Transcripts For CNBC Power Lunch 20240713 : comparemela.com

New york stats state we have full Team Coverage stooefr steve is all over the unprecedented action the package has hit some snags what is the latest the out come is looking like the same one we got last night with democrats not signing onto advance the 1. 6 plus trillion dollar stimulus package. We have a vote right now of 4442. 44 yays. 42 nays. You need 60 votes to pass it its difficult with five in swe selfquarantine. Bernie sanders not voted last night. He was following this from afar and following this in negotiations from there. Senator Chuck Schumer said today this vote is meaningless the package is done. The real work is happening behind closed doors. To that end he said that work is very, very close to producing a deal that inif he canned some optimism into the market but he is making clear hes not authorized democrats to back this move to advance the vote as it stands. We know cabinet members have been meeting to reach a compromise slow and steady progress is what they are calling it. If youre a long term investor, its a good time to buy stocks the situation overtook a lot of things and weve had to change our strategy just like every other country in the world had to change our strategy regarding the market, right now i would probably make the same point secretary mnuchin made if youre a long term investor, i would bet on america reporter he would not say whether he would support a further stimulus measure if one was needed in a few weeks saying hes cross that bridge when he comes to it. As for the comments a few weeks ago when he said the virus in late february was contained, he said hes only as good as the facts and the facts change lets get over to steve with the Federal Reserve unprecedented action, intervention good way to put it. Unprecedented, historic. Some are calling it very aggressive the Federal Reserve, this was not part of the major announcement and thats what makes it so curious. Said it would be buying 125 billion of securities every day this week. Mortgage backed securities in the amount needed. Instead of saying theres a number on it or a timer, its going to keep doing it in the amounts needed in order to provide liquidity to the market. Lets go through the emergency steps now. First it announced its working on and hopes to soon have a main Street Lending facility. Unclear, a lot of detail offeil unclear. Itlying on the stimulus bill in the senate. Its going to purchase and or finance Corporate Bonds, Asset Backed Securities and Municipal Bonds opinion all of these the Federal Reserve has not taken. It will purchase commercial Mortgage Backed securities let me put some context on this. The Federal Reserve is now pledging 625 billion of securities this week by way of comparison, it did a qe2 program over the course of many month where is it did 600 billion over months. Put the two together what it did last week, nearly a trillion dollars of purchases between the two weeks. There may be more yet to come. Tyler, i am talking to people in the markets. Ive heard some improvement. Treasure said to be trading better the repo market a little better. Still things like commercial paper and money market still having problems here in these credit markets now thank you very much steve reporting for us volatile day for the markets just like they have been for the last month or so lets get to bob for the latest. Hi, bob. Despite what you heard if the federal preserve, unprecedented Corporate Bond, even Corporate Bond etfs. Thats quite a change here a thousands point move in the dow. 2192 if you look at the s p. Thats the low were off of this 37 you see this choppy w trading range. Retail, anything consumer related. Still a lot of concerns buyers not in the store retailers getting slammed. Some of these are not unusual. Youve seen that many times in the last few weeks banks, another key area of concern. Not just banks but lending institutions like t. R. E. E theres some of the big regional banks. Obviously concerns about potential defaults there one Sector Holding up well, interestingly is tech. Apple down we got a price target reduction. They were talking about con trained consumer demand. Iphone sales are online. When the stores close like apple closed the stores thats obviously impacting them we had a historic day. Nyse floor was temporarily closed i talked about the open and they described trading activity as very smooth and very orderly very good news it helps that we didnt have to trip any Circuit Breakers earlier on in the morning to complicate that opening. Ill be monitoring that trading throughout the day but so far smooth sailing back to you. The 10year yields well below 1 hi, rick were down about 11 basis points in a 10year note all rates are down the curve flattening again sw we see bigger drops. This is where theres a little nervousness. Here we sit at 74 basis points were only 20 above the lowest close ever at 54 that was march 9th on that particular day you see it on the year to date chart now. The low was 3 1 basis points anything pe lo below 50 will may Market Participants a little edgy its starting to taper off a bit. Lets look at the dollar versus the yen. Its ready to make a new high for 2020 if you look at the euro, lets start around the end of february on friday, that was the lowest level in basically three years it bounced a bit if you zoom the chart out, fridays close was the lowest of about april of 2017. Lets put face on it we would like to see rates hire and a steeper curve and like the see the dollar ease back a bit that will probably be a good barometba rom barometer with global tensions back the you when we get through all of this or as we get through it, theres going to be a will the of borrowing, right . Absolutely. Its going to be federal borrowing, state borrowing, municipal borrowing to pay people and keep bills going. What will happen to Interest Rates . Will they go higher than they are today because youre going to have to offer those higher Interest Rates to sell the debt . Or have it got i wrong it seems logical. Well see the agency siding in the form of the fed, buying it it will have this chain. The issue is theres going to be a lot more as you pointed out as we start to grab many believe that we have deflatid deflati deflationary scare coming up were see more of an inflationary here is what we know for sure. Were all going to be borrowing more who will be buying it other than our own governments at sgencie. I do think rates will go open. Yes, the bit of a glum picture if youre looking for better productivity and looking for rates to stay low, i dont think they will stay low for multiple years. Thank you for that answer the dow is down a whopping 31 on track for its worst month since 1931 for more on the unprecedented value disruption, were seeing lets bring in jeff solman welcome. Good to be here how has this affected your business im sure its in form youre sending workers home and they are working remotely what has it meant for your volume and revenue a bunch of us have been working from home for several weeks now. We have seen no interruption at all in our business. In fact, our trading business has never been greater things seem to boricing fine even with the cme and the New York Stock Exchange working remotely people dont like the price action but the volumes and liquidsty has been just fine the switch over at the New York Stock Exchange through all electronic trading, it was as if Nothing Happened everybody is sitting at that desk in the office i say right now, volumes have been really, really strong theres liquidsty. I think thats part of whats happening here if you look at some of the other markets that trade upstairs or like the saasset backed markets they havent been as liquid as everybody would like or thought they would be. What do you need when you are fearful . You press the buttons on equities whats of whats going on here is we got to get some of the nonequity market to start functioning in a more normal way so we can take the pressure off the selling and equities where people are going to find liquidity. I dont want to bog down in the esoteric of the repo market and the money markets, steve pointed out what you said. Its those markets that are having little digestion problems in this environment. Let me pivot to something that may be more familiar to our viewer and that is etfs. Is the prevalence of growth having any effect on what were seeing positive or negative . Yes the everybody presses the button at the same time, you know and theres indiscriminate selling efts just sell its very automated, very robotic. Tc it was the other way around and people decide, we have had enough and they can be buying. In equities we havent seen in the broader indices any major issues in the bond market, underlying bonds to underpin the fixed income etfs have had more difficulty those assets to underpin those efts arent nearly as liquid we have heard a lot of hopeful talk that maybe this will be a v recovery to which i say to v or not to v, that is the question here. Id like to get your thoughts on that are you a subscriber to the view that when the snap back comes, it will be a snap or will it not be theres a case to be made that the sooner everybody gets home and the sooner we stop the spread of the virus and the more we flatten the curve that people will ultimately get out and do the things they need to do theres a case for that and a case for more of an l recovery we wont be in the same level of Economic Activity prior to this. Im more in the camp of its one of those two i think the u here, its the third case this is happening very, very quickly which is a good thing. I want to just say, we have had our own experiences at having people work from home for a couple of weeks. The one thing i will tell you from our own population at some of the conferences we had at the beginning of the month, we have not seen a spike in cases. Thats really critical this idea we can work from home, do the things were doing, calm the virus down, flatten the curve, the faster we do that, the faster we get back to doing what were doing and that increases the likelihood of having a v you think work will ever go back to the way it was i do. We are social human beings ive been working from home now for two weeks. I miss everybody in the office i love my family but i miss everybody in the office. I miss being able to see them. I miss being out and seeing clients. Thats not going to change i think were doing the right things now by protecting ourselves and everybody should be safe and healthy and thats the first things first when this passes, which it will, we will be out to doing it we are human beings and human beings are social. Lets me ask a tough question that will be hard to answer, but ill ask you to do so. Theres some discussion right now as to whether the cure were imposing on the economy is sustainable in the long run and whether it isnt in effect ultimately going to cause more harm than good in the last hour the president said something to this broad effect in a tweet this morning larry kudlow said what the president is expressing and ive heard from a lot of smart people you have to ask whether the shutdown is doing more harm than good people are asking if its making it worse i cant answer that says kudlow. How do you feel about this we need to stop the spread of the virus. We will find the mortality rates are lower. Because were so far behind on testing, we dont have a good denominator. Even if places like italy, you see the spike in mortality but actually the increase in the number of tests which suggest that more mortality over tests actually goes down even in places like italy. I think were seeing that here in the United States as long as we continue on that trend, thats a good sign fact of the matter is, we had to take care ourselves first. If we can bridge this period of time for the next few weeks to a month, make sure people have cash in their pocket to provide for basics and shelter, this will flatten out we saw it in korea we saw it in china well see it in italy soon thats most important now. Thank you very much we appreciate your time. Good to be here well check in back with you soon again calls for a recession are growing from the c suite. Cfos are getting more pessimist pessimistic. The coronavirus is having a more Market Impact on the business. This is latest it ratieration oe cfo survey basically cfos we have polled have said every region of the world will see some kind of a gdp or economic slowdown some of things they are looking at, you see a market downturn. Its now characterized as declining and overall the u. S. And canada still appear to be the stable parts in this entire survey the key take away here is that now 40 of those cfos surveyed by cnbc expect the u. S. To go into a recession thats up double what it was just last quarter and the uncertainty around it is only growing as well. If you take a look at the progression from quarter to quarter, this is where you can see things happening those bars that youre seeing and this graphic are showing the amount of knono, people that dit think a recession will happen has dropped dramatically thank you very much we have breaking news on a procedural vote in the senate. We have the details. Reporter that vote has officially failed and the timeline might be extended. The vote was 4946 be 60 nays needed an not gotten in this attempt by Mitch Mcconnell to move this package forward. Democrats did not support this package yet again for a second day in a row with the exception of Alabama Democrat doug jones who said he was fed up with the partisanship that was playing out over this package. Its unclear at this point whether democrats have over played their hand. Earlier the Top Senate Democrat said he was negotiating with the Trump Administration this vote was meaningless and he thought they were close to a deal by the end of the day sna Mitch Mcconnell speaking moments ago after this bill failed, was angry. He was very animated about this outcome and he seems to suggest the timeline would be pushed back into later this week. Its exactly why that time will be pushed back we now that House Democrats put together their own bill. Their own proposal for what the stimulus should look like. Perhaps mcconnell is talking about the conference project and merging those bills but just about an hour ago the Senate Democrat will look for deal today. The you give me an idea of what the specific Sticking Point or points are. Reporter there are a handful of them, tyler its really unclear to those of us not behind those closed doors exactly what the priority list is whats first, whats second, whats third and what are the democrats okay with leaving on the cutting room floor we know they wanted more funding for hospitals, for communities and stricter provisions tried to the aid that was going to be given to Corporate America they felt like the terms were too friendly for the loan packag packages were being provided to companies and businesses and it wasnt worker friendly enough. They wanted commitments on keeping people in their jobs for several years after these loans were paid back they also were talking about some climate conditions by which some of these Transportation Companies would have to abide by new emission standards to be able to accept this money. Its unclear exactly where those things land and how they are stacked. There was a long list of things the democrats were pushing for thanks very much. Economists at the major banks are calling for double digit declines in the Second Quarter of this year Goldman Sachs saying growth could sink as much as 24 . My next guest says a severe recession is now baked in. Bill, welcome. Good to have you with us i was struck by the report just a moment ago indicating that cfos with polled, now 40 say a Second Quarter recession or decline in economic output is all but certain. My question is what are the other 60 thinking i dont know. I was one of the ones clinging to the hope we would have a Health Policy that would be able to contain the virus in way that would limit the downturn now give the degree of shutdown we have seen to this march shot alone will mean the First Quarter will be a negative growth given the message we heard if the hill, i am going to even allower my forecast further. It might not be an l that turns up we dont get income into p the family, they cant pay the bills, keep the electricity on and so forth what would be the smartest thing that congress could do fast to address this issue have one bill that says kucu checks to people immediately well worry about the details of how the fund it later. That would give a boost to the economy and also be able to allow companies to survivor. Lets face it, not only are people worried about having checks today, theyre worried about having jobs tomorrow when the recovery does start. If they dont have jobs, theyre not going to spend we have to ensure is companies survive. All this talk about grab bag and goodies for companies is a lot of nonsense that i believe the democrats are doing more harm than good. The goal of seeking perfection is the harm than necessary and good dont let the perfect be the enemy of the good. How does that ripple through and help thats probably the best news that the fedex tended its support to all the markets necessary not only to allow the transmission to support the economy but also to direct credit to where its needed. You see that the world theres been a lot of changes in the Team Coverage<\/a> stooefr steve is all over the unprecedented action the package has hit some snags what is the latest the out come is looking like the same one we got last night with democrats not signing onto advance the 1. 6 plus trillion dollar stimulus package. We have a vote right now of 4442. 44 yays. 42 nays. You need 60 votes to pass it its difficult with five in swe selfquarantine. Bernie sanders not voted last night. He was following this from afar and following this in negotiations from there. Senator Chuck Schumer<\/a> said today this vote is meaningless the package is done. The real work is happening behind closed doors. To that end he said that work is very, very close to producing a deal that inif he canned some optimism into the market but he is making clear hes not authorized democrats to back this move to advance the vote as it stands. We know cabinet members have been meeting to reach a compromise slow and steady progress is what they are calling it. If youre a long term investor, its a good time to buy stocks the situation overtook a lot of things and weve had to change our strategy just like every other country in the world had to change our strategy regarding the market, right now i would probably make the same point secretary mnuchin made if youre a long term investor, i would bet on america reporter he would not say whether he would support a further stimulus measure if one was needed in a few weeks saying hes cross that bridge when he comes to it. As for the comments a few weeks ago when he said the virus in late february was contained, he said hes only as good as the facts and the facts change lets get over to steve with the Federal Reserve<\/a> unprecedented action, intervention good way to put it. Unprecedented, historic. Some are calling it very aggressive the Federal Reserve<\/a>, this was not part of the major announcement and thats what makes it so curious. Said it would be buying 125 billion of securities every day this week. Mortgage backed securities in the amount needed. Instead of saying theres a number on it or a timer, its going to keep doing it in the amounts needed in order to provide liquidity to the market. Lets go through the emergency steps now. First it announced its working on and hopes to soon have a main Street Lending<\/a> facility. Unclear, a lot of detail offeil unclear. Itlying on the stimulus bill in the senate. Its going to purchase and or finance Corporate Bond<\/a>s, Asset Backed Securities<\/a> and Municipal Bonds<\/a> opinion all of these the Federal Reserve<\/a> has not taken. It will purchase commercial Mortgage Backed<\/a> securities let me put some context on this. The Federal Reserve<\/a> is now pledging 625 billion of securities this week by way of comparison, it did a qe2 program over the course of many month where is it did 600 billion over months. Put the two together what it did last week, nearly a trillion dollars of purchases between the two weeks. There may be more yet to come. Tyler, i am talking to people in the markets. Ive heard some improvement. Treasure said to be trading better the repo market a little better. Still things like commercial paper and money market still having problems here in these credit markets now thank you very much steve reporting for us volatile day for the markets just like they have been for the last month or so lets get to bob for the latest. Hi, bob. Despite what you heard if the federal preserve, unprecedented Corporate Bond<\/a>, even Corporate Bond<\/a> etfs. Thats quite a change here a thousands point move in the dow. 2192 if you look at the s p. Thats the low were off of this 37 you see this choppy w trading range. Retail, anything consumer related. Still a lot of concerns buyers not in the store retailers getting slammed. Some of these are not unusual. Youve seen that many times in the last few weeks banks, another key area of concern. Not just banks but lending institutions like t. R. E. E theres some of the big regional banks. Obviously concerns about potential defaults there one Sector Holding<\/a> up well, interestingly is tech. Apple down we got a price target reduction. They were talking about con trained consumer demand. Iphone sales are online. When the stores close like apple closed the stores thats obviously impacting them we had a historic day. Nyse floor was temporarily closed i talked about the open and they described trading activity as very smooth and very orderly very good news it helps that we didnt have to trip any Circuit Breakers<\/a> earlier on in the morning to complicate that opening. Ill be monitoring that trading throughout the day but so far smooth sailing back to you. The 10year yields well below 1 hi, rick were down about 11 basis points in a 10year note all rates are down the curve flattening again sw we see bigger drops. This is where theres a little nervousness. Here we sit at 74 basis points were only 20 above the lowest close ever at 54 that was march 9th on that particular day you see it on the year to date chart now. The low was 3 1 basis points anything pe lo below 50 will may Market Participants<\/a> a little edgy its starting to taper off a bit. Lets look at the dollar versus the yen. Its ready to make a new high for 2020 if you look at the euro, lets start around the end of february on friday, that was the lowest level in basically three years it bounced a bit if you zoom the chart out, fridays close was the lowest of about april of 2017. Lets put face on it we would like to see rates hire and a steeper curve and like the see the dollar ease back a bit that will probably be a good barometba rom barometer with global tensions back the you when we get through all of this or as we get through it, theres going to be a will the of borrowing, right . Absolutely. Its going to be federal borrowing, state borrowing, municipal borrowing to pay people and keep bills going. What will happen to Interest Rates<\/a> . Will they go higher than they are today because youre going to have to offer those higher Interest Rates<\/a> to sell the debt . Or have it got i wrong it seems logical. Well see the agency siding in the form of the fed, buying it it will have this chain. The issue is theres going to be a lot more as you pointed out as we start to grab many believe that we have deflatid deflati deflationary scare coming up were see more of an inflationary here is what we know for sure. Were all going to be borrowing more who will be buying it other than our own governments at sgencie. I do think rates will go open. Yes, the bit of a glum picture if youre looking for better productivity and looking for rates to stay low, i dont think they will stay low for multiple years. Thank you for that answer the dow is down a whopping 31 on track for its worst month since 1931 for more on the unprecedented value disruption, were seeing lets bring in jeff solman welcome. Good to be here how has this affected your business im sure its in form youre sending workers home and they are working remotely what has it meant for your volume and revenue a bunch of us have been working from home for several weeks now. We have seen no interruption at all in our business. In fact, our trading business has never been greater things seem to boricing fine even with the cme and the New York Stock Exchange<\/a> working remotely people dont like the price action but the volumes and liquidsty has been just fine the switch over at the New York Stock Exchange<\/a> through all electronic trading, it was as if Nothing Happened<\/a> everybody is sitting at that desk in the office i say right now, volumes have been really, really strong theres liquidsty. I think thats part of whats happening here if you look at some of the other markets that trade upstairs or like the saasset backed markets they havent been as liquid as everybody would like or thought they would be. What do you need when you are fearful . You press the buttons on equities whats of whats going on here is we got to get some of the nonequity market to start functioning in a more normal way so we can take the pressure off the selling and equities where people are going to find liquidity. I dont want to bog down in the esoteric of the repo market and the money markets, steve pointed out what you said. Its those markets that are having little digestion problems in this environment. Let me pivot to something that may be more familiar to our viewer and that is etfs. Is the prevalence of growth having any effect on what were seeing positive or negative . Yes the everybody presses the button at the same time, you know and theres indiscriminate selling efts just sell its very automated, very robotic. Tc it was the other way around and people decide, we have had enough and they can be buying. In equities we havent seen in the broader indices any major issues in the bond market, underlying bonds to underpin the fixed income etfs have had more difficulty those assets to underpin those efts arent nearly as liquid we have heard a lot of hopeful talk that maybe this will be a v recovery to which i say to v or not to v, that is the question here. Id like to get your thoughts on that are you a subscriber to the view that when the snap back comes, it will be a snap or will it not be theres a case to be made that the sooner everybody gets home and the sooner we stop the spread of the virus and the more we flatten the curve that people will ultimately get out and do the things they need to do theres a case for that and a case for more of an l recovery we wont be in the same level of Economic Activity<\/a> prior to this. Im more in the camp of its one of those two i think the u here, its the third case this is happening very, very quickly which is a good thing. I want to just say, we have had our own experiences at having people work from home for a couple of weeks. The one thing i will tell you from our own population at some of the conferences we had at the beginning of the month, we have not seen a spike in cases. Thats really critical this idea we can work from home, do the things were doing, calm the virus down, flatten the curve, the faster we do that, the faster we get back to doing what were doing and that increases the likelihood of having a v you think work will ever go back to the way it was i do. We are social human beings ive been working from home now for two weeks. I miss everybody in the office i love my family but i miss everybody in the office. I miss being able to see them. I miss being out and seeing clients. Thats not going to change i think were doing the right things now by protecting ourselves and everybody should be safe and healthy and thats the first things first when this passes, which it will, we will be out to doing it we are human beings and human beings are social. Lets me ask a tough question that will be hard to answer, but ill ask you to do so. Theres some discussion right now as to whether the cure were imposing on the economy is sustainable in the long run and whether it isnt in effect ultimately going to cause more harm than good in the last hour the president said something to this broad effect in a tweet this morning larry kudlow said what the president is expressing and ive heard from a lot of smart people you have to ask whether the shutdown is doing more harm than good people are asking if its making it worse i cant answer that says kudlow. How do you feel about this we need to stop the spread of the virus. We will find the mortality rates are lower. Because were so far behind on testing, we dont have a good denominator. Even if places like italy, you see the spike in mortality but actually the increase in the number of tests which suggest that more mortality over tests actually goes down even in places like italy. I think were seeing that here in the United States<\/a> as long as we continue on that trend, thats a good sign fact of the matter is, we had to take care ourselves first. If we can bridge this period of time for the next few weeks to a month, make sure people have cash in their pocket to provide for basics and shelter, this will flatten out we saw it in korea we saw it in china well see it in italy soon thats most important now. Thank you very much we appreciate your time. Good to be here well check in back with you soon again calls for a recession are growing from the c suite. Cfos are getting more pessimist pessimistic. The coronavirus is having a more Market Impact<\/a> on the business. This is latest it ratieration oe cfo survey basically cfos we have polled have said every region of the world will see some kind of a gdp or economic slowdown some of things they are looking at, you see a market downturn. Its now characterized as declining and overall the u. S. And canada still appear to be the stable parts in this entire survey the key take away here is that now 40 of those cfos surveyed by cnbc expect the u. S. To go into a recession thats up double what it was just last quarter and the uncertainty around it is only growing as well. If you take a look at the progression from quarter to quarter, this is where you can see things happening those bars that youre seeing and this graphic are showing the amount of knono, people that dit think a recession will happen has dropped dramatically thank you very much we have breaking news on a procedural vote in the senate. We have the details. Reporter that vote has officially failed and the timeline might be extended. The vote was 4946 be 60 nays needed an not gotten in this attempt by Mitch Mcconnell<\/a> to move this package forward. Democrats did not support this package yet again for a second day in a row with the exception of Alabama Democrat<\/a> doug jones who said he was fed up with the partisanship that was playing out over this package. Its unclear at this point whether democrats have over played their hand. Earlier the Top Senate Democrat<\/a> said he was negotiating with the Trump Administration<\/a> this vote was meaningless and he thought they were close to a deal by the end of the day sna Mitch Mcconnell<\/a> speaking moments ago after this bill failed, was angry. He was very animated about this outcome and he seems to suggest the timeline would be pushed back into later this week. Its exactly why that time will be pushed back we now that House Democrats<\/a> put together their own bill. Their own proposal for what the stimulus should look like. Perhaps mcconnell is talking about the conference project and merging those bills but just about an hour ago the Senate Democrat<\/a> will look for deal today. The you give me an idea of what the specific Sticking Point<\/a> or points are. Reporter there are a handful of them, tyler its really unclear to those of us not behind those closed doors exactly what the priority list is whats first, whats second, whats third and what are the democrats okay with leaving on the cutting room floor we know they wanted more funding for hospitals, for communities and stricter provisions tried to the aid that was going to be given to Corporate America<\/a> they felt like the terms were too friendly for the loan packag packages were being provided to companies and businesses and it wasnt worker friendly enough. They wanted commitments on keeping people in their jobs for several years after these loans were paid back they also were talking about some climate conditions by which some of these Transportation Companies<\/a> would have to abide by new emission standards to be able to accept this money. Its unclear exactly where those things land and how they are stacked. There was a long list of things the democrats were pushing for thanks very much. Economists at the major banks are calling for double digit declines in the Second Quarter<\/a> of this year Goldman Sachs<\/a> saying growth could sink as much as 24 . My next guest says a severe recession is now baked in. Bill, welcome. Good to have you with us i was struck by the report just a moment ago indicating that cfos with polled, now 40 say a Second Quarter<\/a> recession or decline in economic output is all but certain. My question is what are the other 60 thinking i dont know. I was one of the ones clinging to the hope we would have a Health Policy<\/a> that would be able to contain the virus in way that would limit the downturn now give the degree of shutdown we have seen to this march shot alone will mean the First Quarter<\/a> will be a negative growth given the message we heard if the hill, i am going to even allower my forecast further. It might not be an l that turns up we dont get income into p the family, they cant pay the bills, keep the electricity on and so forth what would be the smartest thing that congress could do fast to address this issue have one bill that says kucu checks to people immediately well worry about the details of how the fund it later. That would give a boost to the economy and also be able to allow companies to survivor. Lets face it, not only are people worried about having checks today, theyre worried about having jobs tomorrow when the recovery does start. If they dont have jobs, theyre not going to spend we have to ensure is companies survive. All this talk about grab bag and goodies for companies is a lot of nonsense that i believe the democrats are doing more harm than good. The goal of seeking perfection is the harm than necessary and good dont let the perfect be the enemy of the good. How does that ripple through and help thats probably the best news that the fedex tended its support to all the markets necessary not only to allow the transmission to support the economy but also to direct credit to where its needed. You see that the world theres been a lot of changes in the Fashion Market<\/a> where there arent a lot of Market Makers<\/a> out there anymore especially in some of these places where its even commercial paper. Its probably the best news ive heard today. What grade do you give the fed on its actions and what grade do you give congress a plus for the fed and a double f for the congress. Bill, thank you very much good to see you. Lets get the latest on the coronavirus outbreak thank you so much here is whats happening, for the second day in a row italy is reporting fewer new coronavirus cases than the day before indicating the restrictions may be slowing the outbreaks growth new deaths are also slowing. Although italys total toll is now above 6,000. Worldwide, however, the number of new cases is still surging. The head of the World Health Organization<\/a> wants countries to Work Together<\/a> to address shortages of personal protective equipment. The virus is accelerating, but were not prisoners to sta t statistics we can change the trajectory of this pandemic. Here in the u. S. , new york Governor Cuomo<\/a> has toured the Convention Center<\/a> in new york city where construction is under way to create a temporary hospital he says this could house as many as 2,000 patients. You can led to cnbc. Com for more coverage thank you very much as cases continue to surge nationally, lets talk more about the steps to contain the virus. Dr. Ed elson is ceo of the permante association it supports 23,000 physicians. Largest skaengs of doctors have in california. Welcome. Thank you how are you guys holding up well, id say were taking it a day at a time. Were managing well so far really impressed by the commi m commitme commitment, dedication of our people wildfires and floods in california nothing on this scale before do you have the protective gear you need . The equipment you need to address what ever kind of surge you might encounter. Right now its yes. We have what we need for today and for the immediate future as were doing our surge planning scenarios, thats the work that we are aggressively under taking we have several scenario, kind of a low, medium and high that will help us assess our personnel, icu bed, ventilators us understand. Im gratified we have out reach from other industries. Individuals have been very generous in donating some supplies for us. Were pursuing all the avenues we can to keep our people safe by the highest quality care. Thats our mission how we use that supply, obviously matters and those recommendations are evolving rapidly as well. Youre getting help from the construction industry, people that do dry wall or refinish floors they are sending over masks that you use. How about help from government offices. Is it at a level that seems acceptable to you . Are you getting assistance you need from either the federal state or local government . Well, i think the biggest impact that weve had so far has been in the state of california where we had the shelter put in place. I think thats really important, helping to spread us to manage the spread of the virus. For example, we know in our Northern California<\/a> location who is put shelter in place in sooner, we have seen a decrease in the numbers of calls coming in with symptoms referable to the cold, flu and coronavirus symptoms in Southern California<\/a> those guidelines went in place last thursday we havent seen that decrease but we expect that to happen for us i do think that social distancing, selfquarantining, shelter in place is one of the most important things to do to help slow the spread of the virus. We have been gratified to hear that the government is opening up some of the stockpiles to some of the equipment. We know in the state of california that the governor has allocated resources to allow us to lease several hospitals in the state that can be open potentially when the surge comes so that demand theres a lot of action, activity going onto help us meet the demands that we anticipate that well be facing assess the level of fear that you sense in the general population or on your staff. They have some fear too. Absolutely. I think were facing a pandemic of the coronavirus but also pandemic fear. Provide the assurance about what were doing to ensure their safety and the care for our patients provide Mental Health<\/a> resources and anything that we can do to support our folks. We put in place a number of actions including work from home as Many Industries<\/a> have. You transition to telemedicine however possible when its safe and appropriate so patients can receive the care they need from home and our personnel can be protected in similar fashion. We have postponed elective surgeries. Again, create that social distancing that helps to keep everybody safe all right thank you very much. Great to see you stay well. Thank you so much im so grateful to people they are putting our patients and community first. Thanks so much. Lets talk crude which is climbing into the close. How about that lets go to eric at the cnbc commodity desk opini a climb for a change wti and brent surge sboog the close. Wti going from right around the flat line to jumping more than 3 you can see its up more than 4 just a cup of minutes, dust up to 2 . Take a look at brent this was negative. Now its up a quarter of a percent. Remember, last week in the crude markets that was the worst week since 1991 today it was already a choppy session. The fed announced additional stimulus measures. We have saudi arabia and russia planning to ramp up production that could make the picture worse for prices earlier, cities said the price of oil could go negative watch that back to you guys thank you very much we will have more coming up on oil. The ceo of Parsley Energy<\/a> will join us right after the break. We will be back. Equities are slumping there. You see the energy spieder down 6 today i know that every single time that i suit up, there is a chance that thats the last time. 300 miles an hour, thats where i feel normal. I might be crazy but im not stupid. Having an annuity tells me that im protected. During turbulent times, consider protected Lifetime Income<\/a> from an annuity as part of your retirement plan. This can help you cover your essential monthly expenses. Learn more at protectedincome. Org. 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. That sofa on tv is iexactly what they need. And now, they know it too. Thats the power of targeted tv advertising. Its smart. It grabs peoples attention. Then they come to my store. Buy that sofa. And leave happy its easy, and its effective. And its why Comcast Spotlight<\/a> is changing its name to effectv. Because being effective means getting results. The dow is down 600 points or thereabouts 3. 3 as the senate fails to advance the stimulus bill for the second time in a procedural vote mcconnell saying the delays could push the passage back to friday this is reminisce sent of 2008 when tarp, which was one of the big rescue packages also had a couple of procedural setbacks along the way. The s p down 3 . Nasdaq only about 1 as Technology Holds<\/a> up at least at this hour. Crude prices eking out a gain today as we mentioned before the break but still hovering near 20 bucks a barrel on pace for its worst month ever down nearly 50 in march and were not even done yet. Its just the 23rd its been dragging down energy companies, the worst performing sector again today as we look at the S P Energy Sector<\/a> down 7 . My next guest is the chief executive of an emergency company. Welcome back to cnbc hello thank you for having me. How are you hanging in . Its been rough sledding. We have a great team we are looking out for the safety of our employees. Were focused on whats right . What does this mean for your staffer and white collar workers and your in the field workers . We have to keep safety of our employees and our contracts in mind its going very smoothly you can see working from home but nothing can compare to the braveness of our Front Line Health Workers<\/a> but we have some heroes of our own. These are our workers working out on the rigs. Were running extended protocols for distancing for them and watching their safety very closely. We thank them for that effort. It also means cutting capital to adjust with the supply demand. We have taken a dramatic stepi that 40 capital cut for the remainder of the year. What kind of i hesitate to use the word damage, de devastation, would this mean for that midland odessa area those are the right words its catastrophic what the industry is facing the level of supply, demand, imbalance when were faced with this level of a global pandemic. When we have whole countries in complete lockdown. More and more states across our great country in lockdown for the right reasons and rightfully so its really going to hit the midland and odessa area hard its really a two front black swan event that were trying to tackle with right now. Fundamentally, i was just thinking as we talked to dr. Elson a momentum ago, wh agt the country in an induced coma it will help it survive and recover. P how long do you think the economy can stay in an induced coma i think these exact lockdowns was needed depending on if we can come together both in congress here on doe messiahmestic situations lifeline to workers, Everybody Needs<\/a> help and also we need to reset the table really on a global scale in our industry on supply demand. I think when you rewind two or three weeks ago, no ones intent was to drive prices down into cash operating theres a direct tie between the stablts stability of the oil market and the financial market. I think President Trump<\/a> will be a great person to take a lead talking internationally to reset the table on supply demand stability. Here in state of texas, Governor Abbot<\/a> is doing a gate job keeping all options on the table to discuss that will help come out of this coma in a much stronger fashion as the United States<\/a> always does thank you very much continued good luck to you the stay in touch. Thank you Airline Stocks<\/a> are higher on hopes of a bail out, for lack of a better term, but its not without a catch. Phil joins with what is at stake. Whats at stake is whether or not the airlines can make it through the summer without some of them declaring bankruptcy it comes down this almost everybody in washington is in agreement that the airlines will get 50 billion. They want to, they, the people on capitol hill want to give it in forms of loan and they want the stipulation, some of the reporting now says no layoffs will be allowed. That could be a bit of an issue for the airlines because if you look at whats happening with Airline Traffic<\/a> and in terms of tickets being sold, it continues to move lower. They are off about 70 year over year and itsaccelerating. If youre not allowed to layoff workers and you see weak demand for months on end, what are you supposed to do if your an airline executive. Most of the planes right now are only 20 to 30 full. Bank of america out with a note saying in their opinion, you could see an industry just two months away from bankruptcies if there is no type of a lifeline, so to speak for the airlines this is spilling over to the suppliers. Ge out saying ge aviation will layoff 10 of its u. S. Work force. Half of the people who work in mro, thats maintenance and repair, they will be furloughing half of that staff the bottom line is this, when you look at aviation, theres the concern of not only fewer orders but also less revenue that has airlines park their planes phil, thank you very much when our special coverage returns from rosy the riveter, big American Brands<\/a> stepping up to help the nations hospital get the life saving supply p they need to fight the deadly coronavirus. The biggest lagguarards on the. United, followed by chevron, sa, united health. Well be right back. When i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. It is already working in cities like tokyo. Qustion for you, will you make me the happiest man in the world . Yes okay good. When it comes to response times, just okay is not okay. Thats why at t is building its 5g on americas best network. Wenot the exception. Sh food being the global norm, at emerson, when issues become inspiration, creating a better world isnt just a result, its a responsibility. Emerson. Consider it solved. We were paying an arm and a leg for postage. I remember setting up shipstation. One or two clicks and everything was up and running. I was printing out labels and saving money. Shipstation saves us so much time. It makes it really easy and seamless. Pick an order, print everything you need, slap the label onto the box, and its ready to go. Our costs for shipping were cut in half. Just like that. Shipstation. The 1 choice of online sellers. Go to shipstation. Com tv and get 2 months free. Well, just because the bars are empty does not mean the distill lers and brewers are sitting idle frank has the details. Hi, frank. You know today Johnny Walker<\/a> maker announcing it will produce alcohol to fill 8 million bottles of sanitizer, shifting from brewing and distilling to making sanitizer has been a growth for spirits the makers of budweiser, bacrdi donating the cost of alcohol to make the hard to find liquid as demand continues to surge globally black rock announcing its pledging 50 million to Coronavirus Response<\/a> with the first 18 million going to food banks and nonprofits in the u. S. And Europe Investment<\/a> firm addressing food in the chicago area. Mastercard donating 25 respirators to new york city hanes is focusing on res practice raters with the goal of making 1. 5 million per week. Ford, gm and tesla say they will produce respirators to meet the rising demand. How quickly do they think they can get this up and running . For the auto makers they are getting up and running well have to see how soon they can get up to that goal of 1. 5 million. All the Companies Say<\/a> they are committed to doing their part. Thank you very much mortgage industry begging the fed for money as they have to deal with the barrage of borrowers who are about to skip house payments starting next week their plea for help in the Ripple Effect<\/a>s if washington says no. Our breaking News Coverage<\/a> of the Coronavirus Crisis<\/a> well be right back. Thats what happens in golf nothiand in life. Ily. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley<\/a>. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley<\/a> team. Im justin rose. We are Morgan Stanley<\/a>. Its not Just Airlines<\/a> and restaurants that are looking for money to deal with the coronavirus punch. The mortgage industry also asking for help and diana oleic has that story from washington hi, di hi, tyler last week, the fha announced loan fore beerns aloug borrowers. The companies that collect those payments, the service, they have to pay the investors who own those in mortgagebacked bonds services can handle some delen quincy, but not like what we are about to see the soassociation sent a lettero the treasury yesterday sayinging the burden on services could top 100 billion with those Services Just<\/a> dont have. Nobody predicted the demand that this would place on servicers so they need an abl ability to have the liquidity to make it happen and if theres not some kind of ability through ali quidty facility, then the servicers wont be able to meet their obligations to the investors and the whole process will break down. So the services could essentially go bankrupt. Taking the whole Housing Finance<\/a> system down with it. Now just a note in the last four, fhfa announced it would allow multifamily borrowers their Monthly Payments<\/a> theyre going to have a backlog going there. Why are these services in so much more b trouble now even than they were during the crisis well, certainly some services did go out of business during the subprime crisis, but that happened over several years. You had a wave of borrowers going over many years. This is going to happen at once. Were talking in a matter of months were going to see the loan payments stop at the end of april, may, june in huge numbers. This is really a Ripple Effect<\/a> in order, were focused and maybe rightly on a lot of the consumer facing company, whether theyre airlines or restaurants or stores, retail and so forth but here is sort of the back Office Behind<\/a> the curtain that its going to affect heavily absolutely. I i mean you look at these services these are the people that when you write out your monthly mortgage payment, you send it to them and get it to the investors and they keep the Mortgage Finance<\/a> system running they dont have that kind of cash now if they could get that from treasury, Federal Reserve<\/a>, they could keep it going. Thats the expectation, the hope from the Mortgage Bankers<\/a> association. Weve seen the fed pour billions into buying mortgagebacked bonds so thats probably what theyre going to have to do. Thank you very much meantime, stocks are off their lows down about 600 points now. lget or there b abouts. Wel a final check of the markets when we come back. You should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. But inside every etf. There are untold hours of careful construction. Infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment<\/a> objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Modern modernization today where the future workplace of today starts tomorrow. Our full range of products and services will take your enterprise to a bold new era. Behold, the innovation scarf. In order to innovate, we must first outovate. What . At cdw, we get better ways to modernize. Our experts can design, orchestrate and manage your most complex technology, today and into the future. It orchestration by cdw. People who get it. Stocks are falling as the senate fails yet again to advance its virus aid bill the dow has lost more than 10,000 point this is year. How much more pain is ahead . Eric marshall is manager at hodges funds, president of portfolio family of funds. Welcome. Eric, you say we see the valuation for many stock, not just pricing in uncertainty, but u future earnings. But instead pricing in the potential of solvency across many businesses. Shouldnt they be . I think the problem is the market doesnt know how to discount future earnings right now. I think its important to remember that the virus is not causing an economic crisis our response to the virus is causing a kricrisis and well figure out a way to live with this and i think its really too late for investors just to go out and try to play defense here you really have to look out over the next year or two and see which companies are going to survive the other side of this and i think if theres opportunity in the market as a result of that i want to probe a little bit there because i find what you said there interesting it isnt the virus that is causing the economic crisis. It is our response to the virus that is doing that i use the analogy of an induced coma do i sense then that you are critical of the response and the heavyness of it across the country . Well i dont think were going to be responding to the virus in a month or two the same way we are responding to it today so were going to figure out a way to live with the virus. Figure out a way for our Health Care System<\/a> to adapt, to deal with this situation. And there will be a solution this isnt a permanent situation. Michael, let me turn to you and get your sense of where we are in this great i dont think its excessive to call this a stock market crash, do you . Good afternoon, tyler you know, i think theyre misleading sometimes so ill stay away from them. Where we are in terms of this, i have no idea theres too many variables there are too many moving parts. You know, i think the other guest says it perfectly and articulates the issue. Its not the virus its the response to it, i couldnt agree more. At some point as a society, were going to have to figure out and do the cost benefit analysis of the costs of the programs were enacting, their ultimate cost, versus the benefit were getting out of this what happens is the more data we get, the more certainty we can get results on the medical side. That will help douse that, but we werent there yet im not a medical person so its hard for me to special circumstance late on that. But as a b investor, we try to hedge our bets and look our opportunities in the longterm that we think are going to be multiyear opportunities. With this sort of a sell off, you do get that. We also like gold and Precious Metals<\/a> as well so theres a variety of things to look at so were busy were keeping busy and trying to hedge our bets as best we can. Thank you very much r for your time and thoughts michael, appreciate it eric, you, too stay well, gentlemen we really appreciate your time today breaking News Coverage<\/a>s continues into this tum ultimatous trading day welcome to this ongoing coverage a new wave of fresh volatility to the market as investors try to make sense of the rapidly evolving coronavirus pandemic and the response from washington and the fed. Futures traded limit down overnight with a series of massive moves from a fed including an open ended Asset Purchase Program<\/a> sent stocks higher but a lack of stimulus deal fro","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia902902.us.archive.org\/16\/items\/CNBC_20200323_180000_Power_Lunch\/CNBC_20200323_180000_Power_Lunch.thumbs\/CNBC_20200323_180000_Power_Lunch_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240716T12:35:10+00:00"}