Transcripts For FBC Mornings With Maria Bartiromo 20240713

Now. Maria we want to check Global Markets this morning, european indices all over the place this morning following the u. S. Central Bank Stimulus package. London shut down, some of the mass transit lines in an effort to contain virus. Ftse 100 is down 12 points right now. Dax index in germany right now up 21. In asia overnight it was red across the board. Take a look. Korea getting hard hit down better than 8 overnight in korea hitting levels not seen since 2009 even as coronavirus cases are dropping in korea. As you see the other majors are also weaker. Lets check the oil markets now. Seeing a rebound this morning after 18year low. As you see oil prices bouncing 250 a barrel at 22. 87 a barrel. Yield on the 10year treasury hovering above 1 . Yields are bouncing once again 1. 92 on 10year. Investors certainly gearing up for another wild day this morning in terms of volatility. Lets check futures. We are expecting another tripledigit decline. The nasdaq is down 35 and s p 500 weaker by 30 after the dow fell nearly 1400 points yesterday. 1338. 1,338 on the dow lower yesterday. The nasdaq 345 and coronavirus pandemic global impact. The latest Central Bank Action and we continue to see all hands on deck. Ecb launching 820 billiondollar bondbuying program and Australian Bank cutting Interest Rate. Joining the conversation Dagen Mcdowell, host of the secrets of wealthy woman podcast veronica is here and former republican president ial candidate himself steve forbes. Good to see everybody this morning. Dagen, all hands on deck this morning. Jpmorgan cutting forecast for the gdp. Sharp contraction, 14 . Dagen this is way steeper drop than what we saw during the Great Recession in 20082009. The worst drop there was contraction of 8. 4 . These are like it or in the depressionera contractions and the reason that we are seeing that is mass layoffs all of a sudden. If you look at state by state, you have had 78,000 people in ohio in the last 3 days file for jobless claims. In the state of connecticut its been 30,000 new claims since monday. We can go state by state but its the front page of New York Post today, mass layoffs begin with danny meyers, they have decided to layoff 2,000 workers. We have jobless claims at 8 30 a. M. Eastern time. You literally will have millions of workers out of work all of a sudden. Maria unbelievable. Steve forbes, now youre looking at what has been a very Strong Economy to quickly completely reversing course, millions of americans left without jobs, more stores, businesses facing the coronavirus shutdowns, steve forbes, whats your take on all of this . Steve the take is so far washington is not come up with a big cures for businesses. They are facing severe cash crunch and what the Federal Reserve has done and what the other Central Banks have done in reducing Interest Rates are irrelevant. What the fed must do expend to commercial paper and make it clear and industry knew real. Any company that comes in before the crisis can get an emergency loan now. Next week, not rely on congress but do it now and for smaller businesses, tell regulators back off on covenants. Tell banks that Small Businesses who were solved before the crisis, make emergency loans now, tomorrow, not next week but now. So far they are not responding so severe liquidity crunch. Youll see a lot of unnecessary casualties big and small if they dont get off and respond to specific conditions, not what happened in 2008. They have to get that now. Maria yeah, what about treasury, what the fiscal stimulus is coming out of the white house. Theres an argument that they are irrelevant. What do you want to see from the mnuchin camp and the white house . Well, in the mnuchin side you should urge powell, the chairman of the Federal Reserve to move on that. Powell, if he gets permission for mnuchin can set up facility to make industryloans right away. The other thing they have to do is realize that individuals have problems too in terms of cash, so its good they are going to do that cash payout in april or may and the other thing mnuchin should be pushing for is payroll tax holiday between now and year end. That does two things, one it helps people who are still employed but also helps cash flows for businesses by reducing the payroll tax, reduces the cost of labor by several thousand dollars and they say, a lot of money. 8 billion. Already as you can see, 2 and a half trillion, 3 trilliondollar lost in gdp on an annual basis. Bond market now in trouble as well. Maria unbelievable. 7 trillion. Do it now. Maria unbelievable. Trump should make maria what were you saying, steve . Steve i think trump tax holiday and nationally address we are doing it now and they can go around congress im certain getting money to businesses side and mnuchin should be calling the regulators. Tell the banks be free on lending to solvent businesses. Maria understood. Veronica, steve just said it, 7 trillion in market loss just in this is a handful of sessions. 7 trillion in a couple of weeks. Veronica its staggering, maria, when we see the jobless numbers today we will probably see more selling. The selling that we have seen, the majority of the selling has been professional investors getting out of their positions, moving into cash in a big way because nothing else feels safe to them. When we see the jobless numbers we may see selling amid Retail Investors and individual investors because we look around you and everyone knows someone who lost a job. You will start to look at 401 k if you havent already and might be getting pretty nervous. Maria yes, so far individuals have been longterm believers and we havent really seen them dump, we will see about that. Now to the latest of coronavirus. Here is what we know, the numbers of cases have doubled in new york city. Jump coming as major bill de blasio and andrew Governor Cuomo are not seeing eye to eye on possible shelter in place. That order coming from de blasio yesterday. Cuomo pushed back. The president said yesterday hes asking fda to cut the red tape, reduce regulations and new developments will be announced today. That is why he wants to fast track drugs through the fda. Signed a 100 billiondollar aid package providing more emergency paid leave and free testing. Two lawmakers testing positive for coronavirus, republican congressman Mario Diaz Ballard an Democratic Congress ben mcadams. House minority whip scalise and two others said they would be selfquarantining because they had been in contact with one of the infected lawmakers. I will be speaking with congressman Steve Scalise. Dont miss that. Amazon worker at a facility in new york tested positive for coronavirus, the employee works out of queens facility known as dbk1. The case marks it first for worker at u. S. Amazon warehouse. At least 5 workers in europe have also tested positive. Las vegas air Traffic Control tower is temporarily shut down after controller test positive for coronavirus. Faa says the division to close was made to ensure a safework environment for controllers and for technicians. A lot of changes this morning. Things are moving fast but we will slip in a short break, President Trump signing into laws 00 billiondollar relief package to fight coronavirus outbreak after secretary mnuchin warned inaction could result in unemployment of 20 . Oneonone with secretary mnuchin today, 8 45 a. M. Eastern. Dont miss the interview. We will find out what is next for the administration. We will find out in 2minutes time. Dealer. And take delivery at home. Its just our way of doing our part. Sure, principal is a fibut 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, markets under pressure once again today. Major selloff extending this morning. Dow industrials pushing below 20,000 mark yesterday. The lowers point in trump presidency. This coming as the Federal Reserve and global Central Banks have announced more measures to help offset the Economic Impact of coronavirus. Joining us right now web bush security managing director daniel, dan, thank you very much for weighing in this morning. With all of this kitchen sink being thrown at the markets from global banks across the world, why arent equity markets reacting positively . I mean, right now the worry is demand. I see it across landscape. You look at Companies Like apple, microsoft, tesla. The worry now from investor perspective just what numbers would look like in the next 3 to 6 months and right now youre seeing baby thrown out with bath water. Maria target on apple was lowered. You have been also turning less positive on apple, obviously, what kind of a profit story are you looking at for apple for the rest of the year as it struggles to get stores back open, to get the China Business back running at the capacity it was. What are you expecting . Well, its really a perfect storm for apple because obviously theyve seen it in terms of the supply chain in china and ash asia, we are stressing our numbers. When i look at apple right now we lowered numbers by about 15 for iphones. What we really view right now 350 million of 925 million iphones worldwide. We are assuming that no one buys an iphone over the next 2 years. Thats already upgraded over the last 2 or 3 years. When you stress test the numbers. I think thats how we have comfort still being bullish with these prices even though the demand store has changed. Maria let me bring steve forbes in here, steve, its not just apple. The list of companies that have closed their doors, you know, earlier, what, over a month ago you had 3 major banks say there will be in Profit Growth in the first half of the year for the s p 500. Its looking more and more like beyond the first half of the year, steve . Yes, it does, thats why shortterm we have the Keep Companies alive and keep individuals alive, for example, mnuchins idea of sending out checks to everyone, i think thats a good idea. They call it a lifeline. Help people pay mortgages and pay the bills. This is to keep people alive until this virus crisis is over and businesses can start to operate again. I think what the markets are looking for what are we doing to have the infrastructure of this economy survive and not go into bankruptcy, saving individuals, not only from the virus but from bankruptcy. Thats why whats happening with apple. Maria yeah, youre right. Sending out the checks . To steves point, i think right now the view from an investor perspective they are down 2,020 numbers. Right now getting through the next 3 to 6 months and on the other side then you start to see the strong companies, theyll get stronger and rebound but right now from investor perspective you need to have trickledown effect. Next 3 to 6 months. So when we get on the other side to a more normalized environment, new normal, you can start to do valuations on 2021. Maria you will not get this kind of guidance, go ahead, steve. Steve if the companies especially companies that are debt or shortterm debt need, stocks have been truly hammered and if you give them a lifeline through payroll or payroll holiday, i think the stocks will be be booming in latter part of this year just because markets anticipate the future. Right now markets looking at the idea that a lot of the entities will go down for the count. Maria you are counting on a secondhand recovery. Go ahead. Dagen i was going add one issue that people need to Pay Attention to, youve actually seen yields on treasury debt because theres been a rush to cash and people have been selling everything. The yields on treasury debt have been going up. Begs the question the more money the company borrows, do yields go up and up and will send corporate yields up and so then the crisis, it takes a lot more money and a lot longer time to solve it. Thats why you need the Pay Attention for shield yields here. Maria you know, i havent really but obviously this is an issue that will come home to roost, steve. You know, dagen points out the obvious issue with all of the stimulus, where is this money coming from . Steve theres still assets out there but i think if people feel that the economy is not going to have unnecessary wreckage out there, i think the the borrowing will be able to be done at reasonable rates, but when you see the gold price collapse as it does, that means people are desperate for cash and thats what the fed has to realize. They need to cash now. Maria so they are desperate for cash and you get that because they are even selling gold is what youre saying . Okay. Dan ives, thanks for weighing in. I know that you have gotten negative on tesla after decline. Tripledigit decline and in the last few minutes things have worsen. Dow futures down better than 400 more mornings with maria right after this. 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. Its our most dangerous addiction. And to get the whole world clean . That takes a lot more than an alternative. So we took our worst vice, and turned it into the dna for a better system. Materials made from recycled plastic woven and molded into all the things we consume. We created bionic and put the word out with godaddy. What will you change . Make the world you want. Maria welcome back, coronavirus closures, the most significant names in the American Auto industry, ford motor, gm, Fiat Chrysler, all announcing they are halting production in north america. Simon property groups shuttering the doors of 2009 nationwide malls in order to halt the spread to have disease this adding to the growing list of retailers that have already closed down or reduced hours as temporary measure. Youve got industry after industry, veronica, either closing or making lower hours and essential certainly youre seeing layoff increase. Veronica its staggering, maria, we would have never imagined this 3 weeks ago even and the effect on the american worker. Folks need that money and i Hope Congress gets it together and passes this soon, whatever the final bill is. Thousand dollars, 11,000 per family families. People are going to need to pay the rent, pay utilities to feed their kids. This has become a desperate situation for a lot of people who work in a lot of industries and its a scary time. Maria yeah, so are the rules of the road, dagen, just put aside at this point. You know everybody is going to want money, everybody is asking for some form of a bailout, but then again we are in an emergency moment in time. Dagen to steve points, something that we have been mentioning earlier something talked on the program all week that editorial page layed out clear as day about preventing a liquidity a greater liquidity problem and even in solvency among businesses and it should run through the Federal Reserve. The Treasury Department gives the fed permission to set up a new facility under section 133 to provide financing to otherwise healthy businesses. They could put up collateral, you immediately get loans directly to businesses in airlines, leisure, hospitality, retailers, all of the industries that are laying off literally hundreds of thousands if not millions of people. This is the quickest way to do it because if it runs through congress, youre going to get strings attached. It becomes politicized and that will take longer, it is not theyre not asking swiftly and in a targeted way and thats one of the reasons the markets are panicking. Maria yeah, steve. Steve well, thats right, revenue disappears, dramatically done here, you need money right away to stay keep keep going and thats why im a little surprised that that hasnt been more active in terms of setting up facility and making it clear. Anyone who comes to that window of collateral will get the loans right away. You put above market Interest Rates to make sure when the crisis have subside, they pay the loans off quickly but they need the cash, its like food. They need the cash. Theyll starve. Yeah. Say it again, steve . Steve i think that was overexaggerate and if you take these active steps very basic, get that liquidity out there, we will get through this crisis and we will get through the virus as well but what we need time and in the meantime we need cash to these people. I Wish Congress would stay away from trying to do social engineering. They are about to slam Small Businesses with new regulations on things like that. Save that for another time. Right now get the cash out there. Maria yeah. All right, lets take a short break, we are looking at a market thats down 400 points at this point, coming up at 845, i will be speaking with treasury secretary mnuchin about all of this, what is being done to help businesses get money back into americans pockets, direct from the treasury secretary. Younger americans are at risk of contracting the coronavirus. We have the details of whats changed. Stay with us. O commission for online u. S. Equity trades. Actions to help prevent the spread of respiratory diseases. Wash your hands. Avoid close contact with people who are sick. Avoid touching your eyes, nose and mouth. Stay home when you are sick. Cover your cough or sneeze. Clean and disinfect frequently touched objects with household cleaning spray. For more information, visit cdc. Gov covid19. This message brought to you by the National Association of broadcasters and this station. Of broadcasters to be our guest. With an invitation. The invitation to lexus sales event now through march 31st. Lease the 2020 rx350 for 409 a month for 36 months and well make your first months payment. Experience amazing at your lexus dealer. 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 thursday morning, everybody, thanks so much for joining us, first day of spring. Im maria bartiromo, it is thursday march 19th, your top stories right now. 6 31 a. M. On the east coast. Global action to combat the Economic Impact of the coronavirus not lifting u. S. Markets. Market extends huge loss yesterday. This morning dow industrials down 320 points. Nasdaq futures lower by 35 and the s p futures down 38. This on top of yesterdays steep selloff, the dow industrials yesterday closed below 20,000 mark for the First Time Since 2017. Markets were down across the board with dow down 1,338 points yesterday. Nasdaq was lower by 345 and the s p gave up 131. Lets check Global Market this is morning in Europe Markets have been all over the place this morning following the european Central Banks stimulus package announced. Take a look at the numbers. Mixed story here. The uk has closed all schools, london shut down some of mass transit lines in an effort to contain the virus. In asia overnight red across board. Take a look at asian markets, korea, kospi index down better than 8 hitting levels not seen since 2009 as coronavirus cases dropped in the country. Oil prices are seeing a bit of a bounce but these are very low numbers. 18year low in the price of oil earlier 22. 82 cents. Up 245 and that by the way 12 rally. The 10year yield, holding above 1 . It is right now down 2 basis points but still at a level of 1. 164 and bounced above 1 which which of course shows some stability but massive low numbers. Coronavirus is affecting young people more than first thought. The centers for disease control, 508 of nearly patients were between age of 20 and 54. Younger people have been criticized for not taking the virus seriously. President trump emphasizing the need for americans to change social habits. He did this yesterday, watch. We are asking every american to make major changes to reduce social interactions over the next 2 weeks as we all know we must make shared sacrifices and thats what we are doing as a country. Its been amazing to see the way the country has come together. Maria joining me right now family physician dr. Jennifer codle. There are people as young as 20 years old contracting the virus now. Thats right, we still should be concerned about our elderly, i want to say that first off. We know anyone and every one can get coronavirus. Older people at higher risk of complications and whats different what you just said, maria, we are learning more and more that younger people may be affected more than thought in the beginning and in some cases with more serious disease. Thisthis is the thing, the reasn why we are learning this now is because every day is new. This is still the novel coronavirus. Its novel because its new. We are learning more. This is why young people as well as Everyone Needs to be taking precautions. Maria let me ask you about blood types because weve got some news on on the blood type study out of china shows that people with blood type a maybe more susceptible to this disease, those with blood type o might be more resistant, can you look at these blood numbers and tell us what you make of this study . You know, i thought it was interesting in the last 24 hours we have seen study done in china exactly as blood type a in higher risk for covid19 injection. This is what i would say, the data is preliminary, thats the one thing, the big grain of salt that we need to take with the study and a lot of data that we are getting. It has to be duplicated in other studies. Theres no reason in my opinion the way we proceed. Theres no reason to say screen people for their blood type and do that type of stuff. This is interesting piece of information that we will add to growing body of knowledge certainly as we go forward. Maria yeah, i also want to ask you about the speculation around the risk of taking ibuprofen. This is advil, aleve. People are taking ibuprofen but the World Health Organization does not recommend and does not recommend against the use of it. What should people be doing . Okay, its a really great question. Ibuprofen has come up assort of a asp sort of a question. They tweeted information because we should be cautious and the thought that ibuprofen antiinflammatory drugs may actually change the way the body responds to the virus. In other words, taking outcomes and linked to ibuprofen. There are two camps with this. Ive taken a look at this in the last two days. Initially last week i was recommending tylenol or ibuprofen. I would say its still evolving. My advice at this point since we are getting information that this may not be the best route for some im advising patients to stick with tylenol. My advice to my patients as of today is if you can take tylenol, you should take that until we learn more. Veronica we are seeing images of young people, 20yearolds partying and i tried to explained to them the dangers, protect the grandparent and people around you and the argument they often give back. Yes, i understand but im only going to have spring break once and i dont want to miss out my good times so im just wondering what advice do you have for us in terms of getting through to some of the younger people in our lives, like we want them to have fun but you have to put on for a little bit. They say i understand but i would argue they dont understand. The behavior of being on the beaches despite multiple, multiple warnings from a ton of us, no, i dont think they quite understand and you made really good points. The arguments for this, my main arguments are even if you dont develop severe illness from covid19, you can still spread it to someone else who may, that older patient, the older person. You asked me about we are seeing more data suggesting that younger people are getting severe illness, hospitalizations, possibly even deaths, of course, those numbers arent as great as older folks. Young e people are not immune to this. Those who are taking this lightly possibly dont understand. We need them to understand, we need to heed the warnings about social distancing, literally our lives depend on it. I hope that we continue waving the banner and aweing the flag because we have to. Maria if youre feeling strong and you dont have any symptoms, are you saying that person should not see their parents or not see their grandparents right now . Should you be staying away from parents and grandparents . It is possible to contract even though you dont show symptoms. Social distancing is this idea that at least 6 feet away from other people, those people outside of your household and crowds and things like that. Avoid crowds, less than 10 people, et cetera. When it comes to family members, the people that you live with are the people that you live with, you cannot see them. You need to practice precautions amongst your households. What i would also say, im telling my patient who is have older grandparents, parents that may be social distancing, communicate in different ways. We actually all need to be yeah, we need to be working on this, all of us. Maria all right, thank you. Yeah, we should all be thinking about social distancing, absolutely. Maria i understand, dr. Jennifer caudle, thank you so much. Salt lake city recovering after powerful earthquake. And now theres that, go ahead, cheryl. Cheryl its incredible, maria, right in middle of pandemic this happens. As you see in this video things are falling off shelves as 5. 7 magnitude quake struck early wednesday morning. Damaged buildings and knocked out the coronavirus hotline. This is extremely bad timing because we already have the coronavirus issue thats going on right now which is causing anxiety as it is. Some of these people forced out of damaged home and experts say they will feel hundreds if not thousands of aftershocks. Lets look at the shares of blue apron, stock is higher 1 and a half percent in premarket. The stock actually more than doubled in value yesterday. Blue apron, they send you a box of meals with ingredients, recipes, they are benefiting as the Pandemic Forces restaurants to close and super markets are struggling to keep their shelf stocks with basic nextties. Finally, maria, we continue to find stories of americans who are stepping up in time of crisis. Drivethru concessional. He wants to let people unburden their soul while following social distancing policies. Back to you. Maria wow, cheryl, thank you. Small businesses struggling to stay afloat. Lawmakers urging people to close their stores, how will it impact after this maria welcome back, the Tourism Industry slammed by coronavirus, hotels, hospitality executives meeting with President Trump and Vice President mike pence at the white house tuesday to talk about the struggling hotel and travel industries, the executives, of course, asking the white house for 150 billion to retain their workforce and service debt, joining me right now one of the travel Industry Leaders who attended the white house meeting American Hotel and lodging Association President and ceo chip rogers, chip, good to have you this morning, thanks very much for being here. Characterize the situation. Its as bad as we have ever seen. If you take at what happened after 911, after the financial crisis, if you combine those and probably doubled it, thats what we are looked at. Last year occupancy American Hotels 67 , just little above historical average. We are hearing reports now that in most places across the United States occupancy is in the Single Digits which means it makes much more sense to close the hotel than to keep it open. Maria so what are the folks going to do . Well, they are not going to work because there are no customers and thats the problem that we see. Until such time as people begin traveling again like i said, youre going to see Hotel Closures in massive numbers. I would expect by the end of the month half of the hotels will close. More millions of workers, what do you, do they could go unemployment. Theyll continue to get some pay, theyll also be able to access some benefits. Maria you think more than half of the hotels will not be able to get through this, they will close . They will close. The question whether closure is temporary or the question is whether the closure is permanent. For some it would be permanent. Theres no question about it. We hope that the temporary closures can bounce back quickly and the best way to do that is have workers ready to go when the economy turns around. Right now its worse than we have ever seen and 4 Million People being layed off. Maria let me ask you this, in terms of the money that they need, what did you get from the meeting at the white house yesterday and how much of a bailout or help, however, you want to call it, are you expecting is coming from the government for the Hotel Industry . Well, weve asked 150 billion which twothirds of that would go directly to wow and a third of that would be necessary so that hotel owners can keep their businesses afloat and even when you shut down you have fixed cost, biggest fixed cost is paying mortgage and all theyve asking for is loans to help bridge this time. So for the workers its about twothirds of the money, keeping the business float is third of it. The president and the Vice President fully understand it. It was a great meeting, they realized what happens when the entire Hospitality Industry shuts down and thats what we are facing. Maria unbelievable. Chip rogers joining us there. I want to take a break. Small businesses facing big challenges as stores are forced to close their doors, how they are fighting for survival next . Dont forget to join me when i speak to secretary Steven Mnuchin when i speak about all of that coming up. Theres smart and then theres street smart, like a hybrid with best in class epa estimated range of more than five hundred eighty two miles. 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. This is the completely reimagined, street smart its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. 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Dont miss the final days to save up to 900 on select sleep number 360 smart beds. Only for a limited time. Maria welcome back, we are looking at futures continuing to move lower. Wewe have a tripledigit declin. Futures extending yesterdays selloff, 49 points lower in the nasdaq and s p down 38 points. We are going to be speaking with treasury secretary mnuchin this morning. He will walkthrough white house stimulus packages and im joined this morning by a great panel Dagen Mcdowell in new york along with steve forbes and Veronica Dagher, we will see what it takes, guys, to turn the markets around and whether or not investors will start believing that they that this stimulus coming out of the white house and global Central Banks will actually work. Dagen maria, i wanted to point out steve so far dagen go ahead, steve, by my guest. Steve in terms of what you heard earlier about the Hospitality Industry, 150 billion is nice but by the time Congress Gets through it, the bureaucracy gets through it a lot of them are going to go down unnecessarily so i think what the markets are really upset about, one, the liquidity problems not being adequately addressed and not the sense of urgency that would we assure markets and trump economy thats in virtual lockdown. Maria go ahead, dagen. Dagen no, i was, going to say that i want to point out what the Federal Reserve is doing is important because the Financial System is backstop in a crisis and it has been crumbling underneath us. The Federal Reserve late last night backstopping money market mutual funds. Thats incredible by important and it was a rush to cash yesterday, so this is actually a better picture that we saw yesterday because at the lows the dow was down 10 . Maria it sure was and Small Business, of course, taking a massive hit from the coronavirus and new york city Small Business owners are scrambling to stay afloat amid closings. Restaurants limit today takeout and delivery. Joining me right now new york city commissioner greg bishop, thanks very much for being here. Assess the situation. Thanks for having me. Maria what is your take in terms of Small Business, you heard steve forbes a moment ago talking about liquidity issues. How do you see it . This is unprecedented for new york city. The restaurant industry, over 20,000 establishments, they employ 200,000 new yorkers and and certainly we have never seen anything like this. The financial impact. Its too early to tell, we really need all levels of government to intervene and help us. Maria what do you want now . So what we have done in the city is quickly put together Employee Retention Grant Program which we made live 2 days ago and we are working on a loan program where we can businesses can borrow up to 75,000 but after Hurricane Sandy the federal government basically sent about 90 million to cities for help as it recovers. Maria all right. We are looking for an economic stimulus package. Maria of course. Get the capital that they need. Maria commissioner, thank you so much, we will be right back the unique challenges in that sector . Coming out here, seeing the infrastructure firsthand, we can make better informed investment decisions. Thats why i go beyond the numbers. 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 . 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. Maria welcome back. Good thursday morning, everybody. Thanks so much for joining us, im maria bartiromo. It is thursday, march 19th. It is the first day of spring. Your top stories right now, 7 0. Well, the coronavirus continues to spread across america. Concerns are growing this morning over the number of younger people who are contracting the virus. Different than what we believed initially. President trump signs a Coronavirus Relief plan providing paid sick leave, unemployment help and free testing to all americans. Treasury secretary Steven Mnuchin will join me this morning live at 8 45 a. M. Eastern, join us to find out whats being done to help businesses an put money in americans pockets directly as the government acts to protect the u. S. Economy. The Federal Reserve backstopping money market mutual funds. Jp morgan chase is warning that the u. S. Economy could shrink 14 in the Second Quarter. Major automakers halting production in the United States, the Ripple Effect with Companies Supporting the industry. The New York Stock Exchange is shutting down the Trading Floor, shifting to electronic trading only. Markets pointing to a decline, we are off of the lows. Take a look at where we stand, dow futures down better than 300 points, 322 lower on the dow, nasdaq lower by 37, s p lower by 35. This is extending yesterdays selloff of course. Yesterday the dow industrials closing below the 20,000 mark for the First Time Since 2017. Across the globe, more actions are being taken to combat the spread of the virus and the Economic Impact. The European Central Bank Launched an 820 billion stimulus package, Australias Central Bank made an emergency rate cut overnight. Mornings with maria is live right now. We want to check Global Markets right now on the heels of the weakness were seeing on wall street. European markets have been all over the place this morning, following the ecbs stimulus package. Look at where we are now. The fq100 down 52 points, the u. K. Closing all schools, london shut down most of its mass transit lines in an effort to contain the virus. The cac in paris is actually up 5 points. The dax index in germany is lower by 67 as you can see. Overnight in asia, red across the board, take a look at korea. That was the hardest hit. Kospi index down better than 8 , hitting levels not seen since 2009. Even as coronavirus cases are dropping in that country. Lets check oil prices, seeing a rebound this morning but still really rock bottom levels here. An 18 year low in the price of oil reached yesterday, crude oil up about 13 , believe it or not, to 22, 70 a barrel. Treasury yields are also above 1 right now, but were seeing a decline there as well. Take a look. The 10 year on the yield there is down 2. 7 basis points, sitting at 1. 158 . Investors of course gearing up for another wild day in fixed income as well as equities. Futures indicate a decline at the start of trading of 245 points, nasdaq futures down 4 points, and s p futures lower by 26. This after the dow fell nearly 1400 points yesterday. Were seeing the bear case extended this morning. Of course the coronavirus pandemic is having a global impact. Take a look at the latest Central Bank Action. This is pretty much coordinated across the world. The Federal Reserve backstopping money market mutual funds. The ecb launching a Bond Buying Program and Australias Central Bank cut Interest Rates to a record low of 0. 25 . In line with where we are in the u. S. Back with me is Dagen Mcdowell, Veronica Dagher and steve forbes, joining us this morning on the phone is stephanie po mboy. For a long time we questioned your prediction that the market was ready to take a massive decline. Thats what weve been seeing. How do you see things now, stephanie . Well, i didnt want this to happen. You know, i was always maria of course. Fearful that my forecast could come true. What were seeing here is the fed and other Central Banks are now confronting the legacy of this decade of Interest Rate repression and you and your panel there have been talking a lot about this dash for cash. This is a consequence directly of the monetary policies that effectively incented the flight to risk and the use of leverage and punished holding of cash. And now what were seeing is the degree to which that policy, quote, unquote, succeeded, where companies shockingly have had zero cash with which to manage any severalday suspension in operations, theyre immediately rushing to tap credit lines and causing these issues in the commercial paper market. And on the financial side, rumors are swirling now that one or several high profile hedge funds are facing ltcmstyle liquid at this liquidity events. The unwinding of all this leverage will be extremely painful and my feeling is the economy will recover from the coronavirus. The problem is recovering from the fallout of the financial deleveraging that were going to see, which were frankly just Getting Started on. Maria and youve been talking about corporate leverage for a long time. The debt in the corporate sector. I want you to explain that. But what you just said is also interesting, that you believe that some big hedge funds are not going to be able to make it through this. Is that what youre seeing in terms of accelerating this market selloff, that youve got big hedge funds selling out right here . Well, i think that helps explain whats happening in safe haven assets like treasuries and gold where you would normally expect a flight to safety to pro stride a bid there. But what were seeing there is unwinding of exposures across the board, deleveraging, and that is being accelerated i believe by some real liquidity constraints on some major hedge funds. You know, this is all swirling around in the rumor mill but it stands to reason that in an environment where youre trying to generate double digit returns and the treasury yield and cash are essentially zero, youve got to use a huge amount of leverage to generate any kind of returns. Maria i want to bring dagen in in a second but go through the corporate leverage story for us, stephanie. This is a story you talked about throughout 2019 on this program. I mean, whereas in 2008 or 2006, 7, 8, the issue was the overleveraging of households, specifically on the mortgage front. Obviously, the conspicuous borrower this cycle was the corporate sector and much of what they were doing, this is now water under the bridge, but what they were doing was buying to fund share buybacks. So it was sort of creating this positive feedback loop where the more they levered up, the more they put a bid under stocks and so you have the favorable risk scenario. Were now seeing that unwound. But the corporate sector levered their Balance Sheets up to record extremes and what i had been really concerned about was that people looked at the Corporate Cash position, which was close to 2 trillion at its peak and said you know, it doesnt matter. Sure, theyre borrowing because theyre locking in low rates, lowest rates in a generation but theyve got plenty of cash to service the debt so all we care about is the ability to service the debt. The problem is that the averages really were meaningless because all the cash was on the Balance Sheets at the top handful of companies. In the s p 500 itself, the Top Three Companies in the s p have more cash than the bottom 400. And this is going to be a major issue as companies have to roll this deb debt. So even though they took out debt at low Interest Rates, some Companies Wont be able to manage any increase in debt service because they have no cash to do that and we have 850 billion in corporate debt rolling this year and another 1 trillion in paper rolling next year. So were going to see some real dislocations. I think youll see just a wave of fallen angel as companies are downgraded from Investment Grade to junk and then theres the knockon effect that Investment Grade bond managers can no longer hold that paper, so there will be some real selling pressure there. And again, that shoe hasnt even dropped yet. Thats still all in front of us. Maria dagen. Dagen stephanie, its dagen. Good morning. Dagen you talked about the Central Banks legacy of depressing Interest Rates and punishing the holding of cash. So where does that leave us with all this action from Central Banks, particularly the Federal Reserve . Is what theyre doing meaningful . Well, i mean, at this point its hard to figure out what else they can do other than try to stick their finger in the dike and try to stanch the bleeding here. Its sort of water under the bridge. This is the consequence of their policy but we have to deal with it and unfortunately there arent a lot of other ways to deal with it. My concern is that the solutions being prescribed, like all these various facilities, simply increase loans again. Now, if some of these loans that theyre going to make directly to businesses are ultimately foregiven and there was some commentary i heard about that, that maybe to the extent that they were borrowing to make payroll, maybe ultimately the government will forgive that, thats a whole other thing. Thats essentially a fiscal stimulus. The idea of incenting companies that are overlevered to take out more debt is one that im not really fully understanding. Maria go ahead, steve. Steve i was going to ask stephanie two points. One is, in terms of the fed, do you see any signs among the fed and other central bankers, the huge mistake they made after 2007, 2008, 2009 in suppressing Interest Rates . And second, given what theyre doing now, should be doing, cant we have an orderly liquidation of some of these overlevered companies, things are much better when the economy is growing and dealing with mistakes made. We saw that in the early 1980s when inflation was suppressed, a lot of Companies Left high and dry but the economy as a whole did very well. I guess i missed the first part, which was a question as to am i surprised that the fed repeated the mistakes that they made, was that the question, for inflating the housing bubble . Steve no, the first part of the question was do you think the fed and other central bankers will ever learn from the mistakes they made after 2000 in so suppressing Interest Rates that let the markets work instead of them trying to manipulate the markets and the other thing is, do you see a possibility of an orderly liquidation as we had in the early 80s when inflation was suppressed finally, a lot of companies were left high and dry, especially the Energy Industry but the economy as a whole boomed and that made the deleveraging a much more doable and less painful. Okay. Well, thank you for clarifying that. On the first one, i dont hold that much hope that central bankers will ever learn the lesson, you know, but ill try to remain optimistic. On the second one, as for orderly liquidation, i think the difference between the 1980analon and today is the massive amount of leverage and the degree to which the marginal buyers of these Corporate Bonds are people who these arent lets say real money buyers. These are a lot of hot money, plus youve got other moving part thats new this time which is all of the passive vehicles, the etfs, where they provide the illusion of liquidity that really doesnt exist in the underlying securities, we still havent seen how thats playing out. Maria we only have a couple seconds left. I want to ask you, is there anything you see that would get you to say okay, this has become over done, i want to be a buyer of equities. I think we will get to a point where we get through this coronavirus crisis, the fear, and youll have a rebound. But i would take watch that unfold and then sell at some point in that rebound because i think the second part of this storm, the fallout from the financial deleveraging that im talking about is going to hit us on the other end. So i think there will be some intervening rebound but it will be temporary and one to be sold. Maria stephanie, thank you. Stephanie pomboy, well be right back. 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 actions to help prevent the spread of respiratory diseases. Wash your hands. Avoid close contact with people who are sick. Avoid touching your eyes, nose and mouth. Stay home when you are sick. Cover your cough or sneeze. Clean and disinfect frequently touched objects with household cleaning spray. For more information, visit cdc. Gov covid19. 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Side effects include nausea, diarrhea, vomiting, belly pain, and decreased appetite, which lead to dehydration and may worsen kidney problems. I have it within me to lower my a1c. Ask your doctor about trulicity. Maria welcome back. President trump signing a roughly 105 billion aid package into law in an effort to sur b the impact of coronavirus. The Senate Overwhelmingly passing that legislation which includes free testing, paid sick leave and other financial safety nets. Lawmakers are currently working on another round of relief as the Trump Administration works to get money back into americans pockets. Joining me now is senior fellow at the National Taxpayers union, matty dupler. Amazing how the world has changed. It is having an effect on the election as well, isnt it . Thats absolutely right. Something that happened over the past two weeks is we continued to have primaries in states. Of course, some leaders in states that had primaries this last tuesday, particularly ohio, had moved to try to delay those primary as a result of the coronavirus. It will be interesting to see what actions other states take in order to make accommodations potentially moving to all mailin ballots to keep voters safe. We have a number of primaries to go. Were not done yet before the nomination is made for the democratic contender in july. Maria do you think people see this and will see this going into the election as an issue of china . China and what the behavior of china has been on the world stage . Or do you think they will look at this and say, well, the economy was President Trumps best bet an its no longer there for him . You know, i think its possible, maria, that this becomes a china story. More than anything else, American Voters care about their own personal financial circumstances. This is what royaled the Obama Administration in midterms for so long. You had the president in washington throughout 2012 and 2014 talking about recovery. Most americans felt they hadnt experienced a recovery personally. The inverse could be true here. It depends on the time line on the virus and depends on washingtons response. Americans were feeling the effect of a Strong Economy going into the virus crisis here. They were feeling strong employment numbers, wages were rising the fastest for Blue Collar Workers in 20 years. That has an impact. I think that has a lasting impact. Well see as i said as the washington response continues to roll out how quickly and how targeted that is so americans continue to feel their own circumstances and continue to feel confident in them. Maria so let me bring the panel in here. Larry kudlow is floating the idea that the Administration May consider asking for an equity stake in corporations, getting help amid the crisis. So if they get money, bailout money, maybe administrations take an equity stake. Steve forbes, what do you think about that . Steve i think that sounds le it came sadly from Bernie Sanders rather than our good friend larry kudlow. Thats why you need this Loan Facility at the Federal Reserve, maria. That just makes a straight loan at a straight Interest Rate and you pay that loan off and youre out of the clutches of the government. Equity stakes we should have learned from the Auto Industry cause all sorts of problems and i dont want the federal government having more claws in the economy. I want them after this crisis less because the only way we get out of this debt and Everything Else is through rapid Economic Growth just as we did in the 1980s when things looked grimed in the early 80s, late 70s. Maria matty, your thoughts . Well, so i think you need to be careful here. There are big differences between 2008 and today. In 2008, particularly with the Government Action to take an equity stake in gm, that was meant to preserve an institution that had a lot of structural problems that had been laid bare by the downturn in the fiscal situation. That is a completely different situation than what we have here. Right now were dealing with a demand shock that will be temporary in nature if we have a strong and robust fiscal response from the United States government. Maria im surprised this idea came from larry kudlow. I really am. Matty, thanks for weighing in this morning. Next hour ill be speaking with treasury secretary Steven Mnuchin about that interview, about whats being done to help businesses and put money back in americans pockets. Stay with us. , well be right back. 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. Another triple digit decline this morning. We are off of the lows of the morning. The dow futures are down 320 points, 312 points. Nasdaq down 43 and s p futures lower by 35. This coming as the Federal Reserve and global Central Banks across the world announce measures to help offset the Economic Impact of coronavirus. Joining me right now is cochief Investment Officer hank smith. Thanks very much for being here. What are you doing as an investor in this market, hank . Good morning, maria. Good to be with you and with the panelists. Lets first of all, were keeping our clients invested, most of our clients are balanced with stocks and bonds. In some cases, we are reallocating where stocks have become underweight to the target that was agreed upon. That is a pain trade for sure. Just as it was in the last six years, selling equities to go into fixed income, that was a pain trade for a different reason because fixed income was yielding virtually nothing. But let me start with our base case here. And ill be fairly brief. This virus will fade. It will peak and fade in the coming months due to the selfquarantine efforts were doing along with the coming warmer months. The hit to the economy will be severe. It will be contained to the Second Quarter and into the Third Quarter and then the recovery will be very powerful and vlike in shape. And our confidence there is really threefold. There will be an unleashing of pentup demand as people d decocoon if you will and all of the monetary and fiscal stimulus, those three factors will come into play to drive Economic Growth and this is very, very important. The market will bottom at or prior to the peak in cases and if china is any guideline, were probably four to six weeks away from a peak in this. And were going to in the next four to six weeks goin go throua bottoming process. As in all bear markets, the stock market bottoms and begins to turn up while the headlines are horrific and this will be no different. Maria so are you looking for opportunities then right now . I mean, jp morgan this morning has cut its forecast for the gdp, you know that, hank. Jpm says the economy could shrink 14 in the Second Quarter, a decline that size would be steeper than in the Fourth Quarter of 2008. We all lived through that, the worst of the Great Recession when the economy shrank. Hank, if you see that kind of contraction in the Second Quarter and a little bit in the Third Quarter, are you looking for opportunities now to get ahead of that bottoming out . Yeah, we are in the process of doing some rebalancing, some shifts at the margin with equities. But heres the challenge. If you pile in today into the safety stocks, be it a walmart, a clorox, et cetera, a dollar general, those arent going to be the stocks that give you the greatest returns when we come out of it. It will be the companies that had been beaten up severely but still have strong Balance Sheets and still demand for their products. So there is a balance that you have to weigh if you want to fully participate in the recovery. But i want to really say go ahead. Maria no, no, finish your thought, hank. Yeah. Every recession, every bear market you hear this refrain. Its different this time. And in some respects it is because the causes of each recession and bear market do have differences. But here are the similarities that we have to keep in the front. Every recession is followed by an expansion and every bear market is followed by a bull market and the expansions and bull markets are more powerful than the recessions and bear markets. Maria very good point. And i appreciate personally some optimism in the face of all of this, hank. Thanks so much. Opportunity at the end of this rainbow. Hank smith joining us. Hank will be my special guest on maria bartiromos wall street this weekend, friday night, 9 0. When we come back, stopping the supposespread of coronavirus, wl we see the bottom, when will we see the peak. New studies reveal the virus could live on some surfaces for days. We are investigating how long this virus lives on surfaces when we come back. Stay with us. When you own horses, you dont just own horses. You own a pasture. A fence. A barn. An arena. More fence. And hay. Lots of hay. So you need a tractor built to do it all. And do it right. You need the power to handle anything. You need versatile performance matchedattachments. You need the 1 selling compact tractor for a decade. The kubota l series tractors. 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. Im maria bartiromo. It is thursday, march 19th. The first day of spring. Your top stories right now, 7 3. Global action to combat the Economic Impact of the coronavirus. Not lifting u. S. Markets this morning. Futures indicating another lower opening this morning, even though we are off of the overnight lows. Dow futures had been down, get this, 988 points overnight. The s p had been down 126. Right now, were looking at a decline of 429 points on the dow, nasdaq futures are down 82 and s p futures down 49 points right now. This is extending a sharp selloff yesterday. Yesterday the dow closed below 20,000 for the First Time Since 2017. The dow was down 1,338 points, nasdaq down 344, s p lower by 131. Global markets this morning are mixed. European markets have been all over the map this morning following the european Central Banks stimulus package. We are solidly negative there. The u. K. Has closed all schools, london shut down some of the mass transit lines in an effort to contain the virus and then youve got the fq100 down 90 points right now, cac in paris down 34, and dax index in germany lower by 90. In asia it was red across the board. Korea was the hardest hit, the coughkospi index down 8 and a td percent. As coronavirus cases are declining in korea. Oil prices bouncing a bit, talking about rock bottom numbers. Oil prices hitting an 18year low earlier, now oil prices are up, bouncing off of the 18year low, 2. 13 a barrel, 10 higher at 22, 50 a barrel on oil. The yield on the 10 year Treasury Holding above 1 . Take a look. We have the yield here too at 1. 146 . Bouncing off of the bottom but down today from yesterday, down 3. 9 basis points on the yield at 1. 146 as can you see. Coronavirus in the air, a new study funded by the National Institutes of health shows that the virus can live for three hours in aerosol form, meaning droplets in the air. The study also looked at how long the disease can live on certain surfaces finding that it can survive for up to four hours on copper, 24 hours on cardboad and up to three days on plastic and stainless steel. Joining me now to talk about that and tell us how we can stay safe is fox news medical contributor, the author of make america healthy again, dr. Nicole saphier. Always good to see you. These numbers are really concerning about how long the virus can sustain in the air and on surfaces like metal and plastic. Give us your sense of this. What do people need to understand about this . Maria, the reason why this study is so important is it helps us to understand why there is such super spreading in Healthcare Facilities and just the increasing numbers. And it wasnt that they just see remnants of the virus on the plastic in a kim days, its couple days, its that theres viable virus there, which means there is potential someone could be infected by touching a surface a couple days later. Well continue to reiterate the exact same thing. Particles in air can last for about three hours. This doesnt necessarily mean that if someone was infected they leave and several hours later that you walk through the same hallway or the same area and youre going to get infected. We have to remember most likely way that youre going to actually get the viral infection is if youre next to someone who is symptomatic. That being said, you have to be cleaning your surfaces. Cleaning means soap and water. We also want to be disinfecting the surfaces that a lot of people are touching. So for me in my house, were continuously continue infecting disinfecting countertops, door handles, remote controls, no contact delivery. If someone delivers something, they leave the package outside our house so we dont have to come facetoface with them and for now cardboard, ive been actually opening my packages outside. I take scissors and open it and empty the plastic outside and the cardboard never comes into my house. I try to clean off everything that comes into our house. The best thing we can do is pretend that everything has the virus on it and if you treat it that way, youre going to give you and your family the best bet of not bringing it into your home. Maria so dr. Nicole what about mail . What about money . Were exchanging money all the time, getting mail. So how do you not have mail in your house . Do we know about paper . So we have to kind of equate the cardboard box, about 24 hours of viable virus on it, to the same thing as mail, paper. They didnt actually study paper so thats kind of what it more equates to. And the truth is, we dont know. If youre going to be bringing mail into your house, assume it has the virus on it. The chances are it likely does not but lets just pretend everything does right now while we try to mitigate the spread. Ive been taking my mail in and leaving it on my doorstep for 24 hours in a safe and secure location and then im bringing it in. I put it on the counter. I open my mail. I quickly throw everything away i dont need. Wipe down my countertop, wash my hands really good and thats that. Thats the best we can do. We have to check our mail. Maria right. Wow. Really good advice from you. I like the idea that youre opening things outside. Youre opening the cardboard outside. Are you trying to jump in, steve . Go ahead. Steve i just want to ask the doctor, do we have any idea what proportion of this virus people get comes from surfaces versus being next to people who are symptomatic, do we have any idea yet . Maria thats a good question. Thats an excellent question, steve. And no, we dont. It does seem its mostly person to person transmission and i have not actually heard of a documented case of it being from an inanimate on. We have to assume there is going to be some spread that way. The reason that were seeing so many increased cases is likely because they believe its not only respiratory transmission, but its starting to aerosolize which is why healthcare workers are getting it because it stays in the air longer and becomes more infectious that way. The study is important to highlight that there is viable virus on inanimate objects. Lets treat it likes its everywhere. Maria absolutely. Dr. Nicole saphier, thanks so much. Great advice from you. We will see you soon. Meanwhile, fannie mae and freddie mac stepping up to help struggling homeowners affected by the coronavirus outbreak. Cheryl cherycheryl casone on th. Cheryl fannie and freddy are suspending mortgage foreclosures andy vickand the eviction of hos for 60 days. They guarantee nearly half of the u. S. Housing market right now. Shares are both down at least 40 from a year ago. Well, nba commissioner adam silver giving millions of basketball fans a little hope during the pandemic. In an interview he said while there is no time line for the season to resume, one option may be some type of charity competition. No details given on what that might look like. Up to 55,000 nba workers have been sidelined by the hiatus. As we have talked about, americans are trying to find a Silver Lining in the pandemic. Why not silver Christmas Decorations . There is a Viral Movement on twitter urging people to open up those boxes of lights that they just put away and decorate their homes as a sign of hope. The hashtag thereunderrin trends for life. The Hallmark Channel is ready to spread cheer. Crown media announced a Christmas Movie marathon for everyone stuck at home in self quarantine. It starts friday, march 27th and goes all weekend long. So were back to christmas in the middle of all of this. [ laughter ] maria oh, boy. Thank you. Markets are coming off of the lows right now. Were looking at a sharply lower opening for futures indicating a decline of 547 points, this is actually the low of the morning session, down 544 points on the dow, things have just worsened. We are sitting at 19,305. As you know, the dow dropped below 20,000 yesterday, first time in several years. We are taking a look at really for millions of americans when i speak with treasury secretary Steven Mnuchin this morning, dont miss this interview coming up about how the treasury is acting to protect the u. S. Economy. Hell join me live at 8 45 right here, mornings with maria. 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 . 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 . Maria welcome back. Fighting the good fight against coronavirus, health and Human Services yesterday announcing a partnership with public and private companies to develop a high speed high volume way to package drugs for emergencies like this outbreak. The rapid consortium would build several u. S. Based facilities to produce prefilled syringes containing medicines or vaccines. Joining me right now is Walker Digital chairman, jay walker. Thanks very much for joining us. So much to talk to you about as you have started so many Successful Companies and have been really on the front lines of healthcare for a long time. Tell me first about this partnership. Oh, maria, weve been playing defense against this virus and its time to go on the offense. The virus got the first blow, its humanitys turn. We have to wipe out the virus with vaccines next year. This year we have to make it harmless through the wide use of safe and effective drug therapies and treatments. The day we render the virus harmless is the day we can go back to normal life and everyone get to work. The problem is we need surge capacity. Its the missing link in the drug supply chain. That means as soon as weve got the drug, we can win this war if we can get it into people fast enough. How fast . We need 10 million prefilled syringes every day ready to go. Our currencies testimony cant do that. Hhs is stepping up and saying lets fix that. We have the technology to do it. And thats what this partnership is all about. Maria so we need the syringes to put the drug in there and youre saying that these syringes can be individual syringes and then you can just throw them away . Yeah. Exactly. Heres how we do it now. We make vials which are slow and expensive and take a lot of time and use a separate syringe for it. Heres what we got to do. This can be made an enormous high speed, 10 million a day with the drug right inside, ready to go. That means we can scale and distribute it fast. Basically, without lightning speed, you cant catch the pandemic. The key of course is when people get sick, you need therapies so they dont die. If they dont die, we start to turn the tide on this thing. The vaccine comes, but the vaccines going to take us time. Maria so i guess this sort of it enables us to not rely on things like glass or things that need to be washed after usage . Yes. You dont really reuse syringes at all. What happens here is you throw this away. Its completely disposable. But its ready to go. It actually comes in two pieces. This piece is made ate enormous high speed at plastic facilities and this is a needle hub. You screw it in, youve got a ready to go disposable syringe. Whats happening here is theyre getting ahead of the curve at hhs, thinking outside the box and moving against it. In six months or four months when we have these therapies, if we have no way to inject them we dont win the war. Weve got to build a rapid injection Tec Technology and ths what were going to do. Maria let me ask you to look from 30,000 feet now and give me your thoughts on how close an actual therapeutic is in terms of treatment here . You say a vaccine is going to be in 2021. Assess the situation. Where are we in terms of this fight . So all of our energies are going into therapies. Theres dozens of tests around the world. We will find the drugs we already have in the right combinations, maria, so you dont die from this thing. If you dont die from it, the fear goes away very fast. The key on therapies is you need patients to test it on. The rest of the world has been sick much more than we have. So we have way fewer patients. The unfortunate but benefit side effect is as we have more people who are infected in hospitals, we can test the therapies quickly. We can do it on our shores and we can see what therapies work. Almost every major drug company is working on this. Hhs has basically provided all the money these guys need to test almost every therapy imagineable. There will be hundreds of therapies. We will find therapies that start to work i believe by this summer. Maria all right. So by the summer. I was going to ask you, when do you think the first therapy will come out so people can get a calm, feeling a little calm that they can treat this thing and its not a death sentence . Thats exactly the key. The problem is, scientists need to be very careful, maria. If they announce a therapeutic drug is effective and it turns out its not, that will create mass panic and misallocation of resources. Scientists have to move fast but not too fast. If they get it wrong, were all in trouble. Theyre going to do the tests but theyre going to do them at lightning speed. The key is, once you have a couple of thousand patients, youve got a big enough population to test these therapies. Theres no substitute for testing among real people, sick people will volunteer. Maria jay, thank you for your leadership on this. Jay walker. Mornings with maria will be back right after this. whistling whistling maria welcome back. A private sector battling covid19, tesla is joining general motors, offering factories to make ventilators amid the pandemic. Hospitals are facing shortages of key protective equipment including masks. Joining me right now is premier ceo, susan devor. Its good to have you this morning. Thanks very much for joining us. Thank you. Nice to be here. Maria its very concerning to understand and get a better grip on the preparedness of our hospitals or the lack of. Tell us how you see it and assess the situation in terms of the need for masks, ventilators, even hospital beds, susan. Yeah, maria, this is an unprecedented challenge and the way we see it at premier is this is a challenge that is coming in waves. The first wave was diagnostic kits, testing and swabs. Shortages, the inability to get enough testing done. The second wave is this personal protective equipment and attire. And the shortages that exist in that space and the ability for Health Systems to get the volume that they need. The third is what you said, ventilators and the need for more ventilators. Theres also staffing problems. There will be downstream problems getting the pharmaceuticals that we need and so as we see this, there are multiple waves of problems that premier is trying to help the Healthcare Systems get access to the supplies that they need for the shortterm and for the longer term. Maria so let me just say so our audience understands, premier is a healthcare improvement company. You have an alliance with 4,000 u. S. Hospitals and Health Systems, 175,000 other providers and organizations to transform healthcare and here you are finding yourself all of these hospitals in this position of needing all of these products. What are you going to do . How quickly can the supply chain change where you can actually produce these things in america rather than rely on foreign actors for this . Premier does two things, maria. We do supply chain and we are 24 7 working with all of our Health Systems and importantly also all of the alternate sites like Nursing Homes to first get visibility to where all of the supply exists and where the demand is. And then to try to help allocate to the places that need product, when they need it, for the patient populations that are contracting covid. I think the longer Term Solution is weve become so dependent globally on other manufacturers for these products, we have got to bring this back home. We have got to take other production ability into like innovations in agricultural research. Because your investments deserve the full story. T. Rowe price invest with confidence. And platelet donations and asks all healthy donors to schedule an appointment to give. Now, with the corona virus outbreak, it is important to maintain a sufficient blood supply. Your Blood Donation is critical and can help save lives. Please schedule an appointment today. Download the blood donor app. Visit redcrossblood. Org or call 1 800 red cross today. You can make a difference. Welcome back. Good thursday morning. Thanks for joining us. Im maria bartiromo. Thursday, march 19 first you day of spring today, your top stories right now 8 00 a. M. On the east coast, the coronavirus swl continues to spread across america all handson deck cross the country concerns growing over number of younger people now contracting this virus President Trump signed a Coronavirus Relief plan into law providing paid sick looefl unemployment help free test to go americans of Steven Mnuchin joins me this hour 8 45 a. M. Eastern, to discuss what the administration plans are find out what is being done to help businesses to put money in americans pockets as government acts to protect u. S. Economy Federal Reserve backstopping mon market mutual funds Jpmorgan Chase warning u. S. Economy could shrink 14 Second Quarter sharp contraction begins april 1, major automakers halting project Ripple Effect impacting companies the New York Stock Exchange, has been announced it will shut down its Trading Floor shifting to electronic trading only markets this morning pointing to a triple digit line to take a look where we stand this morning at 8 00 a. M. On the east coast, the dow industrials down 509 points opening bell an hour and half away nasdaq down 105 points s p 500, lower by 58. Overnight the low steeper than that on to Global Markets we go we want to look at yesterdays selloff set the tone, dow below 20,000 mark, about for the First Time Since 2017 dow down 1338 points nasdaq down 345 points, s p lower 131. Cross globe actions to combat spread of the virus and Economic Impact greece is banning gatherings of ten or more european traditional bipartisan stimulus package australia an central Bank Emergency rate cut overnight. Mornings with maria is live right now. Global markets this morning down european markets as you can see, solidly in red ft 100 down 90 points a European Central Bank Stimulus package setting the tone, however, markets continue to trade down lose value even though there were gainers this morning cac quarante down 25 dax in germany back down 77 points right now in uk all schools have been closed london shut down some mass transit lines to contain this virus in asia overnight, it was red across the board, a take a look korea worst hit kospi down better than 8 overnight will levels not seen since 2009 as cases have been dropping in that country, yields treasurer 10year above 12 right now, in terms of Interest Rates talking about rockbottom levels but 10year has bounced off the lows, and today is lower down 5. 3 basis points from yesterday sitting 1. 132 , congressman Steve Scalise taking action after extended meeting last week with florida congressman Mario Diazbalart tested positive for covid19 utah congressman testing positive joining me on telephone congressman Steve Scalise thanks for calling in i am sorry to hear you are now quarantined how are you feeling. On the phone i am feeling fine just out of abundance every caution felt that last week last friday we were meeting on number of things felt best to selfquarantine right now through period, at house, that is what adjusted to not making any extra chances. You dont have symptoms then congressman you dont have fever you dont feel like you are symptomatic . No, no symptoms feeling great talking to physician about what things you would look for, but none of those things are there, i have been on a lot of conference calls, of course, still so many will different items working on from to build up bill passed yesterday, to make sure that we can keep the countrys economy going to keep families afloat while we work through this maria lets talk about that, what aid do we need coming at this economy, jpmorgan talking about economy shrinking 14 in Second Quarter, you know that Steve Mnuchin Steven Mnuchin rather said yesterday if we dont see acting on stimulus packages soon by congress you are going to see 20 announcement what do lawmakers need to do . On the phone maria i have own on a number of calls with secretary mnuchin doing great job for the president , identify what Different Things we need to do to make sure that families have money in pockets so they are able to make house notes car notes pay rent as well as working with businesses, yesterday i got a call you will with Small Businesses, throughout Southeast Louisiana over a thousand Small Businesses on call similar kind of questions really, two things that you are hearing from businesses, small, medium large, trying to figure out, you know they know that we dont know exactly when this is going to end, but like to have an idea when it is going to end because they want to make a o decision theyve got notes bank loans coming up up they have got payroll want to know can they keep employees make notes at the same time weighing, that is what we need to be focused on next package, and i think you heard from the president he wants all of those things, addressed. How do you make sure that families have money to cover notes while being forced to stay at home while companies are not getting any kind of cash flow and how do you keep businesses afloat so when we do get beyond this next two weeks, we have an economy to come back to. So how do you do that . The president is he asking now for additional aid one trillion dollars is that even possible . A. On the phone a very large package i think you are going to see package that big if not a little bit large because, all of the different items, seening mnuchin talked along the publicly we are working individually through all our committees of jurisdiction to identify best things that are going to get cash in the economy, be effective you dont just want to throw money out there you want the money to be spent properly to help keep businesses afloat so workers hopeful look we have already seen layoffs hopefully, we can stave that off businesses looking for some kind of idea what is there for them because they do have you notes to pay, look we saw some of this after Hurricane Katrina no two disasters crisis similar you had months of no cash flow, so there are a lot of things done in that case fdic gab flexibility to local banks to give authority to add 90 days fore bearance banks could work with local businesses with when did not have cash flow youve got loan do monday going to push all loans off for 90 days going to add 90 days to your note not like they said you dont have to pay but they gave them that about flexibility, and helped a lot in businesses through it so they could keep employees. That they could keep making payroll while also, recognized they dont have to sell off all assets to pay the notes that are due by banks, it was something that you know people just had to Work Together i am sure a lot of businesses are taking to their bankers lenders to make sure fdic other agencies have flexibility secretary mnuchin is putting out probably over trillion dollars commercial paper to put more liquidity in the markets businesses making decisions every day, i have talked to employers make decisions on thousands of employees. Whether or not 20 keep them or lay off we want to help system to keep employees while they can stay afloat, when we come out of this. Maria yeah, congressman quick weve got a job but there is a report on fox news that this is going to last 18 months, that is the way you see it . On the phone i dont see it that way i have talked to heads of hospitals, medical professionals working fast to try to understand as much as they can about this disease no approved vaccine there are a lot of things being worked out that doctors, and officials think have real good promise you know we are to a point in the next few weeks, where in summerlike a lot of flu you influenzas die off professionals think that is going to be case one month or two months, that is not known, but i think people are hoping more in weeks not months, it is are uncertainty but learning more every day. Of course, why yes, we are the worry is that maybe it goes away peaks and goes down then comes back in the fall, we are investigating that as well congressman good to see you be well, thank you so much for your time this morning. On the phone thanks so much m appreciate it. Top stories this morning the latest on the coronavirus numbers we have the number of cases has doubled in new york city, thank you jufrm as mayor bill de blasio new York Governor Andrew Cuomo not seeing eye to eye over a possible shelter in place ordered from de blasio a worker in facility in new york city tested positive first for worker at u. S. Amazon warehouse. Dicks Sporting Goods shutting down all stores two weeks due to coronavirus pandemic withdrawing fiscal 2020 outlook saying will not be issuing updated version at this time. How you my interview with treasury secretary Steven Mnuchin today 8 45 a. M. Eastern live will join me to Talk Solutions to this crisis. Back in a moment. When we face adversity, we find a way through it. Its about taking care of each other. Its the small parts that make a big difference. At chevy, we promise to do ours. Were offering chevy owners complimentary onstar crisis assist services and wifi data. 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Is going to take a sizable hit particularly Second Quarter hardest hit is going to come we are seeing a delay in terms of the impact of theing disruptions Global Supply change circle into some u. S. Numbers we are seeing i dont know if we havent necessarily enough information to say the size of the impact in Second Quarter, down 14 sounds dire scenario does sound like forecasting more recessionary scenario we are able to get ahold of this virus in the relative nearterm stemming off that scenario so we only see one quarter of negative growth, still very painful but not necessarily bringing us into a double digital drop or extended period six months or beyond. So i guess im assuming you are expecting a pretty good rebound third and Fourth Quarter. Not necessarily, remember we were coming from very slow pace going into 2020 just 2 . That 2 remember was coming against backdrop of massive government spending. We were talking about trilliondollar deficits, and record low rates, so 2 is not a great starting point, even if we do see a short term hit to gdp Second Quarter as i suggested still likely somewhat a yushaipd rebound bringing us back into low but positive territory in the second half 2020, and more likely into the first part of 2021. So still painful but not necessarily quite as deep as some other forecasts would suggest. Maria your views of response from government the Global Central Bank coordinated action, as well, as white house fiscal stimulus coming out of the. Not necessarily important how i see that but how market see the it market sees it disappointing not reaching expectations in terms of the central bank we any rates were extremely low so there was very little firepower, in terms of what the Federal Reserve could do. From federal government there has been seemingly more energy to provide Additional Support of to u. S. Economy we havent seen that come to fruition yet. Yes, we have seen some money allocated in terms of Additional Research we have seen additional sick pay added testing regardless of your insurance, but i do think that the market for the American People average American Businesses being closed schools closed lost wages, expecting a much large stimulus package and that has yet to come to fruition, we continue to see volatility of the market, responding negative to that lack of action fiscal and Monetary Policy. Maria great analysis thinks very much for joining us we so appreciate it. Thanks for the having me. Lindsey from. Fiat chrysler suspending production mark fields will join me next. 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 apps except work. Rywhere. Why is that . Is it because people love filling out forms . 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Materials made from recycled plastic woven and molded into all the things we consume. We created bionic and put the word out with godaddy. What will you change . Make the world you want. Maria welcome back. Giants of the American Auto industry ford gm Fiat Chrysler halting production in north america because of coronavirus Honda Toyota Nissan delaying output tesla staying open for now the former ceo of ford, an emergency situation something weve 911 seen before what is your reaction to this. First off i think oems out of abundance every caution for workers want to keep workers safe, this is unprecedented, at this time of the year, kooem shutdowns occur during summer for summer vacations, but, you know, clearly, there is no visibility on sales going forward. It is impossible to do a financial forecast. The when you are trying to understand what the market demand will be so the oems have to work through this i think first and foremost was keeping workers safe, and secondly there is no sense in building cars and trucks if you dont know what market is going to be. Maria yeah good point, how big of a hit this is for the Auto Industry . And are you expecting that we are going to see layoffs are there automakers may be wont make it out of this . Well i think you have to put some things into perspective the Auto Industry particularly detroit based oems much stronger financial position than they were a decade ago when we had Great Recession, you had gm ford have liquidity about 34, 35 billion dollars. I think fca little over 16 billion, on any given month for lets say gm and ford you need about four billion dollars to keep lights on to keep paying people clearly they are coming from a Balance Sheet that has a lot of strength every oem ceo is focusing on liquidity Balance Sheets it comes down to how long this will be in place, right now it is about two weeks who knows how much longer it will go they have wherewithal much more this time in this crisis than a decade ago. Maria let me bring in panel weve got steve forbes Dagen Mcdowell veronica with us in terms of crisis dagen. Dagen i want to get your take, on what a bailout should look like, say for the airlines, in treasurys outline of package 50 billion dollars for the airlines larry kudlow economic adviser to the president at least throwing out idea taking an equity stake in businesses that get a bailout with airlines, how many more times do the American People need to rescue this industry rescueed after 9 11 did not manage for another crisis, delta, for example, went abrupt 2005 wasnt a financial crisis, paid over a billion half dollars bonuses to employees plying back stock frankly all the airlines were are applying back billions of dollars of stock. I know i sound like Chuck Schumer but bailouts of bank gave rise to tea party as you such outrage businesses should be managed for interruption not 100 year storm they got bail out less than 20 years ago. I disagree in a this is this is a hundred year storm when you have customers not only customers who are going for recreation but business customers who cant get to locations and cant fly, your business essentially goes down 90 , that is a hundred year storm. And i think, whatever form sport government is going to give, i think clearly they have to be able to participate in the upside, but i think they are looking at this saying listen, the Airline Industry is so critical for the functioning of the economy here, that if it goes bankrupt goes away we have a really much bigger problem to deal with as nation i think probably looking through that lens. Should strings be were attached like equity stakes or at least, make the bailout onerous to make sure businesses are better about conserving cash before the next crisis . You could put equity stakes, loan guarantees the last Great Recession a lot of loan guarantees put out repaid the government actually made good money on that. I do think you have to oi step warily around putting people on boards Government People on boards getting them involved in business decisions, but i think you know clearly there is going teef off to to be ground rules airlines have to agree to, the bargain for getting clit thliquidity to in business. Bank of america says we have fallen into recession already do you agree with that are we in have a recession right now . Well, we dont know yet you know, you have to we have to get the economic about metrics but clearly when you look at things the things that cause a recession three things basically cause a recession aggressive tightening by the fed in Monetary Policy that is not happening you see economic and Financial Market imbalances we dont have that third thing exogenous shock clearly we have that companies furlough employees, clearly when folks are staying in hunkering down in homes, they are not going out and spending monday on vacations, or going to bars, or restaurants, clearly you are starting to see that now, and you know we probably are in one right now, of course, the metrics backwardlooking i think will tell us last week or two we started to contract from gdp standpoint. Absolutely, of course, as i mentioned earlier jpmorgan things 14 line to contraction Second Quarter thank you very much a key indicator of the economy, is jobless claims, and those jobless claims numbers are coming out, in about 2 1 2 minutes i want to get with panel here, because steve forbes this is one area going to give real indication of who is out there, stretched we are have an expectation, of jobless claims 200,000 for the last week, how important is this number steve . It is critical number i dont think this number is going to tell us contraction of the economy under about toing that is coming next few weeks as people get laid off i wouldnt be surprised if above 00 getting relief out in terms of credit to companies, through the Federal Reserve, with that facility they are settling up not industry specific like Airline Industry. But any Major Company business that should be able to get a loan above market Interest Rates, and not taketh things like that getting politics involved this is the front line number tub a big one is going to come week. Maria estimate is 220,000 jobless claims for the week your take. Dagen that it will is go being to be much, much higher than that potentially just looking at the jobless claims, numbers, that we are getting out of the state ohio in last three days, 78,000. Jobless claims, 30,000 new claims in connecticut, just since monday, the numbers are adding up i will point out that the danny meyer runs Union Square Hospitality group were early end of last week to talk about p shuttering restaurants yesterday said we are laying off about 2000 employees so they can file for unemployment benefits. The question is what happens in the long run with individuals, because in the restaurant business, you could see half the restaurants just here in new york city go under forever, so that is why you need kind of a next step and next step, stimulus in rescue package not just for businesses but for people. Individuals. Maria yeah . Quick. I think we are going to see is a big jump this big bigger jump following week i think what is interesting to note a lot of states are reporting a big increase in people calling in trying to log online to file for benefits, were hearing they are trying to log on file for benefits and getting locked out. Overloaded. 281. 218 is number we are getting numbers the estimate called for 220,000 jobless claims number 281,000 to want to get Economic News out as soon as it hits tape market moving number as we focus on the idea that we are going to see layoffs as a result of all businesses closing down, so this market is worsening on this number we are now looking at futures down 600 points, where watching markets closely the jobless claims for the past week 281,000 versus estimate of 220,000. Reaction . Yeah, so we are going to see emotion pressure objecto on stocks that number unfortunately bad number going to get worse, i think in for a couple more weeks on this, maybe a couple more months unfortunately, a lot of pressure on american workers, and their families, and their paychecks i really hope that they get the systems working so people who need to file for benefits can actual do so we are hearing reports about that, people are trying to file for benefits, they are not able to get through. So you can imagine, the stress on americans what they are dealing with right now. Maria here is another Headline Bank of america is expecting a loss of 3 1 2 million jobs, in the Second Quarter. It is Second Quarter that is really seeing the brunt of this, but we dont know, how long it goes beyond the Second Quarter. We dont, i said all week, this the speed the size and scale will with which this government responds to this sudden crisis, literally you have a modern economy shut down in a matter of days here, so it is response on the individual side, and getting literally cash to individuals, who are out of work through the announcement claims systems but also through check potentially to the very people who need it to steves point, a swift rescue a swift loan package for these businesses that are hurt through the Federal Reserve so you dont get politics involved, so it doesnt take literally weeks or months to get that money to those businesses, to make sure they are solvent. So steve you have been talking about that all morning, flush that out because we are going to talk with mnuchin shortly i want to make sure the treasury secretary dresses this issue, that you have been you took about all morning why dont have i say while i toss it to you fill awe Federal Reserve Manufacturing Index out philly fed is now showing a contraction down 12. 7 the estimate was up 10, none of these mean anything anymore i feel things are happening so fast. Steve . Why Federal Reserve facility setting up on section 133 is so important is that should be industry neutral any company that was solvent before this crisis come in get a loan to survive this crisis above market Interest Rate that way keep politics out, they will have incentive to pay back they know they can get loan quickly not after congressional appropriation or anything like that, do it set it up can be running tomorrow. And make those loans now. So we dont have to have massive layoffs, they can weather the storm. Without dragging feet focusing on Interest Rates, good to do money market funds critical, but they got to make sure, industry gets that cash be able to survive. Now. What do you say why do you say they are dragging her feet it is sort of all handson deck you go suggest a you dont want anything to have to get approval from congress you are saying. Section 133, all they need the fed is permission from treasury secretary that is a phone call, they have got it from fr for commercial paper, good, but they need to make it very clear in two areas one is it is industry you neutral encourage Companies Come in now, not wait for congressional appropriation the other thing following through on that congressman scalise talked about with banks, tell the regulators banks can will not be gigged if they extend loans 60, 90 days Small Businesses otherwise solvent not face insolvency bankruptcy because of circumstances absolutely beyond their control. I understand as soon as steven moon manuchin come on wel ask nyse announced all trades done electronically on monday with when Trading Floor will be closed, joining me on telephone former chairman New York Stock Exchange led over decades of growth dick grasso with us thanks very much for calling in i want your take how big a deal for Trading Floor let me ask you what were seeing in terms of the behavior of people, you were Running Exchange during 9 11 i was with you on 9 11, i know how tough it was to open the market after the september 11th attacks i remember stand there go on the floor on september 17th it was very moving day when you had all the First Responders governor of Senators Congress for new york ringing he opening bell firefighters prang opening bell with you pictures of this after you rang the bell i was on the floor of New York Stock Exchange i interviewed wheefsh hood just rung the bell trying to figure out how behavior would change when do you expect people will start to get back to normal sort of upset this is a new normal we need to get back to our regular life to fight back . On the phone maria you are so right, good to be with you, remember, as quickly as this economy has shut down, are it can spark right back up. And if you read that jpmorgan estimate 14 2q contraction, remember at back end of this year talking about a vbased recovery our economy is consumer driven if governments package gets plenty of money in hands of individuals who need this hands of business, who employ those people we are going to see as the president said a snapback, if people Pay Attention to what the treasury secretary said two days ago we want to give people access to their money at the same time we want to protect people, what the nyse has done, they are protecting people, they are giving them access to their money by going electronic i applaud their action. A moment in time when you make a move like this, it may very well change the way we live and change the way we work, forever. So does this is this kind of move that basically will push the exchange to basically not open the floor anymore if you can do this strong electronically same results why have the floor in the first place. On the phone i think you heard Stacey Cunningham indicate while we are going fully electronic there are certain types of orders that brokers who are on the floor can enter, and can use to serve investors that may not be fully available. So this is a good stopgap. I think people will evaluate the process, but i would not at all be surprised to see once the virus has been dweetdz and it will be that we resume trading. You know i feel like i feel like after 9 11, dick, we all were in it together as nation we were attacked rand i feel the country wanted to rise from the ashes together and fight back to show the terrorists they were not going to change our lives they were not going we are with down in mourning would not be out. Today is different such vitriol difference of pnz because of politics do you see siments differences similaritiesing differences in situation we find ourselves in onnon i am absolutely thrilled this president has brought together the public and private sector he is basically resiliented not partner this you are partisanship issue our enemy is not alqaida, carrying ak47 our enemy is a virus we have the best scientists in the world the best medical facilities in the world we will defeat it there is a mourning coming and it a morning coming bright one america will ridse as it always has. Thanks for calling in please dont be a stranger thank you very much. Thank you, maria. Dick grasso making sure we understand, that there is sun at the end of this tunnel market dont like like it this morning certainly that is true what dick grasso just said take a look where we stand the market is off the lows, but we are talking about a decline start of trading 40 points dow futures had been down overnight 988 points overnight this is extending selloff of yesterday dow closing below 20,000 mark for the First Time Since 2017 yesterday, joining me right now investor in this market, is alphaone Capital Partner founder dan niles thanks for calling in tie when you see a market, that is trading the way it is what do you want to do i want to point out that you were short apple months ago you saw a problem with apple partly because of the coronavirus where are you today on business and the stock market . On the phone sure, thanks, maria. I think if you look at the markets right now, you still got a situation where the market is still overvalued, but that is because we started such a high level. My favorite metric is you take market cap entire stock market, divide by gdp if you look at that market was trading 1. 5 times, level, and the average since 1970 is about 0. 8 even during tech bubble only got up to about 1. 4 it made sense valuations had to come in i think the good news with this market, you know you went through first stage where you basically sold everything. So now you started to create interesting opportunities, and names, out there where you go you know companies can do very well in this environment and that will continue once we get back to normal, so for me, it is you know i love this market the sense that it does create opportunities, some names have come back in, obviously, very painful in terms of the drawdowns but i think you can find rebar gains much like after 2008 market will come back stronger nearterm you have to go through a lot of pain. Maria so you are not ready to step in yet what you are saying, the pain is not finished. No two pieces the multiple right now that market cap to gdp is about 1. 1 times as i said the average is about 0. 8. You know earnings are headed lower so stock market the s p down 29 from peak the last two recessions the market went down 50 from peak, and that sort of my base case doesnt mean we are not going to have lalz along the way obviously if we find a vaccine, you know overnight, then the market will come back quicker but no, i think the lows are ahead not to mean were not going to have incredible rallies in between, right, and we have seen that market moved 7 a day for 8 trading days unbelievable. But we are putting money to work just this time around you also have the this time around pardon me you have problem of oil, you know oil dropping as far as it has, because thank you russians will not agree to output cut and russia is fighting with saudi arabia. This is adding on to very sensitive fragile situation how significant is oil collapse 21. 98 a barrel right now. On the phone i i mean very significant, if you are somebody who is exporting oil if usual russia or saudi arabia this matters a lot to you, if you are china or japan, that imports oil this is great because oil prices have dropped a lot that is a massive import into your economy so obviously, general horrific depends where you are part of the reason if you look at shanghai composite stock market, invite, that went down 15 off coronavirus got within 2 getting back to those levels at one point when the infection started to peak out 15 or so since then look where outbreak hit it was china, you cant the good news right now, i guess, or bad news depending how you look at it, everybody is painting all companies with same brush. That is not case there are Gaming Companies that are doing well, you know we own amazon, there are obviously, doing great, and we like some of the names, in for people trying to work remotely so i think there is opportunities there, too. Okay i am glad to hear you say that that there are some places to hide. In a market that has been going nowhere but down several weeks dan thank you very much for weighing in this morning we so pressure it dan niles joining us, President Trump signing 1200billiondollar Coronavirus Relief package yesterday paid sick leave unemployment health free testing for americans as Federal Reserve is taking action backstopping money market mutual funds futures line to 358 points well off lows of the morning joining me right now on the telephone, is treasury secretary Steven Mnuchin mr. Secretary thanks very much for joining us we appreciate all of your efforts, how hard you are working in face of some real challenges, let me ask you seems like you are putting everything including kitchen sink on table yet markets selling off. There is real disappointment in your package, sir. On the phone maria first of all good to be with you, i would say as i have always said i cant predict where markets are today, tomorrow we are focused son providing liquidity to American Business american works as you know this is unprecedented situation for good reason, the government is instructed major parts of the economy to close down so that we can win this fight against this virus. This is not going on forever we are going to beat this, while doing that, we understand there are impacts on hardworking americans, the president is determined that we are going to support them. So we announced a trilliondollar plan, the first part of this is 300 billion dollars to Small Businesses that needs to be used hiring people, keeping people on payroll, if they do there will be loans forgiveness on that afterward, the second component in that that is really important maria 40 of the private workforce and we want to keep those people employed the second component i referred to this checks in mail it is monday direct deposited most people we have all information, the plan is 500 billion dollars in two tranchees first 1,000 per person 500 dollars per child family of four,000 dollar point in time, as soon as Congress Passes this we get this out in three weeks, then six weeks later if president still has a National Millionaire we will deliver another 3,000 dollars so that is a lot of money to hardworking americans, who are at home no fault of theirs, the third component is 00 billion dollars that we can use for othero with fed like doing, for secured lending to airlines for other critical industries. Maria i mean you just said a moment ago you can being have this out within three weeks once Congress Passes it all morning long, steve forbes has been saying we need something now we need treasury secretary call Federal Reserve open up window for Small Business now so any Company Company solvent can get it now. I think the treasury fed have been working around the clock put out together, theyve put out we supporting with equity, there is three facilities, last night the press release came out 11 30 working super late to get out very important Facilities Support money markets worried that hardworking americans were going to find couldnt get money out money markets i can sure you fed understands, authorities we are working together on them, and where we dont have authorities we are going back to congress, i have already asked that, so you know we are focused on being able to provide liquidity to companies, that is our obtive powers that we need will get back to president is determined to go big support American Economy. Yes and, yet, even in the crisis situation, you have some even republicans pushing back voting no, yesterday on this, because of debt because of they dont think the package is is realistic for business, what are you going to do in terms of politics getting involved, and the two sides cant come together, and vote on this . That is why forbes is saying do this now make sure that the window is there at the fed. Let me say the things we can do we will do i dont want to go on xepts what steve wants us to do some things we can do some things we cant let me just say there is a lot of you bipartisan support people puting politics aside this is about predicting the American Economy you had overwhelming vote on bipartisan vote in senate and house, senate is here working, working on this next package, we were on phone round the clock with them yesterday. With Mitch Mcconnell and his team i spoke to Chuck Schumer several times to speaker even though she is not here, so i think everybody realizes there is going to be massive support for this economy, on both sides of the aisle. Maria mr. Secretary let me ask you about what bill ackman is saying the Hedge Fund Manager went on a tweetstorm saying there should be no defaults no foreclosures wants 30 day tax holiday for all are you considering taxing holiday whether be comments saying shutdown shutdown about about inevitable please send everyone home now hell is coming. So hes bill ackman. I surely dont agree with him on last part i think we are doing everything we can. And we are going to get out of this quicklies let me just say, yesterday i was very pleased to see mark calabrio announce fannie and freddie are going to suspend foreclosures 90 days going to issue fore bearance hud did same a giant part of the market. My expectation is on the banks will follow where they have been so absolutely, first of all we do not want to be fore closing on people we want to get liquidity to people there are parts of the economy that we have shut down there are 35r9s of the economy that are booming. Maria what about those industries that really need help in terms of what people are calling a bail out here larry kudlow teasing idea government taking equitying stakes as part of that plan. Are you considering that. Maria would i say thissant a bailout let me say that for Small Businesses, we are providing liquidity if people shut down restaurants told to that is not bailout we are doing things to to encourage them keep workers as relates to big Companies Like airlines we are looking at making secured loans on market terms, so you know, we will see whether that includes equity or doesnt include equity not going to force things on people, but people who need the liquidity we are going to maker that at a taxpayers are compensated fairly, but i can assure you the fed we the president all one hundred percent focused on providing liquidity to this economy. So you know we have told the house and senate, we need to get legislation done, quickly. This needs to be done by beginning of next week, and i think once you see more and more money coming into the economy, americans are going to feel a lot better, and they are going to understand, that this is a virus we are going to get through this. This is not financial crisis that will go on for years we are going to destroy this virus and our economy will come roaring back better than ever. Maria what are the measures in order to release money to various industries yes, i understand Airline Industry is seeing zero business, i understand the cruise ships, and even the banks i get it. But boeing wants money i mean specific Companies May want money what are measures you are using to as an allowance to release money to various industries if not a bailout . On the phone well maria, it is not a bail out because we have Good Companies that have shut down businesses for 30 days for 60 days, 90 days that are going to open those businesses. There is going to be a lot of in an this isnt about bailing out bad businesses this isnt about banks that made bad loans these are about very, very Good Companies, that have been instructed to shut down, so they need liquidity, that is with a what they need, and most cases, my expectation is they will be able to 35 back those loans in small bids if they cant 235urd we will for fwif them i dont consider that bailout i consider that an incentive to keep workers hired. You seems most people do not want to take politics any way, shape or form we have all handson deck i applaud you and administration for bringing business in to make sure to come up with solutions, but robert zelic former head world bank has oped out this morning what he writes, secretary, trump positioning tariffs leave u. S. Short on vital med supplies proclaiming the president s plan program for the fact we dont the medical supplies we need all this is made in china. On the phone that is absolutely just not the case ambassador lighthizer waved tariffs on any critical item weve continued to do that on critical items that is just not the case i would say we are doing everything to make sure the supply chains stay open i want to complement the mel professionals around the clock testing with private companies as well as government i think the American Public is going to have a lot more confidence as they see quick testing rolled out so we are doing an entire government wide resources, i can assure you that article is not correct about tariffs. I know you are what about bonds to finance relief bill planned for more stimulus is this still on the table secretary . As to. On the phone maria we had given thought to 05 year 100year bonds, surveyed market went to investors went to foreigners pension funds, there was some demand for it even our desire to be regular predictable we decided could raise a lot more money 20 year bond would expend our duration were going to take advantage of lower Interest Rates the good news we can refinance a lot of debt at low levels we have no problem issuing more debt here, so we are determined he to support this economy. And the most important issue is we now get this trilliondollar package passed so we get money into the economy. And i think you will see when hardworking americans and bus have access to credit, you are going to see a stabilization in this economy. Maria a secretary i know that we are in the sort of a very sensitive and fragile moment in time have particularly going into next couple weeks, we are going to see number of cases spike. Should we be ignoring Economic Data a this point he go not jobless claims out 281,000 jobless about applicants you warned lawmakers that we could see unemployment spiking to 20 if action is not taken. Do you stand. I want to clarify. I was not predicting that. What i said is that 40 of our work force is in Small Businesses, and i said if half of them were left off, let go, mathematically we would be at 20 unemployment. So again, what ive said to the law makers, and they understand this, is we want to keep those people employed. That is what is important to do. But i agree with you, the statistics in the short run of economics are obviously not relevant. This is an unprecedented situation where the governments direction, we shut down parts of the economy and now is the time that we provide government support. Thats the role of the government. Maria so you know, bank of america is talking about three and a half million jobs lost in the Second Quarter. Theres a debate on how significant the contraction it will be in the Second Quarter but we are talking about 8 contraction, 14 contraction if you listen to jpmorgan. Is it fair to say from what we know today that its really the Second Quarter thats going to be the sharp contraction, or are you expecting the second and Third Quarter to be the bulk of it . Whats your timing on this is the bottom line, secretary . I think youre going to see the Second Quarter down. I think people are speculating, nobody has any good view of what it exactly is. I think you are going to see the Third Quarter pick up and i think you are going to see a gigantic Fourth Quarter. Maria gigantic Fourth Quarter why . Because you think much of the worry over coronavirus will be behind, well have more clarity from the Drug Companies . Why would the Fourth Quarter see a gigantic rebound . Because i have a lot of confidence in the medical professionals. We have the best medical system in the world. Theres a lot of viral treatments that are in trials now that are proving very effective. I think theres more that are being developed. I think there will be work on vaccines. So i think we are going to kill this virus and were doing all the right things now to make sure that it doesnt spread, and i think youre going to see a lot of pentup demand. I think youre going to see when we get through the next few months and americans see whats happening, we have killed this virus, people are going to be comfortable going back to work, we will be opening back businesses and people are going to continue what they do. They are going to live, shop, eat out, enjoy restaurants and travel and entertainment and we will go back to a normal world. Maria yeah, but there are some expectations that, for example, in the restaurant business, a third of restaurants will go away. You know that there are Many Companies that may not make it out of this, secretary. What about the oil patch, with oil prices where they are . How significant are you expecting the bankruptcies to be in the oil patch . Well, let me just go back to the restaurants. If Congress Passes our plan, the majority of these restaurants are Small Businesses with 500 people or less, and in our plan, there is money for those owners to keep those people employed. So we see no reason why those restaurants should be permanently closed. Those restaurants should be closed for a short period of time, the workers should be paid. Thats only fair. Not their fault. And those restaurants will be ready to open. Now, as it relates to the oil market, let me just say this could not have a curve at a worse time but this has nothing to do with the coronavirus whatsoever. So there is no question that theres both supply problems as well as the demand problem. Im going to tell the president that my recommendation is that he goes to congress and asks for a lot more money to fill the Strategic Reserve at 22 for wti crude. We should be filling up the reserve for the next ten years. So we are