As we see more states open this weekend, 25 states reopening. That is about 33 of the gdp. All of that coming up. But first, the Coronavirus Crisis wreaked havoc in april resulting in the worst jobs report since the end of world war ii. The u. S. Economy lost more than 20 million jobs in the month of april with more than 33 million filing for Unemployment Benefits over the past seven weeks. The Unemployment Rate 14. 7 . Joining me right now to discuss the brutal jobs report as well as how quickly this economy can recover is mohamed alarian. Thank you so much for joining us. Thank you, maria. Maria you know what i find odd . We have these jobs numbers on the one hand which obviously show the results of this shutdown. And its been selfimposed but, nonetheless, all these job losses. Taunt, weve got a rally in at the same time weve got a rally in markets. Whats going on with this dichotomy . Not only is a dichotomy, but its fueling a lot of political rhetoric on main street versus wall street, companies versus people, the better off versus the vulnerable. The answer lies in what different people are looking at. So the labor Market Report captured a very tragic situation on the ground. Record lost jobs, increases in unemployment that are going to get worse, and its hitting particularly the most vulnerable if segments of the population. And you need only go to the food banks to realize how much pain and sufferings going on. And if you look forward, it is hard to see the numbers Getting Better anytime soon. In fact, the next two employment reports are going to be even worse in terms of the level of unemployment, and were going to find out that even people who maintained jobs are getting paid less and working fewer hours. Now, on the other side the markets are looking through all this, and theyre encouraged by three things. First, this week they got confirmation of partial if reopening partial reopening not just in the u. S. , but around the world. Second, they got a signal that china and the u. S. Is talking again, so the clear Political Tension has come down in their minds. And, third, they got indication from Central Banks that these Central Banks willing to do more to support the markets. So markets are betting on something completely different from whats happening in the real economy for now. Maria so what about that . I mean, youre talking about more than 7 trillion in money being thrown at this economy. Is that going to work . Were also talking about another relief package, mohamed, the cares act was 2. 2 trillion. That was the third stimulus not really stimulus, it was the third relief package. Were talking about a fourth release package. Is this going to work to get us back to some kind of normalcy, and when might that be, in your view . So on the seven, that you mentioned, trillion with a t, which is an amazing number, three or four have gone straight into the marketplace or are destined to do so. So when it comes to financial assets, it works. Because the money coming from the fed and also other Central Banks, but coming from the fed goes into the marketplace and then has an Immediate Impact on asset values. The other that is supposed to go to the real economy is a lot more challenging. The intention is there. Theres no doubt about the willingness of governments to do all it takes. The problem is the pipes are not good enough. So it takes time for the money to get there, and it cannot compensate for all the losses. As to what next, maria, i keep on stressing lets not repeat the mistake of 2008. In 2008 we were threatened by a global depression like we are today. We won the war against that depression, but we did not secure the peace. We did not come out with high and inclusive growth. This time around we have to secure the peace as well as win the war. And that means the next stimulus package which will come has to aggressively counter what will be enormous pressure on productivity and on growth. Otherwise were going to end up with a socalled new normal 2. 0 which is even lower growth, even more inequality and an even greater entanglement of the public if sector into the private sector. And thats not a good outcome for anybody. Maria well, were going to talk with the ceo of boeing coming up in the program and, you know, they were riding high. They were looking at a commercial aerospace situation a year ago that was on tour. People were traveling, money was moving. Now they had to raise 25 billion in a bond deal, and International Travels not coming back anytime soon. How significant a snapback or a recovery are you expecting . The president has said well get growth in the third and fourth quarters, but 2021 will be a real strong year. Do you buy into that . So i buy that 2021 will be a much better year. What im not sure about is how this year will evolve. And let me explain why. First, we have the health issue. We are going to have to live with the virus this year. Were not going to be able to eradicate it through a vaccine or through community immunity. Thats going to take time. And neither can we lockdown the economy for the whole of the year. We cant do that because then livelihoods get destroyed. So were going to have to learn to live with the virus. That is going to be a stop and go process. Its not going to be smooth. Because its not going to be smooth, we dont know how consumers are going to behave. We dont know how quickly people will go back and reengage fully. And then we dont know what business is going to do yet. Maria mohamed, thanks very much. We certainly will be in touch as this develops further. Thank you, mohamed, have a good weekend. Dont go anywhere, my oneonone with boeings Ceo David Calhoun is coming up. Stay with us. This is an athlete, twenty reps deep, sprinting past every leak in our softest, smoothest fabric. Shes confident, protected, her strength respected. Depend. The only thing stronger than us, is you. Its a great escape. So many Great Stories from amazing people. It makes me want to be better. It changes your perspective. It makes you a different person. See what listening to audible can do for you. There are times when our need to connect really matters. To keep customers and employees in the know. To keep business moving. Comcast business is prepared for times like these. Powered by the nations largest gigspeed network. To help give you the speed, reliability, and security you need. Tools to manage your business from any device, anywhere. And a team of experts here for you 24 7. Weve always believed in the power of working together. Thats why, when every connection counts. You can count on us. Maria welcome back. Now air travel dropping 96 as a result of the pandemic and the shutdown. We have breaking news this weekend, the president and ceo of boeing tells me that he is expecting travel will not come back to 2019 levels until three years from now. Heres my exclusive with dave calhoun. I think most of them are trying to dial in a return of about 3050 by the end of this year. Theres a wide variation in that. A lots going to depend on how the public responds to, you know, the safety of the airline of airplane cabins, etc. But i think they are reasonably confident they can begin to approach sort of half the schedule they had before. With respect to longer term and the need for airplanes, we have chosen a course that for three years we will slowly crawl back to the traffic levels that we had in 2019, and then itll take another two years to get back on the growth curve that the, of course, the industrys enjoyed for almost two straight decades. Maria yeah. I mean, nobody is expecting air traffic to recover anytime soon, dave. So, i mean, when you look at the 2019 levels, is it fair to say youre not getting back there in terms of the 2019 levels until, you know, 2023, 2024 at the earliest . Yeah, i think we we believe itll take a full three years. The one wildcard, of course, is if a vaccine is developed and widely distributed sometime between now and then, everything might change a bit, and it might come back in a much more robust way. No one can predict that, and it would be foolish for us to predict that, so this is a course we believe is right to plan for. Maria well, you came in here as ceo and youve got a plan for a lot. You came in trying to fix the culture after the 737 max disaster. You came into a disaster. I want to ask you really about the broader impact over the long term, dave, because you come in, you havent delivered a max jet in other a year. Youve in over a jet. Youve got so many sitting on the runway. Going into this pandemic you were flatfooted, and your competitors are getting stronger. You see air bus and what theyre doing, youve got this major plane if, the 737 max, that you need to deal with. And yet your competitors are preparing for when you get out of this. So are you worried how worried are you that youre going to be losing a lot of market share throughout this shutdown . When all is said and done, you could lose market share big with airbus making smaller planes and continuing to deliver those, and youve got the long haul, what youre good at, youre not going to see the need for those big twinengine planes Going International for some time. So going into this you were flatfooted. You know, i there is no question that the max problem, the accidents set us back and set us back for roughly two years if you think about it. But remember, during those two years we produced a lot of airplanes. So with respect to market share, those airplanes will find their way into the market, and there will be a catchup associated with that. So we will not have given it up over a long period of time. My confidence in the mack, my confidence in the in the max, my confidence in the airplane itself and the safety of the airplane is significant. I have always believed in the max, i still believe in it. The certification process that we have been going through with the faa, it has been constructive, it has been thorough maria let me ask you about this huge bond deal and how youre going to use the money, dave. 25 billion in the market. Now, i know that you bought a lot of stock back in the last year, you pay a big dividend in an industry that is quite cyclical. Yes, youve got this huge, successful bond deal that you did, but do you need to rethink that dividend at this point, where it is even told . And do you need to think back, rethink all of the buybacks that youve been doing . Well, i think probably, as you know, we have suspended the dividend and will continue to suspend it. Well prioritize the payback of our debt bet instruments over anything with respect to return to shareholders. Until we get back to the same kind of Balance Sheet we had before the virus and before the max. And then when we get to that level, we will reconsider and think about how we return money to shareholders and reestablishing our dividend. And the authorization with respect to buybacks, of course, we went through, and therell be no consideration for buybacks until were significantly paying down our debt. Maria my thanks to david calhoun, president and ceo of boeing. Dont go anywhere, my oneonone with the transportation 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. Me too. Me too. And if youre a small business, were with you. Standing by you every step of the way. Bye bye. Maria welcome back. As america starts to reopen across the country, the question remains how quickly some industries of the economy will actually recover. The Airline Industry the, for one, among the most devastated with some experts predicting it will be 2022 before the industry fully recovers from this pandemic. Traffic down 96 . Joining me right now to discuss the recovery and the Transportation Industry is transportation secretary elaine chao. Madam secretary, its great to have you this weekend. Thanks very much for joining us. Thanks so much for having me. Maria tell me what you have been doing, your role in terms of getting america back to work and insuring that our transportation vehicles work properly during the shutdown. The number one priority for the u. S. Department of transportation is to keep the National Transportation system moving. And also to address the safety and wellbeing of passengers and the work force that work in this sector. So so weve been able to keep the National Air Space open, albeit at a lower passenger volume and airline volume, but the National Air Space is operational throughout this period. We also have made sure that the supply chain remains robust and strong, and this is where we need to give a big shoutout to the new american heroes, and thats the truckers. They have made sure that our store shelves are stocked with necessary if items, food and others, for example. And also theyve insured that medical supplies and equipment get to where they need to be. Our Transportation System is also very important, obviously, for essential personnel. So our transit systems throughout the whole country have remained open. And also our Airline Industry has flown from shore to shore to insure that the people who need to fly, indeed, have that opportunity as well. So we have focused very much on keeping americas Transportation System operational and safe. And in addition, we have also paid attention to regulatory relief. And i can talk more about that. Maria yeah. Tell me about the regulatory relief, secretary, because this is a time when you dont want the bottlenecks, you dont want lots of bureaucracy in the way of getting something done given the challenges that so many businesses and individuals are facing. Well, for example, a lot of state dmvs are closed. And so truckers may not be able to get their licenses renewed or if there is a new, you know, driver who has a learners permit, they cant get it extended. So we have kept safety is always number one, of course. But we have also given temporary waivers on renewals for licenses. So on march 24th we gave a temporary waiver until june 30th for people who need to renew their licenses maria and i guess youve had to see costs rise as a result of extra cleaning and sanitizing our Transportation System. Tell me about that. But what i really want to get your take on, secretary, is how the transportation sector will look different when we get out of this. Are you now in conversations about retrofitting and differences that we may see in Public Services as a result of all of these new guidelines that weve been following . And we will probably follow way after the economy opens. So the federal government in a wholeofgovernment response has very quickly distributed about 75 billion to the Transportation Industry. Included in all this federal funding are also funds for cleaning. So we are hoping and asking that companies and organizations ramp up their cleaning protocol and increase the frequency of their cleanings to make sure that their facilities, the trains, the rail cars, the airplanes are, indeed, sanitized much more often than before. The airlines are very cognizant of passengers concerns, and theyre doing everything they can to convey a sense of reassurance to those who fly. Thats why recently they have required people, passengers and crew, to wear masks onboard these flights. The airlines are spacing people out. They are leaving the middle seat vacant. Right now the load factor, the passenger volume is still quite low, so theres actually opportunities for social distancing on some of these flights as well. Maria what to you make of what do you make of some of these airlines saying youre going to have to pay for that. Frontier airlines said, look, if you want the middle seat empty, youre going to have to pay extra. So, in other words, theyre telling people youve got to pay if you dont want to get sick . The airlines are under tremendous financial pressures, and so they are thinking about how to survive. But having said that, while i understand the rationale, i would hope that they do their very, very best to give a sense of safety and security to their passengers. Its in their own best interests. And they realize that. Maria secretary, let me ask you about infrastructure. Weve talked about an infrastructure plan for a long time. Now weve got this pandemic. Who knows if were actually going to see a stimulus bill or a relief package that includes infrastructure. Tesla ceo elon musk this week said its really quite sad that u. S. Infrastructure, especially roads and highways, is where it ised today. Hes criticizing it saying we have crumbling highways, bridges frankly, when i visit china, i see the infrastructure much better than ours. Even europe has better infrastructure. Any chance of getting something done now given this pandemic . Are you still having these conversations, secretary . Well, the president would agree. He has always said that we need to address the infrastructure needs of our country. And he has been trying throughout this whole first term to get congressional consent and agreement on a new infrastructure bill. We have been in the discussions with the hill throughout this whole time, so this is an issue that precedes covid19. Having said that, there is reauthorization of the fast act. Its a highway bill, infrastructure bill that will be coming up for reauthorization sometime in september. Thats another vehicle, another opportunity for us to discuss once again how do we pass an infrastructure bill. It has to be on a bipartisan basis. Maria secretary the, its good to see you this weekend. Thank you very much for joining us. Thank you. Maria secretary elaine chao. Dont go anywhere, more wall street right after this. Maria well, have a great rest of the weekend, everybody. Join me next weekend right here for another big show. Every week at 9 p. M. Eastern, friday nights, another edition of wall street. Plus i will see you sunday on Fox News Channel for sunday morning futures when i speak with white house adviser peter navarro. Catch the show live, 10 a. M. Eastern on sunday over on fox news. Plus right here on fox business start smart every weekday, weekdays from 69 a. M. Eastern for mornings with maria right here on fox business as we set the tone for the day. Thatll do it for us for now. Thank you so much for being here. Have a great rest of the weekend. And to all of you mothers out there, wishing you the very best mothers day. You are my hero. Ill see you again next time. Gerry hello and welcome to wall street journal at large. The Economic Impact of the almost twomonthlong lockdown of the United States because of the coronavirus outbreak came into much sharper focus on friday. Thats when the Labor Department reported that 20 the. 5 million americans 20. 5 million americans lost their jobs last month, the most since the government began keeping records in 1939. The april Unemployment Rate soared to the highest since those statistics began being collected following world war ii. Both the unemployment and job fire
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