That gives you a better indication of where trading would be if we were to open here look at the treasury market. Weve been watching that closely too joe did anyone else see 5. 7 and say, oh, it is not nine . I had the same reaction i saw the etfs, i actually thought, occasion. 5. 6 or 5. 7, which is just crazy. We keep trying to figure out where is the bottom. Look at the 10year note yield of 1. 15 a week ago, you were looking at below. 7 . The moves we have seen have been pretty phenomenal. The government is stepping up its efforts to pass a massive stimulus many are betting on whether it will be big enough the Federal Reserve is pulling out its own tools. We have huge Team Coverage of these major stories. Getting over to eamon. Starting with you in washington. Good morning. It was just 24 hours ago we were talking about the idea that american politics has really changed. Every 24hour news cycle, it is different. And now embracing the idea of sending 1,000 checks to just about every american the Trump Administration that seemingly comes from the andrew yang camp of the Democratic Party but that shows you how fast things are changing in politics they are also asking for an overall up to 1. 2 trillion stimulus bill. That is the request made yesterday on capitol hill. Im told by senate aids that they are working on the phase two bill that has already passed the house that has things like paid sick leave in it. There are still a couple of senators where they hope that will land. Theyll continue to work on that larger package how did they sell that idea. He went into lunch yesterday briefing senators on just how bad the u. S. Economy could get it could be up to 20 unemployment that is a shocking number. That goes back to the depression era we havent seen numbers like that we are talking about a scarey scenario from yesterday showing the need for urgent action now he said dont worry about that right now. In different times well fix the deficit. This is not the time to worry about it thats when the government has to step up guys, well wait and see where they land. Also expecting white house briefings at 11 30 this morning. American politics shifting every 24 hours here. We are working through all of that in real time. Lets go over to steve thanks a lot. The Federal Reserve in fairly record breaking speed here enacting a bunch of programs just over 12 hours ago, they did the primary program, the credit industry that was filed yesterday morning and in the afternoon, it came out with two now for the rest of the week, 500 billion overnight repo so it will offer a trillion a day. The primary dealer Credit Facility there will be loans on a range of assets. Corporate bonds, muni, assetbacked paper they can take it to the fed and get it basically financed overnight or up to 90 days the commercial paper that buys from u. S. Issuers up to 700 billion. Importantly, this comes with a 10 billion backstop let me tell you what barclay said helping to unclog dealer Balance Sheets that has been just one of the problems we have had out there in addition to money markets selling. People withdrawing from money market funds well have to see if that together with this stuff eamon is reporting are enough to create some is calm in these markets. Steve, just talking about the window i think i heard you saying yesterday there was some complaints about how the rates were higher than they would be in the market. Okay, fine go to the market dont come to the window right fair enough. It was the cpff. The issue is this. The fed was charging 200 over ois. The market was at 122. The result was that the market didnt unclog. You are right in the sense that another person i talked to said okay if you are the coo of a company. Youll pay over for a while and if you need it, you can have this other facility. The fed should have come in at or below that market eamon, the similarities with yang this is a oneshot deal giving out 1,000 to the public. With yang, there was no pandemic that doesnt mean politics have suddenly melded where we are just going to write checks, right . Well we are it does mean that. We do have a pandemic. It is a oneshot deal and a pandemic let me ask you this. Think about what happens when you do this. The idea here is that you are replacing about two weeks of lost wages because they are closing things down for 15 days what we dont know we dont know how long that is going to go. If you are a waitress and you lost your job and you cant get another job because everything is shut down, what are you going to do . Turning that off becomes tricky. This is hard. The criticism that it wont go out into the economy thats not the reason. They need money and they are hurting and they dont have cash just because it doesnt immediately help the overall economy in terms of demand i dont think that is relevant people need it what im suggesting is that once you start doing this, it becomes difficult to stop. People will still be out of work after this for two weeks and two weeks after that and two weeks after that this is where we stand now at our home offices how long this will last. The politics of this though are actually that we are going to come together because there is going to be this massive stimulus where eamon is going, joe, i think you agree. Ultimately what is going to happen, you are siege the Elizabeth Warrens saying if we are going to give out money, we need to have these stipulations and others what is going to happen, you need massive stimulus. You dont want strings attached. You want as many people to take this as possible yes you want this to happen. Andrew, you want this to happen as quickly but probably you want it to be more targeted you start thinking about how to hand that many away. It needs to go to the people who have lost their jobs and are out of work and to the Small Business owners. I got a letter from a guy im hoping to have on the show a Restaurant Owner he laid off 4,000 employees on monday it would take him two weeks of revenue to get those places up and running because hed have to bring in managers and staff. I dont need money, you dont need money now id like to see that money go to people that need it. I talked to an accountant in new jersey who said hes got 20 clients this week who had to layoff 50 or more of their staff. Caterers, limo service, moving companies, tree Service Providers are all dead in the water. Where is where the immediate incredible shock thats where the money needs to go i saw aoc yesterday who said something about wait a second, boeing had 38 billion in buy backs, now we are talking about 60 billion bailout for the industry nobody is safing anything for a rainy day. I almost agree with that. You blow all of this money out and now you are down joe, let me suggest that ultimately you going to tell me how it is, andrew no. Ill suggest any Stimulus Program we have will privatize the gains. Thats what happens in a crisis. When p it is over, there needs to be a discussion about financial responsibility in this country that we dont have in the best of times to have insurance on hand for when these happens. Boeing employees 100,000 people to change the policy in the moment is too painful. Weve had that debate too many times. I agree with you. I think we have to look at all of the esg stake holder stuff and realize, we need profits to share with our stake holders if you blow all this money you come to a time like this, you realize, wow Share Holders really do need to satisfy any others you need to be profitable and not planting trees in africa we saw what happened in 2008. We have chris waiting in the wings. Well come back to you in a bit. Vice chairman and wall street journalist commenter greg ipp is with us on the cnbc news line. Good morning you just heard a little of the debate weve been having do you look at this stimulus plan and think it is enough . Caller i think it is very clear that weve gone past the point that the fed and others have gone on their own the government has to step up. This feels like it is in the ballpark you need to have multiple different elements in it credit guarantees, income support for people who are losing their jobs. I think what we see here is appropriately at this phase, a lot of the costs now move from public to private Balance Sheets greg, youve heard this plan suggesting we could have 20 unemployment which would be remarkable and remarkably sad. Caller we are dealing with an unprecedented shock i dont know what to look at to understand this. It is like a heart attack and each minute the heart attack goes on, more of the muscle dies we saw figures yesterday from the travel industry. This is one industry looking at a third decline in their business that would push the Unemployment Rate up to 6 a doubling of unemployment in one industry alone the uncertainty is tremendous. How long does this get and how long do the shut downs and social distancing get . If there is anybenefit to underestimating. You may as well start with one of the bleaker prognosises and go from there. You were sounding the alarm on dysfunction in the treasury market earlier this week there is talk about whether we should shut the markets down caller although the stock market has been volatile, the equity market has performed well the really alarming thing over the past week or so was the freeze up in fixed credit markets as well as Corporate Credit and many other Business Funding markets. The fed has moved aggressively to tackle this problem at the core of the system with this massive surge trying to liquify. The liquidity side, the credit support side needed to be built out further. The good news, the fed, a little late but nonetheless converted the paper stock yesterday and allowing the dealers to fund the broad range of collateral. The fed is ramping up to fill out more complete support that theyve provided many markets are still functioning very poorly but what well be able to do if we get some risk capital out of this, we can look to a more aggressive, new generation of the programs paired up with capital and guarantees to replicate some of the programs joe has a question for you. I want to ask greg a question i put one of gregs books behind me butit didnt make it in in terms of the shot. Greg, looking at the 20 is it possible that is really transitory if we went into this with what people say was a pretty well functioning economy with grow and Everything Else, does what we are going through actually break that so we can no longer count on the rebound or does that 20 linger and become depressionlike soup lines . I would think we could bounce back quickly and once people left their houses, the Service Industry might bounce. Am i wrong laying out that scenario. We have seen these natural shocks, you do get a sudden stop after the shock passes, you do come back to life fairly rapidly. In louisiana after katrina, it moved back in hong kong, the economy shrank then there was the sars outbreak and it came back it is bigger than all the United States it is the entire world going into cardiac arrest at the same time coming out of it, we dont know that we know when earthquakes end or disasters end, we dont know when the lockdown can be lifted. We have a few templates from china and south korea, a few countries that have gotten past the worst of it. That gives me some hope that this will last about a month to that point, the stimulus package is very encouraging. The longer this goes on, the companies that are illiquid, they dont have the cash they become insolvent. These workers will not have jobs to go back already talking about the politicians that want to make sure they can enact some certainty. Do you have any idea where the most punitive changes will be coming Airlines Boeing with tarp in 2008, a lot of the conditions meant banks were unwilling to access them i think congress will have to sort of be careful about demanding absolutely everything they can in return in terms of co pay and buy backs those are big conditions to ask for. No ceo pay increases they ought to be able to structure those similar to what we have seen in the past to ensure private loss sharing. You can attach a lot of ideas are out there. Do this in the form of convertible concerns and so on we are still dealing in some sense to the blow back and the bad memory of the tarp and so forth. No question as these are put together, you will have to have some sort of mechanism to guard against what they are seeing as selfserving behavior. Smart corporates will know that and agree to that. This he will caution that you dont make it so punitive that nobody uses it it doesnt do what is needed right now. Okay. Well thank you greg and krishna. Joe. Thanks, andrew i think we can do this it is better today there is a delay between us it is you it is you. It is my delay. That makes it worse. This is like a bad Conference Call that everybody has been on. We are doing this i think we need to use im actually impressed. We need to go back to the control room to do top line. She can tell us in our ears you raising your hand . The debate. Now i feel like joe. Anyway, if you are just waking up this morning, futures are limit down but i cant believe i have to say this, if we look at etfs, they are limit down which is 5 earlier we were seeing 8, 9, 10 on the etfs. Earlier we were down on the futures but that is worsening. If we give back any of the bounce back, we havent had two up days in how long . I cant remember. The bounces up are smaller than the dow. You remember that i wasnt sure at the end of the day. It was something i was trying to schedule for thursday. February 5 and 6, i was told. Oil prices. I looked at those. Here we are, 25 now im happy. It is such a rapid move is that a fear fact store sign . At least they are willing to hold treasuries. Treasury secretary mnuchin says it is important and crucial to keep the Financial Markets open. He says we may have to move to shorten trading hours at some point. We absolutely believe in keeping the markets open americans have to know they have access to their money. Ive been on the phone with major banks and Stock Exchange everybody wants to keep it open. We may get to the point where they shorten hours americans should know that we are doing everything to make sure they have access to money at their banks and 401 ks and to the money in stocks. I have to say, secretary mnuchin has been a really strong leader and is working with nancy pelosi but when you hear talk of the treasury secretary say dont worry, the banks are going to remain open and well have trading but may have shortened hours. That tells you what may be going on behind the scenes did you take out any cash i did. I think becky did i didnt im still cashless it is in the safe ive got the cash next to the toilet paper it is ridiculous. I didnt take out that much. You wonder if there is going to be a quick thing i did it to make sure the people i no longer have coming to my house that i can give them money to get through these we canceled our maid service but im not going to leave her without pay for some is of these things you just worry about the very shortterm issues where you could see the people you worry about the most not having time or cash to get through on some of these so impressive there did you think in the entire world, im worried about this or that this is the first time every person is worried about the same thing. Unless you are in South Padre Island or florida on spring break. Still people partying at the docs boeing looking for 60 billion in aid the company that struggled before is looking for support from public and private sources including loan guarantees. Now dealing with a plunge in air travel amid the outbreak shares down sharply again this morning. You are looking at that stock down 104. We keep asking what is the value of that company. If the Airline Industry does not get bailed out, what is is boeing a growing concern and how does this all work joseph right in my book, one of the three greatest there is great Tech Companies but it is an american stallwarth it is a security issue. We need it to survive because we need it for our security in a world where it is boeing and airbus, you talk about America First and having some of these facilities in the United States, there may be a genuine reason beyond the business and Economic Issues which are clear and huge of why you need a boeing right 100,000 employees before you get through the supply chain it has been our biggest exporter for years and years and years. Impossible for tous think about going on without a boeing. The question is, do we bail them out or do the chinese bail them out i should tell you having been on the phone all afternoon, thats what people are talk about they are saying if the United States doesnt bail them out, would china because of all the planes they want to buy . Thats a good threat. I thought you wither talking about punitively people on the right are talking punitive measures. This is a political hot button now whether you blame anyone for a virus. People are saying that, saying look, you owe us for this. You crippled our economy the question of the buy backs. That money is in many heaven it is in money heaven what . The executives and maybe some sha shareholders but im sure people just held it that doesnt work right. Buy high, sell low weve seen it so many times. Eastman kodak, general electric. Doing these buy backs. Where is that money . It is gone it is really, really gone we cant do it now seeing the stimulus package and how employees are losing jobs as we speak when it works well and when it makes sense and when there are reasons if you dont have a good use of economically of a huge amount of cash returning nothing and you can reduce the flow there are times when it works and not every buy back is ee call after the last crisis, everything hadtobe tied to stock performance. Buy backs became more important. To boost etfs. And boosting the conversation i like the point that this time, the bailout might be structured differently do it like Warren Buffett was doing. Making sure you have ownership of the company to make sure you are going along for the ride then we get into a conversation if companies will accept the money knowing the government will become a shareholder and there will be questions about how entrepreneurial they can be. I think it almost becomes too complicated. We are almost reversing. Im almost interested in corporate welfare because im interested in saving the employees. All of these loans have to come with some is kind of guarantee that youll continue to employ but pay the same wages throughout this period otherwise the whole thing doesnt make sense. I was reading aocs comments and nodding and i was like, what am i doing european shares opening lower. Karen tso joins us from london good morning. What we are seeing across these Global Equity markets, more moves south. The levels on the index worth noting on the jan these stopanek market take a look at that. More selling in china. Big swing south for australia, 6. 4 south and 4 off the hong kong all of this talk of stimulus from the white house is not helping Global Markets look at europe weve taken on weak and still sliding. The ftse 5,039 we could be around closing lows. The dax around 4. 9 . In the uk, 350 billion pounds thrown at the system but it is not sticking also talking about nationalizing companies. The stock market down 5. 5 italian stocks more contained. Looking at the buying, it is concentrating around key sectors. You talk about the key issues staying home from work big telecom and a move to hording. Marks and spencer, they are trading high some are in the green. The hard hit areas indo teches are talking about holding on to cash reserves. It will make a decision later about the fouryear 2019 dividend this he were paying a yield of about 4. 1 that may be on hold. Perhaps for other companies out there paying decent dividends. You were talking about boeing. It is not Green Pastures for airbus picking up any weakness from boeing. We are seeing a halt on production and assembly in france and spain that company near the bottom of the stoxx 600. Weak autos across the european sector weak for european autos at this point. The Office Sharing space, iwg, who wants to be sharing an office at this point Carnival Cruise ships also struggling back to you in the studio or at home back to the studio now. Thank you for that please stay safe the same to our viewers out there. When we come back, america shutting down as we all know too well intend to contain. As we head to that break, look at bank stocks ai are looking at them down agn. Jpmorgan down over 7 . Well talk about it when we return through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. At fidelity youll pay no commission wewithout the planet cooler getting warmer. At emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Yes. This moving thing never gets any easier. Well, xfinity makes moving super easy. I can transfer my internet and tv service in about a minute. Wow, that is easy. Almost as easy as having those guys help you move. We are those guys. Thats you . The truck adds 10 pounds. In the arms. Ok. Yep. Transfer your Service Online in a few easy steps. Now thats simple, easy, awesome. Xfinity makes moving easy with twohour appointment windows, even on nights and weekends. Go to xfinity. Com moving to get started. Just waking up this morning, futures are once again limit down locked. We look to the etfs to get an indication we would open down 6. 5 down on the dow. Similar drops forecast for the s p and the nasdaq andrew to the coronavirus outbreak, the u. S. Death toll surpassing 100 with the virus now spreading to all 50 States New York residents preparing to potentially be stuck in their home a big debate taking place. Considering a shelter in place order prohibiting people from leaving their homes except under limited circumstances. The possible move comes as they report more than 100 new cases in the city. Governor cuomo dismissing the possibility of that order. And west of here, all Las Vegas Casinos closed for 30 days it is a big issue if this city gets shut down unclear whether the nasdaq gets shut down. Ive been discussing moving out of the city and doing the show like you from elsewhere. Well see how this all pans out over the next 24 to 48 hours. And the discussion about the nyse they pride themselves on staying home im saying this specific space would close but in terms of people getting around the city we are here in new york city it is some what surprising there is still people in the street even at this hour when the sun comes up at 8 00, there will be even more people in the street. In a perverse way, that is concerning youd almost prefer they are not. Part of the problems when theyve done these lockdowns it got announced before they did it and anybody who could, got out of town. Left and went to their places in the south. Thats why the virus spread to the south and why the country was overrun. People who can get out when they hear this, run and do it and take the virus with them the whole thing is surreal. Yesterday, i had to drive down to philly. I leave the house, go to the enclosed car, im driving along, other cars are around and everybody is enclosed. You feel safe in this bubble you get there and feel like, now im exposed. It is so strange when you are in your car, you are main ttaining your quaranti. It is surreal. So you dont know whether you are going to casa sorkin tomorrow we were testing out some testing issues casa sorkins has a dead zone if the folks at verizon are listening. Do you know how to do your makeup ive been doing it myself all week even here at the studio me too. I forgot to put on lipstick until the commercial break yes my makeup. It is a little too poofy my daughter put my make up on here she got up at 5 00 a. M i just want to say, every father and daughter should have that moment if i had sydney do mine it would be extraordinary natalie is going to do my hair tomorrow. She is shes going to get up early with me we are going to practice today this is our life. We are urgently covering everything this is what we are doing as we are doing our social distancing. Talking autos and airspace now having success with the plea to shut down some of the big three auto plants. Boeing is seeking billions phil lebeau is covering those stories. Go back in time when you decided on your beat you are a smart guy. It is always front and center. Joe, i never thought i would be revisiting the discussions we had in late 2008, early 2009 this time is the the Aerospace Industry starting with the auto industry. They met with the ceos of the big three. Last night, they agreed on a partial shut down. Doing deep cleanings to make it possible for now, you are seeing u. S. Plants continue to run what is going on with tesla, thats a great question. The plant in freemont, california where they have said you are shut down unless you are an essential service elon musk said im coming to work if you are sick, i understand but ill be at work. Will we see production weve reached out to the company, we dont know yet they are askings for aid pack eights totally 60 billion the exact terms still need to be worked out American Airlines announcing that it will be shutting some of the admiral clubs. People arent flying, no reason for the clubs to stay open United Airlines increasing cancellations up to 60 . Finally air Traffic Control tower here at midway closed temporarily after some workers there. They shut it down. That doesnt mean the airport was closed they were able to shift duties there. You dont see as many people at not only midway but any airport. Getting to this question about aid for boeing i have to tell you, i am increasingly whispering, if they are not going to come up with aid for boeing, how much longer before we hear people openly say, boeing should go bankrupt they are hemorrhaging cash, burning through it quickly they are hearing from the executives there this is a dire situation they need do something and do it now. I talked to major investors over the weekend this is what people are talking about in terms of where this stands lets get to Carter Copeland and see what he thinks they havent even drawn down their entire line. Carter copeland is an analyst on boeing hes a founding partner, actually, at the firm. Is the b word being used caller i would agree with andrew that has been the conversation now for a number of days the question is, i think, how much cash are they going to burn through . Not how much are they burning through at the moment . The hard part of what has begun with air travel is that we are entering a really unprecedented period of decline. You look at china. China went down roughly 60 . Looks like it bottomed here. When you put that type of curve to the rest of the globe what you will get are declines in air travel on a monthly basis that are five times larger than we have seen before. This is uniquely negative for a short period of time the eco system requires a lot of cash to survive. If airlines take in a lot of cash to customers, it is not paying that to boeing or to suppliers. The real question is can you provide enough liquidity in the short term to keep things moving and avoid the problems that come with having significant decreases in a system that is so capital intensive. That was what i was referencing, carter. If you just take a snapshot right now, you wouldnt think it is quite a dire but we dont know how long it is going to last they are going through cash, which phil just pointed out. How much of the 60 billion sounds like they are saying we need some but we are worried about our suppliers. Is that true it istrue at this moment, you know, boeing has fully drawn the 14. 8 billion drawn. The fed has effectively back stopped the cp that they need to role which is another 6. 1 bro billion. You put those numbers together were talking 30 billion thats not insignificant when you look howbig the eco system is, tens of billions of dollars is what, you know, sort of consumedby the industry ove the course of a couple quarters. If you think you have to shelf production, airlines are getting in trouble where they are not paying their bills you assume that liquidity relatively quickly. We dont know the terms of the 60 billion, does that include money for airlines if so it doesnt imply much for boeing and the suppliers which is a good thing meaning they dont think they need that if it includes 20, 30 billion that boeing needs to have to build a war chest to get through this, which it may indeed include, then investors are going the market well worry more about that because its a large amount of money and i think at this point, you know, that will only push us closer to that fear. The question is can you raise enough capital for the system to get on the other side of what should be, you know, a four to eight week kind of period of fear in the industry and then hopefully, hopefully and im using china as an example get to a place where you bottom and then begin to recover slowly we just dont know that today and the lack of visibility is what will drive the equity all right, Carter Copeland, thank you. We appreciate it well be seeing you soon yes absolutely coronavirus cases as weve mentioned now confirmed in all 50 states, obviously, hospitals are getting geared up and waiting for the flood of patients that they are anticipating the doctor is the president and ceo of the mayo clinic he joins us right now from rochester, minnesota thank you for being with us today. Good morning. Thanks for having me so, how are things doing at the mayo clinic. What your seeing at this point and how prepared are you we like any other Health Care System the more each day goes by the more were prepared. For a lot of hospitals including the mayo clinic weve gone through this before. We had to get ready for ebola, sars, mers, for all the pandemics that happen every year with influenza so were ready we also have a degree of cooperativity between Health Care Systems thats pretty impressive and we have great lines of communication with local and federal and state agencies but, of course, there are limits and those limits are in people, space and technology people, health care, make being sure Health Care Employees are there and are able to work space. Hospital beds. Then technology, the protective equipment as well as ventilators and other things that are needed and those tend to be fairly hard limits yes, every day that goes by the more prepared are. At this point were prepared of those limits which one is your biggest concern so, i didnt mention testing. Thats a limit its a limit thats been changed daily. It all depends on how serious look the population takes social distancing and social distancing and i heard you speak and you and your colleagues are doing a great job of showing an example. Thats what will determine how many hospital beds we need and about a tenth of them are icu beds and those are ones we can make more. We have ways of increasing Hospital Capacity but thats a limit thats pretty hard to explain. The ventilators situation is one were watching very closely. You hear state governors now talking about their concerns about it because they are trying to find them federal government is trying to find them. What can you tell us on that front . First of all, there are theres a significant supply of ventilators. They may not always be in the right play, but its not as if there hasnt been attention given to the ventilators situation. We know that the more people get the virus then a certain percentage of them will need to be ventilated. So its very hard to create a model that allows you to predict how many ventilators we need what we know for sure is less cases we have in the United States, the less ventilators were going to need and space that over time, then i do think well have enough ventilators. So its really a question of everybody doing their part to make sure that we dont have a narrow peak and everybody is now familiar with the term flattening the term which is in everybodys lexicon. In term of those ventilators, you look at the hot spot both in seattle, he some of thestories in seattle are relatively horrific and then you look at what could happen in new york. Do you try to move the ventilators around the country, you know, to try to meet the demand, is that whats happening here youre not hearing anything about that would you front load those ventilators to new york now ahead of this with the anticipation that you would move them, dare i say to chicago or some place else . So, its a very reasonable point but we have to keep in mind that we have to plan for whats going to happen tomorrow and next week, not what happened yesterday. So you dont want to be chasing yourself we have to make sure supply of ventilators is well distributed throughout system. Yes there are times when things can be moved about but we have to stay away from the impression that we can sort of chase this we need to be prepared as nation because its going to be required for us to be prepared as a nation and thats what mayo clinic is doing. Preparing at all our sites in arizona, florida and minnesota and our colleagues across the country are doing the same thing. Doctor, i want to thank you for your time and hope to check in with you again in the days and weeks to come. We appreciate it thank you i just want to make sure i thank all the Health Care Workers especially the people cleaning the rooms, looking after patients as well as people creating the supply we need. So thank you very much amen. Here, here. So many of the people on the front line not Justin Health Care Community but throughout the entire supply chain trying to help keep this country rolling. When we come two big hours ahead. Wall street biggie, greg fleming will talk about how this compares with what he saw in 2008 futures are down this morning. Were trying to track the etfs the market open now the dow would be down 7 nasdaq a little bit less than that well be right back. Two big hours ahead on squawk. You met on an app. Delete it. Why . Hes the one. Gesundheit. [sneezes] i see something else. A star. With three points. Youre in a. Mercedes. Yeah, we wish. Wish granted. With four models starting under 37 thousand, there could be a mercedesbenz in your very near future at the spring event. Lease the a 220 sedan for just 349 a month with credit toward your first months payment at your local mercedesbenz dealer. You still have service . 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Thankfully, i got quickbooks, and a live bookkeepers helping customize it for our business. live bookkeeper youre all set up janine great vo get set up right with a live bookkeeper with intuit quickbooks. Stock futures are down volatility remains king. This even despite the white house pushing for what could be the largest Financial Economic stimulus package ever. And how washington is getting ready to backstop one of americas key sectors in the face of almost a certain recession. Well discuss the future of boeing and the airlines. Plus the latest numbers on the Coronavirus Spread which is now in all 50 states and d. C the second hour of special market coverage on squawk box begins right now good morning, everybody. Welcome back to squawk box this is cnbc im becky quick along with joe kernen and Andrew Ross Sorkin and were coming to you from all over the place this morning. As joe mentioned u. S. Equity futures are down this morning. You know what that means if youve been following along for the last week or so but it means the futures have been down 5 all morning long were not allowed to trade below 5 on futures so well look at etfs they are not bound by the same rules. That shows a better picture where we would be if markets were open. The etf is down 6. 5 joe, you were right when you mentioned at the top of the 6 00 you look at the efit could be worse. Were now talking about a much bigger decline 6. 5 below the 5 limit down well see where things go. Weve been watching treasury market closely theres been some Rapid Advances in yields. Just over the last 24 hours. Right now it looks like the ten year note is trading well above 1 again, when i first saw this you start doing a look what is this . The ten year at 1. 122 thats unbelievable. Now 1. 1. Thats on my check mark for one of the good things my only one. But i do have that one the markets rebounded from their deepest route since 1987 as investors grew hopeful that the Trump Administration fiscal stimulus plan will rescue the economy which is at risk falling into a recession Steve Liesman will join us but first lets get to eamon javers who has more on the president s fiscal plan. Reporter good morning, again, joe we just have a the tweet here within the past couple of minutes from fortunate the president suggesting to all americans for the people that are now out of work because of the important and necessary containment policies, for instance the shutting down of hotels, bars and restaurant, money will soon be coming to you. The onslaught of the chinese virus is not your fault. Well be stronger than ever. A message of reassurance there from the president but also a Political Choice by the president here to continue calling this the chinese virus that phrase has aroused anger in beijing. They see it as finger pointing the president clearly deciding he wants to dont use that phrase even though the chinese have been upset by it. Another Political Choice this big number from treasury secretary Steven Mnuchkin the Unemployment Rate that mnuchkin predicted to senators that could happen in the United States if no action is taken by the administration and congress. 20 . Depressionera unemployment numbers says mnuchkin if we dont do anything right now. Thats being used to hammer home the point they do Want Congress to take some action. Heres mnuchkin yesterday on the size of what it is that hes proposing here i know theres been some rumors of the number it is a big number this is a very unique situation in this economy. Weve put a proposal on the table that would attract a trillion dollars into the economy. Thats on top of the 300 billion from the irs deferrals reporter all of that comes sidebyside with everything that the fed is doing and for more detail on that lets get over to Steve Liesman now. Steve . Reporter hey, i want to pick up on what youre saying a Senior Administration official tells me there will be additional emergency lending programs from the Federal Reserve that are backed up by the Exchange Stabilization fund. Ill show you what that looks like in practice in just a second a lot what eamon javers is talk about coming from treasury could be a leverage operation using the feds balance sheet. We have one example of that. Let me go through what the fed did yesterday about 13 hours ago the fed instituted another one of its major programs the primary dealer Credit Facility earlier in the morning hit done the commercial Paper Funding Facility then also it had already said it was going to do, run two 500 billion overnight repo operations as it attempts to get credit markets functioning and bring in spread and make it work so lets do the alphabet soup thing which unfortunately for the second time in about a dozen years, investors have to familiarize them pdcf, those are loans against all kinds of asset, like the kitchen sink, 24 primary dealers could bring to them. That should help unclog the system then the cpff. The commercial Paper Funding Facility where they could buy up to 700 billion. But they are using a 10 billion treasury backstop. That backstop comes from an Exchange Stabilization fund something created by congress in 191 that gives the Treasury Department some scope to do a whole bunch of things. What you could imagine in the future are other industry lending programs, run through the feds balance sheet, backed up where the losses are backed up by additional commitments of the Exchange Stabilization fund. One other thing, a person told me things were a little bit better today because there was disappointment with the cpff and then the pdcf came in later in the day and that created a better mood in markets well watch spread, well watch margins, well watch derivative and see how they trade a better sign this morning that a fed may have put the pieces in place to unstick the markets steve, a better picture, perhaps for Financial Markets and watching some of these things but a worse picture today on main street i mean its getting worse by the day for the people there who have already lost their jobs the losses are pretty wide i spoke with an accountant yesterday in new jersey and we talked about this before he has at least 20 clients who laid off 50 or more of their stav staff. He was talking about caterers, limo Service Providers, moving companies, tree Service Providers. Same thing is happening with all kinds of industries. The question is how do you get those people money they need desperately, get it targeted and get it there quickly so, i guess my idea here is im a little bit loss why we cant use the existing one employment insurance system. I know some people are ineligible for that like the w2 folks. I dont know why they cant be brought into the system. If the amount of Unemployment Insurance is not adequate lets increase it. Our social safety net is not a wonderful system but it does exist. I just worry about the process by the Time Congress gets done figuring out what to do, who to send the text to, we have this system it covers an awful lot of americans. You dont have to actually go to an Unemployment Office to get your claim mostly done online its a little bit problematic but i dont under why we dont piggyback on that system, widen it and broaden it. What the government needs to focus on are very unique programs to keep those businesses open so when they come back employees have a place to go to thats a difficult headache to think about how to finance those companies. Im frustrated by the patch work of all of these programs that everybody is trying to set up and the effort, frankly, to target them. Its almost impossible i keep talking about this shock and awe kind of approach you almost have to just say were making loans available to everybody. And you have to do it almost retroactively for all the people that becky is talking about who are getting laid off as craig talked about in the 6 00 hour if the travel industry, at this pace where unemployment shoots from 3. 5 to 6 justin travel industry. By the time we get around to fixing the situation, you know, the virus frankly the virus may have been fixed but the economy wont. Reporter andrew, look first thing we have to say is that any program today learned a huge political lesson from 2008, which is it cannot be and cannot appear to be aimed only at the wealthy only at corporations the problem with fulfilling that imperative is how incredibly difficult its going to be for the federal government to help out Small Businesses the bureaucracy is unthinkable somebody said Something Like Small Businesses have access to the discount window. Thats an absolute nightmare i think we have to think about ways of using existing systems for example, why cant a company or an individual write off 100 on their taxes their rent or their mortgage you can simply do that through the existing tax system. Helping out individual people is very, very difficult, its one of the reasons why in the crisis they focus on the Big Companies because it has the biggest bang for the buck but the worst politically. Thanks, steve joe bring in a man who has led some Financial Firms through challenging times in the past. Greg fleming is president and ceo of rockefeller Capital Management and former president ofmorgan stanley Wealth Management might have had some other positions in the past too that needed to deal with situations like this, most specifically back in the financial crisis there must be, i guess, a few similarities but so many differences as well. Joe, i think that the two crises that are probably the most analogous is september 11th and then the financial crisis. Lets start with the differences. The difference this time is its health its a National Crisis its everybody as you said earlier. Look at us today as an example were in four different places i come in to a small studio and theres one cameraman with a mask on. Our employees are mostly working from home with the exception of a few essential people most businesses have gone there. Everybody is concerned about it because everybody could contract it so that part of this is clearly the first time any of us have been through this. There are parallels. Thats one of the things i want to talk about this morning this uncertainty, and the really palpable fear that starts to build into the system. Are we going to get on the other side of this and what will it take to get there. How long will it last . That feeling was there in the credit crisis and for quite a longtime, actually, because that really set in the summer of 07 and we hit the low on the s p in march of 09 after september 11th there was a lot of uncertainty while there are those parallels with the current situation, there are major differences as well and one of the things you said in the last hour that is spot on is that its everybody and that requires a very different response i want to get into some of what we talked about here from a government standpoint because i think the answers are still not i agree with andrew they are elusielusive. If it lasts for months is still being understated. So give us give the government some tips if you were in charge what would you suggest . What do you disagree with so far thats being proposed . Actually, i think what theyve done so far is what they need to do secretary mnuchkin and the stimulus yesterday and the market responded to that positively in the first instance the federal government is going to be the one to get these Small Businesses through this. So if you look at the numbers, you have 30 million Small Businesses in this country employing 60 million people. This is the life blood of the economy and has been the driver of the growth over the last ten years. The one thing that i think President Trump and Vice President biden and senator sanders could agree this isnt big wealthy corporations, these are americans. This is the heart of the economy. Small businesses the only one who will get them through whatever the time frame is and a lot of predictions its weeks, months, the federal government has to be the one to get them through so if we took an example a Small Business that makes 120 in revenue or 10 a month, if its out for one month its 10, but if its out for six months its 60. That Small Business was thriving and we have 273,000 jobs created in the month of february in the tenth year of this recovery which was a remarkable number. So that business was probably thriving in february literally less than a month ago and would do very well on the other side of this if we can get them there. But if they are going to be missing 40 of the 120 or half of their revenues over the next four to six months, or even if its two or three months the only entity thats really equipped for that kind of, for those kind of dollars is the federal government so in reality i think they are doing what they need to do so far but i think one thing that people are starting to realize is that 850 is correlated to a certain amount of time but if this goes from weeks to months and the president said maybe july, august you got a big gap for that Small Business that was making 120 in revenue if that gap becomes 40, 50, 60 you do want to get them to the other side its not some big company that, you know, maybe senator sanders would say dont bail out this company, these are the life blood, these are the real americans that are out there creating wealth and creating jobs you want to get them there the number to get them there if anything will go up from here. So this was the down payment depending on the amount of time that it takes us to get through the health crisis. All right andrew, becky you know craig pretty well. Can we talk about the politics of all this, because, you know, that is the political morass of this whole situation and youre hearing Elizabeth Warren with comments about executive compensation we had debates about buy backs and debates about all these things how do you see it now having lived through the 2008 crisis and seen that blow back, do you think that were in a different place . Do you think that people some people look at that as a manmade disaster were talking about this being more of a Natural Disaster with manmade mistakes how do you see it . Andrew, as you know, 2008 crisis was really lodged in the financial industry i mean we built up a lot of debt across American Society but the tip of the spear there was the challenge in the financial industry and we needed to repair the Balance Sheets of Financial Institutions and banks and get that industry back on its feet to lead the economy forward. But that created political controversy. No question. Because a lot of the damage was located in big Financial Institutions whats different here and i would think youll get a political consensus around this, is that the hardest and the worst impact here will be for those Small Businesses, because Big Corporations by and large and we can put boeing and airlines and industries that are so dramatically affected they will need help but irrespective of the size of the firm but on a broader basis the impact is Small Business and getting that Small Business that was doing very well in february and had built a nice business, sometimes over decades, maybe family run, getting that Small Business to the other side of this, i would think thats not a republican or democratic issue, when you see the number of americans elm employed in businesses like that, the number is 60 million americans. This is where a lot of growth has occurred one of the reasons our economy is one of if not one of the leading economies in the world is because of that Small Business sector. So i would think that politically they are going to be able to move past that because it isnt, you know, some Big Corporation or isnt the wealthy its us. Its really the country when youre starting to look at 60 million americans working in Small Business all right greg, thanks you we appreciate it good luck. See you soon thanks, joe see you all soon good luck stay safe. Lets take a look he at the futures this morning as weve been telling you futures have been trading limit down all morning long. That means they are down 5 , not allowed to trade lower weve been watching the etfs in the meantime to get a feel where the markets would open the etfs are not feathered by the same rules etf indicated down by about 6. 5 s p futures also indicated down by 6. 5 as well. Joe, watching you and i always say we should reward the careful viewers, i noticed you changed the jack color behind you that was red. That jack color now its blue it matches your tie intentional yes theres a lot of intentional things back there. Yeah i saw jack roushs book back there. Yeah. There was some thought that went into it. Were holed up here. The next thing is cleaning closets im told which im not that thrilled with right now but got some time on our hands sorkin, i hope you get to experience it, sorkin. Unfortunately, i imagine if it doesnt happen tomorrow it will be happening. At the rate were going. All right yes, we have all different color jackets. Depending on the tie that could change every day Mortgage Applications fell 8. 4 last week according to new figures from the Mortgage Bankers association. The drop included more than 10 decline in refinancing activity with the average 30 year Mortgage Rate jumping more than a quarter point during the week to 3. 74 the Mortgage Bankers group says virus induced Financial Market volatility was responsible for driving those rates higher andrew okay meantime boeing will be asking for tens ever billions of dollars in government aid. This coming as treasury secretary Steven Mnuchkin called this crisis worse than 9 11 for the airline try. Joining us right now to talk about it is seth kaplan, principal at Kaplan Research lets talk about the need for these bail outs what happens to these airlines greg in the last hour suggested that unemployment in this country just on travel alone would go from 3. 5 to 6 right just the travel related job losses would drive the overall rate up to 6 . This as everybody has said is worse than 9 11 in a lot of ways we do have to sort of put ourselves back in that mindset easy now to say the thing about 9 11 is that awful first day was the worst day and then there was recovery we know that now we didnt know that when we were in the middle of that. Remarkable that these airlines 9 11 happened on a tuesday. By saturday they were laying off tens of thousands of people. 75,000 u. S. Airline jobs were gone within a few weeks. This time these giant airlines havent laid off anybody in terms of direct employees yet. So that speaks to the position they were in going into this thing. But, obviously, throughout the window whats the run rate can you speak to the run rate in terms of Employment Costs . If the goal is to keep people employed, keep people on the payroll in all businesses but specifically the Airline Business where we take delta or American Airlines as an example. The pay people to do to stay home. To do nothing so for the u. S. Industry, just trying to do quick math. Delta is what, 6 billion profit, 40 billion in revenue. 60, 70, 80 billion dollars or something ifyoure just paying salaries thats very, very bad. Its not 5 billion or 500 billion, just very roughly so that might be part of the grand bargain here and might be part of why. At some point, look, people with airlines has this duty to protect the company. But to pay people to do nothing thats the leverage. Theres people out there saying this industry with tens of thousands of profit last year. If theres a targeted bailout. Whether you want to do a targeted bailout or nationwide bailout. By default youll determine common carriers. Therefore, youre going to have to put some forms of other regulation on them forget about buy backs it will be about building this remarkable insurance cushion over the years and it would change the entire dynamic of the industry im not suggesting its the wrong thing to do, but im suggesting its the political thing. Especially because, i mean as greg was talking about earlier, this is, you know, the idea of too big to fail. Its not a redistribution. If we say this industry is special even those you work with the guy at the greek deli in my neighborhood is, you know, is feeling as badly, then yeah, you know, its reasonable to say you got the unions saying, of course, that should be tied to it today, right now delta is worth something on the order of 20 billion. Does that make sense to you . Is that a bet that investors are going to be bailed out by taxpayers . Is that whats happening here . I think yeah i think thats baked in thats all the usual granular stuff. We know what the airlines asked for. Yeah, i think at this point thats the expectation seth, hang on, we have becky who has a question for you hey, becky. If its baked in why are airlines down by another 10 this morning investors are thinking maybe the industry may get bailed out but were not sure what it means for shareholders exactly you heard those calls out there for shareholders, to get diluted by this. Fair point, two separate questions. Jobs and is there still something called American Airlines versus what does that mean for shareholders. Therefore the question i ask, if youre an investor out there who own these Airline Stocks what are you supposed to think well, yeah. People say theres an opportunity. You should buy the stocks and bet the government will save you and protect and protect the shareholders others say you must guest rid of this immediately because they will effectively nationalize the airlines when everything is done and youll lose everything i mean i, you know im trying to think of baby bath water whats the right analogy i think the industry legitimately reformed itself enough that you, you know, thats probably not whats going to happen here but, yeah. Obviously if you are Still Holding shares of these airlines thats your bet that the industry will not be nationalized or Something Like that, that this is going to be like the banks just like what happened there with the ratios and everything this, is an industry that thought it had put itself in a position to get through absolutely anything and it wasnt in a position to get through absolutely everything except this. So thats your bet if youre holding these down it will look different but, you know, they are not going to have equities wiped out. Seth thank you as always and stay safe. Likewise. Joe, over to you. Major reversal nevada governor ordered a 30 day closure of all nonessential businesses in the state that includes the States Economic life blood the Casino Industry Contessa Brewer joins us now with more. Reporter hi, there, joe. The governor last weekend had said dont worry, the casinos can do what they want, well support whether they want to stay open or whether they want to close last night he changed his mind and ordered all of these nonessential businesses to shut down let me give you a sense of what that means for nevada workers. You have 100,000 people alone working on the Las Vegas Strip the Nevada Resort Association says 450,000 people work in travel and tourism across nevada its the life blood of the state by far the biggest Industry Worth 68 billion and now these people who are sitting at home youve got mgm that has already announced some layoffs but says it will pay its furloughed workers both fulltime and part time for two weeks Las Vegas Sands and Station Casinos promising to pay their workers. Wynn said hes paying their workers and made a video thats alongside his Infectious Disease person and explained why they are getting paid let me play it for the next 30 days were going pay all of our employees, not just fulltime and were going to include tips because its work. I want you all to have your full wages because you need to stay home reporter and at this point you got the analysts sending out solvency notes trying to estimate how long these casinos can stay up and running if they are not bringing any money at the low end of the estimate is high end Las Vegas Sands. Caesars said they will try to mitigate the impact. Take a look at the Share Performance since these coronavirus headlines. El dorado lost 83 of its share price. At the top end you got and you might consider why las vegas sand but certainly this has hit casinos way harder than the rest of the s p becky . Hey, contessa i heard you say one of those companies, i forget which one would be paying its fulltime and part time employees for two weeks. But this closure is for at least a month. Thats right. Thats right so what do they do for the next two weeks . I imagine there will be some scrambling to go back and see what can to be done because now the standard has been set. Las vegas sands just said blanket were paying our workers, we got the cash to do it he said in this video to employees dont worry, were in financial stable place that we can pay our employees. So they made the promise to pay them for 30 days those include workers who would normally bring home money by tips they will average it out and pay those workers too. I think, you know, this is a scenario that continues to be fluid, becky and what we know is that for instance caesars will work on this today to figure out what they can do for employees and hat makes the most sense well stay on top of it and see how it looks its not just nevada you have these casinos shut down pretty much coast to coast caesars doesnt have a single casino open and neither does wynn this is a coast to coast problem. We used to think these casinos were diversified by being in different geographic locations but it hit macao first. Its a pandemic. Absolutely. Contessa, thank you so much meantime special coverage of the markets, coronavirus and your morgan returning right after a very quick break squawk box returns, were limit down, markets look like they open off a little over 6 right now. So were answering their questions. Aflac is auto insurance, right . No. Uh uh. Is it Homeowners Insurance . No. Uhuhuhuh is it duck insurance . Nope. Ahhh do they pay me money directly when i get sick or injured . Yeah. Aflac you got it. You know aflac boom get help with Expenses Health insurance doesnt cover. Get to know us at. Aflac dot com. Later, titi. Bye, baby. At u. S. Bank, we dont just do business in our communities. We invest in them. Thats why were proud to work with the people of pullman, giving our time, money and hearts to help create real economic opportunity. For the future. Or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. At fidelity youll pay no commission but were also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. From the day youre born we never stop taking care of you. Good morning, everybody. Welcome back to squawk box, this is cnbc weve been watching the markets very closely as weve seen many mornings in the last week and a half or so were trading limit down for futures. That means down by 5 and thats where the limits are held until the opening bell weve been watching the etfs very closely they are not held to those same limits the dow etf right now down by under 6. 2 and the s p etf down by 5. 8 . Mike santoli has been watching all kinds of action with the markets. What can you tell us about what youre seeing . Lets put that premarket move in the s p 500 etf in a broader context. Its really reapproaching these levels if the s p goes down the limit in regular trading hours down 7 it will basically take it to that point december of 2018, 2351 is the close. Now the etf of course move the decimal point one place and basically 235 or so on the etf is there significance to touching that . Thats unclear that was a megabear case when we get this unhinged below a trend the overshoots are happening to the down side i want to take a look at stocks versus bonds ramp in treasury yields after we got all that information about fiscal stimulus. A market thats having trouble absorbing and financing treasury supply so heres the last six months. Very steady rally in stocks. Thats the white line. Stocks started to go down. Bond prices, long term treasury etf kept going up. That was your buffer if you had a portfolio. Look hats happened in the last week or ten days both going down. Youre getting hit on both ends. Fouling some relationship with these economic trading strategies take a look at the vanguard Balance Index fund basically a proxy for your typical 60 stocks, 40 bonds, portfolio that you might see in a retirement account this is okay on a five year basis. Still kind of holding that uptrend. Bonds did their job in buffering things down 15 from its highs. But if you get both of these going down at the same time this strategy wont work. If stocks can bottom a rally more than compensate for potential increase in yields a lot of moving parts. One last thing, this phase has shown the hazard of trying to extrapolate one days action to next day yesterday we had a 6 rally and it seems like we barely moved. You know, mike one thing it definitely feels like, those is the bounce backs are getting lower and lower, the drops a little steeper every time we see them it has been the trend. A lot of people are looking for the market to rally on a day when it seems to be bad news youre so, so stretched to the down side it would seem like in time this intense loss phase might run its course but were in this information deficit right now. So the urgency is all on the people who are either selling out or havie a strategy to play the market to the down side. Patience on the plus side means the overshoots happen to the down side. Mike, you were watching this for a longtime, these markets for a longtime when you were at barrons before you were here. What does it feel like to you it feels more closely linked i guess to the 2008 period one of the real distinguishing factors of this episode is the repeat of the decline. In september the stock market was 20 off its high, grinding lower, already in a recession. The market was sniffing things out beforehand and then we had that panic phase which lasted months and remember didnt really bottom until march of 09. But it feels like the crucible of the policy of 2008 the market likes it one minute, doesnt like at any time next, not enough people try to do more all the while kind of infrastructure of the trading system that we have gets tested along the way and i think thats probably most closely linked to what were doing right now, becky. All right youve put in long days. We appreciate having you here. Lets bring in another couple of voices to talk about whats happening in the markets. Laurie is with state Street Advisors john hillis here as well what your watching in the equity markets and what youre hearing from other people in the markets potentially clients you talked about about how they feel right now. Everybody feels a little bit sick obviously, these massive gyrations in the market isnt giving anybody any comfort what everybody is looking for is some signal that we can manage through the short term, some policy responses have been very much welcomed because it helps to, you know, allay some of the worst fears about the short term but when are we going see some progress against the virus itself and that would give us more confidence that well get some kind of recovery in the back end of 2020 john, what about you . Fixed income has between place thats been most affected so far by the strategies weve heard from the fed and treasury. What do you think of the actions theyve taken to this point . They are doing whatever they can to soften the economic flow of something thats undoubtedly coming the reality the fed cutting Interest Rates helps on the margin but doesnt address the under lying fundamental issue. Just because costs drop 150 basis points, doesnt mean you can go out and spend money and support the economy as a consumer if everything shut down so it really is just a game about trying to buy time and i think both side are trying to do that effective bond have rallied not fully to the effective lower bound but starting to push that level. It really indicates the fed has fired a majority of their main stream bullets they cut rates well be here for an extended period they launched massive new Quantitative Easing Program to keep the train on the racks. The last three or four trading days weve been talking about the stresses on the treasury market. Is it mostly resolved at this point . Its still way too early to say. The actions are really an attempt to try to keep things going. Liquidity is still highly deterred one place in the market that im watching closely is the tips market so inflation adjusted returns are very positive. We should be seeing closer to zero if not negative there are dislocations through fundamentals we hear liquidity is difficult and seeing pressure in funding market despite the feds best effort to inject huge, hundreds of billions of dollars of backstop in the repo market, commercial paper and variety of other funding situations, liquidity still poor, trading is still very, very choppy, and it really is just kind of about trying to keep this incredibly important market liquid or at least a little bit liquid, and functioning while trying to hedge risk in the meantime the fiscal policy is still being debated in washington still being put together and more critics are weighing in on any potential bail outs that might happen. That leaves things pretty uncertain for Equity Investors at this moment there may be bail outs may not mean Equity Investors are made whole or even given anything well, look, i think there are a couple of dimensions the main thing thats happening now is you got the Consumer Sector being impacted here in the u. S. One of the things weve written about earlier this year was this divergent economy where we had manufacturing that was under pressure throughout much of 2019 but the Consumer Services area held up pretty well this is striking at the heart of that some policy imperatives that take a little bit of sting out of the courtroom pocketbook and give them a little bit of capital, a little bit of cash to weather through the storm during layoff periods are positive. All will be function of how long the duration of this shut down, slow down, you know, stayathome will be, because if its really just one quarter and right now our forecasts are that the second half of 2020 we see a rebound, then that could actually, we could weather that pretty well. But if its something where the disease continues to accelerate, continues to be fear, we have a slow downs that becomes more difficult to model all right laurie and jon i want to thank you both for your time today thank you coming up, the latest numbers on the outbreak itself well speak to seema verma heres a look at s p premarket movers. These are gainers. Im sure theres some losers whats important to you . Saving for avas college. Financial security. Being able to retire. On our terms. No matter what your goals are, our trusted advisors can help you reach them. Ameriprise financial. Box futures right now are at limit down but markets tracking etfs show they are down a bit more, s p 500 would open down about 6 everything across the board virtually about 6 off this coming as were a little more halfway through a brutal march for markets which now has seen three trading halts and a point range of more than 7,000 points for the dow. Becky, over to you all right, andrew, thank you very much. Lets get an update on whats been happening with the coronavirus. Reporter good morning. So lets see the big picture worldwide numbers top 200,000 with more than 7900 dead in the u. S. More than 6400 confirmed cases. 114 people have died the virus is now in all 50 states after West Virginia reported its first case tuesday afternoon. Around the globe, nations are fighting the virus through increasingly tight restrictions on movement. European union in its first coordinated response will close its borders and close off 26 countries to all visitors for 30 days World Health Organization says europe is not the epicenter of the outbreak back here at home, state and local officials are implementing patch work some of measures. Some going well beyond the administrations recommendation that americans avoid bars, restaurants and gatherings of ten or more people san francisco, they are expanding their shelterinplace order to more than 8 million bay area residents this requires people there to stay home until at least april 7th. And new york citys 8. 6 million residents bracing for the possibility of similar rules, although the likelihood of that happening depends on who you ask because mayor de blasio says hes considering it, Governor Cuomo says hes not. Ill send it back to you, joe. Very good thank you. President trump announcing Telehealth Services for Medicare Beneficiaries in the hopes of minimizing exposure to the covid19 to the most vulnerable. Seema verma, administrator for mid care in terms of the people that may be worried remember seniors at home and Health Care Providers, this seems like a no brainer and something that, that should help immense. Ly can you explain hat were talking about in terms of talk touring Health Care Providers virtually if youre elderly or vulnerable sure. This is a part of the larger effort the mitigate the spread of the virus the white house has put out recommendations, 15 days to slow the spread and all about what every single american can do and the advice were giving to our elderly and those individuals with Underlying Health conditions including the elderly is to stay home. We recognize that we need to do our part in helping them unfortunately, the Medicare Program before usually does not allow Telehealth Services. Those are very limited only in rural areas, doctors that have established relationships with their patients and very short visits sound the president s leadership we have extensively expanded the use of telehealth to deal with the coronavirus. Essentially what this means is that american seniors 62 million of them that are on the Medicare Program can communicate and have a full visit with their doctor this is really important because even our seniors that arent experiencing coronavirus symptoms may either just be a diabetic or somebody with Heart Disease that needs to check in with their doctor they can do that from the safety of their home they dont have to travel or sit in a waiting room. On the other side you have folks that may be experiencing symptoms of the coronavirus, fever, flulike symptoms and for them they can communicate with their doctor avoiding them having to travel, sit in a waiting room and potentially infect other people. So its a game changer and are there other executive orders that are being considered right now, or is everything in Congress Hands . What else would you suggest do you have other suggestions for the president on this . The president has shown great leadership in his Emergency Declaration has been critical for the health Care Community. This allows cms to give waivers of a lot of federal rules and red tape that get in the way of providers dealing with their patients in an emergency so were allowing Emergency Rooms to set up alternative test sites so they can screen patients before they come in to the emergency room were allowing them to use providers across state lines and to give them more flexibility inside the hospital so they can move patients around and were hearing from providers every single day asking us for more flexibility and because of the president s leadership on the Emergency Declaration it allows us to give those providers on the front lines the flexibility they need to focus on patients in an emergency situation. Administrator verma, Andrew Sorkin here great to see you under these terrible circumstances. Were looking at images of people at parties all over the country, still going out and doing things around this country. Are you satisfied with what the administration and state level governments are doing around the country to try to bend this curve . Well, i appreciate all the efforts that state and local governments are getting and the advice they are giving ultimately its incumbent on every single american to do their part even that millennial generation, i have teenagers at home, i have a College Student and i know its hard for them to stayathome, not go out with their friend or go big parties the reality is if they dont do that they could contribute to the spread of the virus. They may not show symptoms or have mild symptoms but they can spread that disease to other people that are more vulnerable. The other issue is that we dont want to overwhelm our Health Care System so we got to all Work Together to flatten the curve and slow the spread of the virus. Becky administrator verma, we have seen that these actions have taken place particularly in areas where there are hot spots, where there are cases. Are these the same recommendations that youre suggesting should be adopted across the entire country at this point the white house has put out recommendations for communities but ultimately its up to state and the local officials to make decisions that work best for their communities. Recommendations we put out are backed by cdc, keeping gatherings to less than ten people, asking people to stay home, to telework, closing of cools. All of those are very important to slow the spread of the virus. We dont want to end up like italy. Its important we Work Together and abide by these guidelines so we dont spread the requires further and overwhelm our Health Care System. Seema, in contrast to a facetoface meeting with your health care provider, how much are you really missing by doing it virtually i know that, you know, theres the ahh and what is that thing, they listen to you with a stethoscope. But you can do almost everything you can do virtually, things will go this way we know house calls are very rare at this point, but when youre in a position like this where you dont want to send a person into a place where theres Health Care Providers and other patients it seems like given our technology that we should be moving this way anyway but its perfect for this example. Yeah. Suffice to say it wont work in every situation. What were trying to downed president s leadership is to give every tool we can give to our providers on the front lines of this. Telehealth services will work in some situations, it may not work in others. This is where the Health Care System is going generally. It certainly is more convenient for patients but it may not work in every situation i think we lost becky for now. Go ahead, joe i can hear you. I lost you for a second but i can hear you now okay. Sorry. We have a little bit of technical difficulty becky, can you hear us i got you i think the key was just down. Very quick question for you administrator. We talked to the head of the mayo clinic that talked about the number of ventilators. He didnt think it was the best idea to move those ventilators because youre waiting to see when this virus moves across the country. How many ventilators does the federal government have and where are they so we do have a stockpile theres thousands of these ventilators and the president has been talking to manufacturers to increase the supply of ventilators and its not just ventilators, its all supplies, masks, gowns and a bunch of other things that Health Care Providers need when they are on front lines. The idea is to make sure were working towards mitigating the spread if we aldo our part this will help decrease the numbers and not overwhelm the system so we dont get in a situation where we dont have enough equipment where are those thousands ever ventilators that the federal government has where are they deployed . Some of that is classified but theres a system in place. Essentially right now providers order equipment through their normal channels and they can still do that. But if they get in a situation where they dont have enough supplies they can work with their State Government and let them know and the state makes a request to the federal government and then they make those supplies available great administrator verma, thank you very much. Thanks for your time this morning. And well let you get back to important things im sure youre involved with that even this early coming up when we return well talkto florida senator marco rubio for latest on measures to help Small Businesses in the face of the coronavirus pandemic and later, boeing falling again this morning. That stock down 40 with the president saying yesterday the government will be helping the company out. Cnbc special cerovage continue right after the break. Dence. So we can spend a bit today, knowing were prepared for tomorrow. Wow, do you think you overdid it maybe . Overdid what . Well planned, well invested, well protected. Voya. Be confident to and through retirement. Weveryone, looknk isntat your phones. The design thinking, the digital engineering, security, blockchain, and we will be first to market yes. When we do we launch . Unfortunately, in 2 or 3, hours. Why the delay . Cognizant is helping banks use Digital Technologies at scale to advance speed to market. Goodbye fred. 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Breaking news, worldwide Coronavirus Infections topping 200,000 and u. S. Markets are once again pointing to huge loss when the bell rings. Automakers are mulling temporary shutdowns and Major Industries from air travel to aerospace to tourism talk bail outs and billions of dollars in emergency aid. In washington the Trump Administration working on a potential trillion dollar stimulus package while the Federal Reserve takes even more Emergency Action cnbcs special coverage of the global Coronavirus Crisis and the markets in turmoil begins right now good morning welcome to cnbc breaking News Coverage of the Coronavirus Crisis and markets in turmoil. Im joe kernen along with becky quick and Andrew Ross Sorkin u. S. Equity futures at this hour, once again are pinned the at the lowest levels that they are allowed to go premarket were watching, therefore, the etfs, which have been right around here. This is a little better than some levels weve seen that would indicate if the futures were free to trade that he we would be down just under 6 on the dow. Five and a third on the s p. If the s p 500 falls 7 or more that would trig ear Circuit Breaker and 15 minute stock trading halt weve seen that several times. Another 15 minute halt with a 13 market drop. And a suspension of trading for the day with a 20 drop. Treasury yields have spiked in recent sessions on the ten year. Were back above 1 at this point but all prices have continued to decline down in the mid20s. Becky. All right, joe, thank you very much. The coronavirus as you know has been causing massive disruption to American Life and to American Business just in a matter of days here at cnbc were covering all the aspects of this today, everything from the governments ten figure stimulus package thats been put out there toto extreme actions taken by the Federal Reserve and all the Critical Industries that are now facing incredible strain well start things right now with eamon javers this morning good morning reporter good morning to you, becky were seeing from the president and his twitter feed hes got some news from the fda hes going updating us not clear exactly what news that is. I believe that the president here is talking about the 11 30 previously scheduled News Conference at the white house which hes been doing each day Vice President mike pence leading that task force, but the president has really taken a leading role in it, visibility wise over the past couple of days take a look at this big number from treasury secretary Steven Mnuchkin this is what he told senators yesterday could happen in the United States if the administration and congress dont take any action. 20 unemployment thats something that is on Great Depression levels in terms of unemployment in this country. Thats the urgency that mnuchkin was pushing those senators with yesterday telling them they have to take action here or else this is what well see across the country. Well wait and see where this all land today they do not have a vote scheduled on the house bill yet in the senate. They are also working simultaneously on the administrations proposal for up to a trillion dollars in additional stimulus. All of that coming together on the fly. A very busy day here in washington im not sure if i should toss up to Steve Liesman or back up to you. So ill toss it back up to in general. Well play interference Federal Reserve stepping up its actions to ensure credit continues to throw through the economy with three key announcements in just the last 24 hours Steve Liesman joins us right now to talk about it steve. Reporter andrew, you know the title of the next thing well put out is fed goes all in but may not be may still have a few thing up its sleeves. But it has deployed several of the major elements that it used in the financial crisis. Sunday night it went to ero. Announced 700 billion in mortgage and treasury purchase as well as extending the discount window, loans and terms and the swap lines yesterday three new things, the primary dealer Credit Facility, the kitchen sink of all lending possibilities or short term lending, commercial Paper Funding Facility and then, two not one but two 500 billion overnight night repo the pdcf, you can bring anything there if youre a primary dealer commercial backed asset backed paper, corporate loans, corporate debt all sorts of things munis. Commercial Paper Funding Facility is another one of those. Mostly u. S. Businesses, also other entities as well about 700 billion market eligible for this and that importantly includes a 10 billion back Southern Plains fr backstop from treasury other programs could be structured like this a pot of money about 50 billion. Im actually despite everything is down today, treasuries are down, up in yield, stocks are down, im hearing some decent things about the effects of these programs here let me tell you what some Senior Market participants are saying one said the initial disappointment in libor cp space postcpff announcement that was one good thing i heard. Also this morning another one comments, repo markets are responding to the fed repose those are the 500 billion things i told you about and off the run treasury runs. Market depth after 9 00 a. M. Is still suspect. Too soon to tell with cp this is what the person needs to say. May take a few days. Dealer Balance Sheets still full the fed comes in everything will be okay. It will take a little time to clear. I dont know if thats good or bad or positive for stocks but ultimately you got to get the credit market working. If you think about all of the treasuries that will be issued in this country at the same time that this is going to happen around the globe around the world. You name the country, who is going to buy all of these treasuries im not sure thats being thought about in a meaningful way right now. Not to say we shouldnt approach it this way but go ahead reporter lets put up a chart on the ten year. The best explanation yesterday for why the ten year rose in yield was because of the expectation that around the World Governments are going to be tapping the longer end of the curve and coming out to financial of these things. So, look, i think theres a tremendous need for yield. The theres a tremendous reach for risk assets. You have a ten year bond, somebody will be out there right now lending the federal government money at 1. 1 what is it i couldnt see it. 1. 08 for ten years. You know what they used to say if its free give me three of them 1. 08 money by the way, take off inflation minus 2 or minus 1. 5 thats a negative real yield. Steve, thank you becky, over to you andrew, thank you. Our next guest has been working with treasury secretary Steven Mnuchkin to try to get some relief to business and courtrooms who have been hit so hard by the coronavirus to this point. Joining us right now is senator marco rubio. Hes the chairman of the committee on Small Business and entrepreneurship and senator thanks for being with us today thank you for having me on. We were just listening to all the moves the fed and treasury as taken to make sure they help wall street. I under the reason they need to do that is to make sure banks can act like a condid you to it Small Businesses Small Businesses have been hit incredibly hard. People working for those businesses already getting laid off in droves. What needs to happen right now we need to act quickly in that regard and start thinking about not just Small Business but people who work information. Our biggest concern is that we are going to be separating people from employment so think about it this way somebody owns a drycleaning operation, they have five employees who know how to operate those machines this person will see a dramatic reduction of customers and clients coming in. They are forced to layoff five people those five people are forced to go home. Not only are they locked up at home and collecting unemployment they have a second fear and that is there a job for me when i come back. The Small Business has concerns when this ends and i restart are those employees still going to be there and if not by the time i find new people and train them it will take me another month to operator longer and i cant survive it were trying to figure out what is the most effective way to get wash into the hand of Small Businesses so that they can maintain payroll for at least a six week period and not have to disconnect from these employees. And theres an existing program im sorry theres an existing program the southern aid program not that program for per se but ideally we would use these over 800 lenders across the country, these big banks plus hundreds of Small Community banks and credit union and so forth to deliver what would be initially considered a loan, but up to full amount of the payroll, and if, in fact it is used for payroll that loan would then be forgiven and whatever portion of it above that that they use for some other purpose can either be returned or convert from a year from now into a loan. The bulk of it would be, not all of it be used for payroll for six weeks. Thats huge what you just said because ive been trying to figure out how a Small Business operator would do that you want to take out a loan, perhaps, you want to pay your employees but youll never get back the sales you lost if youre a dry cleaner, a restaurant, provide any sort of service. Those sales are gone your idea is to make sure that gets to them and then forgiven right so the way to think about it if your payroll for six weeks is 10,000 or 15,000 and you borrow 15,000 and, obviously, at the end of all this well be able to see from your filings whether you maintain your payroll, the same number and figures and so forth that entire 15,000 would then convert into a grant basically. Now if you use 10,000 of it the for payroll and other five you used for some other, whatever it may be that you want to do thats outside of overhead, then a year from now because there wouldnt be any payments no matter what for a year, a year from now that would become a traditional Small Business loan and, of course, the government, the treasury would guarantee this 100 . What i like about the proposal is it isnt a government interaction. We would be relying on our existing network of lenders under the sba program and theres over 800 of them across the country. Not branches 800 individual lenders including big banks but scores of Community Banks and Credit Unions it is a Big Government program to the extent that it would be federal dollars that would then turn into grants. These banks wouldnt be on the hook to go ahead and forgive the loans. The alternative if fund everybody through the unemployment system. Youre disconnecting them from employment the last thing we need to do is disconnect people from the security knowing they have a job to go back to. People are facing uncertain certainty. They are traumatized by weeks of not being able to do certain things we dont want to add the worry theres no job to go back to think of the start up costs and impediments for business. They have to scramble to find people that used to work for them or hire new people and train them and in some cases that alone would be impossible for them to do after going six weeks without sales. You know, i love your plan but i think it needs to go handinhand with a program that does extend and boost Unemployment Benefits for employers who dont qualify or cant get access to them i spoke with a number of people yesterday just talk about one accountant who said he has 20 clients, maybe more who have had to lay off 50 or all of their staff since monday these are moving companies about caterers about lawn service and tree companies. Tree Service Companies that go out there. Those employers are already going without paychecks at this point and theres no guarantee that the Small Business will immediately hire them all back the theres a restauranteur who says he needs money from the government get back up and running and it will take him four weeks before his restaurants are up and running so, obviously, there are people who have already made a decision because of the uncertainty. This program is a proposal not in place just the urgency behind it people are making dess right this very morning what they will do with their staff. Some maybe had two, three weeks to burn through some cash and keep them on hand. Some people this will not solve every problem. There will be people left without unemployment and obviously there will have to be there is proposals to work on to address them how can we keep as many Small Businesses viable and connected to their employees for as long as possible so we dont create an additional disruption it bears saying were not talk here about some systemic failure of the system. Were not talking about companies that did something wrong and now are asking the taxpayer to bail them out. What were basically talking about is government edicts, government prohibiting private companies from operating because of a Public Health emergency im not in favor of these programs as a public feature of our Public Policy but theres no alternative to inject cash into our economy than the government because you have prohibited the privatesector from operating in various and important sectors. That feeling, that sentiment you just mentioned just feeling a sense of urgency, do you get a sense thats universal against the other 99 senators you see in congress no. I think its widespread. Its not universal i still think there are people that sort of have not come to the realization that we are not dealing with an extraordinary circumstance i think there are still people that dont realize were in unchartered territory. Theres no playbook for this sort of thing. That were confrongting it. The closest thing is mobilizing after world war ii theres no playbook for this this is an extraordinary world altering moment that were living through there are two things that are certain. Number one were going to continue to experience even unforeseen and unexpect ed impacts of all this in the days and weeks to come, and number two, is that we will not emerge as a country or a world the same after this there will be changes that will happen systematically. I dont know what they will be but this sort of event, the impact, every continent, every advanced economy this way is the kind of thing that become pivot points in history for better and for worse. Senator rubio, thank you for your time today and i do hope your colleagues pick up your sense of urgency very quickly on this thank you futures are trading as low as they are allowed to in the morning were watching the etfs, closer track of major index and once again the dow is down, indicated down more than 6 6. 01 . Oil prices slumping again this morning on demand, fears, combined with supply fears 24. 47. Down almost 10 on west texas. And check out quickly how big banks are looking this morning and how they are trading premarket you can see goldman sachs, jpmorgan, citigroup, wells fargo, bank of america all of them down 5 , 6 worldwide Coronavirus Infections have topped 200,000 6,500 cases have been confirmed in the United States 2,000 more at this time just yesterday 114 people here have died. Latest oped in the wall street journal dr. Scott gottlieb talks about the capacity of u. S. Hospitals and how there still could be time to flatten the curve of rising number of cases. Dr. Gottlieb joins us on the phone and former Fda Commission and serves on boards of pfizer and lumina good morning, doctor lets talk about flattening the curve for a second a lot of steps have been taken over the past several days across this country and in this state and city where we are right now in new york. As people are trying to look at the timeline of what this may or may not be, the president , of course, mentioned july and august recently. Investors are trying to figure out what this timeline looks like of course the timeline gets extended out the better we do in terms of flattening the curve to some degree. What are you seeing in terms much estimates and how that flattening is changing or is it . Werecertainly having an impact on the scope of this epidemic and the contours thechd and how many cases well get at the peak and how long it will last steps weve and the in the last two weeks are very aggressive. Im heartened by what mayors and governors have been willing to do the president s reference is to the analysis that is circulating in washington and white house. I want shows us peaking out late april early may. If you peak in april, end of april, seven weeks from now you still continue to accrue cases for another seven weeks. Thats fake. That analysis would show this epidemic to continue of course into late june and that gets you into july. That might be what hes referring to, im not sure on that peak issue. Say were in late april early may it gets extended out through the end of june and maybe thats the way businesses should think about it and investors should think about it if thats the case the social distancing steps and Everything Else that were taking today, in your mind they need to last through the end of june . I mean im trying to understand if people look at the peak because people look what took place in china and elsewhere and after it started to peak out as you know at least in china some people went back to work and you started to see increase of business again is that the right way to think about it or not so much. It will be very hard to take the foot off the brake if were still accruing cases i think cool closures will be in perpetui perpetuity you dont want to lift restrictions too quickly and have another resurgence in cases. You can lift them and put in place other measures one thing to contemplate do we require people not to wear n95 masks or procedure masks if young people are spreading this. They are in short supply n95 masks Health Care Workers need maybe other things we can substitute in as transmission slows down what do you know about the supply chain in terms of masks becky asked about ventilators to several of our guests this morning. Administrator verma, we asked about where they were, how many we had theres not actually a real number out there right now that people want to distribute, or when i say distribute, disclose, rather yeah. We have ventilators in the National Stockpile one official over the weekend used the figure of 12,700. It might be slightly more than that but not much more in the stockpile. Some are on order now as well. But there arent a lot not hundred of thousands of ventilators in the stockpile low tens of thousands in the stockpile or something around 12,700 figure. Nationally you have about 62,000 full featured ventilators and another 100,000 park shall featured ventilators those are also assisted breathing devices like c ppap b you dont want to use those. You want focus on 62,000 full featured ventilators the figure that i used in the wall street journal today is 100,000 ventilators either available or in the stockpile and thats a pretty safe estimate dor. Gottlieb i want to brin becky into the conversation. Something you adjustment said about the cpaps and not wanting to use them because they could spread the virus if youre an older person using a cpap or somebody with an underlying condition should you stop using it for the duration of this virus . No. Anyone who needs it for medical reasons. Im talking about in a hospital setting, a machine that provides some pressure. That isnt in an enclosed room where you can blow virus around. Anyone at home on any assisted breathing device continue use it doctor, in terms of weve been talking to you literally daily so trying to understand the progress thats being made one way or the other you know, if you look whats taking place in italy the numbers continue to ramp how much should United States take away from that experience relative to the experience of south korea. One of the things investors and frankly policymakers are trying to do is look at these different models and its very hard to ascertain why certain things are happening in certain regions what south korea did was very aggressive testing right at the outset in an effort to contain and isolate people they tested one in 200 people and tested young people. Right here in the u. S. Even though we have more testing capabilities we cant test everyone certain people are being told to stayathome and assume you have a coronavirus. The problem is if you dont have a positive set result, you are unlikely to stay home. Telling people you have it could be helpful in italy couple of things went wrong. People showed up at hospitals when they were sick and spread the hospital older population, higher smoking rates. Regions why italy, the background in italy was more conducive to a bad outcome versus what our experience could be if we do the right things dr. Gottlieb always good to sanctify please stay safe out there joe, over to you futures trading is low as they are allowed to go they are locked down limit as a result we watch the etfs which are free to trade. The dow is indicated down about 6 s p down almost, in fact exactly the same right now the nasdaq not as much just over 5 puerto rico. Take a look at the biggest names in tech. Fang stocks trading this morning down anywhere from three in the case of amazon 3 to a little bit over 6 meanwhile boeing was in a dominant financial position, a little more than a year ago. But now its seeking billions of dollars in aid from the u. S. Government thats a current quote we got there. So factor that into the dow being down limit, boeing itself down almost 19 points. The coronavirus and the grounding of the 737 max both weighing heavily on the aerospace giant. Phil lebeau joins us with more what was the high, four something . Reporter i thought it was 430, 425, Something Like that. Look when Dennis Muilenburg was ceo it was 137, 138. They erased all the gains. The reason youre seeing the stock trending closer to 100 and continuing how much money will the federal government give to boeing and by extension the Aviation Industry with loan guarantees however its structured, how much aid will be coming their way and how quickly will it be coming their way. Boeing is seeking at least 60 billion. People are saying is that 60 billion that goes straight to boeing remember boeing the turns around in about 70 cents of every dollar they are paying out to suppliers. The aid that goes to boeing is not like it goes into boeing and they keep it in a vault and say its for a rainy day they are immediately turning around and paying that money out at least 70 cents on a it would come with some loan guarantees, though terms have not been laid out. I want would be separate from the 50 to 58 billion dollars that the Airline Industry is seek Carter Copeland was on earlier is that 60 billion include money for the airlines no boeing is seeking 60 billion separate from anything that might go to the airlines by the way we have to talk about jetblue in a little bit. Boeing has drawn down on the 13. 8 billion term loan they took out a month ago that gives you a sense how quickly the company is burning through cash still has other credit lines this is a dire situation increasingly you hear people saying well look if the government is not going step in and step in quickly what openings are out there for boeing ive heard people discussing the possibility of bankruptcy with boeing doesnt mean boeing will file bankruptcy but at some point that discussion has to be had because if youre a corporation and youre thinking about bankruptcy, you want to go in from a position of strength with as many assets as possible as opposed to falling and tumbling into it as we saw with General Motors back in 2009. I talked about jetblue to give you a sense how quickly airlines are burning through their cash he they dropped 8k. They took out a term loan of 1 billion on friday. Last friday. How quickly did they burn through it by monday. Three days robin hayes out with a note today to employees basically saying that on an average day in march of last year they took in 22 million in bookings and ancillary fees guess what they are taking in now . Less than 4 million give you a sense how quickly things have changed for the airlines and how dire the situation is phil lebeau in chicago. Quick programming note apple announce ad new ipad and i want to thank tim cook personally because it has a track pad. Some levity to a terrible situation. When we come back well get to serious issues on the table. Mohamed elerian when well see a light at the end of the tunnel take a look at u. S. Equity futures. Ppied at their lowest limits now. The market looking to open up ouabt 5 , 6 down across the board. Stay sound youre watching cnbc. We see engineers simulating the future to improve today. At emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. Welcome back february Housing Starts data hitting the tape and we are going to go now to Rick Santelli joins us live from chicago hey, rick. Reporter hi, joe ill tell you what these numbers are lower than expected but theres some really good news here all right. So on Housing Starts, 1. 599. So just shy of 1. 6 million this is a really good number, actually and the reason it looks like its down a bit is because last month had a very, very strong revision. The revision to 1. 624 is basically a 13 year high, so when we comp this just a small drop to 1. 6 or under it looks like its down a little over 1 but its still a stellar number. If we look at permits at 1. 464, also a little light on expectations, so were down 5 plus from 1. 55 in the rear view mirror whats ironic about that like on start side the permits number 1. 55 million seasonally adjusted units is basically a 13 year high both are in the zip code of 13 year highs based on revisions they are retracing from really lofty levels quickly, so much going on by the pound. Hasnt traded at these levels on the dollar since we were making back to the future movies in 1985 and if you look at the yield curve, tens minus two, zoom, zoom, steepest in about den years. If you look whats going on in italy, france outside of the highest sovereign credits in europe they trending higher. Andrew back to you pop nba team owners were some of the first people to pledge support for their arena workers. Dallas mavericks owner mark cuban said companies bailed out all employees should have the benefit of a possible turn around in the form of stock compensation mark cuban joins us now on phone. Good morning to you, mark. Good morning. Weve been through these bail outs before and theres been a lot of political finger pointing afterwards you have a thought about how this should to be done yes we already know whats going to happen a year after this plays out and it will, well look back and say why didnt we consider the workers, the every day hourly worker, the people, you know, making minimum wage. Why dont we reward them as well lets get ahead of it. Whatever we do in a bail out make sure every worker gerts compensated and is treated equally and executives dont get rewarded extra to stick around because they got nowhere else to go the government is taking the risk out of the equation lets treatall workers equally how would we do that. Look all sorts of stimulus plans, bail out and the like and one thing you want to do is get the money into the system as quickly as possible. You dont want people to not take the money the more strings that you attach to it and im not suggesting you dont the more you do the more likely it is certain people may hold back. So im trying to figure out how to capture that balance. Two different things. Getting money in the system is the function of the fed. They are obviously taking those steps right now. Two is when theres a bail out when theres a bail out and the government comes in and offers assistance to an organization, or Public Company in particular, whether its an airline, whatever it may be, they are most likely steps taken by the company and historically thats whats taking place, reward the executives give them more stores give them options. Whatever it may be whatever it is that a company does for their executives they should be required to proportionately do the same thing for everyone else that works for the company. Period end of story. Part one part, two no buy backs not now, not a year from now, not 20 years from now, north effectively youre spending taxpayer money to buy back stocks and to me thats just the wrong way to do that downing thing. Downing they we should be helping Certain Industries how would you approach. It i think we have to this is cascading. Get worse by the minute. The number of layoffs is skyrocketing so if i walked in the door first thing i would do is prioritize i would create effectively and this isnt the right word, effectively create two buckets bucket number one and we have to do these things in parallel. Bucket number one how do you help companies of all sizes to keep paying their employees and not lay them off or fire them because we want to keep people employed even if it is make work, even a Tennessee Valley authority all over again and were just subsidizing companies to keep their employees on farreller and finding things for them to do because keeping them on the payroll will pay off more in terms of minimizing taxpayer requirements than releasing them or firing them or laying them off and then having to go find jobs in the future thats bucket number one do what you can to keep people employed bucket number two we see people already unemployed if youre going on to unemployment or federal government assistance, then maybe we pay them a bonus. Not a good word but give them a check for thousands dollars to help them get through the immediate need because it just has been laid off or dont have a job. That helps people get through these problem times. But they should be just two very distinct you have to keep work, working to help people stay employed i dont like the idea of just giving everybody a thousand dollar check for a lot of Small Businesses, you know, if they know that their employees are going to get a check and that business is struggling they might say you know what . Im going to lay them off or fire them because i know they have a backstop of some sort and when this is hopefully all over in three or four months like people are predicting well figure it out then that crates a far greater stress on the system. So i really think the priority needs to be one, keep people employed and two, those who have lost their job, weve seen the entertainment industry, weve seen the hospitality industry, the Airline Industry, the transportation it is t transportation city decimated. I dont have a problem with those people as they get on federal assistance giving them a check to help support them and the economy but we have to deal with both and the priority need to be on helping people keep their jobs mark, hang on for a second. We want to bring joe into the conversation hey, joe. Hey, mark, how are you . You know, nobody likes any of this stuff all bets are off, arent they . Any time we think, you know, we dont want to do this. Do we really need to talk about moral hazard when youre talking about a deadly virus i dont know it seems like any other time i understand, but i agree, joe. The profession of enemy is prime risk in normal times you want to look at the distribution of outcomes and try to do the best thing that helps the most number of people but this is a new world, literally. This is a new new normal we have to look whats in front of us and deal with it yes people will scam the system. But you hurt the people that need it and risk supporting the economy and what the tragic things that could happen there because youre trying to avoid some people scamming the system. You do bring up a good point about moral hazard what we can do is increase penalties. Like when we went through the financial crisis, you know, people talk about how no one went to jail as part of all of this, you know, whether its a bail out, whether its a thousand dollar check for those who lost their jobs we should add if you try to scam the system in any way, shape or form there is jail as your penalty because we want to introduce a moral hazard im not talking about something ridiculously draconian, but still there should be something. Shouldnt be a civil issue it should be fully a criminal issue and everybody should know that going in. Mark, i just, if we have to decide what kind of snap back well get when we do get through this and, you know, i pray its sooner rather than later, how psyched will you be to sit on the side and did you appreciate it enough im jones in on draft kings. Albeit on esports but you cant do that any more missing the final four, that will snap back you know, we all use sports as a way to celebrate a way to get excited, a way to come together nobody throws a parade when apple or google will have the most amazing quarter they ever had. But when a team win as championship they throw a parade so hopefully well have the olympics and be able to come together as a country around our team, the u. S. Olympics team and that will being a great for us well all get out of the house well all celebrate together hopefully when the nba and nhl, major league leak soccer, major league leak baseball, football will start again and we get excited about our communities. Sports will be a vital mechanism for bringing people back together when this happens and so, yeah, im excited for that but in reality basketball is the last thing on my mind right now. But i will say were using the mavericks to do as much as we can to keep people energized and engaged while people are stuck at home. Mark, well bring becky in if we can mark, its good to talk to you. I saw your reaction, i think we all did, the cameras were on you when you were on the sidelines of the game to find out nba was shutting things down your reaction i think at that point was Something Like are you kidding me or something along those lines maybe. Youve changed your tune really quickly. Kind of walk us through your emotional, you know, the hill you climbed and fell off back on the other side we have considered all of the potential options of the mavs management and really what ignited my response prior to the game i met with the players. One of the players said whats the chances the season gets suspended or postponed and i said 5 , 10 at most you know i considered it but i really didnt consider it likely based on information we had at that time. Then went it came across that rudy gobert had been sick and one game had been cancelled and the season was cancelled, i was just stunned then my mind started thinking, you know, the entrepreneur in me took over what are the elements that i need to consider going forward, you know, what are my responsibilities, you know, who is going helped. What are the opportunities, and who will get hurt . This was so drastic and so outside the realm of anything i really considered likely that thats when i started thinking about, okay, who will get hurt the most and what can i do and how can we make sure that everybody lands on their feet because, you know let me just say this when youre blessed like i am, the valve one marginal dollar becomes minimal. So ive gotten to the point in my life its not how much more money i can make but what are the types of impact i can have and so that literally was one of the first things that crossed my mind what can i do to try to help people and make it better and starting with the mavs employees, arena employees that was my focus so when i did that interviews thats what i was thinking about. Obviously, my family and my mom who is 82 and other people like what happens next because it was complete uncertainty then. Mark, thank you we got to watch your reaction. Im sorry, could you repeat that andrew. I was going to ask mark a final question you invest in the markets. Yes what your thinking . What would you do . You know, ive been putting in 1 , 1. 5 to work on every down day buying mostly spys i sold some puts and sold some calls on things i had because the premiums are just incredible i mean its stunning the premiums that are in place right now. But it looks like were starting to get into a trading range. Up 5 , down 5 up 5 , down 5 im not sure why im not quite sure if the kick backed in yet and they have good data to start making a lot of trades and so, you know, it felt like for a while we had active management doing all the work and trying to figure things out and now over the last three days it feels like were still getting more all gorithmic trading. Ill act coaccordingly. Im like everybody else. Ill dip my toe in the water hoping two years from now this will all be a nightmare that we put behind us and the market will be much higher. Lets hope youre right mark cuban thank youso very much and stay healthy. Keep on working its good. It gives us all a sense of normalcy when were stuck at home and turn squawk box an and cnbc all day long. Makes us feel letter thanks very much. Joe over to casa kernen. I do get emotional thinking about it mohamed will come on now mohamed weve been speak with him for a while, a couple of times a day. Mohamed, i have a studio audience since were in our home and you have a good friend from penn, you guys have become fast friends and she just of thes to stick her head in and say hi theres blake. I have penelope over here. This is a family situation now mere social distancing and selfquarantining. Now we have to talk about this serious stuff. Nobody laughs. I make jokes i have a studio audience if you dont get anyone to laugh. But, anyway joe first and foremost i did smile. Im so happy to see blake. I was waiting to bring in the dogs as well if youre going to bring in the family, bring the whole fill a bring the kids and dogs. That might be a problem with the camera guys. That might take a while to get everybody acquainted if you know what i mean. Anyw anyway, mohamed, we just heard from mark cuban from his lips to gods ear from the trading range. Do you feel at this point youre starting to see some signs of a bottoming process at this point . So first how can you not love someone as smart as entrepreneurial as mark cuban who loves sports and uses phrases like new normal and cascading. Love him i totally agree with him that were in a very volatile range but volatile range for now around a downward trend still. So you can play the volatility, but recognize that the most likely outlook is still down and thats because weve entered a new phase, joe it is not just about economic deleveraging and all morning long youve been talking about layoffs, talking about whats going on this is economic deleveraging. We also having financial deleveraging now thats accelerating and the fed has finally moved into more focused and laser focused measures and thats a really good things but its moving quickly. So be careful of this combination of economic and financial deleveraging it takes its own dynamics. Take. Mohamed, i still do you feel that in past market moves, youre excellent at at predicting as well as summarizing whats happening would it be possible that the market knows something positive before we do in other breaks it usually does. In this one, i dont know if the collective wisdom of the market can handicap the pandemic or what our chances are to flatten the curve in this country. I dont know if its a different situation this time or not or if you can use consensus indicators to find a maximum bearishness and if that works when the next day you might find out something horrific from the pandemic i think once again the Financial Markets will turn way before the real economy turns. They will lead the real economy. Second, importantly, i think when that turn happens, it will be very sharp. So you will get much more of a vlike tendency than you will get in the economy, which will be like a u that feels more like an l importantly i think this time around, joe, what turns the market first is not going to be because it has figured something out before the real economy has. Because of exactly what you said this is about health, this is about fear this is about things that the market is very hard to predict the reason why is because it will overshoot it will overshoot to a level where people will look at the cost benefit, will look at the a symmetrical risk and say ill bet on it here yes, the Financial Markets will turn first and will do so in a violent manner but it is because it will overshoot the situation. C situation in china, they got a handle on it, if we believe what theyre telling us, but other places, the point of getting it under control seemed to go past. If we cant get it under control, its hard for traders to stay long for even over night. Yeah, but remember the phases i completely agree with you, but remember, six, seven weeks ago i kept saying be careful of the what happens when you get an economic sudden stop we have not gone through this before we have never had an economic sudden stop. Its ugly. My next thing was respect technicals technicals are now in charge now the next stage you will hear me say is this is an overshoot, guys, i know how bad it is out there, it will get worse economically not only are we looking at a sharp recession, we may have a depression i just tweeted its important to understand what happens when economic and financial deleveraging come together markets will overshoot that is the judgment and like mark, people who enter this, including me with a ton of cash, very, very risk adverse in terms of our positioning have started nibbling we nibble on things that have very, very strong Balance Sheets all right great, mohamed, thank you. Boeing just trading back and forth this morning thats at 100. 30 get back to becky. Mohamed, well see you im certain again soon thank you for getting in front of the camera for us this morning. Appreciate it. Joe, thank you. Lets get to jim cramer standing by as well im not sure if you heard what mohamed had to say, not just a recession but a depression here as well. I hate to characterize these things its hard to imagine a depression that could end in a v. Im not sure if it advances the ball, i do love mohamed. Its a hiatus, its a stoppage of work almost nationwide. Twothirds of the country is service. Huge chunk of the gdp. What we have to do is think as big as possible. Encourage the government to think as big as possible 1. 2 trillion, 19 trillion economy, no, it has to be whatever it takes. You dont try to quantify it like dr. Fauci said the other day, when we could expect an end, we expect an end when it ends im urging secretary mnuchin and President Trump to think much bigger and think about situations we had in our history, not unlike general marshall in 1939, realizing we are the 17th largest army, or general ieisenhower realizing that we are in a race with the soviet union, or president wilson with the flu and world war i. Make your priorities, have Financial Health and actual health, and tell us. I know theyre trying to lead. I think theyre doing an able job. But this is a moment is this an fdr moment where fdr is trying to figure out fear, fear itself no, the fear is real its not the same. We keep calm we look for leadership we look for our brilliant scientists to come up with something. We dont give up hope. We try to figure out opportunity and recognizing that the risks are big. To quantify it in a sense of what it means, keep it historical and factual otherwise what will happen is well create panic among the 100 million hard working people who are trying to figure out what to put on their dinner table next week thank you ill watch closely coming up in a couple minutes see you then thank you. Andrew joining us now is Steven Romick from First Pacific advisers good morning to you. Thank you for joining us you heard what jim had to say what mohamed had to say. Also what mark cuban had to say about where the economy is headed i want to understand where you think the markets are headed as well the coronavirus is the first social media virus i dont want to understate the impact, its created at the very least a panicdemic a lot of this volatility is dealing with two issues. Financial. The loss or reduction of our individual income or net worth, and if that doesnt create enough stress, we have the risk as we come facetoface with our own mortality. We have not collectively faced the two together in the u. S. , though thats been the case in other countries. This has created an unprecedented negative feedback loop, lost jobs, lost income, if one thinks about the longer term impact, its hard not to be somewhat more invested, assuming you had cash available like we did. One day people will again be flying in planes, staying in hotels, eating in restaurants. But the question is, is this a v or a u secretary mnuchin was talking about 20 unemployment in this country. Thats the direction we could go i would argue now that the market may be undersold. I think the question is how long does the if it is a u and not a v, however does the bottom of the u last when we invest, we want to think of what we want to we should shut our portfolios down or shut the market down, im not saying were doing that, its a hypothetical but if we shut it down and think about these companies in five years, four years, three years, thats where i get a greater comfort level. What do you think will happen to the treasury market theres two schools of thought one is there will be a demand problem across the world for treasuries given the bonds that will be put to market by just about every country. The other view is maybe we have the cleanest shirt in a whats the phrase . In the dirty laundry you have to choose how this will work out its all relative. I dont know the answer over the shortterm i dont know any answer over the shortterm with the way the governments are printing, borrowing money, its hard to imagine that rates will remain this low well into the future and that we wont have inflation at some point. One of the worst trades out there is to be long treasuries, long data treasuries its returnfree risk. Okay. Steven, thank you for joining uus on what has been several weeks now of difficult and challenging days becky and joe, back at casa kernen and casa quick. Well see you tomorrow do it again tomrow. Get your wifi under on trolcont. Thanks to our viewers as well, who send us great notes. Its a heck of a moment. Cnbcs special coverage continues right now. This is cnbc breaking news, market selloff good wednesday morning im Carl Quintanilla with jim cramer, david faber all coming live from separate locations as we take caution with social distancing and the coronavirus the fiscal, the monetary response, the progress of test kits, travel restrictions,