Transcripts For FBC Cavuto Coast To Coast 20240713

Parts here today. Some are literal. The princess cruise ship is one. Theyre watching throughout the day as it makes its way to the port of oakland. It is supposed to dock around 3 00 this afternoon. Well talk about that, oil off the bat with our buddy phil flynn out in chicago, price futures group, senior strategist at cme. We talked about it last week, phil. You and i were going back and forth about russia and saudi arabia. Now we have the true price war breaking out that has consequences in places like texas and north dakota. Take us through what youre thinking about today . What im thinking about is were learning today, not always is a low price for oil good for everything. There is concerns for banks, oil producers, the general overall market. Having said that, there is some hope, you know, right now with the talks of stimulus. Maybe we can pull off the lows right now. There are old saying in the business low prices cure low prices but this breakup of opec and russia, this opec plus agreement is going to create more uncertainty in the market. You know the thing that i have to say about that is that what happened today by opec and russia getting into a little match against each other really threw the rest of the world under the bus. Already oil demand, connell, is the lowest level it has been since the great recession, since 2009, and now flooding the market with oil will put a lot of people in jeopardy of losing their jobs. They could create a ripple effect. Theyre supposed to stablize the global oil market, not terrorize it and i think in this case they terrorized the market and were seeing the fallout from that right now. Connell implications in west texas that rely on shale drillers f you look at shale oil producers, stock prices down 30, 50, 46 today, people will be worried if theyre not already about their job security. When you hear sweet spot, phil, people talk about that, they say, there is assumption made by some that Lower Oil Prices is good for all of us because were paying lower gas prices, understood. Right. Connell but what is, or do you have a sense what a sweet spot is, we afford to fill up our cars and not really hurting us, but the Energy Industry which is important to the country can do well, what is the price, do you know . I think it is above 50 a barrel for everybody to do well. Listen, i know producers can produce at 40 a barrel. Producers can make money at 25 but 50 seems to be that sweet spot where both producers and consumers can be. One thing i want to point out, when oil is at 50 and sustainable, it isnt always about the producing side, it is usually about the global economy. One of the things that sustain that price is a booming global economy. When you get into recession, you can give away oil because nobody is buying it because the economy slows down. That is what the market is fearful of. When they look at the yield curve earlier this morning, every part, long end, short end of the yield curve, below 1 . Connell right. When you look what is happening in the stock market youre pricing in recession and that is what the oil prices are pricing in. Sometimes a rebound in the oil prices can actually bring confidence to the whole market. Connell 34 oil, to your point were pricing in global recession. You would like at least get back over 40, give you a little confidences, maybe . I think so, absolutely. I think it will be very important to see how the Trump Administration stimulates the economy. They say theyre going to help out businesses. I dont know if they will help out the oil industry. That is not very politically popular to do. That might be something they can do, maybe help out some banks lending money to these guys. President trump did blame saudi arabia and russia for this big selloff in the market today and in the past they listened to donald trump. When donald trump, donald trump should pick up the phone, what are you guys trying to do right now . Youre supposed to be the Global Central Bank of oil. You let everybody down. You better get your act together. Connell what do you think theyre trying to do . Essentially put american shale drillers and companies out of business . I think that is how it started. I think the russians were saying listen, were tired of cutting production just to prop up the u. S. Producers. Were tired helping out the u. S. Making them look good. They were willing to extend production cuts but saudi arabia they were adamant. No we want to cut or were walking out of the room. Eventually, because the russians wouldnt go along the saudis immediately said this will be a day opec will regret. They started cut oil prices to the russian customers, got them on the phone, hey, whatever youre paying to the russians well give it to you six to 10 less than a barrel. If buying from the u. S. , well cut it to six to 10 a barrel. It became more after emotional thing than a business thing. Saudi arabia has a lot of political problems right now. The crown prescription arrested members of his family. I think theyre under a lot of pressure to keep the price up. This is probably one much his last gasps. Connell we may come back. Well see how the next couple hours go on the floor session. Off the lows for whats worth, crazy as it has been. Phil flynn on the floor in chicago. Lets get to the stock market. To watch the dow down 1300 points to think it has been worse today is something else. It was much worse. We were down over 2,000 earlier. There was a 15 minute time out in the market this morning. Liz claman made her way down to the New York Stock Exchange. She will host the claman countdown there this afternoon and she joins us now. Youve been talking about it, liz, even more than most, this kind of day was something we, you know, wanted to be careful of but it has been something to watch out, playing out in real time here. Liz january 22nd we first noticed it. I wasnt at work. I had to take the day off. They said you have to get on this number one, connell, i always felt, i made it very clear, that the chinese were never being up front or honest about their numbers. When you start to hear hear numbers of affected individuals are coming way down, that is positive for china i would take that with a grain of salt. Let me just describe the scene here. Veryrd early. In fact as soon as the markets triggered that limit down and then all trading halted, everyone was prepared, everyone is still here and everybody from several traders that i spoke to were very calm and orderly. Now if we can just pull up some of the european markets maybe we get a window what our markets do. Theyre much closer to the close than we are. They are down about 6 . What youre not seeing here is the milan stock market. He was just checking that. The italy stock market is down 10 full percentage points. I see greece is down even more. Greece is to the tune of 13 1 2 . Spain is down 7 1 2 . The european markets are struggling in the final hours of trade. S p for us is down 138 points or down 4. 6 . It was much worse earlier. That would be where we once again see the curbs and triggers where we stop trading all, and it halts. It is on your screen right now, that would be a level two decline, 15 minutes. Level three which were nowhere near. A lot of these traders here are telling me they do not predict we would see a level 3, 20 decline we would step trading for remainder of the day. We are here, looking specifically. I know you mentioned some of the shale producers. I dont know if we can pull those up for the moment. Specific names im looking at, apache, pardon me, exactly at noon, apache was down 42 . You had Continental Resources down 40 . Conocophillips, these are huge names, down 23 . Then you have got the independents like diamondback, i know you showed that one earlier, that is down 44 . There is a Company Called parsley, lesser known, 2. 5 billion market cap, that one is down 36 . That is the problem here. One of the traders told me, liz, you have a weekend, were coming off a weekend, more people sick in america, now 496 cases. So it is not going to zero as the administration had said late february. We do have of course the opecrussia, huge story, huge is the way that the traders are describing it right now, they are using it as a they cant get their act together whether to cut production which in essence would put a pillow underneath the situation but switch it over to peak anxiety. Are we seeing peak anxiety with the cruise lines . They are getting hammered once again, whether norwegian, carnival cruise, royal caribbean, these names are struggling at the moment. Look at royal caribbean, down 21 . As we know these ships that is expected to arrive in oakland is very close at the moment. You probably know more about that than i. Well be live 3 00 p. M. Eastern. Traders are telling me, connell, i will finish with this, some may consider buying in the last half hour of trade. So it could be a rocking session. Well see you then. Connell especially the last ten minutes. Well see. When we always meet every day at 4 00. You never know sometimes the big changes, wouldnt be surprised, claman countdown live from the New York Stock Exchange. With he see that today, which direction anybodys guess at close. Well talk to you then, liz claman. Lets get into the issue of Energy Independence more. Weve been talking about the Energy Related stocks. These are big ones. Those other companies are related, any way involved in the Shale Oil Industry are getting hit even harder today as a price war has broken out between saudi arabia and russia over oil. That affects again, west texas, south dakota, north dakota and other places where the shale business is a big one. From heritage, we have Energy Economist nick loris with us right now. What is your take on this, nick . Get away from all the virus talk, even though interrelated at moment, talk about the American Economy and how much of an effect Lower Oil Prices can have in a negative, in a negative fashion if they stay there . Yeah. There is positives and some negatives. Certainly with oil and Gas Production in the sites being number one in the world, it has become such an integral part of the American Economy. But at the same time, we also need to look at some of the positives we get from Lower Oil Prices. Is that there is a lot of Energy Consumers who woe benefit from gas prices fall to 2 a gallon and as well as energy consuming businesses and what weve seen in the. Through American Energy production is that these industries are very resilient and very innovative. A lot of people said they couldnt compete economically when oil prices were 50 a barrel. They found ways to do so when weve seen instances with saudi arabia and russia before. So im more confident that these industries are nimble and resilient and continue to produce and supply American Families and businesses with after fordable power. Connell on consumer front, first, then well get back to the industry, but on the consumer front it is logical that Lower Oil Prices means lower gas prices. That is good for all of us filling up the car. I guess the problem is that you need the motivation to travel. If people are not going to places, not going to work as much in the coming weeks or not traveling leisurely as much as they like, doesnt matter what the price is, because you dont have incentive to go for the virus. That is the concern. What we see russia and saudi arabia increase the supply regardless of economics demand was there because we had a healthy economy. Right now there is so much uncertainty in the marketplace on the demand side because of coronavirus. You see conferences and travel plans being canceled and demand continues to fall which is having impact, even more so on price. But at some point that has got to rebound. At some point prices will get low enough people will have confidence, start buying things. That is for the market will determine. When that will be is anyones guess. Because we dont know how bad coronavirus will be, what the uncertainty looks like. Also uncertainty with the future actions of russia and saudi arabia, there is just too much on the supply side and the demand side to know where prices will actually go. Connell thats the biggest problem here, right . We talked about it but that really needs to be emphasized is the amount of information we dont have and the kind of inability to have a reliable metric to make a forecast in so many of these markets. That is what leads people to just not know. Anybody that comes on, tells you it will be fine in a month or the opposite really doesnt know, right . Let me ask you on this final point, nick, ask but the industry. Phil flynn is at the top. Following oil as well. Sweet spot for him is about 50 bucks. You say the companies can survive and figure it out at a lower price . Do you have a different view what is quoteunquote, a sweet spot is for nymex oil . At same time few years ago people thought it was 70 per barrel was the sweet spot. Now it is 50 a barrel. It depends on the geography and deposit but there is uncertainty which parts, which companies will be profitable at which price point. I do think the 50 a barrel is a pretty good benchmark for the health of the u. S. Industry as a whole, at a time where it can keep gas prices relatively low too. I think that makes sense and i dont think this strategy from russia and saudi arabia is sustainable either, because it is going to cost them a lot of money to implement such a strategy. Weve seen saudi arabia try to break the backs of the u. S. Oil industry before and it wasnt successful. Connell interesting. Russias finance Ministry Said they could withstand 25 do 30dollar a barrel oil for six to 10 years. You dont buy that . I dont. That remains to be seen that would cost them a lot of money. If they were so hellbent on doing so they would have done that to break the backs of the u. S. Energy industry. The fact they havent done a strategy like this before, suggests that is all talk without a lot of substance behind it. Connell does the president have options here . Im not talking about virus. Im talking specifically about this oil movement, if so, what are they . I think it speaks with actions in a way that suggests that the u. S. Energy industry is healthy. It is going to continue to export and supply the world with affordable, reliable power. Weve seen what the market can do in the United States, in becoming the Worlds Largest oil and gas producer. Weve also seen the amount of exports increase to countries allies around the world to give people more choice. Theyre not dependent on oil nations or russian gas. We used our energy as a strong economic and geopolitical tool. We should continue to do regardless of strategies from nations that may be hostile to the interests of the American Economy. Connell nick loris, heritage. Terrific analysis. Thanks for coming on, really appreciate it. Thank you. Connell lets get back to the stock market for a moment. We were down more than 2,000 points at the low of the day for the Dow Jones Industrial average. Now you look at the board, two members of that average, walmart, verizon higher. Well take wins where we can get them. Deirdre bolton joins me. Only down 1307 points can we call that connell what a day. That was insane. 2046 points at the worst point for the dow. That was the biggest point drop ever. However it exceeded that limit this morning. Talking with your guest from the Heritage Foundation about oil. One trader i was messaging about this, this is a punch in the face. Nobody saw this move coming. You did last week. We were talking about it a little bit. Connell that wasnt any kind of prediction but the at end of last week we saw the developments and tension between russia and saudi arabia. No, going back a little further than that, nobody saw this piling on top of what were already dealing with which is the virus. A onetwo punch in the ring, a lot of analysts saying for our Energy Industry, below 40 a barrel is dangerous. It is not sustainable. What are we 32 . Connell with brent, right. Were already there. Connell weve come up oaf off the lows like we have in the stock market. Talking about dow, s p, down as much as it is, seeing oil down 34, down seven bucks, were come off the lows but still 34. What i hear on the screens with crude, this is diving the down draft in the stock market. Look at sector rotation, energy is the biggest declining, sort of biggest weight overall. Youre just seeing that between coronavirus and between these concerns about where Energy Prices go, what that does, i know everybody is saying oh, it is good, consumers will have more money in their pockets but at a certain point it starts to hurt the other parts of the economy. You see the fear. People from here and overseas buying u. S. Treasurys, saying i have no idea what else to do with my money . Connell 0. 31 earlier on the 10year. That yield is an alltime low. Were limiting some panic is dissipating a little bit. When you have Investor Sentiment that says i have no idea what else to do with my money, other than to bet on safety, sanctity of the u. S. Government, at those levels. I saw people talking about negative rates. That is unofficial. Me talking with traders. Do we get to where we are with germany. Essentially at this point you are paying for the right to loan your money to a government. Connell i dont know how that makes any sense. That is different story all together what is happening there. Not very far away from what might be happening here. Not out of the question anymore. There is a lot of people saying, futures are showing it for what the fed may do, meeting on the 17th, 18th of this month. Something like that 75 chance of at least a 50 basis point cut. Connell how much does that matter anymore, to people youre talking to . Honestly, at this point, theyre just saying it would help sentiment but as far as what it does,longer term, most people dont want it to happen but to your point not as effective as it once was. Connell we have the oil story but on the virus story the only thing, you know, other than time, that is really what involves it most likely over time but nobody has any, as i said earlier, any metric figuring out what that timetable is, other than peoples projections about a virus to say a year out, whatever it may be. Which i have no idea because im not a a scientist, or vaccine, maybe one being suggested as early as july or august. Connell but all thats speculation. That is what people in the market are dealing with. People are saying the fed cannot create a vaccine. Connell right. That is the next point, i think investors are looking for just sentimentwise or traders are looking for. Then obviously im continuing to watch gold as well another fear trade. Saw sevenyear high this morning. Connell i know. Well check back. Deirdre bolton with us here. As we continue here on this crazy monday, well watch this cruise ship as it is going to dock in the port of oakland this afternoon. I believe theyre still saying 3 00 p. M. Eastern, noon pacific. The state department issued a travel advisory warning as well, saying u. S. Sit concerns shouldnt be taking cruises. Especially those with underlying conditions but just people in general of course because of the risk of the virus. Travel expert mark murphy is with us on that. I get it, mark about the underlying conditions but why in the world would anyone consider being on a cruise ship right now . Because there are so many protocols with the place with cruise lines. They always had it. Norovirus has been going on here, on land much more so than cruise ships. Theyre prepared to deal with things like viruses. So whats happening right now you have uncertainty. You have obviously all the media. You have all the stock market all these things taking place. Originally over the weekened when kruczektives met with Administration Officials, it wasnt, dont take a cruise, if youre elderly, if youre immune system is at risk, Underlying Health issues, avoid it. That makes sense. For everybody else, feel free to travel. Go out on a cruise, on a plane, et cetera. But the state department it is worded differently today. We see a disconnect. Compare that to what the cdc is saying. That is not what theyre saying. To me on the front lines, you have travel agents fielding a lot of calls, because they book vast majority of cruises. Their crisis managers on concerns customers have. It is about getting information to the customer because there is so much garbage and fake news out there. A lot of people are thriving on the uncertainty. Were talking about stocks, people making a ton of money right now based on this hysteria. I call it hysteria, we have gone through in the travel space from ebola, zika, h 1 n 1, go down the line, we have never seen this action. I spoke to people in the medical field in a huge hospital that deals with a lot of children, reality is, nurses doctors there amongst themselves are saying we have 30 other things to worry about that could kill people and coronavirus isnt one of them right now. And so, they are just shaking their head about what is going on in the media world. Connell obviously people know been following this. There is not a lot of information out there. So people whether theyre in media or in government are dealing with a lack much kind of ability to make a projection. So what one person might call miss tear yaw, another person will say is pure uncertainty. There is no way to really make the projection. The point about children, virus so far what we do know about it, whatever reason doesnt have impact on that community, it has impact on more elderly communities. Sure. Connell there are larger concerns there. Dealing with travel, someone watching all that, put it all together, i agree there are different messages coming in. Some is situation i will evolving, some think the government doesnt have its act together but maybe they say im not personally worried but why should i be offshore or overseas on a plane . What if, to your point stuff changes on the dime and next thing you know i cant get back or cant travel . That is i think what is slowing people down a little bit. Tough to get through to them on that because we dont know. You nailed it on the head. The issue is uncertainty whether i get quarantined or miss two or three weeks of work because im stranded. Talking about a number. A couple Million People got off a cruise. Two do we have, two ships with an issue. In terms of what the metrics are, the metrics are very minimal. Im not saying go jump on a cruise, but im saying apply logic to your decision making. What is a good spot right now, in a previous segment, another hour on fox business, somebody talking about the deals that are out there. Because the folks in the industry want to encourage people to travel, theyre giving you the opportunity to book way out, have a cancellation up to 48 hours prior to your trip in most cases. You can apply that credit later. Take advantage of a great Economic Situation for you to take a vacation you may not have been able to do in the past. Take advantage of it, also step away from it, should conditions not change. Mark my word, conditions change dramatically the next 60 days. I dont think this will be a story in 60 days. That is where i sit. Weve gone through so many different aspects of these scares. What people dont realize the downstream effect of travel. When they travel, affects uber drivers, taxi drivers, restaurants down the line, hotel people. Talk about the Economic Impact of the oil drop, right, that benefits the cruise industry, Airline Industry big time but at the same time the downstream impact on peoples pocketbooks because they get laid off from businesses because 60 days from now everything is back to normal, lets just say, my prediction it wont be a news story in 60 days. Things will continue on whether we have covid19 or something new comes out a year from now. They have very smart people on this, the survive rate out of china is 97 . If you have ever been to china, i have been several times. It is not the cleanest. There are sanitary issues, smoking issues. Impact on mortality of males is far different than males. Men in china smoke heavily, not helpful to society there ace lot of other factors to consider. Connell understood. A lot of people see it that way. Some others dont. Kind of mix of those two is almost becomes it is what it is. Someone has your point of view, another person has another point of view, you cant tell someones behavior how to behave, maybe to your point, off days, nerve racking to some people. Appreciate your perspective, mark, thanks for coming on. Key word is emotion. Connell even markets, we calmed down a little bit. Thank you, again. Lets shift gears slightly to politics even though every story is related to the other. The state goes on in the state of michigan. They go to the polls tomorrow. Tomorrow is a primary there. Bernie sanders won michigan against Hillary Clinton last time around in 2016. A repeat could be tough. He has been saying he could win. I believe joe biden is the favorite. Jeff flock would know. He is in detroit with the latest. Hey, jeff. Reporter i believe he is. All about the Auto Industry when it comes to michigan. Were at the ford river rouge facility. At one point the biggest auto factory in the world. There may be impact from coronavirus on this race. Is he preaching a revolution, or the democrat more moderate . Speaking of a revolution, alexandria ocasiocortez yesterday campaigning with senator Bernie Sanders. Multiple rallies for sanders over the weekend. He also appeared with the reverend jesse jackson. Got his endorsement. Big crowds well, almost trumpian size crowds for Bernie Sanders. Joe biden wasnt here in michigan. He was instead in mississippi. Although he will be here tonight getting encoresments from Kamala Harris and governor of michigan, and cory booker. Biden, though he wasnt here, he published a oped in the detroit news, trumpeting what the Obama Administration did for the Auto Industry. I quote him now, despite polls showing 60 of the public was against the idea, we invested 80 billion into gm and chrysler. Senator Bernie Sanders was among those who voted against the rescue funds. Sanders in his part, firing back in a speech, joe biden made a lot of bad calls too. Take listen. Of particular interest to michigan and the u. S. , disasterous trade agreements like nafta and with china, which have cost this state alone, michigan, 160,000 goodpaying jobs. I voted against those agreements. [cheering] joe biden voted for those agreements. Reporter sounds a little bit like President Trump there for a minute, didnt he . One final thing, connell, with regard to health care. We think about health care now because of the virus. Of course president , or i should say senator sanders is preaching medicare for all which would take away the health care with no optouts for any of the folks that work at the factory behind me. You know people that have fought for Good Health Care and lucrative benefits, that would all go away. Cost of that program, of course is unknown. Former Vice President biden a more moderate plan to expand obamacare, pay for it with more taxes on capital gains, sounds to some maybe a little bit more reasonable. Well see. Supposed to rain tomorrow. Connell another wrinkle into the whole thing. Thank you, jeff. My friend jeff flock out in detroit. Im sure all this will come up at the next debate and the dnc changed the format for the debate, allowing candidates to sit down, rather than stand behind a lecturn answering questions. Sanders Campaign Staffers it gives biden an edge. Democratic strategist capri cafaro joins us on that. Do you think that gives biden an edge or not really . Lets start there or manufacturer on . I dont think this has anything to do with giving joe biden an edge. I think dnc cabal continues to be a talking point out of the Bernie Sanders camp which goes all the way back to 2015 and 2016, some of which is warranted, some of which is not. Joe biden gone through numerous debates for two plus hours, no different than Bernie Sanders. Standing behind a lecturn, has not complained or had any issues. I dont think there is any reason to think this is somehow geared toward helping joe biden. This is about bringing two people together in a conversational atmosphere which may be more conducive to a two person contest. In general election debate, sometimes they change up format, you have more traditional one, town hall one, to seated one. For example, 2000 with al gore and george w. Bush. I think this is making a lot out of nothing. Connell agreed. We almost always see is, youre right in every cycle. They have want to do things different live. The difference not being tweeted well, maybe Bernie Sanders was not by the dnc or everybody out to get you or rig an election against you is not the same. I think jeff flock. Jeff flock brought up an interesting point in middle of all this, coronavirus, the approaches of these candidates are much different, right . Sanders is the revolution guy and biden i guess is incremental in his approach and temperment. So how much does the timing, what were going through right now play into this next round of primaries, do you think . Im sure it is going to weigh on some voters for sure. I dont know how many states have early voting as we saw on super tuesday, for example, as we see on the 17th, with a number of those states. Some may have voted before the coronavirus really heated up. But i do think it will play into, more likely than not, i think benefit joe biden, somebody who has experience with dealing with crisis situations as he served in the obama white house. Someone has more legislative, you know successes than a Bernie Sanders who only passed bills about post offices. You mentioned medicare for all which there is a lot of open question marks there and who knows what potentially that would look like. Connell got to run, capri. Checking in on the cruise ship. You made very good points. Well see how it plays out. Joe biden got many late deciders. Well see how that plays out on tuesday. This cruise ship is expected to dock in oakland, california. Passengers will head to hospitals and quarantine facilities. Claudia cowan is tracking this and joins us with the latest from oakland. Claudia . Reporter latest update from the port of oakland, the grand princess cruise ship will arrive here at the port of oakland in 2 1 2 hours around noon local time. You have live pictures where you see it is now, circling for a fifth or 6th day off the Pacific Ocean off the golden gate bridge. Soon it will pass underneath the famous bridge, escorted by the coast guard. That will be a disa mat tick picture on this beautiful day. It is in a terminal used for parking and storage past couple years. Medical teams boarded the ship yesterday to assess the passengers. They will disembark in waves. Those who are tick will be taken offer first and hospitalized. That would include 21 people on board who tested positive for the coronavirus. Remaining passengers will be transported to several military bases for covid19 testing and a mandatory 14day quarantine. Two days are in california including Travis Air Force base which took in evacuees from the diamond princess cruise ship. Others are in texas and georgia. Officials say no one on the grand princess will be released to the general public. As soon as everyone left the ship, all the passengers, the ship will leave oakland and serve as floating quarantine site for the captain and more than 1100 crewmembers. This is massive undertaking. A number of agencies involved with all levels of government. Governor gavin newsom hopes the operation takes two or three days. For all the passengers on board they face at least a twoweek quarantine. At least they will be off the ship in a cruise to hawaii that went significantly off course. Back to you. Connell sure did. Claudia cowan, great reporting from out in oakland throughout this. Well check throughout the day. Were back on the stock market coverage. Were fading again. Down nearly 6 on the dow and s p 500. Back to the New York Stock Exchange. Kristina partsinevelos has been reporting from there. Right off the bat, we wondered whether we fall enough to get the Circuit Breakers put in place. We did. Well calm down. Well see what happens. Kristina to start the hit off, traders are relatively calm. It was hectic this morning. Next time potentially could see the Circuit Breaker go off, when the s p 500 drops 13 of oaf the close. Weve seen the 7 . It is to help liquidity in the market. The second level could be triggered at 2885 points. S p 500 still has aways to go. The 20 decline is a big deal. That would mean trading would stop completely for the rest of the day. This is up until 3. 25 p. M. Eastern time. If we see the things within the last 35 minutes or so, then that freeforall. Traders continue trading. I interviewed Stacy Cunningham who is the New York Stock Exchange president just earlier today. They have been preparing for situations like this, these Circuit Breakers of 13, 20 . So they are wellprepared. Traders here seem somewhat confident. One standing next to me receipt now. If we look at the vix that measures 30day volatility t really skyrocketed up to 62 which is a low or high we havent seen since 2018. This is pretty much the fear index. Now at 5291. There is fear an volatility. Will end on retailers, a lot of viewers commenting on Financial Media that were fueling this panic. Were really commenting, reporting how companies are reacting and letting people know what is going on in the market. You have several retailers showcasing people buying up all the cleaning wipes. Purell being sold off. Target is limiting clean wipes, disinfectertant that you can buy because theyre facing a shortage. Walgreens is expecting new shipments from purell. They havent received any days and days. Many viewers are commenting. Bring up the four stocks, costco last week told us they did very well in february because of unfortunately people stocking up on nonperishable items, toilet paper, et cetera. Walmart another bright spot up 1. 25 . Those are stories for retailers right now. People are stocking up and preparing as we are doing right now, reporting on it. Back to you. Connell really god point to make. It is not hype or anything like. It is story, reaction, peoples reaction and governments. Kristina real quick. Just to add to that. One investment was talking to me. He said theyre enacting contingency plan to have people work at home. Companies are being proactive. Were telling you the story. Just how we act and how we go to school and go to work, et cetera. Connell youre right. Kristina partsinevelos at the Stock Exchange. To that point, people wonder how governments will continue to react. We know what theyre doing overseas where the coronavirus pushed italy to lock down a third of the entire population. People say well, will they ever do that here . Amy kellogg, live in florence with a look how it is going there. Amy . Reporter hi, connell, you know the doctor keenian measures much like china had to do affect places not even part of the mass quarantine. Tuscany, im in florence, i have never seen this. Im in front of the best view of the house and no selfie takers and tourists walking around. It is frankly sad. Italy is hoping that the 14 provinces in milan being put under this massive quarantine will help spread the virus because the numbers keep continuing to climb. They tripled last week. Yesterday we got the statistics over 7,000 people all together have been infected with the coronavirus. Now in milan, transportation is working. Most people are working from home. However there are still people going on Public Transportation to their offices. Pope francis streamed his private morning mass this morning. He gave prayers and solidarity with, for those suffering from the virus but also people working sew hard right now to care for the sick. He has been laying low himself with a cold, and admits to feeling caged in. There were some surreal scenes at the soccer match last night between inter milan and. Juventis. All matches are behind closed doors. Staff with their temperatures taken at the doors. Fans waiting for favorite glimpse of the their favorite players outside the stadium in torino. This has had dramatic affect on prisons. Visitation for prisoners is severely curtailed with outside family members with the coronavirus. Also theyre not allowed to congregate and socialize together in certain cases in the recreation room. That set off a series of riots yesterday. There are some still going on today. At least six prisoners were killed in all of this. Some of the deaths attributed to a pharmacy breakin at one of the prisons. Some of the inmates overdosed and died that way. Markets down in milan, connell, 9 today. Some has to do with oil. We know. Weve been watching them wobble and mostly go down in the last two weeks or so here in italy. Back to you. Connell 6 here. Were all kind of in the same boat in terms of markets. Thank you, amy kellogg reporting from florence, italy. Before people Start Talking about doing things like that here, seems like the talk is about economic stimulus, a political movement, that might help calm things down a little bit. Help out workers or people hurt by the virus. People cant get to work, or work from home, whatever the case may an. Larry kudlow talked about it. Other Administration Officials talked about it, to get it done i would think you would need support on capitol hill where Edward Lawrence is today. What is the latest, edward . Reporter you need support from people inside of this building to make it happen here. Congress will likely from what im hearing will have something together in couple months to handle the Economic Impact of the coronavirus, some sort of a stimulus Going Forward. Both House Speaker nancy pelosi and Senate Minority leader Chuck Schumer say they will work with the administration on some kind of a package but in a statement they said this, quote, in light of reports that the Trump Administration is considering new tax cuts for major corporations impacted by the coronavirus, were demanding the administration prioritize the health and safety of American Workers and their families over corporate interests. The House Speaker wants to see paid sick leave guaranteed for all workers impacted by coronavirus. She wants to see enhanced unemployment insurance. She wants workers reimbursed for noncovered Coronavirus Health expenses among other wants. On the stock market pelosi blames the administration. What we know about the dow is that they want certainty. They want to have confidence that there is a plan and i think that what is happening there is a reflection of the lack of confidence. So we would hope that what is coming out of the white house will be more consistent with what the Health Advisors are putting forth. Reporter senior Administration Officials say the white house is looking at paid sick leave but nothing has been decided yet. Congress approved the 8. 3 billion last week for the virus vaccine and containment but not the economy as fed chairman jay powell said last month, to head off another downturn may be that fiscal policy and Monetary Policy will have to work sort of together in tandem, well the monetary side, fed cut, 50 basis points they did their thing last week, remains to be seen what kind of fiscal stimulus will come forward and when that will come forward. Connell . Connell Edward Lawrence on capitol hill for us today. Sometimes you learn lessons going through similar things in the past. President trump is defending his decision to stop travel to and from parts of world which he did early on. Talking about with amy kellogg what the next move might be from the federal government response, the hill correspondent reed wilson about the Ebola Outbreak and affected politics in africa. Any crisis is different from another, are there political lessons to learn what countries went through then, what might be already here or on our way now . Well, sure. If you rather the summer of 2014 was really scary time here in the u. S. Not only was there the threat of this ebola virus, a couple of American Workers had gotten sick in west africa, in liberia but also this group called isis was rampaging across iraq for the first time, taking over entire cities. One of the things we learned back then the American Public is smart and they are able to do things to take steps to care for themselves and do the soar of social distancing that a lot of epidemiologist abouts are recommending but they need communication, they need advice from the top. They need to hear from the president , from his top medical advisors just what you can do to actually make yourself safe. That includes staying away from people who are sick. Staying home yourself if you are sick, washing your hands. Basic things we would teach a toddler. We have to be reminded of it from time to time. That is the real lesson here. We need communication from senior officials in the federal government, state government, local governments. That is a lot of what youre seeing right now, state Health Departments taking the lead. Advising their residents how to protect themselves and of the lessons we learned from past outbreaks. Connell taking the lead as opposed to the federal government not, as what youre saying here . Were not getting enough of a direct message from President Trump and his administration, what we should be doing, how serious it is as opposed to what were hearing on the state and local level . A lot of sources i talk to for the book on ebola i have been in touch with past couple days. Theyre expressing a lot of frustration, not same level of communication not just coming from the president and his administration but centers for Disease Control and prevention. Weve seen dr. Anthony fauci, one of the most wellrespected people, career government officials here in wash tone be a lot more out front about his concerns that this thing is becoming a pandemic across the world. We need to hear more from officials all over the place. It is good to trust and listen to the local Health Departments. Theyre the experts. Connell it can be important, right . Maybe more so than some of the facts. Things can both be true. If tony fauci comes out over the effect what is happening in italy, yeah that is on the table. We could impose Something Like that, depending how it goes in an american city. The president comes out to tweet about how serious the flu was compared to this. Both maybe saying something that is true, how many people die from the flu but the tone and tenor how it applies to the situation is much different, how people might take night yeah, it is and weve seen Washington State governor jay inslee talk about possible mandatory steps to promote social, social division,. Connell distancing. Social distancing. The United States is not china. Were not able to do the sort of crackdown that china has. I think that is a good thing. Connell right. But at the end of the day the American People are smart. If theyre told how to protect themselves, how to protect their fellow americans they will take that advice and that is advice we ought to be giving. Connell telecomb muting, taking a break and certain areas we see in coming days well see. Reed wilson a lot of experience dealing with this kind of thing in different contexts. Thanks for joining us. Get to the financial side of it. We looked at Mortgage Rates with the drop in treasury bonds. Mortgage rates at record lows. There it is at 30 year. They have been falling and falling and falling. The drop has really been historic. National Housing Conference ceo is with us now. That is what some people is saying. There is your bright spot, it is making more and more sense for more and more people to refinance . No question. Its a, thanks for having me, connell. It is really unusual market for interest rates. The easiest way for people to benefit from it, look whether or not they can refinance and for people who have refinanced fairly recently, they really also might look take whether or not they move from 30year fixedrate mortgage down to 20 or even a 15. For a couple hundred dollars extra a month you can often save tens of thousands of dollars of interests over the life of your loan, and pay it off a lot faster. Which is good for everybodys finances. Connell on question of timing, have you seen anything like this, maybe not quite like it, similar situation, maybe i wait it out, it will drop more . What do you tell people going through that . No one has ever seen anything like this. Connell i know. So i think if youre, waiting for the bottom, maybe a couple of basis points, you might miss it by. Connell that is okay because youre doing much better than you were. Were in historic territory. If you can say, even 50 basis points, half a percent on your mortgage, you want to take a look at it. Everybodys situation is unique. It makes a lot of sense. It is also important to think about, if youre not a homeowner now, this is a great time for firsttime home buyers. A lot of people misunderstand and they think i oh, i need 20 down but it is really not true. You can put as little as 3 1 2 down. It is thedown payment that is the big barrier for a lot of folks. Connell yes. If you can put that money together, you can actually do better off than renting in many markets. In nashville connell dont you think, buying of new homes . Refinance something one thing. People already own their home. That is logical move, boy i can safer myself a few bucks. I better take advantage but buying a home is a whole different situation. Consumer behavior takes into that. If were economic slow down, people going out less, traveling less, continue to spend less on other items how will that affect buying of new homes, know matter what the rates are . If you have spend more time in a new home you might as well own it. Connell thats true. It still remains the best way for people to acquire wealth, to build wealth. P it is an investment in your future. Youre paying yourself, when you pay mortgage, youre paying interest to the bank but youre paying equity to yourself. It is important for people to think about that. Weve seen millenials very slow to the home buying market but they are getting their, because they formed families later. So now that theyre doing that, we really want to encourage them to go out there, to think about this as an option. Again, for their parents or people who already own a home, think about, can i shorten my term. Connell yes. Can i lower my rate . It is money in your pocket. We do want to be careful though, that youre not getting into a situation where youre coming out of a good mortgage, going into a bad one. So you want to make sure really looking at a fixedrate mortgage, traditional mortgage by fannie mae or freddie mac or fha most banks and lenders carry. Connell talk about Lessons Learned. That is from the last time around. David, we appreciate it, good perspective own all of this. We got a lot of commentary on of the oil price decline. It is back above 34. Steepest drop since 1991. Russia, saudi arabia going back on price. Hudson seen Institute Senior Research Fellow joins us on that. You look at politics, rebecca, right . What is going through the minds of russians and what are they trying to accomplish . Well the saudis had pushed the russians to cooperate with them, trying to stablize the market, understanding that you have obviously the coronavirus is causing effect on the entire economy and the russians didnt want to do it. The russians want to be seen as a global power broker. They dont want to take direction from the saudis. They said no. The saudis and russians in the price war. The saudis determined perhaps what theyre doing right now might cause the russians to regret and play ball better. And the United States, the russians are trying to harm the american shale industry which is why they didnt want to go along with what the saudis are doing. Connell right. The harm to the american shale industry is the lower price. The shale drillers as we point out many times can only make money at a higher price. Whether that price is 45 or 50 or 55. Different people have different opinions on that. But the point is, it is not 30, right or not 33. Thats right. Connell rush is a says, i said this earlier you can maybe shoot this down, that it is nonsense, russia says for next to six to 10 years we can live with it if oil is at 25 or 30. We can withstand this in other words. How much pain can russia withstand do you think . That is what were going to find out. Connell yeah. I think that the russians have overplayed their hand. This is something that the russians tend to do with some frequency. So you know, one of the big Lessons Learned here we want the United States to become more Energy Independent. The russians are upset, the Trump Administration, part of their policy towards russia, towards the world help Eastern European Central Companies to be less dependent on russian oil. They weaponize it for political gain. If you dont support american Energy Independence, shale industry, natural gas, you are supporting russian e powerment. I think they have overextended their hand. My hope geopolitically this drive as wedge between the saudis and russians. That would be a Silver Lining in all of this for the United States. Connell you dont want to see them come out in cahoots, the fact they dont like each other and the wedge stays. Good points all around as always. Thank you, rebecca heinrich. Thank you. Connell another person who knows a lot about the oil industry, liz peek with us to talk about the markets. Were down by the way, good to see you, liz, 1600 on the dow. Another good day. Connell can we just continue this, if you dont mind . Sure. Connell i know you watched for years as an analyst, this industry, what is going on in oil today, russia, saudi arabia. How many times have we seen the saudis do this . They basically instigate a price war to protect their position in the industry. The difference the United States is really vulnerable because we have this Huge Industry dependent on gas and oil produced at somewhat higher rates. You mentioned earlier, the cost of when shale is okay. Connell yeah. Certainly isnt 70 anymore. The industry constantly brought the price down. My guess 40 to 45, not 32. Connell not 32. This is a serious problem. By the way it is true that oil for russia is geopolitical weapon. It is also a huge part of their economy and their Government Spending is completely dependent on oil prices there is a limit to what they can do, for how long. I obviously disagree with their finance minister saying this can go on for years. They have social programs they have committed to in order to squash protests and unhappiness in russia from time to time. Oil is absolutely essential to meeting those businesses. Social security, retirement benefits, they need Higher Oil Prices too. Connell in our own domestic so Everyone Wants to know what trump and congress is going to do about the virus. What about on this front. Is there anything that can be done to get into the mix between them. If we put a floor under oil or gas prices, democrats will go completely insane so that wont happen. I think we have to count on this being a a shortterm problem. We should have some clout with saudi arabia and be able to negotiate with them. If this is not good to our country lets talk about changing course. If there. [inaudible] i think that informs our change in middle east policy. I think every subject today relates to each other which makes it fascinating to talk about. The politics, jeff locke was reporting on the primary today. You have Bernie Sanders, socialist on one side, complete revolution, joe bidens been around forever on the other side and seems to be searching and then the third one is the sitting president. We are dealing with this virus. Their approaches will be so different and i dont like all the comparisons to oh eight that people make, but there is a political comparison maybe, if you remember the way the race was decided was in the perception of how barack obama versus john mccain dealt with the financial crisis. John mccain appeared to panic and can bac came back to washington to deal with it and people really scorned him for that. I think the president is managing reasonably well. I think the policies in place are reasonably okay. There is no question the media is making the worst possible case of this. You have not seen for example a single story about i survived the coronavirus, i had it, i was diagnosed and im fine. Where are those people . P5 i saw one guy on tv doing that last week and it did strike me because i havent seen as many people talk about it. You see one guy go through self quarantine and say i never had it and they say most people who get it are survivors of it. When you talk to young people hoarding toilet people paper, six months from now they will wonder what to do with all that toilet paper. I think this is an incredible overreaction. Part of it is media driven. People are panicky because we dont know the extent. It appears to have peaked in china and south korea. What it suggests is theres a couple months of this thing taking hold and expanding geographically within a country and then it begins to wane. If the public can look at that i think people would be a lot more reassured. Connell if the Public Health Officials Say the way to contain or mitigate this is to shut things down for lack of a better term and thats happening in italy and china, its a little bit of a different ballgame in the United States. What is the balance if thats what they decide to do between doing something aggressive like that and handling the announcement of it in an aggressive but confident way that will make people feel that its better sooner. I think there are people at risk. People with compromised immune systems. Those are the only people at risk. Its not just that they are, its that they are the only people who are. If youre 50 years old and you want to go on a trip, go on your trip. If youre 40 and you want to go to a convention, go to a convention. The more that the private sector can get out there, i was just speaking with someone who said we should have had of American Airlines out there personally shaking hands with passengers, cleaning the planes, whatever it takes. Lets get out there in terms of telling people what the risks really are, who is it with, and otherwise encouraging people to go on about their lives. The more things that are shut down, the more people think this is really scary. Connell let me move on as we passed the top of the hour. A little perspective goes a long way on a day like this. Welcome everybody, thanks for joining us. We are going to reset things in terms of the market after the 1 00 oclock hour. Im connell filling in for neil. The dow was less than 200 points from dipping into what we describe as bear market territory. It wouldve pulled back 20 from a recent high. It came pretty close to that. After being down 2000 points, it sounds funny but it calm down and came off the lows. Oil crashed. The oil price crashed overnight and went down a ton in russia and then it to came back at least a little bit but were still way down at 33 bucks for oil. Speaking of going down the treasury yield was at. 3 on a ten year. Its come back up to at least half a percent. 0. 5 to three. Thats the market that we are dealing with right now. Were down almost 1600 on the dow. Lets see what the last few minutes of trade has to do because then all the Circuit Breakers and the rest go away. Scott bauer joins us, what do you see today. Its a sea of red, but let me tell you at least down on the Trading Floor its actually very calm which is very calming to me and should be calming to many Retail Investors to at least understand that yes, the markets are, whether you want to call it a free fall or a big drop, however they are working the way they should be. Markets are working efficiently, and theres enough concern out there for other things. The coronavirus, other things. People should at least take comfort that the Financial System is working the way it should be. That being said, theres probably more pain ahead. But that pain ahead doesnt mean it has to be fraught was panic driven whatsoever. Connell the fact that someone could say tomorrows the bottom or in 60 days this will be a different story, you know they may be right but theres no real metric to used to figure that out. Nobody has it at least. And thats the best point. That there really is no metric, and to say earlier today we were down almost 20 from the peak putting us in that bear market territory, i would look at that and say by the rule of the definition yes. However this is a very, very different scenario. Weve never met a situation like this where there is so much at once that is causing the markets go down while the underlying economics of the marketplace are still actually pretty strong. The speed has been remarkable which we will talk a little bit about the sour. Scott bauer is with us. I want to get back to the American Energy here and whether or not it can shield us from the impact of this Oil Price War back and forth between russia and saudi arabia and what does that do to west texas and north dakota, the American Petroleum institute Vice President , frank joins us on that. Its good to see you. How worried are you about the energy today. Thanks for having me on. First off, its important to remember we are in the midst of a health crisis. Our thoughts are with those directly impacted by the coronavirus, and with the medical professionals and Health Experts who are helping to mitigate this virus. But, its obviously had an impact on demand for oil and gas globally. Oil is a global commodity, and so demand, the product has been impacted, but its important to note that the u. S. , over the past ten years, because of the shale revolution, has had a dramatic increase in production and has strengthened our standing globally and so you can respond better to these types. The numbers are crazy, 4 million to 13, you know better than i but Something Like that in terms of american oil production. I think everybody agrees that it makes us more Energy Independent and also stronger and better able to respond, but, as those prices on the board show, especially with the shale company, those of the companies were worried about especially those who have may be borrowed too much money. Thirtythreedollar oil is not an ideal scenario. Theres no question in the short term both from a demand perspective and a supply perspective, that there, its a difficult time and challenges persist in the markets. But, over the long term, the world is going to require more and more oil and natural gas to be able to lift people standard of living, to be able to drive Economic Growth. Remember, the oil industry is really the driver of Economic Growth in this country and globally. What should we expect an intermediate terms in terms of bankruptcy. Thats a word thats been thrown around, job losses and, what should we expect in the next few months on those fronts, in terms of people going through a painful time. Theres no question there are challenges that lie ahead for the industry. However, this is an industry that has bounced back time and time again. Doesnt need the government to do that now. Historically it hasnt. Its an industry of innovation. Its an industry of entrepreneurs, its an industry that has made technological advances, youve seen over the past decade the results of the technological advance of hydraulic and horizontal drilling which has made the u. S. The leader in oil and Gas Production, and really, as a result of that, that has helped mitigate. Your not calling for an all auto style bailout. Youre not calling for that no were not calling for any Government Intervention at this time in respect to the oil and gas industry. Thank you. Tough day for people in the industry. We appreciate your candor and coming on with us today. Thank you very much for having me. All right. A tennis championship among the latest events to be canceled because of the virus. Gc has the latest on the gatherings impacted and how it will affect certain industries. Its good to see you. The number of cancellations on the list keeps going up. There were a lot of upset tennis fans today learning that the bnp open, an annual event had to be called off. By far this is the Largest Sporting event that has been impacted thus far. You also have cities and counties, municipalities all over the country feeling the pinch, counselor countless conventions, corporate meetings have been called off. In houston, a major oil and gas conference was canceled which is expected to draw about 6000 people to the city, but perhaps one of the biggest blow, the famed sxsw music and Film Festival down in austin was canceled. First time in its history. The event draws almost 420,000 people over a three week period. The festival organizers and officials were reluctant to canceled the first place, but in the end it felt like they had no choice. It does attract visitors from all over the world. Connell sorry about that we had some sound with officials down in austin saying this is essentially like preparing for a hurricane and they are trying to stay ahead of it. That was one of the factors given for canceling that contest. Obviously, this is going to translate into millions and millions and millions of dollars lost. The local economies impacted very hard by this. We are talking benders, hotels, restaurants, a lot of Hospitality Industry taking a huge hit with the cancellation of these events. More is being added to the list every day. Hopefully some of that comes back. Thank you. The major averages on wall street have been down. We were down 2000 plus points on the dow. Yes we are off the lows but we are starting to fade again 6. 5 lower as we bring our panel into discuss. David dietz is with us along with charlie and susan lee on wall street. We will work our way into the studio and the perspective there from the corner, what would you say. I would say it has improved from the opening minutes of the trading session where we had that surge of breaking kick in. I would say oil is front and center today and not coronavirus, although i would say some of the fiscal policies in the white house to ingesinject cash into small businesses, tax deferments and possibly even paid sick leave. The opening Circuit Breaker have a lot of traders confused. I crossed a few of them as i was coming here and they said actually not all of the stocks opened and thats why they were a bit frustrated to not be able to trade them but the afternoon session is heading into a close with a more positive feel with talk of more fiscal policies. Connell we were down 6 in a minute. You knew it was coming. Yesterday the minute that opec announced a price war or backandforth, they said tomorrow we will crash. I will say this, when i hear people say go out and go to the same conference, hang out, fly around the world, dont be worried, lets be clear here, people have different views. Listen to doctor pouch. Doctor fauci has said, my brother knows him, hes very measured, hes not an alarmist, he is telling people to take precautions. So he is telling people to partake precautions, this could be really bad. It may not be really bad but it could be. To keep it from being really bad you need to take precautions. Absolutely. But there will be an Economic Impact and that is being shown in the markets, and by the way, you have to ask yourself, the markets were already pretty frothy. I read his book on finance about 20 years ago. When markets take a turn. Dont worry about charlies reading habits. Susan i suggest you read it because when the markets turn, guess what happens. You dont want to stand in front of it. Connell today is march 909 which was the bottom, march 9, 2020. On february 12 the dow was at 29551. Thats just how fast these things are moving. So the speed of the decline is noteworthy. That double digit decline last week, im not sure what that tells you but it does underscore what charlie talked about but an Unemployment Rate of a 50 year low, you cant judge these without also looking at the interest rate. They started very low and that justifies, we do have a better environment than i think we had six years ago. You think the underlying economy gives us a cushion to weather the storm. Of course. I agree people need to dart using soap and wash her hands and buckle up your seatbelt because more people will die on the nations highway. But the whole thing is, we dont know. I spent the weekend reading everything i can from michaels piece in the post this morning in the journal, people all over the place on this. I know it sounds like people die of heart attacks in this, but im telling you, nobody knows. In the face of nobody knows, you better play defense. By the way the dumbest thing you have heard people say is not going to cash in this market. Not all cost cash, be nimble. This thing can go further and you could have a lot of money to buy some stock. Many knew nothing about what viruses were on january 1. I studied all the healthcare scares and it does come back. Thats the key point. Youre right, we did that to at some of the facts. I guess the question is susan, whether this loss longer than those. Its the seed of the selloff. Its probably the most concerning because right now the fastest ever exit from a bull market was in 192942 days and if we cross through an breakthrough 20 from recent highs this would be the fastest exit in history. They did not have electronic trading back then. The markets are, in a sense, very fast, very efficient. Theyre saying stocks. [inaudible] the faster you get, the less thinking is involved. For every headline out there theres an equally. What you pay at the palm is what you pay for your mortgage. There are winners here. The mortgage one 100 . I think everybody agrees. On the gas price question its the question is whether or not there out using your car or some of these oil prices wrong there lower its because the markets trading at lower because they think their pricing in an economic slowdown in the gdp, remember, we had 3. 5 unemployment. We really didnt get much above 2 gdp growth. We had a trade war that was going on, you knew the market was frothy and heres where you knew it. Let me finish this. We knew it was costly when everybody was celebrating the phase one of that crummy trade deal. Lets make a final point before we move on. I was talking about job creation. Frodecember december use jabs being added to the economy which is higher than last year. [inaudible] by the way, remember past booms come up 5 for growth, the reagan recovery, we had a trade war down gdp. That is going to impact gdp Going Forward as well. Theres a lot of things we can look at and no one really knows whats can happen tomorrow or the rest of the week. But when mike clients are saying should i go to cash, im not saying all cash. Okay, got one half of 1 , ten year treasury for the next ten years or the dividend yield is now two and a half. Historically thats inched up. Where are you going to be ten years from now. But you can be apple by apple cheaper or netflix or tesla. Im just saying if you have a little cash cushion, you can be pretty aggressive. Im distracted by the fact that they canceled every st. Patricks day parade in ireland. [laughter] half of italy is shut down. We read a lot of weird stuff. The last point. I think we should reiterate, this time is different, but going into this companies were still making money, we saw earnings grow 4 instead of falling. The economy is doing great, we have people finding jobs so this is still a little more cushion. You do realize the markets priced in the future, not with whats going on now. The point is. I understand how markets work. We havent even seen. [inaudible] their pricing in that gdp will go down. But let me say it doesnt always have all the answers. Thats another good point. Connell thank you all of you. Susan we will talk to you later from wall street. [inaudible] a little bit of levity. 1700 on the dow. Will keep on top of this market decline. Six and half right now. We also have a lot of politics. Six states tomorrow and michigans the big one. If you add up all the states at Something Like 352 delegates. Anyway, deirdre has the latest on this. Heres the count as we stand right now in this faceoff between the former vp and senator sanders. Tomorrow you mentioned the sixth state contest michigan, idaho missouri, north dakota and washington senator sanders narrowly beat Hillary Clinton and then in the general election he beat him by the narrowest of margin, point to 3 . Theyve had a really tough time of the coronavirus and some people saying that may keep people at home. Spinning forward, next tuesday, another 577 delegates. Florida, illinois, oh florida super important as we know. So many president ial races have come down to the wire in that state. Purple state, sometimes just gets people all those surprises as we saw last election as well. A candidate needs those to get that delegate. All the numbers shes been following very closely. Then we have this. Hillary clinton may not have given her endorsement to her partys nomination but still doesnt mean shes not weighing in on who she thanks is the best bet for the worst bet. If Bernie Sanders is the nominee will you campaign for him. I will support the nominee. But would you campaign for him. I dont know if he would ask me. I have no idea what he is thinking about for a general Election Campaign as ive said many times, i do not think he is our strongest nominee against donald trump. Former deputy chief of staff, i dont think bernie is coming calling for Hillary Clinton on the campaign trail. What you think. I dont think so and i dont think shes expecting a call from him. I thought that was the best non endorsement nonendorsement ive ever seen. Shes supporting anybody but bernie. What do you think of this race . Lets start with michigan and work our way through the economy with the virus and how that all impacts. In 2020, i know hes going around telling everybody, i think if i remember right he did surprise people the last few days but biden seems to be the favorite. Whats changed. I think a couple things. Joe biden is not Hillary Clinton. Hillary clinton was a very bad candidate and there were a lot of people who just were for anybody but hillary. Biden, while there is a certain goofiness about him and he has difficulty screening together couple coherent sentences is nonetheless the more traditional democrat and a lot of people who said i cant stomach bill and Hillary Clinton and i want an alternative, im voting for Bernie Sanders, today they worked up and realize bernie is way out of the mainstream of traditional democrats and joe is not. I think its going to be an uphill climb. Weve got two sets of primaries on tuesday. We have what i call the wind contest, washington, idaho and north dakota, those are states that bernie did wellin last time around i think you will do better in those this time around. But then you have the 3ms, mississippi, missouri and michigan and in those, you have more traditional democrats, a lot less young people, a lot more traditional moderate even in some cases conservative democrats, and very large black populations which have been very hospitable to biden and not so hospitable to bernie. And all these races we have issues that have come up, sometimes characterized by 3 00 a. M. Phone call or the oh eight financial crisis which mccain and barack obama had to deal with. Now were in the midst of this virus. When we went through the first round, nobody was really talking about it here in the United States. It was seen as something over there. Even through super tuesday but now its front and center. How does that impact the race. It does give a potential for a candidate if theyre in a position to make something happen. The reason it worked well, lets look back at the tape. He said this is a crisis, im leaving the campaign trail and return to washington im not gonna go back on the campaign trail until we get this problem solved. He had no solution. Obama followed him off the campaign trail, got the democrats in a room, knocked their heads and said we need to support this and find some face saving changes. This time around this means that somebody, if youre going to take advantage of this politically you have to have a constructive solution to the problem that youre able to advance and i think thats a heck of a lot different when youre dealing with a pandemic or the possibility of a pandemic than when youre dealing with the economic collapse. What if President Trump comes out and says heres what really do about the crisis and some sort of stimulus or the virus and he proposes that and says well, id like to get support from the democrats running for president for that plan which in normal times many of them probably wouldnt support because economic stimulus, especially if its more money being spent would be right up their alley. How should they handle it. The democrats will probably one up them and recognize if he makes the first offer they will say will go for that but weve already seen it. Pelosi is in discussion with paid family leave, support for individuals, they are going to raise all the number on that. If he says he wants to spend x, he wanted to spend two and half billion dollars on response and they said they want to spend eight. His advantage in the case though is that he can say im doing what redfield ahead of the cdc and doctor fauci and the Surgeon General tells me to it do. Im listening to the experts and heres what theyre telling me so thats his best position. Youll notice the administration is increasingly stepping back a little bit and pushing forward the experts. Its mike pence standing behind them as they explain the situation. Thats exactly th the way it ought to be when were dealing with a Public Health crisis. Him doing the sunday show was a clear indication of that i would think, but you just think politically theres a time when it doesnt necessarily make sense, just from a purely political standpoint to have a reflex to be against every single thing the president says. Especially if either one of these candidates can reject that reflex so to speak. Im confident they wont be put in the position of 2008. The president says were gonna do x, particularly if theres a attached to it, theyre gonna say we need to do more. They famously said dont let a crisis go to waste. They wouldnt let this go to waste. They will get things that might not have a very significant outcome on the crisis but in social policy they might like to have longterm. Now other headlines growing signs of l revolution, amazon is launching a business to sell automated checkout to retailers. Christina is back. Theres other news and amazon is capitalizing on the trend in retail. They have a technology called just walk out. You walk in, you scan your app, you pick an item offtheshelf and then you casually walked out of the store. Theres our fdi technology, cameras on the ceiling. The difference with this type of technology is that you would just scan your credit card, not the amazon app and you would walk in. Amazon says they can install it in just a few weeks. This shows how we are changing. We are going to need fewer and fewer cashiers across the country, and just last month, amazon launched their own supermarket so this technology is called just walk out. Another big story in the mergers and acquisition is the Insurance Broker that agreed to acquire their rival lewis powered watson for 30 billion. Deal because they do not want to be burdened down by any further debt. Interesting to do it on a day like today given the volatility in the market. This new company will be called aion headquartered in london, the worlds biggest brokerage firm. They want to consolidate and expand geographically as well as provide better Product Offering because we have more cybersecurity or Climate Change issues and intellectual property and they want to be able to provide better products. Other stories from the Stock Exchange aside from the market. Back to. I guess there always are. Back to one of our big stories, that would be the plunge in the price of oil with this price war that said to be going on between russia and saudi arabia. Thirtythree dollars. Barrel. Will bring in someone who knows a lot about oil. This is my one contribution to the show today. Melissa joins us. I cover oil markets for a long time. I went to more meetings than i can count and yesterday when saudi arabia said we are going to the mattresses, i didnt even have to look at my phone to hear about it. People were talking about it around new york. Its a really big deal that they are going to take on russia after russia didnt want to cooperate to try to support the price of oil. That said, this is what they have always done in the sense that they tried to support the price of oil on the way down, they try to provide a little easing on the way up even though they love the higher prices but they know it kills off demand so in this case theyre saying lets keep our head about ourselves. I think the russians, for their part were signaling no we want to stick it to the american shale industry and drive them out of business. We also dont want to sit here and let you control the market. Were going to do this. You look at the implication of who this hurts its interesting. It hurts maduro and venezuela and his very fragile hold on power. It hurts iran, helps china as we see their freefall in oil because they tend to stockpile when the price falls. They will buy it and hang onto it so will help them in their recovery. Thats one interesting implication. A lot of people were asking today online, why is it bad if the price of oil falls but the problem is, you drive people out of business and the credit markets are seizing. That was the concern i heard overnight was this idea that this unexpected plunge in oil, we set up for recession and what does this mean, you drive a lot of companies out of business. Too that end i would say we have the right people in washington who understand a target attack. Were not talking about a fire hose full of money or congress, were talking about providing support in strategic ways to companies that are maybe having credit problems or industries that will have credit problems. A lot of those companies, i was saying earlier the last time i was there was august of 2018 and the whole story we did was this huge boom but when its booming its really something to watch. The problem is i guess a lot of those companies borrowed a lot of money to try to make a lot which they been doing so is the suggestion now that you help out on that front. Right the problem is they structure their entire plan. Point a is what i think the price of oils going to be and they put in a relatively conservative estimate and they structure all their plans and finance and lease on equipment around that price. When you look at the price go from what we thought it was good to be like 60 something to now falling to 30 and then last night a lot of people asking where is the bottom, are we seeing 20 in 2020, how long do we see that, that upsets, almost instantly, a lot of finances for a lot of these people. Again i would say, russia is doing a lot of this that catches the attention of washington. They will want to help and tried to hold these, also for security reasons. You and i have talked about this. One of the reasons we arent so vulnerable in the middle east, why we dont have to get involved in some of these things is because weve been Energy Independent. We will not let a price war between saudi arabia and russia cripple our our oil industry where were no longer economically or energy secure. If you ask the shale guys, the obvious question comes up, theres been criticism of what you do because of the damage it may or may not do to the environment. They will also pivot to that and say listen, the more oil we make here, the safer the entire country is, and theres a lot of truth to that. There is truth to that and also we know the president believes that so hes going to dispatch his people to support that idea. Whether you buy it or not, you do know that the president will want to support fracking because hes talked about it so much so i dont think those folks, as much as yes, definitely credit is getting tighter and if youre a regular person, refi your mortgage. Take advantage of what you can but as we worry about what is for sure a slowdown and you dont want it to be a recession, know that the people with their fingers on relief in washington are people that we in the financial industry know well. Larry kudlow was my coanchor for a long time. The only one, youre obviously better, but hes all about progrowth economics. He does have the president year. There claiming we can stand this for six. Everybodys lying about that. Theyre all, rush is dependent on the revenue. Saudi arabia, ive seen reports where they think saudi arabia cant hold out as long as russia, i disagree with that. Maybe the politics are dicier because you have new leadership in saudi arabia and thats a complicating factor but they definitely have more money in the bank than russia but if you look at all the players, its interesting because this will help china in the recovery. Dont forget that. They will stockpile oil and it will help them in the rebound. Connell you start preparing for our shore. I will. At least somebody will be ready. Down 7 on the dow. Lets get to grady and the cdc trying to put the coronavirus into context, putting out new numbers in comparison with the flu. What have you been finding. The ideal here is that the flu is much more widespread than coronavirus and the president actually made that point in a tweet. I want to show you that. His has the last year 37000 americans died from the common flu. It averages between 27,070,000. Year. Nothing is shut down. Life and the economy go on. At this moment there are 546 confirmed cases of coronavirus with 22 deaths. Think about that. The president has a point. Worldwide, lets break down the numbers. In terms of the number of deaths from coronavirus, that stands out about 34000 right now. This is my next point, the mortality rate is much higher for coronavirus compared to the common flu. Thats part of the reason people are so concerned, but up to 650,000 people around the world can get the flu in any given year. The number of cases is drastically higher for the flu, but again, this data that youre seeing on your screen, the mentality rate is whats causing a lot of concern. Another can think causing concern which we already know is that there is no vaccine and no treatments for the coronavirus. So thats part of the reason the stock market is going so far down today because people are canceling trips as a result and businesses are encouraging people to work from home. We dont necessarily see that with the common flu. There is this difference between the two, even though the flu causes a lot more deaths each year and a lot more people get the flu each year. Is important but all the numbers as you did in perspective. Thank you. Let me just get one other headline on the air from the state of florida that just came out because its interesting we been looking at how different states and municipalities are dealing with the virus. Florida has just said through its Health Officials that they are now advising any individuals whos been on a trip outside the country to self isolate for 14 days. Any individual who has traveled to any country other than the u. S. And come back to florida, Health Officials and the state are saying self isolate. Better safe than sorry and do it for 14 days. They just put that statement and by the way were down more than 7 on the dow. 1800 points. Missouri republican congressman joins us now. Legislation targets health and National Security concerns over the influence china has on drugmakers which is another big part of this on how reliant we become on china and so many areas. Tell us what youre trying to d do. Its really concerning that most of our medicines in our antibodies that are military use come from china. In fact the coronavirus outbreak has certainly exposed vulnerabilities for our entire nation. 90 of the prescription drugs in our country are generics and over 80 of the pharmaceutical components that make up those drugs coming from china. We need to stand up and make our prescription drugs and our supplies. We have those basic supplies coming from china. In my legislation that im cosponsoring with another member from the Armed Services committee would require the department of defense to look at the palmer abilities and assess the threats for military by depending on china for these medicines for our troops. And use this to provide this very important pharmaceutical product. So what has changed. Have you thought about how it changes on the price under the defense production at the government has the ability to stand up and provide incentives to american businesses in order to meet a real threat or vulnerability. Currently part of that are being used as it relates to our vulnerability to china with Rare Earth Minerals being the main provider. It would incentives to American Companies to enable them to start standing up and producing one 100 of our medicines in our vaccines and antibiotics. America that our men and women in uniform use. Is that temporary or permanent protectionist measure. Is it temporary or permanent. I think we can assess it as we go on but i would hope it would be permanent. I dont ever want to be dependent on china. In the Armed Services committee we look at the threats coming from china and we certainly hope we never enter conflict with them, but if we were to be in a conflict , we dont want them to stop shipping their medicines or vaccines to us were potentially put in different ingredients or worse, ingredients that could harm our soldiers. I think this is something, this transition that the American Pharmaceutical Companies have made to getting most of their basic ingredients from china thats occurred under the wire and we didnt realize till recently how vulnerable we are and thats why were taking action. A lot of people are thinking about this issue more broadly, how reliant we are on china for so many different things. Thank you for explaining that. Keep us uptodate on how this works of the congress. Absolutely. To Charles Payne as he gets set for making money at the top of the hour which is gonna be a tough thing to do and has been for a lot of people. Charles, its interesting, the Circuit Breaker seemed to calm people down a little bit and now here we are down 7 on the dow. The script seems very familiar, even without the Circuit Breaker comedy sessions where we start off really, where they find some sort of footing, and then a rally attempt that fizzles. After that attempt fizzles we slowly start to go back down and then the snowball becomes the proverbial boulder. The only potential difference in the last hour potentially could be some folks may be trying to get ahead of some things that can happen overnight. We know without a doubt theres going to be some type of intervention. 100 . Good point. The president comes back right before the market closes basically so i dont know that will get any headline out of the white house before todays close but probably before tomorrows open. Some folks may want to get ahead of that. Obviously theres certain stocks that look extremely oversold. It was intriguing, the last two fridays were intriguing because we had these rallies into the close which have been counter anything else that happened since early february when this virus eventually reared its ugly head. It is an intriguing day. We had a pretty solid bounce off the bottom, but not enough. Not enough to reduce those piles of money off the sideline. I think that doesnt happen until theres a greater sense of court needed effort. And then signs come of the signs were seen from china, south korea that maybe theres a handle on it, maybe that the worst is behind it or at least out theres a handle on this. We really look to italy and europe and here in america has these test kits get out and think we should all be braced for higher numbers, but thats higher confirmed cases not necessarily case growth. Connell youre right. We should be shocked by it, we should be prepared for it. All right. Down 7 , we will see you in 15 minutes. We are on pace for the biggest oneday decline since december 08. Our next guest talking about that. He was in charge during the crisis of oh eight and his Economic Advisor to Obamas Administration after that. Robert wolf joins us in studio. Boy, we are fading back toward the low. I dont know what that will tell us. Some people just tuning in, they say isnt there a Circuit Breaker, yes, we hit it, level 17 , level two on the s p 13 . What are your impressions for today. A couple things. First of all when larry kudlow said we should be buying the dip, i respectfully disagreed on here. I thought this was nothing like the lehman crisis. This was not about liquidity and leverage. I didnt think the senate was gonna make a real impact and i still dont think they make a real impact. To me this is all about confidence and stimulus. They have to really be, what i would say tactical on how they use stimulus. For example, we are in a predominantly Services Growth sector country. We have to really look at the services and see where can we be helpful. Were in a consumer driven country. So this whole idea of shared services will be of concern and how people are using commuting. How can the government, we were talking earlier but there has been some talk that there might be some targeted. [inaudible] obviously travel and leisure is another in trouble. There are three or four Different Industries we have to focus on. I think they did a great job given a synopsis of the oil industry. The one thing is were counting on saudi arabia and russia, to people i believe we really cant trust. Thats one. The whole Growth Energy of our industry was shale and fracking, both of those will be in trouble right now because right now they cant produce even at the price where oil is today. Number two they have huge debt on their books as melissa said. Its all project finance based. Those will have to be restructured. Its one of the reasons banks are getting hit today. Not only because of low rates and high interest margin but also they have been the largest lenders to energy. Connell do you think we should let them go. No i dont think we should let them go. Connell them gonna bring up a political point, the regions that are impacted by certain dislocations are important to how people view them, the Auto Industry in the industrial midwest, wall street and how its viewed since oh eight has drastically changed, in other words people look at the bailed out fat cats on wall street and i understand why people say that because that did happen in many cases where people didnt lose what other people lost in the financial crisis and that brings me to it oil in places like texas. So my view was i was for the economic bailout of wall street. By the way they did payback and number two i was for the auto bailout and i was for the farm bailout. That doesnt mean im for all bailouts. Theyre not all the same. This one is really important. Remember for exports. Our export is travel and leisure. Thats an export for us. We have to make sure that hotels, anything. Said we just give them money. No, i think we can change a bunch of things. We can change the structure of debt working with banks, we could change how we look at tax credits and depreciation, there are things we can do that will change how the Government Works with these industries. Number three we can give them loans. We can put them through their situation and say working to be helpful. Yes its taxpayer money but its also important that these loans are paid back. If you think about zero eight, those loans were paid back. The auto sector went down to 8 million auto sales, it also went back up to north of 16 million and it kept the whole supply chain. The reason im more nervous today and i think were probably going into recession is because china is slowing dramatically, italy is slowing dramatically, germanys slowing dramatically and we are slowing. How do you make sure that that recession is a mild one, not knowing as much as we dont know right now. Theres a lot of unknown in the whole idea of the virus, especially in terms of timeframe and how long it stays around four. So. Theres one theory that is to say, the confidence can be restored by saying we will be okay, well get through this and make comparisons that the president has done say to the flu. Theres another theory that says no you need to be tougher with people in the short term and say listen, weve got it shut down and stay further away from each other, we cant commute to work and yes it will be painful for weeks but not necessarily for months or longer. My opinion is two different things. This is not to disrespect President Trump but i think he should stay off twitter unless its related to the coronavirus and with respect to the coronavirus it should be based on what doctor fauci said. Its all about the tests and how many were doing. Yes there are a lot of loose. Im sorry melinda, lets get to blake at the white house because we been talking about this so you might as well tell us what youre hearing in terms of what might happen later today. Tell us about it. Later today and later in the week i was just told first off that wall street executives are expected to the white house on wednesday so two days from now to meet with President Trump. When i asked the guest list and how big this was would be, i was told the invites are still being extended. Bottom line, sometime within the next 48 hours. They are meeting with President Trump for a response of everything thats wednesday, i can also tell you in a few hours for now you will see President Trump boarding and landing at the white house two or three hours from now. After that, after he lands he will be having a meeting with the Vice President , the treasury secretary, larry kudlow, and likely others in which options will be presented to the president as for potential stimulus measures. Connell, as you know, larry kudlow came out and said this is indeed something we are looking at. The three teases what i am told. Timely, temporary, targeted would be what these measures could be. One of the measures could potentially be put before the president , paid leave meaning if you need to call out from work because of the coronavirus, making sure you are reimbursed. There are questions as to how on down the line that could potentially work, how many degrees of separation people could eventually get paid out if they choose to make a claim. Another thing we have reported on is whether or not there would be tax payments allowing tax payments to be deferred for those within the travel industry, airliners, cruise liners, et cetera. Bottom line, the present lands in the 3 00 oclock hour and then a meeting with the Economic Team in which options will be presented to him. I also stress, no timeline as to when the president could make a decision and accept some of these options or not accept any of them. Connell fair enough. That brings us after todays closing bell, thank you, just real quick lets bring liz in. Thoughts on what you are talking about, the wall street meeting and options being presented. I think the key is, what is the stimulus going to be, who is it targeted to, and all of a sudden the messaging on these community spreads. What we have for testing . That will be the key. I think once we instill some confidence, i think the markets go up and down. Making sure people feel confident that our commanderinchief is ready and up to the task and his people at nih and cdc are ready and we are ready to make sure this recovery that we need doesnt actually get impacted by whats going on around the globe. Thats my concern. Connell thanks for all the time. Right now liz rejoins us from the nyse. She will host a countdown in what will nope doubt be a busy 3 00 p. M. Hour. Were not far from those lows but what you think. We started to head back down and i think i said at the very top, maybe take a page or a cue from the european markets which very much close near or at those session lows. You saw what happened with germany, they all closed very close to session lows if not at the low down six, seven, 8 . I think you have to really hang on, i have had traders tell me watch out for the last halfhour. If there are going to be buyers they may very well come in then, but a lot of . Are still hanging over this head and that is pretty much what other shoes are there to drop . Were not necessarily talking about whether. [inaudible] the tenure low was up, that is never seen before territory but right now were well off that at. 5. I think its very much are we going to see some type of major fracture, whether its a bankruptcy thats announced, or this when im watching out for, when you start to see the Oil Companies say theyre cutting dividends because they need to preserve. A lot of people looking at the connell one more conversation for us than we pass over to Charles Payne. Whether this conversation can be chance for President Trump to deliver campaign promises. People talked about certain things. Gianno caldwell joins us along with fox news contributor, kat timpf. President trump brought up immigration promises he made, put it in context of closing boredders with china. Karl rove said democrats and rahm emanuel said well never waste a crisis, something to that effect. You wonner what the political moves are here. What do you think . I think this is time for leadership, President Trump put mike pence involved obviously a steady hand on this issue is quite good. There will be political ramifications closing the border, whether china or southern border with mexico, always these things said but here at home im very concerned, tell you why. During the last hour of cnns reporting they said over 601 confirmed cases, 22 deaths over 34 states. State of california where i am, there is 89 cases confirmed and one death. Number three to new york and Washington State which had i believe over 19 deaths. This is something that i think every american should be concerned about. I dont think people should go in fullscale panic. Im especially concerned because we have over 151,000 Homeless People here. For those who know how coronavirus is transferred, people dont clean their hand, wash their hand. These folks on the streets of los angeles california, who typically dont have the opportunity to wash their hands. There is concern of political standpoint and just human connell human standpoint. Really good point, gianno. Kat, president s approach to all this, president unlikely to attend the Task Force Briefing that is public this evening, 5 00, 5 30, Something Like that. Maybe he is stepping back a little bit. Not something he normally would do, allowing mike pence, the Vice President or, the health care professionals, dr. Tony fauci and others to take the lead, be the public face of the response. I wonder if that is whats the right approach . I certainly think that is the right approach to let the Health Experts deal with a health issue crisis. I think that i dont like anybody viewing this politically or having that conversation, even though i know of course it is but as a result we see people on the left not cheering necessarily for this to go wrong but they think first about oh, this is a crisis for trump, trump not doing a good job, they focus on that and same thing on the right, too exactly. And on the other side. On the other side we see people on the right doing the exact opposite of that is downplaying if there is no issue. Connell so true. There is really something that we should all be likeminded on. We should all be addressing the facts head on. Not pandemonium but also not completely blowing it off. Connell sorry to jump on but i was thinking exact same thing youre saying. What do you think, gianno, finding balance is so hard because our political instinctses are tuned into that, left says this, right has to say that, opposed someone serious for this person, not so much for this person, relying on facts and not hysteria, and youre not hysterical presenting facts . I totally agree with kats point. We shouldnt look through political lens. So many folks on the left, in the media, are up doctoring that beat, they want to see the economy collapse. Think what bill maher said, the only way the democrats beat trump is if there is economic collapse. This is something that could potentially cause something dangerous to our economy. That is so problematic of course, at this particular course we need to focus more on human lives at stake. Talking about stimulus for the economy. Ceo of hotel planner. Com mentioned maybe 2,000dollar tax incentive, tax credit for those who may want connell we got to run. Were at top. Hour. We appreciate it as usual, both of you, gianno and kat, i will be with melissa after the bell. Dow jones industrial average is down here for this hour. Here is charles. Charles thank you very much. Good afternoon, im Charles Payne. This is making money. Longtime concerns and anxieties come to a boil over the weekend. There were several flashpoints. Coronavirus concern. Cases spread across the nation as states declare emergencies. Italy quarantining the lombardy region, putting essentially 17 Million People on lockdown. China exports collapsed in january and february as supply chain disruptions crippled their exports. Crude oil, the war, after failing to convince russia to cut production, saudi arabia does about face will increase production north of 10 million barrels,