Transcripts For FBC Mornings With Maria Bartiromo 20240713

Maria and we kick it off with Global Markets lets taken a look at european indices a selloff there as well. S p 200 down 250 points right now and paris down 165 and dax index in germany lower by 362. The European Union announcing the closing of its borders for 30 days to slow spread of coronavirus. In asia is overnight markets started with early rally on heels of wall street rally but then reverse course to finish in the red. Take a look at these numbers you have all of the major down better than 4 as you can see, the nikkei and japan and shanghai and composite 1. 8 and then theres oil. Oil prices tumbling touches levels not seen since 2003. As price of oil between russia and saudi arabia wages on demand is dropping oil prices right now at 25. 40 a barrel havent seen those numbs in quite some time. Check treasuries and yields right now on tenure treasury rising this morning once again, it is back above 1 . Tenure now sitting at 1. 8 that is up ten and a half basis points. The coronavirus pandemic sparking another wild day on wall street. Futures are in limit down mode right now. Many we could see even more significant losses at the open when the bell rings at 9 30 right now youve got futures down 821 points and nasdaq futures lower by 328 and s p futures right now lower by 92. This after the dow ended day sharply higher yesterday, in fact, up better than 1,000 points on session yesterday. 1,048 higherrer and s p was up 143. Joining kftion this morning fox business Dagen Mcdowell ubs Financial Advisor is here and michael lee strategy michael lee thanks everybody for being here. Really important headline this is morning. Dagen when i heard 20 unemployment possible from Steven Mnuchin, you stop and take notice. You do. I brought this up on this program yesterday that the message is if this government, if congress, the white house, the Treasury Department and Federal Reserve cannot coming together immediately and deliver relief to businesses that have no cash flow, that have no revenue, to individuals who are out of work lost their jobs have no income were highly Leverage Society on koarpt and individual side and if you dont do something were going to turn a deep recession into a longterm financial crisis that looks like the great depression. And indeed it the Unemployment Rate hit more than 22 during the depression thats what were looking at, an by the way, it is also a scare tactic from playbook during the 2008 financial crisis. But nonetheless, everybody they need to get up, move on, and do something. Yeah. I mean nobody wants that on their record. It was on my watch that we saw 20 unemployment mike lee, and thats one of the issues here. Youve got politicians alsoing looking at this situation say, we need to get ahead of it. Maria, living through financial crisis in watching that in real time i think the speed with which the fed, the treasury, the administration, and a the congress is acting is really encourage. Unfortunately, were, you know, markets are off today but i think bond market really bought in to what they were selling yesterday as the curb steepen dramatically helicoptered this morning as selloff in 30year so if yield curve steep ling from all time flatness and lows it is a really encouraging sign. And i also think that speaks to what weve been discussing this week with and that bottoming process is in. Normally when with you have futures limit down, you would see a bid for that and not seeing that today so this die very gens near bottom is hopefully a good sign, and again reiterate i think stocks move way with ahead of this problem being solved. So alley mccartney explain this and happy to have you on the panel this morning and great to get your insight this morning but this has gone from a Health Crisis now moving toward a financial crisis as well alley what are you telling clients . Yeah. This is very unique right, both markets are unhinged in terms of the fundamental and lick had liquidity a behavioral issue about of fighting over toilet paper no different than fighting over liquidity in the market we are absolutely unhinged. We keep on coming back down to this level if Technical Levels are important and flooding market with anymore i dont know that technicals are. But theres this level about 24 50 which is 2008, 2018 december level that sort of keep on flirting with. I think yesterday as everybody said, was the combination of urgency, scare tactic, but all of that is good because we do need to do this yesterday. Markets not going anywhere. And until we see evidence of successful containment globally weve seen that with china. Weve with seen that with singapore. Weve seen that with north korea we need evidence of it in europe and here. We need significant, but target ad fiscal measures which sounds like were much closer than we were 24 hours ago than we were 48 hours ago. And we need you know we needs some way to value this feat. The world of finance is based on quantifiability the ability to have a number for price and a number for earningses we have right now neither and youre seeing that in the behavior of Market Participants. I want to add this move up in treasury yield where yield just on tenure yesterday had its biggest oneday gain since september. Of 2008, this is not necessarily a good thing. Because had many investors were long treasury it is theyre being forced to sell them and now people actually starting to worry about amount of money that u. S. Government will have to borrow given this stimulus thats been proposed and many people think it will be into the trillions of dollars not just one trillion so this is not necessarily a healthy thing thats going on in longer term tenure but tenure and treasury. You dont think levels could attract some interest and get people to, you know, spark a refinancing boom, spark a boom in terms of legending which could be sort of the first opening. To some economic relief. This refie boom will go away if you end up with longer term Interest Rates on treasuries had is what happened yesterday. Dagen im thinking a very different alley yeah go ahead michael. Sorry ill take something very different from that this curve steepening at the bottom and 20, 30 year should signify inflation growth over next seven years and curve steepening is bond market say were buying into this fiscal stimulus we dont think were going off the cliff so while there are some negative aspects to the Treasury Curve selling off, i think on the whole, this is a positive that theyre buying into that fiscal stimulus that were not going to turn into japan and go off a cliff. Maria a lot of people on bond market dont see it that way. This is exactly what you were saying mike theyll you want to see a plan that puts cash directly in americans pockets. This is this trillion dollar stimulus package lets take a listen to this. Like we want to get it done, and have a big infusion opposed to going through a little meetings every couple of days we dont want people losing their a jobs and no money to live when they were doing very well four weeks ago. So were going big and thats the way it will be. Americans need cash now and president wants to get cash now pep and i e mean now in the next two weeks. Maria so alley this is from press conference but you said something this will we get some information in terms of the move of the curve of this virus, until we get confidence that were on the downside of the curve, i mean so it sounded to me that you said doesnt matter what numbers are doesnt matter what were talking about about in terms of the economy we need to hear from farmer sector that were moving forward on progress in terms of therapeutic and vaccine is that what you meant . I think we need clarity on all three. We dont need resolution on all three and, obviously, yesterday the reaction and the move up all etho also probably a little selling exhaustion and simply a return to mean was a great sign in terms of the market valuing and noting the difference between idle talk and talk of real dollars going into pockets as you mentioned. And doing it in an urgent way. From a containment perspective. We have seen those containment numbers come out of asia, for example when you look at the data that came out of china, yesterday their ports are up and running at about 70 to 80 of where with they were consumers are back spending on big ticket items. Some of the smaller ticket items are up near 90 so we have a pass forward but to your point we need to see that that is relevant and can be applied to the western world in terms of this steps that weve taken. One real quick saying i want to add a about about this stimulus one of the reasons youre not getting a follow through this morning in markets is because theres a concern that this money will end up going what is initially about a 250 billion so a quarter of a trillion dollars and wont go to people who need it and fewer things to spend it on because they are seblly trapped in their home. This money because we only get really one shot at this as government in terms of getting money in the hands of people in businesses that need it that are that need to be made solvent that dont give it to people who dont need it. Who have jobs who have income or are retired already collecting. Social security, medicare but maria. Mentioned earlier those people who are not going to get a payroll tax cut, the gig economy et cetera other employees working parttime. Yes go ahead. S i was going to say this is real right. Last night i was talking with people all over the country, and youre starting to see restaurants shut down. Youre starting to hear stories from retail shops from Leisure Companies that theyre actually letting their employees go. Almost to get in line for unemployment instead of a delay and this is real and we need real money again go to right people. Majority of this country cant afford a medical bill of 400 dollars and those are people who have been sustaining into this which consumer demanding, and other thing i would like to point out is even if all of this happens we are in an environment again that is much more behavioral psychological and behavioral economics than it is fundamental so things in the bill that have been proposed like for example, Something Like a deferral of tax payment thats not new money. Right, a 6 month deferral of cash from the government maybe that helped a tiny bit right now. But we also want some confidence that there will be a continued level of both fiscal and monastery support into a prolong recovery. So thats spofort like robbing people maria right. Yeses this is important point that youre making. We are, obviously, seeing the impact of the holes in this as we watch markets. Now to latest on the coronavirus, numbers here, illness has now affected all 50 u. S. States, West Virginia, with reporting its first case yesterday. The last state to do so. The death toll in the United States now top 100,000 in at least 18 states. Cases across the World Soaring it near 200,000. In 145 countries meaning youve got 1500 u. S. National guard troops have been deployed to fight this virus. President trump say hes considering having the army corps of engineers build temporary hospitals in new york and california. Remember i asked that question of Vice President mike pence actually kansas now the first state to close schools for the rest of the school year. The governor says that small groups of personnel can return to school buildingses after the facilities are completely cleaned. Nevada ramp off its coronavirus response, it is closing restaurants, bars, and famous Las Vegas Strip by noon today. All nonessential business also offis almosts for next 30 days. Resident are being urged to stay inside. Target stores close no later than 9 p. M. And retailer dedicating first hour of business of every wednesday rather to the elderly and those shoppers that are at risk hoping those people can stock up on food and supplies during crisis during that time frame. Take a look at a target shares this morning as you can see they are down 43 a share. Costco staying open for now but limit number of people allowed in its stores reduce some services while increasing its cleaning efforts. Well take a short break when we come back more mornings with maria. Do stay with us. 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 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 my body is truly powerful. I have the power to lower my blood sugar and a1c. Because i can still make my own insulin. And trulicity activates my body to release it like its supposed to. Trulicity is for people with type 2 diabetes. Its not insulin. I take it once a week. It starts acting in my body from the first dose. Trulicity isnt for people with type 1 diabetes or diabetic ketoacidosis. Dont take trulicity if youre allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. Stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, or severe stomach pain. Serious side effects may include pancreatitis. Taking trulicity with a sulfonylurea or insulin increases low blood sugar risk. Side effects include nausea, diarrhea, vomiting, belly pain, and decreased appetite, which lead to dehydration and may worsen kidney problems. I have it within me to lower my a1c. Ask your doctor about trulicity. Welcome back i want to correct something a moment ago, the number of deaths in the United States just over 100. 100 deaths in the u. S. From coronavirus right now. Markets meanwhile are pointing to sharply lower opening this morning. Take a look dow jones is industrial average down 821 is ponts ow right now s p futures are lower. By 92, obviously, a volatile couple of weeks and volatilities was on display yesterday as well. Markets were up nearly 5 after the trumped aing mrgs administration announce a one million stimulus plan, and portfolioing manager jack we appreciate you joining us this morning. What do you think is going on here with markets. Why is there such negativity even when we know that all a hands are on deck youve got fiscal policy and Monetary Policy coming at us. L yeah. Youre right. So all hands on deck im not sure where theyre yet. Marketing are telling us that hey, yeah, Central Banks government, its interesting theyre doing this hey were going to do whatever it take thats kind of what they did in july of 2012 and markets are testing them. Are they really going to do whatever it takes i think, you know, clearly im impressed with the speed of the response. But im not sure it is quite enough considering thats theres going to be a huge consumption hole created because of the impact of the coronavirus, i mean, steps being put in place to address that. And then just the consumes itself im not sure whats being done to this point is enough to offset that yet and i think thats what markets are telling us and one of the things with treasuries because equities arent going to heal until a treasury market heals what i mean by that is not functioning normally. Bid and treasuries out of whack and this is in part why the motivated the fed to step up and do size we have to do more of it. Weve got to pull back on the vocal rule. Weve got to get dealers acting as principal not just agent but thats market im focused on first that has to calm down before any other market will calm down. Bring in Dagen Mcdowell here because im surprised we havent seen anything on vocal rule. Jack is right maybe there are other policy things that need to happen. In terms of the strong hold and or choke hold thats been on banks for so long like the vocal rule. A couple of things that did happen from the Federal Reserve yesterday launching that commercial paper funding facility. And the fed had to go to the Treasury Department to get permission with that money coming from exchange Stablization Fund so maybe that keys up the Federal Reserve to do something. It would essentially work as a bailout, bailout package where airlines, hotel Leisure Companieses and retailers can go to fed well see if that happens also it did launch its primary dealer credit facility. It functions as overnite Loan Facility for primary dealer. Similar to the discount window provides for backup fund for the Banking System. These are two program that will revive from financial crisis, and certainly are aim ad at helping these malfunctioning markets. To jack what about that. Besides Treasury Departments move and stimulus is plan youve got Federal Reserve having taken several action in recent days. To try to settle the economy, it includes cutting Interest Rates but thats to near zero but also extending it borrowing to businesses, promoting Bank Liquidity jack is. It is all good. So hats off to fed they have to do more of that stuff. Because the issue is, youve got three things unfolding. Youve got a massive economic tightening because of the coronavirus. Youve got a tightening financial conditions because of the equity market and dont want have a liquidity credit tightening. Grar yeah. Jack thank you so much for join us. Stay with us a lot more here. In two minutes. Managing lipids, like very high triglycerides, can be tough. You diet. Exercise. But if youre also taking Fish Oil Supplements you should know they are not fda approved. They may have saturated fat and may even raise bad cholesterol. To treat very high triglycerides, discover the science of prescription vascepa. 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Maria, it is unbelievable imagine under different circumstances better circumstances this will be a lead story. But instead its not because of coronavirus. But yesterday was a clean sweep for biden and maybe clearest indication vote reverse not looking for radical change in times biden, though, has undeniable commanding lead in delegate race heres overall. 1,147 delegates of sanders, 181 now biden had no live victory is rally just a live stream from his delaware home appealing to bernies base. So let me say especially to the young votessers who have been inspired by senator sanders i hear you. I know whats at stake is. Heres how big of a night biden had had if you look at arizona we won by 12 illinois by 23 and in florida where state had had biggest prize dominating by nearly 40 sanders after the polls close but earlier in the night laid out his vision of how to rescue the nation. We must do is empower medicare to cover all medical bills during this emergency. If youre uninsured. If you are underinsured if you have high deductible and high copayments. If you have out of pocket expensions, medicare will will cover those expenses in maria those image to polls just surreal of voters volunteers turning out a mask and gloves question today is what happens next because more states are postponing their elections out of health concerns, yanked being latest to join louisiana, georgia, and kentucky and down the road dnc is very worried about about more changes to their primary calendar. Chairman tom perez is now to your knowledging remaining states to make voting easier, and safer especially use those mail ballots now next slew of primaries coming first week of april. That coincides with the end of this first day 15day period where the white house is asking us for social distancing. We may have more clarity on how bad things are at that point but one thing is for sure uncertainty in this democratic primary race and what had this states and elections will do. Maria. Youre absolutely right griff wow incredible thank you so much. Griff jenkins you know dagen another thing is that going into the election, youre not going to be able to see all of a these rally it is the president and his rallies going into the election november. And, obviously, if this is with us for self months that will change look and feel this have election quite a bit. President trump reelection rely soully on response in the white house response and overall government response to the virus. To make sure that americans are safe and healthy and that we dont go into a po tracted financial crisis. One thing ill point out about joe biden winning in florida for example, based on my last look he won every single county in that state. And ill point out Bernie Sanders this is from the bide only team Bernie Sanders team ran more than 4600 ads on television and florida attacking joe biden on social security. And joe biden still swept the state and it is because medicare for all takes away medicare as it exist today and older people are heck of a lot smarter than theyre giving credit for. [laughter] so are unions and 180 Million People who are actually have that health care right now from their companies who dont want to see it go away. Take a break when we come back were watching sharp declines at the open of trading this morning volatility rocking wall street. Well navigate turbulence for you with dow down 821 limit down once again. Stay with us. In the Transportation Industry without knowing firsthandness 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 maria welcome back good wednesday morning everybody thanks so much for joins us im Maria Bartiromo and it is wednesday march 18th your top stories right now. 6 32 a. M. On east coast. The wild ride on wall street now slowing down, weve got another tough morning this morning for futures. Were expecting a steep selloff right at the open of trade. Hitting limit down, once again, meaning we could see a much sharper decline at the start of trading Dow Jones Industrial down 821 points and nasdaq futures lower by 328 and s p futures right now lower by 92 points. This after news of a trillion dollar stimulus plan and that news fueled rally in stocks yesterday finished at session highs with the Dow Jones Industrial up 1,048 at the close and 5 higher and nasdaq up and s p up 143 and nasdaq and s p 500 with their second largest point game in history. Lets check Global Markets right now european indices are l also seeing a steep selloff this morning with the s p 100 down and in paris down 226 and the dax index in germany lower by 445 in asia markets started with early rally and a reverse parts by close finishing in red across the board performer in south korea down 4. 86 . Trying tooff set economic hit of coronavirus white house is requesting more than one with trillion in stimulus. This plan includes 3 hushing billion dollars in Small Business sthans, 250 billion dollars in cash payment it is to American People. Trump administration weighing in yesterday after about treasury secretary Steven Mnuchin met with senators to discuss this plan. Secretary mnuchin is meeting with stimulus packages i can it will you who is meeting with them late into the night last night. And for a big part of the day yesterday and tremendous they thinkses are happen aing. These will be payments to Small Businesses. Weve talked about loan guarantees, too critical industry such as airlines and hotels and weve also talked about a stimulus package to American Worker you can think of this as Something Like Business Interruption payments for American Workers. L joining me right now is texas congressman house energy and Commerce Community member medical doctor himself. Doctor michael congressman good to have you on the program this morning. Thanks for being here. Thanks maria good morning to you. For this money to Small Business, where are you expecting that money to go is there because youre expecting these Small Businesses about to be forceed it to lay off because they because theyre, obviously, not hague any money given were on lockdown what specifically do you expect that money to be used for . Well, about i think Business Interruption or Business Insurance and to maintain to the extent they can and maintain payroll and blow base. Remember a week ago we were in a full employment economy. Particularly here in north texas you couldnt hire anyone. So if there is some interest i expect on the part of businesses and try to retain that trained work orer base. Is certainly has happened fast. The speed with which this has completely reversed course. It is extraordinary. Do you think were going to have news from the former sector news offing proin terms of therapies wouldnt that be a major stimulus in and of itself . It absolutely would and surely were all stories yesterday of the beginning the phase one of the Clinical Trials with a vaccine thats great news. Some of the information that youre getting out of the other countries that were hard hit by this with some of the antivirals theyre already around the area showing some against this virus. Thats great news. The, you know, obviously, the big worry here is is our Emergency Rooms are intensive care units, our ventilator beds are they prepared to handle the numbers of patientses that they might see we saw some really draconian measures over in china, obviously, they shut down news reports there in january. So it was hard to tell what was going on in china. Now weve seen up closer in some of the European Countries particularly in italy just how desperate the situation has become in health care facilities. And no question it has got the everybodys attention. Well this is a really are important point that you are making. It certainly feels like we dont have enough beds. Should the country go, you know, should these numberses spike which is what were expecting it so what do we do about that . Iyou ever got to give it credit to American People look what American People have done. You know, you all in congress, the white house have given guidance stay home, you know do social distancing. Whole country hassle followed suit america is so strong people are so strong they have done everything that the government is asking us to do. And a yet were seeing a major impact and yet weve got real holes in our supplies of medical equipment, and as you say that hospital strength that were going to see whats the answer to that . Well, of course there was the pandemic all hazard preparedness act that President Trump signed into law last june. So thank goodness for that and Previous Congress and did the warning and this congress completed job of getting that bill in. This is what has refilled things in the national stockpile. This is what has prepared to the degree that we are prepared. This is a thing that has allowed that preparation. But you know honestly the last month of february, i couldnt get my committee and democratic leader interested in this situation. I thought we should have been surveying hospitals respiratory icu beds, what do we have available . What is there that we could repurpose to become an icu. There certainly are military facilities. There are perhaps some closed schoolses that could be repurposed and this is activity that really should have been underways last month. Maria well youre right. You know thats one issue in term of bringing military even further to create spaces for hospital it is and clinicses but amount of stimulus is is actually extraordinary when you look at the democracy impact. 95 Global Central Bank rate cuts. Youve got global short rates down 110 basis points over the last 14 months. Go through the overall umbrella of stimulus if you will. The way you see it congressman because youve got number one you know, a targeted plan which includes the paid sick leave then youve got a fiscal stimulus plan which the president wants to give money to people and their pockets as well as, you know, doing maybe a pay roll tax cut. Then youve got the major account embay on the hotel and Airline Industry so youre looking at targeted relief for some of those Hard Hit Industries u. S. Airlines requesting 58 billion dollars in a bailout more than what was requested post 9 11. Major Hotels Across the country shuttering operations as well. That industry seeking over 250 billion in funds. And then, of course, youve got the Central Bank Action as well. How likely is that these bailouts happen to bailout some of these specific have is . And a how do you see the overall umbrella of response from the u. S. . Well, first office, there actually been two bills that passed house it of representatis first one dealing with a little bit of help and then the second one last saturday morning early dealing with the paid sick leave aspect. I think it was appropriate that this was going to run the length of the declared president ial emergency. So there is a stop date on that. You do want to be careful that things dont become new normal because this is an extraordinary situation. Now, thes other aspects the travel, the airlines Big Industries in my area, obviously, im watching that care think and married from a number of people about it and i suspect i will continue to what are from people about it then dont forget texas is a big energy state and weve also had had some things upsetting the oil markets. So theres a kind of a multiple whammy down here. It really is because that was one of our most vibrant industry but where oil is right now with 25 dollars a barrel, how many Shale Companies would you expect to go to not be able to deal with this and go bankrupt is there a percentage in your head that you think some of the Companies Wont make it out of this . I would hesitate to say a number but you know theres a rick there even though highly lerchl companies are not going to find some difficulty with with cash flows. Exactly. Real we can before you go congressman sir is there anything you can tell us you being a medical doctor yourself is there anything to know that we havent heard yet about coronavirus in materials of American People . Do remember to 20 years ago with experience with sars, we never got a vaccine we never really got a satisfactory antiviral and that disease was overcome with quarantine, social distance, Contact Tracing with so basic Public Health methods thats why it is important that people maintain social disabs like you im proud of the response of the American People. In a short period of time theyve complied. It is absolutely true. Very proud congressman good to see you this morning. Great. Maria michael joining us meanwhile irs making a significant change amid coronavirus pandemic. Cheryl casone with those details now. Cheryl. Cheryl good morning maria, the april 15th deadline for tax payments now postponed most americans getting extra 90 days. Treasury secretary steerch mnuchin says delay for those who owe 1 million or less to uncle sam this year and corporations that owe 10 million or less but officials are very clear tax returns still have to be filed by april 15th. Tensions hit a new high between u. S. And china, after china revoked press credential for three u. S. Journalist those reportsessers work with from New York Times, Washington Post and wall street journal, china says move was retaliation for the u. S. Placing a cap on chinese journalist allowed here china launched a propaganda war with with u. S. Over who is to blame for the spread of the coronavirus. Fedex has suspended 2020 Financial Guidance and cut its delivery capacity as it adjust operations to slowing economy. Profited fedex latest quarter fall but revenue did top expectations and maria heart and box breaking this morning legendary Quarterback Tom Brady is part way withs his team of 20 years and now been reported that it he will sign with the tampa bay buccaneers. He has about it announced deal rumor to be worth 30 million a year maria neither side has confirmed it. Who those are your headlines. Maria stay with us. More to come right here. E futur. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. 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. Maria welcome back judger generations key to stopping spread of the coronavirus and many young adults are not taking the threat seriously. In fact from partying on beaches, to packing if bars and restaurant, we seen plenty of evidence suggesting that young people are not doing social distancing. So where is the disconnect here joins to answer help answer that question is Family Medicine doctor, aka dr. Mike also well are you considered a a millennial . Yeah. Maria i do fall into that category. Maria whats going on with with this generation is in terms of not taking threats seriously dr. Mike . I think it is a twofold problem i dont think they see it as such a problem because theyre not concerned for their own health theres been much said about about those with cronic medical condition and those over the age of 65, so millennials are sitting and feeling safe. Second, theres a lot of misinforms on socially media as early as last week, we had the celebrities go on and say this is no big deal this is going to pass everything is fine. And theyre truly not grasping seriousness of this issue. It goes so much further than just affecting those who have chronic medical condition or those who are over the age of 60. If we have a runup hospital, we will not have enough hospital beds as you said earlier on program to treat patients. And this is not just to treat parents who suffer from coronavirus but i patient of any kind a tremendous strain put on Hospital System if we dont practice social distancing maneuvers were talking about so im glad that state, local, even truest has stepped in closed a lot of these establishment, because otherwise young people may not get the message. Yeah i think you make an point point then youve got people on spring break right now. Dr. Mike weve got plenty of people gathering even party on beaches before the lockdowns were ordered. Give us, i mean, youre talking about risk in terms of were not going to be able to handle this. What about Drinking Alcohol . Are there risks there listen to this tweet that congressman pete king puts out. Time for millennials on spring break to grow up. Stop swarming beaches and bars and spreading coronavirus forget your selfishness show spongs like previous generations made america greatest nation on earth. What about that question about alcohol. Does that pose a risk dr. Mike . Maria is does pose a risk and studying done over last ten years that show the specific immune cell that protect us from viruses and bacteria. Are weakened when we have high amount of alcohol in our systems, and one of the most important thing is is that weve talk about on your program that get disrupted when you drink alcohol is sleep. You dont go through proper stages of sleep when you have high levels of alcohol in your blood when you dont sleep well that naturally lower your ability toking fight off infection. And during this time when you need your immune system in tiptop shape drinking a lot of alcohol is not ideal. It is going to make you more susceptible to this virus and more susceptible toll any virus out there influenza is still out there there are patients still testing positive for this. And the last thing that you want to have complications from influenza during a time when we have patients running on to our hospitals because of coronavirus. Maria youre right dr. Mike do you think this slows down when weather gets better in the summer . Mar ya i think two things happen in the warmer weather that make me optimistic that we might see a drks first we see increases humidity when summer come around and increase humidity less germ hang time that means if someone sneezes and air, they hang in the air. But when had had air is more humid the virus particles seem to stay there for a shorter period of time so we hope to have less transmission. Second in the summer time people are outdoors more. When had were outtores not confine to inside spaces were more likely tore further apart from one another, and with the sun nature disinfectant hopefully virus will also be gone in that meat so im optimistic but we with cant know for sure. Maria understood. We appreciate that dr. Mike thank you. The president is tweeting were going bring you that a when we come right back. Stay with us. 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 beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. 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Maria welcome back President Trump is tweeting this morning heres what he said for the people now out of work because of the important necessary containment policies, about for instance, shutting down of hotel, bar, restaurants money will be soon coming to you onsloft of the chinese virus is is not your fault. Well be strong iser than ever writes the president thats incredible how americans have incredible fortitude to change on guidance of the government giving back as well during Coronavirus Crisis celebrities also a now helping people stay positive. Lauren simonetti with with those details now. Lauren. Lauren making fuss laugh, and reminding us that we have to be safe. Here is mel brooks son. Im max brooks 47 year old, this is any dad mel brooks. Hi dad. 93. If i get the coronavirus ill probably be okay but if i give it to him he could give it to cal and Dick Van Dyke and before i know it wiped out a whole generation of comedic legends. That wasny hes 97 Dick Van Dyke 94 drive message if youre a millennial and young you might be po okay and feel okay but older person would not be. Matthew mcconaughey sending message that we might feel isolated but we really need to work together. Listen to this one. Were all more dependent on each other than we ever have been. We have an enemy in coronavirus that is faceless. That is raceless, sex lest nondenominational and bipartisan. Altogether in this. Using their select magic to helps us feel a little bit more connected. Maria. Maria i love positive vibes lauren thank you. Stay is with us well be right back. Give me your hand i can save you. Lots of money with Liberty Mutual we customize your Car Insurance so you only pay for what you need only pay for what you need. Liberty. Liberty. Liberty. Liberty. Woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. 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Retirement. Investments. Insurance. Maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us. Im Maria Bartiromo. It is wednesday, march 18. Your top stories right now, 7 0. A trillion dollar stimulus package, the white house looks to offset the Economic Impact of the coronavirus and put money into americans pockets. Steven mnuchin is warning that unemployment could spike to 20 if action is not taken. The wild ride on wall street still going, futures pointing to another steep selloff this morning at the opening of trading, hitting limit down. We could see a sharper decline at the start of trading. The Dow Jones Futures down 821 points, the nasdaq futures down 328, and the s p futures lower by 92. This on top of news of the stimulus plan yesterday fueled a rally in stocks, in fact markets closed at session highs at 4 00 on wall street. The dow industrials were up 1,048, 5 and a quarter percent, nasdaq was up 430 points, up 6 and a third percent, the s p was up 133 points, 5 moves. Boeing is under pressure this morning, set to cut about 140 points off of the Dow Jones Industrial average at the open, one analyst saying it makes sense for the jet maker to suspend its dividend. That is the worry, that is why investors are selling the stock. Confirmed coronavirus cases now in all 50 states. Kansas becoming the first state to Cancel School for the rest of the year. The travel industry taking a big hit, hotels and casinos on the vegas strip the latest to shut down. Hotel ceos are telling President Trump that they are being forced to lay off thousands of workers. Joe biden sweeps all three primaries yesterday, making it increasingly difficult for Bernie Sanders to find a path to the democratic nomination. President trump clinching the republican nomination. Mornings with maria is live right now. And in europe weve got a steep selloff underway right now. Take a look at the european indices. The European Union announced the closing of the border for 30 days to help stop the spread of the coronavirus. In asia overnight, markets started with a rally on the heels of the rally on wall street yesterday but then quickly reversed course to finish in the red. Take a look, worst performer was korea, down 4. 8 and hong kong down 4. 1 . Oil prices, another terrible story, touching levels not seen since 2003. The price war between russia and saudi arabia is raging on and demand is dropping. This will be a difficult period for a number of Shale Companies at this price. This morning, its down 1. 73. The yield on 10 year treasury up this morning, back above 1 actually. Take a look. 10 year treasury yields up 3. 7 basis points at a level of 1. 116 . Coronavirus hitting markets pretty much across the board, stocks getting a tough impact. Investors are gearing up for a wild ride with futures pointing to a selloff of 821 points on the dow, 328 on the nasdaq and 92 points lower on the s p after the dow ended the day sharply higher yesterday. It was up better than 1,000 points but remember the day before it was down 2,000 points. Its been back and forth with sizable moves. Joining us on the telephone is Mobius Capital Partners founder, mark mobius. Thank you for calling in. You are a global investor, investing across the world. What are you doing now when you see the world being gripped by coronavirus . Well, what were doing now is looking for stocks that are really bombed out, that have come down a lot and dipping our toe in the water and beginning to just gradually pick up some. But you must remember that a lot of these countries in emerging areas are going to be in real trouble because of various factors but most importantly the slowdown in europe and the u. S. Will affect these countries. Of course, china and india will be impacted but the good news there is that growth rates are still going to be 4 or 5 . So if things dont get worse, that is. In south africa, where im talking to you from, here in south africa tourism has been hit badly and that is a big earner for the country. Maria so youre looking at the Tourism Impact in south africa, but across the world as well. You said a couple things there. You said what youre going to toys youre going to find out youre going to find some of those bombed out companies, companies that have lost so much in value and you think its overdone, is that what youre saying . Where are those opportunities . Exactly. And theyre all over the world. In emerging markets you have bargains in turkey and korea and taiwan, china, india, even here in south africa theres incredible companies that you can pick up at bargain prices. What were doing is saying okay, lets get rid of the junk and these are things in our portfolio that have turned out to be junk for one reason or another. The business turned badly. Get rid of those and replace them with things that we really like that have been bombed out. I think thats the best strategy. Nobody can call the bottom as you know. But you can see jump as weve seen in the last day that can really move these prices. Maria and are there sectors that youre looking at . I know youre looking at specific names. But in terms of groups, youve got groups like the airlines, the cruise companies, the hotels taking a big hit here because they are on the front lines of getting impacted. Do you think some of that has been an overreaction or is that justified . Definitely an overreaction in many cases, depending on the company. Have you to look at Balance Sheets. If the Balance Sheets of these companies are good, the cruises and cruise lines and the airlines, then they could be a terrific bargain at these prices. But if their Balance Sheets are weak, then you have to stay away. What im looking at is more consumer oriented stocks that are really strong, good Balance Sheets, good return on capital, anywhere in the world. Those are the ones that i think are going to see a big revival once this is all over. Maria what about Balance Sheets in the energy space, mark . This is another area that has gotten hit so hard. Exxon mobil, the stock is down it was down 30 in a week. When you look at names like that in the oil sector, for example, whats your take there . Its not going to go away. I mean, the worry now in a lot of these situations is are they going to cut their dividend. Thats a key. Of course, the good thing about a company like exxon is that theyre global and theyre diversified. There in many, many areas, in chemicals, et cetera, et cetera. They should be in good shape. I havent looked at their Balance Sheet recently. But that would be an example. I happen to be on the board of the remaining oil company and their Balance Sheet is very strong and theyre in good shape. So depends on where you are and what the Balance Sheets look like. But shale is going to be in deep trouble as can you imagine. So weve got to stay away from that area. Maria do you see opportunities, mark, in the United States . I know youre looking really globally and always find great opportunities globally but what about the u. S. . Any thoughts . Oh, yeah. Definitely. Lets remember, a lot of these u. S. Stocks are really global stocks. Even emerging stocks in a sense. Theyre all over the place. I think you have to look at those companies that are in these global marketplaces, have good consumer demand for their products and those were places where you want to be. By the way, in germany there are a number of Good Companies that are listed in new york that deserve a close look. Maria let me bring in michael lee who is an investor himself, alley mccartney is here from ubs. Michael, jump in. Hi, mark. How close do you think we are to seeing a bottom in markets worldwide . I think were pretty close. I think weve probably been bouncing off the bottom already. You must remember, rea were rey in a panic situation. I dont think this is like sars in the sense that governments have been shutting down everything and so its a panic situation where you see prices just go down dramatically for no good reason. Look at gold. Im amazed at gold, its gone down so much. I think in these circumstances, we are close to the bottom. Mark, can i ask you a question . So as we look at the 20 year treasury index having returned over 20 this year, we look at gold having given up all of its giveback yesterday, is there anywhere to hide for the next weeks or months, whether youre an individual or an institution, given the correlation weve seen to one and the lack of discrepancy between the way assets and companies are being treated . Well, as i said, youve got to go to those companies that have good Balance Sheets, strong Balance Sheets, and you think are going to continue paying dividends. But i think the safe haven is not necessarily cash at this stage of the game. With everything crashing the way it has, its a good time to be adding of course keep some cash, but gradually add to your equity holdings. Thats really the place to be in my view. Maria thats interesting that you would say that cash is not where you want to be right here. Thats right. Because youre in a panic situation. Everybodys retreating to cash. So what you want to be doing is finding those companies that are really strong, that have cash already, and invest in those and when the recovery comes, youre going to see a big bounce. Maria, want todd ask maria thank you very much. Go ahead, alley. I wanted to add something to that. Mark is obviously a fantastic investor. One of the things we started to see is maybe the disconnect or the difference of opinion and this may have to do with behavioral psychology more than sort of market discipline, but intuesdays have to put institutions have to put money to work right now. Putting money in cash will degrade their principal over time. Individuals who cannot or do not want to suffer the volatility that were seeing, i feel should still go to some safe havens. We are talking about unprecedented levels of volatility. The vics closed two days ago at 83. For those people that dont follow the markets, the vics is simply another way of saying what is the market saying about the level of up and down, the level of fear that is motivating the markets. At 83, what that means is that the assumption, the implication, the implied up and down movement of the s p over the next 30 days is plus or minus 5 a day. That is virtually impossible to sustain and hopefully will come down as buyers and sellers of volatility enter the market but that means if you are an individual investor, whether youre investing 1,000 or a million dollars, you should expect to wake up every day and continue to see these seesaw whipsaws and that is not something that most individual investors can stomach right now. Maria right. And its not by the way, its not something thats normal. We are operating in abnormal markets, theres no doubt about it. Great insights from everybody. Mark, please come back soon. We appreciate your time this morning, sir. Thank you very much. Byebye. Maria and now the latest on the coronavirus. The illness affecting all 50 u. S. States, West Virginia reporting its first case yesterday, the last state to do so. Kansas becoming the first state to cancel the school year while nevada ordered all nonessential businesses including casinos to shut down. Now the death toll in the United States, topping 100. 100 people dead in the United States in at least 18 states. Cases across the World Soaring near the 200,000 mark in 145 countries. The uaw and big three automakers coming to an agreement on the operation of its manufacturing plants during the outbreak. That deal includes new safety measures, deep cleanings and a rotating partial shutdown of facilities. Marriott beginning to furlough tens of thousands of workers. Employees will not be paid while on furlough but they will still receive health benefits. Staff reductions include everyone from general managers to housekeeping staff. Quick break and then coming up, President Trump speaking with executives from americas largest Restaurant Companies yesterday. Ill speak with one of those executives next up right here and how the industry is responding to the growing crisis. Stay with us. Back in a moment. T. Rowe price experts go 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. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. whistling maria welcome back. The Restaurant Industry deeply affected by coronavirus. More americans obviously are staying home. President Trump Holding a phone call with the ceos of top restaurant chains yesterday, talking about their response to the crisis and whats next. Joining me right now is one of those people, Restaurant Brands international ceo, jose phil. You were on the call yesterday. What can you tell us . Good morning, maria. Yeah, look, it was a small collaborative call with the president and the treasury secretary with a number of folks from our industry and i was very impressed with both President Trump and secretary of treasury mnuchin, their understanding of the challenges the industrys facing, the importance of the role of restaurants in this country, especially in a crisis like this with our delivery and drivethrough capability as well as mobile order and pay and pickup. We have an ability to feed america in difficult times. Its not something that the grocery business can handle alone. It was a very positive discussion. There was also a strong understanding and empathy towards the liquidity issues that Small Businesses face in america, especially franchise businesses, so a lot of legislation being discussed now is aimed at a dressing some of these liquidity issues, injecting capital into the business in order to address cash flow crunches that may come with a loss of revenue and traffic. Maria its an important point you make about liquidity. Ill get to that in a moment. First, you said its important for the Restaurant Industry to continue to help feed america. You cant have the Grocery Stores doing that alone. This is an important point. So are you shifting making changes to your brand in order to keep business going . You perhaps may not have looked at that if not for this shutdown. But now youre talking about the strength of a restaurant really being able to have more hands on deck in terms of helping people during this crisis. Yes, so we have at Restaurant Brands we have three brands that have over 10,000 locations in the u. S. , burger king, popeyes and tim hortons. Weve been working on delivery and mobile order and pay as well as obviously having a tremendous network of drivethrough locations. Weve been working with franchisees for the last several years, really ramping up our capabilities on the offpremise business which includes delivery and as well as drivethrough. So we were prepared for this moment. Obviously, theres a higher demand and the surge will come hopefully for the business from an offpremise standpoint. Our teams are ready. I think the industry is ready as well to do its part, to continue to feed america during this difficult time. One of the other areas that we were concerned with and we kind of adjusted our business, with burger king, we heard obviously that all the School Closings creates a big issue for children and families with children that rely on the School Systems to feed their children each and every day. So weve offered through our mobile app the ability for adults to bring in their children and get a free kids meal when they order through the mobile app. So these are initiatives that require change. Maria jose, real quick, we have a couple seconds here. How many of the restaurants do you think will not be able to get through this . Do you expect well see somebody said on the air the other day, a third of those to either have to be forced to close down or and what kind of a response do you want to see from the government . Is the plan on the table acceptable, in your view . We have were working closely with our franchise owners to ensure theyre set up the right way to handle the crisis in this difficult moment. Theres going to be some necessity for Government Intervention through loans and shortterm loans to address liquidity issues and relief on payroll taxes. We think well be able to weather the storm. We have resilient franchisees and a healthy system. Were working closely with our owners making sure were prepared to deal with the worst of circumstances and hope for the best. Maria great to have you on the program. We wish you the best. Thanks so much. Thank you so much. Maria jose phil, come back and update us on how things are going. President trump just wrote i will be having a News Conference today to discuss very Important News from the fda concerning the chinese virus, says the president this morning. Quick break, then President Trump proposing injecting 1 trillion into the u. S. 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The president spoke at the white house yesterday. Watch. Payroll tax holiday would get people money over the next six to eight months. Were looking at sending checks to americans immediately and what weve heard from hardworking americans, Many Companies have shut down, whether its bars or restaurants, americans need cash now and the president wants to get cash now and i mean now, in the next two weeks. Maria the plan also includes 300 billion to help Small Businesses and another 200 billion in stabilization assistance. Back with me our panel, dagen, allie and michael. Its all hands on deck and anen more us in amount of still enormous amount of stimulus. Markets arent buying it. Dagen they arent buying it, you need more than 1,000, only going to people that need it. Also a solution is needed more clearly on the help for businesses that essentially have no revenue outside of the Airline Industry, that yet again has come to the federal government for a bailout. These are companies that this is not a 100 year storm. They got a bailout in 2001 and some of them have been bankrupt since then. They didnt plan for this event. Theyre getting help from the federal government yet again. The problem is, it will be initially, according to the wall street journal, 250 billion in the direct Cash Payments but then another 250 billion potentially, thats half a trillion dollars. If its going to people who are still working who have income, thats not where the money needs to be directed. Im going to point you to a hartford current story that in connecticut alone, 10,000 jobless claims were filed monday. Nearly 10,200 more came in tuesday. The total number is 30,000 jobless claims since friday. The typical number is 3,000 to 3,500 a week. This is going to be happening across the nation. Those are the people who need the assistance. Maria yeah. I wonder if go ahead, allie. Look, there is massive, massive uncertainty in the ability to quantify it. But we do know the direction and we do know where the effects will be felt most. This feels a lot more like 2001 than 2008. This is a public Health Crisis that has become an economic crisis that is creating a financial crisis, so we have to deal with it as that. To date, global fiscal policy has added about 1 of global gdp to the numbers and were probably looking at a 30year low in global gdp at 2 . But thats okay, right. And as long as we support the industries that we need to support, we need airlines here a year from now, we need hotels here a year from now, then we should be in a better poe suggestion. Consumers are already starting to feel this and i dont know if there is a number big enough right now to assuage the market. Maria everybody is pulling together to get through this. We will get through this. Stay with us, more mornings with maria right after this. Sure, principal is a financial company. But think of us as a protect your family as it grows company. A put enough away for college company. And a take care of your employees company. Were a help you ride the ups and downs of the market company. And when its time to retire, were a weve been guiding you toward this all along company. Think of us as all these companies, and more. Principal. Retirement. Investments. Insurance. Maria welcome back. Good wednesday morning, everybody. Thanks so much nor joining us. Im Maria Bartiromo. It is wednesday, march 18. Your top of stories, 7 32 a. M. On the east coast. The wild ride on wall street continues this morning, futures pointing to a steep selloff at the start of trading, we are hitting limit down, meaning we will see a sharper decline at the start of trading. Markets are down 5 , down 821 points on the dow futures, down 328 on the nasdaq futures and down 92 points on the s p futures right now. This on top of news yesterday of a trillion dollar stimulus plan, that news fueled a big rally in stocks. Markets closed at session highs yesterday with the dow up 1,048 points at the close. The nasdaq was up 430 points at the close, s p up 143 points, big moves across the board. The nasdaq and s p 500 with their second largest point gain in history. Lets check Global Markets. They are taking a cue from wall street, steep selloff underway there as well. The fq100 down 210 points, cac is down 182 and dax index in germany lower by 403. In asia overnight markets started with an early rally but then reversed course by the close, finishing in the red. As you see the kospi in korea and hang seng in hong kong worst performers, down better than 4 . The u. S. Is getting ready for a long and hard battle. The federal government has the coronavirus pandemic lasting 18 months according to the New York Times this morning. Asian countries like south korea, taiwan and china which had covid19 under control are now starting to see a second wave of imported cases. Prompting fears the disease could return. Joining me right now is John Hopkins School of Public Health professor, fox news medical contributor, dr. Marty makarie. Thank you for joining us. Should we be concerned that were seeing this second wave meaning that people who have recovered and thought they were out of the woods are now seeing is come it come back . The idea of a second wave is certainly very scary and its happened with other pandemics. The reality is, were not far enough along to know and historically, maria, we know that second waves are relatively rare. So i think we can look at china, at wuhan and say, you know, i think they are probably okay now. We need to be cautious. We dont want everybody going back to full life as normal in china just yet, until we can study this thing. But i think were going to be beyond this by summertime. Historically, pandemics take three months, that was spanish flu, that was sars, that was mers. Maria wow. Why is that . Why do pandemics take three months . Theres a lot of things we dont understand about novel virus mutations, but im not a virologist. Historically, thats what we observe in Public Health. Maria let me ask you about some of the shortfailings here, that includes the fact that we are worried that we dont have enough beds in hospitals and then the red cross says that were facing a severe blood shortage, the American Red Cross is urging healthy americans to donate blood as the coronavirus impacts supplies. Is it safe for people to head out and donate blood right now and whats your take on some of the shortages that were seeing . Will we run out of bed space . Well, that is the big concern right now. If i had two giant concerns about this pandemic, beyond its death toll, its overburdening the u. S. Healthcare system and its whats happening overseas. I mean, what are countries like india doing . Where we know that poor sanitation that is in india is a vehicle for transmission because of the oral, fecal spread. So i mean, some countries out there are about to get hammered far worse. But the bed situation around the world and also in the u. S. Is a problem because, remember, we rank 32nd in the world in the number of beds per population. Whjapan has 13 beds per 1,000 people, we have 2. 8. We only have 100,000icu beds. Our opts functio hospitals funcl capacity or near full capacity at baseline. To expand up to 200,000 beds, its going to be a real lift. I mean, wuhan built 19 field hospitals in a city of 10 million and was totally overrun. So weve got to gear up for that one spike and also for the fact that our healthcare workers, some of them could be out of commission during that same big influx. Maria do you want to see the military get more involved in terms of the military helping with to create makeshift hospitals, makeshift clinics . Look, i want to see everybody get involved. I mean, this is going to be all hands on deck. The military has its own Healthcare System. They are starting to mobilize and draw up contingency plans. Theyre good at building field and tent hospitals. They can put an operating room in the battlefield. Were going to need icu beds put up in the United States starting with those areas most affected. So, yes, weve got to get a young, Healthy Workforce out there, protect and isolate our seniors and those most vulnerable, and weve got to get out there and weve got to fight this thing. Maria all right. We will leave it there. Real quick, are you seeing shortages in certain drugs at Johns Hopkins . Are there antibiotics that we are running out of because theyre produced in china or is this supply chain back online . Johns hopkins is incredibly wellprepared, in my opinion, one of the best prepared in the country. I dont speak for Johns Hopkins but i can tell you right now capacity is going way up as contingency plans are drawn up to stop all elective care. If you dont need to have some medical care done in the next three weeks, please wait. As long as theres no increased risk. We need to prepare and gear up. Maria of course. Doctor, thank you so much, sir. Appreciate your time this morning. Good to be with you. Maria tensions hit a new high between the u. S. And china, meanwhile. Cheryl casone with those details. Cheryl thats right, maria. China revoking the press credentials for three u. S. Media outlets, working for the New York Times, Washington Post and wall street journal must turn in credentials within 10 days and they are barred from reporting anywhere in the country. China says the move is in retaliation to the u. S. Placing a cap on chinese journalists allowed here. China launched a propaganda war with the u. S. Over who is to blame for the spread of the coronavirus. Soft bank backing out of part of the planned bailout of wework. The wall street journal said soft bank sent an email to wework investors saying it may not buy 3 billion of the companys shares, nearly 1 billion is stock held by former ceo adam newman. Its not expected to affect the lifeline they agreed to give to wework. Hearts in boston are breaking this morning, legendary Quarterback Tom Brady announced yesterday he is parting ways with the team of 20 years, now its being reported he will sign with the tampa bay buccaneers. The yet to be announced deal is rumored to be worth 30 million a year. Neither side has confirmed that. And finally, maria, social distancing and netflix, introducing netflix party, an extension made for the Google Chrome browser so you can have netflix parties with your friends virtually. Theres a chat room so everyone in the group can react together. Its been available for years but it recently became popular because of the virus outbreak, maria. If you and dagen want to have a netflix party, you let me know, im available. Maria absolutely. And how great are the American People . How great are American Companies . How great is america . They come up with whatever it takes to get through it. I love it. Thank you so much. Cheryl. Cheryl you bet. Maria thats why we will get through this. Well take a break. When we come back, the white house stimulus package failing to calm investor fears this morning over the growing virus pandemic. The threat to the oil industry, we will take a look with oil now at 25, 25 a barrel. Stay with us. Woman my reputation was trashed online. I felt completely helpless. 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. whistling maria welcome back. Oil prices and coronavirus, crude Oil Prices Sliding to their lowest level in 17 years amid this outbreak. The industry facing continued link demand for dwindling demand for oil. Joining me now steven shork. We talked about oil prices in the past. You were not expecting 25 a barrel. This came at us as a surprise. Whats your reaction to all of this . Well, maria, its groundhog day, this is 9 11, desert storm, Hurricane Katrina rolled up into one and were waking up to it every day. Were in unchartered waters. We made the executive decision yesterday to make Research Available free to all Market Participants until we get through this situation. Now, lets paint the picture. Youre right, a month ago when we looked at oil prices, the United States was at Record Crude Oil production, Record Crude Oil exports. Since october, when we look at net exports of crude oil and petroleum products, United States has been a net exporter of oil since october, at approximately 150,000 barrels a day. Now, this situation and the refusal of u. S. Oil production to pull back, because all indications was this supply was going to increase through the summer, was the antisee den ano the price war between saudi arabia and russia. Why would russia increase production. Why would russia pull back reduction and lose market share to the United States. Now you have the double whammy. You have increased supply not only by the United States now but also saudi has ramped up its output and so will russia. Now you juxtapose that with the pandemic and the fall in demand and when you look at the term structure, nearby prices have collapsed. The market tells us it expects demand to fall precipitously over the next few months. Its an extremely dire situation in the oil markets right now. Maria i mean, its a dire situation and i dont think its any coincidence. Here we are facing a crisis. What does russia do, comes in and says look, we are not going to agrees to any agree to any cuts. That sends oil prices lower. To these players, saudi and russia understand theyre hurting their own business as well by pushing price toss 25 a barrel . Absolutely. Its reported both of these countries have more than a half trillion dollars sitting in foreign asset reserves. Saudi arabia its debt to gdp ratio is maybe 25 . So both countries do have the wherewithal to get through this. Who does not have the wherewithal to get through this are the smaller shale producers in the United States. We are in the midst of a bloodletting and this market that we have never seen before. Maria again, michael lee jump in here. This what is we were expecting. Russia wants to put shale producers out of business. Steve, just the flip side of this, when will consumers see this in gas prices in i mean, weve seen a 40 decline, 50 decline in the price of oil. Are we going to see that at the pump when we go to fill up our cars . Absolutely. Mike, well start to see that over the next couple of months. Were looking at a National Average now which was right around 2. 42 a gallon. Were well on our way on a National Average of seeing sub 2 gas. There are going to be certain market areas in low tax states like texas and virginia where youll see prices well below 2. And you have to keep in mind that come may, come june, retailers excuse me, refineries and terminals have to have summer grade gasoline in their tanks and retailers need that in their tanks on june 1st. Were at that moment when we transition to summer grade gasoline, keeping in mind that summer grade gasoline is harder, more expensive to manufacture. When you just take pose that with nos juxtapose that with nol demand, you do have higher prices. Thats not going to happen this year, obviously with oil at 25, and look, you said it before, our models when we run our simulations through shork we were looking at worst Case Scenario this month oil in the low 30s. Were now below the standard deviation in the mid20s. We could go considerably lower even at this level. Maria you thin think we couldo lower even at this level. Thank you. Absolutely. Maria steven well be watching. Coming up, the future of medicine, how healthcare giants are turning to Artificial Intelligence to fight the spread of coronavirus, thats next, right here. Back in a minute. Good morning oh no, here comes the 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. Some people say thats ridiculous. I dress how i feel. Yesterday i felt bold with boundless energy. This morning i woke up calm and unbreakable. Tomorrow . Who knows. Age is just an illusion. How you show up for the world, thats whats real. Whats your idea . I put it out there with a godaddy website. Make the world you want. Maria welcome back. The coronavirus putting the spot light on the Global Healthcare industry, countries across the world are pledging billions upon billions of dollars to fight this virus. But the spending will not stop with covid19. My next guest says healthcare is the industry of the next decade and spending will be astronomical. Joining us now is alex tirkeltab. We are living longer, obviously seeing lots of innovations. Tell me where you see the capital coming into the Healthcare Industry and why you believe it is the industry for the coming decades. Perfect. Before we do that, we should step back and say before we think about the long term, the most important thing in the next two, four weeks, eight weeks, is to make sure that people who are unhealthy get healthy, that our Healthcare System doesnt get overwhelmed. Before we think about the opportunities, the most important thing is to do the things weve been talk bought this morning. My view is that this is really the 9 11 of healthcare where the governments are going to realize that not only is healthcare an important industry in and of itself but it has mass ive implications r massive implications for the broader economy as pandemics are likely to repeat themselves and spread. That means there will be massive amounts of spending both government and private where three big categories. Number one, diagnostics. Understanding what diseases people have, how it spreads, what are the genetic makeups of the diseases and how to apply existing or new medicines to them. Number two, primary care and access to beds. Were seeing massive shortages in italy. We saw this in china. Were likely to see this in america. Investment in access to care, primary care, simple hospital care is going to require a lot of investment. And number three is understanding how technology and Artificial Intelligence can really help design either new medications or repurpose existing medications quickly. Because its clear that covid19 is one of these but there will be multiple examples and existing medications can be repurposed or new ones developed quickly. All of this means more Core Research and more infrastructure and more spending across the next few years. Maria you say some of that spending will be on ai, Artificial Intelligence you say will be the king and queen of this new spending. Why is that as opposed to say, vaccine development, what is ai doing . Number one, i dont think those two things are really separate. Youll use Artificial Intelligence and technology to speed up vaccines, understand how patients progress through disease, understand the genetic makeup, the diagnostic space is becoming dominated by ai anyway. Thats one. Number two, you want to understand what are the likely evolutions of these diseases and what are the likely next versions and all of that requires Artificial Intelligence. Most importantly, one of the things weve been unable to do through this particular example, but hopefully will be able to do in the future, very quickly isolate the early patients, understand the genetic mutations that are in the virus, understand how patients respond to it and who really is at risk and concentrate resources for those patients. All of that requires a lot of data and analytics to isolate the populations at risk and to understand whats driving the disease. And furthermore, if you think about Drug Development today, its all about Artificial Intelligence. If we do it the Old Fashioned way, it simply takes too long. Maria right. I agree. Ai is getting us ahead of disease because its remembering and understanding very quickly where the big issues are, but what about let me take you back to the near term. You started our conversation talking about the near term and longer term. Are you worried in terms of running out of beds, running out of medical equipment, all of these issues that are front and center now in the face of this virus . I mean, i think its clearly an issue there will be supply side issues. Im hopeful four things happen. One, Hospital Systems in america, often they operate independently, are already taking steps to prepare themselves, renting more space, preparing beds, preparing ventilators, delaying nonessential surgeries. Number two, if we do the right things in terms of social distancing and possibly self quarantine and other measures, the spread will hopefully not be as bad or rapid as in other places. Number three, we have the most innovative pharmaceutical industry in the world. And the best minds are working on developing some sort of therapeutic and im optimistic something will be available in the next few months. And four, hopefully americans are doing the right things to control their behavior and make sure that if theyre sick theyre getting a test done early. Maria got it. Alex, thank you so much. Well be right back. 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 . 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. Good wednesday morning. Thanks so much for joining us. Ima 345. It is wednesday, march 18 your top stories right now 8 00 a. M. On the button east coast, a trilliondollar stimulus package the white house looks to offset economic he impact of coronavirus put money directly into americans pockets treasury secretary mnuchin warning unemployment could spike to 20 , if the action is not taken. The wild wide continues this morning to participants steep he o selloff start of trading limitdown meaning we could see a sharper decline start of trading, what we know that is the dow futures down 821 points right now, that is limitdown. Nasdaq frourts down 328 s p futures lower by 92. This on top of news yesterday of a stimulus plan, fueled a rally in stocks, markets closing session highs 4 00 on wall street dow industrials up 1048 points nasdaq up 430 s p up 143. Boeing under pressure this morning to cut about 140 points off dow industrials at opening of trading one analyst says makes sense for the jet maker to suspend its dividends, no comment from the company but investors are certainly reactinging to that worry stock down 18 dollars right now. Confirmed coronavirus cases now in all 50 states, kansas has become first state to Cancel School for the rest of the year, overall cases topping 200,000 cross the world number of deaths right now, hitting 8,000. Travel industry a hit Hotels Casinos vegas latest to shut down telling President Trump they are forced to lay off thousands of people. Mornings with maria is live, right now. He Global Markets as we see a sharp selloff on wall street i european indices also selling off, the ft 100 down 252 points in london right now cac quarante in paris down 205 points the dax index lower by 47 points we are looking at declines 5 , pretty much across the board, European Union cloungs closure of borders 30 days to industry to slow spread of coronavirus markets early rally reversed course finished sharply in red kospi korea down almost 5 hang seng in hong kong down 4. 1 , oil prices, tumbling levels not seen since 2003, this is indicator of weak demand globally price war between Russiasaudi Arabia waging on demand drops oil down 2. 19 a barrel now below 25. At 24. 72 a barrel. Just heard from steven schor says will likely go lower yields up, the yield on 10 yes, sir treasury rising this morning, back above 1 , up 3 basis points on yield Coronavirus Crisis, it is affecting all 50 u. S. States West Virginia reporting first case yesterday, the last state to do so and death toll United States topping 100, 100 people dead in u. S. At least 18 states, President Trump, and Coronavirus Task force have been getting daily updates here is what he said yesterday. So it is 15 days from yesterday we will see what happens after that if we do this right, our country and the world frankly but our country can be rolling again. Will the pretty quickly pretty quickly. We have to fight that about invisible enemy that i guess unknown but we are getting to know it a lot better. Maria joining me right now chief of staff to president Vice President mike pence, mark with us good to see you this morning, thanks for being here, thanks to the Vice President , for his leadership here let me ask you this, why does focus on next ebb two weeks . Because a we are seeing europe close borders 30 days you are seeing next two weeks, really, front and center for the president telling us to make sure to stay home as much as we can, are we about to see Something Different in the next two weeks . Omara thanks for having me on this morning, i think it is important to remind you consistently what Vice President reminded us the risk to average american remains extremely low reality is many people may getting affected asymptomatic low systems to risk is to older population especially Underlying Health conditions, for the challenges, how do you make sure that the spread doesnt reach that that about affected population your question what you are seeing in europe reality is this president took measures long before europe did to protect us from travel from china, and then also to put in place travel ban from europe. And so europe is a little bit behind that curve, that is why the 15 day measure that we are taking, is we have seen outbreaks consistently and also with this virus itself other coronavirus this a bell curve where outbreak happened what this administration is trying to do 15 day guideline shorten duration lower impact. That is what these are intended to do next 15 days, we are asking americans to make significant sacrifices in order to help us accomplish that in some Asian Countries weve seen where they have had dramatic measures they were able to bring the virus shorten bring that will be ub curve to an end weve we are asking cooperation of American People to help in that that is is what we are asking next 15 do as taking steps our doctors, and those in Health Care Experts say if we take these steps to protect us, have more distant social distancing we will see that curve come down hopeful duration shorten why asking people to cooperate go to coronavirus gov follow guidelines 15 inadequacy. Having said that now that most of the tests are out you are continuing to send out more tests to people can gauge whether or not they are skik or test themselves, we will see the numbers spike, what kind of a spike are you expecting . Well, we do expect to see numbers increase alarmly maria i think it is important to remember couple things, one when south korea implemented widespread testing talked to people had symptoms we are in season high allergies, people already have fevers had coughs respiratory challenges of 250,000 tests 96 negative we are seeing dynamics in United States beginning to test heavily a lot of people test negative it is flu season so we do those testing months in to go up, but as numbers going obviously, mortality rate comes down you are seeing the that more and more people infected if number of comes up denominator larger enumerators sustained. The important talking about elderly because you may have it and not know it but you the to go see your grandparents your parents, is that a dangerous thing should people be staying away from parents and grandparents . Maria that is exactly right, that is why the president Vice President brought over 10 days ago, all the ceos nursing home president s nursing home association, to put in place new guidelines, to restrict access to from family going to visit right now, again, it is not a permanent but in this time not the time to visit, about the elderly particularly those have other Health Conditions in Nursing Homes you are right the reason widespread guidance American People, is not because perhaps children are younger or at risk it is because if infected can be carries to populations at risk. The Economic Impact of coronavirus white house looking to offset that impact put money directly into americans pockets trilliondollar stimulus plan treasury secretary mnuchin stressed the urgency yesterday watch this. Were looking at 10 day accepted heing checks to americans immediately when we have heard from hardworking americans Many Companies have now shut down, whether bars or restaurants, and americans need cash now the president wants to get cash now, i mean now, in the next two weeks. So the president also reaffirmed this sentiment in a tweet this morning President Trump talking about, this saying for the people that are now out of work because of necessary containment policies, for instance shutting down of hotels bars restaurants, money will soon be coming to you, the on slaughter of the chinese virus not your fault we will be stronger than ever however secretary mnuchin warned that unemployment could spike to 20 . If action is not taken mark, that is a serious number. Are we going to see unemployment ridse regardless. I think likely i dont ii think anybody foreclosureing 20 secretary mnuchin saying in lynn chen with gop members to say here is a different actions he would take under scenarios but nobody that i know is forecasting 20 unemployment from the coronavirus if the president suggests the foundation for economy remains incredibly strong this is a short term we believe challenge you have seen the curves go up you 8 to 10 weeks overseas virus had outbreak trying to make sure people most being impacted short term get resources they need if in a quick fashion what secretary mnuchin was looking to do they are getting impacted by the virus, but foundation is strong as president you heard him say yesterday we believe the economy will bounce back in a hurry, once we get over the hump of this virus. I like what you are saying you have short term challenge we hope it is short term, quick mark before you go i know that xi jinping in china is sending people back to the factories, go back to work, i understand, that it has slowed quite a bit in china, but is that smart to get people back right now i mean doesnt that increase spread and if we are waiting for second wave here, will there be a second wave there then export that cross the world . I think a great question maria i think that you know we have heard from other ceos that commerce is returning in china, and that in asia, where the outbreak started there has been some return. But you are right. I think you have seen china actually enforce her own travel bans to make sure outbreak happening elsewhere doesnt come back in their country i think unknown questions we are going to have some same questions our Health Experts have to guide us on hopefully in next few weeks. Mark thank you so much, we will be watching obviously, marc short good to see you. Thank you. Thanks, maria. Quick break uncertainty volatility over coronavirus leaving investors asking if markets should be shut down. I will ask new York Exchange president what plans are for the floor of the nyse back in a moment. Infrastructure firsthand, we can make better informed investment decisions. Thats why i go beyond the numbers. Like a hybrid with best in class epa estimated range of more than five hundred eighty two miles. And ford copilot 360 technology to help you outsmart some of the things youll encounter on the road. With more available second row leg room than a chevy suburban. This is the completely reimagined, street smart 2020 ford escape. Maria welcome back, futures indicating is a sharply lower opening take a look dow industrials down 821 points right now, wall street rebounded yesterday, jumping nearly 5 on the session yesterday. When Trump Administration announced a one trilliondollar stimulus plan, the coronavirus developments caused markets extremely volatile as you know, with volatility index of vix hitting 84 this week joining me president New York Stock Exchange Stacey Cunningham i know your leadership is critical, at this moment in time. Can you characterize that you have been going through what steps youve taken to mitigate the the volatility and issues . I think everybody around the country is trying to focus on how do they keep people safe how do they protect, their local communities, and were doing the same thing, and continuing to provide service to keeping markets resilient during this extraordinary period of uncertainty those are types of things that we are working on making sure that we can protect not just people in building but communities when they go home. So stacey, i mean, when i was on the floor, you know 20 years ago, regularly there were 5,000 people floor of New York Stock Exchange five rooms, of course, you know you are one of those people, and today, how many people would you say you have on the floor . There there are fewer on trading in any way, shape, manner or form than when you and i started on Trading Floor despite that. I mean. Great distinguished number of People Congress into building right now we sent hundreds home to work remotely even many brokers that are on the Trading Floor, have switched to team so they are covering for each other send outub in of people on Trading Floor taken a you in of precautions to ensure cleanliness of the floor sanitizeing the floor, employees, anyone coming into building screened on the way into the building, if they are exhibiting any kind of symptoms at all, or dont dont require any additional concealing get testified for covid19 asked to go home until results come back that way if anyone tests positive they are not ever let into the building waiting to get tests. I think it is such an important point you make we have been talking about how people are getting, their temperatures taken, but the reason i asked about the number of people obviously, because i know that even before this you had 4005,00 people on the floor, as markets fluctuate some people are calling to Stock Exchange to shut down temporarily you pushed to keep it opening keeping trades on the floor talk to us about that, you know youve got the opportunity to shut down the floor. Yeah. Maria what is maria two very, very different points, i am glad you brought it up, closing the markets, is a very different thing than closing the floor. We feel strongly markets need to remain open, and that that is a one hundred percent. That is a view shared by the Administration Shared by our regulators by industry more broadly, i understand that people are concerned about the market moves a lot of Retail Investors would like to see selloff stop, but closing the market one does not stop markets anxiety that anxiety what is people are feeling every single day, so closing the markets did not change that, two, people need to have access to their money, and we are not a country that is going to say you just cant have access anymore because we dont like the way markets are moving, people should be focused on the long term we will get through this the markets will recover if we step back people er arent trying to trade market activist in 401 k s much better off. Keeping floor open i totally agree no one is saying shut down the markets, i am talking specifically about the Trading Floor, because you know you can do business without the Trading Floor isnt that right absolutely we know how to run electronic market run several electronic markets today we have been working closely, with local city, state federal officials, as well as our regulators all supportive keeping the floor open to help dampen volatility during this period of time no one proposed close the floor, people on the floor want to provide the value that they do to investors every single day they want to come in, but weve take place precaution to say protect them and communities like testing i will referenced those are things we are doing intrg social distancing on the floor arent so many people not close together steps weve taken to protect the community and their communitys at home we havent been getting asked to close floor we have seen very much during volatile period, how helpful it is to have these people, applying human judgment to moments last friday oil reserve announced that president was going to fill Oil Reserves Oil stocks took off dramatically they slowed that down to focus on price discovery safety first 23 it will gets to point we need to close floor ready to do that any moment in time something we did not start toasting past weeks we tested every same quarter with clients something key rest regularly can do any point in time we havent made that decision to do it yet. Stacey Important Information you are giving us this morning, thank you so much. Thanks, maria. We will see you soon Stacey Cunningham from New York Stock Exchange, we are watching sharp declines at opening of trading this morning volatility is rocking wall street, New York Stock Exchange president cunningham telling me moments ago feels strongly markets must remain open they are ready to close the floor should they need to, she is now navigating that turbulence. Back in a moment. 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. Thats it. Im calling kohler about their walkin bath. [ sigh ] not gonna happen. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Welcome back, uncertainty surrounding the deed coronavirus outbreak sending stocks on a wild ride. Futures are lower again we are limitdown, the are dow futures down 821 nasdaq down 328 s p down 92. White house stimulus plan failing to calm investor fears one trilliondollar plan to bring back dagen, michael this morning to talk more about this, i find it extraordinary, that the markets are not reacting positively to anything in this volatility michael, is with us now, how do you see things . Maria if you bring up the s p 500 ewant tf looks down 6 1 2 i have been tracking this morning some points down over 7 meaning that we have another day of halted trading volatility here volatility needs to stop, i think weve seen great signs from administration backing away from payroll tax for for stimulus looking more to get direct funds the problem is dagen mentioned a bunch this week that is not keeping doors of Small Businesses open, on the other side of this we need some sort of Business Interruption insurance something along the line that will allow businesses to reopen, because he otherwise, there isnt going to be recovery we are hoping for. Maria i want to point yes. Go ahead. Treasury secretary mnuchin said yesterday about something you just brought up with New York Stock Exchange why should as a matter of fact remain open . He said people need to know they have access to money, so having the market function you can see, where stocks are trading or in overall markets it goes to people not getting freaked out and having a run on cash a run on Banking System we have talked about about this anecdotally i know people have gone to the bank tried to take out thousands of dollars one time, so it is a way to at least remove that fear prevent any panic, in the markets, just wanted to point that out. Maria i also want to the markets cannot shut down, that would be absolute mayhem i was throttle not referring to that, because that is not even in my mind that we would close down markets that would be specifically talking about closing the floor, but go ahead because you mentioned earlier, in terms of clients, and what they are doing you have to actually communicate with them well. I am literally have spent as of many colleagues my team has done this now we are doing this today, people from seven locations, we have on the phone all day, we are calling getting information, we are taking peoples temperatures, we are actively deciding to do one of three things. Nothing buy or sell into Different Things as mark moebius said early i agree completely with you and stacey having run a desk before at lehman actually that the markets have to stay open but what i want to make clear is while the markets are open, liquidity is super thin liquidity is not only thin because of changes to the volcker rule the pr. Op desk rule after financial crisis it is limited because some, for example, the options derivative exchange super thin now cboe closed doors effective last friday. There are may be a third of people on every Trading Floor, and, again, to point made earlier today there is no the Principal Risk that stepping into this market we are matching buyers and sellers even though the markets are open do i not want anyone to think they are function being as normally going to continue to feed into heightened volatility. Dagen i want to point out i wasnt suggesting you were asking about that closing markets a lot of individuals want to know, because their watching the market and it heightens anxiety a question raised with Steve Mnuchin i new that is not what you were asking stacey about. Maria i no i know. Dagen one thing giving investors more anxiety what has gone own in debt instrument they so the safe wake short Term Investment grade bond etfs in a matter of days, literally lost years worth of yield. Now i looked at one short term etf Investment Grade yesterday up a little bit but that does not it did not recover from losses it had in recent days, there are a lot of individual investors who were in safe investments, that have lost quite a bit of money, that is just part of the disruption in fixed income markets again adding to the anxiety and fear that you see, in in broad markets. I wanted to ask Stacey Cunningham alley brings up in terms of regulations we ran out of time with Stacey Cunningham would i like to mother what kind of regulatory changes are needed like volcker rule, even if just are a temporary situation i think you are right a massive issue, about in terms of keeping markets tight. Maria a massive issue, and, you know, there are even the unintended consequences what we are dealing with, for example, none of you should know about with a reg d is the ability to give margin on Money Market Funds whether you open Money Market Fund or u. S. Dollar cash you should have an extraordinarily high almost one hundred percent lending value, and you should be able to have that immediately. The you have to have 30 days, until you can use it as collateral that means there are switching costs but, again, i dont think that congress or government ever intended that they are making this market very, very difficult and there are a lot of things that were pendulum swing results, of the regulation and, quite frankly, Consumer Protection around the financial cries that are actually making it really, really hoaard. Good point you are making. The other thing that i think is equally of importance i urge lawmakers to think about that the unintended consequences that if you are a client looking at your mark to market on portfolio if you have 5050 bond equity ebt portfolio you are seeing mark ie if you sold it today down 13 to 15 , again that is just mark. As long as you dont sell. Maria right. Those are indications of spread doesnt mean your value. That is right all on paiper. Economic data coming outbuilding permits Housing Starts Lauren Simonetti with numbers right now. This is for the month february, you look at Housing Starts, groundbreaking new homes for february fell 1 1 2 to 1. 599 million from month of january. That was a little bit stronger than expected, we will get 3er789s future buildings this is disappointing down 5 1 2 to 1. 464 million. So issue questions here, now that we have the coronavirus for mid march when you see that spring buying does coronavirus kill the march numbers spring buying season . Do we just do peak of it in february, january numbers, by the way, revised higher, rates very low attractive to a lot of people but a lot of people are scared open houses are being canceled changes in the how big market i gave you february numbers. Maria everybody is making changes lauren thank you Lauren Simonetti on building housing numbers fushts another steep selectively down 821 dow, New York Stock Exchange check with Kristina Partsinevelos there. Kristina. You are right seeing sea of red right now he seems like every day, green, red, green, red. I walked in one trader said seems like only come will when there is a circuitry breaker i am queen of criteria breakers what i mean by that s p 500 if it falls 7 we are expecting again this morning, then we will see a pause of 15 minutes so that level that we are looking for s p 500, is is 2352 you can see on screen 2393 not that far off. Quite a change from yesterday when you saw this thousandpoint rally throughout the day there you go on your screen there dow jones 21237 again volatility roller coaster you know commonly used in financial media, i want to talk though about the 10year yield the fact that normally, when you see a selloff you see people moving, to lesser assets seems like a hunt for liquidity the moment 10year yield climbing above 1 one note from declared saying hedge funds are alonging for cash teller selling government bonds, over the fear that the government is possibly issuing further stimulus efforts over next coming days so the this is something they want to get rid of get rid of some government bonds, i want to talk boeing because that the weighs to so nelling on dow share price 101. 98 down almost 18 , boeing said that they support 60 billion dollars in government aid, this is a cone that has to deal with grounding 737 now the coronavirus, you see United Airlines delta parking planes odds doernt going through down 55 week, 27 president earlier this is just a few days ago said this is administration would supporter boeing so this is next big debate, how, the administration would come through helping the Airline Industry you can see boeing selling off dramatically back to you. Maria yeah, there is a lot of legs to the Airline Story obviously, boeing is critical to that story getting hurt as much as airlines if not worse, kristina thank you Kristina Partsinevelos on wall street coronavirus testing breakthroughs, medical Device Company holigis 347b8 use authorization from food and drug for covid19 tests joining me Steve Mcmillan good to see you. Thanks for being here tell us the importance what you just got, this authority from fda. Sure maria great to see you. Thanks for having us on, so proud of frankly our industry, this is where American Ingenuity resource fullness entrepreneurism is seeing us through he approval weekend team working around the clock since sequenceed the gene involved in this on saturday submitted authorization to fda worked all weekend with fda on monday they cleared it, as of this morning, we are shipping product to get the tests out, the great advantage of our test is it is a high throughput test a lot of original tests almost kitchen chemistry people in labs trying to work individual tests. Ours is a high throughput system you can 1100 one machine per day you can get results in about three hours machines in hospitals, for example, in new york north well number of hospitals have them, so we will be able to get very quick results, to patients, in need. Steve let me ask you about the test itself i was told that the this is a swab test right you swab and then you will get the dna but i was told the swab coles from italy is that right. There are different swabs, that from different companies, ours actually do not. So there are a number that were coming from there ours are not sourced from italy most of ours from u. S. Brings up the broader issue getting sourced, so many important products sourced from overseas foreign places like china, and certainly many places in europe. How significant is that in terms of the products that you need today, and are they about accessible given produced oversees as a company we have been one few company has not moved things outside, our all of our assays, produced in the san diego facility here socially distanced this morning, 3,000 miles from you, team in san diego, we source about plastics other things from other sources but most of our supply chain is in the tact most actually from United States we feel very good. Maria great news. Our production, ramp just like as company we make all our 34578graphy machines we are world leader d mammography in danbury connecticut, newark delaware this is one of the times, quite frankly, i am very proud that we did not race move everywhere, overseas and frankly our teams are working, by the way, for all the talk about shelter in place you should be proud our industry our company, people are showing up for work every day, there is is Incredible Mission to make a difference in the world our scientists this is what they live for production people showing up to make a difference. Fantastic. I love this, everything you are saying in terms of your production, whether it is mammography machines i know are being deployed increasingly across country hospitals across the world what else can private sector do in terms of where we are right now . When it comes to the test kits which youve gotten fda approach are there enough can i have thes we know issues they had about incredibly with kits. I think private sector coming to rescue as we always do i think between us and frankly some of our competitors, who are also approved testing increasing by day i think we will be in great shape the best thing that is going to happen as tests oet out i believe in a couple weeks time we are going to see so many more people tested many who are negative, many, many who have had it, are actually going to be doing quite fine. You know part of the hysteria right now is unknown that people think everybody that gets coronavirus is going to end up, are dying or Something Like that. The bulk of the people that is not going to be the case it is going to be a bad flu like symptom, and you know i look forward to two, four weeks from now a bunch more people and cases will spike but start to have people on the other side of the curve where everybody can say i had it i am fine i am ready to go back to work. And thats where i think the hysteria will come down Interest Company frontline to help get to that point. Do we get immunity once we have had it if you had corn coronavirus do you know for sure you are immune to getting it again or not. There are still unknowns maria i think like most things your body will build antibodies, and personally i believe i had it i had a horrible flu in january after exposed to somebody had been frankly in asia, offer the christmas time, i never had symptoms quite like this tested negative for flu a little bit on front enl short of breath continued to work i am fine i think will probably built up antibodies i dont know i had it i believe i did i think there is a lot of people frankly winter that have probably already had it. That we havent been talking about. Yeah. That is really interesting steve thank you for your calm and exactly, it is great to talk with you this morning, get that kind of optimism that strength, that can you exude steve good to see you we will see you soon. Thanks so much, maria take care. And to you Steve Mcmillan ceo holout. Gi. C. A coronavirus sl outbreak focusing stores to close across country i 1350ek were paypal could founded about plans for recovery. Stay with us. Apps are used everywhere. Except work. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com maria welcome back, head to studio bstuart varney right there preparing for his show good morning to you. Good morning to you maria, there is one big event that we are concentrating on in 11 00 hour will be briefing virus briefing presumed Vice President pence and dr. Fauci will be there and since President Trump put out a tweet saying i am going to hold a News Conference later may well appear, at that briefing, again that will be in 11 00 hour we are concentrating on it could be a market mover yesterday president appeared with dr. Fauci Vice President pence made statements about the rescue plan the stimulus plan, the virus itself, that moving the markets, may we see same thing today dont know at this point but that is what were looking for market moving event 11 00 hour meeching maybe president of the yu he states main event today. Yeah, we could see, a stimulus package some sort pass literally within the next two weeks, that is how fast, everybody is work being, stu see you top of the hour i know a lot more on that we will be watching 11 00 event Small Businesses facing challenges coronavirus outbreak for whiching stores to close nationwide talking about cofounder paypal and if you remember about planned for recover, stay with us. 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 . 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Impact hitting markets investors gearing up for a wild ride on wall street this morning futures pointing to a decline steep he selloff better than 800 points start of trading, joining me right now is cofounder paypal ceo affirm max levchin thaifrpgz very up of for being here tell us what people should be thinking about as they are trying to stay home cut business through technology frankly. Are you max are you with us . Yes although i am trying to figure out why you cannot hear me sorry, go on. Sorry can you hear me. Can you tell us, yeah can you tell us about affirm you are not charged late feels tell me about technology how can enable people to get Business Done in face of having to stay home, and all businesses close . Well, i certainly know we are alternatives to credit cards, state lender access to credit, most important things for folks right now in this crazy uncertain time open for business as you might expect demand up people trying to apply for home to help place doing that something we see as essentially our job right now. Your Company Headquarters in san francisco, the city, is is obviously, under lockdown amid pandemic how are you handling the situation . You know, weve were able to get everyone organized to work from home in a speedy fashion amazingly job getting transitioned from working in one office to working in offices kitchens living rooms quite a challenge we have done very well i think Many Companies yeah, the middle of all this we are watching the economy certainly take a hit, and stock market as well. Technology among them. Characterize what you have seeing from that standpoint in terms of the Economic Impact, technology, are has obviously, been growth sector we all know recently in leadership position on downside max. Well i think everyone is still figuring out how to cope with the situation, and adjust themselves to the new normal, companies certain my Services Company this is time we are there offering Credit Offering transactions to everyone out there trying to figure out how to cope. One of the things that is question for us, our consumers will never charge unexpected Interest Payments we have been able to stand by this model even as Economic Times are obviously, worsening rapidly. I called entire financial industry today to stop charged late fees no lender business should be profiting from the especially during unprecedented pandemic. We have been able to keep working, and i think many other folks workers in america, trying to figure out you the where next paycheck is going to come, Technology Companies we all had these business have luxury being able to work from home luxury being able to tell commute. What is average number that people are needing to borrow in terms of taking out out loans what is average number dealing with at affirm . Average size has always been between 6 and 700 as there are, that is roughly where we are seeing today, i will think we are allowing people to set up their home, that would be desk or monitor, or sometimes work out equipment to keep fit production side hasnt changed i think in an has gone up maria that is what i was going to say what spree of in demand have you seen last couple weeks . Do you think people are looking to do that nows increasingly given they have to do whatever their doing conducting business from home . Yes. Last week we saw increase of about 7 , which is more than we expected Company Still very high growth mode, more a stepup than we expected this week, an adjustment. Maria thank you so much for weighing in we so appreciate it mabs, we will be watching, take good care yourself maximum levchin joining us weve got page on deck going to look at markets economy where we are right now the after this short break, stay with us. Ur investments deserve the full story. T. Rowe price invest with confidence. Well keep building smarter suvs. To help keep you focused on the road ahead. And. The road beside. Did we mention the road ahead. With an available best in class. Epa estimated combined fuel economy and the technology to practically park itself. This is the reimagined 2020 ford escape. I believe at tecovas,hould focus to othats handcrafted,lf. Highquality western boots at a fair price. Because netsuite shows me all my financials in one place, we stay focused on what we do best. announcer with netsuite by oracle, you get a full picture of your business. Finance, inventory, hr, customers, and more. Its everything you need to grow, all in one place. Netsuite is the worlds number one Cloud Business system. Schedule your free product tour right now at netsuite. Com boots maria welcome back. We are about 30 minutes away from the opening bell. Coronavirus fears sparking another turbulent day on wall street. Down 821 points on the dow industrials. Lets bring back the panel. Look, markets are going to open down. What is it going to take for investors to believe that a stimulus package will work . Dagen . We need to give money to people who need it the most immediately and these are particularly Small Businesses who need to pay their bills during this Business Interruption and also get this cash were talking about into the hands of people who need it the most. Who are out of work, particularly people who cant even draw Unemployment Benefits and essentially, the house is in recess, i think, so youve got a couple of weeks. Get it together. Maria wow. Thats actually pretty extraordinary. Youre right. Ali, you made really important points earlier about some of the blockages to the liquidity story. I wonder if regulators are watching and knowing that theyre going to have to make some changes even if it is temporary on things like the volcker rule, et cetera. I hope they are. I hope theyre listening. I hope theyre likely experiencing the same things we all are in the Financial Markets in their portfolios. This is the time to rethink convention and do extraordinary things. The Senate Looks Like it might have a bill im hearing to the president tonight. I think the markets will really like that. We need everybody to stay calm, to stay invested to the extent you can. Remember the only universal truth of the Capital Markets is they go up over time and market timing is a skill nobody has figured out. Markets go up at 9 a year. Please give yourself the best chance to be part of that like on september 11th and the financial crisis, and continue to be kind to yourselves and to the people around you. Maria yeah, absolutely. Great advice. Look, its been a great show, lot of information. Thanks very much to everybody. We continue tomorrow. That does it for us here. Have a good day. Varney Company Begins right now. Stu, take it away. Stuart good morning, maria. Good morning, everyone. Heres what we are dealing with. As more people are tested, the number of confirmed virus cases is rising sharply and because of that, lockdowns and business closures are spreading fast. Americas economy is essentially shutting down. The administration is taking action. I will call it a support and rescue operation. Checks to individuals going out in two weeks. That supports the millions now without a paycheck. Congress is moving towards an economy rescue program with about 1 trillion, probably more to come later. The Federal Reserve using its