Hitting the alltime record high on february 12th and the definition of a bear market is 20 lower than the recent highs. The markets tumbling just as President Trump is expected to meet with some of the biggest banking ceos in the world to find out how stable the Financial Market system is and what to do to keep it there. We are still waiting on word but if cameras are allowed in the room we are going to take you there and hear what they all say. This as the battle against the deadly coronavirus pandemic moves into a new phase, as National Guard troops get set to sweep into the hot zone in new rochelle, new york. And as businesses and colleges close their doors, Microsoft Teams is swinging to their digital defense, with a suite of Software Products to help those working from home or moving to online learning. I know a lot of you were experiencing that or your kids are. Countdown has a lineup of power players to tackle all these topics. Steeple chairman and ceo ron krusz kruszewski on the white house bankers meeting and what hes seeing. Is he seeing any kind of loan weakness, are people defaulting, do they look like they are, are investors pulling out money . We will ask. Former nato supreme allied commander admiral James Stavridis on the military use in the fight against the coronavirus. And microsoft 365 Corporate Vice president Jared Spataro on Microsoft Teams work and study from home services. Wait until you hear the increases some countries are seeing in the usage of teams. Thats a fox business exclusive. Let us get you this news that moved just before the top of the hour. It is breaking news. The Federal Reserve has just made a move and heres what they have done. They have increased whats called the repo, the overnight repo. This is the amount of money it provides to banks overnight that banks need to borrow. It raises the top level from 150 billion to 175 billion. The new york fed said its increasing repo offers to ensure smooth market functioning and essentially increasing the coffers of big banks so they can keep lending to each other and keep the liquidity or money flowing without any kind of problem. So we are watching that and watching boeing. Now, arguably, you could say that this is speaking volumes. Boeing is just getting socked, down 16. 5 , whereas just two weeks ago it was a it was about 300, now its 192, down 38 at the moment. A number of issues at play here. Number one, reports are the aircraft maker plans to draw down a 13. 8 billion cash loan. Why would they do that . They need to make sure they have enough cash on hand to make payroll. Boeing is also freezing all new hiring and overtime except in critical areas. This in a bid as we said to preserve the dry powder, the cash, as the coronavirus hits airline orders and the 737 max remains grounded. So we are looking at that stock down 16 . Delta just at about 2 00 p. M. Eastern extended Service Suspensions between the u. S. And the far east, and now italy. Also, Argus Research cutting them from a hold to a buy. American is also getting crushed, down about 7. 5 . No surprise that united sorry, united is down 7. 5 . American is down 6. 33 . We can flip it to jetblue, hawaiian and southwest. They are all rapidly losing altitude. Hawaiian airlines down 8 . Thats a big tourist destination, we know, but there are all kinds of issues with flying in and out of italy so all of italy is probably not going to be flying to hawaii. We see that sotock getting hurt by nearly 9 . Southwest down by 7 . Jetblue down 7. 33 . We just got this. Opec Just Announced the coronavirus is set to wipe out 2020 oil demand growth. Now, we were talking yesterday to you about apache. Look at them today. The other day, apache had fallen 54 . It is now the top decliner on the s p 500. Ticker symbol apa. It had been halted due to volatility. I will pull it up for apa at the moment. Its down another 24 . For the quarter, for the year, this stock has lost 67 . Thats for apache. The stock stands at 8. 17. Occidental has slashed its dividend. What did i say . When did we hear this . I had said watch out for some of these names. Monday, i said this, to cut dividends. Now occidental is cutting its dividend by 86 and has lowered its 2020 capx spending. With pandemic fears, it is no longer a fear, it is a reality because the World Health Organization announced in the last two hours it has now decided what we pretty much already knew for several weeks, that this is globally spread. The fear is gripping the markets. The big question today is will the dow close out the day in bear market territory. Here are the numbers. I will repeat them from what we need to watch. From yesterdays close, the dow needs to fall 1,377 points. We are down about 1,600 so we are firmly there. S p, we are not there yet but boy, did we just take a step closer to that. It needs to be down 173. We are now down 161. Just before the top of the hour, i checked while charles was talking and we were 50 points away. We are now fewer than 20 points away. Nasdaq needs to see point losses of 490. We are down 445 right now. I would be remiss if we didnt bring up the russell. It is now down nearly 6. 75 . Far outpacing all of the other major indices, including the transports. Can we get the russell . Russell right now stands at 1,259. The russell for its part is now 24 lower year to date and you can see the intraday picture. It continues to fall. Top of the hour, im trying to give you some way station points here on the road. At the top of the hour, the low for the russell had been a loss of 81 points. We are now down 92. We are seeing some acceleration in this final hour so can we say we are going commercialfree . Yeah. We are going commercialfree because i think that we all agree here at fox business that this is going to be a pretty extraordinary hour. But weve got your back. We will go to our traders now to see what they can expect. Teddy weisberg, do you expect anybody dipping a toe into these very rough waters as we head into the final hour of trade and the dow is down 1,636 points . Lodgic would probably dictat get out of the way and let the tanks roll over, down the field, and stay in your foxhole, not stick your head up because no question cash is king. But if you are long stocks and you own good stocks, basically you just got to kind of tuck down and wait for the dust to settle. It will eventually. The fact is we have seen more buy orders than sell orders for the last two or three days, but these are people nibbling around the edges. Clearly this is a very difficult time for most investors. Liz not today. Might not see the again. We still have about 52 minutes before the final hour of trade. Bob, you are at the cme. First tell me about the flows. We do have crude down. Can we bring up some u. S. Treasuries . The tenyear yield, this is what is disconcerting. We will ask ron in just a minute about this. Normally we would see the flight to quality and yields dropping. Treasury yields are rising. Im wondering if youre seeing people selling treasuries to raise cash . What i can tell you that im hearing is that treasuries may be letting us know some of the things the fed is doing, some of the things that federal governments are doing around the world might actually be starting to soothe the bond market a little bit. Reason i say that is because you are looking at yields which led this. If you go back to when we were in a huge stock market rally three months ago, yields were already falling, commodities were already getting hit. They are also going to lead on the way back out of this. All we are with the stock market now, as much as its important that we are approaching bear market territory with the s p, we are in it with the dow, is that where we were in february of last year, so if you can imagine that from february of last year until now, if all we did was go sideways, would it be such a concern. I understand it looks different because we were up and we fell. But thats really all it is. Toward the end of a historic bull market, we are sideways. Liz okay. Gentlemen, thank you. We do have so much news thats hitting the tape. The s p 500 is expected to confirm that it will have entered bear market if it closes lower than 2708. 2708 for the s p. We are at 2715 right now. Thats about seven points away. So the level to watch, i will write this down, is 2708 because we had a wiggly number before. That would mean it has entered bear market. We will be watching this very closely and really keep an eye on that. I dont know if we can maybe check the box, the window on the right, if we can switch that to the s p, because just to make this clear, we cannot say that the bull market of the past 11 years is over until the s p enters the bear market. All right. Lets get to the leaders of the nations biggest banks. They are gathering right now at the white house, right there with President Trump, to discuss the impact of the coronavirus on the Financial System. The ceos of bank of america, citibank, jpmorgan, Goldman Sachs, wells fargo, u. S. Bank and trust, no doubt discussing how stable the credit markets are and will be, or if and when the virus begins to stress the system. Let us bring in right now the head of American Securities associati association, Ron Kruszewski here in a fox business exclusive. Ron, if you were in the room with the president right now, as many bank ceos are, what would you tell him that you are seeing right now . You know, some fear and some panic is certainly gripping the market. It appears that the impact on the market, i know the markets forwardlooking but the impact on the market is much greater right now than the impact on the population of this virus. Theres a lot of speculation as to how far this is going to go. What im trying to tell investors is remain calm. The u. S. People, the economy, is the most resilient in the world and this will pass. We need to have some calm here. Liz absolutely. Absolutely. But i think we just need to hear from you what you are hearing from your loan customers both individual and commercial. You guys write mortgages. You do lending. We know the fed overnight is giving those overnight repo levels a real bump from 150 billion to 175 billion. They must be seeing something or perhaps it is an offensive move in advance to make sure things run smoothly. But what are you and your loan writers seeing . First of all, the fed is just ensuring liquidity in this market. Thats a proper thing to do. I wouldnt read much more than the repo ensuring liquidity. First thing i would tell investors to do, or people to do, is refinance your mortgage. You have an opportunity with these low rates to lower your spending costs in future years. Make sure you are refinancing your mortgage. As it relates to our lending clients, we are a senior secured lender. We are not really seeing any stress. Of course, we are only two weeks into this so it would be hard to think that we would. However, i will say the Energy Sector is under stress. Many u. S. Producers, you mentioned apache, but many u. S. Producers, lifting oil out of the ground at 45 or 50, selling at 30, thats a tough equation. You know, i dont see, as i sit here today, i was talking to our lenders, talking to clients, we are not seeing defaults, we are not seeing the lights shut off here in the credit market. Liz okay. It appears, because we have this on the screen, that the s p is. 1 away from going into bear market. That would mean a loss of 20 since the recent high. Just wanted to mark that. Were not there yet. We are just right there, skimming that line. You just mentioned the Energy Companies and obviously, they are nowhere near breakeven for a barrel of oil. Some companies, whether its the energy patch or cruise lines or airlines, we are watching them shore up cash, ramp up borrowing, while cutting capacity. We just mentioned about an hour ago, Delta Airlines said its trimming domestic seat capacity by 15 to 20 . United said it secured a 2 billion loan to lift its liquidity. Thats just one sector, the airlines. But energy, cruise lines, gaming, Washington State has banned gatherings of more than 250, new rochelle doing the same with a lower threshold of 100 people. Restaurants, we would imagine, might soon experience problems. Amc with the theaters. Anything where people gather and you know, whether its leisure, whether its travel, the cruise lines, restaurants, all of those are reacting to to this situation. What i would say liz do you see fissures or any whiff of mortgage or loan defaults you have heard about, anything like that . No. No. The credit markets are telling you that the Energy Companies are under stress but no. But again. We are two and a half weeks into what was a huge pivot in this economy. I just think the question that investors have to ask themselves is will this pass and how long. You know, a year from now, are we going to be sitting here talking about the coronavirus, are we going to look back and say there was, you know, it wasnt it was like a bad case of the flu . Im not a doctor. Im just trying to tell people to be calm. Im seeing a lot of panic right now. The biggest mistake i have seen in my 35 years in this business, especially when you get to a bear market, is everyone says oh, then i need to sell. They might be right for the next 5 down but they will miss the next 20 up. That is where real money is lost. Liz absolutely. That is definitely right on point. Ron, im really glad you are here with us. We are watching all of this and more. One quick question. You have been on the washington, d. C. Fed Advisory Council linked to the federal open market committee. The fed meets one week from today. What should their next move be . What do you expect it to be . Well, first of all, i think the fed has done a very good job over the years. I must say, though, that this last rate cut, i personally did not agree with. I will tell you why. I think when you are easing financial conditions and easing shortterm Interest Rates, that is not what we are facing in this virus, because the fed reduced their Interest Rates doesnt mean people may go to opening day in three weeks. We are dealing with a different situation and in many ways, i think continuing to lower rates is putting stress on banks willingness to lend. So if i was in that white house today, i would probably be arguing that cutting rates is not what this economy needs. Maybe a little fiscal stimulus is what we need. But again, let me end with this thought. We need some calm. I do not want people selling into this market. They will look back and regret that. Liz that would be a big mistake. You do not sell when the market is tanking like this. Ron, thank you. Thank you. Liz tell the gang we said hello. First china, now italy. Apple specifically is reportedly closing all 17 of its stores in italy as the outbreaks toll worsens. You can see the stock is down about 4 at the moment. The virus has claimed another 196 lives in italy just overnight. That brings the death toll in italy to 827. In one country, we are seeing more deaths than we saw in the entire world for the sars epidemic which killed about 800 people. Italys confirmed case numbers also rising now. Instead of 12,462 nationwide. As we watch each side of this, the human toll and of course, the financial toll because we are the Business Network here and are trying to give you all angles of this, the s p did touch that bear market territory so we are keeping an eye on it at the moment. Needs to be at 2708. We are at 2719 right now. Let us focus on the epicenter of new yorks Virus Outbreak and that would be the United States epicenter, too. Governor andrew cuomo announcing moments ago that 12 new coronavirus cases in new york city and 13 new cases in Westchester County have been tallied now for a total of 212 in the whole state. Now, the governor is calling up the National Guard to new rochelle, we know that, as the new york suburb deals with a more intense coronaVirus Outbreak. Cuomo has created a containment zone covering a onemile radius and sending the National Guard in specifically to sanitize public spaces. They are not going to be armed, they are not going to be setting up perimeters, but could their role change into a security oriented one . Authorities last night had to send in riot police to the university of dayton in ohio, when more than 1,000 students took to the streets after finding out their dorms would be shut down. To break this all down for us, somebody who would really know. Former nato supreme allied commander and author of sailing true north admiral James Stavridis. He also of course was the commander of nato. All right, admiral stavridis, let me just ask you right off the bat, right now, new rochelle is bringing in the National Guard which is sort of the state militia, right, to assist. What do you think of that and what would it take to see some type of morphing into a security zone type of situation . I think this is an entirely appropriate use of the u. S. Department of defense and just to put a number on it, there are 1. 2 million active duty troops, guard like these, active duty reserves, and then additionally, theres another 800,000 or so kind of in standby. This is a huge pool of manpower that the governors can use locally, the president can use in a federal sense over time. So its a terrific resource. Its a terrific resource because all of these men and women are volunteers, they are all trained in how to operate in a biowarfare environment which is what this is like. They know how to use that protective gear if necessary. Third and finally, they are in the business of creating order. We think of militaries as designed to blow things up and destroy things. Militaries are actually to create order out