Transcripts For FBC Cavuto Coast To Coast 20240713

The biggest global coordinated effort since 2018 to save the Global Economy from the coronavirus. Were seeing it react pretty dramatically in the Commodity Prices right now. Look at the dow, were back up 766 points. Crude is up over 5 . Gold got smashed last week on margin calls, it is coming up 30 inhouse. That is pretty incredible run after a big blowout last week. The reason theyre buying gold, if all Central Banks start easing policy, gold might be a safe haven play t wasnt a safe haven play when we were worried about global recession but those odds seem to be going down as Global Central Bank starts to take action. Interestingly enough, last week commodities really got crushed. Grain prices, cattle prices, food prices across the globe, worried that people wouldnt have a lot of money to pie a lot of food. Those prices are coming back. Really a mood change from Opening Sunday night. We got more bad news from the coronavirus and more bad news thing is getting out of control, we open sharply lower. With more confidence coming back into the market, realization last weeks selloff was probably overdone, there will be life beyond the coronavirus. That is what the market is starting to price in. Neil so they hope. Well see what happens. Phil flynn thank you very much. Blake burman at the white house. The president planning to meet with pharmaceutical executives. Blake . Reporter the meeting takes place with pharmaceutical executives 3 00 here at the white house was initially set up about leering the cost of Prescription Drug prices. The focus shifted from what weve seen happen in recent days and recent weeks. Im told in fact the attendee list has green because of the change in focus for that meeting. President trump speak about this meeting earlier today said he wants to talk to the pharmaceutical leaders not only a vaccine but potentially something beyond that. Watch. We have a meeting with the biggest companies, most powerful companies, hopefully the Smartest Companies anywhere in the world talking about drugs or vaccines. Were talking about vaccine, maybe a cure if possible well see about that were talking about a vaccine and well move along very quickly. Reporter we are starting to see first signs of Community Spread as the cdc warned the Trump Administration is still highlighting risk to americans as they say remains low. The president this morning lauded the response efforts. Additional people were reported. Theyre in food shape but we have some additional people that were reported. The country is doing well. Our professionals are doing an incredible job. Reporter this meeting with farm executives will be a first of series of meetings. Im told the Vice President is leading response and coordination for the federal government will meet with Airline Executives on wednesday and leaders from the cruise line industry on saturday. Of course it is also entirely possible that the president would attend those meetings as well. Neil . Neil blake burman thank you very much. Both u. S. Coronavirus deaths are in Washington State in this country. Researchers say it may have been circulating for weeks, we dont know but dan springer following the developments in seattle. Hey, dan. Reporter im still hearing neil dan, can you hear us . Reporter neil, of the 80 confirmed cases neil if you can hear me of the 80 confirmed cases in the u. S. , 13 of them are here in Washington State, including two only deaths in the u. S. That occurred here in kirkland over the weekend. Both of those patients had Underlying Health conditions in fact they came from the same nursing home in kirkland, washington, a suburb of seattle. That facility is now essentially a quarantine site. There are close to 300 residents and staff, several dozen have flulike symptoms. So they are being isolated and monitored. Close to 50 paramedics, police officers, nursing students who went to the home over the last week or so are quarantined in their own houses. In all six people tested positive for covid19, including the first u. S. Health care worker to come down with the disease. At least 10 local schools shut down as either a staff member or student has testified positive for the virus or in the process of being tested for it. Jackson high school is an interesting case because a local researcher tested the strain of virus from a student and it matches the first known case in the u. S. A man who came back to the county from would you hundred, china, that was six weeks ago wuhan. That means the virus is spreading through the community the whole time by people who were not tested. As testing ramps up there is 33 spike in cases nationwide including a texas man who came back from china. He was in quarantine, twice there tested negative but a third test came back positive. New york has its first case a Health Care Work her recently traveled to iran. We dont believe that she was contagious when she was on the plane or when she took a private car from the airport to her residence. Reporter some good news for dozens of passengers who were trapped in quarantine on the diamond princess cruise ship. Three busloads of passengers were taken to the airport today where they can finally fly home. Back here in Washington State the governor has declared a state of emergency. He has got a News Conference later today. Neil, theyre expecting many more cases here and elsewhere in the country as they ramp up testing. These cases essentially double each week. Neil . Neil dan springer, thank you very much, dan. The president slamming Federal Reserve chair Jerome Powell slow to cut rates. Investors are looking for rate cuts across the world already at historic lows. Former fed advisor Danielle Dimartino booth. Danielle, that is what the world is waiting on. It is a big reason for the runup in stocks we got now, do you think it will happen a coordinated Central Bank Response . Certainly sounds like the g7 is working together real closely. We were watching asian markets open last night. We anticipate getting a statement akin to what Jerome Powell put out friday afternoon. His first emergency statement in his tenure by the way. We forget that his first day in office he had a four digit decline in the dow and said nothing. We need to take notice of the fact he really is stepping up here. But in any event we saw news out of bank of japan last night. Were hearing about the g7 and when you start to hear things six weeks ago there was virus in the United States and Health Care Workers are getting the virus, this which bring the fed off the sidelines and cut rates before potentially they go into blackout before this friday, where they dont speak prior to the fed meeting on march the 18th. Would not surprise me if we did not see some kind of action by the end of this week. Neil china is dealing with bad manufacturing numbers, alltime lows in key manufacturing gauge it it is possible china in the quarter were in is in recession. Explain about that. We got awful data, as bad as the supply chain and manufacturing issue is with china and as much as their manufacturing has come to a screeching halt the lesson for the United States is now china is 60 plus services economy, a lot like the United States and its the Service Sector that has been hit the hardest. You hear things like costco shelves are empty on the west coast. Hearing same things out of new jersey and new york f you get the fear factor percolating through the u. S. Economy where people will stay in, you will have a bigger hit to services which is exactly what weve seen come out of china. We need to really take notice of that and be prepared for that. Neil you know, danielle, what i worry about, i know Central Banks lower Interest Rates, as you remind me, we dont have a lot of arrows in the quiver, they can also flood the world with cash for wont of a better expression. That is apparently a bigger problem than many appreciate, especially people reluctant in accounts with getting margin calls, there is a shortage of cash around. How serious is that . Neil, were going to find out. As you look at overnight rate is determined by the Federal Reserve, it is almost one full percentage point above where the, where the 10year yield is today. In other words, last year when we were talking about rate cuts we were talking about them in 25 basis point increments. Now were talking about four at once which is what the market is pricing in right now, which is going to push us almost instantaneously, if the fed satisfies the market to talking about what the potential size of the feds Balance Sheet . How much are they going to ramp up the Printing Presses beyond what were seeing right now which is 100 billion a month . You will get every central bank in the world in this same game. So i think we get the answer to your question sooner than we might rather like it. Neil well see what happens, danielle. To your point the markets are 100 sure Interest Rates will be cut next month up to half a point. We shall see. New York Governor Andrew Cuomo is trying to calm a lot of fears out there. The facts defeat fear. Because the reality is reassured. It is deep breath time. First of all this is not our first rodeo with this type of situation in new york. 1968 we had the hong kong flu. 2009 we had the swine flu where we closed 100 schools in new york state. Avian flu, ebola, sars, merz, measles, right . We have gone through this before. Neil but is it the same as before . Dr. Anita ratcliff what americans should be doing to prepare for this. Doctor, i always tell people, im sure you do as well, dont get overly sanguine or cocky about it also alarmist but what do you tell your patient. Fear and panic can cause us to overinflate our risk or our understanding of risk. The American Public it is still very low, the risk of attaining coronavirus. We want to keep that in perspective there is a lot we can do on our own. Stay informed with credible sources. Centers for Disease Control prevention is excellent source of information. They have been following this from the getgo moment by moment. Be cautious by looking at social media and hysteria coming about, that can paralyze us. It causes us to overact emotionally and overrhee act behaviorally. Neil didnt the doctors of cdc say there is real risk of pandemic here . Doesnt mean it is disaster but we shouldnt be cavalier. Im not being cavalier but we need to be concerned around realistic again. We talk about the flu before, the flu sickened 20 million americans this year alone. Hospitalized 200,000 people. Killed over 10,000 people including over 100 children but were not seeing constant news media feeding on this were not seeing updates on this were not seeing that. I want to remind us that the greatest infrastructure in the world, the American Health care system. Were working all together, i join, every single day i go into work millions of other Health Care Workers putting themselves own the front line taking care of patients who believe in this. Neil many have died incredible, talking about commitment they made. Let me ask you a little bit about how quickly this seems to have spread. 60 plus countries right now. Growing technically faster outside of china than inside of china. Does the course of this, or the expanding nature of this, what does that signal to you . We knew it would come to the United States. I want to remind us it was aggressive strategic actions by centers for Disease Control and america that put travelers restrictions on in the first place. That is why were the number one visited country in the world but we still have relatively small number of people who have been infected. Yes we lost two lives. That is always tragic but in reality perspective these types of actions are important. I want people to focus on the themes, president announced they will feed vaccine development. We have testing. Were the ones who developed testing. We are going to continue to see report there is is increased number of cases, put it in perspective. Take steps of prevention. Go to the centers for Disease Control website to learn about things you can do to minimize this. Hand washing, people shrug that off, it is not a big deal. It is a big deal. Wash your hands. Dont touch your face, eyes, nose, mouth. Neil what about people afraid to fly . British airways curtailing flights to europe. What do you make of that. It is always wise to look for outbreak. They say, hey, be cautious. We never warrant to go into outbreak. Neil do you do anything special when you fly . Do you wipe down seats, tray tables . I do. I take hand sanitizer. I wash hands before i touch anything. I try not to touch anything. I wipe down disinfectant, seats, armchairs, after the bathroom you of course wash your hands. Neil wise words. Doctor, well see how it goes. Thank you very much. Meantime dont forget tomorrow is super tuesday. A third of the delegates at stake are up for grabs right now. That is better than 1350 of them. 1357 to be exact. Connell mcshane in one of those key states, North Carolina. He joins us now in durham, sir . Reporter neil, interesting, joe biden, former Vice President had a huge Night Saturday night in South Carolina and what that has done, as we talk to voters and officials here in North Carolina has people questioning whether any candidates can get the number of delegates they need to wrap up the race bitcoin essential in summer . I was talking a few minutes ago to a Bernie Sanders supporter on the street here in durham, he is all in for senator sanders burr he is worried can the senator get to 1991 delegates needed to be nominated on a first ballot. If he doesnt, well i will really have to think about what im going to do as a sanders supporter. Do i support biden . Do i stay home . Do i even write somebody in . Those are conversations happening thanks to the big biden win on saturday night. Now by the numbers as you say, tomorrow night is huge. Youre talking 14 states. The big ones obviously california and texas. Those are 110 delegates on the line here in North Carolina. I throw virginia in as another big one and when you talk to the now revitalized biden supporte we up in winstonsalem talking to state senator paul lowe supports biden, he is telling us, theyre hopeful, almost exact same dynamic in South Carolina can play out here tomorrow night. Listen. I know him. I watched him through the years and in terms of the Africanamerican Community Vice President biden has had a history of being involved in the Africanamerican Community. Thats huge. Reporter really could be huge here, and other states t does have a significant proportion of the population that is africanamerican. That is what the former Vice President is counting on in large part. That and momentum coming off of saturday. Neil, i would say one note of caution as we go into covering this tomorrow night, we met a lot of people here in durham that have already voted that voted early. We know before they knew the results in South Carolina. We know that dynamic is playing out in many other states. California foreone as well where a lot of people already have voted. Well see how that affects things tomorrow night. Neil connell, thank you very much as always. Bernie sanders is getting a bit of an edge in the polls ahead of super tuesday but that is not giving him an edge with all democrats including House Majority whip jim clyburn telling his concerns. So you dont share the view of some of your colleagues, electing or nominating him would be a sure George Mcgovern type defeat for the Democratic Party. Im not saying that. If he is the nominee, i am working hard as i can to make sure the George Mcgovern nominee. I remember him carrying one state plus district of columbia, losing others. I dont want to see that happen here. Neil by the way, clyburn backing joe biden was crucial, instrumental for better than half those who ended up voting for the former Vice President and helping him run away with South Carolina. To California Democratic congressman, a Bernie Sanders Campaign National cochair, ro khanna. Congressman, what do you make of what clyburn was saying . You know, Bernie Sanders impressive though he is will drag the entire party to a mcgovernlike defeat. What do you think . I have tremendous admiration for representative clyburn and he was instrumental in joe bidens win but 2020 isnt 1972. The concerns are very different and Bernie Sanders is talking about common sense. He doesnt want young people to have exorbitant student loans. He wants them to have health care. He wants them to have basic education. I think these things are going to resonate in the midwest and across the country. Neil do you ever look at this whole virus situation, sir and, you know, always try to walk the line, at least i try to in the coverage of it, not to go easy on it, assume it is not a big deal versus those who might create a sense of panic, what we know, there is a lot we dont know. We know it is spreading very, very quickly. Are you worried that that alone is something that bears watching . That we cant seem to get a sense where this is going . Neil, my concern is how do we get testing out there. Im encouraged that the cdc has said they are shipping 15,000 tests and they want to get 75,000 tests more out. That is a total of 100,000 but were a country of 330 million. We need to do a lot more to invest both in the private sector and the cdc to get testing so that every american can get tested if they need and we can look at the response. I think that really has to be our first line of defense. Neil how do you think were handling it thus far . I mean obviously i disagreed with things. I dont think people want politicians. Dr. Fauci, who is at the nih, i have total confidence in him. My view, lets give them the money. I think it will be 15 billion, which is 2 of our National Defense budget. I think people view this as a National Security issue. Give the cdc, nih, 15 billion to get inexpensive testing, to invest in antivirals, invest in a vaccine, invest in helping health care providers. Stop having politicians trying to take credit and have the doctors and scientists come up with a plan. That is my view. Neil we talk about the possibility, congressman, this is going to extend the incidents weve seen in this country. Almost inevitable. No one wants to see what happens in italy and south korea where they have gone exponentially up, almost like 20 each and every day. Are you convinced that is not going to be repeated here . I believe if we do our jobs it wont be repeated. Again if we can get, make sure everyone can get tested, if we can make sure that people are not fearful of a bill and they know if they come to a doctor to get tested or treated for Something Like coronavirus that will be free. The cdc will cover it. That people know they should have paid sick leave so they dont show up to work sick because they may fear not getting paid. So i think there are common sense things we can do to make sure that the disease doesnt spread. Neil sir, thank you very, very, much i appreciate it. Really appreciate it. Neil meantime you heard a lot of Companies Including british air in the last 20 minutes or so deal with curtailing flights abroad but increasing number of those companies doing the same when it comes to Domestic Travel, even here in the United States. Amazon for example, the latest. Google, some others. Whats behind that, after this . Our Retirement Plan with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. The new rx. Crafted by lexus. 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Side effects include nausea, diarrhea, vomiting, belly pain, and decreased appetite, which lead to dehydration and may worsen kidney problems. I have it within me to lower my a1c. Ask your doctor about trulicity. Youve been hearing a lot about 5g. But theres 5g. And then theres verizon 5g. Were building the most powerful 5g experience for america. Its more than 10 times faster than some other 5g networks. And its rolling out in cities across the country. So people can experience speeds that ultra wideband can deliver. 1. 7 gigs here in houston. 1. 8 gigs here in frigid omaha. Almost 2 gigs here in los angeles. Thats outrageous. Its like an eightlane highway compared to a twoland dirt road. Neil you know one of the many benefits of my job is i get to interview a lot of very impressive people and in the financial world, a lot of impressive ceos. Nothing more so than jack welch who passed away at the age of 84. Not only remembering his life and career, formally with the passing of the baton to name his successor. A quick look back. We raised this issue and the you and i chatted in the past. The guy who comes after you has a tough road. I did mention before the cocacola example, the Johnson Johnson example, when a big name leaves not Johnson Johnson. They have done fine. Neil do you wore it sets up High Expectations for this guy . I think the best way to look at this is, i sat in this, a room like this 20 years ago, 20 years ago this month and, replace ad legend. The headline in the paper was, legend replaced by livewire. And 20 years later, people are saying things. What ges strength is, it is a great ability to change. All these assumptions at this moment in time, we cant predict exactly what the future is. Neil where do you go from here . Lots of open students. Neil a lot of people do not picture you sitting around on a golf course. That is not a bad assumption. Neil the shareholders of america love you, you delivered for the shareholders, great, great, they say pay package, obscene, overdone, time come to rein these in. What say you . Free market system has flaws, excesses, swings but give me a better system. Lets not level things because you get so many unintended consequences. Im participate like some others of an american dream. Started with nothing. Worked hard. Did it all. You too. We achieve what we want to achieve. Neil do you think there should be a limit on what someone makes . No, i dont. Neil for the companies in those regions of the world where there is antiamerican attitude, does it change anything . Look it, neil, i think that overall most people understand that corporations are the heart and soul of an economy. And corporations were made up of an economys citizens. Neil you, mr. Free market capitalist, probably one of the best ceos of the last century are signing on to what is essentially a fiscal hail mary pass. No. I think it is another step in trying to resolve the crisis that we have. There is no question we were in a crisis. We have spreads here that we havent seen. Debt is, high yield debt has gone to all new levels. Ill tell you, we needed this help to get a chance to get this economy back on track without a serious decline. Neil you were a young man when you were taking over ge. You had a couple rivals for the job. How did that go . Well you know, neil, it was shocking because one of the rivals came in to me and handed me his resignation. Very capable guy. I said, what the hell is this all about . And he said, well i supported the other candidate. I said, look, tear that up and stay here. Neil did he stay . Yeah. Stayed and became vice chairman around stayed 20 years. Neil i always thought your key to success was straight from the gut, great book, it has to be from the gut. You have to get to people from a certain level that goes beyond just wonkiness and that is what we need. Your job as a leader to get in the skin of everyone. Show them where youre going, how youre going to get there and whats in it for them when you get there. Yeah. You get those three things going, man, you have got it. Neil that is what i do with the problemmer every day, every day, jack. I know you heard a lot of wonderful things about jack welch, all welldeserved, i can remember years, we have a lot more on fox news at 4 00 p. M. , what was his biggest mistake. Without blinking, hiring you making you an anchor at cnbc is a start. He energized you. His energy was contagious. A guy took a 12 billiondollar concern, made it better than 400 billiondollar concern. The stock rocketed 4,000 under his leadership. Only to see that wither away after he left the company. Charlie gasparino knows him well, knows his legacy very well. I will miss the voice. Tear up a little bit. Neil absolutely. He was a great ceo. In next couple days people will go through the legacy, look where ge is now compared to where it was when he left and did he leave his successors, namely jeff immelt something that was destined to fail . And you know i will say this, im going to argue this in a fox business. Com column coming up but, listen, jack welch transformed ge to meet the times. In the 80s the times was were, demanded we compete with japan and asia. Neil right. That we had management bloat in some of our biggest companies. That Corporate America was not up to the task of taking on particularly the japanese. He transformed the place. He was known as neutron jack because he fired a lot of people. Neil people used to say, fired a lot of people, kept the buildings intact. He didnt just fire people, established performance goals and they were rigorous. If your business and your job didnt meet those goals you were gone. Neil the new thing called the vitality curve. In other words, how you rank in terms of making people feel jazzed and engaged. I am trivializing it. Basic assumption you hit high in the executive ranks, youre a smart person. Right. Neil he had another level, that was here, the heart. He did care but in the 90s markets called for something else. They were calling for finance, for growth, for mergers. He adapted that. My bigger point, if he kept the company after 2001 after he appointed immelt, say project welch was running the company, particularly after the 9 11, businesses needed to recalibrate, that high flying model out of the dotcom bubble, all of that, people were saying that is not the new model for the future, he would have changed that immediately because that is the way jack welch was. Neil in trouble, i remember he said it is a new paradigm, jack. You base it on price to potential and promise. Right. Neil no, no. You base it on earnings. If these guys have no earnings and no prospect of earnings people are getting suckered. If the times changed he would have changed ge with the times and i think mr. Immelt is a very nice man. I know him a little bit, i used to work at cnbc which was unit of ge, as you did. He was a decent, decent guy. There is one thing he has to have his side of the story why he didnt do it fast enough. One thing he didnt do, change fast with the times. Jack invited people to argue with him. He wanted constant managerial argument. Neil it is hard to come after muhammad ali. That was part of it too. Great ceos do that. Jamie dimon, you know, had no problem, would have had no problem revamping citigroup if he stayed there after sandy weill. Neil the great ceos, transcend being a ceo. He and others like lee iacocca did as much to sort of galvanize america if you think about it. They were, listen, they were unabashed capitalists and i think in this environment right now where we have literally a Democratic Party that attacks people who are successful, we need, it would be nice to have a strong voice in a jack welch right now battling them. There should be someone coming after them. We should point out jacks last couple years were not, he was very frail. He was not feeling well. He died yet last night i understand but his mind was very quick. Neil absolutely. One other thing, you know, he didnt quite foresee trump, the trump phenomenon but he foresaw where the Republican Party was going early on. He said, i mean i have heard him, he was saying that, listen, the Republican Party is going to embryce populism. It will go back, he predicted all that. He was so smart seeing things. Neil remember during the meltdown, he wrapped his arms, final months of the bush administration, he wrapped himself around tarp and this rescue program saying that we have no other choice. Cash is frozen. That doesnt sound republican or conservative. He just snapped back. No, its america. We have to do it. You could argue until the cows came home. Jack was an ultimate pragmatist. That is why he would have changed ge. It is interesting, does he have any regrets businesswise . Clearly his legacy, i know this for a fact, people spoke with him, is bothering him. He is being tarred what is happening with ge which is money losing company, who would thought we heard that. He blames immelt to be honest with you. When i try to be fair about this, immelt came after muhammad ali. It was hard for him to change. But if jack welch, jack welch came after muhammad ali what we know jack welch would have factored company for the times. Would have pared down ge capital which almost torched the company in 2018. He would make the thing survive. Make it a better place. Why . Because the guy did not hire yes men around him. That is what makes great people. Neil by the way, if he was bothered by criticism he did not care. He would argue with you. Neil that is lesson to leaders of all stripes, carry on what youre doing. Let them almost see you sweat, even if you are sweating, but net never give them the benefit. This creative conflict, if you have an organization where everybody salutes the general, down argue, doesnt hash things out you have a crappy organization and im telling you, i have seen the best companies fail. I seen cult of personalities. There wasnt really a cult of personality at ge everybody argued with each other. He would scream back. That voice when he screamed you knew it. Contrast that to city group under sandy weill, ge under jack welch, jpmorgan under jamie dimon, who embodies that sort of conflicted culture you see why Great Companies survive and thrive. Neil and a good sense of humor. Listen neil very any. Full disclosure, i really liked the guy. He helped my career at certain times. Neil absolutely. Absolutely he did. And he helped mine. He always told me when he gave me a shot at anchoring, he approved or disapproved these kind of things even at that level, i didnt give it to you for your looks. I was on with him once, i said something kind of liberallish, charlie, are you applying for a job at msnbc . [laughter] neil we often talk this, is my bias, folks, he was one of the greatest bosses i ever had but more importantly he was also one of the most real. One more story, then i leave all of you alone. When i had heart surgery done. He called me up. Wrote me a letter, welcome to the zipper club. I said, does the scar go away . He said, you better hope not. You better hope not. Jack welch gone, at 84. Flexshares may look simple on the outside. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Neil take a look what is going own right now. With stacked advancing you would think bond woulds not be. Going up in price, down in yield where the 10year is fetching you a little bit more, not a lot more than 1 . Now that could translate in short order, if it holds to very good news on the housing front, two something mortgages. Borrowing costs for cars, you name it. To jared levy. Jared, it is interesting to see both the bond and stock markets kind in tandem today. Yeah, so i think whats happening first of all we had the reaction, remember a lot of people as this thing fell apart last week, a lot of traders sitting on the sidelines, there has to be a rubberband, there has got to be a bounce and i think were seeing now almost that algorithmic rally, right . Maybe a little more kneejerk and excitement as opposed to facts. There hasnt been a whole major turn around in covid19s u. S. Invasion if you will, im quoting some headline. Bonds continue to move higher, yields go lower and what i find interesting over past couple weeks not just has the 10year yield been plummeting, but traders are betting on i think 100 chance the fed will cut rates in 15, 16 days when they meet, and mortgage yields havent moved. In fact Mortgage Rates kind of neil why is that by the way . I noticed that too. Im told it telegraphs lower Mortgage Rates. It hasnt yet just like the collapse in oil prices hasnt brought those hoped for gas price cuts . Yeah. Listen, im not thinking that banks, they all pool together, have some nefarious plan or neil i wonder. I wonder. But it could be, right . They were late to react. Think theyre thinking through, all right, what are the ramifications here . They know a lot of people are overreacting to covid19. I guess maybe they could chalk it up, well, we were waiting to see what would happen too. The reality is, listen, 10year at just above 1 with 100 chance of a rate cut. Could be 50 basis points, we should see Mortgage Rates much lower. A little bothersome as the consumer but it is what it is. Neil very quickly, my friend, you buy today, what happens, if we hold these kind of gains, it represents a turn or what . I started buying up on friday. Lets remember, it is the response, not the virus that has cut supply chains and caused production halts. I believe there are much more people in america that have it. I remember the mortality rate, very, very much small with covid19. It will shake out with lot more volatility. Im buying here. Stick with value names. I like big dividend earninger earners, j and j, campbells soup, as people flock to the canned goods and panic stuff. Neil makes sense, my friend, jade levy. British Airways Latest to cancel some flights from the uk to United States. Delta, american airlines, suspending flights to milan, italy. United doing much today, telegraphing that. Certainly comes to asia. Vice president mike pence is meeting with airliners and cruise lines later this week. What do you make of the what the airlines are saying . I know theyre being abundantly cautious, but means they get walloped on the bottom line, right . More people afraid of flying . What were seeing is interesting, 5 of International Demand has dipped since the beginning of the year before the virus took off. So that is kind of the response these airlines are taking in reaction to that but what we are seeing is a growing trend in and interest in travel domestically. Were seeing Domestic Travel continue to grow over the past two months while International Travel is taking a dip. Neil so the precautions going to europe for example, and other points, is that overkill. Now obviously you can say with the latest rocketing in incidents in places like italy and to a lesser degree germany, but a marked increase from virtually few if any to now dozens there, that this is justified . Well you know, i think a lot of people are taking it in, precautions, over abundance of caution. What were seeing is if you look at what the cdc is saying, theyre asking people to restrict nonessential travel to places like italy and south korea and those are really the only two destinations right now internationally where theyre saying hey, if you dont have to go maybe dont. I think right now people are looking ahead, you know, everyone has been speaking about it on this program today, there is fear involved and when that happens sometimes it takes over before the facts kind of catch up to that. So what were seeing is people, you know, dropping demand internationally overall but increasing demand in travel domestically. When we look to spring break for instance, people are still trying to travel. Were seeing a huge uptick in numbers going places like florida and nashville. So i think well see bigger Domestic Travel boon this year. Neil flyers have a lot more flexibility now, right . Yes. Absolutely. A lot of people have flexibility. Were also seeing that Certain Airlines are offering you know, cancellation fees, change fees, to be waived due to the virus if you were supposed to travel somewhere that has been impacted. Neil well follow it very closely. Thank you very much. Thank you. Neil continuing to see the businesses what theyre looking at here, Stanley Black decker partnering with a local School District giving High School Students the opportunity to have a hands on experience in a factory. Grady trimble has a lot more on that. Hey, grady. Reporter neil, they actually have a classroom inside this factory. It is 50 yards away. Students study their classes and then the rest of the day they work in the factory helping make compressors. This gentleman, high school senior, right here. They get paid to do this work. It is good for students, it is good for the School District. For Stanley Black decker, they help to hire people. They and a lot of manufacturers across the country are struggling right now. There are more than 350,000 manufacturing jobs open right now. That could get even worse as baby boomers start to retire. Listen. We realized in the next five years or so, about 30 of our workforce could be retiring. So attaining that skill now, getting them trained and ready to take on these positions is very important to us. Actually going to college to be an engineer. Once i came here and started talking with some engineers here, it gave me insight into manufacturing. Reporter these are goodpaying jobs, too. Manufacturing and other types of bluecollar jobs, they can pay a lot better than Service Industry jobs. So that is what the School District is trying to show the students, there are jobs like this out there where you dont need necessarily a College Degree. They want to emphasize you can get a College Degree work for a company like Stanley Black decker. Already this program has only been in place a yearandahalf. Stanley black and er at this factory hired three seniors after they graduated. Neil . Neil interesting, Grady Trimble thank you very much. In jackson, tennessee. Jonathan hoenig with us right now. Jonathan, i want to quickly pounce on your reaction to the markets what theyre doing today. Dow up 781 points. Interest rates continue to slide. That is kind of a rarity where both of those markets are going in tandem. What do you make of today . After a disasterous week, the fifth worst week in stock market history last week it is nice to see somewhat of a bounce here. Im reminded by the old adage one sparrow does not make a spring. Meaning issues facing the economy, not simply the coronavirus but slowing Global Economy at large remain in place despite greater intervention from world banks worldwide. That remains. Im looking at things like internals. Only 17 of stocks are above their 50 day moving average. That is a basic trend indicator says at least for now the trend is still down for stocks despite todays rally. Neil the catalyst, you touched on the idea, world Central Banks will coordinate some sort of a move. The president says our Federal Reserve is late to manufacturer. What do they expect to see happen . Im a little confused with respect to the president , neil, be careful what you wish for . Places with economies with low Interest Rates are extraordinarily weak economies. Japan has had zero, near zero Interest Rates 20 plus years. They used to call it the lost decade. Now it is the lost decades. We for example, in germany. Ultralow, in fact negative Interest Rates. Were heading here. You talked with Danielle Dimartino the market is pricing in ultralow Interest Rates. It is not helping the economy at large. It does not help those historically suffering from intrinsically low growth. Neil people had margin calls placed, their accounts deplete sod much, put up cash or had to sell stocks, like the meltdown in 2018 can be selffeed sort of prophecy here. What you make of that, how pa central bank or in our case the Federal Reserve, others deal with that and sort of flood the system with cash, just in case . I mean how it relates to investors, neil, size kills. Market from the floors in chicago when you have these enormous big positions, markets are like this, elephants are dancing, mice get trampled. Markets taking a bit of a dip is a great opportunity to get the house in financial order. It is Impossible Task to predict what Central Banks will do let alone the economy. When you have your Household Debt paid down, six months of living expenses, moves like this, neil, five, 10, 20 drops in the dow, they simply dont hurt as bad. You can pick up bargains if youre in it for the long term. Neil are you . Im still a fairly young guy, neil. Absolutely. I have some investment accounts that are truly long term accounts but that is make the emotion of this also difficult. Everyone says im in it for the long term but when stocks go down 10, 15 , they say, get me out. Having a sound Financial Foundation so important. It gives you the cajones if you will, dont know if you can say that own your program, the cajones to stay in if the news and headlines are very, very bleak. Neil apple, amazon, technically in bear market territory. I always say that with quotations around it, bear market based on what they were only two weeks ago but what do you make of that, a lot of money seems to be finding its way a long way from where we were but a lot higher than where we were on friday . We talked about it last couple weeks, neil, as goes apple, i dont know if the economy but certainly the stoker market. It is a dominant member of all major indices, especially nasdaq 100. The tech names especially they are the ones that powered the market over the last four or five years. It hasnt been the steel stocks or manufacturing stocks at all. It has been high technology. So if youre looking for a sense, what will be is this a buyable bounce in effect, watch hightech names, watch google, watch microsoft, watch apple, if the market rallies, my prediction these names will lead us higher. Neil well see. Jonathan, change on a dime. More than able to do so. Briefly, neil, condolences to you, loss of jack welch. Wonderful friend and amazing mentor and Business Leader for us all. Neil youre right about that. Remembering jack welch and fixation on markets and their swings he was wellknown for saying i dont get caught in the daytoday. When you get to be my age, you like kind ever minute to minute. Well have more after this. Lookt kind of minute to minute. Get a nofee personal loan up to 100k. Im part of a community of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. We are solving problems that improve lives. Neil well, the market, take a look at whats happening with Interest Rates. This could have a lot to do with it. Stocks up about 800 at the corner of wall and broad, were talking the dow. The 10year is slipping on the belief that the Global Economy will continue to slip becaused on whats been happening based on whats been happening with the coronavirus. Scott martin, gentleman, welcome to both of you. Scott, what do you make of the comeback today . I never like to punctuate these in the middle of the day and say, well, here we go, the comeback is on. We know how things could change in about three the hours. Your thoughts. Everythings all good when the markets up 700 or so on the dow, and the pain is slowly forgotten. And i agree, neil, not to be histrionic, but markets are, and theyre very hyper. Not only in todays session, but the overnight session last night and sessions last week. So i think as an investor, as you were talking with jonathan earlier, youve got to keep a longterm or whatever your horizon is in perspective and realize that sometimes, yes, stocks arent the only game in town. As youve talked about on your show, things like bonds, gold, even other currencies besides the u. S. Dollar or are ways to hedge yourself and, more importantly, hedge your emotional self so that when times like last week happen, you still hang in there and are okay. Neil john, a lot of people might make a big deal about the correction that we saw, certainly one of the faster if not the fastest in terms of days. Others want to see a continuation of that cleansing process, if you will, of get us into bear market or close to it as we did in december 2018, and that will actually, you know, make things right. It seems like a leap to me, but your thoughts. Yeah, no. We, as you can imagine, we spent a lot of time speaking with clients and explaining the strength that you just said of the correction last week was a big part of those conversations. We had to explain to them that you saw a lot of probably overleveraged hedge funds unwinding those bents, a lot of algorithmic trading, a lot of what we would call sort of nonfundamental, almost panictype trading last week. So hopefully we get back into and, you know, todays the first day, but a little more fundamental trading which i think can smooth out the market. But trying to explain what took place last week was really a big part of the conversations that we had with clients. We think going forward, we think were going to see some positive news, but i would agree with some of your other speakers, we dont think were through this yet. Theres more bad news to come, we believe. Neil not to rain on any parade here, but this notion that all of a sudden, you know, of you have more airlines that are saying were curtail flights, certainly British Airways the latest to say if from britain to the United States and vice versa following on the heels of american and delta, varying degrees. A lot of companies advising travel restrictions for their own workers, even in Domestic Travel in the case of amazon and google. Thats going to be around a while, isnt it . Oh, absolutely. Absolutely. Oh, excuse me. Neil no, go ahead. Okay. The magnitude of the Economic Impact when you take a look, you know, we really dont know what the impact is going to be in china, therefore, what the impact will be in the u. S. So, yes, you know, youre seeing the airlines basically its sort of sell on the, sell on the rumor here that things are going to be worse than what we with certainly are anticipating. Neil scott, i wasnt clear about, that sorry, i apologize. Is it your thought that that is something that will hangover whatever hang over whatever economic yeah, being in the pits has damaged my hearing as i get older. Neil that was my fault. Go ahead. You can take it. Johns right, the markets tend to preempt or front load these rumors before the news. Look at some of the cruise lines, some of the airlines, as you mentioned. I mean, these guys are selling off at 30, 40 levels from the highs. And so for the news to be coming out, lets say, in a couple months when we actually see the fallout from the lack of travel and the scarcity of demand that may occur from the coronavirus spreading, once the news is out,ing its kind of over. Thats why as traders, as i think investors, if theres companies that you like that youve wanted at a discount, even apple on friday, microsoft certain orally as well last week, you have to look at these levels and say, you know what . The news is already kind of baked in even though the news is maybe not even out yet. Neil thank you the both very much. The dow up 781 points right now, a little bit more than 26,191. It is still off about 89 from its highs, however, so take this with somewhat of a grain of salt. Welcome but putting it in perspective. Meanwhile, businesses worldwide are making all sorts of plans and con tin general is for the contingencies, susan lee with a look at all that. Reporter yeah. Markets rebounding today at its highs, up some 800 points, and this is correcting, of course, some of the losses we saw last week owing to the coronavirus. Travel still restricted even domestically in some cases including amazon to shield employees from the coronavirus. Some Major Business events also being called off, the conference in barcelona scheduled for last week, can selled, the worlds canceled, and then we have facebook just canceling moe of its most of its developers conference, more specifically theyre canceling the inperson component of it which is, basically, most of it. But there still may be some video presentations along with Live Streaming and local events taking place in the month of may, attracting about 5,000 to the San Francisco area. Also the Game Developers conference being with postponed, set to take place in the middle of march but forced to a later date. They havent announced just yet, but the Biggest Gaming Companies pulled out ahead of it, they said, okay, delay it. 29,000 usually attend this conference each and every year. Its not the Tech Companies or the gamers. What about concerts as well . Yes, this is going to break a lot of hearts. Bts, the biggest boy band out of south korea here in the u. S. , canceling, forced to cancel tour dates next month in south korea. Green day also canceling their upcoming tour dates in the asiapacific and as a red resul, event bright warning that some big events, large scale cancellations might occur because of the risk that the p krone coronavirus poses. There are calls for march madness to take place without a national audience, pushing for a crowdless tournament which i dont think would be the same. Ing games start on march 15th. No indications whether or not the ncaa will actually listen to some of these requests. Neil . Neil how would they do that . Reporter yeah. Neil he shoots, he scores . [laughter] reporter it should be televised. Neil i dont know. Weve got to calm down here. Thank you very much, susan lee. Meanwhile, the Trump Administration will be asking pharmaceutical leaders to the white house to discuss a potential coronavirus vaccine. Take a look. Ing. We have some additional people that were reported. Im also meeting with the Pharmaceutical Company later on this afternoon. Weve asked them to accelerate whatever theyre doing in terms of a vaccine. Neil all right. That might be easier said than done. That could take a deal of time, a lot of things they can expedite, but what about that year timeline . Great journalist, a a. B. Stoddard on what she makes of all this. Good to see you. Good to see you, neil. Neil hope springs eternal, and you can hope you can push people, especially that industry, to come up with a vaccine. Takes a lot of time, theyre removing a lot of impediments to save on that time, but i always fear you can get peoples hopes up, you know . Right. I think the administration is doing all they can, and i think that the president s impulse is to continue to make announcements about, you know, their activity and their efforts. And, unfortunately, as we watched the markets, people understand that weve learned a lot in the last few days, and were going to lesh a lot of consequential information in the next week or two about where this is and what Community Spread, quoteunquote, is going to do in terms of the number of sick people and the rate of infection. And i think that we dont yet know what this is going, you know, to cost, how long, whether not that its going to lead to difficult containment and quarantine strategies and what it will do to Economic Activity. And i think that, you know, everyone is kind of holding their breath because we know its here, its now infecting people with unknown origin, whatever theyre saying, Community Spread. Passed from people who dud not just get off an airplane from iran or china. And i think, you know, its hard for the president to be in wait and see mode, but he should not promise a vaccine when what we really need is expanded testing and better knowledge of the transmission rate. Neil you know, they talk a great deal about the incident rate is lower here than it was with sars or involve the number of cases, but the death rate with is by far higher, and im beginning to wonder, you know, you walk a fine line between pacifying people and scaring them. I get that. But even on the economic side if you were to stop all the concerns about coronavirus today, you have to make up for all the frozen Economic Activity certainly in china, the airlines that are stopping or limiting flights to and from, like, the world, that takes some time to unwind. Of course. And, neil, we know here its already hitting Economic Activity in services. I dont think its going to be a problem in manufacturing. Im not an education pert on any of this expert, but we all know from the conferences that are getting canceled that you were just talking about and these big public events. Hotel occupancy, travel, airlines, trains, all of it and food services. And that is going to hit the economy. It already has. And i think thatll be stopped for a ill while, and thats without the prospect of something severe like transportation shutting down, seasonways, schools being subways, schools being closed and that type of thing. Yes, the markets will calm down when they have a better handle on what were looking at, but we are looking at reduction activity, and its going to hit our growth. Theres no question. We just hope itll be limited. Neil you know what i worry about, a. B. , and maybe because im an old enough fart to recall this, that were hanging everything on the Federal Reserve, on central bankings. Save the day, cut Interest Rates, throw the a lot of money out there. Do something because we, the politicians, are kind of unable to do anything. Im saying globally. Because, once again, the idea that the Central Banks much as they did during the melt are going to turn up again to do it all. Well, neil, weve talked before. The president has exposed us to longterm risk with, you know, sugar feeding a strong, rebounding economy and then a booming economy with tax cuts and deficit spending and stimulus spending and lowering of Interest Rates. Yes, i can see why announcements from Central Banks and promises about Monetary Policy are soothing the markets, but, you know, its really going to have to be a combination of responses. Probably more depths of study from the government, but its hard to keep lowering Interest Rates and exposing what will be an eventual downturn in the economy without coronavirus to a lack of tools and corrective measures. Its a balancing act, and you see the president today hes on twitter, and hes badgering the Federal Reserve again. But nbcs reporting that fema, the federal Emergency Management agency, is preparing for a possible declaration of emergency. So i do think there will be much more Government Spending that is beyond what is being talked about so far either in one lump sum or in several over the next couple months, and maybe theyll see that as the proper course without lowering Interest Rates. Neil we shall see. A. B. , thank you. Thanks, neil. Neil joe biden now saying super tuesday might be a sure bet for his campaign. Good thing, because a lot of polls are saying its not looking like a sure bet for his campaign. But that could change. Apps are used everywhere. Except work. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com oh no, here comes gthe neighbor probably to brag about how amazing his Xfinity Customer Service is. Im mike, im so busy. Good thing xfinity has twohour appointment windows. They have night and weekend appointments too. Hes here. Bill . Karolyn . Nope no, just a couple of rocks. Download the my account app to manage your appointments making todays Xfinity Customer Service simple, easy, awesome. Ill pass. And now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Neil neil voters in texas weighing te most efficient choice for their Energy Industry as they head to the polls tomorrow. Remember, its a big state too, 228 delegates at stake there. Hillary vaughn now from kermit, texas, with the latest. Hey, hillary. Reporter hey, neil. Well e, a new university of houston poll out this week found that 60 of democrats in houston would oppose the Green New Deal if it meant layoffs in the oil and gas industry. So thats something thats on their mind before they go to the ballot box tomorrow. Youre looking at 2. 53 billion that has been poured into this lawyer. Reporter the Permian Basin is in the middle of a back gold rush. [cheers and applause] ten years ago the dusty fields of west texas were a dead zone. And now its pumping how out crude oil around the clock. But some 2020 democrats want to take it off the clock to the make room for the Green New Deal. We have introduced the most sweeping Climate Change proposal its time for a Green New Deal. Reporter senators Bernie Sanders, Elizabeth Warren and Amy Klobuchar are cosponsors of the deal that would wean the u. S. Off fossil fuels and move to 100 Renewable Energy in ten years. But shutting down Domestic Production here doesnt moon oil wont be or mean oil wont be produced somewhere else. You cant just shut off the spigot and all of a sudden oil and gas no longer gets produced. It will get produced in a less economic way where regulations are not as strict. Reporter a recent Economic Impact report of the Green New Deal by the Competitive Enterprise Institute found that the deal could cost swing statehouse holds at least 74,000 in the first year of implementation. But in states like texas, it could cost a lot more. We know that it would add to the cost of living for every texan about 600 a month. Reporter the texas Democratic Party argues the problem with the between new deal is isnt the multimillion job loss, its the way its being marketed to voters. When it comes to the actual implementation of what the Green New Deal wants to achieve, the majority of americans support that. Reporter but some democrats say sans dont know whats in it. Texans. Id be surprised if you could find one in ten that could understand it. Its complicated, its expensive. Reporter neil, i talked with bud bergram, the founder of this operation that were at right now. He says taking a Domestic Energy source offline like oil and natural gas would just make energy costs skyrocket and middle and low income households end up paying the price for that. Neil . Neil Hillary Vaughn on all. That from texas energy to maybe a not so energized electorate, joe biden downplaying super tuesday expectations. Take a look. If you get clobbered on super tuesday, what does that do to your campaign . Well, it surely doesnt help, but theres a lot of big states coming up after that, florida, georgia, pennsylvania, michigan, i mean, a whole range of states that still are in play. Neil was he giving up on the roughly are 1357 delegates at stake tomorrow on super tuesday . The boston globe political reporter James Tindall on all that. James, how do you think he would fare . A lot of these states have had early voting already, and a lot of that ahead of his unexpectedly big win in South Carolina. So what do you see happening . Well, look, there are 14 states voting tomorrow on super tuesday. If you look at the math in which statements are voting states are voting, you can really only see him winning possibly in four of them. You look at alabama, obviously, being one. Arkansas where, obviously, Mike Bloombergs had some play. North carolina, virginia. And if you want to throw in texas for fun, but lets throw in texas as well. Outside of, that i mean, its sort of Bernie Sanders country. We enter super tuesday, of course, with the debate about whether this is a twoperson contest or a threeperson contest also involving Mike Bloomberg. Hes, obviously, the x factor in a lot of these contests, particularly in North Carolina or arkansas. But in california, of course, thats the big prize. And there its not even Bernie Sanders versus joe biden, its Bernie Sanders versus Elizabeth Warren. Neil you know whats interesting too, i know the field with steyer out and mayor pete, but you have to get at least 50 of the vote to get any delegates at all. Even the smaller field, some will be hard pressed to do that. In a flip sense, i guess, its possible that Bernie Sanders could amass more delegates than even its propositional to his popular vote, slight this. Thats exactly right. Were also having a debate about, you know, if Bernie Sanders does not get 50 on the first ballot at the Democratic National convention, what percentage is good enough to hand it to him . Is it 46 . Is it 42 of the delegates . Thatll be decided tomorrow and in california. One poll recently showed, a really respected poll showed Bernie Sanders was the only one above that 15 threshold, as you mentioned. Thats 415 delegates in his pocket. That is a a huge, insurmountable lead, almost impossible to stop him in term its of the plurality even if the race continues to consolidate. Lets say, for example, that joe biden is able to get endorsements from buttigieg and others. California may be entering, that and the one frustrating thing for political reporters and those who watch is we wont know the results in california for probably a month. It takes a while to count the votes there. Neil the number of delegates, the sanders votes i think it goes Something Like this, if you have a strong plurality the, you have the most delegates, most of the nominees who get to the convention rarely have the absolute majority, but theyre close or have a big enough lead where it doesnt really matter. Joe biden said, no, no, no, its the majority or you dont have it in hand. I can imagine this distinction is going to cause some fireworks. [laughter] yes. I mean, obviously, on the one hand the rules are the rules, and joe biden is absolutely right. On the other, this is the politics behind here. And, of course, underlying all of this are poll after poll showing that Bernie Sanders supporters are the ones who are more likely to not support the democratic nominee if it is not Bernie Sanders. So focus are really walking gingerly around how do we handle the bernie bros, how do we handle keeping bernie people on the team if another person is chosen as the nominee. It is just factually not true that a lot of the focus, at least since 1952, have walked into the convention without the majority of delegates. Most in recent memory have. So, again, in terms of the rules, joe biden is right. But we have a lot of fireworks to be watching play out. And super tuesdays going to start to answer a lot of that. Neil we shall see. James, thank you very much. Thank you, neil. Neil all right, the markets bouncing back but not as bouncy as they were before, the dow holding on to a 622point lead. But this notion that the bubble issues have been put to rest, David Stockman if here to make the case, no. You wouldnt accept an incomplete job from any one else. Why accept it from your allergy pills . Flonase relieves your worst symptoms including nasal congestion, which most pills dont. Flonase helps block 6 key inflammatory substances. Most pills only block one. Flonase. Neil new worries about antibiotics ad other medicines as china produces a whole bunch of those ingredients, the vast majority come from there. Edward lawrence at the white house. Reporter hey, neil. President trump, Vice President pence and the Coronavirus Task force will meet about lowering drug prices, but its turned into an action meeting. This meeting was set up before, and that was about drug pricing. This meeting was is set up a long time ago with the pharmaceutical companies because we brought the numbers down last year. First time in 51 years that the drug prices, prescriptions are down. And i have a meeting scheduled on drug prices, but now were going to make another subject, and that is to do with the vaccine, how are they doing. Weve asked them to accelerate whatever theyre doing in terms of a vaccine, absolutely. Reporter the food and Drug Administration says at least one Prescription Drug is in short supply because of the coronavirus. The fda will not say what drug or manufacturer. Between friday and today the food and Drug Administration says we have 28 Prescription Drugs currently in a shortage situation for a variety of reasons. Now, the fda will not say where those drugs are made, but we have a huge reliance on china for east making either making the drugs or getting the ingredients. The chinese plants were closed for weeks and have reopened, but it limited capacity. On capitol hill, senator josh hawley introduced a bill to get information on critical medication or devices and where its all produced. The senator says its inexcusable for American Companies to be hugely reliant on china for such lifesaving drugs. Also on capitol hill, senator chuck grassley, according to a source i have, says they are starting the talk about tax relief, and im hearing that the emergency funding bill according to the House Speaker in a letter is going to be, is likely to be on the floor for a vote this week. Back to you. Neil all right. Thank you very, very much. In the meantime, former reagan budget director David Stockman here. Hes not convinced this market comeback today is illustrative of anything more than a bit of a comeback. Youre still worried, right, david . Thats the gist of it . Yeah. I think this is a dead cat bounce. The jig is up. You know, weve had a fake recovery for ten years fueled by massive increases in debt. We didnt learn any lessons from 2008. In fact, the debt then was 43 trillion, its now 75 trillion. Were up 45 . The fed has been out to lunch crazy with easy money and, you know, the massive expansion of its Balance Sheet, modernization of the debt neil but [inaudible] a series of escalating debt long before the financial crisis and post, right . Yeah. But what heres the issue though, it leaves the economy exceedingly fragile. There is shock absorbers no shock absorbers in this economy. Its a just in time debtfueled system that cant, you know, absorb any interruption in cash flow. And what covid19 really is, is a massive shock to the supply chain of the world since so much stuff circulates as components and parts and raw materials, intermediate material. And that shock to the supply chain is really whats going to disrupt the entire economy. The only way you stop covid19, and its coming here no doubt about it, is to essentially separate workers from their jobs, consumers from the malls, diners from the restaurants, travelers from the airlines and hotels and resorts and so forth. And that will bring the economy to a screeching halt very quigley neil well, it hasnt yet. Are you saying that has to go on a while to have the impact . Oh, yeah. It takes, the supply chain of the world takes a few months. But theres signs of it everywhere neil so its not im sorry to jump on you, but its not like a hurricane where all that stuff is just delayed, people come back to doing their thing when the threat ends. Yeah. I mean, this is going to hit, and it will last for months. And the problem is the cash flow interruptions. 75 of households in america have no substantial cash. Many people are going to be laid off. They dont, they wont be paid while theyre laid off. You know, a lot of companies are living hand to mouth because weve got 16 trillion of debt on Business Today compared to 10 trillion neil theyre handling that debt okay, and with the lower rates you could make an argument theyll continue to handle it okay. You dont buy that . The. I dont buy that at all. They can handle it okay as long as we keep stumbling forward without any shocks to the system or interruptions. But what were having right now is a huge interruption to the system, and its beginning to hit these shores and our own production process here. But, you know, weved had very few covid19 cases because nobodys been tested. Finally theyre unleashing the test. The number of cases is going to soar. Of that is going to cause panic among the public. Youre going to see runs on the store shelves and everything else. This thing moves so quickly in the real economy that the governments and the, you know, the Central Banks, central authorities cant do much about it. Uhuh call it, you know, the neutron bomb of economics. Neutron bomb kills everybody in the radius, leaves the buildings standing. This is the case where 98 of people infected live, but it is so infectious, its spread so rapid wily that youre practically are rapidly that you practically have to shut down the economy to stop it. And this is an economy that really cant afford to have that kind of shock, that kind of interruption. Neil okeydokey. It worked. Im not going to eat lunch, so thank you for that. [laughter] all right, david. Inquiring minds want to know how everyone feels. We know where youre coming from. There are many people who will disagree. We are looking at that. In the meantime, a news item just came in here courtesy of the ap that says u. S. Senator Amy Klobuchar is ending her bid for the democratic nomination. Shety not score well in South Carolina. Early strengths in states like iowa and to alesser degree in New Hampshire just not enough. She follows mayor pete and tom steyer who have also opted out of the race. Amy klobuchar, apparently, ending her 2020 bid. Well have more after this. 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And learn about the only Medicare Supplement plans endorsed by aarp. Selected for meeting their high standards of quality and service. This type of plan lets you say yes to any doctor or hospital that accepts medicare patients. There are no networks or referrals to worry about. Do you accept medicare patients . I sure do see . Youre able to stick with him. Like to travel . This kind of plan goes with you anywhere you travel in the country. So go ahead, spend winter somewhere warm. If youre turning 65 soon or over 65 and planning to retire, find out more about the plans that live up to their name. Thumbs up to that remember, the time to prepare is before you go on medicare dont wait. Get started today. Call unitedhealthcare and ask for your free decision guide. Learn more about aarp Medicare Supplement plan options and rates to fit your needs oh, and happy birthday. Or retirement. In advance. Neil and then there were, well, not 16, Amy Klobuchar ending her 2020 president ial bid. To White House Correspondent phil wegmann. Phil, what do you think . I think this is especially good news for joe biden. Were hearing not only is she going to drop out, shes going to be endorsing him laettner dallas tonight. And this later in dallas tonight. Its a twoperson race. Amy klobuchar was also someone who criticized Bernie Sanders for being a democratic socialist, and now it e seems its becoming more and more up to joe biden to carry that banner now that she has dropped out. Neil im just wondering whether it might be too late, too too little, too late for joe biden. If hes not expecting to do well tomorrow on super tuesday, and they could be wrong, he has precious little time to amass a serious challenge to sanders who could score hundreds of delegates tomorrow night. Yeah, absolutely. And make no mistake, South Carolina was a major win for the former Vice President , but the question now is whether he can reply candidate that in these 14 different states. Joe biden is a fantastic repolitician, but retail politician, but its not going to be an opportunity to sit down and talk to voters oneonone. And, oh, by the way, Bernie Sanders and Mike Bloomberg, theyve already bought9 a lot of those airaways up already, so its going to be difficult for biden. His hope, is as we saw with n that interview with chris wallace, to survive super tuesday and try and win some of these other states specifically in the south like georgia and florida. Neil now, some of the other states he also did well, that is, the former Vice President. Large africanamerican population states like alabama, arkansas, virginia, North Carolina. I guess a little bit less in indiana. But thats not enough to close the deal, is it . Yeah, its not going to be enough because we know that sanders is going to continue to rack up delegates. And if you believe Elizabeth Warren, it certainly seems that this is getting closer and closer to a contested convention. Clearly, not something that joe biden wants. He wants to win outright. But that might not be possible. Neil all right. Well watch it closely. Very good having you, phil, i appreciate it. Speaking of super tuesday and whats on the line. Catch our special coverage tomorrow night, we begin at 8 p. M. , go to whenever. The only place you can go to get foreign markets reaction, go a long way to deciding sort of the next leg of this journey where you need 1,991 delegates to close the deal. Everyones a long way from that. Well have more after this. Theres a company thats talked to even more real people than me jd power. 448,134 to be exact. They answered 410 questions in 8 categories about vehicle quality. And when they were done, chevy earned more j. D. Power quality awards across cars, trucks and suvs than any other brand over the last four years. So on behalf of chevrolet, i want to say thank you, real people. Youre welcome. Were gonna need a bigger room. Neil all right. During the show weve been remembering very fondly a corporate legend, jack welch, the former ge ceo, arguably called one of the best chief executives this country has ever known. Jackie deangelis has a lot more. Reporter good afternoon, neil. Well, jack welch ran p ge from 19812001 when he retired. He had a long career there, joining the company as a chemical engineer in 1960. Some of his most notable accomplishments at the company include growing its market value to over 400 billion, and he certainly had a unique way of doing it. He loved saying, quote, fix it, close it, sell it. He wanted to make that company more competitive. He wanted to trim the fat and he did. He was also called neutron jack because of the way he slashed jobs at the company with the vitality curve where hed identify the bottom 10 of the company and say shape up or ship out. When jeff immelt took over, he was hand picked by welch. Far more challenging circumstances, either way the company lost some of its competitive advantage in the years after welchs tenure. Personally speaking, welch was a republican, vocal about his political views. He was the son of irishamerican parents, is and his father was a railroad conductor. He was married three times, had four children. His wife susie said this in a statement, quote more than anything else, leader, business icon, management genius, more than all those things although they are all true too, jack was a life force made of love. Neil . Neil he made a lot of careers. Thank you very much, jackie. Beautiful. Making money host Charles Payne of whom jack welch was a huge fan. Of course, a lot of people are. Charles, you have these iconic figures in Corporate America, lee iacocca comes to mind and again, certainly jack welch who were bigger than the corner office, werent they . Absolutely. Resonating so much more. In this case beyond even just america, neil. If you know, i wanted to also point out quickly this whole neutron jack thing, people werent talking about that toward the end of his career. In the beginning when he made the tough decisions to save ge, rebuild it, yes, there was extreme criticism of that. At the end when he created the most valuabling company in the world, very few people mentioned that. And they talked about the opportunities and also how much of a, you know, accessibility there was to jack welch. I remember when he left the job, he got a 2. 5 million speaking gig in china. So you and i have given speeches, and im always worried about it, try to personalize them. I said, jack, what do you say for 2. 5 million . He said, you know, charlie, i just talk for about five minutes and asking and the ask for questions, its like taking candy from a baby. [laughter] thats jack welch right there. Neil you know whats amazing, too, and we forget it, is how much stock he put in being a good person and the boss being a good person. He was a tough boss, but he set up this whole vitality thing where it was important for executives to realize that they had to do more than just high iq, they had to have eq, a lot of Emotional Intelligence for the job because it was bigger than it had been before. Ceos not only had to reach out and satisfy shareholders, they had to be cheerleaders in more ways than one, and he was that. It also empowered the rank and fiecialg you know, these topheavy organizations where, you know, the chain of command are so onerous that you never have any hope that your voice is resonating at the top or that anyones got your back. Thats another story that you hear more and more people talk about today and youll hear about in the coming days. He had a remarkable, one of a kind life, and its im glad i was able to meet him. I know you and him were both amazingly good friends. He made everyone feel good who met him, thats what i feel personally. And i do also want to say, you know, our prayers to susie. She was absolutely amazing as well. Accomplished, just a when they were together, the energy they had, now, that was neuron right there. That was energetic and optimistic all the time. Neil and she was one of the few that he did not cross. [laughter] he knew where his place was. Charles, thank you. Very much. Yeah. Thanks, neil. Neil for that reflection. I know youre going to hear a lot about the impact of jack welch on america, but he was the genuine article. He cared, he was passionate. He wore id on it it on his sleeve, and it was contagious. Couldnt help but just be caught up in it. Thats pretty good, a great commentary on lifer whether youre a ceo or not. More after this. 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The election seven or so days later, another fourteen days later, theres a number of elections after that. Neil you dont see him quitting. , no you know, theyre trying to fashion a coalition to hold Bernie Sanders under the 1950 odd delegates he needs for the nomination, and it isnt clear or to me other than the great victory that joe biden had in South Carolina that hes got the broad support necessary to do that on his own. Mike bloomberg has been polling in the high double, high teens, sorry. Hes got a con stuff went i that is constituency that is separate and distinct from joe biden. Neil hes got to win some contests tomorrow. Lets see what happens tomorrow or, you know . Neil all right. You need 1991 delegates to get the nomination. There are 750 up for grabs tomorrow. You were explaining to me the math about how it works, 15 of any delegate. There are fewer now competing for that 15 not named Bernie Sanders. Correct. Neil you could see Bernie Sanders actually pile up quite a substantial yeah. Particularly in a state like california neil right. Where hes got a 20, 25point lead neil sanders has a sanders does, im sorry. He could get a very, very large delegate haul, maybe as many as 300odd delegates there. Neil one state. One state. And that could be enough to give him a potential, and i underscore potential, leg up. This is a very volatile race. We saw in South Carolina that sanders is not invulnerable, and so, you know, or lets neil but theres going to be pressure on Michael Bloomberg, right . Other than to say well coalesce around joe bidening, we think he has the best shot. And you, that is mayor bloomberg, stay in the race, youre dividing that moderate vote and opening the door to Bernie Sanders. Well, i would reiterate the argument that the more people who bring decisive and distinctive messages to the table to hold bernie under that 1991vote threshold may well strengthen, not weaken the cause of neil but those alternatives would each need 15 of the vote. They would, and if its three major candidates, good chance they can get it. And you know what . I think we have to wait for the polls to close to see where we stand and what we do. But mayor bloomberg is an independent guy. Hes not tried to any party or special interests. So i dont think pressure is the sort of thing that will impact his thinking. Neil the reason why he didnt mention it is that he entered the race apparently convinced that joe biden was with imploding. Now, its only one contest, and joe biden did very well. He was doing poorly before, so he could do poorly again. But pressure builds on Michael Bloomberg or were betting on joe and not you, what would he do . Well, as i said, he got in this on his own. Neil yeah. He makes his own decisions. Hes not tied to the democratic neil i know he has a lot of money, but we wouldnt want to pour good after bad, bad after good . It isnt clear thats going cob the case. I think going to be the case. Until we assess where he is, to make a judgment that hes, quote, hurting the moderate cause or hurting biden, i think, is premature at best. And, frankly, one of the reasons i have worked for Mike Bloomberg for 25 years, hes independent, hes honest, and he makes decisions on the merit and what he thinks is right. Hes not subject to pressure. Neil how do you think he handled the africanamerican audience members who turned their couldnt he have handled that a little better . That ask very difficult situation for anybody. He apologized. I think in a heart felt way. Neil clearly shaken by it. He didnt know that would happen. He didnt act fast on his feet with that. Any of us would have had trouble with that. Neil absolute live but another image. The other image that ive seen, that the hundreds of africanamerican elected officials, some members of congress, some local officials, mayors who endorsed him, speak to the fact his appeal and his record is far broader than one matter he himself has acknowledged was not handled correctly. Neil still very early in the process. A long way to go. It is very early. We havent counted what, 4 of the votes. Neil 3. 7, but who is counting. I literally made that up. Lets wait until tomorrow night and aftermath, see what happens before we reach any conclusion. Neil understood. Doug schoen, thank you very much. Dow up 745 points. Dont forget our prime time coverage of the contests on super tuesday tomorrow. Meantime, my buddy charles. Charles neil, thank you very, very much. Good afternoon, everyone, im Charles Payne this is making money. Breaking now, up, down, all around, the market seeking direction today. It was early this morning, right . It found terra firma and skyrocketing into the green. This following the worst week for the market since the 2008 financial crisis. What state are you . Im asking top market watchers what is the emotional stage of market . They have to get capitulation and dismay before you have a real rally. What should you be doing . One of our favorite doctors will be here to help us separating fact from