Transcripts For FBC Varney Company 20240713

Inspect a face mask production facility. Its a clear signal hes out and about for the first time in weeks. The markets like this. The opening up, that is. Look first at the price of oil. Th 23 a barrel. Thats because production has dropped sharply, limited supply and the likelihood of a pickup in demand as more businesses open up. The president just tweeting on that literally moments ago. Here it is. Oil prices moving up nicely as demand begins again. Thats the backtowork movement evident in the oil market. Stocks, they are going up, too. Reopening is popular with investors. Look at this. Lot of green, lefthand side of the screen. The dow is going to be up about 300. The s p up 36 and better than a 100 point gain for the nasdaq. Yeah, tuesday, may 5th, a positive tone today, if you ignore the everwhining media. Varney company is about to begin. Stuart lets get right at it. We will bring you an update on the reopening of the country. California and new york, both outlining their plans. Ash is here. Break it all down for us. Ashley yeah, good morning. Lets begin with new york. Just announced a fourphase plan as per governor andrew cuomo. He says first phase, construction and manufacturing, especially in those areas where the number of cases of coronavirus is significantly lower. Phase two, real estate, finance and insurance. Retail businesses as well, in some cases. Phase three, restaurants and hotels and phase four, arts and Entertainment Venues, schools, education reopening. All of this, says the governor, based on the science, the data thats coming in, but that is a plan. Now, lets go to the other coast. Lets go to california. Governor gavin newsom starting to ease restrictions. As we know, we have seen a lot of protests, especially down in Orange County. The next stage of reopening could begin this friday, may 8th. Low risk businesses, he says, able to accommodate curbside pickup. It could move on from there. Phase two in california will be the plans for that will be released on thursday. That pentup demand, we have three rural counties, stu, in california have already ignored the rules coming out of sacramento and have already gone ahead. So there is that demand, very very strong demand. Stuart absolutely. Look at the protests. Thanks very much. Market watcher mike murphy with us now. We have been saying this for some time now, this market rally is the result i think primarily of the reopening of the economy but also, all that money thats being piled in from the fed. Are you with me . Im with you 100 . Great to see you. Great to be here. You know, this is going to be a negative quarter for u. S. Companies, obviously, because our entire economy is shut down. But like you point out, the government has put more money to solve the problem to work here so now we can look out to the next quarter and the quarter after that and if we have enough money there to support these companies, we get the economy back open, we should see higher stock prices. Stuart youve got terrible news from main street, but the markets taking off in the expectation of a rapidly moving backtowork business. Mike, stay there for a second. Ive got more from you later. I want to stay on the Positive Side of things for a moment. Susan is with us. Pfizer working on a vaccine. What have you got on that . Susan first of four possible vaccines they are working on, and going to human trials for their first one. They just started working with the university of maryland and also New York University as well. They have been testing human trials in germany over the past month already and this is very positive, given that the pfizer ceo says we could have a possible vaccine by early fall. We heard President Trump saying he expects one possibly at the end of this year, but if we get one by early fall, thats ahead of schedule. Thats one of several vaccine candidates out there in human trials. Moderna has tested one or started testing one just last month as well, along with Oxford University and also pfizer is working on antivirals. We are looking at maybe using an arthritis drug to possibly treat coronavirus as well. Stuart all hands on deck for a medical fix. One thing that would make a big difference to the look and feel of main street would be if starbucks started getting back into business. It really would. Whats the plan . Susan youre right, grabbing your daily latte for five bucks. 85 of u. S. Stores are set to reopen by the end of this week. That means you can get your starbucks latte once again. Also by early june, they are talking 90 of stores will be open but its modified operations, modified hours. That means a lot of the staff will have to wear masks and then you have delivery drivethrough and mobile ordering which will be the bulk of the business thats being done at 90 of these stores that are set to reopen. But look, cashless is the future, delivery is the future. At least you get your latte fix. Stuart whatever you say. Thats all the positive stuff. Okay. There are negatives this morning. Lauren simonetti is with us right now. Lauren, look at that, norwegian cruise lines. Whats the story there . Lauren wow, down 10 . They have 6 billion in debt obligations and they are not sure how they are going to pay them. They dont have enough cash to meet their obligations in the next year. That raises substantial doubt about their ability to continue as a cruise line. They say the impact of coronavirus will extend beyond the containment of the virus and as a result, the stock selling off today. Stuart next one is United Airlines. Lets do united. Lauren okay. United says that they are going to cut their management positions, about 30 in october. Why is that important. Because in order to get that 5 billion in federal aid, they had to promise no layoffs until the end of september. So in october, about 3500 managerial type positions will be lost. They say look, we cant make payroll when nobody is flying. Its not a viable business operation. The stock, however, is up today by 3 . Quickly on hertz, they are preparing a bankruptcy filing and that could happen today. They trying to rework some of their debt obligations but theres no demand. They sold off some of their cars. The prices for used cars have plunged and their fleet is just too big right now. That stock down 15 at 3. Stuart theres another one, another big name, golds gym. Whats the story . Lauren we are going to keep going with the bad news and hopefully thats the end of it, right . Golds gym filed for bankruptcy. They have 700 gyms and they plan to emerge from bankruptcy by august. So you know, the gyms are closed in many places and how do you operate in an environment like this . They have filed for bankruptcy as a result. Stuart no surprises. But it is another negative. Okay. Now, i want to roll through some of the big names which are issuing their results, financial results, later on today. First off is disney. Thats the big one today. They were downgraded by longtime bull yesterday. Their parks and movie industry really in a kind of shambles. A lot will depend for the Stock Performance on the call after they have released their earnings. Disney is down a buck in advance of that. Activision blizzard video game people. Obviously the story there is people are staying inside, locked down, playing more video games. Got to be good for revenue. That stock is up a fraction, 1. 3 . Same story with Electronic Arts, another video game publisher. They are up about 1. 4 in advance of the official numbers. Cheesecake factory. Other side of the coin. They have gone through the ringer with this virus, telling their landlords they cant pay the rent, they furloughed thousands of employees. We will see how bad it is when we get the official results later. 20 bucks a share now. Beyond meat, people moving towards plantbased food during this pandemic, question mark. Are they . Not so sure. We will find out later. The stock is up 5 in advance of the numbers. Mike murphy, come back in again. I know you like fed ex. Why . I think the stock has really been beaten up and a lot of that had to do with the fact they were going headtohead with amazon, that amazon was going to try to displace fed ex and handle a lot of the deliveries themselves. Now amazon has moved away from that part of the business. The stock is still way off recent highs and people are sitting at home, ordering more, and packages are being delivered by fed ex. I think this is a company that you can own, we own it, and owning it down here i think has a lot of upside throughout the course of this year. Stuart do you still own uber . I think you still like it. I dont like uber. I love uber. Stuart okay. Well, wheres it going . Its only at 28 bucks a share. Nowhere near the ipo price. Nowhere near the ipo but remember, this is something we have talked about, a great entry point, in my opinion. But we are going to hear earnings from uber this week, on thursday. There is going to be a negative report from uber because people arent out, people arent using their service. I think a thing for uber is when the economy does open up, what have they learned from this and how do they become a better, more profitable business from this shutdown. I think the ceo will deliver and i think its a great stock to purchase at 28. Still expected above the ipo price of 45 very soon. Stuart very soon. Okay. Murphy, youre all right. Thanks for joining us. See you again real soon. Next, President Trump is heading to phoenix, arizona later on today. Its his first big trip outside d. C. , that is, in a little more than a month. Hes going to visit the Honeywell Aerospace facility which is now making and ramping up production of face masks, the n95 face mask. The president will be receiving a tour of the plant and hes going to be delivering remarks before he flies back to washington. That will be interesting. Now, the president is also may make remarks when he leaves the white house this morning. Thats about 10 00 eastern time. He usually wanders over to the reporters behind the rope line, answers a few questions. If he does, you will hear it as we always say real fast right here. Check futures. Nice rally. Here we go, up 300 for the dow industrials, 1. 3 . Exactly the same percentage gains, 1. 3 for the s p and for the nasdaq. Heres a first on fox business. Ganz ceo joins us, an internet gambling company. They ipo today. Is this a strange time for a Sports Gaming company to go public . Theres no sports. We will talk to the ceo. Now this. Some new York City Police officers speaking out. They want cops to get out of the social distancing enforcement business all together. We are on the story with fox friends cohost Brian Kilmeade in our next hour. The Treasury Department looking to follow a whopping 3 trilli trillion. Who is on board with spending even more and running up the debt even more . Thats next. You wouldnt accept an incomplete job from anyone else. Why accept it from your allergy pills . Flonase sensimist. Nothing stronger. Nothing gentler. Nothing lasts longer. Flonase sensimist. 24 hour nondrowsy allergy relief and mine super soft . 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At carvana the safer way to buy a car. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. If its essential that brave Health Care Workers, Grocery Store workers, Truck Drivers and many other americans continue to carefully show up for work, its essential their u. S. Senators carefully show up ourselves and support them. The republican leader has called the senate back into session, despite the fact that the District Of Columbia appears to be reaching the peak phase of this Public Health emergency. Stuart there you have it. Senator mcconnell, come on back because you are essential workers. Senator schumer, dont come back because its dangerous. They were going at it yesterday in the senate. Which can reconvene for the first time in weeks. The house remains shuttered for the foreseeable future. Dont know when theyre coming back. President trump just tweeting this. Governors should let roads and highway construction begin before heavy traffic starts which will be soon. Some governors never stopped which proved to be very smart. They built and fixed roads during long notraffic periods. Also saved big dollars. Thats just from the president moments ago. Now we have the treasury, they plan to borrow 3 trillion just between april and june. This is to pay for the enormous spending on the virus. Senator john hoeven, republican of north dakota, joins us now. Now, that spending is set in place. What about the future . Do you want another rescue package, more spending and more borrowing . Where do you stand on this . Stuart, its a real concern. On the one hand, weve got to work to make sure we win this Coronavirus Fight to get our workers through it and work with the states as theyre coming out and getting opened up like my home state of north dakota. But yeah, the spending is a real concern and thats why we really have to look at the funding we already provided. Is it effective and are there additional flexibilities we can give the states to make that more effective, and yes, we have to support the Coronavirus Fight but we also have to be very careful about the spending level. Stuart theres going to be a fight within the republican party, though, about even more spending. Well, one of the things that i was able to do is work with treasury and for the Coronavirus Relief fund that went out to all states, that 150 billion, in our state, we couldnt use it the way we needed to. I got treasury to work to change in terms of how we use the Unemployment Insurance benefit fund, use some of the coronavirus for that, made it more effective so my point is, lets find ways to stretch and use the money we have as well as possible, and be very careful about, you know, any future spending because of the debt level as, you know, as you brought up. Stuart now, in parts of the country, theres a meat shortage. There are shortages appearing on the supermarket shelves. Does this involve north dakota meatpacking plants, ranchers getting back to business . We are a big livestock state, no question about it. I work on this all the time in the ag committee. We have to help our farmers and our ranchers. This is particularly livestock and ranchers. So part of the coronavirus act included funding i put in there to help ranchers but theres market issues, theres a lot of concentration in that industry and we have to make some changes and we have got an investigation going on now through the department of ag to try to help our ranchers. And we need, you know, to really get after that and make some changes for them. Theyre not being treated fairly. Stuart north dakota would seem to me to be a prime example of a state thats ready, willing and able to open up. All those wide open spaces. Are you opening up . Absolutely. Our governors done a tremendous job both in terms of working through the Coronavirus Fight in a very datadriven way, very careful way, but he really tried to stay open as much as possible and now really has opened the state back up. People are doing, you know, people of north dakota, very common sense, very grounded, doing a good job of social distancing but our businesses are open. Stuart okay. I sense an upbeat mood in lots of parts of the country. Senator john hoeven, thank you very much for joining us from north dakota. Got you. Thank you. Next case. An amazon Vice President , he was one of their top cloud engineers, well, hes left the company, stepped down. Susan, tell me why hes leaving. Susan hes upset that amazon fired several employees that protested against the workplace conditions, including the ones that led the walkout in Staten Island recently here in new york state and also the one that led the minnesota walkout on prime day last year, which i covered. He is a top engineer at aws which is the Cloud Services division. He says remaining as an amazon vp would have meant in effect signing off on actions that i despise and my favorite line from his blog post is that the firing of these employees is evidence of a vein of toxicity running through the Company Culture and i choose neither to serve nor drink that poison. Stuart whoa susan we know amazon has come under fire for a lot of their some would say unsanitary work conditions. Too many people in the building at once during these covid times with numerous Fulfillment Centers that have had employees testing positive for coronavirus and not providing the ppe, the Protection Equipment and also these harsh quotas, hourly quotas that the employees feel they are burdened under so they have to work in tight conditions. I think this might be a wakeup call possibly. Stuart maybe, but they did supply us all through the virus lockdown. They did valuable, vital work right there. They did it. They pulled it off. Susan they have been rewarded with their stock price hitting record highs and jeff bezos cementing himself as the richest man on the planet, no . Stuart yes to that one. Look at the stock price. 2300 as we speak. By the way, overall, i see a lot of green on that board, up 300 for the dow, s p up 30 odd, 111 up for the nasdaq. This is a gain all across the board of 1. 25 or better. Thats where we stand. More news after this. We could never do what they do. But what we can do it be a partner that never quits. Verizon is the most Reliable Network in america. Built for interoperability and puts First Responders first, giving their calls priority, 24 7. We do what we do best so they can too. Confident financial plans, calming financial plans, complete financial plans. Theyre all possible with a cfp® professional. Find yours at letsmakeaplan. Org. Stuart disney releases its report on its finances later this afternoon. Mark douglas follows disney and is with us now. Mark, what could disney say that would make you positive about the company . We know theyve got problems with movies, with theme parks, with the cruises they run. What could they say that makes you turn around and be positive about it . Well, i think you mentioned all the businesses, plus streaming, and in the near term, theres not a lot of positive to say. But i think the disney brand is strong in the long term. I think its a buy, you know. Youre going to have to wait a year to see that price come back. But people are not going to forget the disney brand. They are not going to forget the theme parks, the cruises and all these businesses and this brand that has been building, almost like an opportunity to reinvest in disney as if it was day one in the company. I think people have to look to that future. Stuart what do you make of diz mi pl disney plus, their streaming service . People tell me its a Great Service but its old stuff. Whereas netflix is all brand new stuff. Yeah. Netflix right now is showing what 15 billion spent on content buys you. Its just an endless stream of new shows. Im wondering when its going to run out. Right now its like every week theres a new movie, a new show, a new documentary. I think disney is really suffering from that right now. They didnt have the backlog of new content that netflix has. But i think parents have a lot of kids at home, the disney plus brand, disney plus content is going to hold up. Netflix is really shining right now in comparison to where disney is. Disney is just a bit hurting all around but the future is always going to be bright for a brand like that. Stuart im told bob iger has returned to take control of the whole company. He stepped aside briefly but i think hes back in the chair running it again. Does that make a difference, do you think . To Investor Confidence . Yeah. Bob iger essentially built the new disney. He was an entrepreneur coming in and building disney from scratch. Thats essentially whats going to be needed over the next year. I think although they have a great management team, it cannot be understated. Hes prepared to have the same confidence to place those bets over the course of the next year. Think its a great move for disney. Everyone would understand including the ceo thats kind of being pushed aside a little bit would understand why bob is needed at this time. Stuart to conclude, disney is at 101 now. But for a longterm investor, you think you get your money up to say 140 or 150 if you hold on for a year . Does that sum it up . Yeah. I think people are going to be surprised at the speed of their recovery as things start to open up a bit. Its going to take a bit of time. I think at least 140, if not the continued rise in disney plus growth when hollywood opens back up. Stuart you have been right before. Thats why youre on the show again. We will see you again real soon, mr. Douglas. Thank you very much indeed. Weve got 18 seconds to go and we will open this market and its going up. Look, this is a rally all across the board. In my opinion, there are two factors here. Number one, we are going back to work. America is reopening. The economy is going to come back. Number two, weve got the fed popping in trillions of dollars and that is going to help. Look at this. The stock ringing that bell and now we are open and right from the start, we are up. I see on the lefthand side of the screen, for radio listeners, we have, what, 28 of the dow 30 on the upside. Okay. 26 on the upside. The dow at this moment is up about 1 . 220 points for the dow industrials. The s p 500, that also up about 1 as we speak, 28 points. The nasdaq composite, that is also on the upside to the tune of just over 1 . Im going to show you norwegian cruise lines. They say there is quote, substantial doubt that they will be able to continue operating. 20 of shoreside employees will be furloughed. The stock is down 10 , 12 a share. Norwegian cruise lines. I will show you United Airlines as well. They Just Announced plans to cut maybe 30 of their management work force in october. Their chief operations guy says employees should look into voluntary separation from the company. Nonetheless, the stock is up 3 . Maybe they have hit a bottom and are looking to the future. Hertz, the journal reports they hired another adviser to help them with a bankruptcy filing. Real tough for any travel related company. Another car rental, avis budget, management sees revenue falling about 80 in april and may compared to last year. They are optimistic that once the economy reopens, business picks back up again. The stock is up 4 . We talked about disney. Now lets talk about netflix. That stock is down two bucks right now, 425. Susan, tell me about their content pipeline. What am i going to be seeing . Susan you will see 13 to 15 billion worth of content on netflix. We just talked about extraction which is that Chris Hemsworth blockbuster, looks like extraction 2 has been booked in. This will probably be the most watched original movie ever on netflix. I dont know if youve watched it. 90 million have over the past four weeks. Compare that to murder mystery which 73 million watched. Bird box from last year was around 45 million over four weeks time. Later this week, we have obamas becoming that documentary releasing and look, you had a blockbuster First Quarter, 13 million subscribers signing up. They are guiding for 7. 5 million from march to june, something that will be easily beat since people are stuck at home and what do they do . They stream and binge on netflix. Stuart yeah. 15 billion buys you an awful lot of content, doesnt it . Susan you bet it does. Stuart show me comcast, please. Andy lack is stepping down from the helm at nbc. Thats a big shakeup. Tell me more. Ashley. Ashley yes, indeed it is. In fact, the way it was put on the release is that andy lack will quote, transition out of the company at the end of the month. Isnt that a nice way of putting it. Yes, indeed, hes going to be out. Caesar conde is coming in. He heads up the Spanish Language network and pretty much every other business outside of the United States. In fact, he will have a much larger empire than lack did. The operations reporting to him will be cnbc, nbc news, msnbc. Lets not forget that lack did face criticism over the networks handling of allegations against matt lauer and you remember back in the time, ronan farrows accusation of Sexual Assault against harvey weinstein. Andy lack, out at nbc after a major shakeup of that management setup. Caesar conde, the new leader. Stuart not much reaction on the stock price. Remember shake shack . They handed back that 10 million they got. Lauren, i think we got their numbers. Tell me how bad the virus hit them. Lauren well, in march, their sales were down 29 . 29 in one month. But they see demand picking up. They say as demand picks up, so will their costs. Thats a theme. As companies try to reopen, the costs to do so is going to be higher. Look at the stock. Its turning around. Thats the new reality. If you want to stay in business, you got to spend money to make sure that you are doing the social distancing thing. The company said one more thing i wanted to point out. There can be no assurance as to the time required to fully recover to precoronavirus levels. So the duration of all this, nobody knows. It comes with the cost, though. Stuart thats true of almost every single business i can think of. Nobody knows how this turns out six months down the road. We just dont know. But we do know the dow has opened in the first few minutes with a very healthy gain of 300 points. Thats 1. 25 on the upside. Back above 24,000. Look at wayfair, Online Furniture people. They are up 42. Thats 32 . I will check into that for you. Theres got to be a reason. I will tell you what it is when i find it. Look at the tenyear treasury yield, on the upside. You know what that means. That means moneys coming out of those safe treasury bonds, going into the stock market. Thats whats happening. The price of gold still around 1700 an ounce, down five at the moment at 1707. Better check bitcoin and we will check it now. 8900 per coin, down 12. Oil, okay, now thats a nice rally. 23 a barrel. This is a fiveday rally, susan. Susan thats right. Also, just this morning we saw brent back above, from what i see, 30 a barrel which is something we havent seen since april of this year. You know, its because of supply right now. Theres a lot more supply than there was shall we say theres more demand for the supply, how about that. I will make it a supply and demand equation for oil which it usually is. We have Goldman Sachs predicting that the usage of oil, demand for oil has gone up 2. 5 Million Barrels per day since the bottom we saw in april because of coronavirus. Also, you have opec, that oil cartel, 20 nations joining in, removing about 9. 7 Million Barrels per day and then Morgan Stanley says an extra 3. 4 million around the world will be removed as well from other Oil Producers that are not part of opec. And china is back up and running, and china is the largest user of global oil since we know the u. S. Produces, uses its own but china is the one that buys on international markets. Thats why youre looking at june prices once again back to closer to 25 a barrel. Stuart i got to admit, i got that completely wrong. I thought the glut would last forever, of oil, and the prices would be depressed forever. Not so. Demand is coming back and what youre looking at susan nothing is forever. Stuart thats true. But looking at that winning streak right now, thats the longest winning streak for oil in nine months. The president tweeted about it this morning. Its because of the increasing demand as we get back to work. Better talk video games. Why not. We are all locked down. Activision blizzard, Electronic Arts both report after the bell today. Lauren, its got to be giving them a boost, this lockdown. Got to be. Lauren stayathome is great for the video game makers. They are up, activision 9 this year, Electronic Arts 5 this year. However, look at their guidance, when they report after the bell today. Because i was reading something jefferies wrote. They said guidance can be conservative. A lot of developers of video games are at home so that affects what they can produce. Also, consumer spending. That has been going down so are people going to buy fewer games, fewer Online Purchases when it comes to games as well . Both of them report after the bell. But stayathome very good for video games. Stuart all right. Lauren, thanks very much indeed. I will put it like this. We are now up 289 points on the big board. Thats a gain of about 1. 25 . We have green all across the board, in the very early going this tuesday morning. Its may 5th. Cinco de mayo. Recognize that. Cinco de mayo. A rally. Is there a connection . Dont know. We are just dying for the return of live sports. I certainly am. So heres the positive news. The nfl expected to release its 2020 schedule this thursday, showing that the virus will not completely stop football this year. Thursday, we get the schedule. Grocers, some chains are limiting the amount of meat customers can buy. It comes as the industry tries to return to normal after facing major challenges. Weve got a live report on that next hour. First, though, the gan ceo joins me. Gan is an internet gambling company. They are going public today. What a time to do that, when theres no sports. More varney after this. Meet jim. For jim, comfort is king. Which is why when it comes to his dentures only new poligrip cushion and comfort will do. The first and only formula with adaptagrip cushioning technology. Choose new poligrip cushion and comfort. Sprinting past every leak in our softest, smoothest fabric. Shes confident, protected, her strength respected. Depend. The only thing stronger than us, is you. Stuart we are going to put the casino stocks up on the screen for you. Not that much movement. The lights in vegas will be turned on again soon, but ash, i bet theres a catch. What is it . Ashley oh, yes. You are absolutely right. When they do reopen, and thats still up in the air, they must limit capacity to no more than 50 , and this, they must limit the number of Gaming Machines on the casino floor. Now, those slot machines typically account for 50 of revenue so thats a big hit. Also, they must reduce the number of betting positions at tables. So normally you would have six or seven people on a gaming table. That number will be reduced to two. You are used to seeing people crowded around the craps table. Not going to happen again. Thats going to be a huge, huge hit. The other thing that vegas not only has it been shut down since, what was it, march 18th, but so many more people now have gone to Online Gaming. Although its not the same as going to vegas, they will probably lose some customers to that, too. So when they do reopen, the amount of revenue they are going to be able to generate is going to be far less than normal. Stuart i tell you, the repercussions just go on and on and on. Its just extraordinary stuff. By the way, on a related note, we have now a first on fox interview. Our guest is the ceo of a Company Called gan, gan, an onlieb go Online Gambling software developer. They are going public today. Quite a day to go public for a Gaming Company when theres no sports. What are you up to . Well, actually, Online Gaming has been a significant net tail wind for gan since stayathome orders and covid19 were passed so despite the disruption of Sports Betting we have experienced significant Revenue Growth through the back end of q1 and its very much continuing in q2. Its not a short term phenomenon. We think it will continue to benefit gan. Stuart can you give us some idea of how much Online Gaming has increased since the lockdown or since the virus hit us . So we saw these extraordinary quarantine measures in italy at first, we had about a 30day preview to the impact in america back end of march and going through april, we saw 50 month on month increases in the number of active players online, and revenues flowed through. Its been an extraordinary shift in our favor but of course, we are very mindful of the extent of the human tragedy that covid19 is an extraordinary set of circumstances which are benefiting gan and our technology as a provider to the retail casino industry. Stuart you will bring in a lot of capital with this ipo. Can you tell us what you are going to spend it on . Very much increasing our Engineering Resources so we can bring more retail casinos online. We think the pace of regulation is going to continue. If anything, its going to accelerate on back of the covid19 outbreak. We see more states being mindful towards regulating Online Gambling, including Online Gaming, and thinking very much about how to support retail casinos in the event they have to shut again in the future. Stuart forgive me for asking, but im trying to work out your accent. I just cant place it. Would you mind if i ask you, where are you from . Im a very proud irishman from southern dublin, ireland, by way of london, las vegas and current residence of southern california. Stuart i can tell. Thanks very much for joining us, sir. Best of luck with the ipo. We will be putting it on the screen when the first trade comes across the wire there. Dermot, thanks very much. Good stuff. Ive got news on intel. They are funneling some big money into, wait for it, a robotaxi startup. Im skeptic but tell me more. Susan they are funneling 900 million worth into this israelibased urban transit data startup called move it. They have 800 million users across 3100 cities, 102 countries. They are pretty much like google and apple maps and they aggregate a lot of crowd sourcing data that has to do with scooters and bikes as well. In some ways they kind of do a little better in urban areas since its crowdsourced and they can provide mapping data in places where you might not get it, especially when the satellites arent working and in those small corner narrow lanes and alleyways. So what intel is trying to do with this, its trying to provide robotaxis in the future which they see as a pretty large Addressable Market of 160 billion by the year 2030. Dont forget, you might remember they predicted that the autonomous driving era would be worth around 7 trillion. They bought into mobile eye, which is also starting mobile taxi, selfdriving taxis in israel and also south korea, so in some ways they see this as a synergistic merger of the two technologies. I think that kind of makes sense, if you are going to invest in mobile eye which is going to start these robotaxis, might as well have the Mapping Software that comes with it. Stuart i see the justification for the investment. I got it. But do you share my skepticism about robotaxis in the near future . I can see if theres a longterm prospect. Susan it is a longterm prospect, as i spoke to ubers head of selfdriving last year and they say to drop a car, a selfdriving Autonomous Car into any city, would probably be another 15 years at least. But ive got 15 years. I expect to see it happen at some point in my lifetime. I can see the longterm bet. Stuart that was cruel, susan. You are questioning whether ive got 15 years or not. Susan no. Saying i have 15 years. Thats what i was saying. I might see it. Stuart got you. Programming note. Happening this thursday, 1 00 eastern, my colleague neil cavuto hosts another America Works together town hall. The guests, ken langone, bernie marcus, founders of home depot. Send your questions to investedin you foxbusiness. Com. 1 00 thursday. Frontier airlines have figured out how to help you social distance while flying. Question, will you pay more to travel once its okay to fly . They have got a way you can do that. J. Crew filing for bankru bankrupt bankruptcy. The latest retail casualty. I want to know, what does the Shopping Experience look like once stores reopen . We will tell you. Staying connected your way is easier than ever. 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. Stuart sound the trumpets, this is the high of the day. We are up nearly 350 points. That is the best part of 1. 5 . Green all across the board. The dow is back above 24,000. Take a look at l brands. Remember, they said they were planning to take victorias secret private. That plan has been scrapped. It will remain part of the greater l brands name. Investors dont really care very much. Its up ten cents at 12 a share. Now, we have this came as a real shock this week. J. Crew, bankrupt or at least filing for bankruptcy. The virus really sealed their fate. Lets bring in the former c. O. O. Of a very wellknown retailer. Sir, in a nutshell, nou tyou kne retail business. How will Consumer Behavior change when we get past, on the other side of the virus . Stuart, i think thats a great question. There are a couple things we can say, actually three things. Number one, americas clearly changing. First we are becoming a Digital First economy which means, you know, possibly 250 class c malls might disappear, maybe 15,000, 20,000 stores may eventually disappear. So theres a reinvention going under way. Number two, less disposable consumption and more towards things like resale. And three, sustainability and authenticity are increasingly important to todays consumers. Stuart im going to i just want to pick on that middle one. Less disposable consumption. Is that, are people literally buying secondhand clothes, used clothing, that kind of thing . Big trend towards that . Yes. Well, i mean, things like uber, right, people purchase less automobiles and are using it to share. Thats one. Thats clearly a growing trend. But number two, absolutely right, people will spend a little bit extra to buy that Louis Vuitton bag, use it for six months, turn around and resell it, take the cash and go out and purchase another, for example, luxury item. So that actually puts a lot of pressure to the midtier guys who previously were able to kind of say affordable luxury is the future. Stuart wow. You opened my eyes on this one. 15,000 stores going out. Thats dramatic. It will look and feel differently. Thats whats going to happen here. Thanks for joining us, sir. Im sorry its so short. Ive got a big news day. We will have you back again sometime. Interesting trends right there. Thank you, sir. We are only just getting started. Big lineup still ahead. Weve got Brian Kilmeade, Katie Pavlich and mike braun all coming up. President trump is heading to arizona next hour. His first big trip since the lockdown. If he speaks to reporters and he often does, as we always say, you will hear it first here. First, i think its becoming [ inaudible ]. We are getting out of the house, going back to work. The flood gates are opening. I will tackle that in my take, next. Stuart precisely 10 00 eastern time. Of the President Trump leaves this hour for arizona. He is going there to tour a honeywell facility where they wear facemasks. If he speaks to reporters, he often does before he gets on marine one, you will hear what he has got to say. We got the latest read on Services Sector for the month april. Do you have the number, ash . Ashley i do indeed, stu. 41point. The estimate, i know you love estimates, was 36. 8 so not as bad as feared but anything below 50 is a contraction. That is the first time weve seen the Service Sector actually contract since december of 2009. That is over 10 years ago. 41. 8. It is not great but in this climate it could have been worse. Stuart dare i say it, ash, what you shut down the economy and you shut down Services Businesses i would be expectings, forgive the use of that word, i would be expecting a much sharper contraction than what we just saw . Ashley i agree. Couldnt agree more. Were looking for little chinks of light where we can. Obviously is one of them. It is not great but can only go one way from here. Stuart i hope so as we reopen. The market ticked up a couple notches. Were up 368 points for the dow industrials. 1 1 2 . A better gain, 1. 6 on the s p. A big gain on nasdaq that is up 157 points, 1. 8 . All right. Now this. You know its becoming a stampede. It started two weeks ago. It is picking up speed. Back to work, get out of the house, breaking out all over. Of course were breaking out. If you own a Small Business and youre facing the loss of your lifes work, what are you going to do . Stay locked down and go bankrupt . At the very least, youre going to pressure your state governor, loudly, probably. In some cases you will be defiantly reopening, you will do it. A California Bar per shop owner appeared with us yesterday. He opened his three stores, despite threats from the local authorities. It is a revolt. Please note the new York Police Department is fed up with trying to enforce vague social distancing rules. They dont want to do it anymore. Then, there is the sheer human misery of the lockdown. Cooped up for weeks on end, perhaps in aabusive relationship you cant get out . Some Suicide Prevention hotlines have seen a spike in calls. Substance abuse, Mental Health administration, report as 1000 surge in Emotional Distress calls. Were buying a lot of alcohol. You think that might be a challenge for people with a drinking problem before they locked down . We need to get out. It is not all trendsetting of course. In some states started to reopen the number of reported cases, virus cases has risen slightly. The number of fatalities is expected to keep rising well into the summer. It is not over. Risk of infection, especially for vulnerable groups is still there. With the relaxation trend in full swing, collectively we appear to accept the extra risk. It is 2 1 2 weeks to the memorial day weekend. You know what that means . We get out and about to enjoy the summer weather. Tough to keep people inside. What about the seasonal businesses which have a threemonth window of opportunity for the whole year. If they dont open theyre done. Like it or not the pace of the great reopening is speeding up. By memorial day i think it become as flatout stampede. You heard what i got to say. Scott shellady with me now. Am i exaggerating . I think, the floodgates are opening. I see a stampede here, what do you see . I think youre absolutely right. The way i see it, stuart, weve got, our only risk is what they put on a car to slow it down. What is that called a governor, right . The only thing that can slow this down is the governors. I see that as a big problem. If i told you three months ago, one side of the street would be illegal to get a haircut and other side of the street it would be legal to get a haircut, you would have laughed me off the air. That will be the biggest problem. You put in perspective. Weve got lower oil prices, lower interest rates, a ton of cash flowing around the system, a ready and willing workforce that is a sign of explosivety. I think were putting ourselves in a position to very well. We have to get around the governors that could screw it up. That is my biggest worry. Stuart hold on a second, scott. Talk about some growsry stores, chains, limiting amount of meat you can buy any one time. There are some limits. I hesitate to call it rationing but there limits being proposed. I want to bring in grady trimble. He is tracking all of this. Which chains are imposing those kind of restrictions and how much . What is the story, grady . Reporter costco, people are used to buying in bulk. Kroger stores, food lion stores, wegmann and sams club stores. Theyre limiting people one to three packs of meat per customer depending on the store. We went to a payless store which is owned by kroger in indiana. Pork or beef products were limited to two or three to customer. Experts say there is plenty of supply, cattle and hogs coming from the farmers. There is plenty of demand, people going to Grocery Stores opening up but there is a bottleneck at the Processing Plants. Cdc estimates 3 of all Processing Plant employees contracted the coronavirus. As a result weve seen closures across the country. Now one thing i should note is, these different supermarkets have different suppliers. You might not find meat at one supermarket but if you go down the road you might find meat there. It is not like the toilet paper shortage that is widespread. The other thing, wendys some locations dont have hamburgers. Theyre trying to keep up with the demand there as well. In fact i went to a wendys for the first time in 10 years yesterday. When i got to the drivethrough, welcome to the wendys, would you like any chicken product . Theyre trying to push customers for those type of products instead of beef. Stuart thank you very much, grady. I want to bring in Scott Shellady. He is the man who wears the cow jacket. He has a long history of trading all kinds of agricultural commodities. He does that for a living. What do you make of this meat shortage . Can it be, can it be ended quickly . What happens to all those hogs and cattle that are waiting to go to meat Processing Plants and they cant get in. That is a part of the story you dont really want to know. There is some pretty ugly things that have to happen to those animals unfortunately. It is a shortterm issue. Grady is exactly right. We have all the meat we need and animals we need and places to sell it but we have the backlog, folks are getting sick working in the Processing Plants. President trump tried to make them essential. We have folks worried about he showing up to work and getting sick. The problem it is a shortterm problem. That will not be a longterm problem. Well be able to get over that. Today wendy es might be selling you chicken but i dont think that will be something in four weeks time. We have to watch what we buy on a daytoday basis in the short term, it will be taken care of in the long term but it is not as into story they have to do to some animals that have nowhere to go, number one. Number two we will get through this for sure. Stuart scott, hold on a moment, i want to bring in susan. I want to start with beyond meat. It is a winner, is it a winner as a result of all this, the meat shortages . Is that what is going on, susan . Susan two factors might affect beyond meat t might be a winner given meat shortages and people might go to plantbased protein instead. It might be a loser you have all the fastfood chains mainly they supply being shut down from march to april. Were expecting earnings, but the stock, nothing can stop this stock. It gained triple digits from the ipo. Since april up close to 50 . There is a lot to prove later on today whether or not it can maintain the really high growth rates of revenues, what they call sales, up 70 . People are hoping for the first three months of this year. Theyre inking new deals. They signed with starbucks to enter the Chinese Market in 2020. Mcdonalds is testing a plantbasedburger in canada. Were expecting beyond meat to make losses. With the high growth rates people are expecting to pay up. Stuart that is the growth rate im looking for. Susan, thank you very much indeed. Before we leave Scott Shellady i should point out to everybody, he just happens be in scottsdale, arizona which happened to be named best city to be quarantined. What is so special about scottsdale, scott . Obviously as you can tell, the weather has been fantastic. We havent really had a ton of social distancing problems because things are little bit more spread out. As these governors, go back to the governors, some of these mayors, starting to act so irrationally in my mind, back in march, i made the decision at end of march, march 21st, if i had to be locked down anywhere, that looked like going that way with all the sports teams, i would not be locked down in chicago. I want to be locked down in scottsdale. Every now and again, stuart, a Blind Squirrel finds a nut. I think i found a nut coming out here. Stuart does it seem like not quite normal but almost normal . I said this joke yesterday to my wife, she didnt think it was funny as i thought it was, i wanted to make a tshirt, i want kate until quarantine 2021. Well see how that goes. Stuart will you ever leave, scottsdale, arizona . Well see. I will let you know. Stuart talk to your wife. Scott shellady in scottsdale as it were. Market still doing well. Look at that up 300 points for the dow. Up 1. 3 to be precise. Starbucks, they say 85 of their u. S. Stores will be open by the end of the week. 90 by early june. That is not a full opening. I dont think you can sip down and sup your coffee. They have restrictions but they are reopening. Shake shack reported a surprise profit in the First Quarter but a 12 decline in samestore sales. The market is not too concerned about that. Theyre down a buck 56 which is almost 3 . We have a new sound coming to us. That would be a new sound bite as we call it in this business from new york city mayor bill de blasio comparing President Trump to herbert hoover. Well play it for you after the break. Plus indiana, starting the next phase of its reopening plan with some businesses now allowed to open. I want to know, how is business doing in the great state of indiana . Well take you there. The nfl, planning a comeback. The league is likely announcing its 2020 schedule this week. More details on that. Sports coming back. Varney after this. 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. Stuart president not yet left the white house. He will be on his way to arizona shortly. If he leaves the white house and talks to reporters you will hear it real fast right here. Come on in please, wall street journals bill mcgurn. Bill, im intrigued about the president s trip today. Seems like there is a new phase of the virus response. Well not have daily briefings. He is getting out of town. He is Holding Meetings with state governors and executives in industry. Is this a new face in his leadership . I do. I think it is. Looks like it. The briefings have run their, they have served their purpose. Also i think you know, whether we like it or not the momentum shifted to the governors now, right . The governors are really making the decisions about the pace of reopening, what can reopen, who can reopen and conditions. So i think a lot of, a lot of the focus is going to switch to the states to see which ones do well and which ones dont. Stuart do you agree with me this, is, the floodgates are reopening when it comes to opening up and it is almost a stampede to get through that door . Im here sitting in new jerseystan i would love the floodgates to start opening up but i agree at this point as the different states open the pressure sure goes on to other states to open unless there is some really bad results. So i think, for example, gavin newsom Just Announced some openings. Im not sure he would have done that without the others going first. I just think, it will be harder and harder to resist reopening because a lot of the American People want it. People, you cant keep people cooped up forever. Stuart right. S specially with memorial day approaching, right the traditional off to the beach, off to the barbecue. Hard to keep people cooped up forever like that. Bill, i want your response to new yorks mayor bill de blasio. He just held a news conference, wait for it. He just held a news conference. I want you to listen how he described President Trump. Roll tape. Every day President Trump resembles more and more herbert hoover, the president who ignored the great depression, who didnt care to put america back on its feet, who has been now remembered in history as someone who failed at the most basic responsibility which is to protect the people he serves. Stuart i dont know where you want to start with it. I hope you heard it. Go at it. Yeah, well, look, it is an improvement over the previous comparisons to hitler and mussolini and so forth that we regularly get about donald trump. I think it would be more illuminating to have the mayor give that, those same remarks from the filthy subways in new york city, or from the Nursing Homes where people, people have really suffered because of covid19. This is classic bill de blasio, getting out there, making some inane speech while the city burns. It is, i dont think anyone looking at new york city and its response would say, these are people doing a bangup job. This is just classic bill de blasio. Stuart i think youre right. Thanks, bill mcgurn, thanks very much for joining us. We appreciate it. Thank you. Stuart sure thing. Look at the market. Holding on to that strong lead. Youre up 1. 4 now. That is 340 points up for the Dow Jones Industrial average. Similar gains, a better gain for the s p. Even better gain for the nasdaq. We have green across the board. United airlines, planning to cut what, 30 of management jobs because of the nonreturn to normal of the traveling public. The stock is up a fraction, 19, 18 cents thats it. They are suffering big time as are all traveling companies, trap companies. Frontier airlines introduced something called more room, in quotes. I bet you have to pay for it, lauren, right . Lauren yeah, at least 39 per person one way, if you want a guaranteed row on a frontier jet where the middle seat is free. This way you dont have to sit next to anybody else, would you pay at least 39 one way for a social distancing flight . I put this out on twitter a lot of people are saying no way, that is what youre supposed to do in 2020 in the age of coronavirus. Youre supposed to offer that, not sell it to us. Stuart exactly right. Youre supposed to offer it, not sell it. I can understand a surge for revenue. You know, youre supposed to be doing this anyway. Lauren it is called nickeling and diming, the airlines do it well. Stuart do indeed. Pay for a glass of water or something. Some of them charge you 25 cents. Lets turn to, airlines elsewhere in the world. We got news recently of British Airways just slashing the workforce. Is something similar happening at Virgin Atlantic, ashley . Ashley certainly is. They are going to slash 3,000 jobs at Virgin Atlantic out of a workforce at 10,000. So you do the math. Thats 30 . They have announced, stu, they are closing down their operations at gatwick airport. British airways also says they havent ruled out closing the operations at gatwick. Terrible news for gatwick. Virgin also, atlantic saying it is in the process of applying for emergency government loans. It is going to cut down its fleet from 45 to 35 aircraft by the summer of 2022. These airlines, absolutely decimated. Stuart no surprise. Air traffic is down, what, 80, 90 . You cant keep jobs in place when youre business disappears. Those are long term job losses. The whole travel industry is going to look completely different when we come out on the other side i think, okay . Look at way fair. Online furniture people. Whoa, the stock is up 25 . You got to tell me why, lauren . Lauren what a winner. They reported earnings today. They see millions of new shoppers. Theyre shopping in all of the categories that they operate. Sales are good at wayfair. I have ordered bounce houses. We have a lot of birthdays in april. Basically all the cousins got a bounce house from wayfair from me, for their birthday to give them something to do when they stay at home. People are going to wayfair to find what they need it. Worked out well for them. Earnings report, stock is up 25 . Stuart nice gain. I will take that. Thanks, lauren. I think we got video of this, hundreds of cars, new cars, sitting at the port. Nobodys buying them because the dealerships are closed. I smell a bargain, okay . Well have more on that in a second. More news from elon musk. He wants to sell all of his properties and own, quote, no home. He is already listed two California Properties for sale. We have details on that. And more varney after this. You wouldnt accept an incomplete job from anyone else. So why accept it from your allergy pills . Flonase relieves your worst symptoms which most pills dont. Get allinone allergy relief for 24 hours, with flonase. Stuart the president started a to talk to reporters. One thing he said dr. Fauci will testify before Congress Next week. That is the first thing he said. Hopefully well get the tape as well. Well bring it to you real fast as soon as we get it. Market, still a lovely gain. 300 points for dow. Back above 24,000. I want to show you restaurant brands. That company owns burger king. We just heard that bill Ackmans Pershing Square has raised its stake in the company. They9. 6 of it route now. Ackman says the stock is currently undervalued. That is restaurant brands, burger king. Here we go, tesla, elon musk, remember the tweet he will get rid of all his possessions. Selling a couple houses in l. A. Tell me more, susan. Susan he has couple hundred million dollars, two belair homes, sell two of them. Lets bring up the tweet from friday, i will own no physical possessions, will own no house. Two of these homes are selling for a lot of dough. One is gene wilders old home. Bought it, elon musk bought it in 2013 for 6. 5 million. Listed for 9. 5 million. Another home, six bedrooms, a pool, 10 news court, tesla solar panels. He bought that, elon musk did in 2012 for 7 million, listed for 30 million. Those are beautiful homes. Mansions there. Stuart do you have any idea why he would say i want to own no possessions . I think he blamed it on his girlfriend grimes at the time. She was mad at him for maybe owning a lot of possessions because he is worth about 40 billion. Given the stock price rocketed up 82 this year. By the way he is a new father, welcoming in a new child just yesterday, with his girlfriend grimes. Look at stock price. We were up as much as four 1 2 earlier on. This is after mondays rally of 8 1 2 . Chrysler, this morning say they will continue to Work Together in this new energy and new oil saving energy, electric vehicle energy. Stuart thank you, susan, that is a fine explanation why he wants to got rid of all his possessions. Susan yeah. Stuart come on in, mark grant. One of our favorite guests on the show. He is retired but still puts out a great deal of stuff. Are you there . I am here. Im not retired. Where did you come up with that. Im not retired. Stuart i thought you were . Oh, sorry. No. Stuart i was thinking of dennis gartman. Im sorry, mark grant, im so sorry. Dennis is a friend of mine but he, i just heard from him yesterday. Stuart okay. No, im not retired. Im the chief global strategist for fixed income for b riley, thank you. Stuart excuse me, im so sorry, mark. All right, come back. I will be back. Stuart i read your stuff whether retired or not, i know you like up vesting in hotels, energy, real estate. Thats fine. But look, our viewers, probably dont invest in those areas the way you do. What, how would our regular viewers, ordinary folks how would they invest in hotels . By the stock, that what youre asking . Stuart, im going to give you two great actionable ideas this morning. I learned, ive been on wall street 46 years. I learned in times of crisis there are opportunities and in some cases big opportunities and i see 2 00 major opportunities right now. One is in the real estate section. It has been creamed. You looking, for instance, office properties, you say, oh, people are work at home, theyre not going to come back. I have the exact opposite view, people are going back to work. Then they will have to sit six feet apart. Consequently, these corporations will be, need more space, not less space. Im looking at commercial property. Depending on your risk profile in the real estate area, you can buy equity of something. You can buy bonds of something. My particular favorite are closed end funds. You can own these things which have portfolios in the closed end fund in real estate, commercial property, office property. And you can get doubledigit returns with monthly dividends, if you know what youre doing. Stuart okay. The second area i like a lot, im sorry. Stuart, go ahead. Stuart go ahead. That was very interesting. Dont want to hold you up. Go ahead, talk to me about energy. Okay. The second is energy. Look, it has been a question of demand given the coronavirus epidemic. The demand is not going to stay here. Well go back. States are opening. The world is reopening. The price of oil in my opinion is not going to stay at below 20. It will get in the mid 20s, probably maybe 30 or more. It is killing some of these terrorist nations, in russia because their total economy is based on energy. Whats great is were making, were the biggest maker of energy now with fracking and refracting and horizontal drilling. All we have to do is store it. Over a party as demand picks up people can make a lot of money again both in equities and individual bonds and again, closed end funds where you get doubledigit yields. It its complicated. I will make an offer i ever made, people get ahold of me at b riley i will discuss with them personally, helping them if people need some help. How is that . Stuart just to prove youre absolutely not retired, you will take calls from our viewers on where to invest. Yes. Stuart youre a good man mark. I dont care what they say. Most of my day is spent with big institutions and money managers. I do have some individuals i help. Given what is going on. I thought about this, im willing to take some more of my time to help your viewers. Stuart youre a good man, youre a very good man. Mark grant, still fully and gainfully employed i might . Yes. Stuart see you real soon. Good luck. We understand President Trump has wrapped up his q a session with reporters outside the white house. Who is with me to tell me . Is it grade did i, ashley what did he say, headlines please. Ashley very interesting he was asked about dr. Fauci testifying to house senate, to a senate panel and someone asked him, why not the house . He said the house is bunch of trump haters. They frankly want our situation to be unsuccessful which is death. He said fauci will testify in the senate. He said the democrats should be ashamed. He also talked about the origin of the coronavirus. He says china should informed us about it. He has not spoken recently to chinese president xi but he says the u. S. Will be reporting definitely over a period of time about the origin of the virus. He was also asked about estimate of 3,000 deaths a day from covid19 by june 1st. He says, which was a reported in New York Times, he said that is absolutely with no mitigation. He says the world is looking to us. The world is excited watching us. What happens should never have happened but the stock market is way up and we are going back to work safely, says the president. Stuart okay, by the way, everyone, we will bring you those remarks as he delivered them as soon as we got the tape in our hands you will see it. Thats a promise. Now then we like to bring up to speed of the rather colorful characters of american business. We just dealt with elon musk. Now well deal with adam newman. The man from wework. Susan, whats the news . Susan softbank multibilliondollar rescue of wework looks to have collapsed. Theyre no not paying up 3 billion. The reason why were talking about this is because adam neumann sued softbank. He was in for billion dollar payday and sell some of his stock to softbank as part of the 3 billiondollar deal. Softbank says the conditions were not met for april 1st deadline. They learned pending criminal and civil investigations now, looking into wework and also adam neumann himself. They say adam neumann is upset he would be the main beneficiary of the 3 billiondollar deal. Now remember when wework, first of all they shelved their ipo but part of that was adam neumann had to step down as ceo. He is the founder of the company. As part of that deal he was given a lot of Stock Options and money that including promises of a billion dollar payday when the deal was closed. He upset obviously. This is the downfall of the between softbanks san and main financeer of wework. Because of the huge financeer softbank lost 3 billion in. Stuart softbank guy he lost his shirt on adam neumann and wework, didnt he . He is embarrassing for him. He gave adam neumann unmitigated power in largesse and planes, surfing expeditions. Wework son the verge of possible collapse. They had to lay off another 2400 individuals recently. Theyre looking to get out of the longterm leasing deals and a lot of this real estate, especially with coronavirus and covid19 the way the economy is going. Wework might not even be here in the next year or few years. Stuart so adam, all these wework people are laid off, they got nothing and adam neumann sues for his billion . Extraordinary stuff. Good lord. Susan thats right. Stuart thanks, susan. We got this. A Las Vegas Company has developed, wait for it, a selfcleaning slot machine divider. Ultraviolet light is used to kill the virus between the thing. Now we, we are going to show you how the thing works. We got the guy on the show. Plus we got tape from President Trump coming our way, very, very shortly. Short commercial break beforehand . No. Keep reading stu. Well go to the break later. Well read up until the point where we got the president. We got one minute to go. Here is where i do a little tap dancing. Here is what else weve got coming up for you. Nicolas cage, yeah, the actor, he will play tiger kings joe exotic in a new miniseries. When can we see that . Well tell you a little later in the show. Meanwhile as we get ready did to hear directly from the president , i tell you that rally is holding. Were up 300 points for the dow, 140 for the nasdaq, 42 for the s p. Two reasons here. Were opening up the economy, investors like that. And trillions of dollars from the Federal Reserve and from congress are hitting the economy, right about now, and market just loves it, because that means, we got a lot of money pouring in and the economy is beginning to open up again. Now, we do have that tape. It is from the president. This is as he came out of white house, approached the rope line of reporters. Here it is. Hello, everybody. So im leaving for arizona. Were going to hon we will plant which is doing great work for us. It is a great day. I love arizona. Go ahead please. Reporter [inaudible]. I just got information. Nothing to do with our government but i just got information on that. So well find out. We just heard about it. But whatever it is well let you know but it has nothing to do with our government. Reporter [inaudible]. Because the house is a setup. The house is a bunch of trump haters. They put every trump hater on committee. Same old stuff. They frankly want our situation to be unsuccessful, which means death, which means death. And our situation will be very successful. The house has put on a committee, an Oversight Committee of Maxine Waters and maloney and same people. And it is just a setup. But dr. Fauci will be testifying in front of the senate, and he looks forward to doing that. Reporter [inaudible]. But the house i will tell you, the house they should be ashamed themselves. Frankly the democrats should be ashamed. Because they dont want us to succeed. They want us to fail so they can win an election which theyre not going to win but they want us, think of it. They do everything they can to make things as bad as possible and right now the stock market is way up. Everybody is excited. Theyre going back to work. Safely, but theyre going back to work. Were opening up our country again and this is what were doing and ill tell you the whole world is excited watching us because were leading the world. What happens should never ever have happened. China should informed us they had a problem. Reporter [inaudible]. Say it . Reporter talking to president xi i have not spoken to him. I have not spoken to him. I might, but i havent spoken to president xi. I have not. Yes, jennifer . Reporter New York Times numbers about the virus wrong . That is a report, that is a report with no mitigation. Based on no mitigation but were doing a lot of mitigation. Frankly when the people report back, theyre going to be social distancing and theyre going to be washing their hands and doing the things that you are supposed to do. We wont be going into stadiums full bore yet. You know, for events and soccer and football, all of the different events. Baseball, i hope baseball can get going. But they wont be going in full bore yet. At some point hopefully in the nottoodistant future that report is a no mitigation report and we are mitigating. Reporter [inaudible]. Where the virus came from and [inaudible] i think we do but im going to, well be reporting on it over the next period of time, steve. Well be reporting. There will be plenty of people that ask me that question and we will be reporting very definitely over a period of time. Reporter are you concerned about all the people traveling today and [inaudible] no, i dont have any. Everybody traveling has been tested. We have great testing. Literally they have been tested over the last hour. And the test results comes back in five minutes. We have great testing. They wouldnt be allowed to travel with me. It is not my choice, it is very strong group of people that want to make sure they are tested, including secret service. So theyre all tested. Everybody traveling on the plane. The only question i cant answer, has the press been tested. I suspect maybe has the press been tested . Steve, have you been tested . Reporter not today. I trust you. I trust you. Reporter [inaudible] say it . Reporter [inaudible] i think it is a masked facility, right . If it is a mask facility, i will. I dont know if it is a masked facility. Were going to see honeywell. They have done an incredible job on many fronts. So im going to pay my respects to a Great Company and a great state, the state of arizona. Reporter [inaudible] they make n95, yeah, and they make them good. They dont make you the ones that dont work like we got sent from certain other countries, no, no, like other people got sent from other countries. Were making massive numbers of matchings. Were making our ventilators. We have the best testing anywhere in the world, not even close. The antibody tests, you see what is going on with that. That is going to be something look we have so much testing, i dont think you need that kind of testing, that much testing but some people disagree with me and some people agree with me. But we have the greatest testing in the world. Then we have the most testing in the world. Reporter many states are beginning to reopen, theyre not following criteria in terms of well the governors, have, yeah, it is a fair question. The governors have, i have given them great discretion. I respect the governors. I have given them great discretion. If, however, i see somebody doing something that is egregious or wrong, i will stop it in two seconds. Many of the governors have called me up and asked my opinion but, and, really a lot of them have, the relationship is very good. But you know the governors are given, like on story like that where theyre going down and going down rapidly, but maybe it is short of the 14 days, theyre given a certain amount of discretion. If i see something wrong though we will stop it. Reporter [inaudible] 134,000 debts by august, doubling previous prediction. Are you concerned that is happening because some states are relaxing guidelines. That assumes mitigation. No were letting people out but the fact were letting people go and, go to their jobs they have to do it. You know, if they held people any longwer the shutdowns and youre going to lose people that way too. You already have, im sure. But between drug abuse and, i mean they say suicide, a lot of different things. There is no win, just so you no know there is no great win one way or the other. I tell you where there is a win. Well build a country, i did it once, two months ago we had the greatest economy in the history of the world, best employment numbers we ever had in history, right, everybody agrees, even cnn agrees with that one but i will say that, well do it again. Thats what were starting. And i view these last couple of days as beginning. Well build the greatest economy in the world again and it is going to happen pretty fast. Reporter [inaudible]. That is with no mitigation. Were doing mitigation. We have a lot of mitigation. The fact theyre out, theyre mitigating, theyre social distancing, they all know that theyre washing their hand as lot but we have to get our country open. We have to open our country. So you have all reports models have been very inaccurate. I have seen models that are very inaccurate, one model that is very important is that if we did this a different way we would have lost more, much more than two million people. And we did it the right way. We did everything right but now it is time to go back to work. So im going to arizona. I will see you there. Thank you. [reporters shouting questions] we want them to be transparent. We want to find out what happened so it never happens again. Okay . Reporter [inaudible]. Stuart there you have it, the president emerging from the white house on his way to arizona, answering reporters questions. Three points that he made, i will bring them to you. Dr. Fauci will testify before the senate but not before the house. The president says the house is just a bunch of trump haters who dont want us to succeed. They want us to fail so they can win the election. Fauci will not go to the house. Item two, the president says were opening up the economy safely. Were leading the world, the world is watching us and were leading. Third point, he is going to rebuild the greatest economy in the world and do it fast. That is from the president. No impact on the market. In fact it actually moved up a fraction after we heard what he had to say. Dow industrials still up over 300 points. S p up 41, look at nasdaq, up 141 points as we speak. Take a look at this. I will call this a good idea. A Las Vegasbased startup born in the middle of the crisis has invented that. That is a selfcleaning slot machine divider. Talk about a good idea . Jeff smith is the, is the ceo of the company that created this. That is the rose gaming partitions. Smith rosen gaming partitions. Jeff, this is a terrific idea because if you put it in a casino, you can pack more people into your slot area. You dont have to maintain this crazy social distance, am i right . Stuart, you are correct. Actually maintains the integrity of the, how slot games should be. It has a nice lighting feature as well. At the same time it cleans the surface and gets rid of that bacteria and disinfects at the same time. Stuart are they installed anywhere at this point . Not at this point. We are doing a soft launch this month. Well be ramping up to full in june. Stuart how much does, i mean, i dont have the cost here. What is the cost of each divider, how much would it equip and cost, for example, to equip bellagio . Were not going to get into that at this point but we are discussing, we have a lot of demand out there right now that were discussing with individual casinos. So, that price point will be agreed upon very soon. Stuart that is subject to negotiation i take it . Yes, sir. Stuart i understand that. You got leverage because you got a good idea, we can pack more people in. You got leverage, jeff, you really do. I think its happened all so quickly. This company and the idea came up and matter of three weeks. Stuart did you sigh this coming . I think what happens, stuart, when you have a collection of engineers and Product Developers that are, have discussions driven by fear and uncertainty, you tend to be solution based, and then that solution turns into a product relatively quick but this is quick. Stuart wait a second. Literally sitting around with your engineers, just hanging out and thinking about the virus and thinking about the lockdown, lets use, what is it, ultraviolet light for the dividers, is that how it happened . Yes. We saw some similar to that, we saw solutions out there went kind of halfway and they werent just going to be what we thought would be a solution in the long term. So we came up with something that really, it solved a lot of problems. And it still maintained integrity and pizazz of las vegas floor should be about. It kept people safe. Stuart jeff smith, what is it, smith rosen smith rosen. Stuart smith rosen. Good luck, jeff. Good luck with those negotiations. I would love to see your stuff in the casino. Thank you very much, stuart, i appreciate it. Stuart that time on a tuesday. Coming up on 10 51, three seconds to go, there it is, 10 51. We are now joined by Brian Kilmeade, host of the Brian Kilmeade show. Brian, i think youre own board with this get back to work. I think the floodgates are open. I think it is a stampede to get back to work. Before we start, i want you to listen to what a barbershop owner said yesterday on our show about getting back to work and opening up. Roll tape. I totally believe that our president , donald trump, can bring this economy back to where it was. Were the most prosperous country in the world and we just need to be allowed, states need to be allowed to open up and get us back on track. We need to be americans again. Stuart brian, he is a barbershop owner defying the rules. He is working, he is not supposed to. I think he is typical of a lot of americans. Yes. Like the people that were protesting in boston. They are very frustrated. They feel as though their area of their state, if not boston should be opened. There is areas of california, two or three counties that said we have no cases. We need to be open. And then if youre going to open up every beach except for Orange County section which happens to be conservative, when aerial views show people were social distancing, cops and firefighters said that was my witness, that is called oppressive leadership. I call it laziness, stuart f youre governor of a big state, small state, walk around. Problem in the city, perhaps, walk around. See if farms open up. See if open suburbs can go. See if the businesses are ready to go. As they spread out the restaurant with a floor plan, you know that sports store, bait and tackle place, can we see how they look . Do they look like theyre ready . If there is a line outside lowes, cant there be a line outside after Jewelry Store on mothers day . Think about this you put your life into your Jewelry Store, mothers day is payoff day. You can order online something you havent seen or felt. Go to downtown man or woman, you cant, because governor will not empow ear mayor to make the decisions in comprehensive way. Laziness. Stuart listen to this one, police officers, nypd officers, they say policies enforcing social distancing needs to end. Crowds of people out and about during the beautiful weekend in new york. Cops were getting into real disputes with people trying to enforce social distancing. They dont want anymore of it. There is a revolt going on, brian, which can only open the floodgates more. That is my opinion. I see the Police Benevolent society, chairperson there, came out listen well not enforce this anymore. Think about this, hard enough being a cop. They pay the city cops ridiculously low wages, great benefits, very bad wages. Go into the city, toughest job, have no respect for the mayor, with a brand new police chief, they have to tell people, separate. Really . That is my wife that is my husband, thats my son. You, im a stranger. Go away. Couple go here. You just started dating . Is it okay for them to stand next to each other officer . Im not sure. It is an impossible situation. Deal with people like were adults. You ask people, hey, buddy you need a mask. You dont give them 1000dollar ticket. Guys, we need you to separate. You cant huddle together. Surprised many people will listen to you. The same people that obey traffic signs and obey the law will obey these rules. Law enforcement is unnecessary burden on them. I give patrick lynch, head of that, at that Society Credit for standing up to his mayor. Stuart i got a positive for you. I think it is a positive. The nfl is probably going to announce the 2020 season schedule maybe thursday. That to me is real progress. That is opening up, bring them back. That is what i say. Right. Theyre going to have to practice. They will practice in july and august, if they expect to play in september. Look, the nfl, i believe has a gameplan for october. A game plan for december, where you play the super bowl february 28th. You know what theyre saying . Were playing. We dont know if it will be in front of fans, partiallyfilled stadiums. Were playing. Not letting you down. College football they have to play. They have to finance their athletic departments. They have to get the kids in front of scouts. They have to give division 2 and division 3 players one last shot playing high level competition. They have got to play. They have got to find a way to play. Backing off i saying too dangerous i dont think is an option. Getting your scientists in to meet with Health Care Workers to sanitize the locker room. Temperature checks on players two or three times a week, along with rapid testing, tell me how to make it work. Dont tell me why i cant. Stuart absolutely. That should be the mindset. Enough i quit, im staying home. That is not the American Mind set. Stuart with all the way, brian. Glad youre on the show this morning. Times up, great stuff. Brian kilmeade. See you soon. 22 meatpacking plants closed in nebraska over the last couple months because of the virus. It is affecting 35,000 workers. What will it take to get them back up and running . We need them. I will ask nebraska Governor Pete Ricketts in just one minute. Well bes back. Its smarter tray for smarter trading decisions. Fidelity. I wanted more from my copd medicine thats why ive got the power of 1, 2, 3 medicines with trelegy. The only fdaapproved oncedaily 3in1 copd treatment. Trelegy the power of 1,2,3 trelegy 1,2,3 trelegy man with trelegy and the power of 1, 2, 3, im breathing better. Trelegy works three ways to open airways, keep them open and reduce inflammation, for 24 hours of better breathing. Trelegy wont replace a rescue inhaler for sudden breathing problems. Trelegy is not for asthma. Tell your doctor if you have a heart condition or high Blood Pressure before taking it. Do not take trelegy more than prescribed. Trelegy may increase your risk of thrush, pneumonia, and osteoporosis. Call your doctor if worsened breathing, chest pain, mouth or tongue swelling, problems urinating, vision changes, or eye pain occur. Think your copd medicine is doing enough . Maybe you should think again. Ask your doctor about oncedaily trelegy and the power of 1, 2, 3. Trelegy, 1,2,3 man save at trelegy. Com. Stuart did you know we use atomic clocks . We are precisely at 11 00 eastern time, on the button. Got a rally on our hands. More states are reopening and moments ago, President Trump said the economy will rebound and fast. Look at that, the rally holds, up 330. Those companies on your screens now, they are just some of those which will report earnings today. The big one is disney. That comes around 4 00 this afternoon eastern time. Thats a very important report. Now, in our last hour, we received the latest read on the Services Sector for april. On your screens is a number, 41. That means the Services Sector is still contracting but it was not as bad as it might have been. It did, however, end 122 straight months of growth. Okay. Today, two more states easing lockdown restrictions. California is going to reopen laguna beach and the san clemente beach pier. Washington state, Outdoor Activities get the green light at state parks. We are Still Holding on to that gain, up 344 for the dow. Now this. President trump leads the nations virus response. Yes, he does. He was from the very beginning the leader of it all but his leadership style, in my opinion, is now changing. For weeks, he dominated the virus news with daily briefings. Sometimes they lasted for hours. He took any and all questions. He brought out the medical response team. This was a National Crisis and he was clearly in charge. The hostile media had little impact outside their own echo chambers. The president s Approval Rating actually in the gallup poll went up to a record high but he was in the white house, in the white house organizing his teams response as the virus hit and doing daily briefings. Now a shift. We have moved from lockdown to reopening mode and the president s leadership style has shifted, too. The daily briefings, well, they are winding down. Now hes Holding Meetings and Conference Calls with state governors and executives from a variety of industries. What do you want, what do you need. Thats what hes asking. The president s traveling again. Today, he is now heading to arizona, to inspect a honeywell facility thats making face masks. Its his first trip outside washington since he visited a hospital ship. Hes out and about, urging on the recovery. Very different from the white housebound president figuring out treatments and lockdown schedules. The left and their media allies are nervous. The election is six months away and the president s handling of the crisis is getting a lot of voter approval. Joe biden, hes still stuck in his house, fighting a sex assault allegation. Nancy pelosi refuses to bring the house back to washington and senator schumer complains about the risks of going back to d. C. The president leads, the left stalls, the media whines. Some things never change. Come on in, ashley. You better tell me where the president is going today and whats he doing when he gets there. Ashley well, he is headed to phoenix where he will go to the Honeywell Aerospace facility, and this afternoon hes going to take part in a roundtable discussion on supporting native americans. That is on the agenda. You can see as he left earlier today, as we have seen, he spoke to reporters before he left. He will be taking part in that roundtable i just talked about, then he will do a tour of the honeywell facility that makes those masks, the n95. Theres the actual timetable for you. He will be doing that tour at 4 15. Then at 4 30, he will be speaking to making some comments after the tour and as you know, who knows what the president will say, but he will certainly have something to say following the tour. By the way, anyone who comes in contact, who is scheduled to come in contact with the president today has already been given a covid19 test ahead of time. Its all part of the strict protocol in the day. Those results will be available, by the way, on anyone who is going to meet him, before the plane lands in phoenix around midday. So the utmost precaution and yes, the press pool is also given a swab test to make sure that no one can pass on the coronavirus to the president. Stuart but with all those comments at different times during the day, hes going to dominate the news cycle completely for the entire day. Getting out and about. Now, moments ago, we did hear from the president speaking on the economy. Watch this, please. Two months ago we had the greatest economy in the history of the world, the bestest mroiment numbe employment numbers we ever had in history. We will do it again. We are going to build the greatest economy in the world again and its going to happen pretty fast. Stuart i want the bring in paul romer. Hes with us today, former world bank chief economist. Welcome back to the program. You heard the president there. Hes going to rebuild the greatest economy in the world and hes going to do it fast. You are shaking your head. Im not sure what your reaction is. Tell us, how do you feel . I think this could take some time. Recoveries from recessions are typically extended out over a year or more, and the issue we are facing right now is theres a great deal of uncertainty in peoples minds and quite a bit of fear about whether or not they are going to be exposed to some risk of infection when they go back to work. Unfortunately, the death rate is high, it looks like now the forecasts are that it will climb, so its quite likely that many people will be hesitant about resuming normal activities. Stuart fair point. The speed of the recovery is dependent upon the speed at which people feel safe and comfortable going back. Entirely understood. Thats right. Stuart let me ask you about this. In the april through june period, United States treasurys going to borrow 3 trillion to cover the cost of virus of what the virus has done to the economy. 3 trillion. Does that piling up of debt have any concern for you . If that were to continue month after month, year after year, we would eventually reach a point where the debt level was unsustainable. We are not there yet. The world sees u. S. Treasury debt as a very valuable asset. Its the safest asset, the one asset you know you can convert into some other kind of form, if you need to make a payment, if you need to do something, if you need to purchase something, so i think the world will be happy to accept this debt. The only thing that i think we have to keep in mind is that part of why its so valuable to people is because everyone thinks its safe. If we have more speculation about somehow the u. S. Is going to renege on some of its debt, punishing, as a way to punish somebody, that would just be a disaster. We need to just stop that conversation and reaffirm the basic principle that when the United States government borrows money, it pays it back. Stuart i think we need china to buy our debt. We are borrowing an awful lot of money. We have to get some of it from china. In the last hour, President Trump doubled down, saying china should have informed the u. S. About the virus and that hes not spoken to president xi. This clearly, theres an ugly relationship here between china and the United States over the virus. Will they be prepared to keep on buying our debt the way they have in the past . The chinese have always treated decisions about what they do with their assets, what assets they buy, they have always treated this purely as financial and economic matter. I expect that that will continue. As long as they see u. S. Treasury debt as a safe and valuable asset to hold in their portfolio, they will keep holding it. Stuart i do agree with you, sir, on a couple of people on this program, a senator suggested we not repay the chinese the trillion dollars that we have borrowed from them. I agree with you entirely, that is one of the worst things i have ever heard, because we have never reneged on our debt and the very suggestion that we might would destroy confidence in the safety of our debt. Tell me one more time, please. Its just at the same time that we are asking them to take some more debt, we are saying by the way, we might not, we are talking about not repaying it. Thats not a very attractive proposition for somebody who wants to consider buying your debt. Stuart indeed its not. We want your money but were not going to pay you back. Thats not a good idea. Paul romer, thanks very much for joining us. We appreciate it always. Thank you very much. Im going to put avis on the screen for you. There you have it. Down 3. 5 . Their revenue, they say their revenue will drop 80 april and may. They expect a bit of a rebound, bit of a comeback in the month of june as the country reopens but the stock is down 3. 5 . All kinds of travel companies, avis is one of them, getting really hit. Netflix has turned around. They were down earlier. Now they are up. Theyve got a lot of new content in the pipeline, because while filming is halted in america, they are filming in south korea, filming in iceland and filming in japan. The pipeline is loaded up. Theres new stuff coming at you. Shake shack, same store sales down 12 last quarter. Thats a bit less than they feared but nonetheless, the stock is down 4 . Beyond meat, they report their earnings after the closing bell today. The stock was up 49 in the month of april. Prior to those numbers. They are at 98 a share on beyond meat. The Cheesecake Factory also report later on today. They are just off 12 cents. That would be a squeeze on all sides. They furloughed a lot of workers and told their landlords we are not going to pay the rent. The stock is all the way down at 20 bucks a share, virtually unchanged ahead of the earnings. Then theres norwegian cruise lines. They say theyve got a big cash problem. Susan, whats the future . Deal with norwegian and the future of the whole industry, please. Susan i think its handinhand because this morning, the story is trending right now, there are questions about the survivability of a lot of these cruise lines. Norwegian even said it today, saying survivability is a concern, bankruptcy might be on the horizon. They Just Announced they just got 400 million from a private equity fund. They need around 2 billion because they have 6 billion in longterm liabilities and they forecast look, we are going to lose money in the First Quarter of this year, we are probably going to lose money for the entire year. Think about it. Think of all the itineraries that have been canceled so far because of covid19. Three to four million is lost on every ship that doesnt set sail. Given the bad p. R. , the press with the diamond princess stranded off the coast of japan and the grand princess, a lot of these ships are quarantined with passengers on board that had covid19 and by the way, a slew of lawsuits that are being right now levied at these cruise lines by passengers that were unhappy about being unsafely trapped on a lot of these ships. There are questions about whether or not these cruise lines will survive. Stuart i think its the cruise lines and airlines have been hit super hard throughout the travel industry. Susan theres a difference, because the airlines got 25 billion in government help. The cruise lines got zero because technically they are not u. S. Companies. They have flags, they are domiciled in liberia, panama. The airlines got 25 billion, a lot of that they dont have to repay but the cruise lines got nothing. Stuart well said. Good point. Thank you, susan. The u. S. Travel association, new guidelines to help travelers feel safe. What does that what do the new guidelines say, lauren . Lauren yeah. How do you make people feel comfortable traveling again. They are redesigning the high traffic spaces. You will see a lot of sanitization and handwashing stations. Automated entrances. Plexiglas screens. Touchless checkin. Health screenings for employees. They outlined six main things. The ceo of the usta said look, this comes with a cost to implement but the cost of not doing it is far greater which would be essentially bankruptcy. They are focusing first, get Domestic Travel back. Number two, corporate Business Travel back. Number three, worry about International Travel a bit later. Stuart what do you think about that . Corporate travel within america comes back . Im not so sure its going to come back that strongly. We have gotten used to teleconferences. Lauren im with you on that. Because with a flight for a business trip comes a hotel and meals and Companies Might say you know what, just do that on zoom or Something Like that. Im with you. I dont think Corporate Travel comes back in a big way. But domestic, hopefully and then eventually international, sure hope it does. Stuart i got you. Im quite prepared to jump on a plane to go on vacation but i dont particularly want a business trip to california. Lauren take me. Stuart you want to go . Bring the kids. Okay. The democrats are all sharing their ideas on how and when to reopen america. Whos winning this socalled popularity contest . We are going to ask Katie Pavlich. Shes on the show coming up. And concerns about a meat shortage as tyson foods warns that more plants could soon slow down production. We see that warning. Next up, nebraska Governor Pete Ricketts. He has a whole bunch of meat factories and meat production facilities in his state. We will ask him what hes doing to protect americas food supply chain. Now more than ever, you need technology you can rely on. And people you can rely on. Im a Dell Technologies advisor. Me too. Me too. Me too. And if youre a Small Business, were with you. We are with you. Were with you. We want to help. So well be right here. At home. Answering your calls. Providing support. And standing by you every step of the way. Bye bye. And now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Every day, President Trump resembles more and more herbert hoover, the president who ignored the great depression, who didnt care to put america back on its feet, who has been now remembered in history as someone who failed at the most basic responsibility which is to protect the people he serves. Stuart well, i suppose we should have expected it but there you have the new york city mayor sounding off, of course, on President Trump. All right. Lets get on to the real news here. New york and california are beginning to open up. Ash, you got to tell me what are they doing . Ashley well, they are. Lets take a look at the map, if we can. Maybe begin with new york. Its going to use a fourphase operation. Now, four phases means at the very beginning, its going to be very minimal, low risk, low capacity, but as we go over time, the ability to open more and more will be seen. At the very end you will have arts and Entertainment Venues because of the large gathering of crowds at the very end there. We wont see that for awhile but we will start to see in phase three, we will see restaurants start to open up. This is all encouraging, if nothing else, just to look at it on paper. Thats very important. Then when you go to california, they too already now in phase one. We will be getting phase two on thursday. Gavin newsom, the governor of california, under a lot of pressure as we know. Certain retailers can offer curbside pickup. Under pressure is the understatement of the day. Retail manufacturing can resume. Order does not include office spaces, restaurant and shopping malls as of yet in california. We will get there, but we will find out more on these reopening schedules in california on thursday. But as you know, the beaches have been such a contention in california. We saw those huge protests in huntington beach, in Orange County, when at the same time down in san diego, just a few miles to the south, we had the mayor of san diego on yesterday who said hey, we are following the rules, theres absolutely no reason why we cant be out on the beaches. So california, slowly, i say slowly but surely trying to get back on track. Stuart you cant treat even californians like children. You know what i mean. Thanks very much, ash. All good. All good. 22 meatpacking plants have closed in nebraska over the last two months. Some employees have gotten the virus. They closed the plants. Nebraska Governor Pete Ricketts is with us. Sir, weve got a meat shortage. I see shortage of supplies in some supermarkets here on the east coast. When can you get those people back to work and the meatpacking plants in Nebraska Open again . We are working very hard with our Food Processing facilities. We did just have a couple that have closed for just a few days, for example, tyson in dakota city closed on friday and monday, over a weekend, to do some deep sanitation. And we are working to be able to make sure that they are taking the steps to properly social distance so we provided our experts at the university of Nebraska Medical Center to take tours, we provided a covid playbook for them to be able to establish best practices. I have weekly phone calls with the meat processors to be able to go over those and to talk about best practices and questions and things they may have. We provided our National Guard to be able to help them do testing at some of their facilities. So we have been doing a lot to be able to help them and the meat processors admittedly have a difficult environment to be able to socially distance but they are taking a lot of steps like putting plexiglas between workstations, plastic in lunchrooms so people eat individually, testing people as they come into the plant to make sure theyre not sick, looking at the air handling systems, putting up Hand Sanitizers and more sanitization of the entire facility. All those sort of things to be able to make sure they have a healthy environment for their folks. Stuart weve got to have that healthy environment. Thats an absolute must. I understand that. Can you hold out some hope that maybe some of those plants will reopen next week . I ask the question, i press the time frame because livestock, forgive me for saying it, is piling up, cant be processed and may have to be euthanized. Can you give us a time frame for reopening . Yeah. Actually, almost all the plants in nebraska are open right now. Many of them are at reduced capacity and youre right, because of the reduced capacity or temporary closings and so forth, some producers have had to euthanize their hogs and it certainly is creating a strain on the entire food system. Thats why we are working so hard to be able to help these folks and then its not just about the plants themselves. Its also about the communities and making sure the folks at home are socially distancing and oftentimes this is challenging because english is not the first language. Multigenerational households, lots of people in the households, so theres a lot of reasons why this is a difficult environment to socially distance both at work and at home, but we are working to be able to make sure we keep the plants open. Stuart okay. Governor, thank you very much for joining us, sir, on a pressing subject and we are very much obliged to you for appearing with us today. Thank you, sir. Thanks, stuart. Stuart its happening now. The online Gaming Company gan, gan, it just opened for trading. Ive got them, let me see the board, please, i cant see the price without that and i dont have it. You got a price on it . It just opened. Okay. I will get it to you whenever okay. Its up 318 . Whoa talk about that. That is astonishing. What a gain. What does that make about the pricing when they went into this thing . Look, earlier today, i spoke with gans ceo. Listen to what he had to say. Roll tape. Through april we saw 50 month on month increases in the number of active players online. Revenues flowed through. Its been an extraordinary shift in our favor. Stuart yeah. Ill say. I asked him look, you got no sports to bet on. He said okay, we are going to make do with casino gambling online. Casino gaming online. That was a success. 300 up on the first moments of trading for gan limited. How about that. Check the price of oil, surging to its best winning streak in nine months. Right now, youve got oil up 16 , 23. 83. Demand is coming back, supply has been suppressed. Up goes the price. Tesla. Elon musk just had a child or his partner did. Thats in the news there. And hes getting rid of his personal possessions, selling two properties. None of that appears to be affecting the stock. Why should it. Its at 773. Thats up 12 bucks a share. There you have tesla as of right now. Indiana reopens for business. Big manufacturing state. We are going to take you there as they are getting back to work. Bernie sanders thinks rent and mortgage payments should be canceled until the pandemic is over. What do republicans say about that . I cant wait. Well be right back. And let me tell you something, rodeo. I wouldnt be here if i thought reverse mortgages took advantage of any american senior, or worse, that it was some way to take your home. Its just a loan designed for older homeowners, and, its helped over a million americans. 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Learn how homeowners are strategically using a reverse Mortgage Loan to cover expenses, pay for healthcare, preserve your portfolio, and so much more. Look, reverse mortgages arent for everyone but i think ive been round long enough to know whats what. Im proud to be a part of aag, i trust em, i think you can too. Trust aag for the best reverse mortgage solutions. So you can. Retire better. The house is a bunch of trump haters. They put every trump hater on the committee. The same old stuff. They frankly want our situation to be unsuccessful which means death, which means death, and our situations going to be very successful. Stuart all right. There you heard it right there from the president. A bunch of trump haters. Thats how he refers to the house of representatives. Lets bring in Katie Pavlich, fox news contributor. Comboe at go at it, a bunch of trump haters that want us to fail. Thats kind of red meat for you. Red meat but also based in fact. You have nancy pelosi refusing to call the house back in to deal with this crisis financially, as you have seen the government trying and treasury trying to work with congress to get some kind of new program to help Small Businesses as they continue to lose employees and grapple with trying to figure out how to navigate this process. Then of course, you have this new panel that nancy pelosi has put together with james clyburn, with a number of democrats who called for impeachment the day that President Trump was elected. Now saying they are going to investigate the way that the administration has handled this crisis. Now, there is room for review, obviously, especially if we want the prepare for Something Like this in the future given that china seems like they have no intention of, you know, doing any kind of review on their own in preventing this from happening. But its one thing to do a review to protect the country from future pandemics. Its another to use it with very political actors in the house to go after the president politically in an Election Year while refusing to come back to work for the American People. Stuart that makes no sense to me. You refuse to come back, refuse to bring the house back, postal workers are at work, Grocery Store checkout people are at work but nancy pelosi cannot bring and senator schumer says its dangerous to bring people back to washington, d. C. When theres so many virus cases in d. C. I mean, i dont know where theyre coming from. That is not leadership. Sorry, its not. Its not leadership and its also very elitist. As you just mentioned, there are a number of people on the front lines of this, in a dangerous situation, yes, and they are still doing their jobs to make sure americans have the things that they need. But Congress Instead is playing politics and in an Election Year, its very convenient for nancy pelosi not to bring the house back to vote on legislation so that her members who are up for reelection in the fall dont have a record other than the legislation they have already passed this year to run on. So shes giving them a pass when it comes to the politics of this and not giving republicans any kind of ammunition to go after them on the campaign trail because shes not forcing them to make leadership decisions and actually cast votes that are tough for people around the country. Stuart i tell you. I was urging one of my children to get into the political game. I think i might retreat from that position. Why would you do that . Stuart okay. I will get to that very brave of you as a father. Stuart hold on a second. I want you to take a look at a couple of tweets. One from senator sanders, one from mr. Cruz, senator cruz. Bernie sanders says cancel rent and mortgages for the duration of the pandemic. Cruz responds how about we cancel taxes. That captures it perfectly, doesnt it. The far left, oh, we dont care about business. The right, hey, lets get back to business. Lets make this economy hum. What a contrast. Well, the comment from ted cruz, senator ted cruz, is especially interesting to me because you have the government telling people that they cannot return to work. The government has essentially taken away peoples livelihoods by issuing stayathome orders, by forcing businesses to close for fear of fines, yet they are still collecting things like property taxes. So while businesses are not bringing in revenue, to pay their workers or pay their rent, landlords still have to pay the property tax on these establishments. So that is something that is very interesting and the government not compensating people for taking away their livelihoods. With senator sanders, does he not think theres a domino effect here . If someone doesnt pay their rent, the owner of the building then cannot pay their mortgage, then they then go into default on the mortgage and lose everything. So at some point down the line, somebody is going to have to pay the tab. Theres no such thing as a free lunch. Now, the banks have been pretty good about moving mortgage payments to the back of the loan for a couple of months to give some people some reprieve. But this idea now that this money, these payments that are owed just go away, proves again why people want to get back to work because they want to be able to pay their bills because ultimately, someone is going to pay the price for the domino effect and the building up of all of the costs of the shutdown over the last two months. Stuart wild stuff, isnt it. I want you to talk about Governor Cuomo of new york. Hes popular, we understand. You think its possible that he could be the Vice President ial candidate . I know this is throwing it right at you. Any chance hes the veep for joe biden . Im not sure that Governor Cuomo is willing to play second fiddle for Vice President joe biden and lets not forget joe biden has promised in his party that claims to represent women to appoint a woman to that position. I dont think at this point, especially given the recent allegations of tara reade, that joe biden can take that back. Theres a lot of questioning now from democrats about whether joe biden can move forward based on these allegations. I think that there could be some things down the road that are very interesting in terms of Historical Perspective of the way this president ial campaign is run. We have a couple months until the convention. Governor cuomo has insisted he is not running for president this time but thats what they all say. Stuart isnt it great to be in the news industry, the news business, in the year 2020 . I mean, it just keeps on unfolding in extraordinary fashion. Im loving it, frankly. Katie every day is different. Thats for sure. Stuart we will see you later. Thanks for being with us today. Appreciate it. Dow is up at the high of the day, 386 points, 1. 6 . And ive got another positive for you. Britain and america just started trade negotiations. How about that. Edward, what have we got . Reporter yeah, stu, the formal announcement was just made and in fact, trade talks start tomorrow. They are going to handle them virtually because of the coronavirus. There will be talks pretty much every day, starting tomorrow, for the next ten days after that so may 6th to may 15th. At the end of may 15th, the idea is to have a deal in principle with the United Kingdom. We are talking about 30 different negotiating groups negotiating at the same time basically on this deal. It is feasible this could happen. Back in 2017, the u. S. Started a working group to sort of lay that foundation in order to have a trade deal with the United Kingdom. Then in february of 2019, both sides released objectives on what they want. We generally view the United Kingdom as our friend so this is something that is plausible by may 15th. The u. S. Trade representative Robert Lighthizer in a statement saying this. Quote, he will negotiate an ambitious and High Standard trade agreement with uk, his counterpart, the secretary of International Trade for the United Kingdom, says the uk is a champion of free trade and this deal will make it easier to do business with their friends across the pond. Good news here. Stuart absolutely good news. Thats what we are waiting for. Love to see more trade deals. Edward, thank you very much indeed. M going to shim going to s drone video. That shows thousands and thousands of cars sitting there at the port in los angeles. Now, they are not sold yet. They are having a hard time selling them. I think that might mean some bargains on those cars in the future. We will tell you all about it after this. Meet jim. For jim, comfort is king. Which is why when it comes to his dentures only new poligrip cushion and comfort will do. The first and only formula with adaptagrip cushioning technology. Choose new poligrip cushion and comfort. Stuart not quite the high it is the high of the day. Now were up 402 points. 1. 6 . Big gain on the s p 500, huge gain on the nasdaq as well. Green arrows all over the place. Have a look at wendys. Remember when we told you that they were pushing their chicken products. They are, you know, because of the beef shortage. Got that. Susan, have they put out a statement about pushing chicken products . Susan because theres no beef. I think thats the problem. Wheres the beef. So wendys has put out a statement saying some of our menu items may be temporarily, they say, limited at some restaurants in this current environment and we are working diligently to minimize the impact to our customers and restaurants. I think a lot of customers have been complaining on social media and across a lot of media platforms that there are no hamburgers available at wendys which is their star item. In fact, they have promoted before that they only serve fresh not frozen beef and according to stevens, a financial firm, they estimate 1 in 5 wendys right now lacks burge burgers, meaning there is no beef available for those that want to buy a burger. Now, as for, you know, these i guess shortages, meat shortage it shortages, we heard about costco and krogers limited customers to three items of protein. Slaughter house is down some 37 . Theres a bottleneck at the processing firms, at the processing facilities. We know we have the cattle, we have the demand but processing them is a problem since a lot of them have been closed because of coronavirus spread. Stuart thats for sure. Got that. Thank you, susan. Lets go to indiana. They are reopening. They are in phase two of the governors plan. Jeff flock is in chesterton in indiana. Jeff, businesses are supposed to be opening up. But im looking at your video and theyre not. Whats going on . Reporter thats kind of true. I just met this young lady who runs a dress shop here and you are going to go slow, right . Even though you got the okay to open yesterday, basically . Right. Yeah. No, we decided we are going to go slower. This week we are basically doing online ordering still and then also by appointment. When they come in, they have to wear a mask and i have Hand Sanitizer down here. They have to hand sanitize, then they can go ahead and shop. Just a few individuals at a Time Starting off. Reporter nobody here is just opening the doors, right . No, i dont believe anybody really is. I know ogaras down the street will open reporter bookstore down the street. Yeah, they will open up for a couple hours here and there. Thats all weve got to go ahead and do, do the right thing, you know . Reporter i hear that. Best of luck to you. Thanks so much. I tried to keep a sixfoot i got long arms. Thank you. Be well. Reporter you, too. Thanks very much. You make a great point. Today yesterday, actually, we went into phase two of indianas plan to reopen which meant retail could open but heres another store next door, they are not open either. In fact, if you look at the sign in the window, they say pretty much we are going to be shut down for awhile. You got the dog, you know, place here, professional grooming place, theyre closed for the foreseeable future, not reopening. Hairs the thing. Where would we be without a clever hair studio name. Theyre not open either. Indiana has, i just want to tell you this, theyve got a plan for reopening, a phased way. I think we have something that depicts that for you. They hope that by may 24th, they will open gyms and theaters in indiana. By june 14th, bars and clubs will reopen. Then by july 4th, by independence day, they will have festivals and fairs again and there will be no restrictions on how many people can come and go and all of that. Thats their hope right now. As i said, as you can see, theres not a lot of activity even though its allowed right now. Stuart good report, jeff. You are telling us exactly whats going on right there on the ground. Those businesses can reopen but they have not. Interesting. Staying in indiana, i will bring in indiana senator, republican mike braun. Senator, you just saw whats going on there with retail operations. They can open but theyre not open. How about factories . Because your state is heavily dependent upon manufacturing. Are they able to open up and have they . We have 92 counties in indiana and there are probably 10 to maybe 15 that are in densely populated areas. You are going to find that across the state. I never did like the one size fits all approach, because lets go down into my neck of the woods, southwestern indiana. Im going to bet that almost every store in downtown jasper is open today, because we had so few cases. We paid attention to the rules. So chesterton is doing what makes sense there. I like that approach across states, county by county, and state by state across the country. Manufacturing, there are many manufacturers, many Retail Businesses that were deemed nonessential. Thats kind of a bureaucratic decision. That could have been open during this entire stretch because they would have practiced the guidelines, did not have dense traffic. Their manufacturing process even if they werent in an essential business, could have accommodated and stayed open. When we do the debrief down the road dispassionately, we will learn a lot from it but generally, one size fits all never works, because we are a diverse country, we are populated differently across it, and we will figure all that out through this and be ready, better prepared next time around. Stuart i just want to talk to you quickly about borrowing and spending. The treasury is going to borrow 3 trillion april through june, an enormous amount of money. Are you concerned about looking to the future, borrowing more money because we are going to spend more money, with another rescue plan . Is that a dont do that to you . Well, for a guy like me thats a main street entrepreneur whose degree is in economics, never thought it would come into play like it is now, you cannot do that indefinitely into the future. There are only a handful of us here that really understand it and have the political will to do something about it. That will come home to roost. We werent supposed to be where we are now in public debt until about three to four years down the road. But we got structural trillion dollar deficits, everybody here seems to shrug it off. This will advance the discussion of how we correct the systemic issue with d. C. From my little over a year of being here, i dont know if we will be galloping to the task of doing it, but its going to be there for all of us to contend with. Stuart yes, it is. It aint going away, thats for sure. Senator braun, always a pleasure. Thanks for being with us again, sir. Thank you, stu. Stuart couple of stocks to watch. First off, United Airlines. They got a 5 billion grant from the feds to keep workers employed through september but what happens come october if things dont improve . Its not going to be good. We will tell you all about it after this. Limu emu doug and now for their service to the community, we present limu emu doug with this key to the city. [ applause ] its an honor to tell you that Liberty Mutual customizes your Car Insurance so you only pay for what you need. And now we need to get back to work. [ applause and band playing ] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Stuart im going to run that drone video again. Thousands of cars, unsold, new cars, at the dock in los angeles. Ashley, ive got to believe that when Car Dealerships reopen, they are going to be selling those things at a bargain discount. What do you say . Ashley they certainly are. Look at that, imported cars stuck at the ports, nowhere to go. Its like the oil. Nowhere to put it. Nowhere to put these cars. Whats interesting, stu, is i think the month of march will be the most brutal. Already we are seeing a few signs of life here in april. Those auto makers, thanks to cheap money, can get big discounts, zero percent interest loans for seven years, up to seven years, but the numbers are going to be brutal. One dealer said he hasnt seen this poor a showing in the month of march in over four decades. But there are going to be deals, especially for used cars. Weve got more than four million leased cars coming back on to the market this year alone. So you know what, prices are going down, financing deals are going to be around. Stuart thats what i wanted to hear. Prices are going down. I love a bargain. I do. All right. Now, this is part of the travel industrys problem here. There are some more problems. United airlines reportedly laying off maybe 30 of their managers come october. Hertz, the car rental people, heading towards bankruptcy. The travel industry, in my opinion, decimated for now. Wheres it going in the future . Jeff hoffman knows all about this. He helped launch priceline and expedia. Jeff, look, welcome back to the show. Im just intrigued about how the entire travel industry is going to emerge from this virus crackdown. How do you see it going . Well, this is completely unprecedented, stuart, and were not going to emerge all the way back from where we were. We already know that airlines, i mean, with Airline Revenue and traffic down 90 , and getting worse if you ask me, they now have said you cant fly without a mask and theres nowhere to buy masks, so there went 3 of the 5 passengers that they did have. Business travel wont come all the way back because work from home, companies will do more virtual work. Leisure travel will come back, but slower than people anticipate, because people are still going to be afraid to go out. They are going to be afraid to travel internationally. They are going to not want to be in crowded places. Even vacation travel will come back more slowly and the industry itself, when you talk about a 25 billion bailout, how do these airlines recover . Because now, they have massive debt, you know, thats going to really hurt their ability to ever get back to profitability. We have a serious problem with the travel industry. It will come back, but its going to take awhile. Stuart i think theres going to be structural change like you have never seen before throughout the entire travel industry. Jeff, im sorry it was so short. Ive got to go. One of these hard breaks coming up. Come back soon. Ive got a lot more for you a bit later on this week. More varney after this. Heres the thing about managing multiple clouds for your business. When youve got public clouds, and private clouds, and hybrid clouds things can get a bit cloudy for you. But now, theres the Dell Technologies cloud, powered by vmware. A single hub for a consistent operating experience across all your clouds. That should clear things up. Stuart look at this. Big tech is on a tear again. Apple close to 300. Amazons up. Facebook at 210, up nearly five bucks a share. Microsoft on the upside to the tune of nearly 2 and google is up over 3 . Big tech yet again leading the overall market sharply higher, green across the board. Neil, its yours. Neil the favorite part of the show for me though was you looking at all of those cars and finding a good buy there. That crystallized the whole moment for me. Stuart thats me. Neil have at it, stu. Go one at a time. No, no. Thank you very much, my friend. Stuarts right, this is catching a lot of peoples attention, talk about cars, auto industry, air industry, transportation stocks, technology and Financial Issues it has been quite a browbeating for a lot of these issues but today a comeback, largely built on the notion that states are rolling out, getting rid of some of these provisions bit by