Steeper decline. We will have the first numbers. First contraction in 6 years and also hearing from Federal Reserve jay powell later today. Also another big day for earnings, boeing is in focus this morning, wall street journal reporting reporting thae aircraft maker is facing criminal probe into Quality Control issues on still grounded 737 max fleet. The company also reported looking to raise capital to major bond sale. On tap before the bell this morning, General Electric is out with its earnings along with master card and ensurers anthem and humana, after the numbers attention to microsoft, facebook, tesla, markets are higher, take a look at futures, gain at the start of trading, dow futures right now showing a gain of 180 points, three quarters of 1 . S p is up 25 and nasdaq higher by 93. This after the dow, nasdaq and the s p 500 erased early gains yesterday to actually end lower. Dow industrials were down 32 points at 4 00 oclock on wall street yesterday and nasdaq down 122 and s p down 15. Google parent alphabet is putting rise in revenue but also reporting sales and downturn in the month of march. Mornings with maria is live right now. Maria Global Markets are mixed, mostly higher, ftse 100 is up 1 and cac quarante is down 5 points, dax index in germany higher by 45. France announcing it will tighten restrictions of Foreign Investments from outside of europe to limit foreign control over key sectors including technology, limitations on china is what thats about. In asia overnight, slight gains, as you can see best performer was korea of 3 quarters and 1 . Japan closed for a holiday overnight and oil prices this morning bouncing after u. S. Stockpiles rose more than expected. Hope is growing the demand will return as lockdowns ease up. Price of oil this morning back at 14. 08 with a gain of 14 on the section this morning. Some of the top stories that we are watching right now, covid19 cases in the u. S. Now topping 1 million as more states roll back their restrictions this week. Today tennessee will allow Retail Stores to reopen at 50 capacity. Wisconsin allowing nonessential businesses to do curbside dropoff of goods. Car washes to reopen and rentals, Recreational Equipment as well. In california Governor Newsom released phase 4 from reopening, Curbside Pickup for Retail Businesses as well as schools. The reopening of classrooms has been met with criticism after newsom suggested they may restart as soon as july. The race to develop a Coronavirus Vaccine meanwhile heats up, pfizer says u. S. Tests on an experimental treatment could start as early as next week. Successful results could lead to widespread use by the end of the year. Good news for pfizer and for the country. Oxford university developing vaccine that could be ready in september with human trials for next month and then theres Johnson Johnson and biotech moderna and shares are higher in premarket, 1 and a half percent on the news this morning. Small Business Owners meeting with President Trump at the white house yesterday. The president says that Small Business administration has processed 50 billion in loan in second round of the paycheck Protection Program. Congress passed 320 billion in additional assistance last week after first round quickly ran out of money. Some banks and businesses have complained that bottlenecks are happening on the sbas website. Joe biden hoping a key endorsement from Hillary Clinton will help him win the female vote in november. The former president ial candidate making announcement during virtual town hall yesterday. Mrs. Clinton the latest highprofile democrat to throw support behind joe biden. Amazing flyover by navy and blue angels and thunderbirds saluting workers and others on the frontlines. Some of the hardesthit states in the country. Futures this morning are higher, take a look at markets. We are expecting a firmer opening this morning. Investors are awaiting firstquarter advance, gdp today and thats coming in about 2 and a half hours from now as i mentioned, we are expecting pretty good contraction of 4 , earning season also in full swing, boeing releasing firstquarter earnings, microsoft facebook after the bell tonight. A lot of earnings on top and may very well set the tone. Here with me strategic wells fargo president mark tepper, Dagen Mcdowell, Jackie Deangelis and steve forbes. Mark, lets kick it off with you. A lot of Economic News as well as earnings news, how bad do you expect the contraction to be and are you still buying stocks given that we are looking at a recession in the horizon . Yeah, so i think a lot of people are expecting q1gdp to come between negligent 3 and negative 5 and if you think about it in the First Quarter the economy was really shut down for a few weeks so if the numbers come in worse than that, thats when you will really know that Small Businesses, businesses overall start today really reel back before they were officially shut down. Next quarter is where youre expecting a negative 30 , right, this was assuming a reopen of may first, but as we are seeing right now states are reopening process but its a process, slow and cautious process to getting us fully reopened, so, yes, obviously we are looking at, you foe, probably the deepest recession ever. It still makes sense to be buying stocks when you look at the relative value, theres absolutely no value in any other asset class right now with the exception of maybe gold, so bonds dont look attractive, real estate looks deeply damage and i think stocks are a great longterm investment but i do think markets have gotten a little bit ahead of itself and maybe poised for a pullback. Maria Dagen Mcdowell, you look at the market, biotech is near highs, Technology Near alltime highs and certainly pockets of are doing very well. Dagen they are doing well. The journal has Interesting Companies that Even Companies that are doing well during this nationwide shutdown like a ups because people are shopping at home and a 3m making 100 million in extra face masks sales this quarter, those businesses are actually hurting as well because ups, for example, is more profitable in delivering to big, big shipments to offices and stores. That business is gone. 3m is overall adjusted sales in the americas fell 20 just in april, so its very hard to find businesses that are perfectly immune to this slowdown and as i said, people really dont know when the consumer is going to come back and when business spending is going to come back, so youre really flying blind with a lot of the stocks. Maria yeah. Well, i guess mark, what i was referring to are some of the areas that are actually doing well during the pandemic like the online area. I mean, amazon, telehealth, teleeducation, some of the ideas will likely stay with us once we are out of this and when you look at the Biotech Sector and pharma sector with the progress on looking for a vaccine, those stocks are doing well because of all of the promise in terms of growth from a vaccine there, but you certainly do have tech, biotech, at all time highs right now. Mark yeah, you know, healthcare looks like an absolute great sector. The government is going to be increasing spending significantly and whenever thats happened throughout history that sector has outperformed the s p 500, so within healthcare, theres lots of names we like, obviously biotech has been a great performer, just based off of hope, hopefully theres a vaccine and hopefully theres a treatment. Gilead had a nice run and pulled back a little bit. I think its been unfairly beaten up. They do have a patientfriendly less invasive way to screen for colon cancer and thats poised for a pretty good rebound. Maria steve forbes is on the task force in terms of reopening the economy. Steve weigh in here. How is it going so far, texas will be rolling friday. Yesterday i went on a bike ride and there was a lot of construction on the road and thats one area that senator borrasso, one industry that can get back to work pretty quickly, the construction industry. I saw a lot of it actually on the road just yesterday. Steve yes, i think people are eager to get back to work but one of the things that will be an overhang how quickly Small Businesses get back on their feet. They may have to go through regulatory processes, inspections again, they have the challenge of Unemployment Benefits and many cases being higher than what they are paying before the crisis and so if the Small Business sector is struggling, limping, thats going to have an impact on the rest of the economy and im wondering if thats going to ultimately affect the Bigger Companies and hurt their recovery, the speed of the recovery i should say. Maria mark. Mark yeah, as far as just to piggyback off of Small Business comments, Small Businesses employ 50 of the private labor force. Its important that the Small Businesses are open so that we can keep people employed. It is much better to have a job and get consistent paycheck than to get onetime stimulus check or get some introduced juiced Unemployment Benefits. Median annual sales of 5 million, fortunately i have noticed a positive tone within the community, maybe 3, 4 weeks ago it was doom and gloom and now people are talking about opportunities that may exist that theyd like to take advantage of so things are looking better as it relates to Small Business. Maria what about crude oil, Jackie Deangelis because u. S. Stockpile rose less than expected from Petroleum Institute but the selloff is indicating real demand slowdown or halt and what does that tell you about where we are going in terms of the economy and the storage for oil . Jackie it really troubles me to be honest. It was a real shock to the market and wait a second here, there could be trouble in the horizon, things will get better, the prices are higher, thats assuming that there will be a rebound, maria, we dont necessarily know exactly how its going to play out in terms of a timeline and you look at crowd trading at 14 bucks and as you see as contracts roll, but the front month keeps getting slowed down, thats the one with the most open interest and im worried about that and im worried about the fact that people point to the financial crisis too and theyll say markets went up and they fell again and we saw lower. Im worried that that could happen potentially here and that maybe investors are looking at the markets and they are looking at the whole financial landscape and theres really no one else to put your money because Interest Rates are low and thats what youre seeing in this market and im wondering what mark thinks about that. Mark theres no alternative, right, so people are investing in equities because the longterm return potential is definitely greatest in equities. When you look at oil, its all a matter of supply and demand. The world was consumer 90 millionbarrels a day prior to covid and that dropped about 25 million a day. You know, but key producers have only agree today cut by around 10 million so theres just way too much supply, youve got Storage Facilities which are at max capacities so oil unfortunately really not the best place to be to be looking as far as investments go right now. Maria yeah, interesting to think back when oil was above 100 a barrel. Those days are obviously over, mark, good to see you so much. Thank you. Maria mark tepper joining us on investment. Saving Small Businesses, President Trump meeting with small Business Owners, would Payment Protection Program will be enough . The largest Movie Theater says it will no longer play movies from universal picture. We will tell you about it and how universal is responding this morning. In 14 days they did more work and more loans both in terms of applications and in terms of amount than they did in 14 years. Our swift action supported or saved 30 million american jobs at least. Maria that was President Trumps speaking out yesterday and the progress being made to help Small Businesses through the paycheck Protection Program. Small Business Administration says that as of yesterday for the second round of paycheck Protection Program 475,000 new loans had been approved. For more than 52 billion, joining me right now to talk more about that Florida Bankers Association president and ceo alex sanchez. Alex, good to see you this morning, thank thank you so mucr joining us. As part of the organization of ppp, is much of that money committed at this point or not . Alex great for having thank you for having me on and great to be on the show again. All have incredible amount of applications that they are processing and its been around the clock processing since the kickoff this monday, so, you know, many said that the moneys would be depleted within 24 hours, thats not true. As you said as of yesterday at 1 00 oclock it was 52 billion so i think we have days to go but im urging all all small Business Owners to please go to your fdic bank today and start that application process because time will run out. Maria clear in terms of who bankers can lend to . A lot of mistakes Large Companies taking money, publiclytraded Companies Like shake shack, harvard with enormous endowment, so do we know in terms of the banks having clarity in terms of who is eligible this time around . Alex maria, we do and, look, i have to thank the president for his leadership. I mean, when you think about the sba 23 billion last year worth 12month period they were expecting to give out 600 billion over a 4week period. Its amazing. I mean, the president , you know, the secretary mnuchin, of course, our senator marco rubio who wrote that part of the cares act, so, yes, maria, there has been the analogy i could say is building the airplane while it was in flight at times that we didnt have the guidelines, so the work our banks have done, maria, in getting help to our small owners is amazing and and, you know, as of yesterday 80 of the funds distributed were from banks less than 50 billion in size, so banks of all sizes are participating trying to get help to small Business Owners and get the help right away. Maria let me ask you about your state and reopening florida. The state easing restrictions slowly opening up as stay at home order is to expire tomorrow. Alex, youre a member of the Florida Governor ron desantis reopen florida executive committee, what are your ideas, what can florida residents expect from the governors plans . Alex you know, maria, Governor Ron Desantis is a great leader and thoughtful and has been meeting with medical professionals, top medical professionals in our state and around, you know, the country. He is seeking advice from business leaders. He is very, very careful in his planning. Obviously the safety of floridans is paramount to him. Maria i understand. Will florida reopen . How will it be . Can you give us a sense of how florida will be when it slowly reopens . Alex my personal belief when he makes announcement today and tomorrow that florida on social distancing, taking certain measures will reopen partially and gradually as people gain more confidence it will open more and more and the governor will take us in steps but weve got my personal opinion, we have to reopen and i commend the governor for his leadership in not rushing into anything but we feed to reopen. Jobs are at stake. Yes. Maria alex, thank you, great, we will be watching. I know a lot of people feel that as well, sentiment is rising across the country that we need to reopen. Alex sanchez, thank you, we have fox business alert, General Electric is reporting earnings just hitting the wire. Cheryl casone with the numbers, cheryl. Cheryl thats right, maria, good morning. As far as earnings per share they did miss by 3 cents, e mates was 8 cents, they came in at 5 cents. Revenue story is interesting, estimate 22. 1 billion but revenue 20. 5 billion, still thats down about 8 year over year as you can see the stock is up half a percent not a big move in the premarket on ge but they are talking about what i think is interesting here the Financial Impact of the coronavirus to their Aviation Business and they did see rapid decline in global commercial aviation demand and in particular for the month of march. Also, the Aviation Business, the commercial Aviation Business, revenues at 6. 9 billion, down about 13 , so aviation orders as well down, revenues from the commercial Aviation Business orders commercial Aviation Business obviously those were negatives and thats certainly, they are also talking about cost cutting, maria, they are targeting more than 2 billion in operational costs, costcutting and 3 billion to preserve some cash and as i send it back, do i want to give you a real quick note from ge chairman and ceo lauren, he did say during the pandemic the team is focused on protecting the safety of employees, communities, serving our customers, ge is delivering infrastructure and services across the globe including our teams at healthcare supporting caregivers who diagnose and treat covid19. As you can see theres ge, maria n premarket up quarter percent. Back to you. Maria all right, off of the highs when the numbers were first released. We will get more on aerospace obviously when boeing reports earnings this morning and thats coming up at 7 30 a. M. , cheryl, i know you will have that as well. We will see you in a few minutes with that. Amc Movie Theaters slamming Universal Studios decision to release movies digitally. So amc is threatening to not screen any universal films in the future. Amc ceo responding in open letter writing this, universal is breaking the Business Model and dealings between our two companies with zero concern on universals part as to how the actions affect us. This coming as the academy of Motion Picture arts and sciences is moving toward allowing films released on streaming platforms to be eligible for oscar consideration because of this pandemic. Dagen, whats your view on this . You look at what universal is doing and they are responding to customers, customers are in a shutdown, they want to watch, they would like to watch digitally, amc saying no, dont release it until its in the movie. Nobody is going to the movies. Dagen right, are people going to be crowded in Movie Theaters until most 100 sure treatment of the virus or even a vaccine. I want to point out that Comcast Universal pictures pulled the trigger on releasing Trolls World Tour digitally rather than pulling the release because the campaign for this movie was already rolling. It came out on april 10th, you can rent on apple tv or other platforms for 19. 99, three weeks later Trolls World Tour racked up 100 million in rentals. Maria exactly. Dagen incredible picture quality, the more likely people particularly particularly families, children, are you going to haul your whole family into a Movie Theater. I think that theyll be piece offering from universal and this is a way forward for these companies. Maria i think that there will be backlash against amc, for amc and say im not going to run any universal films in big screen Movie Theaters they would be backlash because this is where the Customer Base is right now, we are at home and universal is reacting to that so i think amc need to be careful that it doesnt see backlash for this. Dagen absolutely. I think theyll come to some agreement, but i would expect many more movie, movie companies, Movie Production Companies to start doing this. You do a simultaneous release once people are willing to go back to the theater. Maria Hillary Clinton throwing her support behind the Vice President and joe biden even amid mounting Sexual Assault allegations. We will take a look when we come right back. This week on mornings with maria. Thursday as the roller coaster ride in the markets continue follow your money, former san antonio mayor villagosa, dallas fed president kaplin, thats all right here on mornings with maria. Maria welcome back, good wednesday morning, everybody, thank you so much for joining us. Im Maria Bartiromo, it is wednesday april 29th, your top stories 6 31 a. M. On the east coast. Closer look today at the impact of the coronavirus on the u. S. Economy. We will be getting out the First Quarter gdp later this morning as well as a string of Earnings Releases for the First Quarter. Ahead of the numbers futures higher opening, dow futures 120 points and s p up 18 and nasdaq higher by 78 the after the dow, nasdaq and s p 500 reraised early gains to end day negative, the nasdaq was down 122 and s p was lower by 15. Global markets this morning are mostly higher, mixed story in europe, take a look because youve got the ftse 100 up 33 but the cac quarante in paris is down. Maria in ash overnight slight gains. You will see fractional moves across the board with korea index up three quarters and 1 . Japan is closed for a holiday. Oil prices are higher after u. S. Stockpiles rose less than expected. The hope is growing the demand will return as lockdowns ease up across the country. The price of crude oil at 14. 09. Thats up better than 14 . Millions are bracing for more Severe Weather today. Cheryl casone with those details right now, cheryl. Cheryl thats right, maria, powerful storms sweeping through the south and midwest bringing heavy rain and damaging winds. 60 Million People from texas, wisconsin now under Severe Weather threat. The thunderstorm stretch across the region. Hail is size of tennis balls raining down in oklahoma where over 6,000 Power Outages have been reported. Look at the hail. More hail, thunderstorms and damaging winds expected for parts of the south today. Tornadoes also not being ruled out. Well, google has released latest earnings calling it, well, tale of what quarters. Taking a hit from the coronavirus pandemic, theres alphabet, Parent Company of google, stock is up almost 8 in the premarket. But google did say that consumer demand was strong early in the First Quarter. We will get a better look at the decline after secondquarter results are released and barkleys latest net profit tumbling 42 . The british bank taking charge to cover bad loans for covid19 crisis. Barkleys already has ended Dividend Payments and suspended share buybacks and the ceos putting 7,000 people in a building maybe a thing of the past. Theres barkleys in the premarket up and theres starbucks, say coronavirus lockdowns in two biggest markets are taken huge bite out of profit. They reported Second Quarter, fell 10 globally and warning that the Third Quarter could take bigger hit. Starbucks has opened almost all of its stores in china. Right now half of the stores in u. S. Are open and looking at their reopening plan. Foxbusiness. Com, uber, Company Reportedly considering laying off 20 of the workforce. The news as more than 5400 uber employees could lose their jobs. That coronavirus pandemic has really wiped out demand ridehailing services by 80 and uptick in Delivery Service uber eats has failed to make up for the losses. Chipotle as items to fight coronavirus quarantine 15, the company launching 5 new lifestyle bowls to inspire healthy diets while many forced to stay at home during coronavirus pandemic and if youre like me overeating, back to you, maria. [laughter] maria im with you there, thats for sure, cheryl. Cheryl i have to stop cooking, i really do. Maria 2020 race still taking shape this morning but Hillary Clinton is throwing her support to former Vice President joe biden, he did it yesterday during town hall, watch. I want to add my voice to the many who have endorsed you to be our president. Just think of what a difference it would makele right now if we had a president who not only listened to the science, put facts over fiction but brought us together. Maria this coming as former Georgia State representative stacy abrams keeps up her campaign for Vice President when asked about the tara reade allegations against joe biden says she believes him and biden will make women proud. Joining us to navigate the next couple of months Senior Editor for the federalist, chris, good to see you. Thanks for joining us. Good morning. Maria your reaction and what the covid19 disaster . Basically joe biden was chosen by Democratic Party and allies in the media weeks ago and increasing Sexual Assault allegations or increasing corroboration for them, but i dont know exactly how much it adds and i dont think it hurts joe biden at all. Theres a huge amount of crossover between the people who supported Hillary Clinton and the last election and the people who support joe biden. Its not bernie wing or anything. It certainly doesnt hurt joe biden. Coronavirus has impacted the election. Joe biden is not on the campaign trail. Donald trump is stuck in the white house. Hes not holding his massive rallies. The last one was in south carolina. He was able to hold. Its amazing how much has changed since then and something to get biden back in the news because so far podcast and video streams havent been able to impact the news cycle when you have massive pandemic and shutdown in our hands. Maria theres michigan congressman justin asmash to run as libertarian, people on both sides of the aisle concerning that this move could stiffen votes from either candidate. Who does justin asmash help or hurt . Chris im not sure. Theres always the possibility to your point that a libertarian can stiffen votes away but right now Donald Trumps approval as high it is among republican voters, i dont see that being a problem just amash, its not a household name. Hes very much out of step with the republican party. Hes going to portray himself as someone who is uncomfortable with donald trump and didnt like donald trump but he turned on donald trump because he thought he was guilty of colluding with the russians which is really not a serious point to make at all. I dont see how he puts justin amash to be hero of libertarians. Maria speak offing that entire scam, my sources have told me that we will see an exoneration for general Michael Flynn and it will happen this week. We have unearthed new documents that basically indicate it was a setup when the fbi asked general flynn to meet with them at the white house in a casual meeting. I want to run you a sound bite of jim comey when he was on his book tour because the sentiment that he brings us in this interview when he does his book tour is exactly what we are going to see when those documents are unearthed which would lead to exoneration. Watch this, chris, this was a year ago. You look at the white house its hard to imagine 2 fbi agents in the same room, how did that happened . I sent them. [laughter] something that i probably wouldnt have done or maybe gotten away in an organized investigation, more organized administration, in the george w. Bush administration or the obama administration. [laughter] the protocol two men that all of a sudden perhaps increased appreciation for over the last 2 years. [laughter] [applause] and both of those administrations there was process and so if the fbi wanted to send agents into the white house itself to interview a senior official you would work through the white House Counsel and discussions and approval and who would be there and i thought its early enough, lets just send a couple of guys over. Maria and thats what they did, chris, they sent a couple of agents there. According to new documents they all knew that they were hoping to set him up and these are going to be the smoking guns that we are going to see this week. What are you hearing in terms of general Michael Flynn . Chris this has been boiling up for a long time and im the first one to admit when this first came down i leaned to what prosecutors were alleging against general flynn. His defense has massively mismanaged this and general flynn was set up. Now we have right there a year ago jim comeys own words saying they took advantage of disorganized white house which it was we all remember and they set up the general to mess this up. Its really shameful to see somebody who who served in the United States as well as general flynn did and came into the white house in such a distinguished role and to be taken down and dragged through the mood and thrown in prison by u. S. Government that was trying to take advantage of the administration that it didnt like. I think it would be exonerated in the eyes of history. Maria yeah, we are expecting that exoneration announcement soon. We are waiting on the judges decision. Christopher bedford, good to see you, thank you so much, sir. We will see you soon. Chris great to see you. Maria Chris Bedford at the federalist. Facts versus fiction, heartburn drug could treat coronavirus. Businesses arguing that shutdown order is threatening economy, they are taking the case all the way to the Supreme Court, back in a minute. Ight dawn our country has endured. It has seen the break in the clouds before anyone else. For the past 168 years, weve also stood by you, helping you weather storms like this one, to protect your loved ones. And well do it for 168 more. And my side super soft . Helping you weather storms like this one, with the sleep number 360 smart bed, you can both adjust your comfort with your sleep number setting. So can it help us fall asleep faster . Yes, by gently warming your feet. But can it help keep me asleep . Absolutely, it intelligently senses your movements and automatically adjusts to keep you both effortlessly comfortable. And snoring . No problem. And done. So, you can really promise better sleep . Not promise. Prove. Sleep number. This is not a bed. Its proven quality sleep, from 999. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Maria welcome back, questions over the over the counter medicine, pepcid after northwell ceo said theres reasonable confidence that the drug could be used to treat the virus. The Hospital Network is conducting a new trial but some doctors are now warning people should consult a physician before taking this medication. Joining us right now Family Medicine physician dr. Mikhail varshavski, aka dr. Mike, good to see you, dr. Mike, what are your thoughts on pepcid . Good morning, maria, its a heartburn medication and is currently under investigation. They are looking to enroll about a thousand patients into this trial because there were anecdotal reports coming out of china those taking famotidine, pepci dax had better outcomes. This is the same story with hydroxychloroquine, this is anecdotal evidence and until we conduct the study that is we are talking about here at northwell health, we wont know the answers to whether or not the medicine is effective. I urge caution for those running out to take this medicine to know that a, this medicine truly has side evenings just like any other medicine we take and the way that we are studying it in the studies is through an iv dose thats 9 times higher than what we take over the counter, so please do not start taking high doses to have medicine, know that this is still largely unproven and well over a hundred trials going on right now to figure out which of the medications would work and the last thing i want patients is going to take hundreds of these medications to see what works, thats not the safe route. Maria let me ask you about avoiding hospitals and even doctors amid coronavirus. Doctors across the country reporting seeing fewer cardiac patients, fueling fear that is people are avoiding lifesaving procedures due to covid19. Dr. Mike, people dont want to go near a hospital even if you have something elective. Children may be come fears as well, quote, children will die as a result. So what do you think about these scenarios playing out where people dont want to do the things that they need to do because theyre afraid that you go to a hospital and the coronavirus overrun . Yeah, maria, its a doubleedge sword for news the Hospital System and initially when covid19 broke out, we told patients that for a short period of time we have to keep everyone away in order to make hospital a safe way for people to visit in the coming months. Right now we have made our Hospital Systems safe and created plans for bringing patients in who have covid19 and keep them under isolation to make sure if someone comes in with chest pain, with pendicitis if youre having worries and experiencing symptoms, do not hesitate to contact your healthcare professional. Im seeing patients regularly through virtual visits. We can do exactly what you and i are doing, maria and discuss treatment plan with potential that you come in and get evaluated in person. The last thing that we want to have happened is increases in children going without vaccinations, adults going without vaccinations especially with upcoming flu season, we need everyone to get their vaccines. Maria yeah, because thats why i think that this telemedicine is going to going on and stay with us once we get out of this because people will want to continue doing that but also want to do social distancing. How about social distancing for pets . So cdc is issuing guidelines for pets now after a dog in North Carolina contracted the coronavirus. They recommend keeping dogs and cats indoors when you can, keeping 6 feet from other animals and people and avoiding other animals outside. Well, this is not going to be easy, dr. Mike, you have a dog and i have my dog dusty, should we be worried about pets now spreading the virus . Yeah, maria, i dont think we should be word about pets spreading the virus. Theres still no evidence that dogs are spreading this to humans. We have seen humans be able to get cats sick but we havent seen dogs getting sick. This specific pug that we are talking about that caught nationwide attention in the last few days really came as a result of duke study that had patient that is were covid19 positive also test their pets and they found a weak positive result. We dont know if this dog actually was showing any symptoms, we also havent seen dogs have enough in there nasal swabs to have virus to actually get humans sick, just play it safe. When going out, socially distance with your pet as well. Dont allow others to pet your dog no matter how cute it is. Maria any thought on the tongue and how long the viruses last. Dentists were talking that the virus lasting a couple of hours in a persons tongue. Yeah, maria, the responsible way to go on days is virtual and you dont have to worry about how long it lasts in your tongue. Maria dr. Mikhail varshavski, stay with us. We will be right back. 49. 50 daddy, i found you good job. Now im gonna stay here and you go hide. Watch your favorites from anywhere in the house with the Xfinity Stream app. Free with your xfinity service. Now any room can be a tv room. Stream live tv, on demand shows and movies, even your dvr recordings. Download the Xfinity Stream app today to stream the entertainment you love. Maria welcome back, pennsylvania businesses are fighting for a chance to reopen this morning. A group of owners asking the u. S. Supreme court to strike down democratic governor tom wolfs order which closes nonessential businesses, they are quoting its doing unprecedented damage to the economy. Joining us fox news judicial analyst judge andrew napolitano. Interesting to see going all the way to the Supreme Court. Does this case have a chance of being heard . Andrew i dont think they are going to hear it, but youre right, maria, 20 or 30 cases around the country typically filed by a Small Business person or land owner who is suffering because customers cant come onto his property but this is the first one to make it to the Supreme Court. There are many issues here. The pennsylvania law allow the governor to do this, does the constitution allow the governor to do this, theres been no trial in this case. This is really a preliminary request for an immediate restraint on the government which was the governor of pennsylvania which was just denied by the Pennsylvania Supreme Court by a vote of 4 to 3 and the 3 said whats the rush, lets hold the trial, lets see how bad the damages are, lets see the governors office, they were outvoted. So the Supreme Court will probably informally conference on this case tomorrow and tell us monday whether or not theyll hear it if they do hear it. This is the grand daddy of cases, this will decide the constitutionality of all these stay at home orders but i dont think they will, knowing them, i think they want this to play out first because the orders might be gone by the time they actually address the issues. Maria yeah, but this is going to be watched so closely because there are so many businesses that feel the same. Andrew well, there are golf courses, dry cleaners. Danny devito, not the one that we know and love, he cant speak, First Amendment rights are being curtailed. Maria thank you so much, judge andrew napolitano. We will see you soon. Have a good day. We will be right back. Stay with us. Maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us. Im Maria Bartiromo. It is wednesday, april 29th. Your top stories, 7 00 a. M. On the east coast. The u. S. Cases of the coronavirus have now surpassed the 1 million mark. As more states ease lockdowns restrictions and try to get back to work. President trump signing an executive order to keep Meat Processing plants open as concerns about Food Supplies now grow. Today, a look at the impact the pandemic is having on the u. S. Economy when the gdp is reported for the First Quarter, that will be out in about an hour andahalf, economists are expecting a contraction of 4 for the quarter, some are looking for an even steeper decline. We will be hearing from Federal Reserve chairman jay powell later today. We will have all of that live later on fox business. Another big earnings day this morning, boeing is due out in half an hour many the wall street journal is reporting the aircraft maker is facing a criminal probe into Quality Control issues on its still grounded 737 max fleet. The company also reportedly looking to raise capital through a major bond sale. Well bring you the boeing numbers when they hit. The stock is up one and a quarter percent. General electric reported earnings in the last hour, reporting trouble in the Aviation Business. Orders were down 14 due to the rapid decline in commercial aviation demand. The Company Targeting over 2 billion in cost cutting at ge. The stock is down 2 andahalf percent. Attention turns to microsoft, facebook and tesla, all reporting quarterly numbers. Futures pointing to a gain at the start of trading this morning. We have a firmer tone for futures, the dow industrials up 159 points, twothirds of 1 , the s p is up 23, nasdaq higher by 90 points. This after the dow, nasdaq and s p 500 erased early gains yesterday, actually ended negative. Dow was down 32 points, nasdaq was down 122, and the s p down 15 at 4 00 on wall street yesterday. Google parent alphabet reporting a rise in revenue, also reporting ad sales took a downturn in the month of march as the coronavirus pandemic worsened. Mornings with maria is live right now. Global markets this morning are mostly mixed. Alphabet this morning is up better than 8 on the heels of the earnings last night. France announced it will tighten restrictions on Foreign Investments in French Companies from outside of europe, to limit outside control of key sectors, follows the u. S. Commerce Department Adding more restrictions on exports to china to prevent them from getting military technology. The european indices moving fractionally today. In asia overnight, slight gains there and it was fractional moves. Japan is closed overnight for a holiday as you can see there. And lets check oil prices. This morning theyre bouncing after u. S. Stockpiles rose less than expected. Hope is growing that demand will return as lockdowns ease up across the country. The price of oil is up 13 this morning. Joining the conversation, Dagen Mcdowell, steve forbes and jackie deangeles. Great to see everybody today. Good to be with you. Thank you. Maria some of the top stories that we are watching this morning include covid19 cases in the United States now topping 1 million. As more states roll back restrictions this week. Today, tennessee will allow Retail Stores to reopen at 50 capacity. Wisconsin is allowing nonessential businesses to do curbside dropoff of goods. Car washes will reopen and rentals for outdoor Recreational Equipment also ready to open. In california, Governor Newsom outlined the states four phases to reopen. He says the state is weeks away from reopening lower risk workplaces like nonessential manufacturing, Curbside Pickup and schools reopening in california. The reopening of classrooms has been met with criticism after newsom suggested they may restart as early as july. Simon Property Group planning to reopen nearly 50 shopping malls and outlet as soon as this friday, this comes as more states ease the stay at home restrictions. Shopping centers in texas, georgia, oklahoma, south carolina, all among those opening on may 1st or may 2nd. This weekend. There will be strict measures to control covid19 including reduced hours and free masks for shoppers. Simon Property Group shares up better than 7 . A massive joint worker strike set to hit some of the countrys Largest Companies on friday, employees at amazon, target, whole foods and instacart are planning to walk off the job, they are demanding better pay and safety protections during the pandemic. Friday is International Workers day. Thats also called mayday, you know, which is marked with protests across the world. So that will likely be the headline on friday. Joe biden hoping a key endorsement from Hillary Clinton will help him win the female vote in november. She made the announcement during a virtual town hall yesterday. She is the latest high profile democrat to throw her support behind joe biden. Major League Baseball allowing teams to offer refunds to fans for games not being played because of coronavirus. This pandemic, the mlb exploring several different options for a possible return this summer meanwhile including splitting the league in three regional divisions, having teams play against rivals near them. They are hoping to start the season in july, possibly in florida, texas or arizona, before letting teams return to their home parks. North carolinas governor said nascars cocacola 600 will likely run as scheduled at the end of may. Nascar wants to run the race memorial day weekend with teams social distancing and without fans in the stands. Reopening the economy topic a, Texas Governor greg abbott announcing plans for texas to begin partially reopening by this friday. The state easing restrictions on some businesses like restaurants, Movie Theaters, retailers. The governor says the second wave of openings could happen as early as mismay if the state sees further declines in the number of cases of coronavirus. Joining us right right now is ts congressman, henry quar. Good to see you this morning. Thanks for being here. Thank you so much and good morning to you. Maria so what should we expect from texas . How do you see this rolling reopen happening . You know, the governors taking a measured step by taking trying to open up the economy in a very careful way and i understand what hes trying to do because we do have to open up our economy. But we still have to answer four questions. Do we have enough testing . Do we have a system to monitor and track cases . Are hospitals not working in a crisis mode . And are we seeing 14 days of cases going down . We have to answer those questions and as we open up the economy in texas, we have to just be flexible to make sure that we meet those conditions. Maria so what about testing . Because i know that thats going to be key to getting back to work. And how is this how do you envision this . Do you think people wit are goio have to be tested every day, every couple days . You can get a test on monday and contract it on a wednesday, right . Yeah, of course. You know, you could be okay one day and then contract it another time. Youre absolutely right. But we still have got to have tests or do one test of an individual at that time and i mean, look, moneys not an issue. Congress has put in billions of dollars. In fact, the bill we voted on last week added 25 billion for testing. So its just making sure we have the capacity to do the testing better than what we are doing now. The health of the individual, maria, is very important. And i understand the health of the economy is important also. Maria of course. Lives and livelihoods. Heres Dagen Mcdowell. Dagen congressman, critical to making sure the economy stays open and people in the state stay healthy will be the Contact Tracing that gets done. When someone does test positive, you need to have people in the Healthcare System in texas tracking down who has come in contact with that infected that positive individual. Give us an update on the hiring. Because i think that texas needs to hire at least 1,000 new people to do Contact Tracing and do you think the people of texas who dont like government getting in their business will get on board with basically getting questioned about their contact with individuals . Well, you know, certainly thats one of the four factors that i mentioned that weve got to meet and tracking and tracing is going to be important. I think a lot of people depend and trust their local Health Department or the local providers and but we do need to have some assistance in making sure we have a system to monitor. Every part of the state of texas, texas is so large, i mean, certain cities like my hometown lore ra almost loredo o their best. Were seeing Different Things getting there. But if we dont meet the four conditions or try to get to them as soon as possible, testing, monitoring and tracking as you said, hospitals not working in a crisis, seeing a couple weeks of cases going down, you know, we we still have to open up the economy in phases and i want to do that. Impart of the white house Bipartisan Group to look at this and i made some on monday, i turned in my suggestions to the white house as to what we need to do and those four conditions are certainly part of it. Maria what were your suggestions . Well, you know, Different Things. The four things i mentioned, but i also im a big believer in international trade. In fact, just right before this i was communicating with my friend, commissioner mark morgan from cvp. I think we need to do some testing, at least a temperature check, people coming into the United States. We dont want to stop trade but, for example, loredo is handling 6,500 truck rers that truckers that are coming from mexico every day. Theres still people coming in on a limited basis. We need to at least take the temperature of those individuals. In fact, the president yesterday, that was one of the suggestions i sent in and one of the suggestions that i mean, one of the things the president said yesterday, that we need to start looking at possibly Testing International travelers and i agree with that. Weve got to have a movement of trade but weve still got to take some precautions. Finally, the other thing that i suggested, one of the other things was we depend a lot on mexico and canada and weve got to make sure that essential businesses in the u. S. Are the same over there, because you cant have mexico close some of the businesses that affect the chain supply in the United States. So weve got to have better coordination with our mexican and canadian friends when it comes to trade. Maria let me ask you, congressman, before you go, real quick, when would you expect international travel, for example, from italy, to resume . That i dont know. I mean, i dont know if anybody knows that. I still feel that maria sounds like its a 2021 affair. Thats what im saying. I mean, i dont thats probably going to be the last thing they allow to happen again, international travel, where we know that the covid19 cases were pretty severe. But well be watching that. Its an important piece of this. That is one of the things that youre right. I mean, that wont be one of the priorities. But i still say that if people are coming in, let me just talk about trade. Every day in texas we have thousands of trucks that come in from mexico. Mexicos doing things a little different from the u. S. And im saying that because of the essential trade and those things are not restricted, we ought to at least test some of the people that are handling the trade that are still having to pass every day, thousands of them, a and at least test those individuals. Maria its got be coordinated. Thanks you for join us. When we come back, weve got a big hour. The ceo and president of the Cleveland Clinic is here, dr. Tom mahaljavec. Ubs americas president , tom naratel joining me with his insight for investing over the long term. The ceo of Subway Restaurants, john chinsi joins us. At 8 00 a. M. This morning, louisiana congressman, Steve Scalise weighing in on the next round of funding for Small Business loans and i will speak with former connecticut senator Joe Lieberman on Hillary Clintons endorsement of joe biden. Dont miss a moment of it. Weve got a big two hours coming up, right here. music hopefully, by the time we get to this coming winter, then we will know whether or not we have a safe and effective vaccine and then the challenge will be to scale it up enough to be able to distribute it meaningfully, both in this country and throughout the world. Maria that was dr. Anthony fauci, predicting a covid19 vac teen could ari arrive sooner thn first expected. Pfizer says a new Coronavirus Vaccine could be tested as early as next week with the potential for emergency use by the fall. This as the number of virus cases in the United States is topping 1 million. Joining us right now is the Cleveland Clinic ceo and president dr. Tom mihaljevic and dr. Tom its good to see you this morning. Thank you for being here. Thank you very much for having me. Good morning. Maria look, we love the Cleveland Clinic and youve joined us before as has your predecessor. Tell us what your takeaway is in all of this . We have cases topping 1 million. We seem to have seen a bit of a flattening of the curve, certainly in ohio. Whats your takeaway so far of where we are with this . At this point, here in ohio, we are certainly seeing the flattening of the curve. The number of newly infected patients has been stable over the last two andahalf to three weeks. So what i would like to say is that we have gotten in control of the pandemic, using social distancing and other measures that were implemented early. Certainly now the next step ahead of us is to stop to open first and foremost our hospitals to all patients who need medical care, not just those who are infected with covid, because the number of the patients who are infected and hospitalized is low. They consume only 2 of our Hospital Capacity and for netly the numbers fortunately the numbers continue to decline. Maria i know that the hospital industry was not in great financial shape going into this. Thats why we saw so much consolidation. You had elective surgical procedures shut down. They are expected to resume next week in ohio. What are the doctors and nurses seeing inside the Cleveland Clinic in terms of the financial part of this . Well, first and foremost, the deferment of care and initial measures were absolutely appropriate to get a control of the infection and to free up capacity we thought we will need to combat the pandemic. The unintended consequences that we have deferred the care for so many. Obviously, with the deferment of care, we have seen a decline in the Financial Performance across the healthcare industry, so the paradox is that very many hospitals are in bad financial shape, very many healthcare workers are being either laid off or furloughed and we are certainly welcoming the opportunity to take care of all of our patients in coming weeks. The really important thing here to emphasize is that hospitals are safe environment to provide care. Maria hospitals are a safe environment and they have been in some corners of the country overrun by coronavirus. People were worried that if you were a heart attack patient or a stroke victim you will not be able to get the proper care because hospitals are overwith n with coronavirus. Is that still the case . Was that ever the case . That is still the case. People are afraid and i think we have to recognize it and theyre concerned about going to the hospitals because theyre concerned that they may contract the virus while being in a hospital. I would like to use this opportunity to emphasize once again, hospitals are safe environments. The entire Cleveland Clinic system for example with over 60,000 employees, we have only one of our employees who is hospitalized with coronavirus infection. And it is absolutely safe to seek care and it is really important to seek care when the care is needed. Maria and how is the care handled . What are you caring with . Are you looking at some of these trial drugs that weve been talking about, Gilead Sciences remdesivir, how are you treating this, dr. Tom . When it comes to covid patients, we are involved in a number of different trials that span from new antiviral drugs that are under investigation to the pneumoat tha new modalitig patients on ventilators and working with many Healthcare Organizations on the development of a vaccine. Maria we will leave it there. I know you sent 15 nurses, 10 doctors to help new york press presbyterian, sent 13 nurses to help henry ford. Thank you for all youre doing. Tom mihaljevic, thank you, sir. Thank you very much for having me. Maria well be right back. This is an athlete, twenty reps deep, sprinting past every leak in our softest, smoothest fabric. Shes confident, protected, her strength respected. Depend. The only thing stronger than us, is you. Maria welcome back. Power from the top down, Facebook Ceo Mark Zuckerberg has recast his board of directors at facebook to push aside discenters and consolidate Decision Making power. Only four of the nine directors who began in 2019 on that board remain on that board. The journal writes it is far from certain that mr. Zuckerbergs repositioning of facebook and his role at the top will lead to a lasting turnaround in its reputation following more than three years of controversy over the spread of misinformation. Loose oversight of user data and the companys competitive practicing. Big story in the journal this morning about this. Dagen mcdowell . Dagen Mark Zuckerberg founding the company was tired of playing defense. The company was back on its heels. It didnt have a message to fight back against the Cambridge Analytica scandal, its sharing information about its users with advertisers and other like commercial companies galore. He was just sick of it. And so he has taken the lead. It was in december, he had the top executives come to hawaii to meet with him and youve seen this really play out during the coronavirus pandemic, where facebook has stepped up trying to be a hub of information, trying to deliver on his manifesto, zuckerbergs manifesto from a few years ago of being this Inclusive Community and hes also made just in recent weeks some business deals. Just last week, facebook bought a 6 billion state in a Telecom Operator in india and theres a video chat service that would rival zoom called facebook rooms. He is at the forefront. He is the face of this company, not cheryl sanberg and he stepped into the fray and is leading. Maria yeah. I think you make a good point. But it is good to have people who push back on the board, just for fairness for yourself, just to get people to question. So well be watching that. We are waiting on boeing earnings, reporting First Quarter earnings right after this break. Well take a break, come right back with those numbers. Stay with us. Americas oldest lighthouse has weathered many storms. Seeing the break in the clouds before anyone else. Together, well weather this storm. Music maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us. Im Maria Bartiromo. It is wednesday, april 29th. Your top stories right now, we get a closer look at the impact of the coronavirus on the u. S. Economy. We will get the First Quarter gdp out later this morning as well as a string of earnings including boeing which will be out any minute, ahead of the numbers futures are higher, futures up 112 points, nasdaq is up 65, s p is up 17 after the markets erase early gains yesterday to end the day in the red. We got the boeing numbers hitting the tape right now. Markets were lower yesterday. Global markets this morning are mixed. European indices are fixed with the fq100 higher, the cac in france lower. France announced it will tighten restrictions on Foreign Investments in French Companies from outside of europe to limit foreign control over key sectors including technology, this follows the u. S. Commerce Department Adding more restrictions on exports to china to prevent china from getting the u. S. s military technology. Asian markets were slightly higher overnight. Japan was closed for a holiday. Lets get to Cheryl Casone and check on boeing earnings. They just came out. We were expecting a loss, thats what we got. Cheryl we were expecting a loss of a buck 61, we got a loss of 1. 71, so a little more than expected. The revenue a miss. The expectation on revenue, 17. 31 billion. They came in at 16. 91 billion. Also, theyre talking about the 787, the production rate is going to be reduced from 14 per month down to 10 per month. Also, staffing cuts, folks. Theyre talking about taking several actions to lower production for commercial aircraft and that does mean either voluntary basically asking folks to retire or the company will have to take some kind of action as far as cuts. Im not getting a percent on those yet. Also, the ceo is just now saying, david calhoon, that the pandemic is affecting every aspect of our business including Airline Customer demand, production continuity and supply chain stability, really not a big surprise. Also, theyve got a huge backlog, a total backlog. Thats of course the aircraft production story. The max production going to be resuming at low rates, all theyre saying is 2020, maria. Theyre not giving a date for 737 max production, that is one of the thing that analysts were looking for. Theyre saying at this point heres a new one. They might gradually increase max production, the troubled 737 max to 31 per month next year. So that would be 2021. Stock is up 2 and a quarter percent. Looking for headlines, are they going to be working with banks, is there going to be a bond offering. Not saying anything yet. I will say the stock is jumping on the news, a little more than 1 andahalf percent. It was up about 1 andahalf percent just going into this, though, so actually not the reaction maria that i thought we would see. Cash flow, primarily because of the max grounding is still an issue for the company and also theyre going back to the production cuts because of the max, a lot of max headlines are crossing here and not really in a good way. The company definitely taking a hit from that aircraft. Maria and the company was taking a hit going into these earnings, Dagen Mcdowell, with the shutdown of the max jet. We still might see some kind of investment from government in boeing. You know, you heard what steven mnuchin, treasury secretary said on this show a couple weeks ago. Look, we would like to do something with boeing but were waiting to hear become. Boeing was pushing back, saying we dont want equity stakes from government. Dagen boeing doesnt want the government being involved in its business and is trying its level best to shore up its finances here. One headline in the earnings report, cash and investments in marketable securities increased to 15. 5 billion compared to 1 10 billion at the beginning of the quarter. Thats whats at play with boeing. Boeing has been working with investment banks on a multibillion dollar bond fueled financing package, trying to right its Balance Sheet as it weathers what is a historic downturn in this business because of the pandemic. One thing to note, because it had considered applying for the treasury assistance, it doesnt want the government involved via an equity stake. If they can get this bond program in place, the fed, because of one of the primary market Corporate Credit facility, would essentially be there to backstop that Credit Facility and would be there to provide some support for those banks or people lending boeing money. So thats incredibly important to watch. Remember, boeing is under both criminal and civil scrutiny into Quality Control problems related to the 737 max assembly line. Maria yes, thats and in the journal this morning as well. The company is also saying it is exploring all options in terms of liquidity. So theres the comment regarding liquidity and whether or not we will see any government help. But the company says it is sure and comfortable that it will find the necessary liquidity that it needs to run operations. So boeing shares this morning are up even though weve got a miss on the bottom and top line. We expected things would be down. We are also waiting on the official announcement that they will cut head count, that is also swirling around trading desks this morning. The stock right now up 2 andahalf percent. Meanwhile, wealthy investors apparently sticking by their stocks despite all of this market volatility around coronavirus. This according to a new survey by ubs, finding almost half of wealthy investors globally expect to keep the portfolio intact at the same level in the next six months, 37 plan to invest more. Joining us right now to break this down, ubs americas president and head of Global Wealth management. Tom naratel. Interesting to see high end investors appearing confident over the long term. Theyre not allowing the shortterm upsets to change their positioning. Is that right . Thats absolutely right. Theyre very realistic about the shortterm. We see this in the u. S. And globally. Certainly theyre aware of the impact on the economy in the short run. But theyre looking forward. Theyre looking forward to what will happen going out six months into the future. They do have a lot of cash on the sidelines and theyre looking for places to put that to work in risk assets. Maria well, we had mike milken on yesterday. He said, look, Financial Markets are doing exactly what Financial Markets should do, provide liquidity and lets not for get there are a lot of areas of the market that are doing very well. Look at big tech, look at biotech, look at a handful of retailers, walmart sitting at alltime high as well. What are your investors youve spoken with saying about buying opportunities right now . Are these areas you want to tap into or are the valuations now problematic . No, we actually break it down, maria, into thinking about maybe two waves. One is, where do you still have assets that are mispriced in the current environment . And what should we be thinking about in the future . If you think about the mispriced assets, we think the credit markets are discounting the potential for recovery where the equity markets are anticipating it. So we would say that the high yield markets, Investment Grade markets, emerging market dollar denominated debt are all very attractive opportunities currently because theyre mispriced relative to equities. Maria yeah. Weve got steve forbes on the panel today and of course steve, you are a member of the president s task force in terms of reopening the economy o. I want to get toms take on reopening the economy. First, give us your take in terms of what needs to be done to see these rolling openings go well. Well, the key is not to back off. Youre going to see some cases rise, but we knew that the virus is still out there. So the key is to keep that thing rolling open. And the real debate inside the white house is whether they should push for a payroll tax moratorium which would help businesses, lower labor costs, help people keep more of what they earn. Im wondering with tom in terms of the optimistic outlook for the future, is the politics. If you get election result in this country thats going to mean rising taxes and more regulation, thats a very different environment, economic environment than the opposite. Are investors looking at the political situation here, not to mention europe and the rest of the world, in creating an environment where people can feel confident that the economy really will grow again or were going to have the kind of stagnation we had after 2009. Steve, those are really good points. Even though the way that were looking at that is a bit the way the u. S. Came out of world war ii. Debt levels will rise to similar levels as a percentage of gdp that we saw during the Second World War and yet there was an opportunity for strong Economic Growth following that. Whats really going to be key here is thinking about proper Financial Planning for the possibility that taxes may rise. Second will be looking at industries that we think will do better in the future. Things like health tech, things like genetic therapy, industries that focus on providing faster broadband, if telemedicine is going to be successful, then having lack of access to high Speed Broadband will be a question between life and death for some people. Maria well, thats a good point. Were waiting to hear from jay powell later, tom and Cornerstone Macro is out with a report this morning. They say we are expecting the fed to signal the rates will stay at zero until 2023, tom. That implies persistent downward pressure on nearer dated yields. What are you seeing for the rock bolt tom rates . Has that been helpful getting deals done, any refinancing boom perhaps helping the economy, what has been the impact there and what are the customers youre talking with doing with rates this low . Well, it will certainly help growth and investment in the future and were getting back to the tina moments. There is no other alternative. And thats why the equity market is going to be attracting cash. With rates this low, other than that mispricing that we currently see in the Investment Grade market which is largely due to one of the factors that you mentioned, there is a need attorneto issue debt. It will be a good time tore investors to commit to the industries that will succeed in the future. However, cash will be something that will sit in an investors liquidity portfolio for safety factors, not for return factors in the future. Maria all right. We will leave it there and tom, thank you for the firm committing all those millions to the covid19 relief efforts in the u. S. And puerto rico, 500,000 going toward relief efforts in canada, mexico, brazil as well. Were all feeling it and giving back. Tom, its great to see you this morning. Thank you, sir. Thank you, maria. Great to be here. Maria tom naratell is the president of ubs. Coming up ill speak with the ceo of Subway Restaurants, john chidsey is here, right after the break, his take on the latest round of ppe funding as Small Businesses fight for survival. A graduation gift from oprah, how she is teaming up with facebook to give graduates across the country an unprecedented commencement speech. Stay with us. Principal is by your side. Were working hard to answer your questions. Like helping you understand what the recently passed economic package can mean for you. Were more than a financial company. Were a together we can get through anything company. Now, more than ever. Maria welcome back. The latest round of paycheck Protection Program funding is underway this morning, complete with a new set of rules in place for Small Businesses navigating the system. Joining us right now is the ceo of Subway Restaurants, john chidsey. John, good to see you this morning. Thanks so much for joining us. Are you seeing a lot of subway franchisees applying for these ppp loans . Yes, we are, maria. Id say about 92 to 95 of our franchisees have applied for either ppp or eidl, i think as you know subway unlike a lot of other qsr systems, while its the largest in the u. S. And globally, were made up of franchisees that are two to three restaurants. We are the ultimate Small Business owner, 100 franchise and the loan programs are so important to make sure franchisees can survive the crisis. Maria are you comfortable with the structure of this. 75 of the money has to go to employees so they get compensated while theyre not working. Youve got only 25 to pay rent and other businesses. Are you comfortable with that structure . Are you comfortable with the structure of the clock starts ticking as soon as you get the loan, have you eight weeks to pay it back, regardless of if youre open or not. I mean, obviously we would prefer to have had maria i mean eight weeks to have it forgiven. If you pay the money to employees within eight weeks the loan is forgiven. Correct, correct. Yes. I mean, as an industry, we lobbied for some tweaks in the program. We would have preferred not to have seen the 75 , we would have preferred to have seen a lesser amount because i think as you know and your viewers know, things like rent and other payments in the Restaurant Industry can often be as big or bigger than payroll and thats as important as payroll. So yes, we would have preferred to see that loosen. But well take whatever help we can get at this point. Maria so do you think that most of the subway franchisees will survive . Whats your take on the state of subway and the fast Food Industry overall . Yes, actually i do. I have a lot of confidence in subway in the sense of, again, most of our franchisees are small operators. The cost to operate a subway is substantially less than a lot of other brands given the smaller footprints, given the foods that we serve and so labor is not quite as much of an issue, footprints are smaller so therefore rents are somewhat smaller. I think our economic model i insulates us better than a lot of other chains out there. Secondly, takeout, delivery, where the industrys gone over the past few clears is going to play very nicely in the way the economy unfolds over the coming months. Maria yeah. This is a really important question. So how do you think things will change once we get out of this . I mean, thats one of the issues that weve been zeroing in on in terms of how things look different. Are you making changes to the Subway Restaurants . Sure. I mean, i dont think anybody has a crystal ball and understands exactly how its going to unfold over the coming months. Or quarters even. But yes, i mean, were obviously doubling down on all employees are going to have wellness checks before they come in, temperature checks, everybody will be wearing gloves, everybody will be wearing masks, well keep all the ingredients covered at all times. Weve really got a big push on in terms of contactless takeout, third party delivery, and so nobody really knows how long it will take for people to become comfortable with inrestaurant dining again. I think we all have to really be prepared for the fact that that could take quarters before people begin to feel comfortable coming back and eating inside restaurants which is why i think subway and other qsr chains are ideally positioned for how i think things are going to unroll in the future here. Maria were the restaurants opened these last few weeks, obviously the Food Companies are essential, were you guys open or was this a significant hit . How big a hit was it in terms of the covid impact . Actually, about 85 of our restaurants actually did stay open. So you can imagine the ones that are on College Campuses and things like that that shut down or in malls, theres nothing you can do about those. The one thats are freestanding, drivethroughs, the vast image orde majority ofe stayed open. Having a lower breakeven point allowed us to stay open and to do reasonably well. Not great by any stretch but from a unit staying open stand point i think we fared pretty well. Maria well leave it there. Thank you, sir. John chidsey, ceo at Subway Restaurants. Still ahead, an unprecedented ceremony for the class of 2020, oprah joins forces with facebook to bring graduates the gift of a lifetime. Back in a moment. Star light, star bright. First star i see tonight. Star light, star bright. Make everything all right. Star light, star bright. First star i see tonight. Star light, star bright. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Maria welcome back. Time for the morning buzz. First up, oprah spreading some cheer to 2020 graduates. Shes delivering an online commencement address hosted by facebook and instagram next month. Miley cyrus joining in with a special performance of her hit song, the climb. Dagen, your thoughts . Dagen i think this is awesome. This is all going to happen on may 15th and a shoutout to one of my nieces, phoebe who is graduating from high school in the coming weeks. This is a huge letdown for so many people graduating from high school and college. Also providing words of wisdom, Jennifer Garner and aquafina. This is what we were talking about with Mark Zuckerberg trying to shine up the company, facebook and instagrams image during the coronavirus pandemic. To the angry person who was tweeting at me, calling me Mark Zuckerbergs mouth piece, i just say this, kiss my grits. Maria i love graduation season. I will also give an astress for iona college and it will be virtual. Im looking forward to that. Its a different year for the 2020 graduates, something none of us have ever experienced. Well see what happens in the coming years in terms of these graduation ceremonies. Great for oprah and i dont know what theyre saying out there in terms of mouth piece, dagen, but youve got him with that comment, i guess. I dont know what to say. Dagen why are people angry . Facebook is trying to do something good. Its trying to improve its image which was awful. Anyway, i digress. You continue. Maria how about this, more americans are refusing to pop the question. U. S. Marriage rates falling to their lowest level on record, down 6 in 2018, according to the National Center for health statistics. Financial strain and changing relationship norms contributing to this dive and this doesnt have anything to do with coronavirus, jackie. No, actually, it doesnt. I was surprised to read that. So this was happening, this decline starting 2018. You mentioned financial strains on people, thats one reason theyre not getting married. Also its the new trend of being able to live together or being in a committed relationship without necessarily having to tie the knot. Whats interesting too, to bring it back to this pandemic, i mean, i have surveyed and talked to a ton of people who are under quarantine and staying at home with their significant other or their spouse. I myself am engaged and ive learned a lot during the quarantine period, lets just say, things that we havent necessarily seen before. And its been interesting because you learn about your spouse and your partner and youre not used to spending so much time together but on average couples are spending 20 extra hours together, maria. Thats a lot. Maria i dont want to put water on the whole thing but divorce rates are also up actually by the way. Im just saying. Quick break and then more mornings with maria right after this. Stay with us. This is an athlete, twenty reps deep, sprinting past every leak in our softest, smoothest fabric. Shes confident, protected, her strength respected. Depend. The only thing stronger than us, is you. 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. Maria welcome back. Good wednesday morning, everybody. Thanks so much for joining us Beautiful Day im Maria Bartiromo wednesday, april 29 your top stories right now 8 00 a. M. On the button on the east coast, today we are taking a look at impact this pandemic is having on u. S. Economy when we get gdp release for the First Quarter out in about a half hour economists are expecting a contraction in the First Quarter 4 steeper decline we will hear from jay powell today one report saying that we will likely hear him say rates at zero until 2023. That is from Cornerstone Macro, another big day for earnings boeing out last hour they doubled miss on earnings and revenue ceo saying pandemic is affecting every aspect of his business, Company Plans to reduce overall Staffing Levels with voluntary Layoff Program additional workforce action as necessary exploring Government Fund options posingly up better than 4 boeing the wall street journal reporting aircraft maker facing criminal probe into Quality Control issues on still grounded 737 max fleet General Electric also, discussing trouble in Aviation Business this morning, reporting orders down 14 , due to the rapid decline in commemoratively aviation demand targeting over two billion dollars costcutting ge down almost 6 right now after the bell investors turned to microsoft, facebook tesla, all out with quarterly, tonight, market pointing to gain start of trading this morning futures indicating a tripledigit move upside dow futures up 137 that is twothirds of 1 s p up 15, nasdaq higher by 61 that is threequarters of 1 after dow, nasdaq s p 500 erased early gains to end in the red all major indices lower as you see. Number of cases of coronavirus in United States, have now passed one million. As more states ease lockdown restrictions to try to get work. Getting done back to work. President trump signing executive order to keep Meat Processing plants open meanwhile, as concerns about Food Supplies are growing. Mornings with maria is live right now. Maria Global Markets this morning mixed european indices as you can see mixed ft 100 up 51 cac quarante down 7 and twothirds points france announcing will tighten restrictions on Foreign Investments into French Companies from outside europe to limit for everyone control over key sectors including technology follows u. S. Commerce Department Adding more restrictions on exports to china, to prevent china from getting our military technology. In asia overnight there were slight begins a japan was closed overnight for a holiday others moving fractionally overnight, oil big story again on the rise this morning, after u. S. Stockpiles rose less than expected, may be a sign capacity may not run out price of oil 14. 30 a barrel up 16 joining the conversation daving dag, steve forbes jacqui deangelis great to see everybody this morning. Great to see you. Good morning. Maria some is to be toirz stories covid19 cases in United States topping one million more begin to roll back restrictions this week and next today tennessee will allow Retail Stores to reopen at 50 capacity. Wisconsin allowing nonessential businesses to do curb side drop off of goods car washes reopen, rentals for outdoor Recreational Equipment to open. In california governor knew shoem outlining four phases to reopen weeks away from reopening nonessential manufacturing contributory side pickup for Retail Businesses as well as schools, reopening of classrooms met with criticism after newsom suggested they may restart School Openings as soon as july. A new scanner similar to Airport Security can debbing if one is sick symptoms can scan up to 1,000 people an hour catch less than 10 seconds symptoms. The scanner can get heart respiratory rates blood oxygen levels take temperature turz thousands of businesses are interested in the scanner it expects to deliver first batch in june. Joe biden hoping a key endorsement from Hillary Clinton will help notch the feel vote in o november made the announcement yesterday daush virtual down haul mrs. Clinton latest high patrol democratic to show support behind biden. And man in colorado hitting jackpot twice same day this man identified as joe b. Won two onemilliondollar power balls march 25 playing same numbers 30 years according to lottery officials he bought win ticket Different Stores a mile apart. Playing same numbers won both times helping backbone of americas economy, President Trump speaking yesterday on work the Small Business administration is doing, distributing muchneeded money amid covid19 pandemic. In 14 days did more work more both in materiels of application dollar amount than 14 years our swift action supported or saved 3 million american jobs at least. Maria sba began a second round of paycheck Protection Program, early this week, still unclear, if another package will be necessary. Joining us right now House Minority whip louisiana congressman Steve Scalise always a pleasure to see you thank you very much for being here this morning. Maria great to be with you good morning to you and the panel. Maria so i want to ask you about the reopening, and certainly about the state of the covid19 situation, louisiana Governor John Bel Edwards slated to meet with President Trump with a can you tell us about state of louisiana what do you want to governor to get out of this meeting. I think the president , and the governor edwards have been on same page on a lot of fronts over these last few months but the governor, is announcing, that we are going to have a midmay opening, so that businesses in phase one would be able to start opening he did just allow elective surgeries to start frankly i think you are going to see a lot of governors around the one move to open elective surgeries i am hearing so many stories of people missing those mammograms, colonoscopies lifesaving procedures you dont want to see those pushing off they have been pushed off for weeks hopefully that starts again segments opening savings and loan i hope to see more. Hardhit by covid19 youve got lifesaving situation to look at first there are some states, that have actually been harder hit by shutdown the loss to the economy, than actually hit by number of cases of coronavirus like senator barrasso from what iming talking about fact hit hard oil collapse as well as businesses collapsing tourism agriculture, and so many other areas, so your take on how significant this shutdown was, and is to the u. S. Economy in growth process. Well weve seen the devastation so many different areas that, of course, the biggest number is the 30 plus Million People who on unemployment rolls maria we have seen paycheck Protection Program working incredibly well Holding Businesses together a lifeline but not going to last forever, even if businesses get that still means other problems because no cash flow, it saved over 30 million jobs as President Trump pointed out earlier in that segment but also only doing so much, businesses need to get open again people wanting to back to work again, in a safer Way Technology is catching up with this disease medicine catching up with this disease we dont have a cure yet every day we hear about more breakthroughs things we can do more in testing also treating this disease ultimately finding a cure, and a vaccine, but, meantime, you are seeing more and more people that recognize, even when it is amongst us disease is out there, they want to start getting out doing more things than just on Grocery Store weve proven how you can safely why dont we look at that more areas of the economy battling the disease at the same time. Maria as successful as the stimulus programs have been, more than seven trillion dollars being thrown at the economy there are still some businesses who will not make it out. They will go bankrupt, what do you want to see in terms of another round of stimulus including different incentives for companies to bring back manufacturing, from overseas, should that be in any next stimulus . What about the stateside mayor of new york city on sunday mayor de blasio wants 7 1 2 billion dollars to make new york city hole. That is interesting because the state of new york just g 7 1 2 bonds last week in cares act just went out the door mayor de blasio getting a large personal that have keep in mined new york had financial problems before covid19, it was because of things doing run businesses people, out of cities and states, they really need to look in the mirror right now reimagining thousand they are going to reopen city and state address problems they had before covid19 before they look to federal government think there is endless pot of money there is not to bail them out for previous problems they really need to be confronting the challenges that they had going into this. And everybody is trying to figure out best way to reopen. Their communities, whether it is governors about, of course, lead that charge in each state but each community is going to have to figure it out too to think you can just look to washington, that is a bailout every problem out there, look we are trying to hold on to communities, we are trying to hold on to hospitals, and businesses, and make sure family can get through this, but you cant just keep printing money, and expect that to solve all the problems. It is not. People know weve got to learn how to come back out of this smarter safer reopen our economy as soon as we can. Should those governors or mayors be looking to change sanctuary rules norred to be poised to get more money because i know the president mentioning the sanctuary cities i know those policies, have not done any favors for those cities look at place san francisco, the homelessness, the issues there. Is that one thing would you like to see a change in sanctuary policies . Sure i have never been a supporter of sanctuary city policy i mean we are one nation under god we all live by same sets of rules to that i state or as he can just say we are going to pick and choose when federal laws we apply when ones to ignore doesnt fit with the way our country works that should have been addressed before anyway. But, you know, you did touch on something important earlier that is a supply chain what they really ought to be doing figuring out how to get jobs in america including cities that are having problems a great opportunity, to bring back the manufacturing of ppe, for example, we should not rely on china for that, 90 products components that make up a lot of our generic drugs are made in china we have to bring that back too Rare Earth Minerals you pointed out problems before covid19 china exposed where reliance on them is dangerous to our National Security ought to work on that looking to reopen other parts of our country now. We see whole world looking at china differently france putting eliminations limitation ones outsiders investing in companies, limitations what we can export to china you see tea leaves if you will congressman good to see you this morning thank you so much. Always great to be with you, maria. Congressman Steve Scalise joining us this morning stay safe sir so that Hillary Clinton throws support behind former Vice President amid sexually assault he allegations, joe leebmen is here will weigh in. Most pressing coronavirus questions answered ask what you want to mother through social media platforms we will break it all down later this hour. Back in a moment. Ive always loved seeing whats next. And im still going for my best, even though i live with a higher risk of stroke due to afib not caused by a heart valve problem. So if theres a better treatment than warfarin, ill go for that. Eliquis. Eliquis is proven to reduce stroke risk better than warfarin. Plus has significantly less major bleeding than warfarin. Eliquis is fdaapproved and has both. Whats next . Sharing my roots. Dont stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. Eliquis can cause serious and in rare cases fatal bleeding. Dont take eliquis if you have an artificial heart valve or abnormal bleeding. While taking eliquis, you may bruise more easily and it may take longer than usual for any bleeding to stop. Seek immediate medical care for sudden signs of bleeding, like unusual bruising. Eliquis may increase your bleeding risk if you take certain medicines. Tell your doctor about all planned medical or dental procedures. Eliquis, the number one cardiologistprescribed blood thinner. Ask your doctor if eliquis is whats next for you. Maria welcome back Hillary Clinton endorsing joe biden former candidate throwing her support behind former Vice President taking a jab at President Trump over his coronavirus response, watch. I want to add my voice to the many who have endorsed you to be our president. Just think of what a difference it would make right now, if we had a president who not only listened to the science, but put fact over fiction think when a it would mean if we had a real president not just somebody who plays one on tv. Maria joining me right now former connecticut senator Vice President ial candidate and he council Joe Lieberman thanks very much for joining us. Thank you, maria good to be back with you. So lets start with Hillary Clintons endorsement, your reaction to what you just heard. Well, obviously, it is no surprise that hillary endorsed job but helpful the party is uniting around his candidacy, and inevitably part of that will be a swiping at President Trump for his handling of the coronavirus episode crisis, because it is an Election Year my hope probably a faith and feel hope that we focus on together get our country out of health care to get our economy growing again wait until we achieve that and look back on what President Trump and administration have done if response to the coronavirus pandemic there is a time fostering, i think for now as recovering time to pull together and not apart. Well, especially in the face of this biden accuser out there tara reade slamming Hillary Clintons endorsement she is accusing clinic of quote enabling a sexual predator so reade said Hillary Clinton has history enabling powerful men to cover up sexual predatory behaviors inappropriately Sexual Misconduct we dont need that for this country joe do you think there isnt any merit teelgs and accusations from tara read . What is your reaction to it. Yeah, well right now it is hard to say i mean i think we have another Campaign Going in somebody sexually that is the way it is right now would i say this accusation will not have a major affect on outcome of the election in november because it is 27 years ago not part of a pattern of behavior like this alleged by anyone against Vice President biden. But it is attracting attention. And part of the political environment so my guess is now it wont have an effect on outcome, it creates some static, and something that Biden Campaign has to worry about. Maria well i think this election will be about china given the fact that so much of our important ingredients like 70 active ingredients in prescription drugs are made there basically threatened us in the middle of this crisis that they may not send those important ingredients to the United States. Through staterun media that as well as president direction on reopening this economy and handling of the coronavirus i think what this election is going to be about the president last night issued an executive order to keep Meat Processing plants open amid pandemic to try to keep food supply flowing in some states like georgia and texas are already reopening businesses this week senator what is your take on all of this . How should reopening look like from your standpoint and what about the president s leadership during this pandemic . From your standpoint . Well, going back to what you said earlier, i mean i think if you follow polls right now opinion polls you would see if election were held today Vice President biden would probably win, winning nationally winning in critical states, president pennsylvania, michigan florida but there are six months to go to me key question, in the campaign is are we the American People feel we are recovering from coronavirus it certainly appears we are now, and the economy rolling again, as third we are going to get gdp out im sorry. Go ahead. We are going Joe Lieberman thank you so much for joining us we are getting gdp a check on economy when we come back mornings with maria right after this thank you Joe Lieberman. These days staying connected is more important than ever. So were working 24 7 to maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. Futures indicating a gain start of trading this morning, dow industrials up 188 points a lot of earnings out this morning, we are also waiting for the First Quarter advance gdp the first estimate of the gdp for the First Quarter, economists predicting a plunge 4 , steve forbes what are you expecting, tell us what to look at when gdp number comes out about five minutes. What you are going to see is a grim number but everyone knows the Second Quarter is going to be even more horrific the question what is going to happy Third Quarter everyone knows march was bad month february and january were good. So this number is going to be single digit its everyone knows Second Quarter double incidental digit its how do we get government out when things start to recovery. Certainly Second Quarter, estimates jacqui but between 20 and 30 contraction for the a Second Quarter oil on top of that going to create some bankruptcies. Absolutely, that is something to worry about when it comes to Oil Patch Energy patch when you think Second Quarter gdp number can look like so important to look at what states are doing in terms of getting people back to business because that can stem some of the damage. Quick break advance read on First Quarter gdp when we come right back. Stay with us. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Good wednesday morning. Thanks for joining us. Im Maria Bartiromo. Wednesday, april 29, 8 30 a. M. On the east coast just before 8 30 right now, we are awaiting breaking news on the impact of the coronavirus having on u. S. Economy, we are waiting on advance reading First Reading of the gdp for the firt quarters due out in any second, economists expecting contraction 4 some looking for even steeper decline those numbers may very well be a market mover even though it does look back to the First Quarter, ahead of the report futures indicating a tripledigit gain for the dow industrials this morning, getting a boost from boeing remember boeing reported earnings everybody expected to be down big they were. And yet the stock is up this morning, helping dow up 320 points right now, and nasdaq up 133 s p up 42 points, First Quarter gdp on the way expected down 4 Dagen Mcdowell i know backwardlooking we may very well bet a revision. Dagen might two things to watch i will be looking at how much the consumer pulled back expectations is that consumer outlay fell by 3 to 4 , Business Investment took even steeper plunge at least expectations are 10 to 15 First Quarter that is what were watching for in this how consumer held up how much did businesses pull back, case again the Second Quarter, will be much, much worse but if confidence is still in there for consumers it fell in confidence report that we got yesterday but Consumer Confidence was still in there. That is a little bit sign of hope there. Yeah. Of course, businesses frp going to pull back spending but this is just getting two weeks in the quarter. Because march really turned negative, but it was just two weeks that is why it is really Second Quarter gdp typically out at this point Cheryl Casone looking at numbers what to expect here, we dont have a number yet do you have the number. Cheryl up yep, 4. 8. Up 4. 8 maria. Can you hear me. 4. 8 . Maria go ahead. Cheryl estimate was loss of 4 , up 4 poin 8 u. S. Advanced qone gdp coming up you just said estimate we have seen a loss of 15 contraction a gain 1 this is well up well above any of the raining had on radar look at that dow right now, that is what jpmorgan economists said looking for contraction more than 11 , wells fargo since beginning recession he look shutdown started mid march takeaway what you will from numbers maria but yep that is what we got 4. 8 to the upside adequateness read qone gdp could be revised that is what youve got on screen dow futures up 372. We understand moving because weve got Gilead Sciences on move as well, because of a positive data coming out of this latest gilead trial we know that gilead is producing remdesivir a treatment for the coronavirus so a lot of things happening this morning, to boost this market in particular First Quarter gdp betterthanexpected surprise up 4. 8 joining the conversation macro mavens president Stephanie Pomboy we know a dreadful Second Quarter at least we think so this First Quarter turning out a lot better than anybody thought we were expecting a decline 4 , cheryl gave news up 4. 8 . Stunning numbers actually i am wondering now how much of that could have been inventory with Companies Maybe seeing coronavirus situation unfold trying to bring as much in this. Maria stephanie the report was wrong reuters got it wrong negative 4. 8 , gdp First Quarter was negative, 4. 8 stephanie, so sorry about that we went with this reuters number a negative. Very hard to figure out where the plus 4. 8 number came from other than inventory build so, yeah 4. 8 i think your point well taken this is with two weeks of impact, from the pandemic, so really the a Second Quarter number we are going to be keying in on, and forecasts there go you know pick a number from down 15 to down 40 i think. So for me the bigger question is what happens in second half what happens you know after we get through this. And will this expectation that seems priced in the markets clearly that we have a vshaped or ushaped rebound come to fruition i am hill suspicious that have you are probably not surprised to hear given what we are likely to see in terms of of a change of behavior, not just on part of consumers, but more pornlt, on the part of the corporate sector where you know they spent last 10 years basically, running with zero cash and zero inventory, and i think that that Business Model is obviously, being called into question not to mention, the the Global Supply chain situation. So we are going to have a lot of issues to address once we come out the other side of this in terms of onshore production, and holding more cash and inventory all of which will be sort of at expense of Profit Margins in my view so again, the forecast china continues to be china continues to be one of the big discussion points this morning weve got more signals, that the world is really changing sentiment when it as relates to china, france this morning coming out with new rules, in terms of investment limitations for any company trying to invest in French Companies outside the United States looking at chinau. S. Commerce department putting limitation in those on exports you mentioned in your notes the fact that china is going to be the subject, going forward. I think that what happens with regard to chinas role in global stage after this after the dust settles everyone is able to look back is going to be, maybe at risk over stateing it the macroeconomic geopolitical theme of next several years. You know obviously, like you pointed out it is very surprising to see europe have this blowback against china globalist and macron we also heard Angela Merkel make similar comments, japan in their stimulus bill actually sets aside money to help support the reshoring of production to japan so global he everyone starting to scrutinize whether china is really a good faith player on global stage. India as well limited he Foreign Direct Investment from china we are seeing that i think that really is just sort of going to accelerate wave away from globalization we were already starting to see we will have a lot of time to digest consequences that have in terms of of inflationary higher costs obviously, of having to produce at home, and have higher labor costs, et cetera. Maria let me get good news out here because one of the reasons this market is getting empoured Gilead Sciences saying aware of positive emerging from aiaid study investigating antiviral remdesivir for treatment of covid19 study showing positive results, for this drug, as relates to treatment of covid19. And that has got gilead on the move as will be as boosting Broader Market Everyone Wants to see a treatment that works ultimately a vaccine vaccine. Expectation national tult allergy Infectious Diseases to provide detailed information at some upcoming briefing but gilead in a statement saying this government study of investigational antiviral remdesivir covid19 met end. Primary end point date he emerging from o study remdesivir not license approved anywhere globally but has been in testing we got remember that report it was one part one trial that was being done at a hospital. And it was and there was information that came out that was very positive, there has been kind of a backandforth it was Additional Information i think leaked by World Health Organization about trial but we are looking for kind of some solid information, about the trials, and this is if we take a look at gilead stock, we should point out still halted. Halted. We should point out something. Maria and probably going to move on this. Dagen we always listen to tony Fauci Anthony fauci at abbreviations really kind of two courses in tackling the coronavirus, covid19 there can be treatment course, or it can be vaccine course. And you saw that with the hiv epidemic, like there was a focus on vaccines but ultimately it was the therapies that led to a treatment of that virus for many years and about led to essentially i can live with it for your entire life hiv that is, so it is not like a vaccine vaccines are not allornothing if we get treatment or therapy that can be given to somebody what contracts covid19 that could be a real turning point in the fight in this pandemic. Maria right. And certainly as we look to these reopenings of the economy, are in several states, this is great news, we are waiting for the stock to open it is halted, this probably going to be a big boon for the stock we are waiting or go more information, Stephanie Pomboy with us after we got gdp number and i want to ask you about Federal Reserve stephanie because central bank wrapping up meeting today expected to announce, decisions, and reaction to the covid19 pandemic Federal Reserve cut rates to near zero stephanie your former colleagues at Cornerstone Macro this morning without with a report they think jay powell is going to tell us rates will stay near zero until 2023 stephanie. Yeah, i dont disagree at all actually i think that the fed is going to end up taking it Balance Sheet in doubledigit territory it will stay there quite a while, if you think back to the Global Financial crisis, in twut when they first started qe the idea a temporary program we had a new normal, in terms of the consumer after the Global Financial crisis and whole rejiggering Financial Sector that made it such that they mad to come debacle qe 2, qe 3, basically better part 8 years to contemplate in wipeding that policy i think if you contemplate the impact of this pandemic today on all sectors of the economy it is hard to argue why the reaction would be different. I dont know why we should anticipate vshaped recovery that allows fed to immediately back out i think it is going to be much more prolonged flatter recovery, and i think part of the problem too is that while the fed is pushed rates down, and it is you know provide a lot of backstops to the market the one thing they are not doing and just verboten understandably so touching junk but that market almost three trillion in size speculative integrate debbed it continue to devolve deteriorating rates very high in that sector rallied on primary Credit Facility launch that was going to backstop fallen angels then moved back higher again not getting the support we have three trillion in debt out there where down grazed are coming fast and furious, in february, the downgrades in the credit space of the junk space was 11 in total they are now 865 issues that have been downgraded, over 500 of those happened since fed announced primary Credit Facility march 22nd. This is really going to be a problem as those companies go bankrupt stop paying their bills going to ripple through the credit market so i think that is going to be an issue for the fed as much as they have done already if they dont do something to backstop high yield speculative market it is pretty much pitching in the wind for lack of a comrert expression. We will seek with president of the dlats Federal Reserve Robert Kaplan friday dont miss that all these issues will come up certainly talking about these issues at board table over an over again you have been mentioning corporate debt for years on this program steven viewer got great value out of that jackie here we are 4. 8 contraction in First Quarter, tomorrow we are going to get latest weekly jobless claims numbers, we know that already, 26 Million People have filed for Unemployment Benefits. Tomorrows number expectation is that 3 1 2 million additional americans have filed for unemployment in the last week, so weve got our fair share of windows into what has been a weak story for the u. S. Economy for sure that is an understatement jackie. Absolutely, weve got 26 Million People out of work already because of pandemic, so you are just looking at market i am watching futures this morning, i know yeah, the boeing numbers, werent so bad but till werent great gdp number wasnt so bad still not good we know that it is only going to continue to get worse here, so you know, i think some investors are going to look at this market 24375 on dow, still be a little bit cautious as we move forward maria. Yeah also got earnings season in full swing boeing the headlineer of the morning reporting last your decline in revenue and earnings per share announcing plans to reduce workforce and production, stephanie are there any areas of this market, that you would actually buy right here a couple weeks ago you were looking at valuations getting positive on activities where are you in that, then look at certain pockets of this of this market, case you look at bo techs pharma like gilead five and ten year date on remdesivir showing very positive results from that study. Going back to the valuation metrics when we chatted i was starting to get you but manyish are market cap one one trillion of gdp we are almost equal which is pretty much par for the last you know four decades, we are now back to a seven trilliondollar over valuation. So by that measure at least i wouldnt really be eager to buy this market i think this looks a lot like classic snapback rally in the context of a broader bear market but in terms of sectors i agree with you there are going to be really great opportunities, out there, i think obviously biotech is one of them the other one i kept pounding the table on this for a while is gold, if you look at the gold next what it is the top s p up 44 a nice gain i think as you look at global monetary policy, continuing for possibly will years at this level, you need to protect the purchasing power of currency so i think gold really is another area i understand that it is not one that people can put a lot of money in but it would be a good time to have some position in gold for sure she i mean i dont even look at gold as commodity i look at gold as hedge are you telling me to hedge myself ahead of what you expect another short selloff in stocks snow yeah, exactly i think when we chatted last i was describing two phased phenomenon non phase one through Health Crisis then we have intervening pierced people say okay. We made it through Health Crisis looks like might have some treatments the fed, and congress have you know injected a ton of stimulus we are getting through the other side just when everyone lets guard down you get valuations back seven trillion above gdp, you get hit with a second wave which i was what i was talking about earlier and that is this wave of Corporate Credit default is going to happen. Unless the fed expands its safety net that is going to have a major consequence not just in the credit markets, will be material, but also in the economy, you know those companies will stop employing people stop paying bills going to have real impact on going to be hard to bounce back from. How are they going to start unwinding a Balance Sheet at some point, right dagen . At some point they have to start going the other way i know now is not the time that is going to be something market watchers are going afraid of when fed starts. Dagen up for discussion about putting in a yield cap, potentially might not hear about it this meeting, but committing to buying unlimited amount of particular treasury maturity to peg for a certain twhashth the fed has been doing is working stephanie. From april 13 through last friday ford amc, seaworld issued combined 28 billion in speculative grade bonds, that is fourth largest two week total on record according to nick at the wall street journal the lending programs at fed appear to have made it possible for companies to issue debt, even without the central bank purchasing a single security. What the fed has done allow this is to borrow words of someone on twitter theyve allowed market to price actually credit risk without having to factor in a liquidity meltdown, the fact companies can go out raise money is astonishing proof the fed is getting it done. I think there are a handful of companies you are absolutely right, that have benefited from this issues and they are able to refinance which is great because we have a massive wall of debt that needs to be refinanced this year. But i come back to the point that junk yields started year under 5 they are 8 1 2 today. So ford and other Companies May be able to get off some debt here but there are a whole slew of companies out there that are not going to be able to service debt at you know 350 basis points increase in yield. That will come to fruition you are seeing again i come back to downgrades because that is first thing you are going to see debt downgraded before default comes, since fed announced that program, that has enabled ford other borrowers to come in you scene more than 500 downgrades in the high yield space. So while there getting some support and it is probably would have been much worse had it not been for that fed program, it is not enough. Maria we are talking this morning about a lot of breaking news happening at once Stephanie Pomboy joining us this morning on heels of the gdp coming out, down 4. 8 in the same moment as gdp coming out showing that contraction First Quarter we also have breaking news from Gilead Sciences Gilead Sciences reporting positive news from a study about its treatment of remdesivir this treatment is treatment for covid19, and that has boosted market huge up 393 points on dow industrials investors reacting to a potential positive in this in this longstanding upset for the economy, this pandemic, so we are going to talk more about realms remembrance good to see you this morning thanks for many here the study, showing positive results, on remdesivir this morning, and as businesses look forward to getting life back on track more hotels are also making coming we are going to talk about what this looks like when we get out of this Stephanie Pomboy thank you so much joining us on the telephone is Raymond James Biotech Research director to talk more about 2k3wi8 ad thank you for joining us what can you tell us about study on remdesivir markets reactor to go positive news from this for the treatment of covid19. Thanks for having me actually, two studies that were commented on by gilead one from naid apparently met primary end point details supposed to be at performance briefing he we dont know much more beyond the fact ostensibly positive result from that study gilead reported date from their study sponsored in severe patients a little bit more complicated no control group to really say if drug did better than if it would have in patients that didnt have it there areing in analyses from that as well still working through it comparisons whether or not you can use the drug for only five days opposed to 10 days complicated but suffice to say in aggregate the data are positive for remdesivir. Steven, what do you think about the side effects here . Because you know there was that coupleweek period we were excited about hydroxychloroquine until we learned side effects are cardiac arrest, and potential heart issues are there side effects with regard to remdesivir that we know of today, that could be cautionary signs here . Well certainly i would expect side effects there is some equation of that from data that last week was posted to the w. H. O. Web site from stie no china gilead cautioned there those data may have been misinterpreted or misrepresented in short blurb we saw w. H. O. Web site it has have side effects restricted to some stents that have kidney liver problems not in extremes, hydroxychloroquine some safety concerns while real have been a little exaggerated as well with all dangerous including hydroxychloroquine and remembers remembehe remdesivir is going to be adverse in the events not necessarily appropriate for all patients triels initiates have comorbidities you want comorbidity, you want to please continue. There is nothing in the press releases that suggest untoward safety i would just say that. Ive got press release gilead statement positive dprat national substitute of infectious zs study remdesivir for covid19 steven how long will this take if your view i know we are on a fasttrack. The president has cut down, rulemaking within the fda to try to get things through the fda quicker but in your from your standpoint, how long before we were to see real frequent and regular use of a drug like remdesivir from gilead . Well, i think, probably even by this afternoon we will know a little bit more, again, ev dently nia detailed information from that study going to be presented at upcoming briefing per press release this morning once that happens fda can act quickly you saw that for hydroxychloroquine. You know weeks ago, and, they can do that, you know, i would imagine with remdesivir or at least act quickly to get out in scale to patients doing to be important to understand which patients specifically are benefiting from this or not there is some evidence when you use it earlier in treatment, you have better clinical outcome that is what gilead is saying in press release this morning, that is going to be important to understand, it could be pretty quick once we understand if and where it works, pretty quick to get out to folks within weeks. Maria that is what the market is looking at, dr. Steven, thank you for joining us this morning, really appreciate your insights this morning, from Raymond James Dagen Mcdowell jump in gilead says going to continue to discuss, the with regulatory authorities this growing data set one of the press releases he was talking about is in relation to the National Institutes of health study. This is one of several studies that gilead is involved with with remdesivir. Again, an antiviral that was developed or that they originally were trying to use to treat ebola but now there are a number of different trials that are going on. This is critical to us recovering as a nation, even financially and economically from this pandemic, and from these shutdowns. We dont need to wait for a vaccine if there is a therapy, a treatment that can prevent people from dying from this virus, and this is one of the most critical drugs that is being studied. Maria joining the conversation now is Infectious Disease expert, Johns Hopkins center for Health Security senior scholar, dr. Amesh adalja. Your reaction to what we are learning this morning on remdesivir from gilead . I think this is very good news and everybody is very optimistic about remdesivirs chances and like your previous guest talked about, we have to understand which patients this is going to be useful in, what the time window is to use the drug, what benefit we might expect. Remember, this isnt a drug that you take by pill like tamiflu, for example. This is something thats given to hospitalized patients in intravenous infusion. We are talking about decreasing mortality, decreasing the chances someone might need a ventilator, decreasing icu stay. All these are very important end points to look at with this drug, and everybodys really been anticipating having something to actually treat these patients with that is effective. Maria are you surprised to get this news from this study this morning . I mean, i know that we are trying to move things through quickly, but if we were to actually get these positive data sets coming out, how much longer do you think from your standpoint until we actually do see phase one, phase two, phase three quickly moving and a drug on the market . Right now we are moving very rapidly with any kind of countermeasure that works. We have been hearing leaks over the last couple days about remdesivir so we knew the data was imminent and there were going to be probably much more robust data coming in the next couple of days, at least from what i have been reading. I do think once this drug comes out, based on the fact we have tested it in ebola patients, there is a good idea of what its safety profile is, what adverse effects to look for, that we will likely see an emergency use authorization sooner rather than later because of this experience that gilead has had with this drug with ebola. I think they will be able to leverage that data in their application. Maria we will leave it there. Thanks for very much for joining us. Great news to end the show on. Want to thank you, dagen and steve and jackie. We will send it to Varney Company right now. Stu, take it away with this positive news on remdesivir. Stuart absolutely. Its wonderful news. Good morning, maria. Look, its positive news, got that. Good morning, everyone. Lets start with the economy. Question, how did the economy perform in the first three months of the year . Well, pretty good in january and february, terrible in march, when the virus lockdown began. The economy contracted at a 4. 8 annual rate. Bear in mind the april, may, june period is likely to be much worse and next friday, we will likely see an Unemployment Rate well above 10 . Yes, it is bad right now. So why is the market going up when clearly the economy is going down . The first reason i
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