of oil its the largest output cut in history. We want to get to over to the response to washington. President trump congratulated saudi arabia and russia on that Historic Deal on twitter writing it will save hundreds of thousands of energy jobs in the u. S. He said he spoke with russian president Vladimir Putin and king salomon from the oval office, great deal from the white house they said the president spoke to Mohammed Bin Salman either way, as you know very well, the president has went personally involved in these negotiations not just trying to keep saudi arabia and russia at the table but also promising to move ne mexico along and intervening directly with president obrador. We dont want anything to hurt our incredible industry actually, the largest producer in the world now we dont want anything to hurt those jobs, those great jobs in texas and north dakota and oklahoma and everywhere. North dakota senator kevin cramer along with alaska senator dan sullivan led a twohour phone call over the weekend between saudi officials and other lawmakers from oilproducing states perform after the deal was announced, senator cramer wrote on twitter, we know this fight isnt over. We have to make sure these countries hold up their end of the deal we will be watching every step of the way an important victory for the president as installment negotiations over the next package of coronavirus aid remains unsolved back to you. Thank you for that. For more on this story later this hour, well be joined by senator dan sullivan of alaska to talk to him about how he sees the impact of this on his state. Joe, over to you. Was anyone thinking it was going to be mexico watching it over the weekend plus, i was waiting to see, do we hit the 10 million . Remember the president said, could be 15 million. Remember, he put that extra in but to get close to ten, there was a lot of skeptics about that but, what, the holdup is mexico and were talking hundreds of thousands of barrels were not even talking but that was it. I guess behind the scenes there was some serious armtwisting to finally get here the oil markets ran up to 27, 28 and then nowhere near that since then i dont know its crazy. By the way, mexico won in the deal they still only have a cut of about 100,000 barrels. Which is below what would have been their quota for the whole thing. Kind of amazing. You wonder how much is, okay, were cutting production and how much is the market forces. You cant pump out any more. Theres nowhere to put it. Theres nowhere to store it. I dont think we agreed to anything, right . That was part of the problem. Hey, joe . Yeah, andrew. Before we go back to energy, back to the taxes for a second do you think i thought the delay was just till the 15th of july you think its depending on how much money your taxes are owed no. I think you get the delay as long as you dont owe more than 1 million if you owe more i think you need to send it in thats why i was kidding you and you said you thought you had sent some in i was like, wow, andrew, those books are really, really lucrative. Well, i dont ip dont think youre right about that. Really . Thats what i thought. Thats what i thought. You might be. Im looking right now. It doesnt affect me. Doesnt affect me. Thats all i i dont want to get into my tax bill, but when you said that, i thought, hmm, i have to think about this. Well, i cant believe you owed money. Were talking about taxes on tv. Was that deal book or something . It cant be the New York Times i have to look at this. Doors are barely open at that joint. I have to look at this. Thats not true. Subscriptions through the roof, my friend. I know. I know. Business is i know that you make these comments its fake news you think any oh, they do do fake news that is true that is true oh, you meant what i was saying was fakenews never mind let me do my tease let me do my tease you before i please you coming up, Richard Preston joins us with perspective on the pandemic and what we can learn from previous outbreaks. Kind of interesting some of his comments about ebola and how long countries in africa have dealt with pandemics for centuries by doing exactly what were doing. Kind of interesting. Plus, President Trump retreating retweeting a call which says, fire dr. Anthony fauci. I think it was from a Congress Person that story after a quick break as a struggling actor, i need all the breaks that i can get. At liberty butchumal cut. Liberty biberty cut. Well dub it. Liberty mutual customizes your Car Insurance so you only pay for what you need. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Yeah. 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. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Welcome back President Trump signaling his frustration with dr. Anthony fauci. He retweeted a tweet that says, its time to fire fauci. That tweet was from a former republican congressional candidate who said fauci is now saying that had trump listened to the medical experts earlier, he could have saved more lives fauci was telling people on february 29th there was nothing to worry about and it posed no threat to the u. S. At large. Time to firefauci the president added his own message to that tweet. It said, sorry, fake news. Its all on tape i banned china long before people spoke up. Guys, this was in reaction to an interview fauci did yesterday where he was pressed and asked very specifically if the administration had started implementing these lockdown orders quicker, would lives have been saved he said, well, inevitably but there was a lot of pushback on it and a lot of questions whether that was the right path. Again, this is kicking up a bit of firestorm this morning. Joe . Yeah, we would have been i think the country as a whole would have been like, what are you talking about in february. I can remember early in march. We went through it we know exactly how it proceeded. Thats why even the piece over the weekend, i was like, well, okay, january 31st is pretty early to close down travel with china. A lot of flack midfebruary, come on, i think i went to dinner in march to a restaurant and didnt think anything of it at that time. I was still traveling all over the country in february right jake tapper, i well, andrew, i dont want to i dont want you to get uptight its monday. Lets not start off the week you remember in february. I was going to say, the point of the reporting, all of this reporting, had we moved faster quicker, obviously we would have had a lot less deaths. Obviously and its clear now by definition. While there might not have been a political appetite to do this or public appetite to do this, until people started to see people getting sick and to see deaths, had you actually listened to the Health Experts we understand that. Youre lecturing again youre lecturing again i understand that. We all know that if we had shut down january 22nd in davos when i asked him that question for the first time, that would have been the time to shut it down that didnt happen it was tough enough just to close off travel with china on the 31st. Every week was a lost week. Of every every week was a lost week. The more important question is the bigger question by the way what do we do now when do we open up again the other thing i was going to say, you can also make an argument politically look at mayor de blasio, who has been a disgrace to the city of new york a disgrace in terms of what hes done by the way, you could even argue that the governor of new york, who gets an enormous amount of credit today, was also late. So im not suggesting its impossible to be late. Im not saying you are. Access to the information and what they did. Im not saying you are. Im just saying youre like so many of the people around they have 20 20 hindsight. Its annoying to see it. Mers, sars, swine flu, ebola, all of those things could have turned into a pandemic, but they didnt so, no one knew in january or early february they had guesses they had speculation it could turn into Something Like that, but it was not possible to have closed everything down then. We hear right now about martial law. We have people saying we shouldnt be doing it right now. In midfebruary, youre out of your mind. Joe, every day and every week we could have gotten ahead of this, it would have been better. I know that i understand that. I had virology courses i understand that. You cant make excuses for people then. You cant say its reasonable they didnt listen to the experts. Which expert in midfebruary would you have listened to i think you would have been listening to all of them and listening to all of these things coming into the white house and say, okay, lets shut down things a little earlier. I was on our air saying we needed to shut things down two or three weeks earlier im not saying i was a prophet, im just saying people were nervous about it. We were way into midmarch, andrew, and you were the first one to hear about chloroquine if we shut down in two weeks in march obviously. We would have saved thousands of lives. We know all that. Yes, we know that. It was not probably feasible to have done that couldnt have done it. Lets get to this guy, andrew. You have the soap box. You built one over the weekend its 20 20 hindsight. The National Institute of health is beginning a study for those who may have antibodies to coronavirus. Bill gates, cochair of the bill, and linda gates had to say on using the blood who recovered from the virus to treat those who contract it. Manufactured antibodies are using the blood of recovered patients in order to help treat people who are just getting sick theres enough of them that in ago gate its likely well have interventions in the four to sixmonthtime frame how much that will cut the death rate in these overloads, you know, is a bit uncertain for perspective on such treatments and what we can learn from previous pandemics, Richard Preston, author of the hot zone and the new book crisis in the red zone. Lets first talk about mono clonal antibodies. Weve done it with a lot of different diseases theres proof of concept there that it works. It should work with this whats the issue with it not being a nearterm solution do you need to humanize the antibodies are they hard to make in large quantities what should preclude us from doing that, as its had success with other viruses bill gates mentioned manufactured antibodies. Hes definitely on the right track, i think what were talking about now are antibodies that are used as a drug to treat the disease. Were not talking about the antibody test, which is a different matter manufactured antibodies, monoclonal antibodies, we have the ability to make lots of them getting up to Surge Capacity is another matter entirely. What are antibodies, what are we talking about . Antibodies are these tiny proteins that circulate in our blood and the human blood is thick with antibodies. Its about 2 antibodies antibodies are these little proteins that are they have kind of a y shape but different shapes theyre like the teeth of a key that fit into a lock and if you can find an antibody, a particular shape of antibody that can stick to the coronavirus, it can kill the coronavirus. Now, people who are infected with coronavirus, your antibody system is incredibly powerful. Whenever you get infected with anything, your body begins manufacturing many different kinds of antibodies to respond to the challenge, to the invader in your body and so people with coronavirus, they might have 500 or 1,000 different kinds of antibodies that your immune system is just throwing at that virus to see if something sticks, something will kill it. And then your immune system, you know, it can recognize the antibodies that are actually working against the virus and will make them in large quantities now, how do we get from that to a manufacturing plant making these in quantity . The way its done is you get the blood of somebody who has survived coronavirus and then you take out of that blood hundreds of different kinds of antibodies that might work on coronavirus. You test it out in test tubes and in mice. You find out the antibodies that really work and then you can purify them and with a manufacturing plant that maybe cost 1 billion, you can then begin to grow them in tanks, which are called bioreactors what you have left is an antibody drug. It looks like its amazing. It looks like water. Its actually purified water that has maybe two or three different kinds of antibodies dissolved in it. This is called an antibody cocktail it is then given to a patient who is sick with coronavirus if all works, if this theres many a slip between the cup and the lip but Many Companies are working on this now. If it all work, the antibodies can, in principle, knock out the virus really fast. So, this happened with ebola and one company developed a drug it was this little antibody cocktail, just water, looks like water, and its infused into a patient with a bag of saline solution the first patient who was given the antibody drug was actively dying of ebola this was dr. Kent brantley, an american and he was really in the throes of death when they began to administer the drug. And he turned around in 90 minutes. 90 minutes after he started getting the drug he sat up in bed he had not been able to move in three days he got out of bed and he said, id like to go to the bathroom he went to the bathroom under his own power. So these drugs, if they work, they can reverse they can reverse the disease with remarkable speed they basically kill every virus particle in your body. Now, you know, can we really do this in a large scale . Thats a whole another question. Now, theres a Company Called regeneron, working on this, a number of companies. At best, if all goes well, maybe by august we might have the ability to manufacture 100,000, 200,000 doses of an antibody drug now, thats not enough to treat everybody. If this works, theres going to be a big question, okay, who gets the drug. And, you know, it will be Health Care Workers, Health Care Workers who are infected, patients who are really sick and could die. And the drug, you know, at best could save some lives, but its not going to be an ultimate solution right away. Now, looking to the future, lets talk a little more about the next pandemic because this is a process of nature that is going on right now were in the middle of a kind of viral storm. These storms come along. Theyre coming along more frequently because there are a lot more humans on the planet and were now crowded into these giant cities its a perfect petri dish for a new virus to get going in the future, we can hope governments and companies will invest enough and do enough research so we can have readymade platforms for antibody drugs and also for vaccines so when the next pandemic comes along, we can respond more quickly, we can make more of the drug, we can get it to more people, more quickly and we can damp down the effects of the pandemic this way. This is the future you know, i read a lot about really grisly viruses and horrifying human circumstances the truth of the matter is im kind hey, richard, question to you about antibodies but really in the context of this concept of herd immunity. We seem to be getting conflicting information about what happens once youve had the virus, whether you genuinely are immune to it, whether youre immune to it for a period of time, whether its days or weeks or much longer from the research youre doing, what are you hearing and what are you seeing given that we seem to get this conflicting news on that at the moment yeah, that is such an interesting question we dont really know if antibodies alone if you can get sufficient immunity to this virus to gaurn teen you wont get it a second time thats a big question. Maybe coronavirus is, you know, slicker than some other viruses. Maybe its a little better at evading antibodies in the uhm municipal system, so maybe the antibody drugs wont work quite as as well its only a question you can answer with science. You can only answer it with controlled Clinical Trials that takes time. What is your point about how we didnt really handle ebola the first time around over in africa, richard . There are cases again. What are the possibilities that i mean, if this was ebola instead of coronavirus, im not sure im not sure where wed be as a society is that possible and what did we do wrong a couple of years ago because we mostly got rid of it but now its reemerging in africa right now, i think, right . Well, you were talking earlier about how we werent really thinking and ready for the pandemic and its understandable. The same was true with ebola in africa you know, and it first broke out in some rural hospitals in africa it was killing people like flies. It turned out to be as contagious as the common flu so, were talking about a potential nightmare here and when experts began trying to warn people in washington that a crisis in a small, forgotten hospital in africa is actually a crisis for north america, people werent prepared to listen i think we, we as the human species, have to kind of get a different perspective on nature and on these pandemics the human species right now is fundamentally fragile. You can see this in the coronavirus pandemic, which began with one person. One person probably somewhere in wuhan, china, who got a cold from a bat got a bat sniffle. And, you know, months later, the Global Economy is having a heart attack and it could, in theory, i suppose, have happened with ebola. It has happened with coronavirus. And there will be others in the future so we do ourselves a favor if we think hard and long about how to harden the medical system and how to harden Public Health to deal with these emergencies. A combination of that and a really Quick Technology platform as we, you know, are understanding of immunology gets better and better, it will be possible to do this more quickly, i would think we are able every year we try to deal with seasonal flu. We we didnt know in 1917 or 18, we didnt know the human genome watson hadnt even discovered the structure of dna at that point. We didnt have antibiotics hopefully its frightening to think of ebola if this was a pandemic of ebola because the mortality rate is so much higher it would literally be like Science Fiction. You wouldnt leave your house without a full hazmat suit, i guess. Richard, thank you its sort of like were living suddenly the world has become Science Fictiony in a way, but in a bad way. No doubt. Its both Twilight Zone and also a time when technology can make a difference. No, no, jetsons would be better for me, flying cars this is the wrong Science Fiction future anyway, Richard Preston, author of crisis in the red zone. All of your books have zone in them these are bad zones. Hot zone, crisis in the red zone. We appreciate it well see you again. Some comments from a wellknown venture investor. Longtime squawker getting some attention over the weekend about which sectors investors should be allowed to fail hell debate it right after the break. As we head to a break, here are some images of the Pandemic Impact yesterday across america. In nearly 100 years serving the military community, weve seen you go through tough times and every time, youve shown us, youre much tougher your heart, courage and commitment has always inspired us and now its no different so, were here with financial strength, stability and experience you can depend on and the online tools you need because you have always set the highest standard and reaching that standard is what were made for its a voice on the other end of the phone. A note to say youre on our mind. A willingness to come to you. The world and how we interact with each other is changing. But that will never change who we are at lexus. Now, more than ever, you and your needs come first. Find out what Service Options are available in your area at lexus. Com people first time now for the executive edge some comments by venture capitalist Chamath Palihapitiya picking up steam as the government looks for bigger bailouts amid the pandemic heres what he said last week on the halftime report. Are you arguing to let airlines, for example, fail . Yes why i mean, how how does that make sense in the broader scheme of the economy because its not when you look at what it means this is why im saying, like, this is a lie thats been purported by wall street. When a company fails, it does not fire their employees it goes through a package bankruptcy if anything, what happens is the people who have the pensions inside those companies, the employees of these companies, end up owning more of the company. The people that get wiped out are the speck laters that own the unsecure tranches of debt or the folks that own the equity. By the way, those are the rules of the game. Thats right because these are the people that purport to be the most sophisticated investors in the world. They deserve to get wiped out. Chamath hitting on fubd mental debate taking place he said the government should not bail out hedge funds and the wealthiest investors, guys there really is a debate, not just about how to keep employees in their jobs, but whether we should be effectively creating a safety net for everybody or for some andrew, i dont know that thats entirely correct this time around. If there was no package that came in by the way, im not saying you need to defend the shareholders for these airlines, but if there was no package that came in, this wouldnt be a traditional bankruptcy where the Company Keeps operating and you try to find ways to get rid of debt, cut costs. Theres no revenue coming are in for the airlines its an essential part of our Transportation System in the United States. Again, not saying you have to bail out the shareholders, not saying you have to bail out anybody else that comes into this, but this is not like typical times. If they were to go through a bankruptcy right now, how do you restructure to make sure that you right size the cost . Doesnt happen when theres nothing coming in. No ones the real issue is that the airlines did some things obviously that in hindsight the buybacks, for me, the silly esg things, the virtual signaling of delta air lines, et cetera, but you do we all want a vibrant Airline Industry whether the unintended consequence if you sacrifice the shareholders for something, in this case, that was beyond most of the Airline Industrys control. Covid was beyond the airlines control. Like a lot across the board, a lot of the companies in the United States didnt bring up pandemic upon themselves for the most part. In the future do you want shareholders to return to funding airlines and putting capital into that industry its an argument you can have with chamath i guess great ceos should think of every black swan that could possibly happen and shareholders i dont know whether id call airline shareholders speculators, i think theyre investing in this. Remember buffett for a long time wouldnt invest in them. He finally came back to invest in airlines. They try to do prudent things and then you get hit with Something Like this. I do want to andrew, you love traveling more than anyone i know and you hate the airlines more than anyone i know i dont know how you no, thats not true. Unless you plan on driving or walking. I have i have a very particular view about this we either have to decide as a country that we want to save everybody, that weve decided that were putting everybody in a time machine and trying to save everybody, shareholders included, because this is a Natural Disaster and were going to treat everybody the same, or were not. If were going to pick winners and losers, its not clear to me if were going to do that, its not clear to me that the shareholders of the airlines unto themselves are a special category of person that should benefit. Employees, 100 . Shareholde shareholders, less so. To me, we either save everybody or make choices about how we want to do it. Thats but theres going to be more choices. Go ahead. Were saving most shareholders in a lot of industry, andrew, because of covid, not because of no, thats what im saying. Bad behavior or but we need to decide that. If youre the owner of a restaurant, you ultimately may not really get you as the shareholder, if you will, you may file for bankruptcy in the end. You may lose all of your equity. We need to figure out how were going to deal with the Small Business owner, whos losing relative to the airline. I want to keep the airlines in the sky. We need it for the economy again, im not convinced in this particular instance that the shareholder has to that we have to decide that airline shareholders are if they are special, we need to that should be priced into the stock in a very, very different way, in which place the taxpayer should also have some upside, too. We just have to figure out what that looks like. It will be structured that way. The other question is, do you bail out somebody like the cruise lines, which most are domiciled in other nations and most of them employ mostly people who are not u. S. Citizens theres all kinds of questions theres just too many questions. Well discuss this more. When we come back, well be speaking with alaska senator dan sullivan about the record deal to cut oil production. If you take a look at u. S. Equity futures, were under a little pressure. Dow looks like its down 250 points this morning. The s p is down as well. Of course, this comes after a huge week for the markets last week where the s p saw its best week in over 45 years. Squawk box will be right back. At t has connected us every day for over 100 years. And were here for you especially now, 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. Veterans, in times of crisis, youve served our country. If youre a vet and youre experiencing any symptoms of the coronavirus, please contact your local va hospital. Protecting your health is our greatest duty. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Welcome back to squawk box. Opec cutting production of 9 billion barrels a day in an effort to stop the price plunge during the coronavirus on the phone this morning is senator dan sullivan from alaska we appreciate you joining us, senator. Thanks for getting on the phone with us. Good morning, andrew. Good to be back on the show. Thanks thank you for coming on in terms of what you think this is going to do for jobs in your state, what do you think the impact is going to be and what do you think its really going to be on the impact of the price of oil Going Forward its i think an important agreement. I want to shut out particularly to President Trump and his team, you know, theres been a number of senators who have been working in support we had a twohourlong Conference Call with the Saudi Energy Minister on saturday, but the president particularly working the phones over the last several days who brought this together so, look, i think the most important thing immediately is it ends the price war thats been going on. Its going to reduce pressure on prices and to your question, you know, i think hopefully its going to stem the job losses, which have been massive in alaska i mean, conocophillips recently announced laying down all its exploration rigs in our state. Hundreds if not thousands of jobs its good news, but the implementation, of course, is going to be the key. How long do you think this lasts . And what do you think this means between the relationship of russia and audi and u. S. Going forward during this pandemic or whatever else you think continues over the next few months on its face its a twoyear deal it is historic if you look at the numbers. The saudi, which in many ways started this price rout that started right when the pandemic hit, are committed from going 12. 3 Million Barrels to 8. 5 million. Actually, a little under 8. 5 million. Thats the lowest level since 2011 thats going to be important the Energy Minister told us there were 13 senators on the call with him saturday, that theyre willing to do more if they need to as you know, a lot of this is demand not particularly the supply shock. The supply shock particularly from the saudis started this major decline. Look, one of the things we said with the Energy Minister, letter to the crown prince, is, you are now taking actions that are directly hurting our constituents by the thousands if not tens of thousands and were going to reevaluate the importance of the u. S. Saudi Strategic relationship, including whether we should keep troops in there to protect your country. Were still going to evaluate that, but i think for now this is an important first step again, actions will speak louder than words on the implementation do you know what the average price of wti has to be in the state of alaska for most projects there to continue you know, alaska was having a real renaissance, andrew you know, we probably have the hottest, most prolific energy play going on in the world independent energy companies, some of the big ones like exxon, conoco, are finding new, huge discoveries. Conventional discovering of over 1 billion barrels of oil these are, again, some of the most prolific exploration results anywhere on the planet, and its next to existing infrastructure the transalaska pipeline, as you know, is twothirds empty. So, its expensive to do exploration in alaska, but you pretty much find a lot of oil. So, the numbers where were at right now obviously are negatively impacting our workforce. By the way, these are great jobs in alaska, throughout the country. I dont know exactly what the price is but, you know, weve been through these difficult times before what we really needed, though, was an end to this price war and the stability that that would bring. Thats why this announcement is important. Again, were going to watch the implementation very closely. Senator, before i let you go, you know, we talk about demand destruction, thats in large part because, you know, much of this country and around the world is staying at home or in some form of quarantine. We imagine this may start to happen in south america as well. Im curious what your timeline, just for the United States, looks like the way youre thinking about it. Back real quick, andrew, on the energy side. One thing thats another important aspect of this deal and this sector, im sure you and joe and becky remember 20082009. When we came out of the recession, the sector that really drove the recovery in the United States was the Energy Sector estimates of upwards of half the gdp gains in our country countr from the resurgence of a strong Energy Sector. Were going to need that strong Energy Sector to get us moving again here look, as the president said, its going to be a very tough call on restarting the economy its obviously going to be driven by data, the combination of the Health Issues testing is going to be key massive testing. And then, you know, the guidance from the federal government is going to be important, but as you know, were a big country. Its probably going to be more mayors and governors who are going to be making calls in different parts of our nation as we look to restart our economy, open society, which is going to be really, really important for the economic and health of americans. Senator, we appreciate you joining us, as always. We wish the state of alaska and the energy world as much luck as all of us can have during this pandemic joe, over to you all right. Coming up, much more to get you ready for the trading week ahead. Heres a look at the biggest decliners in the s p 500 later, were going to talk to the ceo of doordash and how his company is being impacted by vis. Naru how its doing its part to combat coronavirus well be right back. We cannot do all the good that the world needs. But right now, the world needs all the good that we can do. To everyone working to keep america strong, thank you. Welcome back, everybody. As covid19 continues to hammer the economy, the Insurance Industry has been thrown into a bit of a tailspin. Lets welcome eric denalvo eric, weve been checking in with you pretty routinely about whats been happening in the Insurance Industry youve warned us how legislatures are thinking of changing the rules so that Insurance Companies would have to pay for Business Operations stopping even if they werent insured, if it wasnt in the contract whats happening now at the National Level what kind of things are circulating for congress it feels like its level. You have two things. One is a prospective can you hear me . Is that okay were dropping out on some of the audio there, eric. Lets go ahead and see if we can make this work okay. What you have is it is a prospective solution that goes towards making sure that the insurers come into the market but all the while have some kind of a backstop or some sort of a cutoff because the enormity of the losses are so big. This is what they did with terrorism insurance. The curve looks like this, but the events can go off the screen so tria or new pandemic reinsurance act cuts the tail so that insureds can underwrite and tell you what the real crises is for Business Interruptions without the exclusions but what happens retroactively . I mean, most of this most of these contracts that were written did not include Business Interruption for a pandemic. Right. What happens going back so i think i mean, i think whats going through congress and what the regulators seem to support is a Small Business bailout or aid or whatever the words are not to undue the exclusions, not to make insurers pay for insurance claims that they didnt write. They specifically carefully excluded Business Interruption exposure caused by pandemic, viral, epidemic events, so i think whats happening with congress and with the support of a lot of the regulators is that theyre contemplating doing this infusion without regard to whether you had Business Interruption insurance or not. Only 30 of the Small Businesses i believe even had Business Interruption insurance and in a great, great majority of those had exclusions caused by pandemic or epidemic so really i think the fair solution, the right solution, the one that keeps the Insurance Industry in the market because these claims if permitted, if they were undone, they would completely dwarf all of the surplus that the industry has and it wouldnt be fair because they never wrote that risk i think that congress is considering some kind of an infusion the regulators support it. You do see various states, as you referred to earlier, that are kind of popping up threatening through legislation to undo the exclusions, but that seems unfair and very, very bad for the industry or the economy, theyre going to want Business Interruption insurance the industry has to feel that they can come in, probably with some pria solution, pandemic reinsurance act to write that insurance. Eric, we are short on time today so we have to go i do want to come back soon and see what you are seeing in the disability markets as well a lot of different wrinkles. We appreciate your time. Its really good talking to you. Thank you thank you very much for having me okay. Thank you. Andrew okay when we come back, ken langone is going to join us. Hes going to tell us how new york City Hospital network is handling the outbreak. And then later, mark cuban is going to talk about the response by investors to the extreme market volatility. All of that coming up on uasqwk box. Two big hours ahead. Were back in a moment 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. Coronavirus cases in the United States now topping 550,000. President trump set to announce a new task force that will focus on getting america back up and running. We have the details straight ahead. A big week for the markets as earnings season gets underway well tell you what to get ready for and what could be the most gloomy quarter in years. Opec and its allies agree to a record cut in production its a move some see as the life line for the industry. That story and your corporate headlines all coming up as the second hour of squawk box begins right now good morning, everybody. Im Andrew Ross Sorkin with joe kernen and becky quick take a look at u. S. Equity futures. Looks like the dow would open off about 236 points nasdaq off about 76 points s p 500 off about 28 1 2 points. This is after a huge week yesterday. We do have this oil deal between the saudis and russia. A lot of that baked into the market perhaps well show you the tenyear note and wti crude. Ten year at 23. 13. It seems like that, andrew. You said after a huge week yesterday. That does seem like that everything sort of melding together anyway, the markets kick off another big week of trading. Oil earnings and the coronavirus all in focus we have a big lineup, squawk newsmakers to help us break down this mornings news, including ken langone. I think hes coming up soon. Mark cuban dr. Scott gottleib and Mohamed El Erian all coming up becky, i just texted you do you remember last time we saw kenny . Youre going to intro him. I do. I do. That was at jack welshs funeral, which we were in a packed Saint Patricks cathedral on march 5th so i dont know about shutting down in early february so sounds good now i took communion that day had some second thoughts, but i did take communion that day. It was a different world. I think you have to be disingenuous to pretend i mean, it just does not work to go back and say that i would have done something in early february it just doesnt because we were there. I would not have gone to a packed Saint Patricks cathedral, and we did, for jacks funeral joe, talking about soapboxes. Its impossible its impossible to say that had the government taken some steps, even in early march when that funeral was taking place, there were lots of people concerned about going to events like that, but the government wasnt shutting things down but clearly they were being told that they should have and you had people who were doing that. Theres lots of evidence the month is littered with evidence. There was no political will. To defend the administration over the steps they took when people are dying is almost i dont even understand how its possible. I dont remember your i dont remember you saying to shut things down in february, im sorry, andrew. I remember you worrying about the stock market going down 50 for the last three months. I dont remember i dont understand how you can come on and defend the administration when people are dying and clearly there were people inside the administration and around the administration telling them to take more severe steps. I dont i dont understand. It just okay. Its implausible to me. Hindsights pretty good. Hindsight is pretty good. Then there were people out there talking about this yes, there were and you had a president who repeatedly said, i dont want the numbers to be higher so im not going to take the steps. He said that publicly. Okay. All right. Guys, lets bring on our guest right now. The headlines are pretty concerning if youve been watching fridays front page of the New York Times was an alarming one talking about the coronavirus of the joining us is ken langone chairman of invemed. One of the chair men of home depot. Ken, you called me on friday because you were upset about the stories that arent being told right now. What are you seeing on the front lines right now . On the front lines good morning, becky im sorry, joe, and andrew on the front lines you cant believe heroism, the evident, the enormous effort being made the doctors, nurses. By the way, the pharmaceutical industry which has been everybodys whipping boy is coming through like gangbusters for us the stories i can tell you about right from the tops of these Companies Like mmm, like abbott labs, like covidia, like baxter air through medtronics all of these companies, danaher. Were all saying one thing about tests, were saying we need to get tests. We need to get tests its very important. On march 4th, robert ford, the new ceo of abbott was in a meeting in washington and realized testing was going to be a very vital factor. He went back and within less than a month abbott had come out with these tests which could be a godsend for all of us. The faster we can get everyone tested im seeing generosity. I have lists of names of companies that are sending food to the hospitals, to the workers there. Crispy cream, im giving a name. Sweet green. Great performances donut pub, wendys nelson peltz is sending 1,000 meals a week to each of the hospitals in new york and down here in florida. The effort that is being made is magnificent. It should make you feel so good and so proud to be an american these are the stories that should be written. Instead, the New York Times in a headline normally reserved for Something Like a war or a crash of an astronaut, its terrifying millions more out of work. No kidding we didnt know that . Of course we knew it were all worried. Were all frightened were all concerned about what the future holds, but the best thing we have going for us right now is everybody, the Truck Drivers that are bringing food from the fact tris, from the farms. Mayor de blasio said there was going to be rationing of food. There is no rationing of food. Everybody is doing their part. The best thing that can happen, the best thing that all of us can do, stay home. Listen to the rules. Obey them. Respect them the sooner we all comply, the quicker this thing is all you hear from the smartest people, dr. Fauci, dr. Birx, all of those people, what are they saying stay home. Comply the sooner you do it, were going to get to where we have to be we will survive this we will pay a price, were going to, but its a price well be able to afford the point is, lets talk about the positives. Im tired im tired of the media having a feeding frenzy here by the way, i have to tell you, when all of the postmortems are done, when all of the postmortems are done, the media, in my opinion, is going to get a big, fat f its done nothing. Its done nothing but incite differences at a point in time when the house is on fire theyre out there putting gas on it, because its fun, whatever they think it is right now we need unity like never before were getting it done. The doctors, the nurses, the Truck Drivers, i can go on and on the bus drivers. Things are happening people are making sacrifices for the benefit of all of us the least we can do is our part. Our part as citizens should be stay home, obey separation, all the things they want you to do it is working. It is working. Whos not doing their part in my opinion . The media. Both sides stop stop right now tell the American People warm stories, wonderful story yesterday morning, easter morning 1 00 a big fat see through climbed up through the sea. Dug a huge hole and dumped all of her eggs and then went back and put the sandbech on it, went back out to sea. Life is going on our lives as we knew them may take some time to get back to it, but dont short america. Were doing a great job, all of us, with one exception, in my opinion. I watched andrew and joe right now going back and forth at each other. Stop youre going to have plenty of time to argue whos right and whos wrong. Ken yes, andrew. Ken, we can argue all the these points and joe and i going back and forth on this im not trying to start a fight with anybody, but the critique of the media, i want to push back on only because i dont see it frankly, had the media been allowed to do its job in china, which is a place that doesnt allow the media to do its job in january, we might not have this problem because the medias job is to blow the whistle thats the job of the media. So when you read articles that talk about what was going on inside the administration or not going on inside the administration or warning people about the possibilities of these things and then the government not taking the right steps or taking the right steps, thats the job of the media thats what the medias supposed to do. The media is not supposed to tell you warm and happy stories every day. Andrew, im sorry, andrew youre doing what the media does never admit they might have made a mistake. I have had two interviews with the media by the way, ive got a new policy, andrew i tape record all the interviews i give to the reporters and when you play them back, it is disgusting im sorry, theres plenty of time ft. Meade yeah say all you want about things that can help us get through this crisis right now. Theres going to be plenty of time theres going to be plenty of time for a vote and thats going to happen. The final judge is going to be november when the American People elect a president theyll decide who did what right. Im sorry, andrew. The media presents itself as never being wrong. Joe ken, the media makes mistakes i make mistakes. We all make mistakes but ill also say this, we are going to have a vote in november and thats true, but if you dont have a thriving media that can provide real information, factual information to the public and not information thats being skewed left and right, and i agree, its not always skewed the way you want it to be, but without it you dont have a functioning democracy and you see what happens in countries where it doesnt exist. Look, andrew, let me make a concession democracy dictates and needs a vibrant, objective media ill give you for instance ill give you for instance last week i get a call from a reporter, ive got this on tape, by the way by the way, i now announce, im happy to answer your questions but its going to be on tape they let me go ahead and do it his question to me was im trying to get this drug hydro chloroquine i think it is because im going to do the clinical at nyu. He wanted to know if i called the white house for the drug or if i called i said, no, i called one of our directors, one of our trustees, hes on the board of tebbett all we wanted was a supply of our clinic calls. He was hell bent on my trying to get this drug for a scientific purpose to whether i called the white house when we get over this, im going to bring the tape in, andrew, and you can listen to this interview. It was disgusting. Im sorry andrew, i have no problem with your belief and my belief that we need a vibrant free media, but im sorry, the fire thats being raging in this country right now in my opinion, and im by the way, a lot of people agree with me, andrew, like it or not ask yourself this question, why is the media held in such low regard by the American People . Thats something that ought to concern you. Because god forbid when we lose faith in the media, we really have a problem with democracy. I agree with that. We did hear over the weekend, ken, that intubations and admissions into new York Hospitals were declining. Yes, they are. What are you seeing on that front at nyu langone we are seeing the same thing. Its early its too early to make a projection, but the numbers are very encouraging theyre very encouraging as long as we continue to do what were every single american can be a foot soldier in this fight, every single one of us. All we have to do is comply. Stay home. Stay separate. Please, well have plenty of time to be together again, plenty of time were going to cherish that time when we are together that does get us to the question of when that time is coming thats where Business Leaders are starting to turn thats where people who have been home are starting to turn when can we get to the other side you said we should be listening to dr. Birx, dr. Fauci whats your best guess about when we might be able to get to the other side becky, i think for me to make a guess would be absolutely reckless on my part. I can say this, if we stay on what the numbers indicate right now, i think we have a good chance of being out sooner rather than later. I have my wish, it will depend how we go back to regular life i have enormous faith. I want to tell you one more little story saturday night at 5 00 i got a call from our people that we were running dangerously low on filters for dialysis i called robert kraft who gave us 300,000 masks in new york city, sent his plane to china. Asked him if he knew joe oneida. Within 30 minutes he had joe and me on the phone. We were confident we needed to keep dialyzing people. This is whats going on. Eli lilly, david ricks starts a line to do tests of people, tests, by the way, that lilly develop in their own lab that work they cant be mass produced. The people of indianapolis know whos at risk, whos not the same is true of alex gorsky. He has turned his entire research to, go find a vaccine thats the entire answer i cant give you an educated gegs im optimistic were gaining on it my guess is we may be at the peak or merer, but the entire pharmaceutical industry and Health Care Industry is focused on this problem. The pharmaceutical industry and Health Care Industry is truly a national treasure. I plead guilty im a major investor in the industry stop beating up on it. If we get out of this thing, its going to be largely in good part due to what they can do for us along with the Truck Drivers and god bless america. Ken, so the first u. S. Death, first u. S. Death was february 29th. Right. In the United States. Were trying to figure out i mean, and economy is important and it shut down and theres a lot of, you know theres a lot of really negative consequences to that. Too, to shut down the country on one death on february 29th. But how do we reopen what is an acceptable amount of risk because obviously were hearing shut down for 18 months from certain people i dont know what the economic effects would be and the societal effects of being shut down for a year or whatever, but were going to have the same type of arguments and the same type of second guessing when we reopen if god for bid another person dies afterwards how do we walk the fine line between trying to get an economy opened or that you were heartless or have blood on your hands. Youre going to hear it from the media from what weve been talking about today. Let me say this when the providers of health care can manage the caseload and do Everything Else it does, well be there were going to get there were going to get there, joe. I have no doubt were going to get there. The point is, we had a surge we had a by the way, heres an example thank god we have the Javits Center thank god we have that boat. Why . Because god forbid if we had a need for it better to have it than not use it than not have it and need it. This was an example where people say they shouldnt have done it. Im taking the position, god bless it, we had a place to put the people, not on the street. Joe, im giving you a longwinded answer what im saying is when we reach the point that we can manage whatever comes in, were okay. Well be able to deal with it. Thank god 99 of the people that get this virus are going to live thank god. Were going to get through this. By the way, were going to my guess i will give you a guess, and this is a wild guess. My guess is the death toll in america will be less than 50,000 and i pray to god im right. This was only five days ago they were talking about 100 to 240 thourks. I think part of whats happening, its a happening because of the way were responding there will be plenty of time for that, but not now. Look at the people on your screen youre showing of whats going db how about the firemen and the cops getting in front of our place last week with their sirens and their lights praising and cheering on our workers who were back in that hospital taking care of people. Joe, look, theres a fine balance here to me the worst thing would be turn loose and were right back to where we were that would be tragic that would be a monumental problem. Right now i think if we listen to the doctors, if we listen to the science, if we look at the data, i think were going to be able to ease back in becky you asked me a question. My guess is, im hoping within 30 days from now, by the middle of may, well start to see normalcy returning how do we open up restaurants and make sure there are space between tables that makes a difference. How much rent you pay and you make money by seats. The greatest thing we have going is the spirit of this great nation and the people of this nation that are the heroes we can all be a hero if we comply so, joe, im ducking the question when and if yeah, youre right we were all at jack welchs funeral. I was hugging everybody. My nature it was a celebration of a life well led look what he did im glad we were all there because he deserved to go out in that form. Ken, let me just ask you. You talked about some of the cooperation enormous cooperation youve been getting from Companies Including 3m. 3m has been the target of a lot of ire from the media and the administration too tell us how youve worked with them. The first thing i want to assure everybody is the participation by 3m in this effort has been nothing short of spectacular. Right after the ceo, there was a glitch there for a period of time the problem, the market was being flooded with offerings of masks that were either nonexistent or were knockoffs they were imposters, so to speak. You cant believe how much 3m helped our supply chain people when we said we have an offer from 50,000 masks from here. Yeah, theyre okay or, no, dont buy them theyre a problem. We know one hospital that bought a massive amount of masks and they turned out to be not usable now 3m has been in my opinion spectacular, all the way to the top of the company theres a young man, mike delveccio, he was the guy i spoke with, he was helpful by the way, nobodys gotten favoritism i didnt get one extra mask because i plugged into 3m. How did i get in i called up jim mcnearney, he made an introduction and through that introduction i was able to get in just like saturday night, we needed filters for dialysis which are made by Baxter Robert ford to joe almeda to me. The same was true, we needed test kits from sepphia larry culp used to run danaher he called tom joyce. The point is, everybodys getting the benefit of all of our efforts. Nyu is not getting extra special favorable treatment. The point is the point i want to make is the effort thats being put out, alex gorsky tells all of his scientists, the one thing we need right now, a vaccine, go to work. David ricks, theres a lot of promise this morning with something on your show this morning about lily working on a product. These Companies Collectively and separately are doing a spectacular job and ill say it again. It is truly a jewel of our society that we have a vibrant, healthy pharmaceutical industry and Health Care Industry the hospitals, by the way, all five major Teaching Hospitals in new york, the cooperation thats going on with us is magnificent. Magnificent. Were all working together. Hey, ken, i want to second what you just said about the first line people on the first line who are doing all the good work at your hospitals. I also want to say, even though we debate, i like you a lot and i hope we still have as good a relationship as we always have thats why i want to ask you a personal question, which is this theres a lot of people in the Business Community saying lets get back to work i think you would like to see us all get back to work we all would like to see us get back to work you are a vivacious person at 84 years young. My question for you is what is it going to take for you to go out of the house and what would it take for you to get on a subway in new york city . Thats the question so many people are going to be grappling with. Let me plead guilty, i havent been on a subway in 25 years. I take that back, when the pope was in new york the quickest way to get from Madison Square garden, we took the subway , it will take me a mask, some degree of separations. We are going to go through substantial, substantial behavioral change for a period of time. I dont know for how look, once we get a vaccine, once we get a big enough basis of testing people, were going to be fine. Were going to be fine i dont know if well go back to the way we were, right id like it if i went into a restaurant and i had a bit of room im a big, hulky guy, im moving around frequently ill bump somebody sitting in back of me. Theres some good that will come out of it. Andrew, understand something, you and i have spirited debates. I have a lot of respect for you and i like you and i respect you for a lot of things, not the least of which is every once in a while you can see maybe youre wrong. I wish more of the media did that because thats part of the problem with the media they back themselves into a position and when i write a correction, they put it next to the obituary section of the New Hampshire where they made a mistake. Look, well have plenty of time, you and me, to argue about the media. I will tell you this, andrew, theres one number you cant argue with the low regard the American People have with the media the media ought to ask a question, are we at risk of not doing our job because people dont like us. Thats a fact. You saw the number i know the number. Thats frightening we need to get that number up. Ken, unfortunately, this administration derives the media and often lies about the actual facts. Im not saying the media is not wrong. The media makes mistakes, i make mistakes, i can see that up front, but i think that over the past two years or three years now things have gotten worse, in large part because weve had an administration that has gone after the media in a way that i think has not always been truthful, im sorry to say. Andrew, i made it an effort this morning in the interview to stay away from taking sides, okay i said earlier theres plenty of blame to go around im not naming names i dont want to do that. Its not constructive and its not keeping with the spirit of why im on here this morning, not at all andrew, let me say this to you theres going to be plenty of time for arguing, but i have my own experiences, as i said, andrew, and i want you to listen to this tape of this interview of this man saying i called the white house. The inference was that i was supporting the president s point of view on the drug. I wanted the drug to end the argument i wanted the drug to do a Clinical Trial to say, hey, it does work, it doesnt work thats how you do it thats a solid scientific basis. Thats how major drugs get approved, Clinical Trials. These are rigorous trials. These are broad. These are very expensive we saw an opportunity because so many people with the disease, hey, we have people we can enroll and well be able to have a double blind study and well be able to know, yes, it helped, no, it didnt. Right now its two kids in a school yard spitting at each other. Stop it. Amen to that. Ken, we appreciate your time coming on here today talking about what youre seeing, particularly at nyu langone. Its great to hear we could be facing a peak and we hope youll come back and tell us more what you see. Becky, i want to Say Something else quickly i want to say the other hospitals are doing just like we are. This is a Community Effort involving everybody. Were doing great, thank god all of us. All the hospitals. All the workers. Thanks for having me have a nice day. Thank you thank you, ken well talk to you soon andrew when we come back, a lot more on squawk box this morning. Markets looking open in the red after a long Holiday Weekend well speak to Mohamed El Erian about what investors should be watching this week as we head to the break, get a check on the markets dow off 147 points nasdaq off 48 points s p 500 looking to open off 19. 5 points we will be right back. Still to come on squawk box this morning, Mohamed El Erian will be joining us on what investors should expect in the days ahead well be right back. You doing okay . Yeah. 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. Okay. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Welcome back to squawk box this morning take a look at futures we are in the red m dow opening up the weekend on the phone about whether the ppp program is getting money out into the economy. That is the question on so many peoples minds reporter andrew, good morning. Even if Small Businesses have applied for. They have allotted under the Paycheck Protection Program, well behind. The ppp program. 205 bl 205 billion its involving 4400 lenders. Its impossible totell how muc is given out to borrowers. Bankers are still waiting for critical guidance from the sba and from the treasury. Bankers we spoke with say theyve focused on applications and only this week are they going to redeploy their forces towards actually funding the loans or disbursing the money. Rob nichols tells cnbc banks are absolutely beginning to fund and youre going to see those numbers grow dramatically. Were still seeking some areas of guidance around some of the contours of the program. Tony wilkinson, president of the National Association of guaranteed government lenders says we have mostly undisbursed loans at this time we still tonight hadont have am guide. 80 of the members are receiving applications and processing those but just 20 so far are disbursing among the problems, bankers say they still lack a standard agreement between the banker and the borrower and a defined agreement between the bank and the sba governing the guarantee. Treasury has pointed so far to faq it published but some bankers say, you know what, we cant do business based on an faq. Still, some are willing and have gone ahead in arvest, based in oklahoma, arkansas and missouri. It says it has applications for 800 million of loans and has funded 35 to 40 thats one of the higher banks we found the head of arvest kevin sabine told me, rather than wait, we decided to move forward and go back to customers if we need Additional Information the bankers mostly took that idea of going on faith of whats in the legislation treasury offered us an interview with a top official and never provided that interview. Guys, this is a new program. It seems like everybody agrees, the ramp up was a fantastic accomplishment getting all of the applications into the process with a whole different kind of technology and problems with the technology and now well see if this week is the week that they can get the money out to the economy the number of new claims for unemployment almost 17 million is the number to watch as to whether this program is working, joe. Yeah, steve all right. Thank you. And the as were looking now, the futures are at some of their best levels of the morning after last week, 12 or 13 Pretty Amazing just down a little bit allianz chief economic advisor, Mohamed El Erian when the facts change, do you change your opinion. Im wondering at this point, mohamed, were 27 off the lows and were down a total of 14 from the highs on the s p. If you still believe what you believed last time, that were going to continue to grind lower and possibly to new lows, you have enough time right now to sell if were going back to the lows that we saw in march, investors should sell. I dont know if you would say buy. Theyd miss it on the rebound. Id continue to see should you sell everything to buy everything sell the weaker ones the big change, joe, it is a remarkable one is that the fed went into high yield market. That is an historic change it is one that exposes the fed both to the embracement and on the other side on the wall street journal, is the fed doing too much for markets or too little for main street or not. We are betting on the fed to go in and put a risk on. In terms of and you have pointed out to me, we talk a lot, mohamed, we talk on the air, we talk off the air youve pointed out to me that you are you holistically look at everything. You look at global economies, central banks. We specifically ask you about stocks and we put you into calling s p up this much, down that much and so its as much our fault as anybodys do you think this is a bear market i put you back in that position, you may or may not that may not be your expertise. You are a bond guy and you know about the fed but do you get the feeling that the stock market is underestimating the longterm effects of this in a way that its drawing people in when they shouldnt be in because were headed back down is that how you feel yeah, i do, joe let me explain why these themes matter look, we moved and had the fastest correction in history. Last week we had the biggest weekly uptick since 1974 these markets when they move, they move really quickly what do they move on a change in the governing narrative. We are very sensitive to narratives and the narrative last week, and its a really encouraging one, is lets look forward to the restart and we are all looking forward to the restart, and its people like ken langone that are helping us understand whats being done on the medical side, and the second narrative that changed last week is, wow, the fed is willing to do a lot more than we ever thought so north korea ra tifs matter and theyve caused massive swings in markets. And the lislization that the restart is going to be really tricky and the post crisis landscape is going to be different and thats the one that you have got to navigate through if youre a longterm investor okay. So it still sounds like what i started off the discussion with, you dont sound helped up on the over all reaction of the market, mohamed . Would you be surprised if we hit new lows in the next six months or not look, in this environment of enormous uncertainty, nothing would surprise me. We need to be great Health Experts. You need to get a feel for how far account fed go from here yeah. These are really big unknowns, joe. We have no playbook to guide us. On the health side right do you feel confident calling for whats going to happen next . No, i dont, but i feel confident that theres times when i think that the market can the message of the markets can tell me something that i dont understand and i wont understand until it happens so i think bond guys by definition, did you see one of our friends, i think barry knapp, bond guys can never get more than par. Theyre always pessimistic right now i dont know whether the markets trying to suck people back in as people you know, at these levels, more people can sell or whether it moves so quickly last week because if you didnt have the intestinal fortitude to take a shot last week, you may have missed the first 27 . Joe, i look at it differently. The market has defined us repeatedly i would admit the market has surprised us repeatedly. When that happens, you ask yourself the question, how much uncertainty is out there we are going to have two or three weeks now of earnings calls where i suspect the majority of companies are going to suspend the forward guidance. Theyre basically going to say, we cant give you any guidance we dont have clarity. The market is the accumulation of all these people who have no clarity. So weve got to acknowledge that the amount of uncertainty in the marketplace is high. When the amount of uncertainty is high, the likelihood of mistake goes up. No one wants to make a mistake so what we have to ask ourselves is what mistake can we afford to make, and i think that is the key issue for everybody watching that show. And the answers will differ depending on your level of wealth, depending on your risk. We also know that the market the markets not going to be surprised by really bad earnings at this point i mean, on the unemployment day claims day that weve had the records, the market will surge both of those days, mohamed, so i dont know whether earnings at this point is not factored in. Time will tell its the guidance its the guidance, joe. Guidance. No ones expecting good guidance we shut down the economy there should be zero guidance. Theres nobody in theaters, restaurants, nobody doing anything i dont know how it will be, oh, my god, the guidance is bad. I dont see how that can be the headline we will see you wednesday, mohamed. Who knows what the narrative will be by that day but thank you, joe. See you then. Okay. Is this me . Who is this . No, its me. When we come back, were going to be speaking with former fda commissioner dr. Scott gottleib hell join us with an update on how things stand with the coronavirus and the race for a vaccine. Stay tuned squk xilbeig bk. Awbo wl rhtac goodbye fred. Goodbye fred. [ toilet flushing ] what if he gets lonely . What if he gets bored . Oh, hey. Just in case he gets hungry. What if he gets sad . What if he gets. Hey, hey, hey. I think its time we say goodbye. Okay. [ toilet flushing ] kohler revolution 360 with continuousclean. Stays clean five times longer. Its okay, dad. Only from kohler. Seeing the break in the clouds before anyone else. Together, well weather this storm. Otgole authaaf speak to dr. Sct ttibbo tt ter the break. Welcome back to squawk box. More than 557,000 cases of coronavirus have been reported in the United States with deaths topping 22,000 joining us is former fda commissioner dr. Scott gottleib. Serves on the board of pfizer and lumina good to talk to you. It does look like were doing somewhat of a better job of flattening the curve thats the good news my question to you is really the question every morning how does it change the time line for you . I think the time lines what weve been talking about i think what were going to see through april, different parts of the country will be coming out of this earlier than other parts of the country in may well be looking at opportunities to start slowly reopening aspects of the economy. Through may i think well slowly Start Testing this i would think some point mid may you would want to see sustained reductions before you start contemplating reductions in business by mid may well be there. Some parts may be slower than others i think new york is coming out of it earlier than other parts but they were harder hit there will be some caution expressed in terms of how they start doing that is there any news. That will be the first indication of what level of exposure theres been in the population it will be low it will be under 10 remember, they have a high false positive rate. If it shows 8 , it means its really 5 in terms of the population thats been exposed to the virus probably going to be in the single digits. Not enough to create herd immunity firefighters, Grocery Store clerks, emts, people that touch a lot of people as part of their job. That might be something you can use for return to work as far as testing itself, by may well have the capacity of tests, somewhere between 1 and 2 million a week maybe 1. 5 million. Its not where you want to be, but its meaningful. Hopefully by the fall well be able to test 1 of the population which is about 3 million. Doctor, real quick though on the tests, how accurate are those tests . In terms of being able to get them fast, for example, i was able to get them on the phone this weekend with someone in the Airline Industry who was talking about, you know, whether airlines ultimately could be you walk into the airport and you literally are tested in the moment, you wait five or ten minutes to find out whether whether youre positive or not, and if youre not, theyll let you on the plane i dont know if thats even plas sibl, if well ever be able to get the tests to scale and if its accurate. They thought the tests currently were no better than 70 correct. Well, the challenge is that a lot of the point of care rapid tests like the abbott machine are not that accurate. Thats why they are deployed in the doctors office. Theyre likely to get treated whether they have a positive or negative test. There are positive tespoint of that are accurate. We need to start deploying those platforms more as far as using the test as a gating item to get back to work, go into places like an airplane, i dont think well ever get there. Thats a little bit too much coverage than were ever going to be able to do i do think businesses that have employees that come into contact with a lot of consumers are going to advertise that they routinely test their employees, either a random sample or routinely test their employees you can think airlines will say we put these measures in place, do fever tests, randomly test our employees. Restaurants can come together, buy a machine, place it in a local center and say we test our workers once a week. You will see that activity on the part of some businesses. Does a Temperature Check even matter, scott . If you have asymptomatic spread, what good is a Temperature Check . Its all layers of protection a Temperature Check is good at discerning a small percentage of people who might have mild symptoms that still amount to fever and so what were really looking to do is put in place layers of protection so the Temperature Checks arent trivial but theyre not fool proof by a long shot youre right, there are a lot of people with symptoms and others are asymptomatic you want to put in place safeguards for human behaviors that will reduce transmission and increased oversight. Temperature checks are going to be a part of that going into some venues. You will see fever guidance, boarding planes, getting off planes, going into stadiums, things like that we will see that dr. Gottleib, thank you its great to see you this morning and every morning and well catch up with you again hopefully tomorrow when we come back, senator rob portman will join us to talk about reopening america and the governments efforts to fight the coronavirus. Stay tuned derek, seems like your team is operating just fine remotely. Yeah, everything is running smoothly with the now platform. bling see, incident resolved. How did you. Gotta enjoy the small wins. You keep being you, derek. Keep being you. You breaking news, futures point to a lower open after a week of historic gains for stocks. The s p just had its best week since the mid 70s volatile night after crude Oil Producers reached an Historic Deal. And a man who knows what american businesses, big and small, need to stay afloat billionaire investor mark cuban will be our special guest. The final hour of squawk box begins right now good morning, im joe kernen along with becky quick and Andrew Ross Sorkin u. S. Equities have cut their losses to down just over 100 points earlier they were down about 300. I think i saw almost 400 at some point between last night at around 6 p. M. And then this morning. Treasury yields have not been the story as much as they have been recently. Down at. 7 of a percent or so. And then maybe more importantly are oil prices, which have been all over the place, too. Havent reached the levels where the deal was first talked about, but theyve been down and up for the session today. Whos up becky. I am. Yeah, in fact, lets take a look at crude oil prices. Crude is down by 7 cents we were up by 1. 5 an hour ago trading at 22. 70 a barrel that commodity is well off the highs even though its been flat for the last few hours this morning opec struck their biggest ever Production Cut deal initial 9. 7 Million Barrels a day in may and june. Those cuts amount to 10 of Global Production about oil and theyre aimed at trying to support prices that have been hammered by increased worldwide output and 30 drop in demand because of the coronavirus opec also wants big Production Cuts from the United States and others but the u. S. Said low prices would by themselves lead to less oil being pumped we heard from exxon oil about how they are shutting a lot of production that is a lot of cut because the big majors are doing that too. On twitter President Trump praised the new agreement saying the big oil deal with opec plus is done. This will save hundreds of thousands of jobs. I would like to thank and congratulate president putin and king salman of saudi arabia. I just spoke to them from the oval office. Great deal for all 2 trillion c. A. R. E. S. Act was signed into law for citizens affected by the coronavirus. Were debating more aid in d. C. But this time its getting bogged down by politics. Ylan mui joins us. Reporter talks have stalled over providing more money for small loans. The white house asked for another 250 billion for the paycheck protection act but this Morning House Speaker Nancy Pelosi and Chuck Schumer are tunnelling down on their demand for a broader aid package. Heres a list of what theyre asking for they want more funding for state and local governments. More money for testing and medical supplies, expansion of s. N. A. P. And broader distribution of aid to Small Businesses republicans have rejected those ideas. Mitch mcconnell and Kevin Mccarthy on the same page calling democrats reckless and accusing them of Holding Americans as political hostages. Now in their joint statement this morning pelosi and schumer used equally strong rhetoric they wrote, quote, its time for the republicans to quit political posturing by proposing bills they know will not pass either chamber, get serious and work with us towards a solution. This all comes as lawmakers are under intense pressure from the nations governors, red states and blue states, to send help fast goof no governors are asking for 500 billion to plug gaping holes as of this weekend every single state is now under an emergency declaration. Back over to you ylan, thanks. Joining us now to talk more about the funding for americas coronavirus recovery, ohio senator rob portman. Rob, thanks for joining us this morning. The finger pointing never stops. Thank you whats a citizen to think whos blocking what here for trying to get something done well, the republicans are trying to add money to one program thats running out of money, and thats the ppp program through the sba. Its the Small Business focus program. By the end of this week i believe theyll be out of money based on the burn rate per day that im seeing. Thats what republicans are focused on you have a program thats already running out of money, lets try to bolster it. I dont disagree the program should be improved it doesnt work as well as it should for the Hospitality Industry and others that are shut down by government edict. We can talk about that in the meantime, will its not let the money run out. The other program that the democrats were talking about may, indeed, run out of money. They havent even started in terms of the state and local government funding that will start this week. And, you know, 100 billion, 150 billion for state and local, 100 billion for hospitals. We dont know how much money will be there. Its premature to have more money when the programs havent begun yet. So i think thats really the difference i dont disagree again with what some democrats want to do in terms of testing as an example i do think thats something thats important, but lets also analyze now the existing funding thats being used for testing. Rob, just switching gears quickly. Do you know the time line for this new group that the president s going to put together i think its going to open the Country Council or task force . Do you know whos going to be on it have you been approached theyve mentioned the governor of ohio that you probably know pretty well. Whats your time line . How many people do we need to talk to to come to the right conclusion trump said it will be his most important decision of his life, when to reopen. It is absolutely a critical decision ive made the recommendation to include some people from the outside that have the credibility that Scott Gottleib has. You have scott on. He has his own roeport out, roadmap to reopening others have said having the government shut down is bad. Look, joe, it will be complicated. I think dr. Gottleib just indicated how complicated it is because you have different parts of the country that are experiencing different stages of the coronavirus and so it might start reopening in different areas. He also talked about the fact that we need to continue to have a transition in other words there, needs to be social distancing that continues even if parts of the economy are able to reopen then he indicated it was pretty obvious, some areas are going to be reopening more quickly than others because in some cases, ill say for everybody sitting next to each other in movie theaters, thats not going to happen you need to do social distancing in other cases, outdoor work, construction work, you could reopen more quickly. So i think its going to be complicated. I think having outside experts on it will give it more credibility and, you know, i think its good were starting to look at that. Ohio probably doesnt specifically isnt lobbying if youve seen the Governor Cuomos appeal i think the governor of maryland joined as well for relief for certain states that werent included in the first package. Is that something youd vote yes for . Well, i dont know if thats i do think there are certain states that have been hit harder than others and in ohio we have 6650 ca00 as of yesterday. Were in better shape than others in terms of the health carey spons to this, there are some hot spots that need attention. In terms of how the money ought to go to the states, it ought to go to the states per capita and not to any other analysis. Some states were in better shape than others. This is not meant to rebalance this is to deal with the crisis. Based on population, i think it makes more sense in terms of the funding thats going out the 150 billion what was it when did governor dewine shut down ohio . What was the date of that . It was early, joe end of march we shut down schools, shut down restaurants, bars started the process earlier than other states and its paid off for us in the sense that our curve is less steep and weve got, as i say, relatively fewer fatalities compared to what was projected. Do you think you could have shut down ohio do you think President Trump could have shut down ohio in the first week of february and that was feasible to do that, senator . I dont think people would have accepted that because we didnt know the degree of the problem at that point. I think, you know, there were a lot of ways to look back and say we should have known this, should have known that, but the reality is we just didnt have the information. Now we certainly do and we know social distancing works. We know Wearing Masks out in public is a good idea. Weve learned a lot. And we ought to continue those practices even after we reopen after being cautious, using hand sanitizer, Wearing Masks i think theres a way here to have a transition to a full reopening by continuing to practice many of those guidelines that they have laid out. Hey, senator, you just made the comment that we didnt knows, look, were learning every single day new things about this virus, the severity of it, how it works with asymptomatic people versus symptomatic people and all of that i know were not as people say, this isnt necessarily the time to finger point, but you do look back and im not necessarily sure that we could have closed the world in february or february 1st per se, but how do you look at some of the reports now about what the administration knew during that period and even efforts effectively to downplay those reports to the public . Because that was what was happening repeatedly when you say we didnt know, one of the reasons we didnt know was because we were being told by the administration and the president in certain cases that it wasnt really a big deal even though there were people inside the administration who clearly thought it was yeah, andrew, i think there will be plenty of time to go back and analyze this, and i plan to be part of that. Im on the Homeland Security and the subcommittee that looks into these sort of things theres a lot to be analyzed here to prepare us for the next one. Thats the point but we are where we are and the focus now ought to be trying to improve the health care situation. Were not going to reopen the economy or do any of this unless we get people secure and confident that what were doing in terms of the Health Care Crisis is effective. This is why i mentioned earlier, andrew, more testing is necessary. I heard dr. Gottleib talk about more testing for a week, 1 or 2 Million People thats a minimum to me i mean, we have to have more e diagnostic testing the new testing, as you indicated, that helps to determine who has the antibody is important, also, but frankly we need to perfect that test we need to know better how accurate it is the most important test still remains the diagnostic test. We should be testing everybody who has the test and you have to have a criteria that says ho many new cases do we have every day and have enough data to make that meaningful. Only then with a twoweek lag time after we see progress are people going to feel comfortable to go back to work and send their kids back to school. You think shutting down in late march was pretty good i think dewine yeah. I think hes done the right thing, joe, because it has worked you have to look at the results. Yeah again, therefore, he has some credibility to help us to be able to reopen it in the right way. Slowly start reopening parts of the economy to ensure we have the data out there from scientists, which i think it will be the number of new cases per day that gives people the confidence to know, you know, its time to reopen its time to get back, engage with the economy and back to school. All right, senator. Thank you. Appreciate it. Talk to you soon hopefully see you one way or another see your picture again soon or even better on camera. I think ill toss it over to you, beck. Thanks, joe. When we come back, well talk about how the Restaurant Industry is holding up right now without a lot more disruption ahead. Were expecting more disruption ahead so well talk about that, too. Doordash ceo tony xu will join us and later on we have mark bacun. Stay tuned squawk box will be right back. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. 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Transfer your service in minutes, making moving with xfinity a breeze. Visit xfinity. Com moving today. Welcome back to squawk box, everybody. Weve been watching the futures. You saw the s p up by 12. 1 last week thats the best weve seen in 45 years. Actually, 45 1 2 years futures are indicated down the dow futures are down 45 the nasdaq is off by 15. Andrew ordering food for delivery has become more common over the last few weeks as americans are told to stay indoors starting today, doordash temporarily cutting its missi commission for local partners helping smaller restaurants survive. Current demand shock joining us is doordashs ceo tony xu. Good morning to you. Good morning. Good to be with you. Good to be with you when this is all over, how many restaurants do you think are going to go out of business . Im optimistic, andrew. I know its a very difficult time as the son of a former restaurant manager where i was a dishwasher, i can tell you this is the most difficult challenge ive seen the Restaurant Industry go through in over three decades. That said, i know they have produced the vast majority of gdp in every city. I think that will continue to be the case. In terms of the restaurants that youre working with right now, what percentage are still online with you and what percent are off . The vast majority are online and certainly you are seeing hits across the board. That said, you know, north of 80 of restaurants are still going strong and i think, you know, whether its efforts like the one we announced latz weest, cutting commissions by half or waiving commissions for those joining the platform for the first time or giving free delivery every saturday and running a National Campaign to promote sales and the only way that these restaurants can receive them, thats how were playing our role in helping them and in terms of bringing people on board to deliver food, how easy or hard has that been how many people have been coming online or off the platform in terms of drivers and delivery people its an incredibly difficult balance and one that we know we have to get right. You know, on one hand you have folks who may have had jobs just weeks ago and have been furloughed since and are looking for temporary income on the other hand, there are you know, of course were in the middle of a Public Health crisis for us to strike that right balance, its really about promoting safety so whether its distributing a million plus kits of sanitizer and gloves or getting 5 Million Masks to the dashers on the platform or giving them access to the tests and in the event that they unfortunately get impacted by covid19, that we have their back in the form of financial assistance, those are some of the things were doing to make it easier for folks. I imagine youre doing sort of shortterm planning, meaning just trying to make the whole system work today, but i also think and imagine that youre thinking and imagining what this looks like on the other side of this, when people do return to some form of business or normal. What does that look like for you . Well, i would say right now its certainly a very stressful time, but its one where were very lucky to see our mission of empowering local economies realized every single hour of the day. So whether its making sure that children who no longer get access to free lunch can get fed or whether its making sure that we can bring essentials to the most vulnerable populations like the elderly, you know, the things that were seeing in terms of whats working is that folks are ready but folks are pretty cautious right now. I think for us its making sure that we take care of everyones health its making sure that we have, you know, the sufficient resources, you know, to last a very long time depending on the different scenarios of what this crisis may end up looking like and making sure that we do the most that we can to serve the community. Does this change the dynamic about consolidation in your industry at all . Now that youre going to have so many businesses that are going to be challenged, you start to think about all of the competitors in your space, grubh grubhub, instacart, uber eats, has that changed the picture for you . There was an expectation there would be consolidation before all of this. I would think this hastens it . Honestly, you know, business hasnt been the first thing on my mind. For me, its were in the middle of a Global Pandemic and so first and foremost were making sure that everyone is safe and, secondly, were making sure that all of the audiences are taken care of. For example, even in our very First Campaign when this crisis first started and the quarantines began in this country, we launched an open for Delivery Campaign where we called out to consumers to ask them to order from any platform and i think, you know, for us right now, this moment in time, its bigger than business, bigger than one singular business for sure. Its a moment in which i think youre seeing the best of everyone step up and make sure that everyone is taken care of tony, we appreciate your time and we wish you a lot of luck and all the folks out there that are getting food to people a lot of luck as well. Thank them for their service joe, over to you all right. Coming up, what the intense market volatilities have meant in the last month and a half always looking for a yield shark tanks mark cuban gives us his take on the rollout of the governments Paycheck Protection Program and so much more stay tuned squawk box coming right back there are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Welcome back to squawk box. Airline executives are discussing details of the bailout. The industry is facing some tough choices. Phil lebeau joins us with the latest on all of it. Phil andrew, its a question of whether or not the airlines if they take the payroll cash grants will be willing to do that because it would mean taking on more debt. Take a look at the Airline Stocks premarket. Theyre all indicating that they will open up higher, but lets keep in mind that these stocks have been extremely volatile and its not uncommon that weve seen them indicate higher, trade lower as soon as the trading day really gets underway heres the issue when it comes to the treasury bailouts in terms of the cash grant. Remember, 25 billion is set aside. 70 of the money that each of the airlines has been offered does not need to be repaid thats a true cash grant one time from the Treasury Department 30 of it is coming in the form of a low interest loan so the airlines have to ask themselves do i want to take out, i dont know, 800 million, a billion, whatever it comes to which would be a low interest loan they have agreed not to do layoffs before september 30th. Thats one of the requirements there. They will give stock warrants equal to 3 of the value of that offer in the strike price coming as of the close of business last thursday but its really the loan component, thats the one as you take a look at shares of various airlines over the last month, month and a half keep in mind, these guys have added a lot of debt, and that debt thats been added over the last three weeks, along the way the airlines thought were going to have the cash grant, payroll grant from thegovernment and then if we have to borrow more down the road, were okay. We probably have the room to do that they were not expecting that the cash grant would include a loan component. Thats the controversy, if you will, guys, in terms of what the airlines are going to do theyre in discussions with the Treasury Department. Im not sure theres a whole lot of wiggle room im not sure they will say, yeah, we understand youre taking on more debt. We wont do the 30 low interest loan i think the Treasury Department has locked in on that. Okay. Phil lebeau, it will be interesting to see what happens. Appreciate that report. When we come back, a lot more on squawk box. How the man in charge of one of the nations largest public pension forms will try to find his way through the market head to the break. Take a look at some of the biggest premarket losers in the s p 500. Well be right back after this youre first. First to respond. First to put others lives before your own. And in an emergency, you need a network that puts you first. That connects you to technology and each other. Thats built with and for first responders. Firstnet. The only officially authorized Wireless Network for first responders. Because putting you first is our job. With the major stock indices still at 17 to 20 perfection percent off the alltime highs and a huge number of the american economy, a huge part of it shut down, many Public Pensions have taken some big hits in their portfolios joining us to talk about how the funds are managing through the crisis, david villa. Chief executive officer of the state of Wisconsin Investment board. Hes at the helm of the states retirement board that serves 600 current executive employees. Thanks for joining us this morning. Have you considered any major moves recently, like maybe a new job . Sounds very difficult to be where you are right now. No, i love this i love this its a great opportunity to help steer the ship if i were managing pensions for people it just has been so daunting how about at the lows. You have a lot of assets in the fund, not just equities. Did you think it could get worse . Could it go back to the lows and get worse from here . Yeah, it could get worse. I think at the low point at the end of march we were down 4 friday we were down 8 we managed the fund to a fiveyear rolling return so if we earn more than 5 we give the retirees a bonus. So right now if we had no more performance for the year, we were down 8 , we would still give the retirees a small bonus. Our time horizon is a fiveyear time horizon its better than other people who are managing quarter to quarter or year to year. David, just a quick question. Youre able to hand out bonuses when you perform well. Thats pretty different than the state of a lot of different pension funds. I think places like new jersey and some of the others who have had so much pressure are you in that much of a better position than the other places do you perform better . Whats your secret its the structure. We have a promise that we can keep and we can automatically reduce the payments if we earn less than 5 so the we make the contribution so its a fully funded plan and because of the risk sharing, all the constituents are aligned and have an interest in running the plan well. Tell us about your asset. I mean, the bond market hasnt been kind to people in your position either, so i dont know where youre finding, you know, the good balance between return and safety that you need so desperately in a position like yours. Yeah. Well, its not as dire as it seems. We have a pretty sophisticated structure so we can move risk premiums and cash returns around so right now were being taxed 2 on the bond side of the house and the bond part of the equation so bond returns are depressed by 200 basis points or more so were attracted to the risky the risk premium. So we like the equity risk premium. We like the Corporate Bonds risk premium. We like the high yield risk premium excluding ccc so we can actually strip out the cash return and port the risk premiums on top of other risk premiums and get to a fairly honorable return so our as a result, our Asset Allocation is 64 risky assets or equitylike assets and 46 fixed income assets. When you add that up, thats 110 so the we end up with actually quite a lot more bonds than our peer fund i think other funds would be 64 36 and were 64 46 so by doing that and, again, because were fully funded, were able to absorb more risk. We can get to our target much more easily than the other funds. Its a little bit of im sorry, i was going to say its a little bit of financial engineering, but were able to do that with our structure okay. Well, it sounds like youre doing welby the people in the funds in wisconsin we appreciate your time. Hang in there. Good luck. Well speak to you soon maybe and well get an update three months or so from now. Appreciate it. Super you guys take care keep it up bye. When we come back, well get jim cramers take on whats been happening with the heavy earnings week ahead. What we can anticipate. Then mark cuban on the markets. Whether dcs done enough to see Small Businesses afloat and when he sees sissbune getting back to normal stay tuned squawk box will be right back. But right now, the world needs all the good that we can do. To everyone working to keep america strong, thank you. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Welcome backto squawk box. Lets check out the futures right now at some of the best levels weve seen. Weve almost been unchanged, but right now were down less than 100 points we were down at 3 or 400 at some point since 6 p. M. When the premarket session began trading oil was up and down. Its unchanged even after the big deal that we saw signed. I dont like this next story, i dont think, becky im following along in my rundown. Youve got it on your screen i have to look down. I know its coming. This is the story weve been paying attention to, at least i have this weekend. Listen to this the ceo of Smithfield Foods says it will keep the pork plant closed indefinitely. That came at the request of the governor the plant has been linked to 238 cases of coronavirus it was initially closed last thursday for three days of cleaning, but now that closure has been extended. The company ceo warning of a hit to the supply chain for meat with this closure. The plant accounts for 4 to 5 of u. S. Pork production. It comes as weve seen other plants shut down because of coronavirus or cases reported and a lot of concerns there. Its certainly something people are watching in terms of the supply chain andrew okay coming up when we return, jim cramers take on the market and earnings for the week ahead. Plus, mark cuban will join us, investor in businesses big and small. Well talk about the markets unprecedented action from the fed and what else businesses need to stay afloat as the crisis wears on. Stay tuned, squawk box returns with mark cuban and jim cramer after the break. Our Retirement Plan with voya gives us confidence. Yeah, they help us with achievable steps along the way. So we can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Oooh, well. Im good at my condo. Oh. I love her condo. Nana throws the best parties. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Welcome back to squawk box want to get over to cnbc headquarters and see jim cramer and see which way the market may be headed this week. We got the oil deal this weekend but we had an amazing week last week how are you feeling on this monday morning, zblim. It does feel okay weve got a lot of people saying that the bottoms been put in, which means that any decline could be less than severe. Maybe its calming down, andrew. Maybe you have people come on, the debate now is when things are going to open as opposed to when things are going to bottom. I think its an important thing. Even when you listen to doordash talk about, theyre not all out of business. Tony xu, i thought that was a very encouraging conversation. All morning i think the tone of the conversations is that when do we open i think even just a couple weeks ago the conversations were how many people are going to lose . Obviously when we say that, more people are going to die. I totally get that it has to do with is may going to be a better month. Jim though, the thing that i keep thinking about is, you know, were talking about when were going to get open. I actually dont see ultimately a problem on the semiside that i dont think is going to be the problem theyre going to want to go to work and want to supply america, if you will. Right. The question is what demand looks like what does it mean to go back to work and to the extent there are people not going to work, whatnot having a paycheck means to demand product to use doordash, to go to the restaurant, to go to the starbucks, to do all of those things and what that ultimately looks like. Earnings season, a lot of people have cut numbers. I like to see all numbers cut not just forecasts on. Youre absolutely right, andrew. Why isnt oil up the reason is, theres not enough demand. They cant control that. I think whats going to happen, if you have a phased roll out of who comes to work, it will be people who have been tested or people who already got sick because otherwise i think theres going to be too much fear jim, always appreciate seeing you. Were going to see a lot more of you on squawk on the street. Thank you. In the meantime im going to hand it over to becky at casa quick. Thanks, andrew. Economic pain from the coronavirus has led to government promises of billions of dollars for big american industries, but that has renewed the debate whether or not bailouts are appropriate on cnbc late last week we were told u. S. Air lines should not be bailed out according to chamath halihapitiya the folks that own the equity, those are the rules of the game, thats right these are the people that pu port to be the most sophisticated investors of the world. They deserve to get wiped out. Joining us now is billionaire investor mark cuban. Of course you know mark is the chairman of axs tv hes the owner of the nbas Dallas Mavericks thanks for having me on, becky. I want to start with what jim was talking about, this idea of everybody asking when do we open up next . What comes next . The nba was prescient. It was the nba shutdown that alerted the nation and made people sit up. Watching as you got the call that this was going to close your stunned reaction. I remember thats the same way i felt at that point that was march 11th. Lacking at this, trying to figure out what comes next you guys have your own experts that youve been hearing from. Weve had people like bill gates say theyre not sure that youre going to be getting people going back to stadiums and arenas. What are you hearing what do you think is going to happen im getting the same information everybody else is, uncertainty. No way well let players back in, fans back in certain that theyre safe this is a moving target. Every day we get more information. Every day we get better testing information. Every day we get better information from trials and as those progress and we get some clari clarity, then well make a decision the biggest mistake we can make is to rush into something. Lets talk a little bit about how things are rolling out to Small Businesses now theres been a lot of complaints that people havent gotten their money yet. I completely understand that these are people who have gone a month and in a lot of cases without any revenue coming in. At the same time, i can understand the banks perspective trying to process a loan for every single one of their customers at the same time how does this work how should we be thinking about this what are you hearing yeah, its unfortunate. You know, when i was talking to treasury the whole idea was a little bit of ready, fire, aim, this isnt going to be perfect, but were telling the banks that, you know, they can authorize loans that they otherwise would not authorize and the treasury will guarantee them the idea was that all of this would be handled very quickly, if not smoothly. Unfortunately, thats not what has happened banks are playing themselves theyre being banks and theyre trying to determine if the credits are good and thats leading to a lot of Small Businesses that are left out in the cold i mean, my Shark Tank Companies talking to a lot of them banks dont understand the affiliate roles because the affiliate roles have not been clarified by the treasury. If a Small Company has an investor with more than a 20 interest that owns other companies, then those companies are being put to the back of the line which has really hurt my Shark Tank Companies well reduce my equity to under 20 to get you through this. Ive had other instances where theyve said your Gross Margins arent good enough, uncertain. Ive tried to call the banks and say, no, thats not the point behind the ppp loans this is not about that, this is a guarantee by the government that this is supposed to turn into a grant if you retain all of your employees. You know, you have banks that have implemented all of these hurdles and thats just not the way it was supposed to be. So until we get through that friction, theres going to be a lot of issues and theres going to be a lot of people laid off and a lot of Companies Going out of business. Hopefully this is kind of a reframing of what happened with healthcare. Gov and, you know, it turned out to be tough at the beginning, at th beginning, then smoothed out, then hopefully the same way here we will get another tranche of money. The second tranche will have clear rules, banks will recognize this is not a typical credit nirnme meenvironment whee supposed to analyze each loan, but this is a hurryup environment where you get money in Small Businesses hands so they can retain employees. Mark, over the weekend, the owner of the Houston Rockets in texas said that he had done his employees a favor by laying off 45,000 of them, so that they could get unemployment my question to you is what do you think the responsibility of an owner of a team or an owner of a company, especially one with means should be in this time well, i mean, it really depends on the individual circumstances. I dont want to speak for tillman and whats going on for him, but not every owner of a professional sports team is in the same financial situation some can afford to retain their employees, some cannot some had other businesses that i can tell you somebody i know that i spoke to that had they thought it was a 2 billion plus net worth going into this and is now in the low hundreds of millions because all of their businesses were in industries that were shut down so not everybody is in the same set of circumstances you know, i think where you do have the resources like i do, you do have an obligation to retain employees theres a Bigger Picture that we have to try to support and the reason i ask is how we should think about some of the Small Business loans you know, every Small Business loan will come with a tax i. D. You know six months from now, a year from now, people will look back at those tax i. D. S to see who took the loans, who didnt, who didnt get access. Right now this is a first come first serve operation. If you can get to the front on the line, you can get that loan. If you have a good lawyer or accountant, you can get to the front of the line. The people who probably need the money the most are probably at the back of the line because they dont have all of those support systems. Its not so much a good lawyer or accountant, its more your connection to the bank and how strong a relationship do you have with the bank and how concerned are they if they dont lend you the money quickly you know, if you have 30 employees and youre doing 6 million in sales, half those sales are gone, youre having to make tough decisions and again, i think this goes a lot to the banks i think they dont fully understand the logic, or they understand it but theyre not fully executing it the way they should again, some of this falls on the treasury in that they havent been clear with the mission. The goals have not been clearly stated banks are taking it upon themselves to put together their own decisionmaking process thats slowing things down i think they really they need to get to the point when they get to the next tranche of funding first and dealing with questions second this is a Bigger Picture this is how do we keep the economy running at some level. We already lost so much that were at the point now where if things start continuing to cascade down, then we start looking at really bad news this is the point now where banks and treasury have to get their acts together and the treasury has to say to banks loan money first, ask questions later. Deal with frauds later if we dont keep people in those jobs and more companies lay people off because they just dont see a light at the end of the tunnel, they dont have a comfort on when people are coming back. This is that Inflection Point where money has to get into the system even Large Companies retain employees. Thats the goal. If that doesnt happen, the you know what hits the fan than it already has. I dont think banks fully understand that yet. I dont think that treasury has fully conveyed that. That has to change right now mark, i understand why banks may be a little hesitant on this front. On the one hand you have them kind of trying to go through and make so many loans correct me if im wrong. I thought the banks kept a portion of this 5 of the loans theyre making were not asking them just to be conduits, were asking them to do a quick credit counsel that the government cant do. Exactly thats what makes it so crazy. Thats what i mean. For the banks, i get why theyre hesitant to throw money out willynilly. Theyre on the line for this theyre asked to be risk adjusters on this process. Not really. They are. If we were just giving out money, we would be doing the same thing the irs is doing with individuals and sending the checks out why do you have to go through the banks . Because you want them to be a risk assessor. But again, then we made a mistake by going through the banks. We should have done overdraft protection guaranteed by the fed. Thats what i proposed early on. Thats neither here nor there. Right now we have to look at the Bigger Picture what is the cost of lack of risk adjustment in doing these loans to small and mediumsized business particularly when the maximum loan is 10 million, particularly when you have to use it to retain employees or it dose esnt turn into a grant. Those are the two things to evaluate after the fact. Was it 25 on nonpayroll the government is not necessarily running the risk on that i think the banks have something on the line too. But the feds have said were absolving you of the risk effectively. As you mentioned, treasury has not clarified all the rules. Thats what i referred to with affiliates and other issues what is the goal why is this program in place why is it called the Paycheck Protection Program because we want to keep people in their jobs. We want to have the least amount of turnover in job losses as we possibly can and in that particular time, in these particular circumstances, we have to deal with the what banks traditionally do in terms of credit and Risk Assessment and put that last. And thats one of the reasons they put limits. Look, its 3 350 billion, but 1 million for any one company or any one location you cant have more than 25 in nonpayroll expenses. The maximum losses for any one event, those are still going to the treasury no one anything that i read, i read all the treasury rules that they put out, theres nothing from the treasury that says if you dont if you dont assess this credit correctly, were not going to reimburse you for that money tmark, i just while we hav you here, youre in all of the youre in all the shark tank stuff you have more stuff around with all your businesses. Thats what were talking about. Can i just just talk about basketball, just for a second. Im trying to see how this actually works one of the lighter moments in one of Andrew Cuomos press conferences, he was talking about people, you know, on the playground playing basketball. If youre if you have six foot distances you suck as a basketball player. Thats how i play defense. Im like six feet. You cannot play basketball without no. And how do you do you test everyone thats playing and then do you sell onesixth of the tickets in the arenas . How how and when does that ever get back to the way it was . Well, couple different questions there. One, you know, we can quarantine a larger group of people but again, im just speculating. The science will tell us what to do any level of normalcy comes down to when do we have some types of therapies, some types of vaccines when the scientists tell us those are in place then we can start to move forward. And over time people start to feel more and more comfortable once they see others are not getting sicker well have to respond to the same science address everybody else how well do what we do is to be determined, joe. I cant wait to get back out there. But until then we have to play h. O. R. S. E. Instead of 5on5 h. O. R. S. E. , right i saw that game. Thats a good idea, by the way you see my h. O. R. S. E. Game . Me against you can you shoot . I ive been i cant im terrible, but im Getting Better ive finally been able to make freethrows, maybe four or five out of ten im not good no joe, you have time. You have a hoop in the backyard . We have one, one of those its not up. Its actually down, theres no sand in the base its a long thats a different conversation, but yeah but thats how i guard people, about six feet i have been playing h. O. R. S. E. With my 8yearold, i havent won any games but i have not lost terribly on any game. Mark, thank you. Take care, guys i appreciate it. It is the best thing we can do, right mark i go out in the backyard with my son all the time. Yeah. Its especially these days. Thank goodness we put that thing up mark, thank you very much. We will talk to you again soon folks, weve been watching whats happening with the markets. Right now were indicated down stick around todays continuing coverage of cnbcs special coverage continues right now. Welcome to squawk on the street. Im Carl Quintanilla with jim cramer, david faber come to you live from didnt locations this morning. Futures are getting closer to erasing Early Morning losses as we get this opec plus agreement. Goldman suggesting the market bottom may be in place well get our first taste of q1 earnings with jpm and wells tomorrow jim, last week you did say you were beginning to feel better, it does look like david kostin shares that view today yes