Neil. Well, you said it when you set this up at the top. The conversation here on the floor has surpassed this notion of correction which the markets have gone straight through, but now traders are talking about bear market territory. That would be a 20 decline from alltime highs. Theyre saying they hope it doesnt happen, they hope maybe a bottom is set here today. The problem is theres just so much uncertainty, and we dont know where this whole situation is going to go. You know, the comparison has been made to the financial crisis, but there was an orderly process, right, between the government and the banks that stepped in to try to work on things. There was some uncertainty, but people were working on it. With this, were not sure how bad it can get, and thats whats spooking investors. Now, the s p 500 entering correction territory, it only took six days to get there. That is pretty staggering. The last high that we saw was on february 19th. Its been the worst trading week since that financial meltdown that i talked about, and in terms of the wipeout value, we are talking 5 trillion. Roughly 4,000 points on the dow as weve been counting. Now, the 10year treasury, look at the yields on that, that is not helping this story out. Its trading under 1. 2 . It keeps making new alltime lows, so money is going into the safe haven, treasuries, the yield is moving lower. St. Louis fed president James Bullard giving the markets a mixed message on a rate cut saying, quote, further policy rate cuts are a possibility if a Global Pandemic actually develops with Health Effects approaching the scale of ordinary influential, but this is not the baseline case at this time. Still, as we look at the fed fund future rate, the market is pricing in a cut of 100 . Finally, sitting on Global Growth and earnings in terms of a wipeout for earnings in 2020, Goldman Sachs said the same kind of thing yesterday. Look at the financials and you can see theyre lower across the board, neil. Neil jackie, thank you very much. She was telling us whats going on with Interest Rates, record lows going on right there and, again, optimism that the Federal Reserve could cut rates sooner than expected even though a number of fed officials past and present on this network and elsewhere have been talking about, you know, dont get ahead of your skis here. Whatever the case, the fed fund futures contract seemed to be calling for at least a quart point cut next quarter cut point next month, an additional quarter cut point in april. Lets get the read from Gary Kaltbaum and scott shellady. Scott, what do you think . Market getting ahead of itself . I think so, neil. You know, weve been beaten up and battered so long this week, its been a rough week, so id like to add a little levity, and i went out and found something. [laughter] neil only you, my friend. Only you. In all seriousness, you know what . Were out over our skis for one big reason. Governments are people, and people overreact. You cant even be seen to be erring on the side of caution. You have to err on the side of hisser the ca, and hysteria. Do i think we should cut rates . Is a quarter of a percent going to make sense against the virus . Finish things are going to be slowing down just because people arent moving about like they used, to however, i would rather save those bullets for a different time. Weve just got to get through this. Now, its going to be probably six weeks before we have something to help us out as far as something the treat it and then maybe a year for a vaccine or maybe even sooner. The american entrepreneur is very, very good. But i do think were acting on hysteria, and its hard to get involved in the markets when theres so much emotion right now. There isnt room for clear thinking. And when we start to see one more push, some sort of capitulation, but its hard to get involved when were acting so irrationally right now and not getting help from any of the talking heads that are going to give this thing something that to stand on. Neil people get nervous, and i think the speed with which weve seen this 10 plus correction alarms folks because corrections happen, and both of you have, you know, reminded me about that over many years, but not this fast. Does that worry you, gary . Oh, yeah. Look, if this happened over a three to six month period, itd be a normal pullback off of a massive move over the last 14 months, but since i think were down 4600 points at the low this morning in a matter of eight or nine days. Yes, that does the trick. And i can tell you phones are ringing off the hook. People are are coming up to me wherever im walking asking hows cavuto, by the way, the first thing they ask [laughter] let me just say this, the fed is being talked the about a lot. I follow them very closely. I think i have ad good feel for them. It is a 100 lock they will lower rates in march or even before and i think probably all the way down to 1 quickly because every time markets get hit, thats what they do. Im just not sure its going to help right now, and thats my big worry. Yesterday we rallied up nicely, and we finished at the lows of the day. Today in the last hour we rallied up nicely and fell back quite easily. So im still not seeing the things yet that tell me to jump all in. The one thing i am watching though right now is the semiconductor index. It is some very vital longterm area. If it can hold and start rallying, and its starting to do that today, i think the market can follow, we can get moving again. Leave no doubt, people are on their toes, people are worried. Im here in the newsroom, can and theyre all looking at me like its all my fault. Neil well, it actually is, gary. [laughter] gentlemen, thank you very much. All these Fast Breaking developments, were following it closely. Now, a lot of stocks within these market averages forget about the averages themselves with a 20 correction, a lot of them like apple, amazon already are. Keep that in humid that these are levels that were recordbreaking a little more than a week or two ago. So thats a bit of a misnomer here. Nevertheless, whats being followed closely is how the administration is handling this. Its an outside crisis, but the biggest one, certainly, for this administration. Fox news sunday host Chris Wallace joins us now. We always young president s by judge president s by how they handle these black swan developments in market lore. The early read on the president depending on who you talk to is hes on top of it, others say wait a minuting its too early to start giving him kudos whats the read in washington, chris . First of all, this is the first time ive ever been on the air after somebody called the cow guy [laughter] but in a long career, its a new step for me neil he can bring this down a peg or two for you. We started there. All right. You know, the problem and i hesitate to say this its following the same stupid partisan lines, and you would think with something this potentially big, and it is potential, you know, an awful lot of whats going on here and what seems to be going on in the markets is panic, not based on wellfounded fears. You would hope that everybody would get together, but both sides are going after each other. Youre hearing the Democratic Candidates and some of the democrats of congress go after the president. Youre hearing the president and some of the people around him going after democrats. And that doesnt give anybody confidence. And i think thats one of the concerns. We also had a very troubling story today that i think has concerned people, and that is the whistleblower from hhs who says that when the original hhs workers were sent to deal with some of the evacuees at those air force bases in california, that they didnt have the proper gear, they didnt have the proper equipment, and they then went out into the general population. So, you know, i certainly think its way too early to, you know, give the administration either high marks or low marks, but there is some cause for concern, and part of that has been the mixed messages in the administration where the president has seemed to be noticeably more optimistic and downplaying the threat than a lot of his Top Public Health officials. Neil you know, to your point on the markets too, they cant really get any clarity on this. And another development thats been rattling them is this notion that this could escalate for points unknown or for reasons unknown. You just mentioned this issue that maybe this exposed more people than we thought to the virus, you know . But im wondering what it means in this political year, you know . The economy and Everything Else, the markets are considered one of the things or a couple of things going in the president s favor. Its way, way too early to say all of a sudden these developments raise a question about that. But ive talked to many traders, chris, who really arent red or blue, theyre just green. They love making money. Theyve made a lot of money under this president , and now the possibility that this changes the equation where hes not a lock for reelection. Way too early, again, but is this a concern at the white house . Do they look at this and this steady drop, big drop day after day and say, whoa . Yeah. I mean, look, weve got to make it clear that news changes so dramatically and just like people have already forgotten about impeachment, you know, hopefully we get this under control and it does not turn out to be a proliferating threat, a pandemic, and in a month or so weve forgotten about the coronavirus. But if youre a white house that has talked so much about the economy and if youre a president who has followed and to a certain degree seen this everrising stock market as a kind of referendum, if you will, on his presidency, youve got to know that hes looking at these numbers today, and theyre making him crazy, and the numbers this week. A 3,000point drop, i mean, does it really is it really about the president . No. But, you know, if youre going to ride the market up and say thats a statement about your political wellbeing, then when it starts to go down, you cant say, no, its not my fault, its somebody elses. So, hopefully, all of this goes away long before we get to any actual votes next fall. But right now if youre in the administration, its not good. And, look, there is some real possibility, i dont have to tell you, that if this continues on and supply markets get disrupted and people dont want to fly and go to hotels and they dont want to, you know, go to restaurants, this could have a real impact on the economy, and some people are saying particularly in europe where the Economic Growth is much smaller it could tip it into recession, take a little longer for it to have that impact in this country. Neil i know ahead of South Carolina ive been closely watching, polls seem to indicate that, you know, joe biden might be regaining his footing there. I know you have on Fox News Sunday on sunday, lets say he were to perform well there, is it your sense that the race is back on . In the Democratic Party for the nomination . Does anyone get there with enough to clinch it on a first ballot, or could they complicate things . What do you think . All of the above. I will say this, that i see South Carolina as more of a mustwin for biden than any huge victory. In other words, if he loses, i think its a disaster. If he wins, it just puts him back in the race. But, you know, part of the problem is that youve got super tuesday just three days later neil right. And at this point all the other candidates have spent a lot more money and a lot more time in those 14 states with, i think, what, 1400 delegates or something that theyre going to be awarding, about a thursday of all the delegates to the convention. And even if biden wins, he doesnt have much time, he has three days, to try to use it as a springboard. Meanwhile, as i say, all the other candidates have a huge start in their organizing for those 14 states on super tuesday. So hes still going to be well behind the rest of the pack win or lose. Neil i did want to ask a followup question on that. In the past, chris, when it came to the democratic potential nominee, he or she has amassed enough delegates not to have the majority, but darn close to it. A strong, i guess, plurality, put it. But the understanding seems to be that if Bernie Sanders and his supporters think that would cinch the deal for him, its not. Do you hear that, that hes got to have the majority if outright or its not going to happen. Hes saying if i have plurality, if i have the lead, then i absolutely should get it, and youre hearing an awful lot of democrats some in the race against him, but also just some democratic officials here in washington who say the rules are the rules. You need 1,991 delegates to win the nomination. If you come in with 1600 or 1700, you dont have the majority, you dont win. And then, you know, anything can happen. And remember, they cant vote in the first ballot, but in the second ballot, all those super delegates, the state party people, the senators, all of that, they can vote. And they could begin to take it away. Now, the sanders people are going to say you cant do to us again in 2020 what you did to us in 2016. In fact, Hillary Clinton did have the majority going into the convention are then. But you can be sure that if he a had the lead and he didnt get it, the possibility for a real fracture in this party, if they can argue that theyve had it taken away again, the possibility of a fracture in the Democratic Party is very real. And thats something that the ones who dont like Bernie Sanders are going to have to contend with. How do you his supporters onboard if you give him the nomination . Neil not bad, chris. Youre no cow guy, but youre noted bad. You should do this for a living, its promising. [laughter] well, thank you. We think were going to have a top official from the administration to talk about coronavirus and the very latest on where it stands and all the political blowback as well. But thank you, ive enjoyed being on with the cow guy. Dont do that to me again. [laughter] neil all right. I want to thank Chris Wallace, i want to thank the cow guy. In the meantime, apple, we were telling you how it is technically in bear market territory, falling 20 or more from highs. Tim cook sat down with our own susan lee talking about the coronavirus and saying i guess that, look, its a passing thing, its not a longterm thing, that was the gist the demand is there. People want to buy the iphones and the apple services, but because of factories being closed, stores being shut, they cant get access. The demand is there, it will come back, and i think most economists believe the consumption will return. But weed had exclusive access with tim cook in birmingham, alabama, a homecoming of sorts for a local hero. He grew up in alabama, went to auburn, and now hes pushing tease new philanthropic Educational Initiatives at apple and basically supplying coding opportunities for the underrepresented. We had a chat with him, and we talked all things apple, stock market, coronavirus and, yes, even his relationship with President Trump. Listen. Things are going pretty much like we thought they would go there in terms of bringing things back. And so itll, it will take some time. But, by and large, i think this is a temporary condition, not a longterm kind of thing. Apple is fundamentally strong, and thats do you anticipate disruption at the last pass the Second Quarter . Well, our Second Quarters the quarter were in, just to declare with our investors, 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 has turn off of china on to korea and italy. So i think its very important to see what happens there and whether something new comes occupant of out of that. Our supply chain is relatively more important in china, but we have great businesses in korea, and we have suppliers in korea as well and suppliers in italy and a great business there as well. So we need to see as that unfolds. The stock market, obviously, is reacting, and apple [laughter] has been down yeah. In in the past few weeks. That creates value inside americas largest company. Do you think theres value that investors are missing . Well, my perspective, first of all, i dont focus on the shortterm gyrations of the market. I think for me and with the way we have run the company, we work for the long term. And i see no longterm difference between what was happening four weeks ago versus whats happening today. And so, no, the market takes time to recognize that and so forth, and itll do what its going to do. Im the last person to be able to predict it. Finish. [laughter] but i would, you know, for me, i look through that, look through the noise and concentrate on the future. And the future looks very bright. You might be able to get apple at a discount, a 15 discount. We are a buyer, right . We have a Share Repurchase plan, and so, yes. This might be an opportunity to maybe up those Share Repurchases for apple. I dont want to announce anything on the air, but Everybody Knows that were buying shares, and if the stock is lower, you buy more shares for the same amount of money. Now, youre the architect of this low inventory, fast moving supply chain that apple currently has. Do you have any, i guess, ideas to maybe bring back or move some of that supply chain outside of china more . Well, it is important to recognize that our parts are built everywhere. They are truly global products. So you have several parts that are made in the United States that serve the world. So not only for the iphone sold in the United States, but those sold around the world. And so what will happen to the supply chain as we look back on this, i wouldnt want to say at this point because the question for us always is what kind of resilience does the supply chain have. Its not was there a problem, because there will always be unpredictable things that come up. But as you know from following us, we work through earthquakes, tornadoes, fires, floods, tsunamis, sars. And so weve had a long list of things, and the Operational Team is very great at working through these. So the question for us after we get on the other side will be was the resill yenls there resill yeans there or not and do we need to make some changes. My perspective sitting here today is that if there are changes, youre talking about adjusting some knobs, not some sort of wholesale fundamental change. So you dont anticipate then moving, say, to other low cost countries like the seat unanimous or the cambodias . Some people call this an Inflection Point for chinas Manufacturing Industry especially with the disrupts, and people are uncertain because chinas not cheap anymore, lets be honest, right . Yeah. Thats the thing that people dont understand, i think, is that theres a perspective that is that that china is it hasnt been for a long time, the as both of us know. And so but for us, were not really fixated on cost only. Cost is one factor, clearly. But were also focused were fixated on quality. And were focused on time to market and the speed and the depth of engineering in the different places. And so somebody would have to meet all of those in order for us to do something. Yeah. In announcing also your first retail store in india by the year 2021. Im excited about that, because thats the engine, thats e a huge opportunity for us. For years we could not enter there unless we entered there with a partner. Into retail. And we did not want to do that, you know . We want to maintain control of our brand and so forth. But the administration worked on this with the indian government, and that change has been made. And so were, we are very, very positive about entering online this year and retail next year. Speaking of the administration, im sure you get asked this all the time, but when people see tim cook on one side, donald trump on the other, they see a lot of difference. But you have been able to engaging and Work Together engage and Work Together. How does the relationship work . Well, there are differences, theres no doubt about that. But you look for intersections, and i care a lot about creating jobs, and i think the president does as well. I care a lot about training the work force for the future, and the administration is focused on this as well. I think one of the u. S. major challenges is to solve this issue. Its that as technology speeds over and over again and jobs are disrupted and jobs are created, we have to make sure our education is preparing people for the disruption and the creation. And i think if we do that, we can, we can flourish in this environment. But if we dont, we leave a lot of people behind. And that should be unacceptable for all of us. And so these are just two of the things that where theres intersections. And i think most people would say those are nonpartisan, you know . The creation of jobs should be nonpartisan, the education should be nonpartisan. And so thats how i see it, you know . Were very focused on policy, not politics. That probably helps. I think we dont is have a pac. Were probably the most nonpolitical company out there. We dont give to political campaigns, you know, candidate campaigns and so forth. But we do focus on policy. Because we want to be a contributing citizen of the United States and to help the country every way we can. Uhhuh. Some would say you were probably one of the first, if not the first, in Silicon Valley to reach out and engage with the white house. Recently Larry Ellison of oracle held a fundraiser for President Trump, receiving a lot of backlash from his employees. Have you received any sort of criticism for trying to engage and work with the white house from your employees . Well, we have a large employee base, and people are welcome to have the views that they have. But i try to do what i do what i say and say what i do. And from my perspective, engagement is always best. Because just simply standing on the sideline and yelling doesnt accomplish anything but polarization. And so i want to suit up and play a role. And if i disagree on something, i want to try to influence it. If i agree on something, i want to try to amplify and figure out a way that i can help in some way and be a great citizen of the country. So so that is my perspective on things and the way that we try to lead the company. Tim, thank you so much. Thank you. Thank you for being here. So a neutral, sober figure as the head of americas large company. Largest company. Whats happening in china, as he said in that interview, some suppliers and factories have been reopening. In fact, they add to shut all 42 stores during the worst of the coronavirus, but now more than 30 have reopened, some with limited hours, and weve been here before. Tim cook has been ceo of apple since 2011, hes seen a lot of this neil absolutely. Ups and downs. But as you see where the stock trading, you know, above record highs or were at record highs earlier this year, hes been able to expand that value despite the fact that he did have slowing phone sales. Neil you know whats interesting about his whole lowkey approach, that it invites more people in, both sides, and avoids some of the actually knownny that, lets say, a jeff bezos is experiencing at the white house. But thats his style, isnt it . Yeah. If you ever meet tim cook, you will know that hes a welcoming figure. Hell talk to anybody neil doesnt shout. Doesnt shout, not loud, but he is very smart, and hes very intentive with his words and his voice. And as you saw with the education initiative, thats what we were trailing him for, for this giveback to the community and this Educational Initiative to empower some of the unserved parts of the communities, especially in birmingham, alabama, which is pivotal. As you know, the civil rights movement, but also 70 africanamericans, and alabama has one of the widest gaps in the jobless rate between blacks and whites. So coding for the future and empowering the work force so they can get read for an automation future as well. Neil remarkable interview, susan, but when you talk about being heavily reliability on china and that work force to make a lot of the stuff that he has, it looked like he had toyed around with spreading the wealth around in the region and didnt like those alternatives, and he liked say what you will of the rising costs of china labor its well worth it because they do a great job. Yeah. Well, the technology knowhow. People dont understand that china isnt cheap anymore, and the reason why theyre not cheap is also youve had also shall we say an increase in the value add in technology knowhow. So theyre able to build the glass that you put on the phones, theyre able to build some of the chips that go into this and put it all together as well. Neil right. But he has been spreading it more around. 50 , the number of iphones that are assembled in china, but thats been reduced. However, its still the, i would say, heavily reliant and still on the factory floors of china, right . Will that change . What sense did you get . I got the sense that maybe there might be other alternatives in the future but just not right now. Neil hes not freaking out, a very thoughtful, deliberate man and these days thats a nice especially when youre looking at markets down, what, four digits now . Neil yeah, right. Technically bear market territory. To your point, i look forward to more of this 3 p. M. Eastern time . Yep. Neil well see more. As i mentioned to you, we got a lot of access to tim cook and followed him throughout his journeys to schools and his surprise visit to an apple store in birmingham, alabama. If you want to take a look at rock star, when he walks into any of these stores, i mean, people scream, and theres just a lot of commotion neil how many ceos does that happen . Exactly. And these schools, kids who are 7, 8 years old, and they all know who tim cook is. How many ceos get that kind of recognition, 8yearolds asking for selfies in birmingham, alabama, or anywhere, right . Neil it is similar, the late, great lee iacocca, he was surprised when people would ask him for an autograph. And i remember one kid telling him, i see you on tv all the time. [laughter] that was enough. Right. Neil great, great job. I cant wait to see the rest here. You know, the fact of the matter is that what susan got a chance to see and witness up close is the guy whos trying to be the calm in the middle of the storm. Gary kaltbaum, i would imagine thats good advice for everybody for the time being, but theres not a lot of calm in this storm. How do you advise people . First off, let me say every apple shareholder watching that interview should say to themselves, damn, i like this guy while everything is southwesterlying around and everybodys swirling around and everybodys very worried neil hes not freaking out, youre exactly right. At all, and hes focused on his business, and hes focused on what hes doing. He knows where the game is at, and me he knows what the future holds for him. Of course he doesnt know what the virus is going to do. Look, you know, ive been in every crash in the markets, ive been in every meltup, ive been in 1999, the one thing i do know is weve always got past this. But while its going on, it is just no fun. It is at this point in time every investor just needs to take a step back. I call it the sleep indicator. If you cant sleep, you probably own too much stock. But when we get past this, our American Companies are doing better than ever with technological advances, medical advances. We will get through this, it just may take a decent amount more time. But i must tell ya, personally listening to somebody like tim cook, i can see why theres a premium on the price in apples stock at this juncture and why people really like this guy so much. Is and he had a tough act to follow, let me say, in steve jobs. Neil im just wondering about that, gary, Technology Stocks have gotten disproportionally hit through all in the, probably no more so than apple. Amazon, facebook, were going to talk about that particular subject in just a second. But this notion that those that ran up the most are going to get killed the most, how long do you see that continuing . It can go on for a while. Just remember, you know, stocks go through cycles. And when you go into a big bull market, the stock usually ends up getting overowned, overloved and very overleveraged which means a lot of these funds get margined on a lot of these names, and they just go too far too fast. My best example, microsoft. Its like a little eiffel tower the move recently from megacap name. Im not so sure thats supposed to happen. So the comeuppance is here right now, it is pretty much normal. And, by the way, apple is still up 70 some odd percent in the last 1215 months, so its still way ahead of the game. To mentioner overall this is normal to me, overall this is normal. If this happened over 34 month period, be hess of a biggie, but since its happened so suddenly, more of a biggie. Neil that is a very good point. We forget we talk about a bear market drop in some of these stocks, 20 or more, you know, these are off high levels a little more than a week or two ago, so some perspective is in order here. You go up 100 and drop 25 , youre still up 75 . And may i say i think when apple first came out with the pod, it was trading like at a dollar, so i think its had a pretty good run and deserves every now and then to go through some turmoil. And as i always say and i dont say this sarcastically stocks do go down every now and then. Its not the end of the world. And if the stocks going to go higher, youve got to work off some of the froth, some of the bullishness, youve got to take the smile off the bulls face, and then you can get going again once all thats said and done. Neil were certain arely testing that. Gary, thank you very much. Meanwhile, hearing that facebook is canceling its Developers Conference because of the coronavirus and could be the cause of longer term pain. I want to introduce you to author of a great book, the inside story, talks about zuckerberg, sheryl sandberg, steve is his name. Good to see you. Great to be here, thanks. Neil its the difficult to do getting inside the head of zuckerberg who gave you Carte Blanche exposure. Im curious, how did you get that . How did you gain their trust . Well, it took months really, but i had done a previous book about google where id gotten access, and they thought it was fair. Tough in some parts, and neil actually, you were very fair. I had known mark and sheryl for a long time, covered mark since he was almost a baby. When he started the company, he was almost a baby. Neil right. And you actually covered him back in the days when he wasnt much more than a baby yeah, yeah. Neil early on he was marked as a genius, budget he . Yeah. When i say baby, i mean, he was 19 years old when he founded the company, and i met him in 2006. It had just been going on. And i watched him mature as a ceo but also with this access, i was able to get behind the scenes of facebooks current times and also early times and learn behind the scenes what had happened early in facebooks, you know, history that led me to understand why things were happening now that werent so good. Neil but you also got a couple of things right, because i wondered a few times, i want to point out, what i like about your book is just getting inside him and that they all that stare he gives you. You wrote again and again of this 2006 meeting, he just stared at me, said nothing. Time seemed to freeze. I was flummoxed, is he having some sort of episode on the spectrum that some would later speculate, was there something i had written that somehow made him hate me . It was nothing you had done, that was just him. He would do that sometimes which really unnerved people. Neil i would just say, wow. Yeah, yeah. I started different taxes to get him to talk, he talked a little. But what i in the book find out, right at that same time period he was writing his thoughts in a journal and redesigning facebook changing it to a College Network to something that everyone in the world could use, that was his plan, to make everyone in the world on facebook and facebook to have information on everyone in the world. Neil you know, as brilliant as he is and, cheerily, you relay that clearly, you relay that, comes through time and time again, but one thing that i get, and this is my view of your great booker but super high iq. Maybe not so much eq. And the fact that he would just seem impervious. You write later on in the book that the when he introduced himself hed say, hi, im mark, but its uppityness jauntiness that made people wonder if he leaving in a bubblf denial. Even in comments on his own facebook post, he seemed impervious. And i noticed that too when he would speak before congress, are you aware of this circle of fire around you . Yeah. Neil just dismisses it. I have to say its almost a little disturbing. Because i was researching this book during the time of facebooks biggest crisis. Neil yeah. I remember one interview in particular we were walking on the roof of facebooks big building, which is actually quite a hike because they have it all landscaped. And he was getting a lot of flak, you know, with reason for the things that facebook had done. And i said, mark, how are you holding up, how do you view. This . To him, he saw it as an engineer would view it. And i think thats a window into his personality. Neil but does that mean youre disconnected from politics, from users who say what the heck are you doing . Does he connect that anger thats still palpable out there . Thats a great point, because i think some of the shortcomings facebook still has could be tied by his insistence on tackling these problems with the engineering mindset instead of em p bracing them the whole thing, this is why people are so upset at you, mark. Neil yeah. You know, obviously, the company has come out responding to your book. Theyve been very careful. Theyve not challenged you on any of it. They acknowledge the challenges that you addressed that they face, but they obviously were wincing a little bit. Sheryl sandberg did not like the way she came off in the book. She said in terms of working with me, you know, i have worked for a long time. Ive hired and managed tens of thousands of people, and that means ive fired a good amount of people, and ill be the first to say im a tough boss, but i think im a fair boss. What do you think . Well, when she says im a tough boss, i talk about how that is. Neil right. She sounds ruthless. Well, there is two sides of sheryl. She is a person who can embrace particularly the women in the workplace, take them out to breakfast neil right. And tell them, you know, give them career add vice. But on the other hand, shes super concerned about the image of facebook and her own personal image. They hired a Company Called tsd run by one of her former friends in the treasury, and each though facebook has hundreds of p. R. People, they pay this Company Someone told me 30,000 a month mainly to do sheryls communications. Neil all right. A lot of other interesting things, its a big book. One of the things i was curious to ask you, and you dont really get too much into it, but his awareness of his wealth. His obligations to society and the good he wants to do, he and his wife. Do you think on a week like this with the craziness of the markets and his own value has gone down i think by one estimate 910 billion yeah. Neil do you think he tracks that . I think hes certainly aware of it, and but i dont think mark is motivated by money. I actually got into his early history, i talked to his parents, and i think he does admire people who are very powerful. His role models, Augustus Caesar of all people. And he loved playing risks, taking over the world. Essentially, thats what hes done with facebook. Neil but he was doing it in nursery school, your one story. I was just finger painting. Yeah, its amazing. Looking at these sew owes, how their possessor ceos, how their personality expresses itself at a young age. Neil right. But the Political Part that gets so much criticism, im not quite sure where he is. I know that he was trying to dismiss a lot of fear over whether facebook was trying to tip an election, one side or the other, but i never got inside his head. Did you . I think i got somewhat an understanding there. I mean, he has a lot of liberal tendencies, but hes certainly going the talk to anyone whos going to help facebook. The last time he went to testify before congress about this cryptocurrency plan hes using, libra, he met with donald trump. His fellow board member, peter thiel, got him in there. He kept that quiet. Usually, he posts these things on his facebook account, and i think when he got to congress he tonight want people, especially democrats, to say what were you talking about with trump last night. But he would not promise the people in congress that he would get their approval for the libra plan. He said ill go through normal channels which means the administration, the guy he met with the night before. Neil yeah. His most vociferous opponents have been democrats though, and im wondering if that has changed his posture or his view of the world or his view of his critics or he just doesnt this guy who seems to brood, stay silent, the guy that you talk about, does he just, you know, hold back even all the more . Well, i think hes learned he doesnt want to advertise who hes voting for. Interestingly, yeah, i noticed you know, in realtime it seems significant now, when he went on his little United States trip in 2007, facebook was kind of burning, and he went on this trip trying to visit every state. Neil right. He visited south bend, indiana, and rode around with the mayor at that time, coffee shops and the guy maybe hes a buttigieg guy. Neil finally, your thought on how he survives all of the sharks circling. I mean, say what you will of him, or hes been very savvy dealing with the stock prior to whats gone on this week, its gone up, up, up. Maybe now for other factors it goes down, down, down, but whats in the store for him . Well, two words i never heard at facebook through all the time i spent there are succession plan. The guy owns most of the stock, the voting stock. He controls it. The board of directors cant throw him out even if they wanted to. Hes picked people who arent going to throw him out. So marks going to be there quite a while, and he does like to think long term. In these developer conferences that he has he wont do it this year because they canceled it he often talks about his plans for ten years out. Now, i read about how facebook had a neardeath experience in 2012 when it had slowed to adjust to mobile technology. And that a really imprinted on mark. So in a sense, hes always looking at whats happening five years, ten years so facebook wont be in that position again. And thats why they brought oculus, the Virtual Reality company neil right. And right now, very quietly, they have a lab in seattle thats trying to do the enabling technologies so were all going to be Walking Around in Virtual Reality in a number of years, and facebook, if mark has his way, will own it. Neil real quickly, you kind of touched on it, i got a sense you didnt say this, i took the lead from your book that he feels hes almost on, i dont want to call it a mission from god, but that hes on a mission from god. He is in this unique historic position and role that is bigger than most people appreciate. What do you think . I think thats true. I think when he founded facebook in 2004, first created he wouldnt even say he founded anything, hes made a prompt. And he wasnt a project. He wasnt thinking in those big terms neil in the beginning, it was a way to hook up with girls. Thats a myth. He had a girlfriend. [laughter] neil he wanted to leverage thatment. An entertaining movie, but in that aspect, no. A couple years later, around 2006 when he learned what opens the world, thats when he started thinking about connecting the world. He thought if i connect the world, everybodys going to like each other more. And that didnt quite happen the way he planned. Neil hed been at harvard, he had an early inclination to invade peoples privacy. Well n that journal that i covered, you know, he destroyed someone let me see a part of it, he was talking about a new product plan, and he said how do we make it seem secure even if its not . And i found that ominous. Neil it was brilliant. The exposure you had to anyone and everyone, i highly recommend this for anyone whos into this stuff. Im a geek. Ooh im not on a mission from god here, but im a geek. Steve levy, the author. It is probably the best read about a hightech big wig that is changing history that ive read in a long, long, long time, so i hartely and highly heartily and highly recommend it. Bring some popcorn because theres some funny stories. Some that i cant repeat, but ill leave that up to you. [laughter] steve, thank you. Thank you. Neil in the meantime, what i can repeat right now is weve got a selloff right now. Whether its some the rich billionaires are focused on it or not, the fact of the matter is their paper wealth is declining a little bit today. If you own energy and energyrelated stocks, youre feeling the pinch too. Thats because oil prices are quickly collapsing, and then weve got the possibility of a rate cut thats been denied by a number of fed officials, but again, those betting on a rate cut seem to be almost 100 in the camp that it will happen. As soon as next month. Jeff flock is at the cme with a lot more. Hey, jeff. Reporter where they trade fed funds futures. That is to say, they predict what the fed will do. Got todd coleman here who trades treasuries. Youve had a wild ride, havent you . Its been a busy week. Yeah, with yields at alltime lows reporter again today. Yeah. 1. 67 in the 30year, thats close the where we issued 10year notes from the treasury. Its been one of those weeks. People are calling it a black swan event reporter you say you agree. Yeah, oh, yeah, for sure. You really have fear in the market that you havent felt in a long time despite market fluctuations that weve seen from growth issues, trade scares reporter you said you havent seen this kind of fear since 9 11. Really since lee match. Could have got to go been lehman. Youve got to go back to 2009. Thats really the time you felt this. And equities are telling you the shortterm story, but i think the bond markets giving the Bigger Picture here, and when will they go back up . Reporter fed fund futures, theyre pricing in 100 president chance of a 100 chance of a cut in march. Now im looking at the april numbers, 100 in april as well as maybe a half point or a threequarter percent. Yeah, and yearend numbers, theyre looking for 100 basis cuts. Theres a lot of time between now and the end of the year, but the fed has said they want to wait. Reporter this is where they trend the bonds over here. This is Interest Rate futures in europe, if mike spins around just to show you, thats probably the most active yeah. Euro dollar pits the most active. Reporter traded off Interest Rate futures in europe. Lastly, i give you oil, neil. Were off the lows. Weaver 44. 74. We got below 44 last trade. Last question, is the bottom in here anywhere . I think heading into the weekend we may have seen the bottom, but over the weekend theres going to be a lot of headline risk out there. And when markets open monday, itll be interesting. Reporter todd coleman, always appreciate it. Somebody who understands Treasury Bonds which i often do not, but appreciate that. Neil . Neil i understood him. Thank you very much, my friend. In the meantime, were getting reports right now, and christina pats neverless reporting that amazon is going to be withdrawing from the games developerses conference, facebook is doing the same for its conference in may. You might have heard that. A lot of technology companies, a lot of companies period are not only putting it off or canceling outright. This on the heels of a report that tokyo, that if we dont get some sense of closure by april, the fact of the matter is the olympics themselves could be postponed. Meanwhile, the cdc requiring a lot of hospitals to run drills should patients show up with the coronavirus. Edward lawrence has been looking into that. Hey, edward. Reporter hey, neil. Yeah, Fairfax Hospital here in fairfax, virginia, has been ramping up, gearing up, stockpiling those protective gear. Talking about the masks, the robes, the gloves there just in case. Now, there are no cases of coronavirus here in virginia. However, just in case the head of Infectious Disease is having face to face meetings with all the Department Heads twice a week starting on monday so everyone in the hospital knows what to look for for early detection. The earlier we can isolate a patient, the less exposure there is. The point of contact with a potentiallyinfected patient could be outside the hospital. If the Health Department alerts them to someone coming in. We would not recommend that they come directly to the e. R. , but probably have a way that we would potentially meet them outside of the e. R. And then immediately bring them to a room to try to avoid any type of spread of a virus. Reporter anyone coming into the hospital who could be infected would end up in isolation. We we have rooms which have something called negative air pressure where the, we would protect the patients from everybody else in the facility. It has the type of air flow that circulates in the room so that the air doesnt go back into the system in the hospital. Its diverts away so as to not create that infection to be spread in the hospital. Reporter workers dealing with a person who possibly has coronavirus will first put on a specialized n95 mask. All the employees being prefitted now just in case for maximum protection. The hospital also mandating a robe as well as gloves. Both meant to keep particles off the workers body. Finally, protective glasses. And doctors here saying that those masks you buy in the store probably wont protect you from the coronavirus because theyre not airtight. Doctors also saying if you fit the criteria traveled abroad and possibly feel ill call your doctor or call the hospital before just showing up here to avoid infecting other people. Back to you. Neil edward lawrence, thank you very much, my friend. In the meantime, were hearing from the cdc that the risk to americans from the coronavirus still remains very low. Dr. Mike joins us right now, boardcertified Family Medicine doctor, an evercalming presence on this network and fox news over the course of the spreading, the rapid just growth of this virus. Doctor, very good to have you. Thank you so much for having me. Neil i caught earlier talking about the fact weve got to put this in perspective. You werent trying to minimize it, whats the proper way we as americans are now worried about us hitting it here, should address this . I think a really simple way is we should be alert, not anxious. Because theres so much unknown about this virus, there began to develop two camps; people who are completely unafraid of this virus and saying its no big deal, its just like the common cold, theyre incorrect. And then theres those who are fear mongering, trying to scare the general population into panicking, buying things they dont need, going for services that arent going to prove survival benefits for them. We need to take the information that we know, put it out into the public and then also explain what the unknowns are and how were working to figure those out through the cdc can, through the who. For example, a lot of talk about vaccine being developed, right . Neil takes a while. Normally it takes anywhere from 48 years to get a vaccine. Here the who has announced by mid next year its possible we have a vaccine. Thats huge. Thats the fastest weve ever come up with a vaccine. So its great that were having that kind of progress. Now on the other front, medications. Theres80 trials currently ongoing for antiviral medications, antiretroviral medications, plasma treatments from patients who survive the coronavirus. Were figuring out what we can do to help patients mitigate risk, either not get this illness or if they get it, how can we decrease complication rates. Neil and theyre buying things they dont need. And i look at all these face mapsings, and i have a good friend of mine whos an actor, as a matter of fact, and he was talking about ive got to get a face mask. Im thinking, wow, if youre a doctor and you want to get a face mask, do we need to do that . I think the cdc has made the point very clear, for the general public you do not need to wear those inexpensive surgical masks. Theyre not going to give you full protection. And, actually, a doctor from nyu came out and said it really well, it seems like people are buying them as safety blankets, it makes them feel better neil but they freak me out. On a jet youre seeing someones wearing one they must be sick, right . Neil right, right. When a patient comes in with an infectious process whether its the flu, a cold, the coronavirus, we ask them to wear that mask because the primary spread of inflew influenza is respiratory droplets. By you wearing the mask, it doesnt really do anything. Especially because in putting the mask on, so many times i see patients actually touch their face, and guess where all the germs are . On your fingers. Neil although i do like to freak out my kids can. [laughter] lets say you do test positive for the virus, doctor. Spell out what comes next. Where we know about the death rates, theyre very, very low, and i understand that. But your odds of getting that far are still extremely small, right . Yeah, again, the who put out a very high warning right now, but this is an International Warning because this virus is spreading in several countries. In the United States the cdc has made clear the risk still low. That can change. This virus as its erupted in italy, korea and iran, it can erupt very quickly. First and foremost, what are the shocks . Shortness of breath, fever and cough. Those seem to be the most common symptoms that patients are experiencing. If youre having any of those and youve been in contact with someone whos traveled to one of those countries, its really important to contact your Health Care Provider first. For example, in my office we have a procedure where if a patients coming in with an infectious process, we have an isolation entrance for them so they can go into the isolation room without making contact with any other patients, especially those who may be elderly, very young. We dont want to put other patients at risk. Neil is there a difference we want to quarantine these people, isolate, could you help me with that . Yes. Im really glad you asked that question. Quarantine can be done for someone who may not be sick yet. It may be for someone who had exposure but were not sure if theyre going to become sick. Isolation is for someone whos already sick, and we can limit the spread of that virus. The flu, theres bacteria that we do isolation procedures on, tuberculosis we do isolation procedures on. So its not just coronavirus. Patients need to know hospitals are very trained in personal protective equipment, were trained in these isolation procedures. Currently, were going through all rounds of training, reminding ourselves how to don this personal protective equipment, how to talk to patients, what questions we should ask. Look, its flu season, after all. Im having patients just yesterday come in with shortness of breath, with a cough, with a fever, but im not testing all of them for coronavirus because they neil do you get any sense from the people youve talked to that they cant be cavalier about it, but that theyve just got to be aware of their surroundings, right . They need to be aware of their surroundings and take personal responsibility. Its very rare that we have control over something this massive but we do. First and foremost, if you are sick, whether its coronavirus, flu, cold, you have to stay home. I know its difficult, especially in tough financial times, but you have to stay home because its for the greater good. The second is, wash your hands. Its very easy to just say oh, no big deal, ill go without it, ill be fine. Wash your hands. If you are going to be sneezing, coughing, do it into a tissue that you can dispose of. Neil a lot of people are afraid to stay home, its a competitive world. Very understandable but we have to think about the consequences if you happen to be the person that gets coronavirus, then starts spreading it throughout the community. Especially a virus like this, where we have seen possible instances of what we call asymptomatic spread which is when someone is yet to have symptoms but still has the potential to spread the virus. Think about how problematic that can be. Neil doctor, good words, all. You calmed us down. We are still freaking out. Gary kaltbaum here looking at all of this. You know, the doctor raises a number of solid points here but again, i know how wall street works. They sell, ask questions later because they just dont know what happens next. It spreads to again, i think we are up to 45 countries right now. Italy, another 100 cases confirmed. Weve got 100 deaths just there. Im wondering how the street digests this. I have to say minute by minute, neil. Yesterday, there were so many different rumors that came out, the market tried rallying, then there was something that came out of california that wasnt true and the market sank again. I can promise you if we hear about something on a subway in new york city, potentially all heck breaks loose. The best news i can give you new, we have dropped 4600 points on the dow from the high and im finally noticing a fight being put up by the big institutional crowd here and im also noticing the one group that i watch first and foremost because its in everything, the semiconductors put up a fight, so i wouldnt be surprised if we finally get a good rally in here. Again, though, dont blink because the news is fluid and you never know whats going to come out in the next 30 minutes. Neil what if the Federal Reserve doesnt cut rates, as a lot of fed funds futures buyers seem to be betting . Is that going to be deemed a disappointment . Do we need a rate cut . Obviously they are hoping for one. Let me just say, the market is expecting one and the market has been expecting one every time the market gets in trouble. If they dont, im not so sure thats a great thing. Look, at this point in time, they are already so low, i dont know if they can really move the needle except change, you know, the thought process and maybe just change how the markets trading. I dont know if they can do anything about Economic Growth at this juncture. I do believe, just coming from my opinion, 100 that by the fed meeting they will lower rates and i think theres a chance they will take it under the tenyear which would be 1 , and if things get worse from here, and theres more bad news, i suspect they may do something intrameeting even though i think thats the last thing they want to do. Neil gary, thank you very, very much. Meantime, for those of you just joining us, we are still down on the dow, down about 433 points, about 24 of the 30 components are down. Interestingly enough, those that are bouncing include apple here, that maybe when it hit bear market territory, it has since picked up a little bit. United health group, again, one of the beneficiaries of a possible, possible vaccine or treatment for even the symptoms around the coronavirus. We should say a lot of money has been finding its way into bonds, treasury notes. Those are at record lows right now which mean very very low rates for mortgages. We could be looking at a 3. 25 handle on a 30year mortgage. Some aggressive lenders are doing just that. We have seen a collapse in Energy Prices which could translate to 2 gasoline at the rate we are going. Some signs there is not quite the dovetail effect of collapsing oil prices and lower gas prices. It always seems to happen when they go up, the effect is immediate. Be that as it may, thats kind of where the money is parsing out. Deirdre bolton following all of this with the givers and takers. Deirdre we have been talking about this as the worst singular week since 2008 and of course, we are seeing these effects on all of these products you just went through, whether its stocks or bonds or energy. But there are also so many corporate decisions that are being made and companies that are canceling their biggest events out of the year, just out of an abundance of caution. That was the language facebook used when it nixed its Global Marketing summit. This is the biggest see and be seen event of the year for them. They are not alone. They say basically the priority is the health and safety of their teams. Microsoft, amazon, sony, epic games, we know epic games because they make fortnite, all pulled out of a gamers conference scheduled for march. Tech Cloud Company did the same, not hosting a sales conference next week. Basically 3,000 more people should have gone to that. All these hotels, restaurants, local businesses will miss out. It affects certainly Silicon Valley but lots of other cities as well. Cyberconference also slated for next week, Companies Pulling participation. Verizon, at t, ibm. They say we are no longer going to send our teams. The Tech Community is not the only one affected, as i just alluded to. Geneva motor show was set to host thousands of journalists beginning on march 2nd. Switzerland, though, has made a decision banning gatherings of more than 1,000 people. It has 15 confirmed cases of coronavirus and as we know, switzerland obviously bordering on northern italy which has seen the most cases in europe. New York Auto Show for the moment is still on. Thats later this year in april. Sports, tons of events have been changed. There are soccer games being played in europe right now but privately, if you like. No spectators are allowed. You can watch the games on tv. No spectators in the stadiums. Cyclings governing body, uci, says the final two stages of the uae, united arab emirates, tour were canceled because of two suspected cases of coronavirus. Organizers saying two italian Staff Members had tested positive but if you can imagine this, basically you do all the legs of these races and essentially, they awarded britains adam yates, they just declared him the winner. It seemed safer. In greece, annual carnival festivities going. I could go on and on. Needless to say, this coronavirus is affecting our markets for sure but affecting so many businesses, we will feel these effects for months to come. Back to you. Neil thank you very, very much. As she was wrapping up, proof of what she was just reporting, amazon has just asked all its employees to defer nonessential travel right now, including in the u. S. Thats coming from a spokeswoman at the company. Meanwhile, california is bracing for this virus. Nearly 8400 people being monitored, just monitored, for the virus, arriving on commercial flights from asia. Robert gray is at lax with the very latest. Robert . Reporter thanks so much. Thats right. The lax officials telling us that the cdc has set up shop here at lax and they are Screening International arrivals from many of those flights. We reached out to the cdc for more information on the operation here. We have not heard back from them yet. We will keep you updated on that as we continue to hear it. We have heard from mayor garcetti today. He says they are sanitizing hourly here at the airport. The spokesman here telling us that includes bathrooms, high traffic areas, every hour, putting out more hand sanitizer. We are seeing that in lots of places. Lots of folks coming in catching international flights. We are at the International Terminal and some of the airlines here, many domestic carriers have canceled flights to china, many of them, but behind me, korean air are still flying to china, eastern Chinese Airlines is flying a little bit later today to shanghai, several others are on the board as well. So that traffic does continue with some of the International Airline carriers. The state currently has about 28 confirmed cases, 24 of them were evacuated from the diamond princess cruise or flights from wuhan, but media reports are indicating that the woman who is the first patient to contract the coronavirus without traveling or coming into known contact with someone who has it is in serious condition. We are continuing to follow that and of course, officials trying to track her moves to see who she has come into contact. As of right now, its hard to say its business as usual, but there are still a lot of folks coming in through the door and hopping on international flights. Back to you. Neil robert, thank you very much. Robert gray. Do governments worldwide risk causing unnecessary panic . To former health and Human Services secretary under President Trump, tom price. Secretary, thank you for taking the time. Thanks, neil. Good to be with you again. Neil i know in your prior capacity, thats something you try to watch for and maybe watch out for. You dont want to alarm people. But you dont want them to just slough it off either. Do you think we in this country are finding the right balance . I think we have. I think the evidence is in the fact that there are only 60 individuals in this nation that have the disease right now. To put that into perspective, the flu infected about 20 million individuals this year, the annual flu, and 16,000 of those individuals died. So we are at a point where we know how to handle Infectious Diseases. I think the administrations aggressive activity early, the isolations and quarantines, have been incredibly helpful and Public Health officials around this nation know what to do with Infectious Diseases. I think that we may not be winning yet but we are holding all of this at bay in the United States. Neil you know, secretary, one thing i noticed, i dont think its deliberate on anyones part, but its confusing a lot of folks, it happens and i dont think again, its part of a strategy, a kabal to torpedo the whole thing, but you get some organizations saying its going to be a pandemic, just a matter of time, others say not so fast, still others saying americans should be very vigilant, others telling us to calm down. Its confusing folks. I think part of that is because we dont have a central person presumably its the Vice President now, who maybe each and every day should be updating us on the very latest, akin to governors addressing a hurricane. Remember what we are dealing with. This is the coronavirus, yes, but a new and different coronavirus. So its different. But its not so different because coronaviruses cause the common cold, they cause the mers and sars epidemic over the last 20 users. Its understandable we have uncertainty out there. Thats why we think we are getting mixed messages. Neil we are. Some say its going to be a pandemic and a force to reckon with. Others say not so much. Where are you on that . The fact is we dont know. What we are doing now is containing it in a way. Theres an isolation that is occurring with this disease right now and thats one of the keys to controlling Infectious Disease and then you want to make certain you are treating the individuals that have the disease in a way that allows them to get through that, detecting it in a way that makes it so we are keeping individuals that have the disease isolated from others, then making certain that we can prevent tonight tit future. Thats where the vaccine comes in place. We are doing the things we have done for 100 years that allow us as a nation to increase our Life Expectancy by decades literally. Public health knows how to deal with Infectious Diseases. Thats what were doing. Neil democrats are criticizing the president for the money hes been looking for to address this. Im just curious what you think. Did he lowball it . Should he have requested, do you think its going to be necessary to request more money . I think more money is likely necessary and the right answer to that is we will spend the amount of money in this nation that it takes to get through this. We will get through this. It looks like china has actually stabilized. The number of incidents of disease has decreased. The number of individuals dying from the disease in china has decreased over the past week or so. So they have been dealing with this for about two months. So it looks like thats kind of the timeline we are looking at. We will get through this and get through it in a positive way and we will solve the challenge that we have, but we need to make certain we remain vigilant and the government will spend the amount of money that it takes to keep the American People safe. Neil secretary, thank you very, very much. To the secretarys point, the number of new cases in china for the second day in a row has actually fallen below the number of new cases outside of china. A lot of people find that a constructive development. Other people freak out and say well, the number of new cases outside of chinas worrisome in and of itself. It is what it is. Obviously the markets taking a close look at this as well. Tech stocks particularly battered on the week. We do notice a slight turnaround going on at apple which had fallen down about 22 from highs. Could have been susan lis interview with tim cook. I have no doubt that played a part. Kristina partsinevelos live at the nasdaq with more on the tech fallout from all this. Kristina to your point, i had a trader actually just email me some headlines from that interview so they are definitely paying attention to that apple interview from our own susan li. Thats good news there. Talking about riskaverse investors, how they are selling off major tech stocks, some still considering it high growth so thats adding to the volatility. Take a look at facebook. Facebook doesnt have as much exposure to china, given that a lot of their services are blocked, but Chinese Companies do buy facebook ads to target international consumers, so that could be an issue. Facebook also has r d facilities within the region but overall, facebook has announced they have canceled the developer conference which is a big deal to go ahead with that because that conference is in may. Facebook also said they have to deal with a lot of fake and misleading ads about the coronavirus on their platform and its not just facebook. Amazon as well. Amazon has to deal with a lot of misleading products. We know they ask suppliers not to increase the prices of masks and other safety and cleaning products. Amazon, too, according to tech crunch, they too will be pulling out of a separate conference, a game developer conference. I asked for confirmation and am still waiting to hear back from them. Netflix, lets focus on netflix, is seen as somewhat of a bright spot for some analysts. More particularly, bmo capital markets. They put out a note this morning saying netflix is the obvious beneficiary if consumers stay home, and this has been reflected in considerable stock price outperformance this week. I would like to bring up, we saw the tech sector as a whole get hit but two other ones, pinterest which they have been doing quite well with their monthly active users, 335 million and then dropbox, as more people move to Cloud Computing companies. They are still, though, trading below their ipo price of 21. I will end on the nasdaq because thats where i am right now. Its been a roller coaster here. It did briefly touch in positive territory but it did also fall below its 200 day moving day average which is 8,391. If you had to stay home, what would be your netflix show of choice . Neil i would just be eating so i wouldnt be necessarily running to the tv. Kristina oh, okay. Neil i would be watching your updates, that kind of thing. Depends on the day. Kristina okay. Okay. I thought you had a favorite show. Neil no, no, no. Kristina sorry. I sprung it on you. Neil no. Just turn the tv off. Kristina even on the weekends . Okay. Neil you actually caught me on that. Well talk later. Meanwhile, apple ceo tim co cook, very unusual, exclusive interview with fox businesss susan li and talking about this market downturn, specifically the reaction in his own stock. Take a look. First of all, i dont really focus on the short term gyrations of the market. I think for me, the way we run the company, we work for the long term. I see no long term difference between what was happening four weeks ago versus whats happening today. Neil we have Constellation Research ceo ray huang on this. I have never known a ceo to acknowledge he or she is focused on whats happening to his or her stock in the short term but im sure they keep track of the billions on paper they could be losing. Maybe they do see the big picture. What about you . Apple is always focused on the long game and i think the important area was really thinking about what happens with supply chain and really, whats happening to china demand. Those are the numbers im looking at. Im trying to understand is that going to impact china sales of an s, phone, will it impact the watch on the demand side. Neil got to, right . Its got to. Im not saying that as a bad thing. If they did not change that supply chain reliance specifically on china, its inevitable that it will. I think it will, too. Because it hasnt all moved yet to vietnam and india. We dont have a u. S. Plant yet thats ready to light up. But interesting thing is, you see the china ramping up production. They are paying bonuses to get people into factories to start production. Not sure exactly whats happening but back to your earlier point, i have a masters in Public Health from Johns Hopkins. Whats weird is the data. We are getting bad data and making decisions on bad data. Thats driving me nuts. I dont know what the denominator is on any of this data. Neil one of the things i remember even covering the economic numbers when they said they were going at a 10 or 11 clip, it always seemed a little unrealistic. My concern now is are we pouncing on news we are getting out of china that might be a little suspect and are we basing our fear level or lack thereof, you know, mistakenly . We may be. What we know is five Million People left wuhan in the critical period. We dont know how many people left with transmission. And we know we have a 14day, 12 to 14 day incubation period. So if you look at it, 50,000, the next jump should have been 120,000, then if theres more transition it would be like half a million in terms of the way exposure works. Thats why i think the data is off and we are working with really bad data. To say things are capping off in china but its getting worse outside the u. S. , thats probably true but the numbers, i dont know what the factor is. Thats what makes me worry. Is this going to be over by april or over by may or are we going to have this going on until june. I think thats what the uncertainty is. Neil that is hardly heartening news when you hear the number of new cases in china for the second day in a row is south of the number of new cases outside of china. That immediately tells me now its a bigger problem for the world, right . It is. We do see a lot of conferences, i go to about 180 tech conferences a year and you are going to start seeing some cancellations. For example, three im speaking in singapore, two have been canceled. We are starting to see cancellations. The ones in the u. S. , we havent seen as much of an impact. Neil interesting that amazon puts a travel advisory for its workers, putting a limit on travel, even if you are traveling within the United States. Which is the first time i have seen Something Like that. We have seen various travel bans on one firm which i wont name, like they cant go to conferences that have more than 100 people. They can go to events that are less than 100. Others are specific countries, no go to italy or germany, to apac, we are seeing various types events. Very important to contain the virus, but we cant do that if we have bad data. I think what people are trying to get to is trying to understand the transmission, if the virus is natural or genetically modified. Lot of conversations about this. Neil i knew you were a smart guy but the whole Johns Hopkins thing, that just blew me away. I will be much more deferential in the future, okay . Seriously, thank you for calming us down, putting it in perspective saying theres a lot we dont know so acknowledge what you dont know. The problem with the world looking at this is no one is acknowledging what they dont know. They are just proceeding ahead, the gospel truth being the few facts we do. Hedge funds have been busy selling today, preparing for still more volatility ahead. Are they overdoing it . Charlie gasparino here, ubs Financial Adviser richard leon. Good to see you. Richard, on that, hedge funds always have this reputation for, you know, exacerbating things. Do they risk exacerbating this . You know, i dont really think this is going to have a longterm impact on the u. S. Economy. Whats going on here is that markets dont like uncertainty. Theres a lot of uncertainty surrounding this virus right now. Neil you just pointed to more. Whether or not this extends into april, may or june, we think its very unlikely this will send the u. S. Economy into recession. Neil what if it does extend into the socalled warmer months where the president was quoting a lot of medical types who are saying that kills off Something Like this. What if it doesnt . Even if this moves into the Second Quarter, we still think its unlikely this drives the u. S. Economy into recession. We have to keep in mind that the economic backdrop here, the fundamentals of the u. S. Economy are very healthy. We have a strong u. S. Consumer, banks are very strong. We are really not seeing neil they were fundamentally good before the crash. Tier one ratios are at record highs right now. We have a supportive fed, a supportive labor market. Fundamentals of our economy are healthy. Neil you know whats weird, charlie, you are a good student of market history, we get corrections. They happen. Thats part of the beat. Its the speed with which all of this is happening that complicates things. Remember, we are in new times right now, where algorithms and computerized trading and markets, information is presented momentarily. When i was at cnbc breaking stories about the financial crisis neil they were using the abacus. Almost. The lower third would move the markets. Now its so fast, its twittera. Heres why it is justified in a weird way. Im not saying, listen, im not saying sell all your stocks, we are going into recession. Far from it. Just as your last guest said, something i have been saying a lot on this network, we have a dearth of information. Wall street and you know this, its hard for wall street, for the research departments, to calculate what this is because we dont know whats coming out of china and you know, so if you cant figure out the information dynamic here, your instinct is when the dow is at 30,000 or now at 26,000, 25,000, your instinct is to sell. Why take the chance. Long term, though, that is not investing. I would just say this. Unless you think china is going into real negative growth, we should point out supply chains know how to rejigger themselves now faster than ever before. You really have to predict doomsday to think we are going to dow 20,000 and stay there forever. I could see us going to 20,000 over the next week. I cant imagine us staying there, though. Neil the closest we have come to a bear market was in december of 2018. We got to about 19. 8 from our highs, then rebounded, cooler buying heads prevailed. I get that. If we were to get to 20 , we are about 6 or so from that level, does it depend on how long were there, if were there . Even if we get to 20 , we have to keep in mind high Quality Dividend Paying Companies are still going to look very attractive given where Interest Rates are now. Another fact to keep in mind neil why hasnt that money kicked in, realizing that . I think it goes to the uncertainty point. I think this is just, you know, there is so much uncertainty out there. I would say the administration has done a good job containing the virus. I just know a little bit about this because i have dop some repo reporting on it. They have reached out about getting drugs streamlined faster. Its all good. What they are not doing a good job is sort of communicating reality. When Mick Mulvaney came out and blamed this on the media, this whole thing, im just telling you, algorithms are not tied to Rachel Maddows twitter feed. Okay . Or cnn. They are tied to many other things that really do matter. This has nothing to do with the media. The media cant talk this down. This is all about professional traders neil if you are down 1,000 points, no matter how much media you are looking at, they are obligated to cover it. They cant force a sophisticated investor to sell his stock. You just cant. They dont care about us that much. They only care about information coming out of the white house, coming out of china, and i tell you, when you degrade the argument like that, then they dont trust the information. Im telling you, they should have mike pence every day give a briefing. Neil i agree with that. One of the things, i talked to the former health and Human Services secretary tom price. This issue comes up again and again about people not knowing whats going on. I dont think there is sinister intention here but the cdc says Something Different than the fda, something about a pandemic, the white house says go slow on the pandemic stuff, so its a whos on first thing. I think that adds to your point this uncertainty. I completely agree. I think we should keep in mind investors really have history on their side here. When we have seen corrections in excess of 10 within the context of a bull market, in the vast majority of instances, we have gotten double digit returns over the next 12 months. Particularly if this doesnt just blow up into what, theres 60. There are 300 Million People in the country. We have 60 cases. What is the percentage of that . This is almost infinitesimal in the u. S. The Trump Administration has done a good job containing. What they have not done a good job is communicating. The minute they start getting their act together communicating, i bet you the markets turn around. Neil let me ask you this, apart from the virus, when do we get lower Interest Rates, lower gas prices . Thats got to be a nice fallback. Right . No question. That just speaks to the Overall Health of the consumer, why we see the consumer remaining healthy, as we go into the second and third quarter. Neil they will be saving some dough in the meantime. Absolutely. Neil you predict housing benefits from that . Its possible. I think we will see benefits cross the Consumer Discretionary sector. The only fly in the ointment for me in terms of markets and the economy is i think the trade stuff that trump engaged in will have an impact. The fact that tariffs are going to kick in and i know they got a deal but its kind of weak tea, that stuff is going to impact corporate earnings at some time. Neil it impacted the ability of china to make good thats another thing. Are we going to put guns to their head and force them into recession by buying our stuff even more now . Theres a couple layers that need to be worked out. Listen, im not pessimistic. Im not optimistic. I dont think this is going to send the u. S. Economy into recession. I am optimistic on that point. I think its more likely than not the bull market continues, the economic expansion continues despite the short term volatility we are seeing. The result of coronavirus fears. Neil thank you both very much. Calming perspectives both in a different way. Again, its the unknown, to the point both have talked about here. The Dominican Republic turning away a cruise ship over the virus concerns. Jeff paul has more on that. Reporter that cruise ship is now looking for a new port to disembark after being turned away by officials in the Dominican Republic. Officials there now saying that they turned away the ship because eight of its passengers showed signs of possible crone aca virus infection. Both the Part Authority and Public HealthMinistry Said the captain of the ship reported four phfilipenos, two british we being observed after displaying symptoms including fever, coughing and problems with breathing. The cruise line said in part, it is our opinion that this is an overreaction by the Dominican Republic and its not the reception we have received at previous ports on this itinerary. The cruise line also says its medical team has confirmed that those passengers in question are feeling better, after being under observation. The cruise lines says to guest or crew are or have been displaying symptoms believed to be consistent with the coronavirus. The company is now in discussion with authorities on other caribbean islands and some airlines that will allow its customers to get off and travel home. Now, a different ship that was turned away from two other ports in the caribbean islands is now set to disembark in mexico. This was a ship that left from here in miami on sunday and it was set to be out there for 15 days. Neil . Neil thank you very, very much. Meantime, weve got the New York PostEditorial Board member, Kelly Jane Torance and Edward Stringham to pick apart the fastmoving developments. When you look, the people you talk to look at the fastmoving markets, its been an awful week. Unless something miraculously changes, it will be the worst week for stocks since the meltdown. Is it overkill . Is it too much . What are you hearing . I think a little bit. A lot of people are forgetting what happened after the sars outbreak of 20022003. The markets went down sha, not dramatically but they hadnt gone up this dramatically before. And of course, they recovered. I think there is a little bit of overreaction right now. I was actually on a call today that the cdc had. They did say the Testing Process has not gone as smoothly as they would like. They have had shortages, they have had issues with tests but they point out theres only three cases of persontoperson spread in the United States and all three of those were spouses of people who had actually traveled to china or had been on one of those cruise ships. So i think its a bit overkill right now. But you have been talking for awhile about how maybe the market needed a bit of a correction. Maybe this is not all coronavirus. Maybe they are taking the opportunity. I dont know. Neil they could be looking at it beyond this, is this something that leads to a slowdown here or worse. Whats your sense . It could be overreaction. We dont know. Thats the thing. If it really disrupts Global Supply chains around the world, things could get really bad. Neil its already done that. The question is you dont want to disrupt it for the rest of the year. But what are you hearing . Well, my friends on the New York Stock Exchange actually think its just a temporary blip. They say theres going to be a v recovery and so i dont think that we all need to start panicking at this moment. But the prices are showing that theres a lot of worry among corporations and among investors, and we just dont know. Thats really the big uncertainty right now. Neil i want to bring Jackie Deangelis into this. Shes at the New York Stock Exchange. One of the things i have been hearing from traders, is that all right, now weve got a more affordable market, its not as generous or as rich as it was, the multiples are coming back to reality coupled with the much lower rate, now we are talking buy opportunity. That might be premature and folks who own the market are hopeful for turnaround. I guess theyre biased. What are you hearing . Jackie as we are coming off session lows today, a couple of traders have said look, everyone is trying to take a deep breath. To the point your guests were just making, the market was at these record levels, we had moved so far so fast, some folks on the floor are saying it was sort of panic induced selling because we needed a reason to pull the trigger and sell and take some profits. But slowly you will see people go back into this. We have talked about this all week. We look back at ebola, look back at sars, at the end of the day the market was only slightly lower when those were all said and done. In the case of sars, it was up 6 . So right now, we are watching these headlines and people get spooked and the algorithms kick in and thats when the selling happens. But there was that one issue of sort of taking some profits off the table and the second issue, this all happened to come at the same time when Bernie Sanders really started to get some momentum. I dont think you can discount the fact, they are not discounting it on the floor here, that people are starting to think about the election in a little bit of a different way as well. But there was one headline on amazon. Com i want to draw your attention to. Asking all employees to defer nonessential travel including in the United States. This is not the First Company to do this. Coming off the back of the concerns about the coronavirus, nestle did it,lorealhas done it. You will see headlines like this because you will see Companies Taking precautions. Nobody wants to be out there and not prepared or not protecting their employees. One trader saying look, lets just try to finish the day today, try to finish this week, take a deep breath and start over on monday. Neil yeah. The amazon thing surprised me because it was Domestic Travel as well. That came out of nowhere. Thank you very, very much, jackie. I want to get the read on that travel thing from travel expert mark murphy, joins us on the phone. You might have heard about that amazon sort of missive to its workers. The better part of valor is cool it on the traveling. What did you think of that . I think its getting a little crazy. When you look at the case numbers, when you look at the origin, when you look at the death toll and death related to the number of deaths that happened in the wuhan area and the number of cases in the u. S. , it really makes no sense when its going down to Domestic Travel. I think its beyond ridiculous at this point. I think its a lot of us talking about it that is creating the fear, then are there liabilities issues the companies are thinking about, do they really feel they have to protect their employees from travel within the United States . We are talking about less than 100 cases in the u. S. Today that have been confirmed. So that doesnt really make any sense to me. Theres 300 and almost 30 Million People in the u. S. Cant go to the Grocery Store now . You have to just selfquarantine . Thats the point we are getting to with less than 100 cases in the u. S. Neil it can feed on itself, too. With all these organizations canceling International Gatherings and events, farflung from europe to latin america to of course, asia, now you have a number of countries putting out warnings about being at crowded events, so many European Countries canceling, people showing up for soccer games, they are still having the games, theres just no one in the stand, then theres added drama around whats happening in asia where their airport activity has tumbled more than 80 since the start of the year. That cant help but have a corrosive worldwide effect, right . Thats what it is. You want to talk about contagion. The virus its these reactions. Theyre doing more damage than a terrorist attack would. Its fear of the unknown. I remember back when sars was going on, yeah, you wanted to limit travel to certain areas. This has been going on now for about six weeks, where companies have come out and said that about nonessential travel to places like china, et cetera, and expanded from asia. But when you look at the actual statistics and numbers, and you look at the severity, the death rate in wuhan is far greater, fivefold, out of wuhan versus the numbers that have been contaminated versus areas within china that are not directly in wuhan. So you start looking at the numbers and you think why is there such a crazy concern. We will have 40, 50, 60,000 deaths this year from the flu. We will have 500,000 plus hospitalizations. I dont see people banning travel every single yoear becaue people are getting the flu. I think its the fear of the unknown. Thats been the biggest issue. I think people are politicizing it, unfortunately. And its really just having a massive Ripple Effect through forget the travel stocks, you are seeing it across the board. Its really a shame because we are going to see a nice bounce and i will guarantee that this will pass and in a few months, the media wont even be talking about it, just like what happened with ebola, just like what happened with the Dominican Republic last year. It doesnt matter whether its crime, sickness, the flu, h1n1, in mexico, it devastated mexico in april 2009 but no one goes back and reflects on those things, we are on the next story. Its unfortunate. Neil you are right about that. We have compared those prior incidents, most of the ones you alluded to, and realized how much they dovetail each other and tell the same stories. Very good having you. I appreciate it. Stepping back from this, kel kellyjane and edward, this was interesting, maybe you touched on it, how politically this falls out. It would be very hard to beat donald trump because of the Strong Economy and Everything Else that you alluded to. What if this gets in the way of that . Doesnt it embolden democrats who might have thought hey, weve got an uphill battle on our hands . I thought jackie made an interesting point. She is totally right, the rise of Bernie Sanders might have something to do with this. Then you wonder is it also a selffulfilling prophesy. The markets are worried Bernie Sanders might win. It may help trigger us into a recession. I think that is going to make it more likely. I have to say, i have republican friends who in certain states, if they can vote in the primaries, were planning to vote for Bernie Sanders in the democratic primary because they thought he would be so much easier for donald trump to beat. I was warning them be careful what you wish for. If we do see some economic troubles because of the coronavirus, other things, i think it does make trumps reelection not nearly as likely as it was and you have that risk of a Bernie Sanders. I think all of america except for a small group of people would be worried about a Bernie Sanders presidency. Neil joining us is democratic strategist laura sing. I dont know where this race stands in the Democratic Party, but many argue that even if joe biden does very well in South Carolina tomorrow, hes got an uphill battle in some of these super tuesday states where you have better than 1300 delegates at stake. What is your sense of the whole mix with this, the virus and how its all seeping out . Well, i think they are two separate issues. I really dont think you can blame Bernie Sanders for the stock market tank. I think it really is about a Global Pandemic. But in terms of the democratic race, i think its important to look at in my home state where i sit right now, california, we are going to talk a lot about South Carolina and momentum and it looks like joe biden will win handily there. That said, we come into california where voters need to or candidates need to get a 15 threshold. They need to get 15 of the vote to get any of the delegates. Right now, its a prevent defense on behalf of the candidates because they want to stop Bernie Sanders from getting all of californias coconuts. Neil you know, one of the arguments i heard about all the number of candidates still in the race is it makes it even more likely Bernie Sanders could run away with this. I think the strategist or the thinking goes like this, laura, that because it would be difficult for a lot of them to get the 50 threshold that you need to get a force of the delegates, Bernie Sanders gets more delegates with each and every passing state and has certainly at the very least a strong plurality, you know, getting to the convention and in a weird way, their ongoing presence means that they are making it better and more likely for him to emerge a delegate winner. Well, its true that the split field advantage is bernies. Right now hes pulling in roughly one out of every four democrats. That means three out of four are voting for other folks. Because of the consolidated primary on super tuesday, we are going to see that break down and other candidates drop out. It also elevates the importance of states like florida that have midmarch primaries. If this race will shake down and bernie will be challenged, it will be in midmarch after we can read the tea leaves of what happened on tuesday and then moving in. So it really is a very fluid race, very open. Reminders of donald trump in 2016, however, the question is do democrats behave differently, how does the money shake out. There are three or four very popular contenders outside of bernie, so it remains to be seen. Neil you know, laura, the notion that Bernie Sanders selloff isnt totally dismissed by a lot of market pros. The thinking goes Something Like this, that among the wall street crowd, i always argue with my guests, be they on the left or the right, that traders arent red or blue, they are green. They just like making money. They made a ton of it with bill clinton. They wanted to keep him in office. What they see at risk, with the low tax environment under President Trump, whether or not they personally like the guy and Bernie Sanders emerging, a guy who put a target on them, and this virus, others have raised this, its another thing you cant dismiss. The markets are sensing hey, we laughed off this guy and maybe we shouldnt. What do you think of that . The timing is a little bit suspect is what i would say. I understand that sort of green motivation. However, it really, i think President Trumps response cannot be discounted here, because he has undermined his own credibility and what you need is credibility to manage the exogenous threat. You cant control neil no, no, i do appreciate what youre saying but but that impacts the market. Neil its not a gimme that he will get reelected. Thats what the markets are sensing. Absolutely. Neil all right. Absolutely. Neil finish that thought. I was just going to say at the end of the day, President Trump has been buoyed by the economy because of his low approval ratings, he has sort of stood on that but is it going to be his waterloo. The fact hes not moving to contain and do everything possible, his relationships with allies, i saw larry kudlow on television this morning and he looked like a red sox fan rooting for the yankees. I have just never seen him trying to defend so readily the fact that this is really contained and not a problem. I think it really is about the bread and butter issues of leadership and neil its a huge crisis here, right . We cant it really depends on the response now. I agree with you. Br [ speaking simultaneously ] republicans are scared, too. I look at the senate response, holding him to account. Everybody is sort of saying whats happening here and why arent things proceeding more smoothly. Neil still early on. We will see how it all goes. Thank you very, very much. I do want a Quick Reaction from edward on all of this. How do you think this all sorts out . A lot depends, to her point, its still early in the process, to your point as well, but how this goes, right . You dont want it to mushroom out of control. Sure. Yeah. There are certain things we just cant do. To say the president is going to be able to stop the spread of disease i think is asking too much of one person. In terms of the socialist threat, i think would be a major problem for markets and people on wall street dont want, dont like that. On the flipside, though, i dont think people could stomach a socialist running the country. If you look at the election betting odds, the president is, you know, highly likely to continue to get elected even though sanders is surging in the polls, election betting odds show that neil careful. They said george bush senior was a lock for reelection. I can remember jimmy carter was a lock for reelection. Im not here to disparage either party, just to say that history proves you can be proven wrong. Certainly. I just think that its interesting and funny that people are even toying with the idea of socialism in the year 2020. What country are we in. Neil we will see very closely. Meantime, i want to pass along interesting news item. A google employee who was in the companys Zurich Office has apparently tested positive for the coronavirus. Again, this is part of that issue we have been getting into of how its spreading. Then theres the issue of how we as a country then are responding. Fox news Congressional Correspondent chad pergram on the issue that has at least divided democrats and republicans, the funding for attacking this virus. Chad . Reporter well, in the past couple hours, i have been told they are looking at trying to put together a 7. 5 billion package, thats up a little bit from what i was told yesterday. They were at about 7 billion yesterday. Maybe as high as eight, actually. They hope to get the text of this bill posted sometime early next week, perhaps as early as monday, then move it through the house and senate later next week. The other wild card in this we are hearing is they might try to attach a temporary renewal of fisa to this bill. Thats something we have heard from different quarters, that its maybe or maybe not. Some members are adamant against that. Mark meadows, republican of north carolina, also patrick leahy, Ranking Member of the appropriations committee, hes oh, god, no, that was the quote. This will probably be a straight bill and they want to try to move it next week. Whats in this bill . We dont have the breakout as yet. There will be money for hhs, cdc, probably for national labs, also some state and foreign operations money. There was an unclassified briefing this morning for the house of representatives about this today. A lot of democrats were very disappointed in how it went. In fact, there werent even enough chairs for everybody to sit. There were only about 50 chairs when they had this unclassified briefing and they had to move it to another room. There was also a hearing with secretary of state mike pompeo. He was asked a lot about coronavirus. In fact there was kind of a funny moment at the beginning when David Cicillini from rhode island said i want to talk to you about coronavirus and pompeo said im really only here to talk about iran, and cicillini said great, i will talk to you about coronavirus in iran. He was also asked about this question about whether or not they wanted to move money from accounts in the federal government that deal with pandemic flu and move that over for the border wall. Pompeo described that as a quote, straw man but at the end of the day, the democrats are only going to allow new money into this bill. They dont want the administration to have this ultimate flexibility where they start to move money around, robbing peter to pay paul, as they say. Again, we dont know exactly when this will come up, stimulate next wesometime next week. There are 12 Appropriations Bills which fund the government every year so this is an additional bill. Steny hoyer, House Majority leader, indicated earlier this week they might need maybe a 14th, 15th, 16th appropriations bill depending on how bad this is, they just dont know. Thats why some folks wanted to plus this up as much as possible because its easier to pass one big additional emergency spending bill than say three or four. Neil while ive got you, has anybody stepped back from the personal invectives and comments on funding levels and all this, it looks like kids arguing back and forth. Not the image you want to present to the American Public in the middle of a potential health crisis. Reporter thats a couple questions i have asked the past few days. I asked Kevin Mccarthy, minority leader, yesterday whether or not, you know, he thought the democrats were playing games with this being political, not working with the other side. I said wait a minute, i said if you listen to the president s press conference on wednesday night, was he not being political, criticizing the speaker of the house saying she was quote, incompetent, his word, using this nickname of Chuck Schumer calling him cryin chuck and Kevin Mccarthy said i dont believe so, he didnt believe there was politics on the other side. I suspect once they get down to it next week and actually get what this bill looks like, thats when you will start to have the politics fall aside. I will take you back to something very important. In 2008 there was the meeting in midseptember when the speaker of the house called hank paulsen and said i need to find out information about the financial crisis and they had this major meeting up here which resulted in the creation of the t. A. R. P. Bill. We havent seen a fear set in among members of congress yet. Concern, to be clear, but not fear. Thats very important. That night after that meeting where hank paulsen came up and said i need several hundred billion dollars, i will say it again, several hundred billion dollars, people walked out of the speakers office, democrats and republicans alike, and there was fear in their eyes. Here, they are only talking about 7 billion to 8 billion. Theres concern but so far, there is not quote, fear among members of congress. Neil the selloff keeps happening, its just a matter of how quickly they respond. Chad, thank you. Good job, as always, my friend. I want to go to charles payne, the making money host who is coming up next hour. Charles, we are getting more word besides google having this employee who might have this virus in zurich, its preventing employees from traveling to iran, as well as two italian regions where the virus is spreading. Separately its saying that right now, it is policing travel among all employees worldwide. This follows amazon pretty much sort of policing travel, even Domestic Travel. Thats the kind of thing whether again, justified or not, that scares the market, does it not . That all of a sudden a bad thing becomes a worse thing economically append starts real pinching the global economy. What do you think . Charles theres no doubt about it although today, after this week, none of this should be news, per se, right . I think we are kind of bracing for any Multinational Company to say hey, we dont want our employees to go to italy or whatever. Its sort of the kind of preventive message we hear from businesses all the time, particularly in this era where most corporations are saying its more than just about profits, its about stake holders, including our employees, their health and safety. Its not necessarily a surprise. The flipside of that is theres been intriguing action in this market today, a lot of it revolving around the notion that maybe apple may be coming back online in china, which is the epicenter of this, which really triggered at least the economic fallout because of how large that economy is and how important they are to the global economy. So we are starting to see investors kind of feel around just a little bit and what i do find even more intriguing, some of the coronavirus winners just turned negative today. Clorox is getting shellacked. It was at 172, is at 156. Netflix down 20 points from the high. Even moderna which may have some kind of medical help here, is turning down. Interesting session. Even though on the surface we are down as much as we have been all day long, there are some interesting components happening inside even with that kind of news coming out. Neil thank you, my friend. Look forward to you detailing all of that on your fine show. Meantime, we have Morgan StanleyWealth Management senior Vice President jim lecamp on all of this. Whether the speed of this is justified or not, whether the amount of the drop is justified or not, we are only a couple Percentage Points from bear market level on the dow and s p 500, and that would be certainly one of the most rapid descents into a bear market we have ever seen, if it were to pass. Is it a little crazy to you, does it matter how long we are there, is it important that we avoid the 20 as we did in december 18 when we just got within a hair of it, then started buying again . Well, theres a lot of differences here. Its a great question. This is the fastest decline from alltime highs into correction territory that we have ever had on record, and it would be if we do hit that bear market level, that you are describing, it would be the fastest descent into a bear market. The thing about bear markets, they usually accompany recessions. Look, Housing Market has really been improving here, leading Economic Indicators have been turning up, not down. Even this weeks Economic Indicators. And i realize that could all change with this virus in our windshield and all this data in our rear view mirror but the reality is the market may be overreacting here. The reason we are overreacting, theres just too much uncertainty. The fear itself is really causing a lot of it. The fear of the unknown. We havent seen a big policy response out of the government. We havent seen a big policy response out of the Federal Reserve board. So all we have is uncertainty which is the one thing wall street hates the most. Neil let me ask you, indulge me here, i know the fed funds futures, we will be going to jeff flock and phil flynn in just a second, they are pricing in 100 cut in march, but yet we have heard from a number of fed governors and district president s on this network and elsewhere who are saying no, no, no, dont go hang your hat on that. So let me ask you hypothetically, say the fed does not cut rates next month, then what . Then you have an inverted yield curve because tenyear treasury yields are at alltime lows and 30year treasury yields are at alltime lows, and the Federal Reserve board seemingly doing nothing about it. Investors will not like this. Now, its not the level of Interest Rates that are too high. Thats not whats bothersome here. We need to change the mindset of investors. And we need to show them that theres something being done, even if its just changing the mindset, even if its just saying we got your back, we will cut rates here, this is going to make decisions even easier for you. The yield on the s p 500 now is way above the yield on the tenyear treasury. We are going to continue to try to foster growth here. Were not really hearing any of that. Robert kaplan said well wait and see by the time the meeting comes around. Neil yeah, i dont know. To your point, the confusion persists. Thank you very, very much. Thank you, neil. Neil its hard to follow so we just go by whats happening in the stock market, the futures market and over at the cme. Weve got jeff flock, weve got phil flynn following that. Again, gentlemen, jeff, begin with you, this expectation that no matter what kaplan and some of these others are saying, the market seems to be betting that we will indeed see a cut in rates next month. Reporter exactly. We have not only got the march now pricing in 100 , weve got some of the other months pricing in as much as half or threequarters. Do you buy that . You know what, i think its too early to say. I think the fed officials have got it right. What they are saying is hey, guys, in the pits, you are panicking right now and its probably more fear than reality. We are hearing that from a lot of places. Reporter you and i dont agree on a whole lot, but we do agree probably that this, you know, reaction is the reaction but the reality of it is not as scary to you, nor is it to me right. You know, listen, im not a doctor. I play one on tv a lot. But i tell you theres dr. Phil. At the end of the day when we look at this kind of stuff, we can only go by history. If you look at ebola, look at sars, look at these things, you know, it definitely, you know, we definitely see this as a buying opportunity. Every major demand destruction event over the last 25 years has not been a time to sell, its been a time to buy. Maybe this is worse than people know, but right now, the fed guys are saying were not seeing it in the economy. Reporter every time we try to get out of this hole and we are off the lows in oil, off the lows in the market, they pull us back in. It feels like the godfather. Mulvaney today said probably going to close schools down. That didnt help. No, i was watching this very carefully. What was the fed official . Bullard spoke to fox this morning, the markets at first went down saying hey, theyre not going to cut rates. Wait a second, why arent they cutting rates . So the market put in a really substantial nasdaq got higher but after that we heard from the World Health Organization that said raise the threat level and, you know reporter you are the most positive guy i know here. You tell me, is there any reason beyond what you already cited, history, to be positive any time soon . I think there is. In fact, you know, i would advise short dated calls here at this point because the odds are after a selloff like this, you are going to have at least one dead cat bounce or one snapback. Now is the time to be buying reporter today . Not today, but next week. Reporter at this point, we dont know. Another movie line. That was about last night i think. Neil i just find it pretty impressive that a guy named flock is referring to my people and the godfather but i appreciate your ingenuity. Thank you very much. Reporter youre not fredo, thats for sure. I know that, pal. You are the big boss. The big brother. Neil well see how that goes. Guys, great job as always. Thank you for putting this in perspective. The markets have an entirely different take on the prospect of Interest Rate cuts than the kind of confusing fedspeak we got out of a couple district president s and governors across the spectrum today. Kellyjane and edward back with us. Edward, one of the things that comes up is this idea the fed has to come to the rescue at all. Does it . They have gotten so involved with everything, its like oh, theres tariffs, now we will get involved. Oh, heres the virus. Neil its like a pavlovian response. Markets should be fluctuating based on underlying conditions. Neil market rates have come down. Right. Rather than the government, its like okay, we will stabilize every single thing. We are never going to let markets fluctuate under any conditions. They dont even have that capacity. Its this big fools errand they are analyzing every single thing. Okay, now we are going to cut rates again. Well, at some point, they are going to not have any rates to cut. Neil not a lot of arrows in that quiver. When you talk to people, one of the things you hear the whisperings over the weekend of maybe a coordinated central bank response, maybe something even bigger than that. Are we getting ahead of ourselves, that it warrants Something Like that yet . I think so. You havent even had President Trump tweet yet complaining that the fed neil dont get any ideas. [laughter] were just hearing theyre talking in congress, as you guys reported, 7. 5 billion now. It just reminds me of that Rahm Emmanuel line, never let a crisis go to waste. And i think a lot of people use that as a reason to try to get things that they want. And unfortunately in this case, you know, some people playing in the market might know different. Neil but i do im not trying to take political positions that nancy pelosi was critical of the president is and the amount of money he wanted, and this is the example, we got the amount of funding right away for ebola, shes saying we raised too much money for ebola, right . The solution is always more government. Dont worry about everything, just give us more power, more control and we will solve all the problems. Neil guys, you were great helping out today, great perspectives. Dont forget, were lye on all of live on all of this tomorrow on fox news, 10 a. M. , not only with the South Carolina primary and the big event ises there, but weve got the ranging cajun who told wall street, put on your big boy pants love that. He was lecturing these guys. Only interested in money, not thinking of country. I could quote him all day long. Hopefully, hell be coming remote because if you ask him nasty questions in person, it could be a bad day. Ill look into that and what the world could be planning to do on this because all sorts of stuff out there. Charles palm, take it duh payne take out to next charles payne, take it to next hour. Charles your impressions, unequal to all. [laughter] break at this moment, yes, it is another devastating day for the markets, capping off the worst week since the financial crisis. In fact, weve wiped out 5 trillion. The selloff accelerating today of after the World Health Organization warned hospitals around the world, quote, are just not ready. And the word also that the fed probably feels like they want to stay on the sidelines right now. Take a listen. Ive said up to now i thought it was too soon to make a judgment. But ill be