Transcripts For FBC Mornings With Maria Bartiromo 20240713

This coming out of china this morning. The Unemployment Rates surge to 6. 2 in china, and bank of japan is boosting stimulus this morning doubling stocks purchases. They are buy equities at the bank of japan because yield and tenure fall this morning. Were down 18 basis is point on the tenure at. 800 . Over this 200 coronavirus cases now here in america. West virginia, the only state with no known cases. More school ises are closing major restrictions are being put on businesses and travel. The cdc urging no gatherings of more than 50 people. Vaccine trials meanwhile are starting today. That is one certainly note of optimism. Trump declared National Emergency urging americans against hoarding as Grocery Store is shelveses are emptying out. The president taking part in a Video Conference of with g7 lead percent today to coordinate a response to the coronavirus pandemic. Meanwhile this, senate is expected to vote in coronavirus release bill today. They were there late until 1 a. M. Friday night. In the house, this is relief for workers and businesses. Mornings with march wra is maria is live right now. We have a lot going on this morning, here now the latest on coronavirus. American life up end by Virus Centers centers for Disease Control and prevention urging gathering of 50 or more to be cancel or postponed for next eight week. Ing agency again stressing the need to wash our hands, keep your distance, between others the cdc recommendation comes just days after President Trump declared National Emergency freeing up money had to fight coronavirus. New york city closed for business reach. Along with other major cities across the country, 22 states and number of Large Urban School Districts this coulding new york, with los angeles, and atlanta, denver, sphrifng, san diego, austin and washington, d. C. , deciding to close schools to contain the spread of this virus. New york city move is part of a sweeping plan that includes shuttering thousands of bars and restaurant, a wave of drastic steps being taken across the country. Changing it daily routines from millions of families across the country. 49 u. S. States are now affected by coronavirus West Virginia, now the only state with no known cases. Police new orleans clearing out streets telling rebellers to go home officers making their way up and down same French Quarter over weekend and move coming as city reported first death from coronavirus. First Coronavirus Vaccine is trial meanwhile happen what today in seattle according to government officials. The test made possible for partnership between National Institute of health and a the Company Moderna and the goal here see if the vaccine shows any side effects. Officials say it could take up to 18 months for validated vaccines. The u. S. Is working to cur coronavirus pandemic white house vowing to protect americans urging americans to stay home. Were using full power of the federal government to defeat the coronavirus. And we will do it whatever it takes as American People know testing is now available in all 50 states. Well do everything that we can to make sure we safeguard of health and well being of the American People. Joining conversation this morning pollster and president and partners lee carter is here. Twc partner is here and michael lee good to see everybody this morning thanks so much for being here. A obviously very significant serious situation underway here. Youve got schools closed, new york and several other city, youve got businesses, told only keep 50 of capacity. And an emergency move by this coordination of Central Banks across the world. Your reaction . I dont think weve ever seen a lock down like this so even projecting whack mean for our dmi is very difficult to do. But just is look at the numbers coming of china they basically had had a similar type of lockdown in there myc data assume you can believe it really sort of fell through the floor. So i mean perhaps thats what awaits us. Question is how long will that be and how quickly does our economy snap back . Fact that the economy that markets mike are reacting this way. Trading down 1,000 points even after a the Federal Reserve comes out to cuts Interest Rates by another emergency 50 basis points. What does this tell you in i know that there are expectations of a recession coming. But there was still that that expectation maybe things bounce back in the second half. Markets certainly docket dont seem to think so. Were in process of bottoming that is ugly pres and emotional process, and so you need to get to almost a point of despair before we actually see the bottom. Because that fear of greed index goes from 0 to 100 and i assume get back there today. Markets are limited down i saw the s p etf had is still trading it was down close to 9 earlier see if that recovers. Were about to find out what the Economic Cost is of shutting down number one economy in the world for period of weeks. Yeah hopefully just weeks. Look chinese economy first, completely shutdown in First Quarter thats a huge part of the Global Economy thats going to, obviously, impact everybody. The right now call for a contraction in Second Quarter. We may have seen no growth in the First Quarter. Goldman sachs yesterday said we probably had zero growth and 5 tenth to percent and cornerstone so reported eight a tenths of a percent contraction in Second Quarter. So we dont know about third and Fourth Quarter we dont know if were going to see rebound here is. I dont to be half empty guy here. But i dont think that investments they parked in business shutting down the way they city shutting down the question is how long is that shut down and what consumers do while theyre on lockdown and how quickly do we ramp back up again . So lee this economy clearly, this virus rather change everybodys lives. You mean this is completely making americans as the write this morning hit pause button on life. I dont think anybody knows how to feel right now and it is so changeable. I think weve got people right now still out there and ma parts of the country theyre still spend theyre still beginning out. Its slow down now to a total halt. Were not going to see anything like even if we look at last week i think see a complete change in behavior this come week. It is day by day moment by moment how people are feeling. And i do think this is going to have a huge impact on november. Yeah. On election. I mean, election no question about it. Who youve got a debate last night and we want to talk it about about that coming up. But do you think either of those bernie or joe biden have the goods to take it away from trump, and what were they responses to sh shut down in business . I think bottom line is some people who have looked at a the way the president handled this and say they want somebody else l. They think person who will benefit from that is joe biden it is not Bernie Sanders because in times of uncertainty we dont go for transportation. We might want to go back to something that feels a little bit more stable like weve been there before. You know when you look at what a got us here, and how this started in china, you have to wonder why in the midst of this crisis we are now just waking up to fact that the u. S. Is so dependent on china for some of the most important things. Like the 70 active ingredient in our prescription drugs antibiotics made in china, really . Yesterday spoke with the assistant to the president for trading manufacturing policy, Peter Navarro hes trying to move the supply chain to america. Hes talking about congress what is congress doing to confront china choke hold on vital supply chain, and what the white house is doing. Watch this. Many of our important critical items are produced in china. Tell us what you can do in terms of switching the supply chain back to america. We have an executive order and racing to finish line. We could sign it as early as end of this week. Were going put in motion a longterm trend to bring our pharmaceuticals our medical equipment, our medical supplies home on domestic soil. Maria so these efforts are in place you heard him say theres an executive order coming but in meantime looking at macialghtses, treat this as crisis that is really is. No question and just uncertainty, and its just really just unknown. But on trade thing, look in hindsight it looks brilliant. Because if were going to bring back manufacturing of pharmaceuticals it just makes sense were doing it in north america and not doing it in china. But thing about chinese economy is, it is on a supply side and demand side and a all we like cheaply been buying from there but flip side American Products innovations that were selling there so both sides of the equation for american businesses. So we have to figure out our chinese consumers in future but at the same time, where do we supply our raw material. Maria let me read you one quote from the the Federal Reserve as they lower Interest Rates by half a point. Consistent with the feds mandate the committee seekses to false max employment and price stability, the affects of coronavirus will weigh with on Economic Activity in the near term. Pose risk to the economic outis look, and light of these developments the committee decided to lower target rate for feds on to zero to quarter percent i guess a lot of expectations out there mike that fed it was beginning to zero. On wednesday they went ahead to coordinate before the markets opened. But what the fed is say and i dont think that markets understanding is that the coronavirus will slow down u. S. Economy and what its not going to have is create a crunch or drive liquidity and there to make sure it stands tall and that our markets function although lower on a day like today. you said were bottoming were right now going into this ark of this serious situation these next two weeks clearly businesses, executives have been told these next two week abouts are going to be hot in terms of the number of cases rises and thats where you see so many school closings, and businesses shutting down. One one thing about equity markets markets will equity markets will start rally and start recovering quicker than in march 2009 we hit the bottom it wasnt until march of 2010 that unemployment peak sod equity markets move higher than this and a they were way ahead of this on this selloff in term of the seriousness of this. And then were in this the bottoming process right now where everybody thats investor gets a little bit terrified. Maria but fed doesnt have a lot of tools left after this. Where are we going at zero in terms of the fed, take a short break and markets staging major selloff this morning on heels of the one of thing biest Central Bank Interventions in history is a recession on the horizon or will we see rebound in second half. Were talking about it this morning dow it industrials down 1,041 points right now 41 limit down. Plus airport screenings causing massive delays, disorder, leaving passengers stranded in line for hours. 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Maria welcome back Federal Reserve taking more emergency measures to bolster slowing economy. Yesterday the fed moving the bench mark fed funds rate it a range of zero to. 25 announce a 700 billion stimulus plan these are extrord moves bank of japan also acting doubling stock purchases help Companies Secure loans amid this coronavirus pandemic. Fed worked with five other Central Banks. To create Stimulus Bank of england bank of Japan European Central Bank Swiss National bank, all in concert doing something in terms of stimulus cutting Interest Rates, qawn quantitative easing look at the ash shan markets down across board. Youve got hang seng and hong kong and shanghai in china down 3. 5 . Futures in free fall this morning dow better than 1,000 points, in fact, as soon as the Federal Reserve yesterday announce that emergency move market as very down 900 points so immediately, the market did not like the fact that the fed took the extraordinary stake this extraordinary move one analyst yesterday said to me this is bazooka why is fed taking it now instead of waiting until to see how weak this gets. S p 500 9 in premarket this morning take a look were talking about a decline of 9. 5 that potentially leading to a halt in trade. Right at the open bell this morning. Joining us right now on phone is bull tech capitol head of Global Research katherine. Katherine good morning. Your reaction are this morning. Yeah maria markets are clearly pricing in some sort of tsunami on horizon. That they think monitor policy will be inadequate to face, and i think that it is not an issue of Monetary Policy in the market knows it. But that said the fed maria this is a good point because thats the problem Federal Reserve is out of tools right you can say yeah lets get Monetary Policy but where are we going were already zero now look at the demand story this is, of course, the second large fest latest statistics for the chinese economy. Show that you had manufacturing down it 13. 5 for first two month hads of the year january and february. Then you had the first that was the first decline on record. Then you have retail sales can metric of consumes down 20. 5 in first two month of the year. Chinese urban unemployment hitting a record 6. 2 in february katherine is this indicative of what subpoena happening in the world or is this isolated to china . How does that impact the United States . The u. S. Should expect to see numbers if not of that magnitude something similar maria this is a southern stock in demand, so we should expect to see an absolutely collapse maria in Second Quarter. Numbers to this effect should not be discounted and we should actually expect them to occur. Now the fed is try to ensure i think thats an important point to mention here. And it continue ensure that credit continues to slow to company it is and to households this is important because in times like this, credit ceases up and that can exacerbate a downturn in economy. So lets one more point, this is intend here to systemic and i think this should not be compared to 2008 in the sense that this is not a Financial Sector crisis and something thats going to be systemic in financial industry. If this remains in event driven shock maria that should have a six month time frame and could be 12 months no one knows thats why market is collapsing maria because this is a health cares crisis. No one can predict magnitude of the duration of this. But it is precisely during it ration thats going to determine the Economic Impact. Kalt written good morning it is mitch one of the things you mentioned credit that im interested in get your perspective on is does it come a point that the feds intervene so theyre helping credit market does it come a point where credit risk just looks too severe for some lenders and lenders dont lend because theyre worried about credit risk . I think that fed is, of course, trying to avoid mitch and i think theyre actually doing pretty good job of that. I think it is also part of the natural cycle in recession. Unequivocally had mitch were in recession right Second Quarter is recession their. Why because of the servicebased economy and third this our halte should expect, so what im asking myself is how long does this last . Right if it is two quarters at the technical recession it could be temporary. I think it is temporary. You heard mark carney in a fantastic presser last week, use the word with temporary about 20 times so this will have an end this will have an end and many it does im expecting a vshaped recovery because you have up demand. You have a demand which has been delayed rather than destroyed. Maria we have to jump but jpmorgan Wells Fargo Bank of america say were not going to buy back stock and putting buyback pledging to help consumers and businesses this is what fed this is what the white house this is what everyone is say to the big banks make sure youre there to lend tone sure that consumers have enthews yasm to actually borrow. Is it going to help katherine . Thats absolutely going to help and i think thats putting stake is holders first and foremost i think after you saw the president surrounded by all of these key players in private sector that it is the private sector it is the private sector that will help this crisis come to a end. Okay and weve got massive stimulus in every corner of these institutions youve got fed here on Monetary Policy, got the Congress Voting in the senate. Today in terms of that targeted relief that was announced on friday night, and then you have got fiscal stimulus coming from white house in the form of potentially payroll tax cut, not to mention specific targets for some of the industries that are hard hit Like Airlines and cruise ships thats craftman joining us to take a break were waving markets fall apart down another 1,000 points airport a terminal chaos as well coronavirus screenings causing massive delays there. Well take you there. We are a 97yearold firm built for right now. Edward jones. Its time for investing to feel individual. Yes im stuck in the middle with you, no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its the most open and secure public cloud for business. 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Welcome back the coronavirus pandemic taking a toll on Airline Industry certainly major carriers under pressure this morning and has been for the last two months. United airlines is now cuttings flights in half. Start next month theyll cut 50 of all flights it Come International passengers wait in jampacked lines and todd live this morning at Newark International airport, todd what can you tell us . Good morning. Good morning to you as well so far quiet here at Newark International in the International Terminal havent really seen much in the way of passengers we have seen a lot of cleaning crews. We have seen a lot of airport a personnel but a much of different scene yesterday. Check this out. Just a few hours ago, in fact, travelers packed to the waiting in custom lines the exact cops sit of that social differencing authorities are pushing. That scene repeated at airports throughout the country including if in chicago. 13 airports currently processing travelers from overseas with home lapgd security chief chad promising improvements in days ahead. Is to be clear with number of airport as including chicago are unacceptable we did make adjustments at 12 of the funneling airport and glad to see certain airport and certainly airlines step up partner with us to help address this this unprecedented situation. One of those airline as like you said maria united which had announce a cut in flight capacity by 50 in april and may while predict those cuts would last into the Summer Travel season. Delta it announcing reduce i thought flues to europe include suspension and american reducing american capacity by a whopping 75 . And rushing back from overseas is understandable dr. Anthony the man on frontline this have crisis says it is not necessary. We like to not see crowds like that i think what people need to understand if youre an american as the, if you are a family that you can get back. You dont need to rush back. Taking a look at the big board right now you see that flight from singapore, it has arrived at the gate were start to see certain individuals walking out of the custom area were going to give them a talking to see what their situation is. You can see the ember of flights first one expecting there from europe. Coming up at around noon. Were going to try to interview people maria and get back to you in about about an hour. Maria all right todd thank you france and spain on total lockdown u. K. Being criticizedded for a different approach. Well tack a break when we come back ill get inside from one john hopkins Infectious Disease expert as two emergency doctors remain in critical with crowe that a virus and ask him about threat to American Health care workers this morning. And then reshaping race for president how deadly coronavirus outbreak is impacting campaign trail. We have that stay with us. Durable value of a business in the Transportation Industry without knowing firsthand the unique challenges in that sector . Coming out here, seeing the infrastructure firsthand, we can make better informed investment decisions. Thats why i go beyond the numbers. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com woi felt completely helpless. Hed online. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. That Liberty Mutual customizes your insurance, i just love hitting the open road and telling people so you only pay for what you need [squawks] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Welcome back good monday morning everybody thanks so much for join us im Maria Bartiromo monday march 16th your top stories right now. 6 31 a. M. On east coast. Global Central Banks taking coordinated action to address a slowing Global Economy perhaps a recession. Coming at us Federal Reserve announce another emergency rate cut last night. And a 700 billion dollar Quantitative Easing Program futures not liking it. Pointing to another major selloff this morning, as concern over the Global Business impact of the coronavirus pandemic grows. We are now at limit down, the Dow Jones Industrial average down 1,041 poins and see steeper losses at opening of trading because theres a limit cant go any lower than this right now and premarket. Nasdaq down 359 points and s p down 128 point. Global markets also taking a cue from wall street european across board. There are self countries that are in lockdown mode. Like spain, and france, s p 100 down 321 ponts thats 6 and in paris down 3548 and dax index down 705 points right now 7. 5 . Asian markets string of bad Economic News out of china and industrial output number for two month of the year plummeting 13. 5 . Retail sales in china over that two month period january and february, plummeted 20. 5 . 6 Asset Investment down 24. 5 a and Unemployment Rate surged to 6. 2 . Over in japan, the japanese government is boosting stimulus by doubling stock purchases theyve been buying equities. Meanwhile check Interest Rates with polling once again now down 20 basis points at. 778 were talking with our panel this morning about extraordinary a moves to Federal Reserve as the country battles the the coronavirus on frontlines. Two Emergency Room Physicians in new jersey and Washington State are in Critical Condition this morning as as a result of this virus. Shedding light on heroic work done by america personnel john hopkin security doctor good to see you again thank you so much for being here. Thanks for having me. Very sad to see those on front line forced to have to deal with this get sick but thats what we continue to see. What can you tell us in terms of people protecting themselveses . Are you expecting things to get much worse in coming two week . I do think thingses are going to get worse before they get better were going to see acceleration spread and were going to hear about more cases as we e get our testing online. There have been a lot of a lot of spread of this virus that has been undiagnosed unknown and just coming to lite remember this takes theres an uncue bags poted and some get more sec in second week of illness to start hear more about about critically ill patients than we have earlier and i think next couple of weeks are going to be really critical to understand what our trajectory is going to be. Maria major companieses have you told now that test are out and numbers are going to skyrocket ive been saying tens of thousands of cases are are going to be reported within the next couple of weeks. And thats why youre seeing all of those stores close and youre seeing people really on lockdown. How do you contain this epidemic, doctor this centers for Disease Control and prevention recommending against gatherings of 50 or more people for the next eight weeks. What does this mean for air travel, Even Congress . Were supposed to be standing away from etchre social distancing. Tell us the impact. It is going to be very disruptive and something is that we havent had to do in anybodys lifetime this is something that were doing kind of as a last dech effort to try to find to infect because more we socially gather more opportunities this virus where theres no population immunity no vaccine can jump from person to person so only thing we have in our side is the fact that we can actually try and change our behavior. And a way to decrease the number of cases and decrease the surge of cases that might overwhelm hospitals. Real key issue is that our hospital cap is preserved and dg this social distancing to try to flatten curve it is really about preserving Hospital Capacity you know our hospitals are almost at full capacity and we dont have much ability to surge and thats what people are really worried about if we get into a crisis situation. Maria i think two things out there that are concerning American People in a huge way. One with is looking at italy and see whats happening over there. I think that images are really rattling people making them say, if this happen whats here im terrified. And other thing is when theyre read articles like there are in the New York Times there is other numbers out there say people expect there to be between 160 million and 214 million cases in United States up to 1. 7 Million People diagnose what are you preparing for and what to you say to those kinds of concerns . So it is important to try to break down numbers on what they mean. We likely will have a high of degree of the population infected because theres no population immunity might be up to 50 remember h hngt affected 20 so that has number of people that are going to get infected still it is true that vast majority of people who get infect ready beginning to recover. Just fine and have a mild illness but there are people until those risk groups that are older and have other medical conditions that may have to be hospitalized and some of them may die it and just because of the sheer number of people infected that number thats going to require hospitalizations may exceed the capacity of our hospitals to care for. In 2017 to 2018 about 80,000 americans died from influenza is holds plus or minus a little bit were looking at ten times that number so thats 800,000 so when depending on what number you put in there you get those type of numbers i think it is going to be beginning to be scary for people to see those kinds of numbers but thats what were looking at if this case fatality holds and virus spreads as widely as it does and issue is going to be republican capacity and preserving it but something that individual yeah. Please finish your thought. Going to Say Something thats hard to fathom because at one point the public here you are going to do fine and 1 fatality rate but dont quite when youre talking to a businessman or a businesswoman on hospital ceo it is a different picture because youre talking to them about how inundated those things give people a lot of pause because im safe. But they dont realize they could be transmission belt to somebody whos going to have high risk factor pas to end up hospitalized and then that tips Hospital System over so nuance risk management. There are also now all hands on deck in terms of Corporate America trying to come up with therapeutic and vaccine, mike milan has studied this for 50 years in terms of disease and getting ahead of it with cures. He talked with me about battling this disease yesterday. Watch this. Of we need to focus on how to ramp up testing. Private industry is Public Partnerships are mobilizing today. To deal with the testing problem, that will be behind us. Treatment, what is working . We know that gilead antiviral treatment has already gone into patients. There are more than 30 antiviral treatments that we are testing today. Your reaction there in terms of when we will see Something Real in terms of a therapeutic treat this or, obviously, a vaccine is what were all wanting. Vaccine 12 to 18 months moving as fast as possible but take a long time because youre giving that to Healthy People and do a robust trial to look for any side effect or signals of safety. The other with the antivirals i do think we will have antivirals probably with within months there are multiple trial as mr. Milken refer to and some that looked promises that data is ongoing accumulation and analysis of it and targeted at the sec and it will be aimed at preventing death that type of thing so thats something well see in shortterm but right now left with dealing with this social distancing as our only tool and supportive of care and hospital. Thank you so much for your incite this morning sir we appreciate it. The Coronavirus Crisis taking center stage certainly during first oneonone debate last night between Bernie Sanders and joe biden. The candidates waste nod time slamming president response to the outbreak. Griff jenkins is is in washington, d. C. With the recap of the debate that i was watching last night griff, and i thought who is watching this . In the face of all of the else thats beginning on this crisis that were all dealing with. Only well maria good morning. You know only thing they really agreed on was their disdain for President Trump but you know if you did watch, issues they were quite divided that gave American People quite a contrast between candidates but what a historic debate beginning with a first ever elbow bump. Weve never seen that, of course, they were treated to their position separatedded by six feet as recommended by cdc, and in the silence of no Live Audience. Once they began to scare off, in the back drop of this Global Pandemic sanders signature issue medicare for all took center stage. It has nothing to do with medicare for all. That would not solve the problem at all. We dont have have a system weve got thousands of private insurance plans. That is not a system prepared to provide health care to all people. You have yo a singlepayer system in italy it doesnt work there. We need unprecedented action right now to deal with the unprecedented crisis. People are looking for results not a revolution. Beyond corona crisis but reach out to left leaning democrats on issues and frackinging and his running mate. There are a number of women who are qualified to be president tomorrow. I would pick a woman to be my Vice President. But i will send to the desk immediately a bill that requires to access to citizenship for 11 million undocumented folks and first 100 days of my administration no one, no one will be deported at all. No more, no new frackinging no more drilling on federal lands. The biden has healthy lead in the count but all odds on tomorrow primaries 577 dell galts up for grabs in arizona, florida, arizona and ohio and maria right now all four of the states say contest will proceed as planned. That theyre not gong to cancel because of the coronavirus. Two states, though, who have primaries coming up, in a few weeks g and louisiana have delayed. Maria. Youre right people were questioning that given all of these rules and new items to tell us to stay home griff very much. Lee carter you reacted to that. You dont think they should have the primary. I dont think they should and how could you get real result and seem like unfair and that people are not able to get their voices out. I think they should consider holding back on that and closing scoots and should be doing same thing in states with florida with with all of the folks at higher risk. Emergency action from the Federal Reserve a full point cut in the fed funds rate and it is still sparking a sharp selloff the Central Banks staging interventions in history. Dow industrials down better than 1,000 points is this move enough to move needle on growth and spark Economic Activity as retailers across world close their doors. Were breaking down market impact, threat to america Retailers Next up. Can we go get some ice cream . Alright, we gotta stop here first. From smarter atms, to after hours video tellers comcast business is connecting thousands of banks to technology that turns everyday transactions into extraordinary experiences. Hi there. How are you . Do you have any lollipops in there . laughing no, sorry. Were helping all kinds of businesses go beyond customer expectations. How can we help you . 1 in 3 deaths is caused by cardiovascular disease. Millions of patients are treated with statinsbut up to 75 persistent cardiovascular risk still remains. Many have turned to fish oil supplements. Others, fenofibrates or niacin. But heres a number you should take to heart zerothe number of fda approvals these products have, when added to statins, to reduce the risk of cardiovascular disease. Ask your doctor about an advancement in prescription therapies with proven protection. Visit truetoyourheart. Com im part of a community of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. We are solving problems that improve lives. Welcome back and extraordinary response to intending recession the Federal Reserve taking Martin Luther king, jr. Action a yesterday again culting Interest Rates to near zero. A range between zero is and quarter of a percent in addition to that launched 700 billion round of quantitative easing investors are not impressed markets are poiseed for major selloff at opening of trade and down, joining right now former president of the atlanta Federal Reserve and ceo, and georgia tech, sam school of International Professor daniel. Sir good to have you on the program this morning thanks so much for beinger here. Give us a sense what have e fed did and your with reaction to it. I thought it was a forceful move and over the weekend telling you how seriously the fed is looking at the seches that produces mixed results, of course, because emergency meeting signals to world that, in fact, were dealing with an emergency. I think that was traded from the market disruption in the first three days of the week before theyre normal scheduled meeting would have concluded so overall i give them high marks for their action. Yeah, i mean, obviously, the meeting this tows and wednesday so you have to say well why are they doing this now meetings is in a couple of day. But the meeting is canceled now they moved up the meeting so they have that big conference that press conference yesterday with all of the questions from reporters. My question so to you is do you believe this is going to work . Some people are calling this the baa zooka a move why do this in two weeks, and do you think it is beginning to work given the market it is this morning that our trading down . Obviously not buying into it. Well, i dont think we can know whether or not it will work. First of all i would say Federal Reserve is in support role here. I think the real frontline of action a has what to be the health authorities, and to some intent Fiscal Authority as well. The fed has set its policy set or itsings pos. I think as accommodative as it can possibly be to support the economy through this. But there are multiple scenario that are plausible and im not sure we can know whether or not feds action per se is enough. All right dennis might michae here what other tools does fed have if this is not as effective as it needs to be. Well i listen to jay Powells Press Conference yesterday afternoon, and he shied away strongly from any notion of negative rates in the United States. So the emphasis really is on Forward Guidance and further asset purchases. Meaning the, you know, more than the 700 billion that they announced yesterday and then relying a lot dennis went down and try to get back to hmm in a little bit, he is telling us this was incredible extraordinary move as we know, but you have to wonder, in fact, this is enough because theres so much uncertainty about a vaccine. Theres so much uncertainty about actually the sickness. So thats the problem. A rate cut crowe that striers is bottom line mitch and stimulate economy to a point the question is, and what were going to see fed really double the size of their Balance Sheet because if were not going kneeing on Interest Rates are thats only tool they really have. Is there a Downside Risk to fed expanding Balance Sheet once again and making such significant moves tonight . Yeah absolutely. Its the effect of diminishing marginal return how much assets can fed own . I think were going to get back to point we were prior to Balance Sheet runoff probably a little bit more on top of that. Well see we go from there. You know, when asked specifically what other tools does fed have all we have is Forward Guidance and additional assets tools. Well get into end of the line here and i say thats probably why kitchen sink using bazooka because if we get into a proactive recession theres little left that fed can do. All right well take a short break when we come back we have a lot more market checks mornings with maria right after this. Theres a company thats talked to even more real people than me jd power. 448,134 to be exact. They answered 410 questions in 8 categories about vehicle quality. And when they were done, chevy earned more j. D. Power quality awards across cars, trucks and suvs than any other brand over the last four years. So on behalf of chevrolet, i want to say thank you, real people. Youre welcome. Were gonna need a bigger room. Wthats why xfinity hasu made taking your internetself. And tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. 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Only for a limited time. , back closed for business major retailers across country are shutting their doors until officials get a better handle on coronavirus pandemic. Lauren simonetti now breaks down all of this. There are a lot of closed stores. Lauren what is closing apple is shutting every single store outside of china until march 27 president. Nike closing all 384 u. S. Stores until march 27th same for lululemon, underarmor and others go online if they want something. Stores that will not be closing will probably see a major uptick in sales that includes the Grocery Store is and pharmacy now a quick point on those and remember president yesterday said look people are shopping like its christmas calm down youll have what you need they actually are closing early some of them because they need to restock the shelves because of all of the of the crowds. Walmart has a thousands of those 24 hour locations, those are going to stay open but not 24 hours theyre going to close for cleaning and for restocking of the shelves. Shelves as for malls, theyre go doing look like ghost towns right American Dream in new jersey they have many attractions that attract a lot of people. They are closing through at least the end of march. And as the stores and attraction as close down, schools are too. Look at this map. Schools in at least 33 states are shut. That means millions of students millions of teachers are learning online and parents are tell commutes so a lot of people at home trying to do a lot of different thing trying to get by for foreseeable future. I know this upcoming two week period is going to be significant spike in number of cases but is there anything we need to understand about the contagion rate in next go weeks, i mean, obviously, corporations were told by this administration close down, do something, no crowds in this next couple of weeks. So should i assume then and a contagion rate is beginning to be high in the next couple of weeks as people figure out that they have it . I think thats what most people are assuming and then you figure extra two weeks after that to try to get back to normal. So im looking at this as like a one month disruption. I feel like people would agree. New York City Schools might be closed for rest of the year. Maria wow lauren simonetti. Thanks stay with us. Theres smart and then theres street smart, like a hybrid with best in class epa estimated range of more than five hundred eighty two miles. 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Thanks so much for joining us. Im Maria Bartiromo. It is monday, march 16th. Your top stories right now. Global Central Banks taking coordinated action, emergency moves to offset a slowing Global Economy. The Federal Reserve announced another emergency rate cut yesterday and a 700 billion Quantitative Easing Program. Unfortunately, futures are not reacting well. They are pointing to a major selloff as concerns over the coronavirus pandemic grows this morning. We are at limit down. The dow industrials down 1,041 points, 4 andahalf percent. All major averages down 4 andahalf percent. Global markets are taking a cue from wall street, european markets are down across the board as more countries go on lockdown like spain and france. The fq100 is down 326 points, completely different strategy in the u. K. , down 6 on the ft. The cac in paris is down 8 andahalf percent and dax is down better than 7 . In asia overnight, a string of bad Economic News out of china. Industrial output for the first two months of the year plummeting 13 andahalf percent. Retail sales over the same period down 20 andahalf percent and fixed Asset Investments down 24 . Unemployment rate in china surged to 6 and a quarter percent many this will impact the United States. Its a much larger piece of the Global Economy than ever before. The bank of japan boosting stimulus, doubling stock purchases. Rates are falling this morning, take a look at the yield on the 10 year treasury, down 20. 5 basis points, sitting at a level of 0. 776 . Over 3200 coronavirus cases are now here in america. West virginia the only state with no known cases. More schools are closing across the country. Major restrictions are being put on businesses and travel. Apple, nike and Urban Outfitters among the Stores Closed across the country for the next two weeks to a month. The cdc urging no gatherings of more than 50 people. Meanwhile, vaccine trials are starting today. The president took part in a Video Conference with g7 leaders to coordinate a response to the coronavirus pandemic. Mornings with maria is live right now. Here now the latest on coronavirus. American life upended by virus fears. The cdc urging gatherings of 50 people or more to be canceled or postponed for the next eight weeks. The agency again stressing the need to wash your hands and keep your distance from others. The cdc recommendation coming days after President Trump declared a National Emergency. That freed up money to fight coronavirus. 22 states have ordered the closure of their schools, plus major cities including new york city and los angeles which are two of the nations Largest School districts. The decision affecting more than 25 million children. The u. S. Stepping up tests for the coronavirus, meanwhile. Vice president mike pence says more than 2,000 laboratories will start processing the tests this week. The u. S. Health department will make 1. 9 million test kits available. Elderly people over 65 who have Underlying Health can be the first to request a test. President trump calling on americans to stop hoarding groceries and other supplies amid this pandemic. Theres no need for anybody in the country to hoard essential food supplies. They said to me could you please tell them go and buy, enjoy it, have a nice dinner, relax. Because theres plenty. Maria meanwhile, shelves are bare across the country as people are stocking up on toilet paper and canned goods. The president has spoken with executives from major retailers and has been assured that stores will remain open. Back with me is former atlanta Federal Reserve president and ceo, Georgia Tech School of International Affairs professor dennis lockhart. Weve been talking about extraordinary moves from the Federal Reserve and we asked earlier if the fed has any tools left. The question is, is this going to be enough to really get people buying again . Tell us your sense of what moves like this, a full point in terms of a cut in rates, will do in terms of stimulating the economy. Will this, do you think, get people to refinance, get people to buy a home and is that enough to actually change the sentiment today . Tough question. I would say. I dont think the immediate effect will be to stimulate a lot of demand. Its hard to imagine people going into Car Dealerships or buying homes under these circumstances. But i dont think the fed had any choice but to set the Interest Rate in as supportive a stance as they possibly could. And hope that that helps support activity in general. But immediate consumer demand its hard for me to imagine thats the outcome. Maria let me ask you this, dennis. We are obviously seeing lockdowns across the world. We got the Economic Data out of china this morning which showed the retail sales number, key metric of consumption, second largest economy in the world, retail sales down 20. 5 in the month of january and february. We just showed a list of stores in the United States that are closing all stores. Looks like the First Quarter might have zero growth and were certainly going to see a contraction in the Second Quarter by all expectations. Do you expect that we are headed for a recession . I think the risks of a recession are very high. Obviously now. Whether thats an actual contraction of the economy or just a severe drop in growth, down to tenths of a percent above zero, i dont know. But the Recession Risk is much higher. I would emphasize, however, that in all likelihood this is a temporary thing. It will pass in time. We dont know exactly how long its going to affect the economy. But it will pass. And likely the rebound will be very strong. Maria do you think the Federal Reserve has other tools left . I mean, we know that now here we are in a range between zero and a quarter of a percent on the fed funds rate. What else do you think the fed can do to unlock some stimulus . Well, at the point in which the quantitative easing or the asset purchases might have a stimulative effect, i think theres more that can be done there. Yesterday jay powell and his press conference, he argued that the fed has a lot of space as he called it left and he emphasized Forward Guidance, communication tools, as well as asset purchases. And so i think thats mainly what you would see. Credit, market support is also an important part of the factor, of the situation, and yesterday i thought that was really the emphasis, the support for credit markets to keep credit flowing and to make sure that Financial Markets are functioning properly. Dennis, good morning, mitch roschelle. Welcome back. One of the things that was important about yesterdays move was the coordination with other Central Banks around the world. So was wondering if you can comment on that coordination and how that may continue to play out as other countries are in the negative Interest Rate zone, their tools are different than ours but how may they global coordination continue to evolve . Well, first, coordinated action on the part of the Central Banks is a pretty unusual thing to happen so it does tell you that theyre working closely together. The main action was to activate the swap lines, the currency swap lines and that that i think was important because dollar funding in offshore markets is an important part of the Global Financial system and that is designed, that action is designed to make sure that theres liquid at thiity in thoe markets as well. Theyre doing what they can do but various countries or various currency jurisdictions are in quite different places, as you pointed out with negative Interest Rates in europe and japan. Maria let me ask you this before you go, dennis. In terms of the economy today, what do you want to see . You mentioned a moment ago that you really would like to see some fiscal stimulus. Do you like what youre hearing coming out of the white house, a payroll tax cut . Would that be something that you believe could move the needle . Well, ive also heard arguments that the fiscal stimulus should really be targeted on the most vulnerable, the people who are most likely to be severely affected by this, people who lose their paycheck, conceivably run the risk of losing housing or Something Like that. So overall, i think we have to have a fiscal package that really makes sure that it gets to the right place and it is relatively immediate and so i would favor that kind of action over perhaps a payroll tax cut. Maria so more targeted stimulus to some of the industries that are hardest hit, like the cruise like the hotel, like things like that . Targeted on industries but also targeted on population groups that we know are going to be hardhit, people who live paycheck to paycheck, for example, a lot of discussion of that and thats a big part of the american workforce. Maria sure. Dennis, its great to have your insights this morning. Thanks so much. Dennis lockhart, former president and ceo of the atlanta Federal Reserve. Joining us now is darryl kronk. Good to see you. You hear anything that strikes you from dennis this morning. I think its interesting. I think thats what the markets are doing this morning, theyre switching the narrative from what was expected which was this sizable bazooka monetary response to what comes next in fiscal. Its probably a fourstep process. Number one, we got the first one on march 5th when the president signed the 8. 3 billion that went to the nih, the cdc, to help fight the virus. Number two is grinding through right now. Right. So its helping families, its probably going to pass the senate early this week, signed by the president later. Cbo has yet to score, probably somewhere around 100 billion when you include the paid sick leave and Unemployment Benefits so its sizable but it helps the workers. Stimulus three, yet to lie before us, is probably some kind of a targeted fiscal package that is sizable. So sizable means probably needs to be 3 to 500 billion of actual stimulus, somewhere around 1 of gdp growth. Just to put that in account, 2009s was 780 billion. And then stimulus four is really the targeted stimulus to the industries, the ones you mentioned and dennis talked about, so energy, airlines, cruise lines, hospitality, those types of things. It comes probably in four different stages, the only way congress can really address it. I think thats what markets really want to see. Maria thats why i think markets rallied on friday because they saw the president with all those ceos around him and they said okay, this is all hands on deck, were going to get this. Were going to get control of this. And yet the fed making this emergency move. Yeah. Maria puts everything in panic again. Its a classic surprise. No one saw it coming and markets just they have indigestion when they have a surprise. I want to pick up on your last point which is the quote, unquote, bailout of those industries. Do you envision that being sort of tarplike, the program which was created to bail out the banks . Or is it going to be a different model . Because the president was critical of some of those sort of corporate welfare. I think its probably tarplike, mitch. I think its something that resembles that. Its going to need congressional support. Its not something that can be done jun unilaterally by the president through executive order or through secretary mnuchin or the federal research its going to take that coordinated effort. I think the markets would be pleased if they saw something in that 7, 800 billion total. But well see. What sectors do you guys like right now . I mean, the markets just been absolutely demolished. The selling isnt going to last forever. If we keep losing 1,000 points a day, the market wont be here in a couple weeks. Where do you see value at the moment. A couple weeks ago we actually took down emerging markets, took down International Developed equities, things like continental europe, japan. Japans in a recession, italy is effectively in a recession. You could argue germanys in a recession for all intents and purposes. We like large cap, midcap u. S. Equities, up in quality and market cap. Within the sectors, you can hide out pretty well in technology still, rock solid Balance Sheets, most cash on the Balance Sheets, just really good quality companies. Communications services and then selectively youve got to bifurcate consumer discretionary, theres some that are really going to benefit from whats going on and others that are going to get hurt materially, like cruise lines, airlines, those types of things. Maria would you stick your neck out and buy stocks here . The s p is going to be down 9 right out of the gate this morning. What is it going to take to stop these markets from plummeting the way they are . I think you need see that fiscal stimulus to answer the question of whats it going to take. The house is in recess this week. So the earliest we can get the next package probably is a week from now which markets are not terribly patient around that. We have been selectively buying some of those industries and stocks. We think you have to here. Youre never going to call the bottom. If you go back to 1928 to 1930 and you look at recessionary market responses, the average downside return on the s p is 32 . The median is 24 . Were there. Right. Markets are pricing in that recession. So youre probably getting close. Maria thank you so much, darryl. My pleasure. Maria good to see you. Well be right back. T. Rowe prio beyond the numbers to examine Investment Opportunities firsthand, like innovations in agricultural research. Because your investments deserve the full story. T. Rowe price invest with confidence. Do you recall, not long ago we would walk on the sidewalk all around the wind blows we would only hold on to let go blow a kiss into the sun we need someone to lean on blow a kiss into the sun all we needed somebody to lean on all we need is someone to lean on maria welcome back. The coronavirus pandemic taking a toll on the Airline Industry, certainly among others. Many carriers under pressure again this morning, down take a look, 10 to 15 declines right now. United Airlines Cutting flights in half, beginning next month. This comes as International Passengers wait in jampacked customs lines for hours, these are pictures from this weekend. Todd piro is live this morning at Newark International airport. Hes been speaking with passengers arriving from singapore. Todd. Reporter yeah, maria. As promised, we had those conversations moments after those passengers made it through customs and really two things stood out. One, customs this morning wasnt nearly as packed as we saw yesterday or at least in the Early Morning hours today it wasnt. And two, the real big takeaway that everybody told us when they got off these planes, screening wasnt nearly as extensive as they expected or quite frankly as they wanted. Take a listen. Singapore, there was a lot of temperature checks, everywhere you went, it was automated. Here, didnt really spot it. Asia was very method call. They would take your temperature. They would give you Hand Sanitizer and they would also check everything you had. Given that i have an autoimmune issue, its a huge concern. Reporter maria, as weve all been reporting, a different scene await travelers here. A few hours ago, last night, people packed together waiting in customs line, the exact opposite of the social distancing authorities are pushing. Newark currently processing travelers from overseas, you see them on the map. United announcing a cut in flight capacity by 50 in april and may while predicting the cuts would last into the Summer Travel season. Delta announcing reduced flights to europe including suspensions of certain routes and american reducing its International Capacity by 75 . We reported yesterday from this very spot as you look at the board right now, the flights that are about to land any moment now, we reported yesterday that there werent temperature checks yesterday. As a result, we reached out to dhs yesterday for a response. We have not yet heard back. We reached out again this morning following those conversations with those passengers who said, again, another day, no temperature checks. Back to you. Maria todd, thank you. Todd piro at newark this morning. Coming up, markets are pointing to a major loss at the start of trading this morning, 2,000 points. The Federal Reserves emergency rate cut failing to calm investors, we are now at limit down, 1,041 points lower on the dow industrials. Is a recession on the horizon . Will we see a rebound in the second half of the year . Stay with us. The allnew silverado hd adds to the legendary capability of the strongest, most advanced silverados ever. With best in class Camera Technology and larger, more functional beds than any competitor. The only truck that can compare to a silverado is another silverado. Truck month is the right time to get behind the wheel of the chevy silverado. Now, get 0 financing for 72 months plus 500 dollars cash allowance on all silverado 1500 crew cab pickups. Find new roads at your local chevy dealer. A more secure diaper closure. There were babies involved. And they werent saying much. Thats what we do at 3m, we listen to people, even those who dont have a voice. We are people helping people. To feel connected. Eit all starts whwith an invitation. E. The invitation to lexus sales event now through march 31st. Lease the 2020 es350 for 379 a month for 36 months and well make your first months payment. Experience amazing at your lexus dealer. Maria my lord, bernie, yourn an ad saying im opposed to social security. Let me ask you a few questions, joe. Have you been on the floor of the senate talking about the necessity with pride about cutting social security, cutting medicare. No. All right. America, go to the website right now, go to the youtube right now. Maria former Vice President joe biden and senator Bernie Sanders faced off one on one last night for the first time on the debate stage, no audience, ahead of another round of primaries right now. Joining us now, juan williams. A lot happening this morning in terms of the economy and the massive selloff. But your thoughts on what you saw last night . Well, two quick things. One is with regard to the economy, you see sanders saying no bailout and that he voted against the bailout bill going back to the recession of 08, 089 and you see biden saying it was necessary and it wasnt just a bailout for wall street but the average guy, Small Businesses had to be saved. And saying you may need to take similar steps again and what you heard from Bernie Sanders was youve got to look out for the little guy and hes not ready to look at bailouts. The second thing i would call to your attention, maria, is the argument over medicare for all and sanders standing by it and d biden saying we dont need it and biden said we want results, not a revolution, that bernies medicare for all bill will take four years to pass and biden saying we need something right now, something that would good guarantee no cost in terms of testing, treatment or hospitalization for people affected by the coronavirus. Do you think after watching last night and looking at everything thats happening that there is a chance that Bernie Sanders has any chance of beating joe biden at this point . No, i would say the odds are infitesimal. A lot of people were looking for a car crash on the part of biden, would he slip up, create a gaffe, saying we dont know if hes up to it. There was no such moment. In fact, the moment may have been on the other hand when you had sanders talking about sars when he meant coronavirus. But overall, it was i think the best debate weve seen from the democrats and it may be due to the circumstance which was there was no Live Audience and only two people debating. Just a followup to that, the stakes tomorrow, there are four estates that will have four states that will have elections. Do you think its the right thing to do amid the coronavirus. I think its tough because clearly the medical experts are recommending that we stay home as much as possible. But i dont think that you can simply cancel elections. I think thats pretty upsetting and antidemocratic and so unless you have a declared kind of moment where you say, you know what, we have the plan in hand, i dont know how you can go about starting to cancel elections. Maria all right, juan. We will watch this extraordinary moment in time. Good to talk with you, sir. Thank you. Juan williams joining us there. Real quick, mike lee you earlier said we are bottoming out. You agree with what darryl kronk said as well. The bottoming is a process. It takes time. I think we are closer to the end than we are to the beginning. Hes saying one to three months. I dont think it will be that long. I think the markets going to move far ahead when we know this is resolved. Days like today well be down, the s p 500eetf is down almost 10 right now after being up 10 on friday. This is not how Financial Markets should work. This is not asset prices do not appreciate and depreciate 1 10 in a day that are that big. I think the rationality is getting near the end. Maria well take a break. When we come back, a lot more to come. Stay with us. howling wind or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. At fidelity youll pay no commission howling wind howling wind maria welcome back. Good monday morning, everybody. Thanks so much for joining us. Im Maria Bartiromo, a jam packed morning, serious headlines, it is monday, march 16th. Your top store right now. Global Central Banks taking coordinated action to try to offset the slowing Global Economy, potentially recession coming at us. The Federal Reserve announcing another emergency rate cut last night, taking rates to zero. Also the fed announcing a 700 billion kwa quantitative eg program, will be buying hundreds of billions of dollars of bonds. Futures are down better than 1,000 points. We are looking at another major selloff this morning over concerns of the Global Business impact as the pandemic grows. We are now at limit down and that means we could see a halt in trading at the start of trading with the s p down 9 . The fed joined the bank of canada, bank of england, bank of japan, ecb and the Swiss National bank in providing stimulus and cutting Interest Rates. The dow is on track to plunge more than 2,000 points or 9 andahalf percent right out of the opening bell this morning on losses of the 30 stocks that make up the dow and that of course will mean that we could see a trading halt right out of the gate. Global markets are also selling off this morning, european indices are red across the board. Countries in europe are on lockdown. There is a different strategy in the u. K. , however. Where theyre encouraging people to go out but spain and france lockdown. Germany as well. The fq100 down 363 points right now, 6 and three quarters percent. The cac in paris down 382 points, 9 . And the dax index in germany down 730 points, thats 7. 8 . Asian markets also under pressure. We have Economic News out of china overnight and the numbers are bad. Industrial output for the first two months of the year plummeted 13 andahalf percent. Retail sales over january and february down 20 andahalf percent. In japan, the bank of japan is boosting stimulus by buying equities, they are doubling their stock purchases there. Lets check Interest Rates right now. The 10 year treasury is falling once again, the yield on the treasury, down 21 basis points or at a level of 0. 770 on the 1 of year. Our top story, washington responding to the coronavirus in an all hands on deck manner. The house passing a sweeping bill friday night to address the social and economic effects of the pandemic, House Minority leader Kevin Mccarthy joined me on sunday morning futures. Tell me about the bill that really went so late on friday night. What it has in it, why is it important. What it does is three main things. It makes sure everybody has the ability to get a test if they need it. It allows for sick leave if you are sick or if youre caring for a loved one. It makes sure the va and department of defense has the resources needed to care for those veterans. The secretary of treasury will now advance the money to Small Business for that quarter to pay for that sick leave Going Forward for this short time period, making sure that we have a timetable on this, that there is a sunset. Maria we are waiting a senate vote on this bill this week. One of the most important things in that bill is the paid sick leave. Joining us right now is ohio congressman, member of the house intel and ways and Means Committee Brad Winstrop and josh goshhimer. Thank you for joining us. I want to talk about the paid sick leave. This is one area of the bill that seems to be debated. This was important not just to put money in peoples pockets but also to stop the spread of this coronavirus. If youre sick, dont go to work. Exactly. I mean, that was the Key Driving Force behind this bipartisan bill and brad and i voted for it as did most of congress because we need to do anything we can to contain the virus. In my district, weve got 100 days cases in jersey, a third in my district. Weve gone to self quarantine in one of our towns. Weve got to slow the virus down. Maria but i mean, is this going to help in terms of slowing the virus down . Congressman, what do you think in terms of what else is needed . We know that we are entering right now a very serious two to threeweek period. Youve got all these retailers closing shop. The level of risk seems to be heightened going into this next three weeks. Yeah, it does. Also, the level of awareness also needs to be heightened. I think what we put into the bill certainly gives employers the opportunity to keep things going and as you said, if you are sick, we want you to stay home. We want to be able to take care of you. Having that money in advance is a huge help. Obviously, were trying to do things differently than, say, was done in italy, obviously, where their system has been overrun and theyre going to have a lot longer ill effects in their country than i think that we will in our country because we are doing things differently. The containment, the mitigation. You know, you can never, ever measure what you prevented. That is one thing thats hard for people to understand. And theres always going to be naysayers. Hopefully were doing what we set out to do and thats not have a huge spike where our systems overrun, where people are dying but we sort of spread this out, take care of those that need help and get through it but we have to take action in the meantime and thats one of the things we tried to do in the house, just this past week. Maria im glad you mentioned europe and what were seeing over there in italy, because i think that was one of the triggers for the Federal Reserve to cut rates as much as it did yesterday. They watched the italy headlines and how weak things are getting in europe and wanted to get ahead of it. But congressman winstr of. P, let me ask you about the u. K. Strategy, one person on wall street is calling it the strategy of herd immunity. Tell everybody to go out, be together, everybody gets sick and then its a herd immunity. Do you find the u. K. s strategy odd . I think its rather daring in some ways but well see. I mean, time will tell. Because theyre certainly going a different route than what were trying to do here and, look, i hope both systems are successful in maintaining a better outcome through this whole process. But theyre definitely going a different route and well see what the results of that are. I think its going to be helpful to their economy but maybe not to their healthcare system. Maria and of course the president added the u. K. To the travel ban list. Let me ask you about that, because we are seeing Economic Activity come to a halt in the United States, closings of stores, no flights, cutting down on flights from all these airlines. What are you going to do about the Economic Impact here . Do you expect a recession coming . First, the senate has to pass the package we passed early saturday morning. I think we have to come back next week and put forth a very aggressive package, obviously not just help the airlines but really to help small and medium size businesses. Im very worried about those businesses, if you close every bar and restaurant in new york and all of the states that will have a recessionary impact. We have to make sure we take aggressive moves to keep people employed, to help the hourly workers who wont get their hours, we have to make sure theyre okay. If we dont help them and if were not there for them were going to have a huge problem. Maria brad, talk about what were seeing within restaurants and what guidance restaurants and bars have been given in terms of what they should be doing, particularly in this next three weeks, or three weeks to four weeks, this month. Right. One of our local restauranteurs reached out to me to tell us what theyre doing and its built up confidence within their customers. In ohio, the governor shut down restaurants at 9 00 last night except for carryouts so well see what happens in the days ahead. They put in place many ideas that will limit the potential for any contamination or infection because what theyre doing is spreading people out, limiting crowds, making sure theres less touching, down to things were not going to hand you your receipt in a package that is being used from one person to the other. Theyre going to have someone opening the door. Theyre going to be more and more vigilant than they normally are with wiping down in their kitchens, et cetera, et cetera. Everyones trying do their part. I think we have to look at the numbers. Were looking at data globally, down to state levels, federal levels, obviously, state levels and locally. You know what . In my district for example, whats going on in an urban setting is different than whats going on in a rural setting where some people live a mile apart from one another and theyre not seeing it there. Josh has a different seting in new jersey than i may have in southern ohio in my farmland. So i certainly want to see we have flexible optionings within our regions. Maria when you see this coordinated support, whether its the white house, the congress, you all and what you did on friday night, as well as the Federal Reserve, i mean, what do you think about this payroll tax cut that the white house is talking about . Can i make one point. The idea were coming together and brad makes excellent points, i think thats showing that all sides are coming together making sure as a country we act together and the fact that his Small Businesses, the same calls i got yesterday as well, how theyre looking for ways to help people, whether youre a restaurant, youre doing pickup outside, thats happening a lot of businesses, theyre looking for ways for them obviously to not just stay in business but to help people and i think youll see a lot more of that in the country. Maria will you vote yes on a payroll tax cut. Ive got to see it. Ill tell you this. What you will vote for is anything thats going to help people stay employed and obviously help our hourly workers and make sure we keep all our businesses of all sizes in business. Maria congressman winstrop youve got a wide and deep package from each of these institutions. You did what you did friday night in the congress but the white house wants this payroll tax cut. The white house wants targeted assistance to some industries that are hardhit like the airlines and the cruise ships. Would you vote for that . Well, again, you have to see what it looks like because some of this is this temporary, is it just to help with the coronavirus. We want to be careful were not putting something in place thats permanent or is it something that will be a payback later when things calm down. I think as josh said, what we are trying to do is have people not lose their jobs, help employers keep people employed, because at the end of the day thats going to be a huge difference. Its hard to get people back once you let them go, especially in what has been a good economy. Thank goodness we have had a good economy in place. I think well bounce back. Once we get the healthcare situation under control and people have more assurance and the assistance is on the way, well bounce back. And also i couldnt agree, more, brad. Couldnt agree more. Individuals are doing things, employees are trying to figure out what they can do for their employees on their own, even if it means they dont take home pay for a while. Maria the truth is, its very important for the markets and for the people to see the two of you coming together, to see the country coming together. Its just no time for politics at this point at a serious moment in time. Thats exactly right. Maria thank you so much. Great to see you. Maria thank you for coming in, gentlemen. You too. Maria the remains of an Army Specialist killed in a rocket attack in iraq back on american soil. Cheryl casone with those details. Cheryl good morning, maria. A dignified transfer held overnight in Dover Air Force base in delaware, Juan Miguel Mendez kovarubius was killed in a defense air strike, he was killed along with air force Staff Sergeant Marshall Roberts and a British Service member. The u. S. Plans to reposition some troops out of iraq. Iraqi Security Forces seeing success in the fight against isis. Well, frances antitrust watchdog has cracked down on apple, fining it 1. 22 billion for anticompetitive behavior. The French Competition Authority taking apple to task for abusing the rights of independent resellers. Well, parts of the Las Vegas Strip have gone dark. 14 hotels and casinos including mgm and wynn resorts closing reports as Health Officials call social distances. Several employees tested positive for the virus. Maryland has shut down cass nos and racetracks across that state. Finally, the pandemic has taken its toll on the movie business. Box Office Receipts plunged to a two decade low. Only disneys onward made 10 million. The entire box office slipped 45 week after week. Movie chains have cut theater capacity in half due to the outbreak and social distancing. And those are your headlines. Maria incredible headlines, cheryl. Thank you. Well be right back. Stay with us. Out here there are no half measures. No shortcuts. No faking it. Doing it right is plan a and plan b. Kubota equipment is built to the same high standards you live by. Its up to the challenge. Halfton hay bale challenges. Herding cattle challenges. Thats a lot of mulch challenges. All day. All conditions. All year round. Kubota. Together we do more. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com maria welcome back. Uhaul stepping up to help out displaced College Students in the United States and canada, offering 30 days of free storage for students who are impacted by unforeseen schedule changes resulting from the coronavirus outbreak. Joining us is uhaul executive Vice President , chuck hertzler. How are students able to redeem the offer. Of course, they can go into any of our 2,000uhaul locations. Also, they can check online at uhaul. Com selfstore storage. Maria people are getting a surprise because they werent expectinexpecting that school we closed or they would be going home at this point. Are you getting a lot of response from people . That is what triggered this . We are. Were very familiar with moving the College Students to and from school each year. Of course, this year it snuck up on us faster than usual. Were partnered with over 205 universities today and we have been through our College Boxes dotcom program and so they started reaching out to us early last week in preparation so we kicked our programs into gear and prepared for them and were ready to go now. Youre expecting students to come in, use it for a month. Many schools now are closed until the end of the year. Students wont be coming back until the fall. What kind of programs are you offering for those students looking for many months now . Well, were offering the first 30 days with no charge at all. They have to buy their own lock. Besides that, theres no charge whatsoever. These students typically rented storage from us all summer long. This is nothing new to them. Mitch roschelle. I have two college kids coming back. You can have them, stick them in a locker. [ laughter ] a business like yours with the economy potentially slowing, how might a business like yours be impacted in the months to come . Uhaul is a needs based business. Its not a luxury or something that people can do or do without. Typically, when someone comes to uhaul, they need us. And were there to help them. Of course, nobody knows whats going to happen. This is New Territory for all of us. But i believe that were prepared. I dont know what the futures going to bring but whatever it is, were ready. This year we celebrate 75 years in 2020 and we started off helping our veterans coming back from world war ii and so were familiar with this and were not backing down and were ready to help. Maria thank you. Its all new to use all of us. Thank you so much. Well be watching. Well be right back. Theres a company thats talked to even more real people than me jd power. 448,134 to be exact. They answered 410 questions in 8 categories about vehicle quality. And when they were done, chevy earned more j. D. Power quality awards across cars, trucks and suvs than any other brand over the last four years. So on behalf of chevrolet, i want to say thank you, real people. Youre welcome. Were gonna need a bigger room. Maria welcome back. We are watching oil prices this morning, both crude and brent once again falling sharply, take a look. Crude oil is down 7 right now, 2. 51 a barrel. It is now breaking 30 a barrel. We are at 29. 19 on crude oil. Take a look at brent which is down 358, that also down better than 10 . Brent is sitting at 30. 27 a barrel. And the president on friday gave an olive branch, trying to help the Energy Industry because we know that these levels are going to mean bankruptcy for a number of Shale Companies who were betting on 50 a barrel oil at least. Heres what the president said the u. S. Plans to do with the Strategic Petroleum reserve. Watch. Ive also instructed the secretary of energy to purchase at a very good price large quantities of crude oil for storage in the u. S. Strategic reserve. Were going to fill it right up to the top. Saving the american taxpayer billions and billions of dollars, helping our oil industry and making us even further. Maria so when the president first said that, mike lee, the price of oil shot up 5 in the extended hours on friday. I thought that would be a positive this morning. But of course that was before the emergency rate cut by the Federal Reserve. Your thoughts on what the president just did . Look, buy low, sell high, right. And for the Strategic Petroleum reserve, its a great way for the u. S. Government to protect us in times of shock and right now for the president to go in and buy, its a little bit of a private sector market thinking into the market life. Maria to buy at low prices. I dont know that he necessarily needs to support the price, but buy right here. I think the prices will be low for a while. We went through this in 2016. Like this is a net positive for the u. S. Economy when oil is down here. Its unfortunate for a lost these Shale Companies to go through some sort of reorganization but if they need 50, 40dollar toil be profitable, once they go through reorganization that becomes 7 or 8 a barrel oil. We lose 1, 150 billion net positive to the consumer. Maria i thought this was going to be a positive. You know well see bankruptcies. Two things. One is, hes buying american which is great. The reason the oil sold off, the reality is it looks like the Global Economy will be slowing and demand will dry up. In the short run, its a great move for domestic oil producers. The bigger issue is the economy. Maria still ahead, how Small Business is fighting to survive this pandemic, next hour right here, mornings with maria. Stay with us. Maria welcome back. Good monday morning. Thanks so much for joining us. Im Maria Bartiromo. Monday, march 16 top stories right now 8 00 a. M. On the button on the east coast. It is tough morning this morning for markets global Central Banks made a coordinated move to try to offset, what seems to be an impending recession coming at us Federal Reserve in emergency move yesterday announced another emergency rate cut last night 1 point plus 700 billion dollars in quantitative easing. The move not calming investors looking at this as emergency thing maybe this is even worse than we thought, the dow futures down better than 1,000 points we are at down eliminate, meaning that we will see a much worse impact once market opens, as coronavirus fears spread. Dow on track to plunge over 2000 points or 9 1 2 opening bell based on losses of the 30 stocks that make up the dow, that means right out of the gate probably see a trading halt, when market is down 2000 points, nasdaq down 360, s p down 128 Global Markets this morning also in freefall there is a he selloff in europe, as more countries go on lockdown spain, france, the ft 100 down 389 points 7 and quarter cac quarante in carrick down 9 havdz dax in germany lower 8 3 4 , asian markets selling off bad Economic News coming out of china, we knew that chinese economy was at standstill, these numbers are worse than that this industrial output first two months of the year, plummeted 13. 5 , retail sales for january and february, fell 20. 5 fixed Asset Investments down 24. 5 , unemployment situation Unemployment Rates surged to 6. About 2 , in china. Over in japan, the bank of japan disabling stock purchases kwieg equities yield on 10year treasury down 20. 6 basis points this morning at a level. 775 , here is the latest on coronavirus sl cases, over 332200, West Virginia no known cases schools are closing major restrictions are being put on businesses travel, some stores that are closing all stores in u. S. Apple nike, urban out if iters among scores closed for at least the next two weeks, the cdc urging no gatherings more than 50 people, good news vaccine trials have begun are beginning today the president taking part in videoconference call with g7 leaders today, to coordinate a response, to the coronavirus pandemic mornings with maria live right now. Latest on coronavirus american lives upendeded by fears centers for Disease Control prevention urging gatherings 50 or more canceled postponed next 8 weeks sis cdc agency stressing need to wash your hands frequently keep distance from others days after President Trump declared a National Emergency that freed up he money to fight coronavirus. Officials cross the country drastic measures to prevent spread of coronavirus states large cities ordering schools to be closed, including new york city, los angeles, the two largest districts in the country affecting millions of children mayor new york city another step to shutter or does of all restaurants and bars, starting tomorrow in las vegas mgm making decision to close all Al Properties there indefinitely says mgm 49 States Affected West Virginia only state with no known cases interestingly. Uwills stepping up testing for the coronavirus mike pence says more than 2000 laboratories will start processing tests this week, being the u. S. Health department will make 1. 9 million test kits available under expanded efrlt elderly people over 65, about Underlying Health conditions can can be first to request the tests, i am told to keep your parents at home. Vaccine for coronavirus tested today the first parsepant will receive spern mental doss funded by nih moderna is one of the corporates looking for a vaccine efforting this will take place in research institute, of moderna in seattle Officials Say will take from a year and a half to two years before any vaccine is ready for the public, we are also looking at therapeutics should be available, within a month. Coronavirus screenings causing massive airport delays passengers stranded in line for his or Grady Trimble at Chicago Ohare International good morning to you. Good morning, maria i am told by airport employee that things are better this morning, were better last night this airport International Terminal subject of a left criticism scrutiny over the weekend you have seen the imagines people waiting to be screened up to four hours waiting for temperatures taken one of 13 airports that you passengers returning from kwlurp to be funneled through prompted the governor of illinois, to tweet the federal government needs to get its you know what together now it seems, things did improve after that tweet. Customs and Border Protection increased staff other 13 airports cross the country chicago firefighters are also helping with the screening at this point. And like i said things seem to be improving this morning according to that airport employee that i spoke to, and it is calm in the terminal this morning, also here in illinois starting this evening, governor says that dinein restaurants bars will be ordered to be closed only take out only, will be available, for people in in illinois starting the end of the business day today in terms of Flights Airlines taking drastic measures cutting flights by up to 50 for united delta cutting capacity up to 40 american cutting for International Flights up to 75 . This as we are told the trump administration, is still considering, travel restrictions examine domestically still has not happened. Thank you so much grady a wild time at airport certainly Grady Trimble weve got a sharp selloff on wall street ahead of open limitdown, dow industrials down 1041 points as Federal Reserve cut Interest Rates to zero, a range between zero and a quarter percent spiking across the cross he had wars lawrence in washington, d. C. , with be here an extraordinary move edward. Reporter this is amazing, Federal Reserve chairman powell called this in advance the first time the rates will be this low since financial crisis, now powell says the economy going into this event was extremely strong, but then looking forward at muted inflation pressures sees treasury under stress led fte to take action bringing Interest Rates to basically zero says rates you stay at zero until this is passed Federal Reserve taking action starting quantitative easing 700 billion dollars adding to Balance Sheet pushed to record 5 trillion dollars next several months fed will buy 500 billion in treasurer of maturities 200 billion in mortgagebacked securities to normalize the treasury market, says that showed signs of stress adds any issues with u. S. Treasury markets would then have a devastating Ripple Effect around the globe now in third part of bazooka Federal Reserve appointed at u. S. Economy moved big banks reaves to zero want to use that extra money to lend out they then Federal Reserve gave a broad directive to banks to lend that out, Federal Reserve chairman powell says that bank skwufz told him exactly what they are going to do economy very strong into he comprehensive package, and that may have spooked the markets they shot ever bullet they had at the economy yesterday back to you. Maria sure did shoot every bullet that is why it is being debated right now edward, maybe they are just too little too late, now it is incredible because huge, but what about the last six months thank you so much i want to talk to you guys about this i o o spoke with Mohamed Elerian he said why break out bazooka now somebody else said nobody at fed ras has trading experience not used to working with markets missed every opportunity what do you think. I think that the fact that our central bank was coordinating with other global Central Banks has a lot to do with it we had a former fed president on, last hour, said unprecedented to coordinate cross Central Banks i think a lot to do with why our fed acted as boldly as they did yesterday. Federal reserve bank of canada bank of england bank of japan european, a Swiss National. Car enat a time easing you have to throw everything you have at this now a littled tool set, you have limited, munitions to fight this, things go off the rails no way to bring back on why not get innt in front of it if you dont get out in front of it now may never get out in front of it. Over the phone right now cornerstone macro, michael we want to ask reaction first in terms of this extraordinary move by the fed what do you think . Good morning, maria. It is pretty big move for pretty big event. Definitely used many bullets i would say as our analyst referred to there are bullets that the fed does have they could use some cries facilities that they had in 2009, the credit facility, commercial paper funding facility, so short term direct lending with banks there are bullets they have if they need to they can increase qe we we see Market Reaction down 2000 points out of the gate for dow industrials do you think this is going to work. I dont think what if he had has done Central Banks coordinated with fed is going to put in bottom of the market here. What they are really he aiming to do is to support proper market functioning treasury, as you can sees buying mbss now people tried o refy if anyone has you have seen some moernl rates have gone up so, inc. , the fed is trying to bring that in as well. So ultimately i think going to be able to keep the markets functioning properly but are they going to solve this economic obviously, not, until quarantine the ability to stimulate economy are limited. One of the things that is interesting is you talk about asset purchasing, does the fed get really bold and ask for the mandate to buy assets other than treasurys than Mortgage Backed securities like bank of japan buying equities overnight our fed cant do that yet do you see that is something potentially happens down the road. On the phone i think would be last resort situation i think obviously, there is question surrounding that, but i think, the next step really to think about before we go there, is a more broadbased fiscal stimulus our firm believes probably still going to take 6 to 8 weeks that is optimistic is to expect meaningful fiscal passabling from d. C. More broadbased than we have seen so far. Michael lee here, quick question, when do you believe we will start to see effects of this, in the data like, do you think it is this week, weekly jobless claims or like a month out . On the phone probably start to see it most leading Economic Indicators seeing it in Consumer Confidence, our economist lazar has a daily consumer sway has collapsed with market last week. So that certainly is falling down. We will ge be getting fed index shortly in 20 minutes, so that is kind of first leading Economic Indicator for the month, with regards to pmis data we will be watching pmis, nhb housing index timely indicator, of course, claims, but the speed at the which this market collapsed unprecedented makes it will did i for Quick Reaction in d. C. As you said a lot of data looks really good we know going to get bad reflect Current Situation, but it certainly is ahead of us. Maria unprecedented, i read nancy lazars note said she is expecting 8 10 decline Second Quarter do you think we are headed to a recession for second and third quarter. I think certainly Second Quarter very likely, if not a foregone conclusion at this point this is a fluid situation all going to depend ultimately less on stimulus more on how quickly we quarantine, and flatten the curve the kind of a main goal really of all policymakers today, because that is the ultimately longterm is it stimulus keeping people healthy. There is any way to hide or do you want to sell stocks going into this. We still think there is downside difficult in this environment with having zero visibility,ing on what, he are going to be an next couple quarters. Maria right. Ultimately, so we are watching credit markets, because market corrections, credit spreads specifically investing credit spreads tend to correlate title with p e of market credit spreads widened friday despite market going up the end of the day, and that is consistent with p e, to 13 today we are still we will be about 15 downside in our view. Thank you so much for calling in good to talk with you, we will be right back. The unique challenges in that sector . Coming out here, seeing the infrastructure firsthand, we can make better informed investment decisions. Thats why i go beyond the numbers. whistling im part of a community of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. We are solving problems that improve lives. To one that can take apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com maria Lockheed Martin ceo will step down after six years effective june 15 says she will stay on as executive chairman of Lockheed Martin stock down on news this morning, down 9 the entire market is selling off this morning, on a Global Economy, that is slowing. The coronavirus hitting every day life the illness forcing firms cross the country to take dramatic action closing schools limit gatherings shut bars. Thanks so much for joining us. Thank you, maria great to be here. I want to first ask you how you are doing, how your family is doing. Staying safe coping with Current Situation governor . How are you doing . Well, doing fine i mean it is change our lives in so many ways, i basically mostly travel all the time completely uppened my life, lifestyle not to extent that it is for so many americans, this is going to be a longterm crisis maria i think he we all know that going to affect not just economy but way of life i think the president has done exactly what he needs to do trying to allay fears at the same time, making it clear, this is not yet we are not at pinnacle of the impact of the coronavirus that is why what you are seeing happening at local level, is exactly what needs to happen, and that is what you mentioned is that this is best managed not by the federal government but by the state governments that are closest to people being governed affected the president has set this model in a really brilliant way saying, Vice President pence others a lot of decisions are being made by people at the state, and local level whether to shut schools close theatres close stores the federal government is dealing with interstate International Issues leaving lockals to make decisions what works in washington, d. C. , may not work in wisconsin. Decision to close schools obviously, a significant one not just for 25 million plus kids, who are missing school but for the parents who have to figure out a a plan for themselves. Staying home with kids, et cetera. How as governor how hard is to it make those kinds of decisions, i mean obviously, being governor for as long as you were, you had to make tough decisions what goes into that governor . Well you look at big picture you look at fact that you have parents, who are going to have to take off from work, that they desperately need to conduct to take care of children they dont have other caretakers you worry about children who get most of their meals breakfast and lunch from the school. How do you make sure that those kids are getting nutrition . That is a serious issue, for a lot of children in this country, more than most folks would probably think. When you he had a all that up you are looking at longterm also Short Term Impact i do think that the way the president is handled i will tell you how you can judge it is affected, two of greatest critics gavin newsom of california Governor Cuomo new york both publicly praised the way president and team has handled this you and i both know they wouldnt be doing that, if they did not genuinely feel they have been given resources they need left to make decisions that are best for their states you. Maria governor good to get your insights, governor Mike Huckabee stay safe coming up markets taking a major selloff this morning on the heels of one of the largest Central Bank Interventions ever talking about stimulus on table for this economy when we come right back. We would walk on the sidewalk all around the wind blows we would only hold on to let go blow a kiss into the sun we need someone to lean on blow a kiss into the sun all we needed somebody to lean on all we need is someone to lean on oh no, here comes gthe neighbor probably to brag about how amazing his Xfinity Customer Service is. Im mike, im so busy. Good thing xfinity has twohour appointment windows. They have night and weekend appointments too. Hes here. Bill . Karolyn . Nope no, just a couple of rocks. Download the my account app to manage your appointments making todays Xfinity Customer Service simple, easy, awesome. Ill pass. Its our most dangerous addiction. And to get the whole world clean . That takes a lot more than an alternative. So we took our worst vice, and turned it into the dna for a better system. Materials made from recycled plastic woven and molded into all the things we consume. We created bionic and put the word out with godaddy. What will you change . Make the world you want. Coronavirus a virtual shutdown of schools businesses cross the country cdc says gatherings 50 or more people should be canceled, we are looking at how that will affect the airlines and washington pied at fesh disease about specialist what are thoughts on treating coronavirus. I am treating corn virus name identifying people have coronavirus, only because best thing at it people have this are very, very modest important to understand why we are very, very concerned everybody sees measures zoit anxiety level high most people stay on couch watch bad daytime tv not bad for vast majority we are trying tooid individuals stop spread dont see more people especially those who are higher in age get sick. In other words, what usual saying is even though we are going to see tens of thousands of cases, hundreds of thousands of cases, in the next couple weeks, we should not be worried about it because you this virus for most people will flow through them and they will have flu like symptoms and they will be okay . For the most most people will be okay. That is not to say we are not giving this virus respect it deserves, what we are doing right now, to spread or to stop the spread of this infection in our Community Country is very important what we saw in wuhan in italy is what this virus can do overwhelming medical system unprepared illprepared what we saw on the diamond princes cruise ship 3500 on ship 7 infected in Washington State 20 people close to 20 people died in one center within few days tells us how this is deadly to most vulnerable no joke, what we are doing right now is we are stemming the tide, so that we can control everything when people are sick that we can help those people who are sick, we can stop the spread that we can about flatten curve as everybody has been talking about so that we have the ability to care for the people that need the care, in the way that they need to be cared for. You one might have questions, or i heard a lot of people talking about the fact that a you can get a second infection if you get once not necessarily immune that is true have you seen evidence to support that. I have not seen evidence to support that there was one case an individual was retested as positive, several weeks out but that is not sure if still the original virus like remnants of the original or not some tests so sensitive we can about detect genetic fingerprints weeks later doesnt mean virus is alive just as soon as he some dead remnants of randa around, you know when we look at coronaviruss weve seen generally once being being infected your immune is a period of time for months, years . We dont know. How long does it live on surfaces. So that part is still being studied you look at other coronavirus can last several hours on surfaces, but that is not to say that there is enough living on the surface, to actually lead to causing infection we think most infection caused by respiratory droplets causing from place to place what we are figuring out. So many children out of school what do you want to say about their interactions for example with grandparents should parents limit play days with grandparents we know elderly are most variable. This is day by day basis we are social creatures being humans a part of a family we need to understand, that, you know, that being having a grandparent is important to children in house to be to come together, to support each other that being said if any child is sick, we definitely do not want the grandparents to come over same way if grandparent is falling ill dont want them to expose anybody else, we do see germs you know, within families as i tell a lot of patients you know in a family you share several things i shear culture, food, germs so if you have someone sick on either side you definitely want to limit, but there is no reason that a grandparent cant come over, to visit, their family, in a very enclosed space small amount of people everybody healthy washing hands practicing common sense. Great to have your insights this morning thank you. Good to be here thank you. We will see you soon a sharp he selloff underway trading halt likely at market open because we are expecting a decline, of 2000 points for the Dow Jones Industrial average, we are taking you go live to the floor of New York Stock Exchange when we come right back. Or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. At fidelity youll pay no commission yoall this grass. All this mulch. All these projects to do. You need a tractor that can do it all right. You need the 1 selling subcompact tractor in the u. S. The versatile kubota bx series. Maria welcome back going to see scary opening this morning Dow Jones Industrial average foifd post decline 2000 points, right out of the gate after Federal Reserve had an emergency rate cut yesterday one point announced 700 billion dollars quantitative easing. Kristina partsinevelos on the floor of the New York Stock Exchange this morning, kristina. Quite scene when you walk into building medical staff taking your temperature, you have to get stamped if not allowed in the building what we are expecting to hit possibly First Circuit breaker level s p 500 would drop 7 traders saying pricing in have recession regardless what stimulus in place by fed number looking for s p 5002521. 25 like you said 189point drop, traders here anticipating, that, third circuitry breaker less than two weeks. If we take a look at two etfs that track major markets dow as well, as s p 500 you can say, the top of the screen down already almost 10 , the one tracking dow down over 10 i have individual stocks i want to take a look at right now starting, with disney, disney, good news for those staying home already so going to release frozen 2 on disney plus ahead of schedule so that stock not trading higher part of the broader selloff teledoc not as bad as rest, a 50 surge in virtual dr. Visits online platform, amazon over 8 lower and, unfortunately, they said that they are running low on staple items Household Items we know there has been quite gouging in west side trying to combat that but on the floor definitely fewer people here one trader said you think you see it all because literally they bring up a thermometer to forehead take your fever, you have to sign a form, and then turned away if you happen to have any sign of fever, so it is quite something, none of us have actually seen happen. Maria makes sense given the fact that youve got hundreds of people on the floor of the New York Stock Exchange, and told not to be among crowds you thanks very much all worry about fear around coronavirus has sparked normal amount of stimulus, stimulus obviously, from Federal Reserve, one point rate cut fed funds rate yesterday by fed emergency rate cut fed cut 150 basis points in two weeks Federal Reserve cutting Interest Rates to near zero amid coronavirus cases spiking cross globe not this low since 2008 financial crisis this is on top of surplus from the white house as well president wants a payroll tax cut congress in work friday night the house of representatives passing a target reef package there is a third leg to this that is assistance for the for the hardest hit industries peter inactive tro president trade manufacturing director with me yesterday on fox. You say faced with coronavirus Pandemic Congress should pass trumps 800 billion dollars payroll tax cut why the best stimulus right now. We need a fiscal stimulus big heed winds structural jouflts making now beauty of payroll tax cut until end of the we are payroll tax is 15 , if you if you basically cut that to zero, it is like a 7 1 2 raise workers one could extra paycheck every three months helps businesses particularly small, medium sized businesses manage cash flow over times risk uncertainty, what the house, and congress are doing, now, is basically, important, but it is a relief package it is not primarily a stimulus we got to dos stimulus with assistance hit three points of compass relief fiscal stimulus industry, and of the three, the most important for the next six months is going to be that payroll tax cut, and i would ask everybody, up on the hill to look at this, and understand you the headwinds we are facing now. Maria very quick on this, all of this stimulus you heard it, it three prongs from fiscal Monetary Policy michael yesterday from Federal Reserve if we get a payroll tax cut needs he to be retroactive put money in pockets almost immediately if passed, may 1 or june 1 people get payroll tax beginning of the year part of it, all the way back being in pockets, no matter what happened in fwoit did payroll tax cut people get money in pobts right away. Back, much smaller, a lot of this is an operational challenge how do you get money to people Treasurer Department rubbed back money to people especially, folks treasury are shorthanded, the thing i worry about is that the bill that got passed got through house, on friday was bipartisan, except 40 did not vote for it one voted present, getting something bipartisan that involves payroll tax cuts is a lot harder, about. Maria you dont think democrats of vote for this . I i dont it is interesting they wouldnt, but i think that it is going to have a hard time passing the democrats unless they scaled it to keep away from quote unquote rich people only to working class folksing definitions around who gets who doesnt is where hangup is. A voice was there, during the last blowoff in markets upset for economy joining me former economic adviser to president obama 2 advisers ceo Fox News Contributor robert wolf thanks for joining us this morning, michael lee asked this, how similar is this period to you, as was the period around the 2008 selloff and the worst financial offset in a generation. On the phone unfortunately my 35year career got four or five of these, this reminds me much more of a post accept 11 than 8 i think what fed did is fine adds liquidity to system lowers lending rates that is not the issue. I actual disagree with the president navarro on need for payroll tax cut i agreed with the individual i think mitch said we need to get money to the people, first of all a payroll tax cut wont get passed 15 net republicans nor democrats, because we are out a trillion to deficit it is too broadbased doesnt go to people that really need it number two, you need real stimulus ways on your show a week ago two weeks ago, i said dont apply the dip, i said we need stimulus this will cause a recession the stimulus is at least 500 billion. Maria what is the stimulus robert what is a slough how do you get money in pockets if you dont like the pay troll tax what is it. Okay you can do a few different things, one, you can have you can sales taxes people when they buy things not paying the extra tax certain type of rebates, you can do in my opinion look at huge debt package okay that government issues that and we do Something Like during with world war ii, a war bond or build america bond, where actually dollars go to help certain industries, so we can being when ready reinstitute, this is not a payroll tax issue that is going to dribble out every two weeks, you know, people arent going to change their spending habits 75 countrys service state 75 gdp consumer based we are going to have a labor issue, we are going to have a confidence issue, i dont think the payroll tax one, will get passed and i think will take too long in my Opinion Congress get back to work pass huge stimulus package 500 billion many different ways we can look at this. Stock. About the deficit with payroll tax, if a recession what does defendant look like if we dont act with drastic like a payroll tax. Good point. Think wont be revenue coming in wont a lot of people incomes wiped out. What about that robert . On the phone two things, one, the question you have to ask yourself will people with payroll tax change tur habits . Remember during great recession, the difference between revenues and taxes, ie mountain we took in as wide as 10 usually where about 3, 4 then narrowed, number two i believe this is going to be more of a technical recession i dont think this is you a deep recession like for multiyears i am talking about, really what are we going to be doing next six months, lets be clear here, this is not a liquidity specificity or leverage, when in the midst of 07, 08 our firm i was running ubs 55 times leveraged, everyone had to the entire world at same time this is not same situation. , by the way, i said same at top of the show yesterday as relates to the fed cut i said, yesterday, 1r one point fed cut not getting you to travel not going to get you to buy stuff. You are not allowed to travel, right. Can you. On the phone fed is adding liquidity into the system, lowering rates we need to do programs like a program we did after fact Lending Program commercial paper is able, there is a whole that is a ploourz we need to go in. Maria i like what michael lee said earlier that is he thinks we are bottoming here. I think, markets dont move 4 evident direction each when we would have irrational movesa hopeful sign of end. On the phone i like to separate economy from markets no disrespect to the president the stock market is not a gauge for the economy, right we can disagree what wages have done not done what labor force is going to do or not going to do my opinion this is absolutely good time to discuss scaling in over longterm period markets about going to do very well. The point if you are going to put money to work, close your eyes on the daytoday volatility i bot some s p on friday, i will 3r0ewill probabl more today i have been out of shlth marketed a decade i will slowly go in i am concerned about economy what is go, going to happen three, six months not markets i love the fact robert wolf is buying stocks here that is interesting. On the phone first time over a decade. And, issue after what 25, 28 down from highs, or. If we are down 10 close to 30 from highs. Highs of like three weeks ago. Less than a month. Quick reporter final word. On the phone the reason this is very different the system is not le. Van Home Consumer au total different part of marketplace in my opinion we need immediate stimulus, i actual think i am not for the whole ubi but an interesting thing to think about, giving someone a thousand dollars much better way helpful than broadbased payroll tax, half people dont need that. Maria great to get your thoughts this morning thank you. On the phone thanks for having me on. Maria on phone Senior Writer the wall street journal jon hilsenrath, this has to be one of the most important or biggest Central Bank Interventions youve seen you have been covering fed your entire career. On the phone yeah, absolutely, i know what the fed is trying to do, is to sure that Health Crisis now economic crisis doesnt turn into a financial crisis, making sure that markets operating effectively but, you know, that is not going to stop the whole i have listened carefully to all really interesting conversations you are having Peter Navarro talked to you about relief, and then support for industries. I personally think there is a lot more work that till 70s to be done on relief, i think we need to think about workers, different categories salaried workers people like us, getting our paychecks we have to wherewithal to spend hourly workers we ll to think about right now all those waiters waitresses guy at parking garage taking tip money to pay his bills. I think they are really has to be a focus on supporting those people, who have to pay rent, and pay utilitibills pay car loans, i said on friday i will say again i think, the state Unemployment Benefits system are critical right now. And that policymakers, the federal government has to look carefully at how programs are working, and how eligibility workers making sure that people who are losing hours, today are in a position to pay bills, that should be first priority. We can talk about stimulus as things develop we really got to help people losing hours right now you it is mitch i add one more create or to your salary versus hourly, the 60 to 0 million folks in gig economy trying to figure out what to do because i think it is very important not to overlook them whatever the stimulus is, because there may not be otherwise captured, they may not pay payroll taxes the way others do because self selfemployed. I totally agree with you that is why you know, like, we cant fight the last crisis the last crisis had to get very involved with Emergency Bank Lending Programs. And they were very helpful but we have to look at this crisis and what tools we have to delivering the resources we need in this crisis to give workers hourly workers as i look at landscape makes most sense to embank eligibility drastically at state level for Unemployment Benefits so hourly workers even if hours have been cut in half or more, they have a resource that they can pay bills i think that has to be number one priority. To follow up on that, it is not only hourly employees it is now millions of parents are going to have to stay home with children, because there is no school. Continue on. On the phone cant any away. Maria . Continuing claims have been two million for close to five years now i got to believe a lot of these states Unemployment Insurance coffers full federal government could back that up. On the phone a lot of states are in better position on unemployment, if government is looking for ways to pump money directly to workers who he need it i think that is the channel, that youve got to do, you know, when i look at the forecasts out of wall street what i see, is you a forecast right off the first of the year expect rebound second half of the year might not be broad demand there is pentup demand in once this virus passes, again for the salaried workers we are going to spend money when we need it to key is to cushion the blow for the first half of the year, issue when demand is going to take a horrible hit and priority number one is help people pay bills. Maria great to get insights this morning we appreciate it jon hilsenrath, thank you for weighing in the coronavirus outbreak ongoing market volatility putting many Small Businesses in a difficult position something i spoke with billionaire mark cuban about last week watch. This is why debate is so high around the payroll tax rut here is mark cuban. If you were the ceo of a small or Medium Sized Company i encourage everybody work with your employees, and really recognize that a we are in a unique situation hopeful will go away, over the next you know three, four, six months, we could potentially get back to normal but that is going to take employers, and employees working together to figure it out because, we cant just you cant expect anybody else to figure it out for you. Maria joining me right now ceo trinet burton, tell us your stae. Of the economy and what kind of help, Small Business would need most right now . Well thank you, maria our thoughts go out to all of those impacted by the virus. Will the from our perspective we support 18,000 Small Businesses the end of 2019 liquidity is the issue at hand. The package that is going through congress today, will help. Ultimately, we need to get through this. You need healthy employees healthy fiscal environment you have. Got employees will get an impact should we see payroll tax cut that is something you want to see go through . We would like to see that go through. And we appreciate everything the government is doing, but i believe, this will will he solved by private sector in supporting their employees, we have a healthy Small Business environment before coronavirus i believe healthy environment after coronavirus. When you see headlines markets down another 2000 points today at opening of trading, obviously, you took your Company Public pepper of you seen market performances have been really, good and bad but you see very strong market last couple years, how much of a factor is the fact this feeds on itself you know you turn on tv see market down 2000 points you know we cant weve got all eliminations in place in terms of bars restaurants going out, in big gatherings, do you think it gets worse when you see things like this. Look we are taking it day by day as you know the environment is changing but ultimately, companies in a support their employees will have strong businesses out of the back end of this issue. One of the things that i am trying to figure out, sort of operationally, maybe the accountant in me how do you get cash about to Small Businesses . Because, if it is done through, payroll tax employers pay, that is not actually necessarily putting cash in the pockets, how do you get Small Businesses to get stimulus to them, other than them going to a Bank Borrowing it . Well, i think your point is a good one, we need the stimulus package, we need the loans for Small Businesses, because they have to survive through this economy, and get back to the booming environment. So liquidity issue is the issue that needs to be addressed immediately. I think the 50billiondollar loan package along with tax relief are all good starts. But this is going to evolve change each and every day. Your company o professional Employer Organization providing small, medium sized bids with full service h. R. Solutions would you worry with those that payroll tax kwut is in place they want there once you give somebody something you dont want to take it away one of the debates pushbacks on payroll tax cut that that is ending up costing Small Businesses in the end. I think we need that stimulus to help Small Businesses will address that down the line. Maria all right. I do think some regulations that are being proposed will continue after this issue, like the unemployment issues, like issues around paid sick leave good will come out of this as we look to see what employees need in our country. 60 Million People go to work every day, Small Businesses. Maria all right great to have you insights thank you, sir. We are set for a very troubling opening for the stock market this morning, we are going to see 2000 point o selloff dow industrials out of the gate, that will trigger circuitry breaker market halted at that point impact on election lee carter occupational the economy has been president s number one sort of you know, positive, and of thingss have been going well. Does this change that narrative. I think it absolutely can i think going to see Consumer Confidence coming down people really, really concerned, people are going to be stuck, at home not sure what to do what to make this president , as much as a fighter as much as people have loved what he has done on economy as much as they loved what he has done on trade, he is not necessarily wartime president whether we like that or not not o smoen himself reshowering American People he need we needed to be it doesnt mean he cant do it but right now, i think, a lot of people, there is certainly are base supportive of him a lot of people standing by him, i think there is a lot of people who are on last were not sure where to go are go to say biden maria does biden seem more stable to you, though . Its a good question. He had a very good night in the debate last night, meaning his bar is very low. If doesnt have a gaffe, people feel reassured. In many ways hes a return to what people felt was the normal before. I think Bernie Sanders will have a big problem right now because people dont want a revolution. You dont want transformation in a time of uncertainty. You want something that seems stable so people want to go back to where they were before. That doesnt mean trump cant do it. Doesnt mean hes not going to still be popular. Its going to be very difficult and biden will have much more popularity than he otherwise would. Maria the market will open in 30 minutes time. Weve got the Federal Reserve with extraordinary moves yesterday, michael. The fed joined the bank of canada, bank of england, bank of japan, ecb and Swiss National bank in cutting Interest Rates. Yeah. Now i was just looking at the bank stocks, citigroup at 40 bucks which split adjusted is 4 4. We are getting overdone. The bank stocks are down 15 to 20 . We are getting the borderline insanity. Its looking like we will open up some 2400 on the s p 500, 2350, right around that is the 2018 lows. Robert wolf is buying stocks for the first time in a decade, makes me feel good. So look, i dont think we are out of the woods yet but the end is near. Maria i love the fact michael lee said earlier we are actually in a bottoming out process, mitch, because when it looks this ugly, you have to believe that some people see this as an opportunity. Is the fed cut, a point cut extraordinary, 150 basis points in just two weeks cut by the fed, is that going to be enough to lure people in to start refinancing, help the broader economy . I think its part of the puzzle. Fiscal stimulus is important and what fiscal stimulus looks like it what the markets going to be paying attention to and how long we bounce around the bottom is going to be dependent upon two things. How the arc of this Health Crisis goes along and what fiscal stimulus looks like and how we get money back into peoples hands, so Consumer Confidence can be reassured and even if people are home, they know that they can pay their bills when they come in the mail. Maria its anybodys guess if we see a rebound in the second half but most economists are expecting a pretty good bounceback in the second half. I think depending when that bounceback comes back, it will also have an impact on the election. If the president has a bounceback, if the president can start working across the aisle, we are starting to see more nancy pelosi and donald trump coming together, people coming back together in the interest of america which is what i think everybody wants to see right now, people dont want to see the politicization of coronavirus and thats really whats happening in a lot of places. I think if those things happen, i think the president could be reelected in november. But theres a lot of things that have to happen. Maria why are the markets reacting this way . I mean, you got a market thats going to open down 2,000 points. Go back to one of my favorite movies, pumping iron with arnold schwarzenegger. They asked what are you afraid of. Im afraid of the unknown. We are all afraid of the unknown right now. Its not just markets. Its us. We dont know what this virus is going to bring. Until we do, its very hard to do anything. My answer to that question is i think a lot of Market Participants are fearful that the fed used to the point we made earlier, a bazooka and maybe needed a smaller gun. For now. Maria maybe why are you bringing out the big guns now, why not wait to see how things look in a month . Or even in a week. Maria all right. Great to see you all. Thank you so much. Have a good day. Varney Company Begins now. Stu, take it away. Stuart good morning, maria. Good morning, everyone. This is a monday like no other. For many of us, daily life is anything but normal. For the first time, tens of millions will be working from home. For the first time, there are severe restrictions on what we can do and where we can go. Whole industries shutting down. This is extreme social distancing. We are staying apart, yes, but also sharing a unique experience. We have never seen anything like this before and we are all in it together. It is the great shutdown. Dr. Fauci says we should consider a more stringent national shutdown. Consider it. The cdc recommends against