Transcripts For FBC Mornings With Maria Bartiromo 20240713

The who says theres potential. Whistleblower says federal employee who is were sent to quarantine locationed were put in danger of infection by not having the proper gear. The u. S. Navy orders selfquarantine for ships that have been to highrisk areas, more companies as political battles are waging. Infectious disease expert is here from John Hospital kins will be here with what you need to know. What apple ceo ceo is saying about the coronavirus and company, exclusively at fox business. Days from South Carolina primary , senator Bernie Sanders knocking joe biden out of first place. Mornings with maria is live right now. Top story this hour, market sells off, we are off of the louse of the morning and we are looking at a decline right now of 232 on dow jones. That means the market is down 10 from the high, the dow plummeted 1200 points yesterday, largest decline ever. Secrets of wealthy podcast veronica, fox business Dagen Mcdowell and wall street journal Senior Writer Jon Hilsenrath. Good to see you this morning. Serious selloff this morning, jon, Goldman Sachs, 3 firms saying we will have little to no Earnings Growth in 2020. Right. A lot of people in these situations say dont panic and they turn around and panic. Maria good point. Jon its important to keep the situation in perspective right now in terms of whats going on in the stock market. Certainly a lot of uncertainty and impacts of the coronavirus, as the journal reported today theres also things going on thats going in the market thats amplifying and people getting out of lowvolatility trade. So i dont think that the stock market should be a signal to people of how, you know, terrible or serious this situation is right now. In terms of the economy itself, we have a very strong Consumer Sector and that doesnt necessarily get directly hit by Something Like this so i do think when people say dont panic we should take that seriously, take the deep breath and try to keep everything in perspective. The other thing i would say is that the death rate from this virus is much lower than its been for the viruses like sars, we are talking outside of Hubei Province. Its important for everyone to take a deep breathe an not panic, actually. Maria the broader story is the behavior of china. You want to have sympathy for whats taking place but why do things keep coming out of china and we should point out that jimmy was arrested, he will have court date sometime in the next few months, charged with 2 crimes, quote, unquote, one for attending demonstration and the other for intimidation of reporter. We see behavior out of china that is questionable from not telling us when coronavirus first started to the shutdown of any speech like jimmy li who was on the program and in front lines of protests in hong kong. Dagen i will add, though, what is happening in china a global problem, worldwide problem and to talk about the markets if the epidemic lasts through the summer that u. S. Companies could lose half of annual revenue from china, thats one of the reasons, simple dont know, they dont have enough to quantify how bad earnings will be this year, how bad the economy will slow down here in the United States, the s p 500 has entered a correction from an alltime high at record speed, only 6 days, granted that doesnt include the almost 23 selloff that happened in october of 1987 but nevertheless, cornerstone macro, they made up twothirds of the s p 500, 66 , well above where we were in 2000. So thats one of the reasons you see such, you have the wildlyheld stocks making up such a big part of the broad market, thats why you see the very, very severe selloff. Jon i say theres something indiscriminate about the selling going on. Look at a company like netflix which dropped 4 yesterday, if people were driven into their homes and arent going to be out at shopping malls and traveling around, you would think Companies Like amazon and netflix would be doing better and not worse but the market dagen those are overvalued stocks, go ahead. Maria thats right. Youve been pointing this out for a while now that this market has gotten outside levels. Even with amazon, youre talking about supply disruptions. This is the issue with earnings, you have certain components and parts of products that are made in china and amazon cant deliver them. Amazon is not delivering those products. The companies cannot sell the products if they cant be produced because part of them are produced in china. People are not working, theres no Economic Activity in china, you cant have the factories fired up again because of coronavirus, its stopping global earnings. Right, so you hear that from apple and microsoft we heard this week that the sales for upcoming quarter will be be done because of disruptions in supply chain. What this really shows, though, what a Global Economy we truly are. What happens in China Matters for our economy, matters for the rest of the world. It will be interesting to see, though, some people may use this as evidence of or further argument of saying you know what, globalization isnt what its cracked up to be, itll be interesting to see if we hear more people beating that drum or not. Maria i think thats what the president is trying to do, in a situation like coronavirus, now we recognize we are way too reliant on china. Look at the drugs, so many ingredients, key ingredients in leading Prescription Drugs made in china. Dagen absolutely. One quick thing, i want to point out that going into the selloff, individual investors were likely much better positioned than investors, where dye that i had put their money last year, mixed income and etfs, they were coming out of stock, individuals have the balance in portfolios, professionals probably not. Maria great point. Some of the top stories that we are watching this morning, coronavirus affecting sub sahara, startling numbers out of california, in california 8400 people are being monitored for symptoms. A whistleblower is claiming the health and Human Services sent employees to evaluate hundreds of americans rescued from china without the proper protected gear. The Department Says it is looking into this complaint from this whistleblower. Overnight, friend, family and coworkers Holding Vigil for 5 coworkers murdered at milwaukee brewery, suspect worked as electrician as the facility, shot and killed coworkers before killing himself. Police did not release motive. Neighbors say that the suspected shooter enjoyed building his own guns. 737 max, jet maker will cover payments for engines delivered in 2020. Joint venture between General Electric and safron. Quick break, entrepreneur jimmy li arrested over the honing cost protests overnight, hes just been released, literally, minutes ago, this as we are keeping an eye on markets all morning. Investors retreating amid the coronavirus concern, the dow industrials down 212 points and that is off of the lows. This abandon ship, wallet disney jungle cruise sinks while people on board, much more of the crazy video ahead. Stay with us, back in a moment. The smaller it starts to feel. Which makes it even more surprising, how big it feels in here. With sliding rear seats. And more available second row legroom than say. A chevy suburban. This is the completely reimagined 2020 ford escape. My agerelated macular degenso today i made a plan with my doctor, which includes preservision. 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Economy as coronavirus spreads, luckily we have Jon Hilsenrath in the studio to talk about the fed and how likely that is, joining us right now chief first lindsey, are you betting on a rate . I think the fed is being packed into a corner. Its not the question if the fed will cut rates from here when and by how much. We could see that first rate cut coming as early as the march fomc meeting. The expectation for fed rate cut priced in well over 50 with second round rate cut as soon as april or even june. Right now the market is very concerned about the fragility of the domestic economy via the contagion of whats happening overseas and thats going to back the fed into a corner to provide outright stabilization or further stimulus. Maria what are you hearing, assess the situation, Jon Hilsenrath . Jon well, the fed, lindsey is right when she says packed into a corner. Even if we havent seen real economic impacts, we have seen impacts in conditional condition s, these are all signals that may have to cut Interest Rates. They may have to react based on what is happening, they could make a bad situation worse if they turn around and say no, we are not going to do it. I think thats something that the fed has to look at carefully. We have a meeting coming up in march. They tend not to move they dont want to panic people. Maybe we get a signal in march and move later on. We will are have to see jay powell responds. Dagen what would the fed do anything, do anything to actually give an economy a balance or a bottom . I see assets and they were inflated because of the massive amount of liquidity thats being pumped into the Financial System not just here, there and everywhere. You make a great points because rates at historic low levels, you are talking of fed funds, arguably an additional 55 basis points will not give consumption as the fed lowers rate but could help on the margin. Could help increase confidence that the fed the fed is ready and able to take preemptive actions to stabilize the economy, as your previous guest mentioned, we havent seen the impact in the data yet and in part we wont until the Second Quarter because of that delay in terms of delinquent deliveries and overseas manufacturing hitting u. S. Producers, so the fed has to make the decision if they want to take that preemptive action and stabilize the economy ahead of the hardest hits time frame and i do think the fed is increasingly looking at the market and looking at increase concern and may in fact, have to play cards early. Jon you say this moves confidence, i wonder if it could have the opposite effect. The fed doesnt have a lot of room for action. Do you worry that the situation the fed is in right now will have investors saying, oh, wait a second, we dont have a safety net outside of the fed to do anything if things get worse . Well, i think the reality is we dont have much of a safety net this time around regardless the fed moves in march, when we look at the Great Recession and we look at 2001, the fed cut rates over 400 basis points. This time around only 150. Thats something that the market has priced in. Given that we have such little room between where we are now and the zero lower bound, i would argue that the fed doesnt have the opportunity to be patient and slow play this. They need to get out ahead of this and cut rates sooner and faster than they normally would because of the limited spread between rates at the current level and the zerolower bound. Maria real quick, is any reason to think that now is an opportunity to buy stocks or does this get worse . Well, right now i think the two main scenarios for the u. S. Economy is not so great and worse. In either case we are looking for fed action and noticeable slowdown in topline growth which should keep downward pressure on both risk assets and yield, so its going to be a very difficult investing environment for the shortterm. Maria sounds like sitting on cash for a little bit. Lindsey piegza joining us. Thank you. I will be speaking to Voting Member this year, i want to get the sense of the economy and any suggestions from him on where rates are heading at this point. Quick break, markets are off of the louse to have morning but still pointing to tripledigit loss, down 236 points on the dow, we are watching all morning certainly. Walmart taking on amazon prime, details on the new venture coming up. And then Hillary Clinton on the air waves, the plans for new podcast making the buzz this morning. Stay with us. Good lookin pickup, i will say that. Oh wow. 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And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] maria welcome back, jimmy li has been released after being arrested overnight. Charged with Illegal Assembly tied to August Protest and criminal intimidation of a reporter. Lia addressed the protests back in november, watch. Now about 800 students still in the campus by the police, anybody who comes out with the arrest, you know, they will arrest anybody that comes out, so the situation is very serious and, you know, we still hear police finding teargas, rubber bullets and all that and the fire of the student is firing potential bombs. Police violence instigate people to respond in violence, this is a problem. Also because people cannot trust the chinese anymore without universal suffrage, we know that our freedom will be encroached. Maria yeah, people cannot trust the chinese and what they are telling us. Jimmy lai was really not arrested and kept, you know, in place in what he was doing because he was so loved and he was being watched by the world, then overnight hes arrested, hes been freed, dagen, but we know that he will have a court date some time in the next few months. He was charged with 2 crimes and you have to wonder about chinas behavior. Now youre not hearing a lot about the protests because of the coronavirus, whats your take on this . Dagen the why now is suspicious because they are trying to hide this. Jimmy lai, one of the charges hes facing is criminal intimidation. The irony there of a government who is trying to intimidate someone who is outspoken and silenced that voice, this is the same communist government in china that expelled those wall street journal reporters because they didnt like a headline on an editorial that appeared in a United States paper. Maria yeah. Jon there was a headline that they had absolutely nothing whatsoever to do with writing and id also say that one of those 3 reporters was in the process of reporting in wuhan was quarantined because she was doing all the hard work of Good Journalism of informing the public about what is going on. Maria we wanted to make sure that we told the world what was going on, how china was changing its promises, breaking its promises to hong kong after saying they would not be so authoritarian and coming up with the extradition law. Jon can i connect a couple of dots, if youre a ceo right now and went through all the trade disruption last year and spent a lot of time of diversifying supply chain and not being too reliant on one country and now this year you have all the issues about freedom of speech but not only that but the fact that many of these global viruses start in china because basically the way Society Works there i would think if youre a ceo thinking of how to build supply chains right now you have to be thinking i have diversified and cant be too concentrated to any one country. Maria absolutely, we way too reliant on china, what i mentioned earlier is frightful. Key ingredients, active ingredients of 70 of Prescription Drugs are coming from china or india. Right, heavy reliance on china and to jons point looking at places like vietnam, malaysia, looking elsewhere so they are not as exposed to this risk. Jon since we are trying to take optimistic, i wonder if mexico becomes a winner from all of this. Maria if this can happen to jimmy lai, what does that mean to the arrest of us, he could be arrested overnight the way he was if they can extradite people back to china secretly and arrest jimmy, what does that mine mean for the rest of the world. I think youre right, it will dictate companys behavior, we are watching this all morning and we are covering this from the front lines, we are watching markets, of course, at a tripledigit lose at the open is what we are expecting, reaction to coronavirus on wall street has been stark, more than 3,000 points loss in the last 3 days, we will take a look at markets when we come back. And then abandon ship, wallet Disney Cruise ship sinks while people on board. Garth brooks mobbed, its not what you think. We will explain. Many have turned to fish oil supplements. Others, fenofibrates or niacin. But heres a number you should take to heart zerothe number of fda approvals these products have, when added to statins, to reduce the risk of cardiovascular disease. Ask your doctor about an advancement in prescription therapies with proven protection. Visit truetoyourheart. Com everything your trip needs for everyone you love. Expedia. Maria welcome back, good friday morning, thank you so much for joining us, im Maria Bartiromo friday february 28th, 6 31 a. M. On the east coast. Coronavirus fears are growing, the dow industrials are down 245 points right now, but here is what we know, more than 83,000 reported cases across the world, more than 2800 deaths. U. S. Markets are now in correction territory after losing more than 3,000 points in the last few days, futures indicate another decline at the start of trade this morning. After the dow, nasdaq and s p 500 all had biggest point declines ever yesterday with the dow as you can see since the close of the end of the month in january down 8. 8 , the nasdaq down 6 and s p down 7 and two third percent. Stocks are on track for worst week since 2008 financial crisis. Meanwhile Interest Rates keep on dropping like a rock. Yield on the 10year treasury taking a new low. Fallen below 1. 20 . Below 1. 20. Take a look at european indices with ftse 100 down 192 points, 2 and a half percent. New data shows the french Consumer Spending taking a sharp dive last month before the coronavirus hit the area. That was before the cac quarante in france down 138 points, 2 and a half percent. In asia overnight red across the board as well, the worst we are former as you could see was china, shanghai composite down 3 and 3 quarters percent. More layoffs reportedly coming to cisco, more details, cheryl. Cheryl maria, good morning to you, the company is facing prospect slowdown in sales growth. This is all according to wall street journal this morning, shares of Cisco Systems we should say are lower the the premarket. The stock down 1 and a half percent, 1 and 3 quarters percent amid the global selloff we are seeing in futures market. Amazon prime has a prime competitor, walmart reportedly planning to launch a paid Membership Program to compete against amazon. The services called walmart plus will be a bigger version of their Subscription Service for grocery delivery, public test could start next month. World passengers on the jungle cruise when the boat took on water and started sinking. Witnesses caught footage as the boat started to sink. It is not known what caused the action, thats one of the most popular rides we should say. Garth brooks famous say he has friends in low places but friends on instagram turned on him and it was all a big misunderstanding. Look at his photo, a jersey with the last name sanders, he got attacked for supporting Bernie Sanders, guys, this is a football jersey, this is the Detroit Lions runningback sanders, maria, one twitter made me laugh, o lord help me, barry sanders, Detroit Lions, use it. Maria annoying that the mobs can just try to shame somebody even if it was a Bernie Sanders jersey. Cheryl we are so polarized. Maria cheryl, thank you. Cheryl you bet. Maria Bernie Sanders beating other democrats by double digits nationally. According to the mammoth University Poll of South Carolina, voters released yesterday, joe biden dominates fellow candidates by double digits. Looks like joe biden has a bit of a comeback in his arsenal which we didnt necessarily expect 10 days ago or 2 weeks ago after nevada he has bump and even after the last debate which is had for me who consumed it, particularly in the south, in florida, super tuesday, southern states, its unclear whether Bernie Sanders can win a democratic primary in the south. Thats kind of a big deal. It will feed into the democratic unease of will this democratic socialism play in this entire country or is it a regional thing. Maria we dont know if this is going to dictate what happens in the election season . A lot of it depends what happens to Michael Bloomberg, his whole play, im joe biden insurance. Im the guy for you. Joe doesnt look like hes physically and mentally able to do this. Democrats dont really like Michael Bloomberg. Hes going to be under some pressure if he does as badly. Dagen they dont like Michael Bloomberg because a lot of people feel that youre trying to come in and buy the nomination. They just have a real problem, deeprooted with that. If joe biden does win South Carolina, does that give him momentum going into super tuesday because looking at the real clear politics average of polls, biden is ahead 12. 6 points over Bernie Sanders in South Carolina, but sanders still leading by 13 points in california, sanders slightly ahead in texas and North Carolina and even virginia, biden is third in california and virginia. So does one victory give him enough momentum to do something. Texas is the key, right, bernie has great support among latinos in nevada. He will have a huge win in california. Its kind of a question, joe biden has black support and Bernie Sanders has latino support. Texas is more of Western State than southern state. If he does really well there, increases sense of viability. Jon what is the Convention Going to look like a few months from now. Is Bernie Sanders going to go into that with enough delegates to take a clean nomination or is this going to be contested dagen arent you getting ahead of yourself. Jon a little bit. Dagen its july. If we see people actually dropping out on tuesday. If Mike Bloomberg stays in or not, amy klobuchar, Elizabeth Warren, pete buttigieg, this is the worst Case Scenario for democrats which is Bernie Sanders gets plurality but not majority of delegates before the convention and super delegates come in, no, no democratic socialism, imagine planet bernie taking that news, we won, you know, we got the most delegates but we will not get the nomination. Maria here we go, colluding against bernie. Jon is that where you think its going . Who knows . Dont make predictions. If people dont get out of the race, then it very well could go that direction, a lot of it will hinge on Mike Bloomberg. Who do you think is next to drop out . Dagen she doesnt have any money. Maria okay. Isnt getting any delegates besides maybe in minnesota coming up. So if you dont have delegates, if youre not winning things, you dagen Elizabeth Warren seems to think that she did so well in those debates. Maria she was like this all night. Dagen she got no delegates in nevada. I want to ask you this because im having private conversations with big democrats, big donors and dismayed of Bernie Sanders, where have you been in the last 4 years, you have been complaining nonstop about President Trump, but not doing anything, not watching what was going on on the ground with Bernie Sanders operation that was still in place after 2016. Well, the big comp is the donald trump race in 201516. Everybody was competing to be the last person standing against trump and then they were going to go after him. Doesnt work, they were terrified of trumps base. They knew the base is more passionate and sanders base are passionate and people are afraid to attack him. Maria look at what the president is doing holding another rally ahead of democratic primary tonight in north charlesson, South Carolina, doing rallies while debates are going on and the primaries while the latest fox news poll show contenders beating him head to head, majority of voters saying he will win reelection, matt, and we know that the numbers from the black voter have been rising in support of donald trump. I think a lot of that reflects democratic unease. Each of their major candidates has are we really going to do this vibe, are we going to do democratic socialism, joe biden are we going to go for a guy who doesnt look like he has it all there, Michael Bloomberg, a guy who just bought his way in and hate guts anyway. Everyone has the sense and also turn into a detackle at the convention. Democrats have sends of unease but i think President Trump should be worried particularly with the coronavirus and the stock market heading towards a bear territory here because he hasnt really had a crisis on his watch. Dagen if you constantly own the market on the way up you will constantly own it on the way down. Dangers of the back to back presidency. Maria thats obviously whats upsetting markets. Matt welch this morning. Futures indicating a 200point selloff at the start of trading, we are off the lows to have morning, we are watching the markets and come back more on that. Juul under fire, Texas Attorney general paxton is here. Plus shes the man, taylor swift drops her new music video and shes virtually unrecognizable. The morning buzz coming up. At fidelity, online u. S. Stocks and etfs are commissionfree. And when you open a new brokerage account, your cash is automatically invested at a great rate. 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Epa estimated combined fuel economy and the technology to practically park itself. This is the reimagined 2020 ford escape. Maria welcome back, coronavirus concerns rippling across the country, rippling through markets, 10 cases diagnosed with the virus in texas, joining me right now Texas Attorney general ken paxton. Mr. Ag, good to see you this morning, thank you very much for joining us. Have you done anything different in terms of your preparedness in texas . Oh, absolutely, my office has been looking at the legal focus of what we would do, what our powers are, what the governors powers are and what the agencies can do and so we started governor called meetings, daily calls and looking tat whole gamuts of powers. Maria you are launching investigation for juul this week, its misleading customers, youve got this teen vaping bill scheduled to hit the house floor later today, talk to us about it . 39 state investigations, clearly many states are interested in this. Weve had obviously kids that are harmed by this and figure out what the effects of juul products are, how they have been marketing them to children, nicotine content and also claims on effectiveness and safety of their product. Jon ken, are you also looking at how marijuana plays into all of this . Increasingly thats distributed using vaping products. Is that showing up in kids pipes and source of your concern that it could be a way to get marijuana into the population there in texas even though its not legal . So this investigation will go where it needs to go. So if we find that their products are associated with marijuana use, then, yeah, we will look at that as well. We havent limited this investigation. Its wide open right now. Maria so what is the danger around the the juul products . I think one of the concerns ive had for a long time is we just dont know. Theres not a lot of research on impact of children. Millions of kids around the world are using and we dont really know what the effects of those are. Thats my main concern and appears that some of the effects are bad as you know from stories over the last year. Jon can you give us some sense of the marketing practices that youre looking at and how these products were marketed to young people and to the extent that thats the center of your focus . So much was marketed as cessation product. Maybe it does help you stop smoking cigarettes, but what are the physical results of vaping for years. Thats what we dont know and im not sure the Company Knows and if we do know we want to know what they know. From you can make changes, what would be your ideal changes . So you would feel comfortable that this wasnt being marketed to young people. I would want evidence from them that they are not marketing to children. I think its going to be hard for them to show, it appears that they have been. I would also like to know of what they know on the Health Effects and what what the longterm effects are on children and really everyone. Maria so let me ask you, ken, i want to switch gears because we are waiting on the results of this, we will wait for that to hit the floor later today, but a federal Appeals Court is also ruling, ruling on wednesday that the Trump Administration can withhold millions of dollars in federal aid from sanctuary cities and states. This is something that you were in the front lines on in terms of being on the border, whats your reaction . So i react positively to that. The federal government has a responsibility to dealing with immigration. The supreme courts made that clear. States step toward that effort, there needs to be some consequence, otherwise we will not end up not having any kind of immigration policy that has any chance of working. Maria well, i mean, its interesting because you look at what is going on in new york where new york is the only state that will not allow the federal government to look at the dmv data because of this very issue people speculate. Yeah. I am very frustrated by the policies like that. Obviously we are a border state and we deal with this issue every single day. We deal with human trafficking, we deal with drugs coming across the border and we just deal with the cost of illegal immigration both socially and economically and when states step up to stop the federal government from doing their job and making sure that the people that are coming across are supposed to be here, it creates huge issues in our state and i think for the whole nation. Maria all right, we will keep watching important subject. Attorney general ken paxton, thank you for being here. Quick break. Futures lower this morning, take a look. Crude oil down 3 right now as well. We are watching oil as well. Markets are down 270 points on the dow industrials right now. Plus this, Hillary Clinton on the air waves, former first lady readying herself for new podcast. Thats making buzz this morning. Weve got it when we come right back. I am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Theres a company thats talked than me jd power. People 448,134 to be exact. They answered 410 questions in 8 categories about vehicle quality. And when they were done, chevy earned more j. D. Power quality awards across cars, trucks and suvs than any other brand over the last four years. So on behalf of chevrolet, i want to say thank you, real people. Youre welcome. Were gonna need a bigger room. Every year, our analysts visit thousands of companies, in a multitude of countries, where we get to know the people that drive a companys growth and gain new perspectives. Thats why we go beyond the numbers. T. Rowe price. Invest with confidence. Thats why we go beyond the numbers. [ fastpaced drumming ] and mine super soft . With the sleep number 360 smart bed, you can both adjust your comfort with your sleep number setting. But can it help keep me asleep . Absolutely, it intelligently senses your movements and automatically adjusts to keep you both effortlessly comfortable. And snoring . No problem. And done. So, ill wake up ready for anything . Oh, weve got your back. So, you can really promise better sleep . Not promise. Prove. Its our leap year special, save up to 600 on select sleep number 360 smart beds. Plus, 0 interest for 4years on all smart beds. Ends monday. Maria all right, time for morning buzz, first up Hillary Clinton on the air waves, get ready, everybody, teaming up with iheart media to launch podcast later this spring giving her a larger mega phone before the 2020 election. As of now the podcast doesnt have a title. I dont know what the title would be, dagen . Dagen what happened . Thats the name of her book. I just like doing that. What happened. [laughter] dagen the thing about podcasting, i think its an hour long. Iheart radio, iheart media home to rush limbaugh. She will have to challenge people. A lot of it is based on the guests. Tell us something that we havent heard from her in all the years that shes been on the national stage, good luck. Maria so what should it be called . Dagen what happened. Maria taylor swift dropped new single video for the man. If you dent recognize her, thats okay, shes decked out as a businessman with suit and prosthetic to give her a masculine look. Jon, you like it . Jon no as a white male with dark hair i think its unfair stereotyping of white males. I will start a movement. Dagen no, its not, thats one of the greatest sexist offenses. Spread your legs. Man spreading. Jon shes gender stereotyping against men. Maria happy birthday to all leap years babies, tomorrow is february 29th, rolls around every 4 years, you know, olive garden wants to celebrate those who do not get a birthday every year. Flash your id at any restaurant in alive garden, youre oddman birthday, 4 free deserts for all those years you didnt get a cake, veronica. I wonder how strict they will be with the id check. Maria four free cakes. Jon would you go with cheesecake or layered chocolate . Chocolate 100 . Always chocolate. Maria markets are pointing to tripledigit loss. Dow industrials down 250 right now. Nasdaq down 71 and s p low e by 26. Spend the night in a new jersey landmark, how is that . We will tell you more next hour, mornings with maria. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. 1 in 4 of us millennials have debt we might die with. And most of that debt is actually from credit cards. Its just not right. But with sofi, you can get your credit cards right by consolidating your Credit Card Debt into one monthly payment. Including your Interest Rate right by locking in a fixed low rate today. And you can get your money right with sofi. Check your rate in two minutes or less. Get a nofee personal loan up to 100k. Maria welcome back. Good friday morning, everybody. Thanks so much for joining us, im Maria Bartiromo. It is friday, february 28th. Your top stories right now, just before 7 00 a. M. On the east coast. Markets are selling off again this morning across the globe as coronavirus fears continue to grow. Dow industrials down 313 points right now, one and a quarter percent, the nasdaq down 87, s p down 33. U. S. Markets are now in correction territory, meaning theyre down 10 from the high, extending losses this morning ahead of the open but still here with a 320 point selloff on the dow, were off of the lows. Earlier the dow had been down 677 points on top of yesterday where the dow, nasdaq and s p 500 all had their largest point declines ever yesterday, stocks are on track for their worst week since the 2008 financial crisis. We hit alltime highs earlier this morning. The dow, s p both down 4 andahalf percent, nasdaq down 4. 6 yesterday alone. Rates are moving lower, quickly by the way. The yield on the 10 year treasury hitting another new low, take a look at where it is right now, falling below 1. 16 earlier, bouncing off of that, now standing at 1. 20 . Thats down 6 andahalf basis points on the 10 year yield this morning. Coronavirus cases are growing worldwide. Heres what we know. More than 83,000 known cases right now, the World Health Organization saying the outbreak has pandemic potential. Cdc tells us that earlier this week. California is now monitoring 8400 people currently and then there is this, a whistleblower is alleging that federal employees were sent to help quarantine locations but they did not have the proper protections. The protective gear. What apples ceo is saying about the coronavirus, the impact on his Company Exclusively to fox business this morning. Weve got those comments. Investors taking a bite out of beyond meat, under pressure after a profit miss. They say they plan to promote the healthiness of its products. We are a few days away from the South Carolina primary on saturday. Bernie sanders knocking former Vice President joe biden out of first place according to a new fox news poll this morning. The majority still believe President Trump will win the election. Mornings with maria is live right now. And the deadly coronavirus outbreak fueling a major market meltdown this week, stocks sharply lower once again on pace for a seventh day of losses this morning with the dow down 300 points, all three major indices are in correction territory after suffering their steepest one day point drop ever, markets on track for the worst week since the 2008 financial crisis, how should investors react . Joining us to break it down is the host of the secrets of wealthy women podcast, veronica dagger is here. Dagen mcdowell is here along with John Hilsenrath. Charles schwab senior Vice President Liz Ann Sanders joining the conversation this morning. Thank you for being here. Thanks maria. Maria 3,000 plus decline in the markets over the last couple days, as an vester, what do you do, what are you telling clients this morning, liz ann . Well, we often start in eras like this by reminding investors panic is not an investment strad strategy and understanding the market, theres a lot of momentum driven money in the market. Outside really of the hands of Retail Investors. So hedge funds, algorithmic driven trading, that pushed momentum on the upside. Once the momentum shifted, its now pressing the momentum bet on the downside. Thats why were seeing extreme days. Its not wise to try to jump in and trade around days like this. Have you to wait until you see settling. Maria and some of the major banks are saying that they do have a vision here and its not good, the major big bank, citigroup, jp morgan chase, Goldman Sachs, projecting zero Earnings Growth for u. S. Companies this year. Last time we spoke with you we were talking about a strong backdrop for the economy and for the stock market because earnings were strong and the economic stats were very strong. Is that changing . Well, i actually even before coronavirus thought that the expectations for 2020 earnings were a bit lofty. They didnt have any adjustments in them for the ongoing tariffs. I think we were already starting to see some pressure on Earnings Growth and needless to say, the virus throws a wrinkle into that. I think the problem is that companies themselves arent equipped with any more answers than the rest of us have. So as youve seen, Many Companies are simply with drawing guidance to analysts. Theyre not providing lower definitive guidance, theyre just with drawing guidance saying we dont know what to do with numbers. But the other rub is that we have seen a decent amount of health and strength on the consumer and Services Side of things, but thats now in question because of the rise. So were not going to get the lift many hoped for in manufacturing and now were starting to see the weakness on the consumer and Services Side of the economy as well as in Earnings Growth and thats why were in the trouble that were in right now from a market perspective. Liz ann, John Hilsenrath here, at what point does this selloff become a buying opportunity for you . Who knows. You know, i dont ever attempt in my perch here at schwab to try to pick precise tops and bottoms. I think thats a fools air rand. I dont think passing on that advice to the extent you would call it advice is of value. Get in, get out, toppings and bottoms, those are gamblings on moments in time. The disciplined process around rebalances would have had you pairing back some your winners at the recent highs in the market and at some point if your exposure gets below your longterm kind of normal strategic allocation, you start buying. You need to let your portfolio tell you when its time to do something, not rely on certainly mine or your own sort of forecast of when you hit that precise bottom. Nobody can do that well. Dagen liz ann, its Dagen Mcdowell. Are retail customers, though, probably better positioned given their asset allocations than even professional investors . I just look i mentioned this last hour, the flows into fixed income funds last year that you had a real concentration in treasuries and fixed income for Retail Investors, regular investors, away from stocks into bonds, isnt that healthy for them given this downdraft . That is healthy. And we consistently esspous diversification. And reminding investors in a low yield environment there is that anchor, that diversification benefit that comes from high qualificationed Income Securities like treasuries. So yes, that has been an anchor in an environment like this and also Retail Investors have not really represented the extremes in terms of the upside in momentum. As i mentioned before, a lot of that was driven by hedge funds, by ctas, by quant driven firms, that gets ex as baited on exacerbated on the downside too. We have found over the decades that those investors that take a disciplined approach, they have a plan, they have longterm Strategic Asset allocation, they rebalance periodically, they dont tend to freak out as much in an environment like this and end up performing better because the rebalancing affords them the opportunity to trim high and add low which when left to our own devices without that discipline we do the opposite. Maria well leave it there. Liz ann, thank you very much, always great to get your calm analysis. We will see you soon. The corona outbreak getting political, President Trump slamming democrats, tweeting, sew the coronavirus which started in china and spread to various countries throughout the world but very slowly in the United States because President Trump closed our border and ended flights very early is now being blamed by the donothing democrats to be the fault of trump, the president writes. The donothing democrats were busy wasting time on the immigration hoax, anything else they could do to make the Republican Party look bad, while i was busy calling early border and flight closings, putting us way ahead in our battle with coronavirus. Dems called it very wrong, the president writes this morning. Joining me now is ohio congressman, House Intelligence Committee brad winstrop. Thank you for joining us. My pleasure. Maria we know this comes after the democrats attacked the administration on several fronts. Give us the status check. Well, its a shame, because i can tell you as a doctor, this virus is not the least bit intimidated by the democrat attacks on whats been taking place. And not only that, lets keep in mind that the cdc, the nih and these agencies take work very hard with the president , with the administration and with congress, actually, to try and do everything they can to make sure that americans are safe, are the same agencies that existed under the previous administration. That doesnt change. Certainly we have reason to doubt some of our agencies but i dont in this case with cdc and nih. The progress that has been made is tremendous. Compare what President Trump has done to what the military has done in korea where theres about 1300 case is in korea, one u. S. Soldier and they did those types of things. They restricted travel. Theyre screening everyone that comes onto their bases. The region has made changes. Youre not going to travel to south korea unless you have a very good reason and are totally screened. And donald trump is trying to do this on a National Level which is much, much tougher. The military is a captive audience. The American People are its a tougher audience. Im also thrilled to see how rapidly we are coming up with antivirals that are starting to be tested and showing positive signs. Antiviral is usually one that stops the replication of the virus, a vaccine is a different thing, usually takes a little bit longer. Now its being reported that we may have a vaccine as early as april. Vaccines like the pole you he i vaccine try to prevent people from ever getting this. Im amazed how rapidly were coming up with a response in order to treat people and to prevent it from ever happening to people. I think they made the right moves. Maria youre talking about the efforts of moderna, Gilead Sciences is working on something. It would be extraordinary if we had a vaccine in place by april. It would be. I was thrilled to find out were that close. This is coming through nih, who is coordinating these types of studies and doing it appropriately. I think we should be patting ourselves on the back. We have had no deaths in the United States of america. We are leading the world in this as we usually do and i we should be praised for it. Its a shame some people are trying to turn this into a political evidence only. Event. You know what, theyre not offering solutions. They didnt say what they would do better. If they do, a lot of times its been hypocrite call. Maria theres also leaking going on. I want to ask about the fight for the fisa reform. We have the picture of the oath of access to classified information that you all have to sign, being in the house intel committee. You have to sign that you are actually going to keep the classified information thats coming into the committee and yet it keeps showing up in the new york times, congressman . Yes, it certainly does. You know what, the staff has to sign that as well. So where are these leaks coming from . And we saw it so blatantly. Weve seen it over the last three years, obviously, but nothing more blatant than what we saw a couple weeks ago. I like to point that out. I would like to have everybody maybe resign. If theres a leak, this is where its coming from, these are coming from people who took the oath. We know where its coming from. Maria where is it coming from, congressman . Its coming from the other side of the aisle because its been maria adam schiff . Well, i cant say directly but you know, one of the things that somebody proposes, maybe we all need to get on a lie detector and see where people come out on that. Or get some people under oath. Because its a problem. But i will say this, about mr. Schiff, hes not addressed it. Hes the chairman of the committee and he has not said this is terrible and its got to stop. He hasnt said one word about it. As far as i know, publicly and he certainly hasnt said it in committee. This is a huge problem. I take this stuff seriously. Maybe its the military side of me, of course. But you know, loose lips sink ships and they dont seem to care about that because more things just keep getting out and they try to do it to their advantage. You know, i even hear people talk about the responsibility to talk to the press. Were supposed to be the committee thats rarely seen and never heard from. Maria the other issue was the fact that adam schiff has been out in front telling us that President Trump colluded with the russians and he said for three years it was in plain sight. And theres no accountability there and yet hes the head of the intel committee. Let me ask you about the fight for a fisa reform, the president s critics are delaying an update to the fisa bill. California congressman he zoey lofgren had been preparing five amendments to the fisa law. Ranking House Democrats say the changes bodies result months of negotiations. We know theres a problem with the fisa court and the fisa warrants that were taken against carter page, the dojs already told us that two of the four warrants that allowed this government to spy on carter page were unlawful, congressman. Right. First of all, let me thank you, maria, for the fine job youve done over the last few years of bringing this to the American People and let them become aware of the abuse that has taken place. Maria thank you. Yeah, youre welcome. Thank you very much. You highlighted it very well and i hope you continue that charge. But we need to have reform within the fisa court. There is no doubt about it. And this should be a simple thing. You know, i say often in the military we have the uniform code of military justice. Apparently we need a uniform code of bureaucratic justice. You look at the fisa abuses and the Inspector General came out and said 17 errors and mo emissionless. Those were deliberate deceits. We need changes put in place for when people abuse their power. This was intentional and it in my mind it breaks the law. But apparently we need to codify that. We need transcripts of whats taking place in the fisa court. We need to have a consistent judge and you need to be penalized if you abuse that and you present unverifiable information and all these types of things that youve been talking about for the last kim of years. Maria you also need accountability. I dont know the public will trust the intel agencies again after the misinformation the last several years. Congressman, good to he so you this morning. Thank you so much. Coming up, markets under pressure this morning, pushing lower on coronavirus fears. We are watching the big bank as theyre issuing warnings over Earnings Growth for the s p 500 certainly and then 2020 is in focus, democrats gear up for the South Carolina primary tomorrow. Weve got a preview of that. Dont miss it. Back in a minute. With over 75 years of savings and service, geico is the easy choice. We could even help you with homeowners. Oh not again oh, thanks you know automated lights are just the beginning. Pretty soon theyre gonna have eyes. Everywhere. Well goodnight. Geico. Over 75 years of savings and service. Everything your trip needs, for everyone you love. Expedia. For everyone you love. Managing lipids like very high tryou diet. Exercise. Tough. But if youre also taking fish oil supplements. You should know. They are not fda approved. They may have saturated fat and may even raise bad cholesterol. 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With more available second row leg room than a chevy suburban. This is the completely reimagined, street smart 2020 ford escape. Maria all right. It is crunch time before tomorrows South Carolina primary, former Vice President joe biden currently holds a sizable lead there. A new poll shows that biden 20 points ahead of Bernie Sanders. Many strategists see tomorrows primary as bidens last opportunity to gain traction in the race against senator Bernie Sanders. A new Fox News National poll shows sanders is knocking biden out of the top spot with a 13 point lead. You could call it, dagen, the last opportunity for joe biden or you could call it the last shot for him to hold onto his grip in this race. Dagen it is. The national polls, not to dismiss that, dont matter as much as the state by state polls. But joe biden not only needs to win South Carolina and by a wide margin, but also pick up some momentum going into other states. Jim clyburn, the House Majority whip, his endorsement was deep and meaningful and he had a story to tell and that is what joe biden is doing on the ground in South Carolina. He is relating to people on an individual basis and there is no better joe biden than when he talks about grief and loss and recovery and redemption and thats exactly what hes been doing in South Carolina. Wonder how his fund raising numbers are. I havent seen the latest data on that. Theres been so much buzz about the other candidates, not as much about him. It will be fascinating to see, just to picture a World Without him. I dont want to jump the gun, but if we would see a democratic ticket without him on it. Maria uh huh. Well, i mean, it looks like were going to see a democratic ticket with sanders at the top of it and potentially Elizabeth Warren who doesnt have a mean thing to say about him in any of these debates. Maria yeah, right. Dagen said the right thing yesterday that shes running for Vice President. Shes running for Vice President , yeah. Dagen i think that if youre picking a running mate, you need somebody who is young, given the fact that Bernie Sanders just had a heart attack and is going to be 3 79 if he won the presidency at his inauguration. Number two, youre shoving the socialist down the throat of voters if you pick Elizabeth Warren as your buddy. I couldnt see him turning around and picking somebody who he has been attacking as taking money from billionaires. Maria the democratic establishment is not going to like that. Dagen shes got a super pac now. Maria this morning, the dow poised to post the worst week since the 2008 financial crisis. The chart says it all this week. Its been a tough one. Were looking at americas hottest job market, the top city for jobs right after this. Stay with us. With sofi, get your credit cards right by consolidating your Credit Card Debt into one monthly payment. And get your Interest Rate right so you can save big. Get a nofee personal loan up to 100k. Get a nofee personal loan i am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. The business of hard work. Hustle. And high fives. Modernized comfort inns and suites have been refreshed because our business is you. Get the lowest price guaranteed on all Choice Hotels when you book direct at choicehotels. Com. How you watch it does too. Tv just keeps Getting Better. This is xfinity x1. Featuring the Emmy Awardwinning voice remote. Streaming Services Without changing passwords and input. Live sports with realtime stats and scores. Access to the most 4k content. And your movies and shows to go. The best tv experience is the best tv value. Xfinity x1. Simple. Easy. Awesome. Xfinity. The future of awesome. Maria welcome back. Texas, austin, texas, topping the list of hottest job markets in the United States for the second year in a row. The ranking has nashville jump to number two, followed by denver. So what makes austin so attractive for employers. Lets find out. Joining us now is the mayor of austin, steve adler. Thank you for joining us and congratulations. Thank you very much. Maria nice to see your name on the list, the city of austin. Tell us where the Job Opportunities are . You know, it was good to see it, second year in a row were top on the list. Its kind of a magical place. The jobs are basically high tech jobs, about 7200 employers, over 160,000 employees, that represents about 16 of all our jobs. Its about twice the national average. Mayor, were seeing in a lot of cities, particularly in places like california, boston, seattle, problems with housing all of these workers. Theres just not enough Housing Stock and home prices, renter costs are going way up. Talk to us about the housing situation there in austin . Is there enough building to bring all the people who want to come work there . You know, the answer is we dont have enough housing in the city. Thats why we have housing prices that are rising way too rapidly. Were trying to do everything we can to increase the supply of housing in our city, were redoing the Land Development code for the first time in 30 years, focusing on increasing housing opportunities along corridors, commercial corridors, in our city. Thats one of our biggest challenges. Maria so austin is dealing also with a homeless crisis, state crews have been cleaning up and cleaning out some homeless camps, just this week about 100 tons of trash hauled out from one homeless camp. What else is being done to control this problem, mayor adler, and of course were seeing this situation even worse in places like San Francisco and los angeles. Its worse in a lot of places but we recognize that if we dont do something now, austin and other cities could be headed in that direction. So again, were trying to create and increase the number of opportunities to house people and to get them services. We realize that you dont beat this challenge by hiding it. You actually have to recognize it. You have to get people in homes. You have to get them services and thats what were focused on. Look at the infrastructure again of austin. I have cousins who live down there. They love it but theyre also saying if you look at the roadways, incredibly crowded because there are so Many Companies in the city right now. How are you tackling some of those infrastructure issues . Well, austin really needs to have a mass Public Transit system. Weve never really had one that operated at a high level and given lots of people in the city choices. My hope is this coming november our city is going to have an election to actually put that kind of system in our city. Its long overdue and were going to need it. Maria mr. Mayor, i know there are 10 cas 10 cases of coronavin texas, are you considering cancelling south by southwest this year. I know its an important conference economically for the city. The conference is important but the safe of our community and visitors is the highest priority. Our Public Health officials are looking and meeting every day on this crisis, talking to cities around the country, looking at the best practices. So thats the kind of thing that were just monitoring day by day and making decisions every day. Maria you havent decided yet if youll cancel south by southwest then . No plans to cancel it yet. Again, this virus is something that our city and all cities are looking at daily. Maria thats in the next two weeks, right, south by southwest . It is. It is. Maria mayor steve adler, good to see you, sir. Thank you. Consistent a grates on making that congrats on making that great list. Futures point to a triple digit decline this morning. Were watching Chinese Companies this morning which have taken a huge hit. As you can see. Were looking at declines across the board. Eat up, well tell you how Many Americans are choosing to dine out. Back in a minute. Apps are used everywhere. Except work. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com maria welcome back. Good friday morning, everybody. Thanks so much for joining us. Im Maria Bartiromo. It is friday, february 28. Your top stories right now 7 31 a. M. On the east coast. We have a selloff underway once again across the globe. We are off of the lows of the morning, however. More than 83,000 reported cases of coronavirus and more than 2800 deaths. That is the underlying upset for markets. U. S. Markets are in correction territory and futures are indicating another selloff this morning. The dow had been down overnight 677 points. So this decline of 124 points is actually a rally. We have rallied off of the bottom with the dow now down just half of a percent. Yesterday was a tough day, the dow, nasdaq and s p 500 all had their biggest point declines ever yesterday with the dow down 1,190 points, 4 andahalf percent, this market is on track for the worst week since the 2008 financial crisis with all the major indices as you can see giving up 4 plus percent alone. Take a look at the yield on the 10 year treasury, falling below 1. 16 . Now sitting at 1. 21 , that is down about 5 basis points. Youre looking at a bounce because were off of the lows on rates. In europe this morning, markets are also headed for the worst week since the financial crisis with the fq100 down 218 points, cac down 157 points, new data this morning shows that the french Consumer Spending took a sharp dive last month before the coronavirus even hit the area. The dax index in germany is down 441 points. Lets check asia overnight, there it was a tough session as well, as you can see, the worst performer was the shanghai composite in china, down 3 and three quarters percent. Then there is this, disney shutting down its park in toke i did toke tokyo for two weekr coronavirus concerns. Michael bloomberg courting a running mate. Cheryl with details there. Cheryl according to a report, the billionaire candidate reached out to andrew yang and floated the idea of making yang his running mate. Yang who dropped out earlier this month did not commit to joining the former new york mayor. Bloomberg campaign responded to the port, they say yang was not being seriously considered for the role. Well, the obesity rate in america continues to climb. A Government Survey by the centers for Disease Control and prevention finds that 42 of adults are seriously overweight. Thats slightly higher from the last survey. Obesity can lead to a lot of serious medical problems like heart disease, diabetes, and cancer. Well, here is something to chew on. A new survey says nearly 163 Million People dine out once a week. Those are pretty big numbers, guys, despite an uptick in online ordering. On average 73 a week gets spent on a wheel, adds up to 600 billion annually. The biggest reason for eating out, the convenience. Maybe the fun a little bit too. And finally, the nominees are out for the academy of Country Music awards. Grammy Winning Group dan lachey leading the pack. Justin bieber collaborated with the duo on a crossover, 10,000 hours. Thats the first time hes been nominated for an aca award. Little nozx nominated for old town road. The big show going to be held in las vegas on april 5th, maria. It is one of obviously the biggest award shows in Country Music and its fun to watch. Maria a big favorite of ours. Cheryl love it. Maria coronavirus cases are growing across the world, 83,000 are known cases including the first in subsa Subsahara Africa. The outbreak is said to have pandemic potential. California announced 8,400 people are being monitored for symptoms but they only have 200 testing kits for the time being. This all comes as a whistleblower is claiming the health and Human Services sent employees to evaluate hundreds of americans rescued from china but they were not wearing the proper protective gear. Joining us right now is senior scholar at the Johns Hopkins center for health, security and infectious disease, dr. Amesh adalja. Good to see you this morning. Thanks very much for joining us. As of now, can we even tell the difference between the coronavirus and the common flu . No, you cannot. You need to do a diagnostic test. Thats why the short damage of diagnostic testing kits in the United States is such a problem. Clinically you cannot tell the two apart. Theyre indistinguishable. Maria why are people dying from coronavirus and for the flu you know, you can care for it and survive fine . We do think that there is this ability that this coronavirus has to cause severe disease in certain individuals, those who are advanced age, those who have other medical problems. We still dont quite understand who the people are that at most risk for dying and we dont quite understand the disparity we see in the Hubei Province of china with the death rate being higher than other parts of china around around the world. There is the idea of trying to understand what the true case fatality ratio is. The only way to figure that out is if we can test people, even with mild illness, so we can understand what the true ratio is of the severe to mild cases and it may be less than 1 when we can do that type of testing. Maria Dagen Mcdowell i in the studio. This is what weve been talking about, is a lot of the supplies are made in china. Testing kits are in short supply, plastic gloves and masks all in short supply and dont let me get into the Prescription Drug situation. Dagen right. And doctor, i know that the secretary of health and Human Services was talking yesterday about them ramping up production of the testing kit, but is that enough . No, its not enough. Its not just going to be the testing kits. We need to have commercial laboratories being able to do this test. We need to have hospitals being able to do this test. We ideally need the tests in the hands of doctors in a point of care form. We need to be aggressive with testing. We hear reports about needing to import tests from japan. We should be able to have our own tests quickly and rapidly. Maria wheeze your optimism or whats your optimism or lack of about Companies Like Gilead Sciences, moderna, working on a vaccine right now. Were told that gilead is poised to introduce potential drug as early as next month. We know theres no vaccine for this deadly virus yet. What are you expecting in terms of the efforts and what should we know about protecting ourselves in the meantime . I do think there has been Rapid Development of a vaccine by multiple different companies, and were going to go into clinical testing trials very quickly. We shouldnt expect a vaccine to be able until a year to 18 months in the kwa quantities necessary. Gilead is doing a loot of work with an antiviral compound they developed for ebola. Theyve given it to certain patients experimentally. There is a lot of promise with this drug. It may be we use this drug on severely infected rid individuas right now. The best method of prevention is to wash your hands a lot, cough into your sleeve, just the same simple flu prevention tips until we get a vaccine. Senior citizens are more susceptible to dying if they contract this disease. Im wondering, should they modify their routines in any way or is that prem premature to dot in this country right now . Its probably premature in this country to do that. Near the middle of flu season. Hopefully the same things done to prevent influenza will be taken for the coronavirus. If youre traveling to italy and youre an elderly person thats frail or has a tendency to get flulike illnesses, you should probably stop travel if its not essential. Maria we dont have any answer as to why this is deadly and the flu isnt. Its going to take a lot of basic science work and a lot of digging into the patient histories of those who had severe illness and trying to figure out what the common factors are. Do they all have diabetes. Are they obese. What other medical problems do they have and what is the clinical course like. Are they getting secondary bacterial infections, is it just the virus. What was the treatment like. Were there lapses in treatment. Were they using for example steroids which might have made things worse. Its a lot of effort that has to work to go to work to figure out exactly the mysteries of what causes people to die from the disease and what causes people to have mild illness. We know most cases are going to be mild. Maria well leave it there. Good to see you, thank you very much for the information. Coming up, markets under pressure this morning amid all of the fears around coronavirus, a stock alerlt, big lots plunging after warning of weak First Quarter sales due to the virus, that stock is losing 31 of its value right now. Then the ceo of apple, tim cook, speaks to fox business on company concerns over coronavirus. Weve got that coming up. Plus, turning the tables on meshings ill be answers your questions later this hour in our ask maria segment. Do join us for that coming up. Back in a minute. Music yea, you can be the greatest you can be the best you can be the king kong bangin on your chest you can beat the world you can beat the war you can talk to god while bangin on his door you can throw your hands up you can beat the clock you can move a mountain you can break rocks you can be a master dont wait for luck dedicate yourself and you can find yourself standin in the hall of fame yea and the worlds gonna know your name, yea and youll be on the walls of the hall of fame you can be a champion be a champion in the walls of the hall of fame be students, be teachers, be politicians, be preachers yea, yea be believers, be leaders, be astronauts, be champions standin in the hall of fame maria welcome back. Well, amid the coronavirus fears and the potential effect on supply chain and revenue, apples ceo tim cook discussed the Technology Giants strategy Going Forward in a fox business exclusive. Susan lee is here with those details. Good morning, maria. Yesterday we tracked tim cook and the apple team across birmingham, alabama which was pivotal in the role in the civil rights movement, also the first place apple will launch the Education Initiative for apple that theyre supporting in the community. But we also of course talked to him about the coronavirus, given that apple arguably is the most Successful Company in china, they have 20 of their sales in the country, still build 50 of their iphones and we asked tim cook about the ongoing disruption caused by the coronavirus. Do you anticipate disruption that will last past the Second Quarter . Well, our Second Quarter is a quarter were in, just to be clear, with our investors. Its the march quarter. Your calendar First Quarter. And so i dont know the answer to that yet. Were still in february and, you know, theres reason for optimism but well see. You know, i think the focus in the last few days have turned off of china, onto korea and italy. And so i think its very important to see what happens there and whether something new comes out of that. So apple of course being one of the first Major Companies to warn they will not meet Sales Guidance because of the ongoing coronavirus and the impact to consumers and producers in the country. Also, he talked about the phase three of getting through the hump and i guess the worst of the disease and he feels that china is actually Getting Better since you see the number of new cases getting smaller each and every day. We were following him across birmingham, alabama with the charity initiative, talking to him about business, about the supply chain, whats happening with apples business, with the stock market volatility that were seeing. Apple stock is down around 20 or so from its recent highs and so we also tracked him as he tried to educate and give back to the community as well. It makes my heart sing to say it simplistically. You know, theres so much that we can all do from an equality point of view, but one of the most important, maybe the most important is education. And so if we can bring coding in, if we can bring cre creative skills, people will have a future. It was really just a great adventure to follow him across alabama and birmingham because tim cook grew up in the state of alabama, went to auburn university. It was a home coming of sorts for him. Maria its really important certainly for the world but theyre not only relying on the supply chain in china, but also the demand, because the growth obviously you have expectations included that include people buying their products in china. Did he say anything to you about moving production about china, not being so reliant begin now we see whats taken place because of the crisis. Its something that hes reviewing. I did ask him that, especially since hes the actor detective e fast moving supply chain which has a big base in china. He says its being reviewed. I asked if he thinks its a Inflection Point in the china manufacturing base, its something well talk about later on in the exclusive interview. Maria great interview. Thank you for bringing it to us. You can hear r m more of the interview today at 12 00 and 3 00 p. M. Eastern. Markets under pressure this morning on the coronavirus fears, were keeping an eye on Companies Working on drugs and vaccines to address the veigh v, whether treatment or ultimate vaccine. Well take a look at stocks when we come back. Markets off of the lows, we are down 79 points on the dow industrials. Coming up, im answering your questions next. It is time to ask maria. Stay with us. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. Theres a company thats talked than me jd power. People 448,134 to be exact. They answered 410 questions in 8 categories about vehicle quality. And when they were done, chevy earned more j. D. Power quality awards across cars, trucks and suvs than any other brand over the last four years. So on behalf of chevrolet, i want to say thank you, real people. Youre welcome. Were gonna need a bigger room. Its our most dangerous addiction. And to get the whole world clean . That takes a lot more than an alternative. So we took our worst vice, and turned it into the dna for a better system. Materials made from recycled plastic woven and molded into all the things we consume. We created bionic and put the word out with godaddy. What will you change . Make the world you want. Maria welcome back. Well, so you know, usually im the one asking the questions but the tables have turned. You ask, now i am answering your questions from social media. Lets get started. The first question this morning, have you ever considered teaching journalism at a university . Well, actually a few years ago i was an adjunct professor at nyu sterns school of business. I taught business and the media. I enjoyed teaching tremendously, loved interacting with the students. It was on one night a week, on thursday nights. It was really too much for me to continue while also holding my fulltime job. I do love school. I would love to do it again at some point. And there you saw pictures of me at the graduation of nyu with arethat franklin that was. Do you miss the old old days from the floor of new york exchange. I do miss my days at the nyc so much. It was an important time for me and my career, being the first person to broadcast from the floor of the ne New York Stock Exchange, at the peak in terms of trading. There were very few women, 25 years ago. I made great friendships, it was like a family there and there were tons of traditions. This is a shot of me on the last day. When i left the traders gave me whats called the clapa i was walking onto the set and everybody stopped and they started clapping. I walked off the set crying. I couldnt believe it. They started clapping for me for like five minutes. They gave me the clapoff and ill never forget. I have tons of friends over there. Thank you so much to everybody on the floor of the New York Stock Exchange. Finally, do you like to cook and if so do you make recipes from your mom and grandmothers cook books, do you do sunday dinners with your family. I absolutely do. I try be with my parents as much as possible, its my favorite thing to don the weekends. We make all sorts of things. When my sister is there she takes it up a notch. Shes an incredible cook. Theres my sister who joined me once on fox and friends when we made that pizza on fox and friends. Last week i made a delicious chicken south. I told you i was going to stay home for the weekend when my husband was traveling. I took pictures of every moment when i was doing it, the steps. It wasnt only delicious but it was also incredibly healthy. I jampacked it with antioxidants. Check out my res pie o recipe with the mornings with maria account. I put garlic and ginger in there, it makes it antioxidant. It was healthy and delicious. I know you have a recipe, Dagen Mcdowell, a vegan recipe. Dagen a vegan cal soup with ps tope s. To on top of it. You learned on the job. Its like you dive in and just work and thats kind of the greatest the greatest lesson. Maria youre right. Its easy because i live it. When you love what you do, thats why i tell people make sure you love what you do, emerging generations coming up. Your work ethic is such a good example for students too. They need to see that. That was my question, how many hours a week are you working . Dagen when shes not asleep. Maria youre supposed to put the questions in in advance. Im on the air 16 andahalf hours a week. So thats that. But the preparation and the reading material and on the phones is many more. Dagen youre never not working. The key to the chicken soup is a kosher chicken. My mother made amazing chicken soup. Maria i did organic chicken. The chicken called a poulette. Maria thank you for the tip. We are watching markets, futures pointing to a triple digit loss, we are bouncing off of the lows, we were well off the lows. Dow industrials down 123, nasdaq down 42, s p lower by 14. Were watching markets amid the coronavirus crisis. Plus Robert Kaplan is here, he will join me to talk markets and the backdrop of the economy. Spend the night in a new jersey landmark, check this out. Well tell you more about that. Yes, you can stay in that, thats next hours on mornings with maria. Stay with us. Its surprising how the bigger a city gets. The smaller it starts to feel. Which makes it even more surprising, how big it feels in here. With sliding rear seats. And more available second row legroom than say. A chevy suburban. This is the completely reimagined 2020 ford escape. [ siren ] doug give me your hand i can save you. Lots of money with Liberty Mutual we customize your Car Insurance so you only pay for what you need only pay for what you need. Liberty. Liberty. Liberty. Liberty. Market selling off cross the globe once again as coronavirus fears continue to grow u. S. Markets now oish officially in correction territory meanwhile, that means they are down 10 from highs, they are extending the losses this morning, ahead of the open, but the market is well off the lows, this morning. Overnight dow down 677 points right now dow futures down 151 nasdaq futures down 52 s p down 18 comes on top of another tough day yesterday, all three indices dow, nasdaq s p 500, have largest point declines ever yesterday. Each oest major indices down 4 1 2 on day stocks on track for worst week since 2008 financial crisis numbers right now is, as you can see, since february 21 talking about serious declines dow down 11 nasdaq ten and one half s p down 10 and 3 4 we had hit records this month when seeing pullback from records yield on 10year treasury another new low this morning, below 1. 16 now it has bounced off that 1. 21 down 5 basis points incredible lows on yields, coronavirus cases are growing across the world what we know more than 83,000 known cases, the World Health Organization says has pandemic potential cbdc earlier in the week california monitoring 8400 people, whistleblower is alleging federal employee sent to help quarantine locations did not have proper protection did not wear protective gear more Companies Issuing stark warnings investors a bite out of beyond meat under pressure missing expectations that stock down 12 1 2 beyond meat says it plans to promote healthyness of product pg e falling premarket regulators proposed a fine for California Wildfires that, devastated hope for california that was, of course, in 2017, 2018 that stock down another 2 and 3 this morning South Carolina primary tomorrow, senator Bernie Sanders, knocking joe biden out of first place a fox news poll majority believes President Trump will win the election mornings with maria is live right now. Less than 90 points away downerer start of trading jackie on the floor of the New York Stock Exchange jackie do you feel there is buying interest because we are well off the lows overnight. It could be, but i will tell you maria this morning, on the floor traders are on edge this has been a rough week for everybody as you he mentioned steep declines cross all three indices steepest we have seen ever this is more than 3,000 points off the dow when you look at this 25, 349 futures you think just trading, at 29,000, this correction that weve come into quickly within span of six days traders nervous down they are not sure what is going to happen lets look at oil prices you can see oil trading over 45 as there are a barrel, this is one of those risk off days you can see that people thinking about Global Growth thinking about demand and this price plummeted, the 10year note also troubling scenario when you think about the flight to safety, and how people are feeling right now, hit new alltime low yesterday, continues to go down 1. 2 , that is incredible as money pouring into the bond market the yields continue to drop. The thing is this, this is about the coronavirus you mentioned the financial crisis, you know government was able to step in, try to stabilize things what traders are saying we just dont know what is going to happen here this that is black swan event a toll on markets look at that map you showed how the disease is spreading, i mean there is a lot of concern out there, right now maria. Maria for sure, we see that in markets that is for sure thank you Jackie Deangelis floor of nyse, alliance chief economic adviser Mohamed Elerian pleasure to get insights what do you want to do as investor in face of all this. I think you wait maria. Theres two distinct dynamics one fundamentals unfortunately getting worse economic sudden stops where Economic Activity come to standstill around the world. But the other technical as you noted, trying to form a technical bottom the california news came out took it out, hopefully, we can establish a technical bottom until er he the personals approve be carefully. Jpmorgan chase Goldman Sachs protecting zero Earnings Growth for u. S. Companies this year, mohamed we were expecting Profit Growth doesnt look like it is happening. We were, along came coronavirus that hit companies in so many different ways maria. It means lower demand so revenue goes down, it means higher cost, it means you cant even move inventory funding will become more difficult profit margin squeezed suj you can sure supply lines an economic hit in terms of lower Global Economic growth and directly to companies on both sides of the Balance Sheet. What is your take in terms of the fed next move expecting Federal Reserve on hold this year but now with things, changing, and new expectations, of things slowing down quite a bit will the fed cut Interest Rates among coronavirus outbreak. They will cut and hopefully they can cut as part of a coordinated Global Action there isnt much that lower Interest Rates or even direct liquidity inreject shuns can have do to reward confidence this is confidence the chinese worker going back to faiblth people willing to travel again public gatherings a safe place in europe, Interest Rates lower Interest Rates can help Balance Sheet side not going to help to reas to your confidence we need he even if you get sick changes of something bad happening are lower and lower best way honestly is through a vaccine. Are these Interest Rates telling you anything, where 10year is talking about 10year dropping below 1. 20 earlier. Yes, and two year went below 1 telling me two things maria. One that is people realize that Global Growth is going to be hit it wouldnt surprise me, if italy, germany a number of countries go into recession first half of the year telling you you massive expectation of further Interest Rate cuts around the world. Thanks so much. Thank you Mohamed Elerian insights as always back to break it down you heard about what mohamed said recession for europe you have been pretty calming this morning optimistic. Yeah, and i would say this, i think it is really important that people not take what the market is doing right now as a signal of how serious the Public Health crisis is, you know, the market tends to move in very big lurches the the wall street journal is reporting market developments amplifying, expecting low volatility environment stock prices moving unwind trades high volatility amplifies selling i dont think panic should be taken as reason to panic about Health Situation the other thing would i say is you know i just how lethal this virus is from data i understand fairly lethal in Hubei Province where wuhan is, outside of that death tolls have been a little bit more malliable korea hit by this, it is Something Like less than one half of one percent of people who get the virus end up dying from it, again a reason to stay calm lets not panic about the whole thing. What we heard from doctor early who tried to differentiator soliciting difference between flu coronavirus why so deadly, deadly on certain groups not everybody. Specific places, hubei in plaeshl looks more under control owed of hubei. Dagen 2. 9 of people oval average 2. 9 people confirmed being infected died. Most in hubei. Right but new in other areas not to downplay fatal of this particularly with people, who are over the age of 60. Secondly, sars, 10 ebb effected that was great deal more deadly than this. But the flu, people compare to it common flew has a fatality rate 0. 1 , so it is much more deadly, based on what we know so far, the flu, so if people are concerned you know there is a balance between fear and panic, are concern, and the concern should show up with maybe restricting travel, washing your hands vigorously does mean taking clothes off really disinfecting entire body when you get to your home again, we are Walking Around new york city you have to assume there are people probably have it in new york right now he we just dont know yet. Stock rally yesterday, one company that was going up. So if you are Retail Investor feeling emotional panicky time not to make changes to portfolio stick to longterm plan there for a reason. Provides loading up on fixed income etf Hedge Fund Managers before he selloff were upping leverage who has it i right. Retail again he a lot of the trades all of a sudden in wind in a days time causing more volatility pm. To dagens point younger investors are invested in 401 k s all thely have balance built in. Dont underestimate other things could be working behind scenes in this market selloff the valuation where we had gone the speculation around Bernie Sanders what that could mean in terms of it can candidate as well as doing so well in polls ahead of South Carolina tomorrow. Some other stories this morning, coronavirus affecting Subsahara Africa nigeria reporting first case in japan Tokyo Disneyland closed two weeks, as a precaution, this comes amid numbers out of california this morning, this new information, 8400 people in california are being monitored for coronavirus symptoms at the same time a whistleblower is claiming health and Human Services sent employees to evaluate hundreds of american evacuees from china without wearing proper pro technicalive gear. A prayer vigil for five killed in milwaukee brewery the suspect worked as electrician he shot killed five kroeshgz coworkers, killed himself. The email scams more sophisticated successful than before the wall street journal reporting estimated losses from fraud targeting american besides and individuals totally nearly 2 billion dollars a year one twist this time around a skwaemer sends a request to a Business Payroll department to up patriot workers direct deposit information the money goes straight into crooks account. Who needs a hotel you can sleep inside a giant elephant lucy the elephant in mar gate new jersey is listed augmented reality one tonight say for 138 dollars a tonight money from effort will pay for major renovation project in new jersey. Sounds like i bet it is small. Coming up, we are bringing Market Analysis all morning deadly coronavirus fuels a major market selloff Mohamed Elerian telling me moments ago investors should wait amid losses also expecting a recession, in places like italy germany and france i will speak with dallas Federal Reserve president Robert Kaplan on economic cutback of this outbreak 8 30 a. M. Eastern stay with us back in a i am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Yes im stuck in the middle with you, no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its the most open and secure public cloud for business. It can manage all your apps and data from anywhere. So it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. Without getting in your way. Youll remember where you were. Ever. This day has never been closer. Today, thanks to your help, the leukemia and Lymphoma Society is saving lives. Lls funded research has led to nearly every blood Cancer Treatment available, and is now helping patients with other kinds of cancer. At lls, Beating Cancer is in our blood. Join us at lls. Org welcome back major coronavirus selloff on wall street continuing lawmakers rushing to figure out a plan to protect American People congress reportedly considering emergency spending package, that could provide between 6 and 8 billion dollars in aid, that money would go to the department of health and Human Services state Department Homeland Security Defense department joining me West Virginia senator, great to have you this morning. Thank you. This you thank you for joining us assess needs tell us how much you believe is needed in terms of the supplemental money package. Well i would say short term where we are right now, i think secretary azar and others, secretary wolf and Homeland Security has been able to use resources we had in place for rapidly response we are looking at what greater resource needed to go to states i think 6 to 8 billion is probably where we are going to end up the initial ask i think 2 1 2 billion, and i think you can see that growing in the president said in press conference whatever you give we will take, and so i think we are going to do a deep dive next week exactly what is needed to have correct response all stages of response. Once this crisis taught us how reliant United States is on china look at some things relying on china for from the you know plastic gloves masks to active ingredients in Prescription Drugs to testing kits why dont we have enough testing kits. I think that is an issue, and i think that i think a lot of it has been probably he swallowed up by china case of normal problem they have gone inward not no longer exporting but we are going to meet that challenge have enough testing kits i think we need to have confidence here, in what is the most magnificent Health System certainly Health Researchers in the world, so i think that testing kits, supply, i heard from head of the cdc that we have supplies but really where we need supplies at Health Workers with hospital folks that are handling people so i think we need to not overreact here in terms of cleaning off the shelves what we tend to do to make sure that we are being smart, and facing this right way maria kro is this part of where the money will be used to make absolutely. That is for preparedness. Preparedness. 6 to 8 billion dollars that you are referring to right further towards research of inoculation, also for what types of medicines emerging might be help to help tamiflu type reaction, it is kind of all handson deck. Let me ask you about bipartisan aid effort, some democrats are still attempting to politics this we see it, about President Trump tweeting this overnight, so the coronavirus started in china, and spread to various countries throughout the world very slowly in United States because President Trump closed our border ended flights very early is now blamed by the donothing democrats to be the fault of trump. Writes the president do nothing analysts busy wasting time on immigration hoax anything else to make the Republican Party look bad i was busy calling early border flight closings putting us way ahead in battle with coronavirus dems called right wrong, senator your reaction to this we are in an National International crisis seeing finger pointing by nancy pelosi adam schiff, chuck schumer. Very disappointing. But i think if you look what they said yesterday, i am talking about senator schumer pleeshg pelosi kind of pulled back from being that i think realized looking at potential Health Crisis looking at people fears rising every day, if you have a small baby or if you have elderly person in your home somebody challenged, and so i said put down arms we can do that on Appropriations Committee and will. Thank you so much, well be right back. [sfx doorbell] hello, i saw you move in, and i wanted to welcome you to the neighborhood with some homemade biscuits oh, thats so nice and a little tip, geico could help you save on homeowners insurance. Hmm cookies uhh, biscuits. Mmmm, is there a little nutmeg in there . Oh its my mums secret recipe. You can tell me. Its a secret. Is it cinnamon . Its my mums secret recipe. Call geico and see how easy saving on homeowners and condo insurance can be. Ill come back for the plate. Released after being arrested charged with Illegal Assembly tied to protest indigenous of a reporter he is now out and he will is if a court date coming up, markets in major selloff mode we are well off lows of the day, take a look dow industrials down 179 points dow had been down overnight 677 points, we are looking at Economic Data out this morning, january personal income spending coming up right after this break jon you have been positive about maybe this being overreaction from markets. Hopefully, hopefully it is. In terms of data bc before corona you got to be careful. Back with Economic Data. Stay im here to warn you about telephone scammers pretending to be government employees. Some of these scammers may say threatening things like you will be arrested if you dont make payments or provide personal information. Do not fall for these tricks. These calls are not from us real Social Security employees will never threaten you for information or money. If you receive a call like this hang up never give the caller your personal information, like your Social Security number or bank account, or send money in any form cash, gift cards, wire transfers or prepaid debit cards. Report the call to our Law Enforcement arm, the office of the Inspector General at oig. Ssa. Gov share this information with your friends and family. Personal spending numbers right now, we got income up 6 10 of a percent personal income much better than expectations, the estimate called for personal income to be up 3 10 of a percent. Spending however a little less than expected, the estimate on spending was up 3 10 of a percent numbers up 10 of a percent personal income january up 6 10 of a percent personal spending up 10 of one percent, this 10 spending down a fraction from expectations as you see the markets have held steady, in face of Economic Data just hitting the tape, the core pce inflation measure coming out the person income and spending, certainly are way different than estimates with income up 6 10 of a percent we know earnings have been rising wages are up, and the lower end of the wage scale has seen really the biggest increase in wages 6 10 of a percent higher january personal income person spending up 2 10 of a percent shy of estimate called for gain 3 10 of a percent the core pce price index up 1 10 of a percent versus up 2 10 no indication of inflation, based on numbers that we are seeing this morning, the coronavirus taking a toll on markets futures off the lows of the morning nonetheless down, 173 points, at worst the dow had been down 677 points, stocks on track for worst week since 2008 financial crisis are in correction territory down 10 or more from highs, it was a tough week this week, where we saw sizable decreases for market averages coronavirus raising concerns about future of the economy, the yields moving lower than 10year treasury yield 12. 212 off early lows we saw 10 yes, sir below 1. 2 two year below 1 the president of the federal bank dallas robert cal lan, mr. Kaplan always a pleasure to see you thank you very much for being here this morning. Good to see you maria. What do you think dropping in yields tell us. For the moment they tell us that there is a a strong right . To quality, because there is uncertainty about the impact and duration of the coronavirus that is the primary thing they are telling us. The we know that the First Quarter and potentially more are going to be substantialliwalk than expected but i think mainly what you are seeing in treasury market is substantial flight to quality. How significant a slowdown are you expecting given this new information that has that has taken place with the coronavirus, impact on corporate earnings and broader economy . So so i am at the stage where with my team we are running looking at different scenarios i am talking to a wide range of companies. So we can tell already, theres some supply effect. Has been really reported, by companies who supply chains and lines with china have been disrupted , but the thing that that companies are trying to assess and what were trying to assess what will be the demand effect we already know travel industry is affected in the United States we know oil industry is affected, already. But that is the part that is uncertain we are going to have to continue to monitor this, and determine early what that that is what companies i talked to trying to determine what were trying to determine. We know that obviously, china has been hit significantly. In all of this that is where this virus originated activity Economic Activity in and out of china is nil, now that a big portion of the Global Economy how significant will chinas problems be on rest of the world in your view . Well, when china is a is a meaningful percentage as you point out of Global Growth. So we know Global Growth in First Quarter to first half of the year is going to be he substantially weaker spills to u. S. Economy good Example Energy when price of oil is lower we produce less in United States, we have more likely have layoffs, restructure you areings, less activity, it helps consumer, but also has a big effect on that industry, and we are seeing, other spillover effects likely too. Has conversation in your room changed in terms of cut Interest Rates this year . I am going to spend the next two weeks we have a meeting, federal open Market Committee meeting in a couple weeks little more than two weeks i will be, going into that meeting prepared to make an judgment probably as i sit here today not going to comment publicly. I have said up to now i thought it was too soon to make a judgment. But i will be prepared to make a judgment, and have the judgment on what i think we ought to go into march meeting obviously, in subsequent meetings this year. I mean worth just you know, considering the fact that now as these things have worsened markets are expecting that the Federal Reserve is going to have to cut Interest Rates, if you dont cut Interest Rates do you slelt the negativity sublet he the negativity. The thing i am watching in particular is what is the depth of the impact what is the duration of the impact, and i am very closely watching financial conditions when i say financial conditions, i am not talking so much about the stock market, we started at historically elevated he levels before this slowly, we are getting back to levels that existed in october i am carefully watching credit spreads, and liquidity availability of capital. And in terms of market probabilities you know, i am used to the idea through entire career those can change on a dime trying to keep attention what is going on underlying economy particularly financial conditions, that will be driving my thinking. Financial conditions feed on themselves light because when you see a market that is down 1,000 points 1100 points, as a consumer you think i better not spend any money things are getting bad that sort of a vicious cycle. Can have psychological effect i track equity val to gdp looking at for years we are at 50year highs, literally six weeks ago, since wilshire was formed, this is highest enterprise value to gdp that weve seen including the dot com boom may not be surprising there was going to be some type of selloff, obviously, this is virus will related to very serious thing. But, yes, this kind of rapidly o selloff can lead to tightening other financial conditions can affect consumers can affect psychology very mindful of that. Why the expectations go to fed the Federal Reserve need to cut Interest Rates, but i got to ask you, really when you look at where rates are right now, what impact a cut in Interest Rates would have anyway, would it be significant given level we are at right now . So going into this we were already my view stance every Monetary Policy into this accommodative robust financial conditions robust liquidity helped explain probably elevates financial assets. So again what i am going to be looking at, is what is happening particularly to the cost and availability of created, i will be carefully watching credit spreads up to now other than for weaker credits they have widened not substantially but i will be watching that, and, a a fed funds adjustment historically helped when you got a severe tightening financial conditions, so i will be watching for that. But the truth is, as you point out, there will be other things in the context that i speak with widespread they are watching much more significantly the containment procedures, diagnostic proceed yourself preparedness o most ceos have teams the number one thing looking at availability of capital cost of capital so far very good. I was speaking with senator capito for preparedness in United States when it comes to Federal Reserve are there other movers robert that you can be making at the fed away from cutting Interest Rates, that would also loosen up activity i mean perhaps something around the Balance Sheet or other moves, you know when chairman bernanke was faced with the crisis, that he was, in 2007 came up with real innovative ways to stimulate. Dependent how this unfolds, there are we dont have the tool the robust tool kit we might have had prefinancial crisis because rates are much lower, but that doesnt i mean we dont have substantial tools including our Balance Sheet, but i think it is he it is too soon for me to comment on what we might or might not do. Right now i think it is wiser to be trying to understand how this is likely to unfold, and be prepared and we will be prepared. Radio you are watching availability of credit and credit spreads how closely are you watching the markets in terms of the wealth effect and what it is doing in terms of the nervousness perception of people. So i obviously, i come from markets background watching all those things, and we will continue to monitor all those things very, very carefully but my main barometer is how it effects the underlying economy trying to understand that linkage. Talking with Mohamed Elerian he said likely recession in europe rejegs in germany recession in dprans perhaps recession in italy as well straw that broke camels back for european economies. If that were to happen does that translate into again vicious cycles for United States. In our case as you mentioned we had expected very sluggish growth in europe. Germany for example, was teetering, around a recession before this. So listen when globe growth is slower it has always been my view is my view it will spill over to some extent into the u. S. So we have to take that into account. Why the subject negative rates comes up europeans dealing with negative wraits do you want to see negative rates in the u. S. No, i dont. I think this is where you get into need for broad economic policy, negative rates, i think, there is a we whether they actually do stimulate growth they certainly have a negative impact on Financial System on intermediaries money Market Industry in this Country Companies are very right on on commercial paper market relies on that i think it could go great damage. So no, i think this is why since before i enin this job i have said we need broader economic policy, or a than just Monetary Policy fiscal policy Structural Reforms i dont want the o see fr go do those lengths i question whether they are effective. What fiscal policy changes would you you look to see administration is talking about a tax cut plan 2. 0 is that what you are talking aboutor something else. No, no. So as ive said in previous discussions, the two things i am structurally watching, workforce growth in the United States is slowing. We believe from 2020 on, workforce growth in United States is going to be less than one half of 1 . It was 70s two 3 4 percent decelerating last 40, 50 years we need to find policies that can get more people in the workforce, we have been working on but, also, immigration reforms sensitive topic has to be part of the conversation, weve got to grow workforce, child care policies others that help people into workforce, and second thing, i have been a big proponent we need to improve productivity dramatically beefedup skills coo country Early Childhood literacy better secondary education raise gdp two things i talked about most consistently. You were a businessman before a Federal Reserve official you are in touch with a lot of different businesses in texas, and beyond. Tell me what you are hearing from the managers of businesses ceos are they once again, shutting down in terms of he spending . Are they going to easy up on i. T. Spending, et cetera, things we need to see, in order for growth to continue . They were they were cautious as last year because of trade uncertainty. I think with some stabilization we would have seen Better Business investment other than Energy Sector where we think capex even before this was going to be down 15 but you are seeing uncertainty. Caused Business Managers not to cancel projects but just be judicious take their time, and be very prudent and i think that is what you are going to see here i dont think you are going to see people cancel altogether, you could well see Companies Just basically turn over a few more cards and see how this plays out before they make certain decisions, i think we are likely to see some of that. What would be appropriate growth number to expect for 2020 . A i dont think it makes sense to put a number on it, going into the year, before the coronavirus probably best data point i could give you i was, i was confident we could grow at 2 1 4 or a little better in the United States got a very strong consumer weve got a very tight job market, household Balance Sheets better shape this coronavirus is going to throw a Monkey Wrench into that i think worth noting eth the kind of growth we were expecting before this. Because if if this turns out to be, about less persist more transitory i am hopefully, we can get back to that we are in stage invite here where there is time unknowns for us to make a sensible forecast here. Maybe this is creating new plans for companies that were relying so much on china, perhaps we will see more manufacturing come back to the United States . I think we will see about that, i think that the part that companies are struggling with that in my conversations is not the supply issues they understand those they know those will be challenging, it is whether demand in the United States is going to be affected for their goods or services. And that is the part that is the variable they are trying to assess right now. Have you seen a sharp decline in demand so far i know it is early only isolated industries travel obviously, example travel bookings clearly i mentioned Energy Business demand for that product is lower. We think First Quarter dallas fed our view First Quarter Energy Growth he globally oil growth he gloel globally negative First Time Since Great Recession we have demand claimed globally he decline global we expect that will it persist how far beyond First Quarter will that persist. Important assessment from you Robert Kaplan good to see you. Thanks so much president of the dallas Federal Reserve tune in tonight, Robert Kaplan will join me exclusively on Maria Bartiromo wall street 9 pm eastern and all weekend join us for that, tonight, first to studio b, Varney Company, sfoou what is on deck. A big show we have larry kudlow from the white house, i am going to ask him look what will you say to calm the situation down . Larry kudlow coming up on the show. We are also going to be asking what is it like on the ground in areas of america where the coronavirus has arrived . Yesterday we were talking to Orange County people in california, they have seen slowdown in foot traffic in the malls there, and they have seen face about masks today county executive on air from Nassau County where they have 78 confirmed cases what is the situation there is what is the anxiety level right there . That is really what we are asking, of course, the market, where is the bottom and when will we see a sustained rebound lots going on, big show, by the way, maria i am going to call this market a rolling crash i am going right out there with that. Maria wow rolling crash you are calling it you . I think so i think that i think that is legitimate never seen a week like this before. For sure see you top of the hour Varney Company 9 a. M. Around we are in selloff mode in stocks major indices losses continue this morning looking at stocks most impacted by outbreak for better or for worse live Market Analysis all morning long back in two minutes time. Huh, fifteen minutes could save you fifteen percent or more on Car Insurance. Everybody knows that. Well, did you know pinocchio was a bad motivational speaker . I look around this room and i see nothing but untapped potential. You have potential. You haveoh boy. Geico. Fifteen minutes could save you fifteen percent or more on Car Insurance. 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Maria this is all on coronavirus even though off session lows from are evenings futures getting more steep drop as we head closer he do open, i will say that when it comes to wall street not to distinguish human elementary of the coronavirus what would happen wall street looks at the stock market worried about demand also worried about a note goldman sent to clients yesterday, talking about Earnings Growth that coronavirus could wipe out Earnings Growth, for the year, and that is you why traders are concerned here, there is one bright spot on the dow today that is 3m because it makes those m95 respirators ols dow stock in green ahead of open, even the vaccine makers getting a boost from virus lower you can see moderna Gilead Sciences lower as well. Apple stock continuing to move lower dragging on dow as well most likely today, and that is because of the china ask exposure apple told us coronavirus will have impact on revenues in First Quarter. Finally, United Airlines extending suspension of flights between u. S. Hubs beijing hong kong through april 30 back to you. Jackie fantastic panel Jon Hilsenrath, Dagen Mcdowell veronica what a day. Dagen the 500 from a record high, in the history so it has been a very swift downdraft theres little room to hide except treasurys. Moving parts. I hope we get through weekend without explosion of more cases if we do a lot of conversation will be different next week. Maria wooufb optimistic among more optimistic out there, thank you great to see you. Thank you so much we are still celebrating this morning black History Month on mornings with maria speaking with owner of multigeneral recreational Family Business New York Institution that is next stay with us. And gain new perspectives. Thats why we go beyond the numbers. T. Rowe price. Invest with confidence. Its surprising how the bigger a city gets. The smaller it starts to feel. Which makes it even more surprising, how big it feels in here. With sliding rear seats. And more available second row legroom than say. A chevy suburban. This is the completely reimagined 2020 ford escape. Maria welcome back. We are celebrating black History Month here. In 1962, sylvia woods founded sylvias soul food in the heart of harlem, new york city. 57 years later, not only has the restaurant become an iconic soul food institution, it has expanded into commercial goods like prepared food, beauty supplies. Joining us is sylvias restaurants Vice President of communications and sylvias granddaught granddaughter. Great to have you here. Sylvias is popular and an iconic institution. If our viewers could smell what i smell right now, this is so good. Sylvias has such a rich history. Tell us about the food you brought in as we honor the africanamerican culture. I consider sylvias as authentic soul food. Its one of the most important cultural identity markers for african americans. This is what we have been eating for many generations. I brought you everything, maria. We have down home southern fried chicken, chef marcuss shrimp and grits, thats Something Special he made for you and our catering clients love it, macaroni and cheese the way the grandkids like it, extra crispy on top with the cheese, peach cobbler. This put my grandmother on the map many, many years ago. Sylvias world famous talkedabout barbecue ribs with our sassy sauce. You have to have your veggies. Collard greens. Maria love it. This is whats going to be able to make you cook soul food at home. Our food product line is nationwide in the grocery stores. Its over 20 years old. We are the largest familyowned Southern Food product line in existence. We have everything you need. Maria chef marcus, you made all this . I made all of this. Over the last couple years, i have been trying to master all these things my grandmother taught me and slowly learning new things. This is something i grew up eating. Maria fantastic. Naturally, with what ive learned over time cooking, i brought other things into it. Maria we got to jump. Happy black History Month. Great to have you both. Thank you so much. Thank you for having us. Maria right to Varney Company we go. Stu, take it away. Stuart good morning, maria. Good morning, everyone. Im calling this a rolling crash. Okay, strong words but i think justified. The dow has lost 3,225 points this