Transcripts For FBC Mornings With Maria Bartiromo 20240713

Industrials up 225 points, about 1 , s p is up 26 and nasdaq future higher by 84. Markets are erasing early losses yesterday as more states announcing reopening plans. Earning season rolling on this morning. After the bell, attention to disney as theme parks remain close. Investors watching Video Companies tonight. The virus taking a toll on business for sure. Golds gym latest to file for bankruptcy protection, list of bankruptcies coming up. Growing concerns over shortages of meat, cosco and other grocery chains limiting purchases now and pay to go social distance . Frontier air to charge extra for passengers who want to sit next to empty middle seat, mornings with maria live right now. Maria Global Markets this morning, green across the board. The cac quarante is up 79 and dax index higher by 174 points. Germany Central Bank President warning that quick economic bounceback in europe is unlikely. The markets nonetheless trading up. In asia overnight markets in japan and china and south korea closed for holidays, but in hong kong there were gains as the government announced businesses can reopen later this week including gyms, beauty parlors and movie theaters. As you see the hang seng index up better than 1 in the session overnight. Oil prices on the rise for a fifth consecutive session. Take a look at price of crude which has been creeping up at 22. 33 a barrel. Up 9 this morning. Tom some Top White House stories, u. S. Cases and deaths skyrocketing, projectioning claimed there will be 200,000 new cases and 300 deaths every day, significant numbers of roughly 25,000 new cases and 1700 deaths every day. Internal documents contains charted produced by fema, used cdc but the projections comes from modeling done at john hopkins university. The white house stressing that the report did not come from the administration and has not been presented to the Coronavirus Task force. President trump telling the New York Post that he knows nothing about this report calling it fake news. But the university of washingtons institute for Health Metrics and evaluation is warning that there could be surge in new cases as more states begin to reopen their economies and relax social distancing rules. It projects the u. S. Death toll could reach 135,000 by august, this summer, doubling the initial projection. The president , however, is saying theres great optimism to reopen america. He think it is Fourth Quarter will be, quote, very good. Meanwhile President Trump getting out of the white house for the first time today since virginia. He heads to phoenix, arizona, honeywell thats making masks. 170,000 lawsuits have been filed against, hospitals, nursing homes, airlines. In new york city lawsuit against the state the state and two hospitals accusing them of failing to supply enough personal protective equipment. And the Class Action Lawsuit against ticketmaster over canceled events. Layoffs on the way, United Airlines meanwhile at least 30 of management and administrative jobs will be cut at united beginning in october. Thats according to company memo. The move affecting more than 3400 people of the coronavirus pandemic as the pandemic deals a body blow to airline stray. Traffic down 95 . Shares of united higher this morning ahead of the opening bell, gain of 3 and a third percent. Cosco and kroger imposing limits on how much meat customers can buy due to shortage in Processing Plants as workers tested positive for coronavirus. Cosco allowing 3 items per member and raising concerns that customers will buy more meat often. Kroger shares up half percent. Gain at the start of trading, markets eyeing the reopening of the economy as states begin to loosen the coronavirus restrictions, investors are looking ahead to earnings this morning including regeneron and then disney after the Trading Market closes after the bell. The expected to see decline year over year as theme parks, cruise lines shutter. Shares of disney up half percent going into those numbers. Joining me right now wealth adviser president mark avalon and joining the conversation fox business dagen mcdowell, mark tepper and senior fellow Mattie Duppler. Dagen good morning. Maria economy start to reopen with several states, 23 states reopening, 35 of the gdp. How do you feel about the opening to have economy, slow and sure and what the impact it will have on the overall both . Well, its going to have a positive effect on several levels. Workers will be able to start earning paychecks and the market is taking some positive reinforcement from that. We see that in the futures today but in earnings it might be false start, we will see lift off the bottom, earnings are a different story. How companies are able to tush increase revenue into profits while not letting expenses get in the way of net income, thats going to be the challenge and stock prices are driven by earnings, theyre not driven by gdp. So thats what we will be looking at on a company and sector basis, which companies are showing profitability. Maria all right, mark, mark tepper you have the same issue, you dont have a lot of visibility, jump in here. Mark thats correct. Earnings expectations are way too high, it seems like the market, the market has been resilient, market has written off 2020 earning because they are obviously going to be so bad, so all eyes right now seem to be on 2021, but the streets estimates are way too high. The street is expecting full rebound, we think its going to come in much, much lower than that. 135, 140 range at generous multiple of 18 times. Thats puts fair value of s p about 2500. Obviously right now its showme time as far as the economy goes. Maria and yet mark avalon we are just getting dupont earnings, the numbers are beating expectations both on earnings and revenue, how do you read into the earning season knowing what while we could see beats on quarterly basis, longer term its hard to have visibility. Right, theres no visibility. All the lawsuits are going to gun up business and restaurants are going to have extra spacing which is going to reduce the profitability of these restaurants, people who congregate, theres no longer going to be profitability for hotels and anything in the entertainment, leisure, hospitality sect o sector, all of the profitability models, frontier and the airlines, all l of the profitability models were based on certain flow coming in. That would be reduced with spacing and then when you add the cost to keep people safe and increased cost for workers in these places, even grocery stores. Theres going to be a shakeout thats years in the making. Its not month by month or quarter by quarter. Thats why the earnings calls and i agree with the other guests, the earnings calls for the s p have to come down from the 144 consensus. I think they may even come down to 130 or lower, so i think investors need to stop frontrunning the fed. The fed is a huge factor here, but theyre not going deliver earnings on main street and in Corporate America and i think investors to temper their enthusiasm for stocks. Maria yeah, at the same time, dagen mcdowell, jump in because we have a list of bankruptcies related to coronavirus. Golds gym filing for chapter 11, closing 30 companyowned locations permanently. This list is getting longer. Dagen it is and it will get much longer particularly in retail with j. Crew already filing for bankruptcy but you have Department Store chains many of which could have file bankruptcy protection. This is the world of debt that we were dealing with going into this pandemic and this broad business shutdown in the United States and then the debt problems that we are going to have coming out. Weve had a record amount of corporate debt, thats where this kind of freewilling borrowing has happened. Stephanie talking about it over the last few years but now you have the government soaking up all of the money in the world. The treasury will borrow 4 and a half trillion dollars, record amount of money in fiscal year and we could see a budget deficit for the year, 4 trillion, even 5 trillion, again tax revenue plummet during town turn. We have will have the burden of trillions of trillions of dollars debt and now youre going to have basically the federal government big footing what would be money going to fund private private businesses for literally not just years but decades to come. Maria at some point the debt and deficits catch up to you, mark avalon, what do you say about that and what about the jobs report due out on friday, more than 21 million job losses, address debt and the job losses, mark. Mark first thing about debt in the private sector and dagen is absolutely right. What the government is doing is unprecedented. When i was in the bank we had a saying, bad credit drives out good credit. So thats something we will see shake out. In terms of the jobs market, remember, weve been talking on the show for years about the strong labor market, the rising wages and driver for Consumer Spending which is the engine to have economy which was the driver for the stock market. Well, with 20 plus unemployment, that situation is devastating and its going to take years not only for unemployment to creep back up but for the worker to have strength to demand the wage increases, so i see a sluggish wage market not only in terms of markets but in wage growth. Maria well, we are right in the middle of it now and job report is important of indications of where we are today, we know the administration expects a bounceback and pretty growth story come the Fourth Quarter, mark, good to have you this morning, thank you very much for your insights, we will see you soon, sir. Mark avalon. Big show coming up. Dont miss it general jack keane is next, talk about a draft proposal that could bring taiwan to the table at the World Health Organization. Texas congressman burgess. Join us, plus we have the ceo of ibm coming up. Maria welcome back, the origins of the coronavirus, china and the World Health Organization pushing back on claims that covid19 came from a lab in wuhan. Trump administration circulating a draft proposal that would bring taiwan to the table at the World Health Organization in an effort to push back against china and punish the global body for being too china centric. Joining me right now fox news senior strategic analyst retired general jack keane. General, always a pleasure to see you. Look, no surprise that china is pushing back on how this virus started, but there is evidence that the first claim of the open market could not be true because the people who had it contracted never went to open market and lab is a few miles away from where the origin was in wuhan. Jack yeah, absolutely, maria. Listen, Chinese Communist party has not had a significant public image problem on an International Scale that we are seeing since square in 1989. Originally the ccp indicated that the virus actually broke out from the United States militarys participation in the World Military games in october in wuhan city, well that was completely debunked because there was no evidence of cv19 as a result of the games. Maria right. Jack they then danced out the wet market because of the cause of it and the very reason that is you indicated, the statements that are in Public Domain that the people who originally infected with the virus in wuhan city were not never accessed the wet market came from wuhans cities doctors and scientist and i think thats a very credible claim that they are making. Listen, the fact that w. H. O. Is still making the claims to support china now after they have been clearly identified on the International Stage as being in chinas orbit is really amazing to me. You would think they would be more objective and taking scientific approach as oppose to a political one. Maria everybody is onto them, onto w. H. O. And onto china even though Chinese State media is slamming the secretary of state mike pompeo calling the Coronavirus Claims insane. Pompeo said there was enormous evidence that the virus emerged from the laboratory in wuhan and i have a list in front of me that i basically talk about every day, general, thats the official data from the Chinese National costumes office which shows how much they cornered the market in the protective equipment in january from face masks to goggles, surgical gloves, oxygen therapy. They cornered the market while downplaying the disease. What kind of accountability would we see here. Can the u. S. And allies now, can they hold china accountable. Jack holding them accountable with the World Population at large. The ccp are paranoid about International Image and domestic image and the domestic image is the one that concerns them the most. Thats where the accountability begins and that has already started. We have seen two dozen plus african nations come out against the ccp in china and these are nations that are somewhat behold to go china economically. We have seen the same thing taking place in europe, not to the same degree it is with the United States certainly france and germany while oped pieces have been antichina in terms of cause and spread, et cetera, the governments have not been. Southeast asia in the Pacific Region very aggressive. Australia is very aggressive. Theres a gathering of consensus internationally and that public image that that is affecting china is what theyre really pushing back on. They are absolutely paranoid about this. This is their achilles heel, why, it impacts on the support that they need to have from the people and that is whats going on here. Inside china, maria, theyre telling through stateowned media and videos that xi is a National Hero for stopping the spread of the epidemic. That is absolutely amazing. Maria i know they dont want another 2 Million People in the streets like they saw in hong kong. They dont have to worry about that anymore with the virus having shut that down, thats for sure. General jack keane. Quick break and then social distancing pushback, how some americans are reacting to the rules and the guidelines, thats next. Our Retirement Plan with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Staying connected your way youre just a tap away from personalized support on xfinity. Com. Get faster internet speeds with a click. Order xfi pods to your home in a snap. Or change your Xfinity Services with just a touch. All in one place. Youre only seconds away from all of that on xfinity. Com. Faster than a call. Easy as a tap. Now thats simple, easy, awesome. Maria welcome back, pushing back on social distancing, startling new footage out of texas shows park ranger being push intoed a lake after telling a crowd of park goers to maintain social distancing. The man accused of pushing rangers facing charges of attempted assault. States across the country easing restrictions on businesses but still enforcing social distancing. New government draft report is predicting that the United States will see 200,000 new daily cases of covid19 and 3,000 deaths every day, every day by june 1st, mattie dupller, what is this pushback, look at the numbers. Mattie you dont have to be a jerk. But the one thing we do know is social distancing works, remember, if nothing had happened, no precautions had been taken we would be looking at 2. 2 Million Deaths as a result of coronavirus. We know that social distancing was successful. We need to have some amount of social distancing in effect so we can reopen economies so get rid of the more dire consequences to have coronavirus which is severe job less and economic depression. I think everybody can stay out of the parks for a couple of months. Maria seems, dagen, no one understands the severity of this and how contagious this is sontaggous infection. Dagen i know but youve had people locked inside in tine yes apartments in new york city and metropolitan areas for six weeks if not more. If youre looking at california. I think the appearance of large groups of Police Officers out and im not justifying putting your hands on a park officer, that is absolutely wrong, touching, pushing, coming in physical contact with anyone who is trying to do their job is absolutely wrong, however, people are out in the sunshine and if they are willing to take on the risk, again, we are upset, you have Police Officers out issuing summonses, summonses over the weekend to new yorkers and couldnt protect the elderly and the nursing homes. What do they preach . We need to protect the most vulnerable. Well new york state didnt do that but they had cops issuing to summons and peoples cars are getting broken into in the streetsment when you start sending out groups of Police Officers and people see them and this is out in california too where you have a surfer in the water who is getting chased by a Sheriffs Department boat, how does that make sense . They are trying to get people out of the water. You need to back up, everybody does. If people are willing to take the risk and go out in the sunshine, you know, if they are within 4 feet of somebody, i think 6 feet, i think Everybody Needs to take a deep breathe breath. Maria democrats joining the call to investigate and push back against china. We will have that when we come back. Stay with us. Adversity came to town and said, show me what youre made of. So we showed it our people, sourcing and distributing more fresh food than anyone. Our drivers helping grocers restock their shelves. How were helping restaurants open popup markets. And encouraging all americans to take out to give back. Adversity came to town. So we looked it in the eye. And it wont be us. That blinks first. Maria welcome back, good Tuesday Morning, thank you so much for joining us. Im Maria Bartiromo, tuesday may fifth, top stories right now 63 is a. M. On the east coast. Markets are higher, futures indicating a higher opening for the broader average as more businesses allowing to open doors. The s p is up 22 and nasdaq higher by 78. Markets erased early losses as more states did announce reopening plans bun we one. Yesterday dow industrials up 26 and s p was up 12 points, Global Market this is morning taking a cue from wall street trading up. European indices green across the board. Germany Central Bank President is warning quick economic bounceback in europe is unlikely. All major indices up nonetheless with dax higher. Ation markets overnight look like this, markets in japan, china and south korea closed for holiday and hong kong was open but gain of 1 as the government there announced some businesses can reopen later this week including gyms, beauty parlors and movie theaters as well. Meanwhile oil prices are up for fifth straight session. We are above 22 a barrel. 2. 12 higher there. Democrats are joining the call for a formal investigation into allegations that joe biden sexual assaulted a former staffer. Cheryl casone with those details now in headlines, cheryl. Cheryl thats right, maria, good morning. Among them massachusetts senator ed who says an independent investigation into tara reades claims are needed to ensure, b bah top contender for vp slot calling denials credible and convincing. Biden asked to release original complaint to the public but the request was denied because of confidentiality laws. Well, tributes are pouring in after the death of legendary nfl head coach don who holds record for most wins ever in history for the nfl, 347, led Miami Dolphins to only perfect season in nfl history back in 1972 during 26 years with the team in total. He was inducted into the hall of fame back in 1997. We lost someone we cannot replace. Twotime super bowl don, dead at the age of 90. Here is a look at what is trending this morning on fox business. Com. Shake shack sales plunge. Wework cofounder newman, 3 billiondollar offer was part of 9. 6 billion rescue package that south south softbank approved. Hollywood legend unique pickup truck hits the auction block, the pickup reportedly the last vehicle mcqueen drove before his death in 1980. Maria, the vehicle could go for millions of dollars. And those are your headlines. Maria cool, thank you, cheryl. Getting america back working once again. This as with most of the money in the second round of the Paycheck Protection Program already out the door. Joining me right now texas congressman Michael Burgess, congressman, good to see you this morning. As we see the list of bankruptcies, we recognize how difficult things have become in this environment, what do you think is needed now . Well, first off, we have to open things back up. The damage brought by this virus has been substantial, its been significant, but its not insurmountable and right now i think the most critical thing Governor Abbott has focused down here in texas is lets begin to open things back up and and we are seeing that, we are seeing that here locally but the number of people filing for employment insurance in the district that i represent is at alltime high and clearly is not sustainable. Maria yeah, Mattie Duppler, youre also a doctor and what you think of Nancy Pelosis rejection of the administrations offer to test members so they can come back to work safely. Micheal test asking so tricky because so many places in the country where testing has lined behind where expectations were and i know we were up significantly than a week ago. Thats still a sore spot but the house of representatives should be back to work. Theres no question about that. We are working every day in the district, district offices are open and fielding calls and people who cant reach some of the Texas Workforce commission, we are actually on the job doing service, but theres ton of work that needs to happen and washington and we need to get back yesterday. Its embarrassing that we are not back. Maria yeah, lets talk about that because House Minority leader Kevin Mccarthy has issued plan to get lawmakers back to work. Modifying existing practices and structures and employing a phase return with committees and utilizing technology for Committee Business and mitigation practices. Congressman, hes basically saying, look, you want to open the most important committees, those committees that have work to get done, get those committees back in first and start putting some changes within the capitol so that you dont have an issue later on like plexiglass, your reaction to the congressman mccarthys plans here. Micheal i do think Committee Work has been done. Thats one of the most painful things among two committees and rules committee. We had one hearing during the month of april in the rules committee but other than that theres work we need to do on the investigative and theres work we need to do on the legislative side and needs to be happening. Maria so let me switch gears, congressman, democratic congressman tim ryan and rokana have introduced bill that provides 2,000 a month to american within certain age bracket, where do you stand on this and what needs to happen next in terms of getting money in businesses pockets, yes, we see what has taken place in terms of Protection Program, but thats not stopping the bankruptcies. How do we get them help today . Micheal i dont think i would be in favor of what congressman ryan is suggesting. The payroll tax holiday, payroll tax holiday is better way to put money in people piece pockets and get back to work, surely we spent the entire month of march to tell people to stay home and not work and now the economy needs to be restarted. Maria yeah. Micheal its that simple in equation. We cannot print or manufacture enough dollars to pump into the economy to make everything work. People have to be back to work. Payroll tax holiday, i will be happy to talk about all day long. Lets have the hearings and lets get those started right away. I would be happy to have debate can congressman ryan and rokata but the fact of the matter we are not doing everything right now. We are stuck waiting to make a decision and i cant tell you how uncomfortable that is. Maria so you want to see the payroll tax holiday, something that steve moore has talked about quite a bit. Mike tepper jump here. Mike congressman, what would be the thing that would help Small Businesses now that ppp is running dry . Micheal there might be a 3. Significant of money went out to the states and to large large entities, not really sure how that money has been distributed at this point. Id like to know that as well. Again, we cant do this with lack of knowledge and i do know this as we do begin to let people back into the workforce, back into again, more normal life, not hear from people all day long, they are worried about losing their business because the business has been shuttered for so long, businesses they poured their lives trying to build. Its time to. Maria yeah, all right, we will leave it there, congressman, good to see you. Congressman Michael Burgess joining us this morning. Thank you, sir. How america feels about getting back to work as more states are set to reopen. Thats next, back in a moment. Announcer there are everyday 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. And mine super soft . Of broadcasters with the sleep number 360 smart bed, you can both adjust your comfort with your sleep number setting. 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. Will it help me keep up with him . Yup so ill wake up ready for anything . Oh, weve got your back. So you can really promise better sleep . Not promise. Prove. And now, save up to 400 on select sleep number 360 smart beds. Ends wednesday. Maria welcome back, 2020 barometer releasing midyear addition. This survey show it is trust in government is soaring across the world with many looking for the government to take the lead on all aspects of pandemic response. Joining me right now the ceo richard, richard, interesting find negotiation this years survey, given this new outlook for government, tell us more about the surge. Well, in fact, government is seen has having been very effective in instituting lockdowns, tamping down the incidents of covid, but i think right now is the most of reckoning for business. Its the time if the bike race for business to pull out in front and make its own way because we have to show people that we can go back to work in a safe and effective way. I think Kevin Johnson of starbucks has done a good job saying we are going back in june. We will not have people sit in restaurants. We will protect our workers and our customers with new ways of running our business. Thats the solution right now. Maria yeah, interesting because in the past its been government thats been on the bottom of the list but here youve seen government and business come together really step up, look at General Motors producing ventilators instead of cars. What i love, maria, in fact, theres an effort to get the right drugs on the market. Gilead offering 1. 5 million doses of the drug for free when the product is finally approved, and i think thats indicative of how business should play this. We need to be seen as force for good. This is the moment of reckoning for business and we have to show that we can go back to work but not the same way we did before. Maybe a and b shifts in the beginning. Maybe its actually if people dont feel good, dont come to work, but we have to try to get back to work. We shouldnt rush it by 3 to 1 people say lets focus on safety first, but we do need to try to have this business lead this recovery. Maria so tell us about some of the key findings in regards to public sentiment on reopening the economy right now . Richard so at the moment theres desire to have set of products that work against covid and show that, in fact, we are protecting our employees. That we are putting people ahead of profits, that we are going to retrain people instead of going to automation and i believe deeply in the ability of American Business to do this because, in fact, business has mostly been the most trusted institution in the last year or two and all we have to do is get back to that positive feeling about business actually caring for its workers, caring for its customers and giving products at the right price because we have a lot of people unemployed at the moment. Maria it sure is. Business has gotten tough. Advertising industry is trying to adapt to impact cause bid coronavirus, but whats your take on the advertising climate right now . Isnt this one of the weakest points . You have live sports shut down and businesses shut down, tell us about advertising right now. Richard effort advertising the low right now. I think thats a real miss. In fact, brands should be speaking up right now. 90 of people say i want brands to talk to me. I want brands to act for me and, you know, they are exercising brand democracy. They want actually to buy products where, in fact, the brand is doing something constructive, so, for example, dove is doing handwashing ads, wash your hands for 20 seconds. Maria thats good. Example of how to play the game. Maria richard, thank you very much, great survey, with we will see you soon, stay safe, richard, Richard Edelman joining us there. Getting people back to work, we are taking you to italy when we come back, stay with us. Want to brain better . Unlike ordinary memory supplements neuriva has clinically proven ingredients that fuel 5 indicators of brain performance. Memory, focus, accuracy, learning, and concentration. Try neuriva for 30 days and see the difference. So were working 24 7 toected 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. Maria welcome back, lifting lockdown, millions of people in italy returning back to work and they did so yesterday as first country to impose nationwide lockdown begins rolling back economic restrictions following the deadly coronavirus outbreak. Factories, construction sites, wholesale commerce opening up beginning yesterday. Most retailers remains close until may 18th, restaurants, bars may wait until june 1, one of one of the hardest hit countries, fear of infections loom. Joining us chief macro strategist and cocktail investing coauthor lenor hopkins, how are you doing, give us a sense of the reopening in italy . Well, actually it was first time in 2 months that i could go outside for something other than just get groceries. A 5mile yesterday was heaven and most was out doing the same thing. Maria do you feel that it feels a little more normal than before . What kind of stores did you visit . Are people using the social distancing guidelines . So the social distanceing guideline does seem to be taking effect. Tinny bit but when youre out for a walk nobody was really taking an effort to stay away and id say maybe 10, 15 of the people werent wearing a mask at all. I mean, understandable because i think theres been a lot of confusion of whether those are useful or not. We are required. Its mandatory to wore a mask. Its italy, everybody likes to do their own thing. None of the shops are open, no restaurants are open except to take away food. Some restaurants have opened up recent pickup meal but no other stores outside of just food is available. Maria i see. Mark tepper. Mark i believe that reopening of the economy but doing it safely is important, thats what we need to be focusing on whether its italy or the u. S. I feel like the longer we are shut down the more damaging this crisis is going to be to consumer psychology but Small Business psychology. Im concerned about Business Owners hoarding cash running lean, those are my concerns right now. I couldnt agree with you more. I think unfortunately we will see a lot of businesses that never reopen again, for example, by the time i can go get my haircut, its been like 4 months the shops would have been closed over 3 months. How many Small Businesses can withstand that kind of pressure . Very few will pull that out when it comes to small ones. I think we will see both in italy and elsewhere in the world more domination by the massive Global Brands because they have the access to funding whereas the smaller, maybe more Entrepreneurial Companies will have harder time getting through all of this. Maria same issue in the United States. Lenore, stay safe. Still ahead my exclusive interview with the ceo of ibm arvind krishna, next hour right here, stay with us. [good job by alicia keys] youre the engine that makes all things go and youre always in disguise, my hero i see your light in the dark smile in my face when we all know its hard youre doing a good job a good job youre doing a good job dont get too down the world needs you now know that you matter. Maria welcome back. Good Tuesday Morning, everybody. Thanks so much for joining us. Im Maria Bartiromo. It is tuesday, may 5. Hillary 5. Getting america back , california is allowing some retailers to start opening this week as it turns to the federal government for help paying Unemployment Benefits. But a new report warning as restrictions ease, the death toll could surge. Controversy continues to grow over the origins of the coronavirus. China and the World Health Organization are now pushing back on the claims it did come from the lab in wuhan. Markets this morning are rallying, futures indicating a triple digit gain out of the gate, the dow up 254 points, better than 1 , the s p up 29, also better than 1 , and the nasdaq also higher by 97. Better than 1 . Markets erasing early losses yesterday as more states announce reopening plans. The best performer as you can see was the nasdaq, up 105 points, one and a quarter percent higher at 4 00 on wall street yesterday. Earnings season rolling out, dupont out with a double beat on earnings and revenue, the coronavirus boosting a number of businesses including personal protection, electronics and Water Filtration. Stock is up almost 3 on dupont. Marathon petroleum reducing Capital Spending by 30 by 2020. The company reporting this morning. After the bell attention will turn to disney as theme parks remain closed, live sports on hold and most movie theaters are empty. The virus taking a toll on business, golds gym the latest to file for bankruptcy protection. Hertz reportedly planning to file bankruptcy protection this week. There are growing concerns over meat shortage as well. Costco and other Major Grocery chains are limiting the amount that customers with purchase. Plus, paying to social distance, Frontier Airlines will charge extra for passenger whose want to sit next to an empty middle seat. President mornings with mariae right now. And Global Markets this morning are higher, european indices are higher as you can see across the board, fq100 up 78, cac up 73, dax index in germany up 141, all the indices up about one andahalf percent. The president of the German Central Bank is warning a quick economic bounceback in europe is unlikely. In asia overnight most markets were closed for a holiday. In hong kong there were gains, the hang seng index up better than 1 . The government there announced that some businesses can reopen later this week. They include gyms, beauty parlors and movie theaters. Meanwhile, joining the conversation this morning, dagen mcdowell, mark tepper and Mattie Duppler. Dagen good morning, maria. Just quickly, im seeing a lot more activity out in the streets of new york city, theres lots more traffic, the Construction Projects are back in full swing. Again, essential workers. Restaurants are reopening for at least takeout. Im feeling it. People arent going to stay inside for much longer. Maria yeah, thats true. And do you see people Wearing Masks as theyre out and about on the streets, dagen. Dagen absolutely, in close spaces and at the green market in union square theres not one unmasked face. Everybody has masks on. Outside when they can social distance and stay away from people you dont really see you see fewer people Wearing Masks. But in closed spaces people are very cognizant of other people and, again maria thats very nice. Dagen theyre homemade masks. How good do they work. I have homemade masks that i have to wear. It just makes people feel comfortable. How good they do is in question. Maria we are seeing lots of pictures across the country. Some of the other top stories this morning, officials are warning of a possible surge in coronavirus cases as those states begin to reopen their economies. The university of washingtons institute for Health Metrics and evaluation now projecting the u. S. Death toll could reach 135,000 by august. That is double the initial projection as states relax social distancing rules. An internal document from fema claims by the end of the month there will be 200,000 new cases and 3,000 deaths every day. That is a significant jump from the current numbers of roughly 25,000 new cases and 1700 deaths every day. But the white house is shooting down that report, saying it did not come from the administration. It has not been presented to the Coronavirus Task force. Meanwhile, President Trump is getting out of the white house today, he heads to phoenix, arizona to tour a Honeywell Aerospace plant thats making masks. A park in Miami Beach Florida closed after reopening for five days after thousands of people break rules to wear a Face Covering and obey social distancing. No one will be allowed to use South Point Park until further notice. More than 7,000 people issued a warning for not wearing a mask. The u. S. Air force honoring healthcare workers fighting on the front lines of the coronavirus pandemic. Two planes from the 9 910th air lift wing flew over parts of ohio yesterday. Today, the geico sky typiers fleet of world war ii planes plan to write messages of appreciation and hope over parts of new york city, new jersey and connecticut. Tomorrow the blue angels set to fly over texas and new orleans. Now, ibm, the company is kicking off their 2020 think digital conference today, being held virtually amid covid19, first time its done this, the company expecting 87,000 virtual atendies attendees. Joining me now is the ceo of ibm arvind krishna. Its great to have you this morning. Thank you for joining us. Wow, when you had your think conference before doing it virtually the numbers were much lower, right. You have many more people attending now that its a virtual event. Yes, thanks, maria, its great to be here. When we used to do it physically we used to maybe get to about 30,000 people, that was the maximum, that was last year in san francisco. And this year as we shifted to digital, we wondered is it going to be more, is it going to be less. Its about peoples appetite for accelerating their transformation, toward hybrid cloud and toward ai and thats whats driving the attendance, the massive registration, people attending virtually and it speaks to the interest of moving towards these technologies. Maria so youve got two news announcements here at think 2020. Youre talking about a. I. For it and Edge Solutions for the 5g era. Were all looking ahead to the 5g era. We understand a. I. Is changing our lives in many different industries. Walk us through these two news events at think 2020. It will be my pleasure to do that, maria. Look, we believe that a. I. Offers tremendous productivity potential. As we look towards moving more and more work remote, theres going to be a need for automation and a. I. Can bring that to bear. If i look a. I. For it, typical estimates are that one hour of outage can cost a business a quarter million dollars. Across the industry, 265 billion of lost productivity due to outages from it. And a. I. System that can go help you triage the problems, not just after the fact but before the fact, get predictive, can really bring a tremendous amount of productivity into the it environment of every company and when you are working remotely. So solving that and getting predictive so the outage never happens at all is what a. I. For it and a product called watson a. I. Ops is going to do and we can see its impact already. We use it internally at ibm and so forth. The other one on edge, as you look at 5g, 5g offers the potential not only much better speeds, much better latency but really new cases of how enterprise it can get used and bringing where you cannot live with latency, where you have to do things, for example, on a shop floor or a hospital or inside an enterprise, but then you get into the question of how do you manage these thousands and tens of thousands of edge it instances and so the edge application manager goes ahead and can manage up to 10,000 end points but worry about security and patching, is the correct application deployed there, does it comply with all the policies an enterprise might have, so it takes away all of the labor where instead of a Single Person supporting 100 applications, you can now support 10,000 appliqueses. Were really super excited on both and our reaction from our clients has been tremendous on both of these. Maria and these are very important tools in the toolbox toward growth. You told the Analyst Community that your priority is returning ibm to growth. That growth is going to come from cloud computing, the red hat deal obviously very important for ibm. You were behind that deal. Lets talk about how you return to growth, arvind. Youve got a fresh set of eyes right now after acquiring red hat in a 34 billion deal. Can you explain to us how you in fact move the needle on growth . Are there plans to invest, expand your investment in the cloud to get ibm higher up on that scale as we see that most companies at this point are 40 to 50 through their cloud migration. Youve got to have ibm in the top five as that migration continues, right . Absolutely, maria. Look, so actually by our computations, as well as by many analysts, the complete world of enterprise and government is only about 20 migrated towards cloud. So the next 80 has to come and thats the opportunity for growth. On a. I. , by the way, i think were only about 4 of the journey in. So that means 96 has to come. So thats why you see us focus obsessively on these two because thats an opportunity for growth. And then you say about investments. Well, the two products we called out are investments. Also, as we look at the momentum with red hat, when red hat came into ibm, they had less than 1,000 clients on a technology called open shift. Were up to 2200 already in the few months since the acquisition closed. Were going to go drive that more and more. And its about helping clients get value on their hybrid cloud journeys with products like open shift on architectures that are based around linux containers which allows them all our clients to unlock the value of innovation coming from open source and being able to tap into that innovation for their own value creation. Thats kind of the beauty of red hat and ibm coming together that we lift it up into the open source innovation that red hat brings but we can couple it with the enterprise capabilities and expertise and knowledge of the industry and the clients that ibm brings to the table and we can see it play out, whether its in telecom with 5g, its in healthcare where we talk about anthem talking about unlocking value to their clients which are healthcare customers and we can see this play out on a global basis, whether in asia, india, korea, whether its in europe or whether its in north america or whether its in bill,. Maria youve got a broad palette of opportunities to grow, whether its geographically, whether its industry specific. Tomorrow marks one month since you took over as ceo of ibm. I think the Analyst Community out there is saying heres a set of fresh eyes, obviously youve been at ibm for so long and started as an engineer, but in the ceo role a fresh set of eyes in terms of moving the needle on growth. The red hat acquisition was a huge step forward. Some analysts are wondering about divestitures, tuckin acquisitions, accelerating the Services Business that you have with stronger products. Let me ask you a couple questions about some of the things that some of the analysts said to me yesterday when i was preparing. Number one is the dividend, arvind. Youve got a dramatic difficult depend of 5 , a lot of people call ibm a dividend stock. When you look at the growth, youve got growth targets. Youre spending so much of that cash flow on the dividend. Is that essential or can you shift spending and put that money elsewhere . So i believe that we actually have enough Financial Flexibility including a secure dividend. The dividend is occupying about a little bit more than half our free cash flow. Its not like its occupying all of it. And that leaves enough flexibility for us to do it. You mentioned acquisitions, you mentioned divestitures, you mentioned investments in services. So we have always said, we are open for acquisitions when they make strategic sense and when the price is right. As i said before, well do acquisitions, but at the right time. In terms of divestitures, we have always pruned our portfolio appropriately, when there are piece thats dont align with the strategy or where they become too commoditized for us to deal with them we have done divestitures and youve seen us do that over the last two, three years, not just over history. Maria is it worth asking the question were going to double down on hybrid cloud services, theres no question about that. Maria is it worth asking the question now that you look at this large 80 bombed in revenue 80 billion in revenue, says in the law of large numbers, as the Company Continues to grow it has to grow at a slower pace . Is a breakup something to consider as you separate consulting, some of those high growth businesses from other slowmoving businesses, arvind . No, maria, our model is so integrated. It really makes sense for our clients and i think that that need is going to accelerate in this crisis that clients are looking for us to solve to Bring Solutions to them, to really solve the puzzle for them. And if you look at our services, theyre often interlinked to our products, if you look at whether its the mainframe or how people do cloud computing. Many times they consume our products but our services help them get them aligned and out to their clients in turn so that is a unique proposition that we bring to the market. That i actually believe is its a unique differentiation for us to bring that capability to our clients and you see us do that time and time again in many of our clients. Maria and that capability on full display this week at think 2020. Best of luck with it, arvind. Great to talk with you this morning. Thanks so much. For nearly 100 years, weve worked to provide you with the financial strength, stability, and online tools you need. And now its no different. Because helping you through this crisis is what were made for. Edward jones is itswell aware of that. Et. Which is why were ready to listen. And ready to help you find opportunity. So. Lets talk. Edward jones. Its time for investing to feel individual. Maria welcome back. Fighting back against the World Health Organization, the Trump Administration is circulating a draft proposal that would give taiwan observer status at the World Health Organization, this is an effort to punish the global body for being, quote, too china centric. This comes as the group is pushing back against statements by secretary of state mike pompeo that there was evidence the coronavirus originated in a wuhan lab, a biochemical lab, they are calling that conversation speculative. Chinese state tv station cctv going a step further, calling pompeos comments, quote, insane and invasive. Joining me right now is pennsylvania congressman, member of the House Foreign Affairs and transportation as well as infrastructure committee, scott perry. Congressman, its good to have you. What do you make of the Chinese State media pushing back on pompeo. Its nothing new. Its an aggressive Propaganda Campaign. We shouldnt be surprised by it, nor should we be fooled by it. Those of us who have watched china for a long time are used to this or folks that think have credibility or have lidity, i want validity, i want to remind everyone this is the commie niecchinese come communi. It is concerned with staying in power and concerned about staying in rule. Within that context we fully expect that kind of response, regarding the accusations that are being made which are wholly founded which are wholly founded based on chinas actions surrounding the coronavirus that emanated from the whe wuhan vir. Maria congressman, this is a regime who jails its people, who had a massive infectious, contagious virus escape from a lab and then totally downplayed it and cornered the market on all the protective equipment that the rest of the world needed and this is the same regime that made its plans very clear. They want to be number one economically. They want to be number one militarily. They track their people and then they give their people a social score at the end of the year to tell them if theyre allowed to take a train or take a plane, depending on how they acted all year. The world should be concerned about this. Somebody needs to stop china from becoming the number one super power in the world. Isnt that right . Thats absolutely correct. The one country that can and must do it is the United States of america. For much too long we have been assisting unwittingly china in this. Maria i agree with you, congressman. We want to talk about getting america back to work as well. Most of the money for the second round of the Paycheck Protection Program is already out the door. We know that. Congressman, what is going to be done to shore up the program and get this economy back where it was once were out of this . Well, the number one thing that we can do and must do, maria, is get back to work. Thats the best prescription. So we watch the program to see how it works, we make small adjustments. We did on the last round. The real answer is to get folks back to work. This is america. We are america. We can work through the problems that we have, while were working. We have a lot of the assistance in place now, whether its distancing, whether its hand washing, those simple tactics, following is really knowledge is really powerful. Certainly the congress and the federal government is going to be there. We also cant just encourage states to just continue to lock down their populations and maria congressman, thank you. That the federal government is going to pay any bill they submit. Thats not tenable either. Maria thanks for your leadership, congressman scott perry. Well be right back. Together, well weather this storm. Sprinting past every leak in our softest, smoothest fabric. Shes confident, protected, her strength respected. Depend. The only thing stronger than us, is you. And mine super soft . Shes confident, protected, her strength respected. With the sleep number 360 smart bed, you can both adjust your comfort with your sleep number setting. 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. Will it help me keep up with him . Yup so ill wake up ready for anything . Oh, weve got your back. So you can really promise better sleep . Not promise. Prove. And now, save up to 400 on select sleep number 360 smart beds. Ends wednesday. Maria more space, more money. One airline will guarantee an empty middle seat for you on your next flight but it will cost you. Frontier airlines is charging for more room seats, starting at 39. 18 of those seats will be available on each flight starting this friday through august 31st. So in other words, dagen mcdowell, heres a little lob to you. I have to pay so i dont get sick. Dagen right. This makes zero sense in terms of marketing. Again, the empty seat next to you, that middle seat, it should be free. This is kind of frontiers Business Model is that they size lower fares but you have to pay extra for, say, baggage, thats both carryon and checked bags, seat selection including food and drink and the like. I think that given the state of all the airlines, theyre going to have to bend over backwards to advertise that youre safe. Again, theyve already mandated, many of them, wearing of masks on flights. But that theyre going to have to start advertising the cleaning of these jets and the fact that the service is going to be better than it was before this pandemic. Maria i dont even understand how airlines cannot space out these seats better. Mattie, do you think other airlines like american and delta are going to follow frontier and charge you for it. No, i dont. But their pricing model is completely different. American and delta have much larger populations and frontier, this is their model. This is how they make their money. So i think its undeniably good that we have diversity in pricing but dagen is totally right here. It is a terrible marketing employ to say ploy to say you have to pay for precautions. My hope is this dictates changes in the entire industry that makes everyone safer and more confident to fly. At the end of the day, thats what the airlines need, they need consumers that want to get on a plane and right now they dont have that. Maria they dont have that and theyre not going to get the intertravel for a long time, mark tepper. I had a good conversation with mark de santis on sunday talking about International Travel. The governor of florida, the president asked him, governor de santis to put together a plan for International Travel. Can you imagine opening up International Travel and taking people from italy, south korea, the epicenters of the coronavirus. Thats not going to happen for a while. When you look at frontier, frontiers in trouble. We already talked about them being low cost, them relying on volume. When you look at frontier compared to the Bigger Airlines like united, delta, a bigger percentage of their flights are also regional. International is going to be banged up. I think regional flights are going to feel the pressure as well. You know, if you can do a drive in four hours or five hours from lets say cleveland to chicago, why even risk taking the flight at that point in time . So i think frontier is going to feel a lot of pressure. Maria i agree with that. Coming up movies in space, tom cruise and elon musks new plans making a buzz this morning. Weve got the morning buzz coming up. Stay with us. Back in a minute. It will do for now. I cant figure out. Who i am. Where im going. Maria welcome back. Good Tuesday Morning, everybody. Thanks so much for joining us. Im Maria Bartiromo. It is tuesday, may 5th. Your top stories right now, 7 3. Markets are higher, futures indicating a triple digit gain as more states are allowing businesses to reopen their doors. The dow industrials up 250 points right now, 1 . The s p is up 30 points and the nasdaq higher by 104 points, all the major indices up better than 1 this morning. After markets erased early losses yesterday as more states announced reopening plans at the close, at 4 00 on wall street, the dow was up 26, nasdaq was up 105 and s p was up 12 points. Global markets taking a cue from wall street and trading higher this morning. European indices are up across the board. The dax in germany the best performer, up 142 points right now, 1 and a third percent. The president of German Central Bank is warning a quick economic bounceback in europe, however, is unlikely. Asian markets were mostly closed overnight. Markets in japan, china and south korea closed for a holiday. In hong kong there were gains. The government there announced some businesses can reopen later this week. They include gyms, beauty parlors, movie theaters. The hang seng index overnight up better than 1 . A fifth consecutive rise for the price of oil, take a look at oil markets this morning as we see a gain of 2. 03 a barrel, thats up 10 on crude oil at 22. 42 a barrel. President trumps pick for the nations top intelligence official expected to be grilled by democrats in a confirmation hearing today. That would be congressman john ratcliffe. Cheryl casone with details. Cheryl. Cheryl maria, this is going to be the first Major Senate Hearing by the way since the start of the covid19 lockdown. President trump no nominated Jon Ratcliffe to serve as director of National Intelligence back in february. The texas representative was on the short list for the job last summer but withdrew his name after Harsh Criticism from democrats over his lack of experience. Ratcliffe is expected to face a tough confirmation battle. Well, Rory Mick Elroy and Dustin Johnson will te tee off in a Charity Match to raise money for covid19 charity relief. They will take on Rickey Fowler and matthew wolf at Seminole Golf Club in florida in less than two weeks, the first match televised from seminole and the first live golf event since the start of the pandemic. Heres a look at whats trending this morning. Deal to sell Victoria Secret is called off. Sick morsycamore sued to get oue deal last month as the virus caused the chain to close its doors. Now bath and body work is a pure play public company. A new Star Wars Film will be directed by takai watidi. The announcement made on the same day as the franchises unofficial holiday, may the fourth. Mexican chains are offering discounts on food or in my neighborhood just margaritas to go which seems to be the new hot thing in manhattan. [ laughter ] maria that works. Thank you, cheryl. [ laughter ] maria we want to turn now to the rebirth of our economy, investing in our cities. We know that covid19 may very well impact big cities. Today we are looking at a staple of the rust belt, cleveland, ohio, efforts being made to restore the city to the past glory. The Cleveland Foundation is at the center of the effort. The movement became the First Community foundation, the mission, to enhance the lives of all cleveland residents by working with donors to create community endowment. The foundation ended 2018 with 2. 3 billion in assets. The Cleveland Foundation teamed up with mount Sinai Healthcare Foundation and 70 other partners to create the greater covid19 Rapid Relief Fund. The fund has made grants to 65 organizations across three counties. Joining me now is the Cleveland Foundation Program Director for health and Human Services, dan england and the Vice President for strategy at the Mount Sinai Health foundation, daniel cohn. Thank you for joining us. Let me kick it off with you, dailydale, in terms of what aree key things the foundation is doing to help cleveland during this time. Give us the sense from mount sinais perspective. Sure thing. Well, thank you so much for the leadership of the Cleveland Foundation to our incredible partners across the city. We launched the Greater Cleveland rap it Response Fund which is focused on meeting basic human needs for people that are most at risk for the health risk from the pandemic as well as the economic fallout from the pandemic. Maria dale, let me turn to you. Walk us through this effort. We know, dan, mount sinai distributed 130 million in the initial 22 years of grant making. Why did you choose this area, the greater covid19 Rapid Relief Fund and cleveland, because you know that we are seeing a real big impact from covid19 on so many big cities. So tell us about cleveland in particular. Absolutely. Well, as you know, theres been a long history of incredible suffering in the city of cleveland but theres also an incredible story of resiliency here. The role of philanthropy always has been to sort of operate in the margins when people are in dire need and when the Nonprofit Sector fills a particular role, frankly a role thats created from government and market failures, theres real need to meet people where they are and it just so happens in this particular moment theres a need for food and shelter, certainly for personal protective equipment, those ppe you hear so much about and those are most desperately felt among certain at risk populations, older adults, people with critical and chronic disease, pregnant women, those are the constellation of folks who are most at risk for the Health Impacts of covid19 and also groups that are historically vulnerable and made more vulnerable because of the economic fallout, those are low income people, people of color, people of disabilities. Thats the role of philanthropy is to fill a void where the void exists and thats what were hoping to do with the fund. Maria dan, you know, even before covid19, cities were seeing some pressure because of policies or because of homelessness worsening. So this covid19 pandemic just added to it. Tell me whats in the toolbox in terms of coming out of this and ensuring that the community has what it needs during the worst of times, given the fact that the covid19 pandemic has just added to the anxieties. Absolutely. Well, first, you know, cleveland was doing quite well, on a bit of an economic rise here for the past few years which has been really important, an important story in the citys trajectory. You know, one of the challenges is that cities like cleveland are likely to be first hardest hit and will experience the fallout ongoingly. As it pertains to our rebuilding and our recovery, we are looking not necessarily to supplant Government Support but find out where we can collaborate and complement what our partners are bringing to bear and understand where our philanthropic dollars can make the most important impact to help a nonprofit thrive, get to the next phase in the life cycle or to even innovate and create new types of collaboration ongoingly, i think that the philanthropic sector in particular is going to engage in a new tradition or renewed tradition of collaboration where 70 or 80 of us have gotten together in short order. This fund, for example, was launched just four days after we had our first case of covid19 here in the state of ohio. So theres a lot of phone calls and a lot of emails over a weekend and monday morning we set up shop and i think that type of rapid getting together, breaking down boundaries, breaking down ego and working together toward a common goal is where the future certainly of philanthropy is looking as well as the future of our Nonprofit Sector. Maria yeah, its a great point. Let me get dales perspective on this. What i was saying to dan a moment ago i that big cities were under pressure even before covid19 and we know the people are worried about density, worried about big crowds. So the Cleveland Foundation program has really addressed that, dale. Give us your sense when you talk to young people, the health and Human Services part of this in terms of what can be done to help cleveland have this rebirth once were out of this. Thank you very much for having us today. You know, cleveland as dan said was on an upward trajectory over the last couple years. When you talk to young people today actually even through covid, a lot of our Youth Programs have been working with the young people virtually. Theyve been helping lead the broadcast and what were trying to do is make sure young people are not isolated, that they understand people are here for them. Our School Districts and youth providers are working together to think through the summer and how we can reach young people in multiple ways with social distancing, whatever the governor requires us to do. We were on a call yesterday with youth providers and they came up with a wonderful idea of having young people make their own masks out of superhero costumes and things like that. Maria i love that. So were trying to make sure everybodys involved and help create how we go forward. Maria dale, how much do you want to see the corporate sector step up here . Because you know, for one thing, jp morgan has been incredible in terms of investing in troubled cities, over a long period of time, this is nothing new for that company because theyve been doing it consistently. Do you want to see more corporates get involved and step up to try to invest in cleveland and what would be the incentive to do so . You know, i will just thank the Corporate Community in cleveland. They have been a big supporter of our covid rapid Response Fund. Almost all of the banks are in, a number of the other corporations are in, a number of Family Foundations where theyre the heads of the Family Foundations are in the corporate sector, theyve all be in and theyve come in in a huge way, some of them in huge ways. I would want them to continue to do that. This is one of the first time i think youve had private philanthropy, Community Foundations and corporate stepping up together toward one end and we would hope we would be able to continue to do that as we think about what does recovery look like, what does managing through the pandemic look like. We want to keep doing what theyre already doing. Also our Greater Cleveland partnership has been an incredible partner with us, helping our nonprofits learn how to access federal dollars. Theyve done a good job already. We just want to keep them involved. Maria they sure have. And we are all looking forward to the recovery and the rye birth. Rebirth. Thank you both. Investing in our cities is certainly a priority. Thank you. Well be right back. Thank you so much. Our Retirement Plan with voya gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. Maria welcome back. From new york to los angeles to kansas city, cancel rent is a new rallying cry taking hold across the country as tenants say they cannot or will not pay the rent. With unemployment soaring, housing activists are also pushing for federal action to freeze all rent and mortgage payments during the coronavirus crisis. But withholding rent has dire consequences for landlords. Joining us now is the ceo of International Capital group. Thank you so much for joining us. Tell us about your perspective here and about the impact on landlords. Thank you, maria. Its a pleasure to be on the show. There is a cascade effect that if you dont pay rent, needless to say the landlords cant pay the mortgage, the property taxes, repairs on the property, and so it goes down the chain and can cause a lot of damage. Maria so how Many Americans do you expect, do you estimate skipped their may rent payment . Well, we did get numbers for the month, for the month of april, and that was close to 100 . So its a little bit hard to say what is going on in may because its only the beginning but so far the numbers are very high and i can i think i can even say why. Maria why . Maria you said you wanted to say why. The Unemployment Benefits are supplemented by the federal government to the tune of 600 a week. Thats 2,500 a month, because a month is a little more than four weeks. In addition to the regular unemployment. In most of the country, except for the coasts, thats enough to make pretty much as much as you did before. In fact, many businesses trying to get back online now are calling employees and they dont want to come back to work, saying we make more not working than if we go back to work, because the Unemployment Benefits are so good. So in most of the country, most people should be able to pay rent. Maria yeah. You make a really important point, actually. Were going to be speaking with the labor secretary coming up in the program, Eugene Scalia. Im going to quote what you just said, people are making more money to stay home than getting back to work and this is having dire consequences. Thank you for breaking it down for us. Good to see you this morning, well keep watching. Dont miss fox business America Works together virtual town hall, it happens on thursday and it features ken langone and bernie marcus. If youre a Small Business owner, send in on your questions on anything from loans, to paying rent to layoffs, message fox business on instagram or facebook. You dont want to miss this thursday at 1 00 p. M. With neil cavuto. Stay with us. Le time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income from an annuity as part of your Retirement Plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. 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. Time for the morning buzz. Tiger king fans, theres more. Nicholas cage is reportedly set to play the jailed oklahoma zoo keeper in an eight part series for cbs. Nick cage will help executive produce the program which will chronicle joe exotic and his quest to keep his goo a zoo t all costs. Dagen mcdowell, your reaction. Dagen nick cage, brew this up, ill drink it for breakfast, lunch and dinner. Ill hope hes like from raising arizona instead of from con air with the worst accept ever. Anyway, i love nick cage. Maria i finally watched that show on your recommendation. Yeah i know, hes good. How about this, the nfl feeling optimistic about the upcoming season. The league released the schedule thursday night during a three hour telecast on the nfl network. Opening day is september 10th. Mark, your reaction. Give us sports, please. Ive already binge watched everything including the tiger king. Ive got nothing left. So we need sports back. Looks like games are going to be played in home stadiums but with social distancing in place. Im a Cleveland Browns fan. According to the browns youre looking at even if youre with your family, theres going to be three empty seats between you. Regardless, when theres nothing else to do, every sunday is going to be super bowl sunday for these teams from a commercial revenue standpoint. So now the next step, give us baseball on june 1st. Dagen coming back in less than two weeks. Maria its going to be different. Its going to be different but well see. How about this, elon musk and tom cruise are teaming up, get this, they have musk spacex and the actor reportedly in talks with nasa to shoot the first ever feature film in space. The action adventure film using a spacex ship, spacex and nasa have not commented on this project. Mattie, your reaction . Wow. Is anyone surprised that tom cruise is game for this . This is the guy who did a halo jump for the last Mission Impossible movie. I think if anyone is able to do it, its tom cruise. I want to see what crew picks it up, what movie studio is able to produce it. Can you imagine trying to light a scene in space, thats the real impressive takeoff way here. Maria where are they going to stay . Theres so many questions. I like that story. Thats a good one. Still ahead, labor secretary Eugene Scalia is here to talk about the jobs report, the latest on the Paycheck Protection Program, where are we on the economy now, its all here next hour, mornings with maria. Stay with us. Night moves. Night moves. Night moves. Maria welcome back. Good Tuesday Morning thanks for joining us. I am Maria Bartiromo. Tuesday, may 5 in our top stories 8 15 a. M. On the boon on the east coast, getting america back to work, california is now allowing some retailers to start opening this week, as it tournz federal government for help paying Unemployment Benefits. A new report is warning as restrictions ease the death toll could surge in moments u. S. Labor secretary Eugene Scalia here what if any changes we could see to paycheck he Protection Program look to fridays jobs report for april, controversy on to origination of the coronavirus pushes back on notion it did originate flab in wuman markets are rallying futures indicating a tripledigit gain startle of trading this morning with, dow industrials right now up 260 points, the s p 500 up 31, nasdaq up 110, all major indices up better than 1 on the session, markets erased losses yesterday states announced reopening yesterday at close dow up 26 points, nasdaq up 105, s p up 124 00 on wall street he earnings season rolling on dupont out with a double beat on earnings and coronavirus helped businesses he electronics Water Filtration a gain better than 2 , Marathon Petroleum 12. 4billiondollar hit as fuel demand plummeted up 4 2 3 after the bell investors turn to disney as theme parks remain closed live sports on hold, most movie theatres empty a toll on business golds gym latest to file for bankruptcy protection hert reportedly prepare to file bankruptcy streak ins costco major chains limit purse mornings with maria is live right now. Global markets this morning a cue from wall street european indices higher ft 100 up 28 cac quarante up 27 dax in germany 166. A Top German Court giving Union Central bank three ultimate to fix Quantitative Easing Program in asia overnight markets in japan china south korea closed for holidays, in hong buying gains as you see government announced some businesses can reopen this week, gyms beauty parlors movie theatres henning up better than 1 in Hong Kong Oil prices up for a fifth session 22. 48 a barrel that is up 209, 10 and a quarter percent hire on price of oil joining the conversation a degree dag mark, Mattie Duppler great to see everybody what a jam smoaked. Dagen media maria good morning. Some top stories this morning officials are warning of a possible surge in coronavirus cases, as states begin to reopen economies, the university of washington, institute for Health Metrics evaluation projecting u. S. Death toll would reach 135,000 by august. That is double the initial projections, as states relax social distancing rules. In internal document from fema is claiming by end this have month, there will be 200,000 new cases and 3,000 deaths every day that is a significant jump from current numbers roughly 25,000 new cases 1700 deaths each day. White house, this morning shooting down that report saying that it did not come from the administration, and has not been predicate to the Coronavirus Task force, President Trump is getting out of the white house today for the first time in a while to phoenix, arizona to tour a Honeywell Aerospace plant making masks. Food and Drug Administration cracking down on covered 19 and bodies tests may not work making kits to provide evidence of accuracy incentivize within 10 days tests can tell whether a person has gone been exposed to coronavirus. Fda approved Antibody Test by Roche Holdings i spoke with the ceo yesterday. What we are seeing with test is really extraordinary, it is reliability, sensitivity of one hundred percent, 99. 8 this is really fabulous results. Maria roche plans to make millions tests this month 100 million a month by end of the year from roche, apple and google banning Location Tracking yavpz that use a coronavirus Contact Tracing system move to help protect privacy prevent governments from compiling data on since, they are arguing not allowing use of gps location data will cause to miss encounters not adequately track. When you thought 2020 could not get worse murder hornets in United States for the first time asian giant hoshet has potential to devastate the declining Bee Population two inches long, they are Worlds Largest hornet a sting could kill humans if stunning multiple times the murder hornets spotted in Washington State in december. Now jobs in america we are just days away from what is anticipated to be an unprecedented april jobs report, the u. S. Economy he projecting to lose nearly 2 2348 jobs Unemployment Rate hitting 16 highest on record the report will capture full impact of the lockdown that began in mid march to talk about that u. S. Labor secretary, Eugene Scalia, mr. Secretary, great to have you this morning thanks so much for being here. My pleasure good to be back with you yes, it will be an important interesting report that we put out on friday. How should we be looking at reports secretary . Because i know that right now we are in a moment in time, that hopefully will go away. At some point, but we are in a moment in time where we are seeing a very sharp steep contraction for the a Second Quarter could be as high as 30 , unemployment numbers continuing to rise we see every week with benefits should we just ignore these numbers and think well those jobs will come back . Should we be looking at those numbers saying well we are falling further into recession when could get worse . How do you read these numbers. I think you put your finger on a really important issue how to view these we have to recognize that these reports reflect millions tens of millions of americans out of work right now, that is difficult it is painful the president has done all he can continues to do all the he can, to try to address that. At the same time, as you are suggesting, we got to this point by a completely different route in an past economic downturns not fundamental undering weak northeast Public Health measures ares gradually being lists gives me reason for confidence in rebound different than what weve seen in the past. Maria yet, some companies will not be able to get to that rebound we are looking at a list that is growing, of bankruptcies,r hertz about to go bankrupt golds gym going bankrupt j. Crew a number of companies will not be abling to make it out of this period what about that will those Companies Come back will jobs come back once things normalize again . Well, i think that president and congress have taken measures to try to keep those jobs in place we have talked before about Paycheck Protection Program, the value that has from my perspective at Labor Department. In keeping businesses afloat, but also keeping workers tied to the business so as we reopen as doing now, those workers have a job, businesses have workers that they are going to be some challenged others doing great things, by the way, i am joining the president today on trip to arizona honeywell facility make m59 masks n59 masks part of great story have you earn business coming to help American People as we try to pull through this problem. I love that story, i am thrilled that you are going to be with the president at honeywell you look at honeywell make masks General Motors making ventilators businesses has truly stopped up very nice to see but i want to get back to ppp Paycheck Protection Program, because there are some expectations out there that you will loosen the rules, we talked before about 75 25, 75 loan has to go right out the window to employees, so that the employees get compensated, leaving 25 of that loan to pay for things rent and business expenses, a lot of businesses i have spoken with feel that is too tight too stringent they have to pay i have talked about restaurants they are not going to be able to stay open, they are going to probably go bankrupt yesterday i heard from a friend also a designer a trailer said retail accounts using grants for stock not staff, they will we shocked that there is no forgiveness because makes no sense to them to use so much for staff unless they have something to sell. So you know there will be many disappointed folks not understanding 57 payroll will you move to loosen rules. Paycheck Protection Program has been extraordinary success maria as weve discussed before, i think greatest challenge has been popularity first round of funding 1. 6 million businesses get loans late of the round 2. 2 u. S. Businesses going to be loans says to me weve got smaller businesses, are doing a better job take advantage of the program, and getting that the funding helps keep workers on pieroll that said this program, was designed as a Paycheck Protection Program it is it was meant to help workers in substantial part wont be all things to all people. The treasury the fed have other programs, that are also available to help Small Businesses i know that secretary mnuchin, will continue to evaluate the program and operate it as best they can, but keeping workers on payroll was fundamental goal of that program. Maria how about the 8week period . You can get loan forgiven 238 weeks will you loosen that give more time so businesses can have an opportunity to open . A lot of these businesses are getting loans still in shutdown. Well, but were reopening now, arizona, i will be going with the president today in process reopening a majority of stieates are doing that there are limits congress put on the program 8 weeks is one of them. But i think again that program is doing wonderful things for tens of millions across the country. So you are saying no changes to the program . Well what i am saying is it is working extraordinarily well as well that secretary mnuchin and administrator continue to take a look at it make sure working agency intended. Let me ask you about the states and possibly for another relief package i spoke with mayor de blasio said new york city needs 7 1 2 billion dollars right now made whole losses that they encountered because of coronavirus what would you like to see in another relief package as relates to states and cities . You know, i think what were focused on at Labor Department primarily right now cares acting, Coronavirus Response act, and also protecting workers in the work palace through Occupational Health Administration Safety guidelines make sure Companies Keep their workers safe i know there is talk, about a potential future legislation do i think that we have to proceed carefully there weve now, spent a great deal of money, to keep this businesses,intact to keep workers supported and as we look forward to potential new legislation, i think we need to proceed kairl in terms of spending and potential new mandates one of the reasons an extraordinary flushing economy until weeks ago this president was committed to tax cuts, was heh was committed to reducing unneeded regulatory burdens i think those remain very important as people talk about new legislation we need to keep our eye on that. Maria quick going into fridays report is there anything you can say to us to son of the blow . We are expecting a severe reportedly come friday for month of april on jobs. What i can say is that we had an extraordinary unprecedented economy weeks ago. We lost that economy, because of Public Health measures, if we pursue the policies the president had in place that gave that you say economy i truly believe we can get back, recognizing, that the reports we are seeing right now that unemployment are difficult. Maria all right. We leave it there secretary jeanne scalia good to see you this morning. Thank you, sir we will be watching your trip to honeywell and arizona with the president thank you so much a lot more to talk about West Virginia senator on the senate back in session, Capital Management founder carl bass here on markets and china ceo of 1800 flowers, on flower sales ahead of mothers day sunday dont mays moment of it well be right back. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Sprinting past every leak in our softest, smoothest fabric. Shes confident, protected, her strength respected. Depend. The only thing stronger than us, is you. Sheyour tractor canotected, hchange with it. Anges. When its hot. Stay cool. When its cold. Stay warm. When youre hungry. Plant a vegetable garden. When theres a lot to do. Do it all. And do it right. With power. With versatile performance matched attachments. Without breaking a sweat. Comfortable. Ready for anything. The new kubota lx series. First time since march 5 got back yesterday mitch mcconnell, construct Chuck Schumer immediately clashed over confirming more judges filling vacancies the safety of return. We are going to show up to work like essential works that we are bosses are American People counting on us to keep on serving. If we are going to make these fine people come into work in these conditions, let the senate at least conduct a nations business, and focus like a laser, on covid19. Maria battle brewing shielding companies from liability during this pandemic, Senate Republicans say think will not support democrats call for further state and local aid without Liability Protection for companies. Joining me right now West Virginia senator Senate Commerce Science Transportation Committee Member Senate Appropriations Committee member, senator good to see you. Thanks so much for joining us. Thanks, maria. Maria it is embarrassing that we are in middle of a pandemic the first fining that happened was two guys clash on what should be the roll of what you guys are doing, hows it going on day two back at work . You know seriously, it is a bit embarrassing weve got great precautions here at u. S. Senate all bhaefshgs wear outside our office no staff very few staff here we have been, brought in one at a time all those kinds of things, weve got a lot of things to do here i mean tomorrow we are going to be hearing about the Aviation Industry and impacts of the coronavirus on that, certainly with news that we have seen recently huge impacts on aviation, my own airport has nobody come through tsa a week ago friday, so you know i think weve got lots to do here weve got, other bills that are moving forward, nominations. Con maufitigating of john ratcliffe. Treasury dent abnormaling in Second Quarter for Coronavirus Relief measures when does this come back to bite now our debt 22 trillion dollars or 23 trillion dollars is higher than actual size of the economy . I think that is a great concern for as you of us another reason for us to be back, so that we can assess the impact of the care package other that issues we put forward to try to help, to see where there is more help that may be needed we are also now that people are beginning to go back to work, the economy can begin to slowly pick up we need to i think assess just not keep throwing money at a problem that we know exists but were not sure it is solving the problem i think that i think that is good time for us to be in our in our jobs looking at the program, making those judgments, and getting good testimony at the same time. We know your colleagues on the other side of the house are not coming become because pelosi said they are not coming back, Kevin Mccarthy out with this Program Three phased plan to get congress back we dont see anybody on house side, will you walk us through this issue of liability, Liability Protection is a key issue. If somebody goes back to work, and all these restaurants start opening that person gets sick, who is liable . I think this is a source of great concern for restaurants in marker nursing homesteads health care facilities, you know i mean, it is going to happen as we a gradually open somebody is going to be infected one way or the other, is it through fault of the business . No, i think just because the spread is still there, we know it is still going to be there, and i think weve got to get Liability Protection forward it is a necessity. For private fatalities and facilities we will see you soon thank you so much back in a minute. 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. Welcome back now this, meat rationing hitting markets across the country Grady Trimble live in chicago with details good morning grade ai. Reporter good morning costco known for letting customers buy in bulk limiting how much meat xhuz can buy other chains are doing the same thing, we were at a kroger owned payless store yesterday in indiana limit to go two or three packs per customer experts say supply farmers providing meat plenty demand but a bottleneck at Processing Plants part of the reason the cdc says at least 4900 Processing Plant employees have contracted coronavirus forcing many plants to close kroger tells us there is plenty of protein in the chain some processors are experiencing challenges usda data does indicate there is a decline in Meat Processing so some stores are already thinking about the possibility of shortages some consumers worried about that plying too much that is why they placed limits in place, but some deserts tell us maria, that different grocers use different suppliers if you see a shortage at one store out at one store you might be able go to a different store right down the road and find Meat Products there maria. Maria all right. Thank you. We will keep watching this this is important grady, Grady Trimble in chicago, coming up heymann Capital Management founder with me to talk markets and misinformation from china, all right here next. This week on mornings with maria tomorrow, with coronavirus fears gripping the global dr. Mik answers questions from every day americans like you. Thursday as stock market volatility persists we are following your money mohamed he will ar elerian is here right here on mornings with maria. Can my side be firm . And mine super soft . With the sleep number 360 smart bed, it can. With your sleep number setting. Can it help keep me asleep . Yes, it senses your movements and automatically adjusts to keep you both comfortable. And now, save up to 400 on select sleep number 360 smart beds. Ends wednesday. Confident Financial Plans, calming Financial Plans, complete Financial Plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Maria welcome back, good Tuesday Morning everyone thanks so much for joining us. Im Maria Bartiromo tuesday, may 5 fwlour top stories w8 am on the button east coast markets higher this morning, fighters indicating a tripledigit gain start of trading this morning, agency more states allow businesses to reopen their doors, dow industrials at highest morning up 311 points, nasdaq up 121, s p right now up 37. Global markets higher european indices higher a Top German Court giving European Central bank three month ultimatum to fix qe kwef program about cac quarante up 90 dax up 205. In asia overnight markets in japan china south korea closed for holidays, however in hong kong, rally underway government announced some businesses can reopen later this week including gyms beauty parlors movie theatres hang seng up 1 at close oil prices up this morning for a fifth session in a row take a look at oil 22. 98 a barrel gain of 2. 59 a barrel up 13 right now at any price of crude oil pharmaceutical giant pfizer gibbs human testing of Coronavirus Vaccine, Cheryl Casone with details. Cheryl chshl look at pfizer a boost premarket trading based on news, there is a stock up more than one and a half Percent Company says human trials of a possible Coronavirus Vaccine are underway working with German Pharmaceutical Company could be ready for emergency use by september depending on results of tests if they go well. We will follow it. U. S. Military has awarded 29 purple are hearts to members wounded in attack brain injuries during january attack alassad air base, sixsold received in iraq kuwait sunday and monday maintained a safe social distancingt to stop spread of coronavirus get rewarding, 23 expected given out this week 110 u. S. Service members diagnosed after that attack. A look what is trending this morning, on fox business, ftc crowdfunding rules due to coronavirus disruption, headlines intel buys move it for 900 billion dollars to boost bet on robotic cars weworks cofounder, suing softbank over failed tender offer, headlines, back to you. Maria thank you, cheryl we are talking about china this morning fighting back against the World Health Organization as well the Trump Administration circulating a draft proposal, that would give taiwan observer status at World Health Organization this is an effort to punish global body for being quote too chinacentric, also make things more fair for taiwan. This coming as u. N. Group is pushing back against statements by secretary of state mike pompeo that there was testified coronavirus started in a wuhan lab calling it speculative cctv calling pompeos comments insane evasive, joining me hayman Capital Management founder kyle bass thank you for being here. Good morning glad to be here. More Disinformation Campaign out of china you see what state tv said i ridiculous to say evasive or insane when we know the facts and we know that the people that they said that were at open market were never at open market to have been impacted virology latch a few myself away from origin sight it is clear it did come from the wuhan lab. Look it is so easy to see in my view, that china cdc is across the street from that wet market, the level four selfproclaimed level four Wuhan Virology Lab 20 miles north when it came from one or other it is clear chinese fumbled the football in their end zone i dont believe nor does our government believe it was lets say intentionally released but fineas action post fumbling of virus assault on global transparency if you notice who, dr. , the rep in china has been very critical of chinas handling the who denied that to participate in the investigation to determine origin of the virus china Propaganda Campaign is on tilt at the moment. We know Chinese Communist party downplayed this disease and while downplaying it will dhoernd the market for all of the he o protective equipment the world would need face masks goggles surgical gloves oxygen therapy i have talked about this over a month ive got data from Chinese National customs at the same time this gets me i want your take on this at the same time we know how much intellectual property theft that has gone on, they are stealing from us right now, in terms of science they want to get a vaccine on covid19 before United States, because they think that ends the Case Economic superiority i spoke with senators tom cotton, and ted cruz about the tejs threat fda commissioner hahn also about medical information from china for potential vaccine take a listen to this i got to get your reaction. What i can assure the American People that we will look at all data and science it is our job to make sure, that that at a data and science show us that a vaccine in this particular case, is safe, and effective. In middle of a pandemic what is most valuable intellectual property in the world . It is the Research Great laboratories life scenes companies are doing, prophylactic drugs i have little doubt they are actively trying to steal American Intellectual property as relates to the virus they unleashed on the world. Meeting with leaders of pacific demand they were saying military threat from china is enormous one of the reasons is that they steal our military technology so they dont have r and d cost just steal what we invent flooding hundreds of millions into building up military it is dangerous weve got to treat them like that either they are. Your reaction ted cruz talking about theft of military information, youve got tom cotton talking about theft of science and medical data, right now, as we speak. I it is known maria chinese have stolen our aegis defense in Naval Defense system clear they are doing all this let me go back to one thing you said i think is vitally important an author of unrestricted airfare retired from Pla Air Force in south China Morning post this morning general kow talking when china should take taiwan by military force today, and that is part of as you know, the chinas first islands plan with taiwan, and hong kong rolled back in to Mainland China it is important to know that chinas economic superiority is what we agreed that it is, ie they claim to be 15 global gdp maria but less than 9 10 of one percent global settle in their countries as soon as we a military National Intelligence edifice, and administration realize that we hold all the cards general kow said in keys south china post this morning would it cause a fatal economic blow to china if dollars stopped moving to china they have to use dollars to buy everything around the world lets just say dollars they dont have many dollars maria. If we dont send them dollars, through our through our Market Indices msci everything with tsp we are feeding the tumor ie u. S. Dollars feeding the Chinese Communist party tumor once we realize that we are going to change the game on them. You have been spoton on this i want to talk about this because i have been talking about the thrift fund now for a year. Youve got the thrift fund 500 billion dollars, this is a fund of 401 k money were the retirement of military past and present the goal to take 10 of that, 50 billion dollars, put it in msci next the problem is ne msci indices loaded Chinese Companies many building weaponry they are planning to use against whoever including United States President Trump is hearing the calls, president just last week said that he is considering banning investments of any money from the thrifts savings plan into Chinese Companies, this Retirement Savings fund for Civil Servants into Chinese Companies result offed china actions amid coronavirus pandemic what do you say to this kyle . I have a list of companies within msci index, one tracking uighurs more than a million locked up in camps in china creating weaponry for the military. As you know, ave. C. Is in that index, part of the military arm in china, china ship building builds war ships for china i think this is a stopgap, i agree that thrift saves plan should not send uask dollars to invest in Chinese Companies but there is a much greater fix here very easy to do. Right now, Chinese Companies and any other Global Companies that raise money in the u. S. Whether rentals or listed here raising u. S. Dollars gichlths dollars invested in them we gave them a pass they dont have to adhere to u. S. Securities laws, ie they dont have to submit themselves to covered audits as defined by u. S. Public accounting Oversight Board pcob important to note a oneoff i know 500billiondollar oneoff, but what is most important u. S. Money, should not be investing in companies that dont submit themselves to u. S. Law. It is much greater than the thrifty savings plan i agree savings plan should not enable Chinese Military it is larger than that other retiree money in u. S. Pension funds, individual investors, they apply stocks like alibaba, that dont submit themselves to u. S. Covered audits chinese securities regulators frequently go to congress and senate to lobby our congress and senators to explain why they should not have to adhere to our standards the way we are going against china plain and simply we need innovative our laws level the Playing Field we dont need oneoff if trade is free trade china wins if trade is fair trade u. S. Wins we just need to make it fair. I dont get rules i asked jay clayton chairman Securities Securities why Chinese Companies on Nasdaq New York Stock Exchange are able to skirt, all of our accounting laws do investors understand that this is in very important point you are making we will keep following it, the administration, obviously, has changed the conversation around china, increasingly people are getting it kyle you have been there from getgo we appreciate your insights on all of this, thank you. See you maria. We will see you soon kyle bass joining us a lot more right here markets up triple digit gains stay with us. Maria welcome back President Trump just tweeted on oil prices here is what the president said Oil Prices Moving nicely as demand begins again, writes the president in fact we are looking at another tripledigit move for the price of oil this morning, up 13 , 23. 07 on crude, gotten forget memo mothers day sunday will look different social distancing in effect, brunches issue out sending flowers is always in, still the goto for Many Americans is 1800 flowers. Com joining me right now 1800 flowers. Com Ceo Chris Mccann thank you for being here. Thanks for having me maria. Maria what are you expecting in terms of mothers day demands. I think a special time of the year going to be distant this year first thing to send out a special shoutout special recognition for all moms who really put their lives on hold for past several weeks volunteered to be on front lines every battle that we are facing. We just hope in our heart that they get to spend a little relaxation get a peaceful holiday this year, so as we look at business we are expecting demand to be strong Consumer Sentiment is strong expecting demand to be there for this holiday. And youve expanded your offerings gourmet food gift baskets how much growth at 1800 flowers is now coming from things like to as opposed to flowers . It has been a great suffrage we have emdiversifying like we have in addition to family brands cookies, berries what we saw we gave report last week q3, 27 growth in gourmet food category that quarter impacted by a couple weeks of extraordinary demand weve been seeing, in our gourmet food ecommerce divisions since crisis hit people forced into level of isolation we reach out to express ourselves connect more and more. Maria could tell me semthings you have done in terms of changes to make sure to keep your people safe, safe for customers as well people worry about getting mail a delivery then workers how are you making sure workers customers stay safe in the middle this have pandemic. Everything that we have done with health and safety about associates, customers first and foremost that is paramount one thing early changing o we organized preparedness Response Teams managed to make sure we are doing Everything Possible to protect both he customers and, of course, associates, social distancing guidelines that we have been following from cdc other organizations, make sure we are providing ppe equipment when we can and where we can as it became more and more obvious that was important for us. So making sure that sanitizing, contact, delivers just running gamut constantly adjusting make changes as we learn more about how to do so. Maria okay, we will leave it there happy he mothers day to you we will be watching thank you so much, sir have a good day. Well be right back. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, youll only have to pay for the data you need saving you up to 400 a year. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. Its the most reliable wireless network. And it could save you hundreds. Xfinity mobile. Maria welcome back. Corona versus college. Students around the world are dealing with the new normal this morning, and these last several weeks, with High School Seniors deciding on plans for september. Many are debating where to put college and whether to put it on hold. Gerri willis is covering the story now. Gerri, good morning to you. Gerri good morning, maria. Thats right. Taking a gap year, thats what many Prospective College freshmen are considering as the covid19 pandemic threatens student health. Listen. So its definitely disappointing and just caused great anxiety and stress, not knowing if i could attend in class in the fall. She worked so hard for so many years to achieve. Gerri accepted as a freshman at nc state and her mom, and they arent alone. Experts tell fox business that 25 of College Freshmen may opt to stay home. That would be 725,000 students compared to a typical 40,000 that take a gap year. And the experience different, too. No way to tour europe during a pandemic. Olivia plans to work. All of this as decision day, june 1st this year, looming with College Administrators watching for record summer melt, their term for shrinking class sizes. Admissions offices are going to be working overtime to stay in touch with students, asking questions about if we were to take you off the wait list, do you think you would come and be willing to engage quite directly. Colleges and universities right now, many of them are saying listen, we are going to continue to recruit students throughout the summertime because likely we are going to see a dip in our student population. Gerri thats good news for students that didnt get into their first choice schools, but for others like olivia, taking a gap year makes the most sense. After making that decision, i felt like i think were in the drivers seat. We just have to say we need to step back for awhile and reassess, reevaluate. Too many variables are in play here. Gerri this years gap experience likely to be very different from the boozy europe tours that you have heard so much about. In fact, most students will try to land jobs and earn money. Maria . Maria wow. Really different time, gerri. Thanks so much. Every Financial Plan needs a cfp® professional confident Financial Plans, calming Financial Plans, complete Financial Plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Maria my thanks to this allstar panel. Have a great day, everybody. Varney Company Begins right now. Stu, take it away. Stuart good morning, maria. Good morning, everyone. Let there be no doubt the country is opening up. Okay, not everywhere yet but the trend is obvious. More and more states are telling stores, restaurants, barber shops, salons and a whole raft of businesses yes, you can open if you stick to the face mask and social distancing rules. And there are loud demonstrations in places where the draconian lockdown continues. Protest in boston yesterday. People and businesses are restless. Just wait until the memorial day weekend. The president is breaking out of the beltway, going to arizona to