Good monday morning. Welcome to squawk alley. Im Carl Quintanilla with Morgan Brennan and jon fortt at the Stock Exchange it is a historic day of trading. We will begin with the selloff which did include a break with Circuit Breakers richard on the stress test for stocks, mike santoli on the crude awakening in oil prices as the saudis launch a price war. Rick santelli on a bad yield trip for treasuries and Steve Liesman on the fear and the feds response bob pisani, lets begin with you and think about whats important this morning. Whats important is how did the system respond to the immense stress that we had today. This is the first real test of the margin Circuit Breaker system set up back more than 30 years ago and we did have a halt on the s p at 9 33 for 15 minutes. The by all appearances it looked like it went well it reopened understandably some bargain hunters there, a mild lift in the markets so the mechanics seem fine. What was distressing to see what happened to Oil Stocks Pu
About 800 points on the dow. Youre still looking at a loss of greater than 5 a huge story today the crude oil crush as the saudis initiate a price war. We should think about it in terms of the speed and velocity of decline the s p the is down about 17 . We hear about the news with are the russians and saudi arabia. The problem i have is you have a very healthy patient being the market now it appears to be in intensive care we dont seem to have any doctors around to treat them in intense iive care negative rates are present in the uk, first time ever. We are battling here in the United States with the potential for negative rates the missing link in all of this which is what we saw in 2008 was a global coordinated effort. There does not seem to be a globally coordinating effort to address that i think thats what the market is riding against. Liz young, what do you see . Lets start with the globally coordinated effort i think theres been an effort from Central Banks thats been reasonably
Well debate that today with Investment Committee bob dimond is here with us today. So is jeffrey curry. He will tell us where oil is likely heading next. Lets welcome in the Investment Committee. Joe is here. We said bob dimond is here the former ceo of barclays bob its great to have your insights today into the collective mix. Your money is on another wild ride you tell me. The dow hasnt gone up two days in a row for more than a month we had a thousands point gain which is 145 points. What does it tell you about whats happening i tweeted out last night been consistent i said sell the rally. I think you continue to sell rallies. Until we see the coronavirus cases peaking in the u. S. , i dont believe were going to see the bottom of the market the market may be discounted by a bit. Here is how i look at it in a very basic sense 2019 were about 30 based upon the thought were going to have a return to growth five quarters of Earnings Growth since we didnt get that and theres doubt as to w
Reputedly used to send their Members Around oxford to burning a 50 pound note in front of the homeless is that what britain is seriously looking forward to that kind of future i think unfortunately i mean im from yorkshire and we have like you know large mining communities securely where we literally for you know the police the politicised police force in the street and now were seeing those very same people suddenly voting for the conservatives. The one kind of area to come for the i draw the bricks it now becomes completely the conservative creation because you said to grieve there johnson opposes an inquiry into what you call politicised. Event famously in the miners strike why did all the mining towns where did they all go tory is it racism are anti immigrant so i think there is a i think we have to be only so we have to call it what it is in the a large appeal to bigotry in. Conservative. Kind of styling in the way that theyve sort of position themselves to the rival on the money
We have like you know large mining communities securely where we literally for you know the police the politicized police force in the street and now were seeing those very same people suddenly voting for the conservatives. The wall and kind of area to come for the ive drawn the bricks it now becomes completely the conservative creation because you said all grieve johnson opposes an inquiry into what you call it politicized. Event famously in the miners strike why did all the mining towns where did they all go tory is it racism anti immigrant so i think there is a i think we have to be only so we have to call it what it is in the a large appeal to bigotry in the conservative. Kind of styling in the way that theyve sort of position themselves to the rival on the money as you can over these areas of become older and older young people have had to leave the service because they want those were so huge so you will also look at a demographic in those areas you. People in britain not just pe