Transcripts For CNBC Mad Money 20240713

We move 500 points in an hour this morning. Investors whipsawed by another major move for stocks. At the high of the day the dow was up 400 points before dropping big time. In washington, President Trump will address the nation tonight as he comes under attack by democrats who say were not prepared and Health Officials sounding the alarm. We expect to see more cases here tonight, were tracking the spread of the virus with meg tirrell breaking new information on the crisis as it becomes more likely we are on the verge of a deadly Global Pandemic this cnbc special report markets in turmoil starts right now. Heres tyler mathisen. And welcome, once again, everybody. A headspinning day on wall street the stock market volatility reared its head. The dow down more than 2,000 points off 7 for the week and today after rising at one point more than 450 points the dow finished lower by 123. The s p slid 11 but the nasdaq bucked the trend it was up 15 points. Basically flat late today a coronavirusrelated warning. Microsoft said it will miss guidance for its business segment that includes windows citing supply issues and meantime, the yield on the tenyear bond hit a record low right now lets take a look at futures and see where they stand as we head that this evening and the dow futures negative as are the s p and the nasdaq futures as well and tonight President Trump will hold a News Conference to address concerns over coronavirus and its spread and that is rattling the market. Not the News Conference but coronavirus. Lets get to jim cramer now for his take on the market as we lookthat this week, 2,000 point, 7 or 8 down if it were my son asking me he would say, daddy, when is it all going to be over i know you dont know but you might have a guess. Stocks sometimes talk you take microsoft, the stock was, what, had ab a really, really rapidly rising almost tesla like move and say to yourself, okay, Everybody Knows there are problem, right we know theres supply problems and one thing theyre slowing down so will anyone still care if a Major Company worldwide says that things are a little weaker were seeing from after the bell that the answer is, yes, they will microsoft is down. But now lets take marriott. Marriott is a fine company down very big people worried about travel. It had some things i think were quite negative to say, stocks n unchanged in the after hours so how do you explain ha. I think that frankly was i dont want to why is that the crux of the issue, ty anyone think travel is any good . No its just not. So when marriott comes out and confirms that travel is not good, but not worse than good, you know, not terrible, then marriott might be able to make a base there will be some people who cut numbers tomorrow and people who dont believe. Microsoft has just moved so much and i like microsoft very much and theres going to come a time when you want to buy that but we need to see more negativity built in and the travel and leisure stocks very interesting are starting to get to levels that remind me of when you go back into 2003 model where you had sars and you had the transports went down 21 , remember we always have to use percents now because the numbers dont work because the stocks are so high. If microsoft stabilizes 165, 167 and say maybe its immunized but when apple lowered its range that stock got crushed theoretically you could say for so long. It says things arant done yet. I was going to save this for later but since were talking about travel, disney and disney is the biggest was the biggest decliner contributing to the decline in the dow and i believe in the s p 500 you can call disney a travel stock in a way. Absolutely. But how much of it of todays decline was related to it being affected potentially by a falloff in travel and how much by mr. Igers departure. I think weve all everyone has come to respect mr. Iger to such a level that its always lets say diggs concerting when he leaves but you know what, hes not warren buffet and never said he wants the job. Hes not going to be there till 94 i think he wanted to do Something Else but is staying on an example of a stock, you asked earlier about my kid says when this is over, i dont know whether it goes to 118 or 115 but maybe it goes to 112, i dont know if youll see that 20 years from now i dont know if youll see that. Yeah, yeah. So thats the kind of thing that makes sense to me now, they are going to solve this, ty i dont know when theyre going to solve it and people will go back to disney and when they do i dont think youll get it for 115 or 120 if you wait until they solve it and, again, they will, youll pay more i think that microsoft, theyll come a level because what is it the division that theyre not happy with is personal computers. I happen to have hp on tonight, the hpq kind and said business is incredibly strong and well be hearing that interview with enrecoke, an exceptional man who is making it better and better but i think the stocks will tell us marriott when its ready. They tell us. They speak. Yeah, you got to listen well be right back with you with more with jim cramer in just a moment. We have several special reports and begin with our Health Reporter meg tirrell. Hi, meg. The cdc is striking a new tone this week in urging americans to prepare for the potential spread of the Novel Coronavirus in the United States the agencys dr. Nancy misonya saying its not if and when it spreads and the community should prepare by looking into the possibility of School Closures and working from home. The shift came as the Public Health Community Grows increasingly concerned about explosions of think cases outside of china and in fact the World Health Organization said today for the first time new cases in the rest of the world surpassed those in china the u. S. State department issuing an increased travel advise foy for italy as cases have surged past 300 and linked to spread in multiple other countries and even brazil reported the first confirmed case in latin america. A resident who recently traveled to italy while the w. H. O. Is not calling the situation a pandemic yet a number of u. S. Health officials said were on the cusp of one thank you very much we will see you shortly. Lets go to the white house where we await a president ial News Conference that is set to begin very shortly the big question on the table tonight for the president is are we prepared . Eamon, what can you tell us. No guidance from the white house about what the president is set to say or announce potentially tonight but do expect he will appear alongside members of his Coronavirus Task force in operation for weeks trying to get their arms around this thing that will be a sidebyside with the president in the Briefing Room, Task Force Members by his side at the same time there has been some tension here between the president and the cdc, the president im told angry at that cdc briefing that we saw yesterday that really started that stock market slide late in the afternoon. The president frustrated that the cdc put it in terms of this is not an if question but a when question as you just heard meg talking about in terms of the virus coming to the United States, Senior Administration official tells me today that the president thinks its just fine for them to make plans for an Emergency Response but he doesnt want them making predictions like that. Well see if anyone makes any predictions inside the Briefing Room this evening. Well check in with you later. The big question for investors and for all americans is, are we prepared joining us now is lijana wen, visiting professor at the George Washington University School of Public Health. Welcome and are we ready thats the question . Well, one thing to clarify, this is a very quickly evolving situation. The new coronavirus covid19 was discovered two months ago and this week has been a watershed moment because were seeing now over 40 countries that now have transmission in their country, not just travel cases, but also countries that have persontoperson transmission in the community. These are new developments but just because there are new developments and just because the disease is spreading, it does not mean that the u. S. Is not prepared actually we are prepared the work of local Public Health every single day is to prepare them for emergencies just like this and just because things are getting worse, it doesnt mean that the actions that weve taken so far are ineffective it means this is disease progression. Dr. Wen, we should say you are the Health Commissioner for the city of baltimore so you have experience on the front lines making sure that cities are prepared as we wait for the president to address the country about this Public Health threat what do you most want to hear from him. First of all, im glad that the president is addressing the nation because hes the commander in chief this is a lifethreatening potentially lifethreatening Public Health crisis im glad that hes talking about the issue. I hope that he will say that hes following the advice and guidance of Public Health experts. I hope that hell also talk about what more resources hes committing because the local public Health Officials, they are the front lines of the epidemic and theyve been making pleas that they need far more resources to prepare and to respond to the epidemic. I think there is its a fine needle to thread but the president needs to assure us that, no, we should not panic but we need to prepare we need to get ourselves ready there are things we as Community Members can do but we need a lot more resources, a lot more support from the federal government in concert with public Health Officials to get there dr. Wen, thank you very much for coming on our special. This is jim cramer are we in a position where its too late to take up the drawbridges . That if we heard that the president said, you know what, were not going to allow flights from europe anymore, would it really matter . I do think it matters about travel restrictions. The initial travel restrictions that were imposed, i know there was a lot of criticism about them, but our public Health Officials acted out of an abundance of caution it was much better to overreact than underreact but i think now is a good time to reevaluate too because now that there are more than 40 countries with coronavirus, are we really going to stop travel to all these Different Countries . So its time for us to switch to a different type of plan which i hope that the president and the public Health Officials tonight will address. We got many banks that offered advisories today asking that their partners not go to europe, stop flying. Does it make sense and this is something i know the airlines hate for me to ask does it make sense if i were a loved one of yours, would you say, i dont want you to take that trip to milan, maybe stay back from spain, what would you tell me . Its hard to say because we have incomplete information but this is what i would say, i would say that at this point i really believe the train has left the station i mean we have probably many, many more cases of covid19 that are not yet being diagnosed meaning that people have mild symptoms or no symptoms at all and theyre just not being diagnosed with coronavirus but they actually have it. I think that the many Public Health experts like me believe that there are far more cases out there and travel restrictions at this point including our own selfimposed travel restrictions just dont make sense but that said this is very quickly evolving and i would definitely advise that people look at the cdc website and heed the guidance there before making any plans. Well, dr. Wen, stick with us. We want to bring in the senior medical director for karias. Testing in the United States i know your company focuses on diagnosing Infectious Diseases a lot of folks have been troublinged by what they see is a lack of capacity, a lack of properly working tests being sent out to Public Health labs across the United States what how do you assess the situation and whether we are testing enough people here yeah, i know the cdc is working on a point of care type test they do a significant number of tests at their facility in atlanta. And they are in the process of deploying that test. I know there have been a few optimizations and reconfigurations of the tests theyve developed and they will be deploying that soon i think it will be critical to do more needbased testing in the individual state department thats in county based departments of health as the virus seems to be spreading. Having tested Something Like maybe 500 people compared with south korea you are hearing about thousands being tested there. Are we doing enough here i know theyre working very hard on getting that test deployed and i expect that test to be deployed in the very near future and once its deployed youll see an uptick in the number of tests that are being used dr. Wen, i want to ask about some of the communications weve been hearing from the administration some folks seem troubled by what sounded like contradictory tones yesterday from some of the administration and then dr. Nancy at the cdc and heard reports from the Washington Post the cdc was not on board with the plan to repatriate infected americans from the diamond princess cruise ship do you worry about a lack of coordination from the administration certainly the i think certainly the efforts should be coordinated im having a little bit of trouble hearing you but certainly the efforts should be coordinated and, you know, centralized coordination will be important at properly the federal level and at each state level and certainly large cities will need their own level of coordination great and dr. Wen, we will come back to you thank you so much for being with us thanks to dr. Asim ahmed and jim cramer. Next up jims exclusive interview with the ceo of hewlettpackard that he referenced a moment ago dealing with a battle with xerox we were have the News Conference with President Trump when it happens. This special report, markets in turmoil, is just getting started. Announcer next tonight what, is one of the most important ceos in the world is saying about the virus. See what apples tim cook told investors at a key meeting today. Plus, key advice before you make your next move in the stock market arts cnbc special report mke in turmoil continues in two minutes at fidelity, online u. S. Stocks and etfs are commissionfree. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk while our competition continues to talk. Shouldnt you pay less when ynow you can. Data . Because Xfinity Mobile gives you more flexible data. You can choose to share data between lines, mix with unlimited, or switch it up at any time. All on the most reliable wireless network. Which means you can save money without compromising on coverage. Get more flexible data, the most reliable network, and more savings. Plus, get 300 off when you buy a new Samsung Galaxy s20 ultra. Thats simple. Easy. Awesome. Call, click or visit a store today. We are waiting on President Trump to speak on the coronavirus from the white house. Hes hosting a live News Conference and when it begins in just a few minutes time we will bring it to you. First and meantime, jim cramer spoke to a highprofile ceo about a range of topics including the impact of coronavirus on his business. Jim. Thats right, tyler i had the privilege of sitting down with the president and ceo of hp inc. Which is simple involved in a tussle with xerox. Take a look. You said you laid out very aggressive targets i didnt know you could hit them because i was concerned the pc market may be in decline you blew them away how were you able to do that and have that cash generation that would allow to you have such a big buyback. Let me thank you for the opportunity of being here. The last four months i have been looking forward to this opportunity. Excellent. I am thankful as you say it, we had a very strong q1. It shows that the company is strong and is getting stronger we executed extremely well we grew epa by more than 25 and grew operating profit by 15 we executed our strategy in the printer space but really did incredibly well in the personal assistance space we have an execution machine we grew revenue. We really grow our share in the premium categories and really had a strong category. Talking a 16 billion capital return plan. Youre talking 15 billion in total share of purchase including 8 billion accelerated. Almost half the company. How can you afford to do that. We have a strong Balance Sheet and what we have decided we want to use our Balance Sheet in the benefit of hps shareholders we are going to change our to make sure we can increase that and return and buy back 8 billion of stock in the next 12 months and by changing also the increasing the amount of capital we will return every quarter we will be delivering the 16 billion that we said. Youre talking about a much higher earnings number, 325 to 365 fiscal to 22 that does value your company as one of the most inexpensive in the s p 500. Why do you think it trades at such a discount. Our focus is creating value this increases the operational improvements where we will increase operating profit in the next three years by more than 600 million and also the aggressive use of our capital is going to help increase epas during that period so this is really going to be what will be helping us. Chip burke, a friend of the show, head of levis, chairman of your board has told me over and over again you will do whats right in order to create the best value for shareholders. Which includes in this particular case not succumbing basically to an odd bid from xerox. Why do you think you should get that chance to operate the company by itself. We think the offer from xerox clearly doesnt benefit hp shareholders the Value Exchange they are proposing doesnt make sense they are valuing themselves at 9 we are being valued at 7 the capital structure they are proposing creates significant risk theyre proposing a debt to ratio 4 the highest in this and highest in the s p. Isnt that terrific. Especially in situations where economy could go down, we were talking before about coronavirus, imagine what will be the impact on that in a situation where your debt is beyond what it should be, what the business will be able to support. Im glad you mentioned it frankly when i think about the pandemic, i think about my job, i dont want to be the person who said, you know what, that takeover made a lot of sense at the absolute top which is entirely what could happen the goal these peop gall theyn makes me feel theyre desperate. This is the kind of thing that youll look back and say, i cannot believe some company was that darn foolhardy to take down all that debt to do it we are competing in some parts of the market in a relatively small part of our company. How much is if you can tell us. Less than 10 , the part we overlap and have grown 60 in the last three years, they declined double digit. This shows you the momentum we have and why we are winning in the market. Why do you think look, theyve got a board. Theyve got people they want to put on they do have support theres some big institutions saying this makes a ton of sense. How do you win them over if theyre trying to make a quick buck. What we are Say Something that there is value and son sol dags and will create value for our share hold yours but this needs to be done in the right way. We think the proposal doesnt make sense but in addition to executing our plan we think this is something that we are open to consider but we have explained. I think thats important because there was a time when your company was interested in combining with them and it didnt work. Their company i think has since gotten worse although the stock went up because people expected you to buy them. Is there as much value there as when hp looked at it a few years ago. What we think is there is value and consolidation in the market because there are synergies to be achieved those will create value. We have questions about the performance of the company that we need to validate before we go and we make a potential offer. Is this the time to lever a big know whafrg could happen in europe where you have a lot of business in the United States with the coronavirus, to me it seems i would say illadvised. At this point clearly we think the debt rate they are proposing is beyond what the company in this situation where we are and also given the businesses we manage will be able to support. We have a negative cash conversion cycle imagine what will be the i remember packet on that debt in the situation where the slowdown because of Something Like coronavirus. I would say its one of the more stupid things ive heard and is very embarrassing that clown banks would check off on it buff ive become more of a diplomat you are a man of the world how are we doing on this coronavirus worldwide . Are you concerned. Actually the way we look at this is we think the coronavirus is going to have temporary impact. Even from your business where we all use these. Well, the major impact on our site is in the manufacturing site we produce most of our products in china we have been after chinesenew year production has slowed down. We are seeing a recovery and the way we look into this is temporary impact during today how many of the factories that supply to this were open. As of today majority of the factories are open but the production is not at the 100 level. You are not being able to meet demand. I know your demand is strong. Have that perspective we dont see impact supply chain driven impact and calculated and estimated that in q2 this will have an impact and this is what we have built in. Heres what i want to do. Very fine people at xerox, lever up, could be the top i always welcome to hear Something Like that because i am a person of openmindedness tyler, there you go seven days since, probably going to cost them, all about supply chain. Look, were not doctors but we can make decisions its going to hurt business. It is and will start showing up in numbers come april. Much more ahead on this special report markets in turmoil. Including what investors like you need to know about this intense selloff, the volatility and there there are any hidden opportunities to consider right now and,of course, we are waiting for President Trumps News Conference on coronavirus when it starts we will go there immediately. At fidelity, online u. S. Stocks and etfs are commissionfree. And when you open a new brokerage account, your cash is automatically invested at a great rate. Thats why fidelity leads the industry in value while our competition continues to talk. Talk, talk while our competition continues to talk. Apps except work. Rywhere. Why is that . Is it because people love filling out forms . Maybe they like checking with their supervisor to see how much Vacation Time they have. Or sending corporate their expense reports. Ill let you in on a little secret. They dont. By empowering employees to manage their own tasks, paycom frees you to focus on the business of business. To learn more, visit paycom. Com the coronavirus fears shake up wall street stocks react to the growing threat of the coronavirus. We move 500 points in an hour this morning. Investors whipsawed by another major move for stocks. At the high of the day the dow was up 400 points before dropping big time. Coronavirus continues to spook the market. Tonight were tracking the spread of the virus breaking new information on the crisis as it becomes more likely we are on the verge of a deadly Global Pandemic this cnbc special report markets in turmoil starts right now. Heres tyler mathisen. Good evening, everyone. Once again, if youre just tuning in and expecting to see mad money tonight we bring you a special cnbc report, markets in turmoil. Jim cramer is here live on set to help guide us through the market volatility and offer insight as to what might come next there and today after rising more than 450 points, the dow ended lower by 123 extending its selloff now five days long, the s p slid 11 points but the nasdaq did buck the trend. It was up 15 late today a coronavirus related warning. Microsoft said that it will miss guidance for its business segment that includes windows citing supply issues and meantime, the yield on the tenyear note hit a record low right now the futures are lower. Well take a quick glimpse at those right now. They are down, the nasdaq has turned positive as you see there ever so slightly and tonight President Trump will hold a News Conference just seconds away, we are told to address concerns over the coronavirus and its spread that is rattling the market as we get ready for that, our Health Care Reporter meg tirrell is here with the latest developments on coronavirus. Its been driving the Market Action on wall street. Meg, i warn you i may have to interrupt but its all yours. Increasing spread across the globe is putting Health Officials on high alert. Cases surging to more than 1200 in south korea more than 400 in italy Germanys Health minister saying that country is now at the beginning of a coronavirus epidemic as infection chain there is can no longer all be tracked. The first case confirmed in latin America Today as well. A resident of brazil who traveled from italy. In the u. S. A 15th case confirmed by the cdc but no details yet on that patient. Those 15 include 12 travelers from china and two of their close contacts the country also has 42 cases among americans evacuated from the diamond princess cruise ship and three were repatriated from wuhan, china. Work accelerating on treatments and vaccines Gilead Science says its starting two of its own Clinical Trials of the experimental drug they developed for the coronavirus and will test it in 1,000 patients in Asian Countries and others with high levels of diagnosed companies and expects results from two trials in china by april tyler. Thank you very much the volatility was the name of the game on wall street today. The dow at one point up more than 400 points. But they didnt hold those gains. The index finished lower bringing the threeday point loss to more than 2,000. Dont forget it is the percentages that matter at this level on the dow bob pisani has more from the New York Stock Exchange as we await the president. Bob. Tyler, compared to the last two days down 123 points on the dow. Doesnt look like much but the train day volatility was huge. Dow futures dropped 500 point, the futures preopen on speculation coronavirus was spreading in europe. Then it rallied 800 points into the open and into the midmorning and then it dropped 600 points in the middle of the day after an fda official echoed the concerns about the virus possibly growing into a pandemic now, many stocks like caterpillar, chevron, american express, ibm, ukrainited technoy swung within an hour of two before settling down into the close. After the close as you heard microsoft became the latest company to warn of coronavirus saying the company wouldnt meet its Sales Guidance and its personal computing segment for the march quarter. This was the Third Straight day of huge Trading Volume one group benefitting from all of this crazy volatility, the exchanges cme which runs the largest Futures Exchange had record volume yesterday. Cboe, it has seen huge volume and ice also up today and tyler, as you saw there, s p futures essentially flat right now tyler. Bob, thank you very much. What should investors do in this market environment lets bring in Portfolio Manager christopher retzler. Thanks for having me. What should investors do . Larry kudlow said stocks are a good place to be in the long rung in the short run these days they may be nervous making. I think investors shouldnt panic. Right . This is a methodical from what ive seen ive lived through 2al as we all did. This isnt a, you know, significant selloff of volume were seeing theres not this panicked get me out feeling but a accommodative Central Banks around the world not a financial crisis per se. There is a nervousness out there. Fear of the unknown, clearly the companies we talk to really cant quantify what the impact is going to be and when is it going to end but i think generally its probably a bump in the road or multiple bumps and it may take a couple quarters but for an active manager like ourselves weve been pretty active deploying some of our capital. One thing that occurs to me and chime in here if you are so inclined is the idea that one of the advantages individual investors have is they dont have to do anything. Theyre not reporting to a board of directors theyre not being graded every single day like you are. Theyre not watching their portfolio necessarily. At the end of every quarter, right . Thats one of their advantages i think one of the calls ive been getting a lot, should i put more money in the market what are you thinking here i said, look, i dont know had this ends. I cant give you that advice but we have cash we raised cash and have been hoarding it for awhile we thought there would be a correction anyway. We just didnt know what would trigger it and at what point having the cash on hand weve done our due dill sdwreigence ad finding points where we can deploy capital so weve been pretty busy the last few days. You raise a good point which is that you didnt know what was going to happen but you know the last week of this rally was pretty much absurd we had stocks doubling we had tesla which i like very much and understand why it should be where it was but it just zoomed but we started seeing fellow travelers, the balla balance players and people will say theyre the greatest but theyre not. What occurred to me, chris, its a biological crisis as marc benioff said so let me ask you which is worse for a company, a biological crisis or a financial crisis. Look, i think the companies have been here and the first thing they say concerned about their employees overseas i think thats fantastic that should be their focus but a biological situation we have to interrupt. Go to the white house for the president ial News Conference. Thank you very much thank you. Before i begin id like to extend my deepest condolences to the victims and families in milwaukee, wisconsin, earlier today a wicked murderer opened fire at a moul son cooson coarsg company taking the lives of five people some were badly wounded. Our hearts break for them and their loved ones we send our condolences. Well be with them and its a terrible thing, terrible thing so our hearts go out to the people of wisconsin and to the families thank you very much. I have just received another briefing from a great group of talented people on the virus that is going around to various parts of the world we have through some very good early decisions, decisions that were actually ridiculed at the beginning, we closed up our borders to flights coming in from certain areas areas that were hit by the coronavirus and hit pretty hard and we did it very early a lot of people thought we shouldnt have and the number one priority is the health and safety of the American People and thats the way i viewed it when i made that decision. Because of all weve done, the risk to the American People remains very low we have the greatest experts in the world. Really in the world right here people that are called pong by other countries when things like this happen. We were ready to adapt and were ready to do whatever we have to as the disease spreads, if it spreads, as most of you know, the level that weve had in our country is very low and those people are Getting Better or we think that in almost all cases theyre better we have a total of 15. We took in some from japan, you heard about that because theyre american citizens and theyre in quarantine and theyre Getting Better too but we felt we had an obligation to do that it could have been as many as 42 and we found that we were it was just an obligation we felt that we had. We could have left them and that would have been a very bad very bad i think, American People and theyre recovering of the 15 people, the original 15 as i call them, 8 of them have returned to their homes to stay in their homes until fully recovered. One is in the hospital and five have fully recovered and one is we think in pretty good shape and its in between hospital and going home, so we have a total of da but we have a total of 15 people and theyre in the process of recovering with some already having fully recovered we started out by looking at certain things weve been working with the hill very, very carefully, very strongly and i think we have very good bipartisan spirit for money. We were asking for 2. 5 billion and we think thats a lot, but the democrats and i guess senator schumer wants us to have much more than that and normally in life id say well take it, well take it. If they want to give more, well do more. Well spend whatever is appropriate. Hopefully were not going to have to spend so much because we think weve done a great job of keeping it down to a minimum and, again, weve had tremendous success, tremendous success beyond what people would have thought. Now, at the same time you do have some outbreaks in some countries, italy and various countries are having some difficulty china, you know about where it started. I spoke with president xi. We had a great talk. Hes working very hard i have to say hes working very, very hard and if you can count on the reports coming out of china, that spread has gone down quite a bit. The infection seems to have gone down over the last two days as opposed to getting larger, its actually gotten smaller and one instance where we think we can be its somewhat reliable it seems to have gotten quite a bit smaller. With respect to the money thats being negotiated, they can do whatever they want i mean they can well do the 2 1 2 were requesting 2. 5. Some republican was like us to get 4 and some democrats would like us to get 8 1 2 and well be satisfied whatever it is. Were bringing in a specialist, very highly regarded specialist tomorrow who works actually at the state department, very, very tremendously talented in doing this i want to you understand something that shocked me when i saw it that i spoke with dr. Fauci on this and i was really amazed and i think most people are amazed to hear it. The flu in our country kills from 25,000 people to 69,000 people a year. That was shocking to me. And so far if you look at what we have with the 15 people and theyre recovering, one is one is pretty sick, but hopefully will recover but the others are in great shape but think of that, 25,000 to 69,000 over the last ten years weve lost 360,000 these are people that have died from the flu, from what we call the flu. Hey, did you get your flu shot and thats something now, what weve done is weve stopped nonu. S. Citizens coming in to america from china were screening people and have been at a very high level, screening people coming into the country from infected areas. We have in quarantine those infected and those at risk we have a lot of great quarantine facilities. Were rapidly developing vaccine and they can speak to you, the professionals can speak to you about that the vaccine is coming along well and in speaking to the doctors we think this is something that we can develop fairly rapidly, a vaccine for the future and coordinate with the support of our partners, we have great relationships with all of the countries that were talking about, some fairly large number of countries, some its one person, and many countries have no problem whatsoever and well see what happens but were very, very ready for this for anything whether its going to be a breakout of larger proportions or whether or not were, you know, were at that very low level and we want to keep it that way so were at the low level as they get better we take them off the list so that were going to be pretty soon at only five people and could be at just one or two people over the next short period of time. So weve had very good luck. The Johns Hopkins i guess is highly respected, great place, they did a study, comprehensive, the countrys best and worst prepared for an epidemic and the United States is now were rated number one were rated number one for being prepared this is a list of Different Countries, i dont want to get in your way. Especially since you do such a good job this is a list of the Different Countries, United States is rated number one most prepared. United kingdom, netherlands, australia, canada, thailand, sweden, denmark, south korea, finland. This is a list of the best rated countries in the world by Johns Hopkins. Were doing Something Else thats important to me because hes been terrific in many ways but also good on health care and we really followed him very closely, a lot of states do when mike was governor, mike pence of indiana, theyve established great health care. They have a great system changed the systems. They wanted to base it on the indiana system hes really expert at the field and what ive done is im going to be announcing exactly right now that im going to be putting our Vice President mike pence in charge and mike will be working would the professionals, doctors and everybody else thats working. The team is brilliant. I spent a lot of time with the team over the last couple of weeks but theyre totally brilliant and were doing really well and mike is going to be in charge and mike will report back to me but hes got a certain talent for this and im going to ask mike pence to say a few words please mike thank you, mr. President. President trumps made clear from the first days of his administration we have no higher priority than the safety, security, health and wellbeing of the American People and from the first word of an outbreak of the coronavirus, the president took unprecedented steps to protect the American People from the spread of this disease. You counted those rebriefly but establishment of travel restriction, aggressive quarantine effort of americans that are returning, declaration of a Public Health emergency and establishing the White House Corona Task force reflective of the urgency the president has brought to a whole of government approach as a former governor from the state where the first mers case emerged in 2014, i know full well the importance of president ial leadership, the importance of administration leadership, and the vital role of partnerships of state and local governments and Health Authorities in responding to the potential threat of dangerous infections, diseases and i look forward, mr. President , to serving in this role and bringing together all the members of the Corona Task Force you established, hhd, cdc, dhs, department of transportation and state this team has been at your direction, mr. President , meeting every day since it was established. My role will be to continue to bring that Team Together to bring to the president the best options for action to see to the safety and wellbeing and health of the American People well also be continuing to reach out to governors, state and local officials, in fact, in the recent days, the white house met with over 40 state, county and city Health Officials from over 30 states and territories to discuss how to respond. To this to the potential threat of the coronavirus, well be working with them in renewed ways to make sure they have the resources to be able to respond and as the president said, well be adding additional personnel here at the white house to support our efforts on the president s behalf well also be working with members of congress to ensure the resources are available for this whole of government response and well be working very closely with secretary azar hen ace team that have done an outstanding job communicating to the public to ensure the American People have the best information on ways to protect themselves and their families and that the public has the most timely information on the potential threat to the American People mr. President , as we have been briefed on the threat to the American Public remains low of the spread of the coronavirus, you have directed this team to take all steps necessary to continue to ensure the health and wellbeing of the American People and the people of this country can be confident that under your leadership, we will continue to bring the full resources of the federal government in coordination with our state and local partners to see to the health and wellbeing and to the Effective Response to the coronavirus here in the United States of america with that, the president s asked me to recognize the secretary of health and Human Services alex azar and also the Deputy Director of cdc dr. Anne schuchat thank you, mr. Vice president and thank you, mr. President for gathering your Public Health experts here today and for your strong leadership in keeping america safe i want to say i could not be more delighted you asked the Vice President , my old friend and colleague, to lead this whole of government approach with us under the Emergency Support function number 8. As of today we have 15 cases of covid19 that have been detected in the United States with only one new case detected in the last two weeks, we also have three cases among americans repatriated from wuhan and 42 cases among americans repatriated who had been stuck on the diamond princess in japan. The president s early and decisive actions including travel restrictions have succeeded in buying us incredibly valuable time this has helped us contain the spread of the virus. Handle the cases that we have, and prepare for the possibility that we will need to mitigate broader spread of infections within the United States the president s actions taken with the strong support of his scientific advisers have proven to be appropriate, wise and well calibrated to the situation. Were grateful for the hard Work Health Care workers, First Responders and state and local leaders put into the response so far. Because of this hard work and the president s leadership the immediate risk to the American Public has been and continues to be low our containment strategy has been working at the same time, what every one of your experts and leaders have been saying for more than a month now remains true, the degree of risk has the potential to change quickly and we can expect to see more cases in the United States. That is why weve been reminding the American Public and our state, local and private sector partners that they should be aware of what a broader response would look like. Cdc has recommended that the American Public and especially state and loam governments, businesses and other organizations should refresh themselves on how they would respond in the event that the situation worsens. Were encouraging americans to learn what future steps might be necessary to keep themselves and their communities safe knowing these potential steps now can help keep the risk to you and your community low americans can find useful information at cdc. Gov covid19 working closely with private sector partners to educate them. Finally weve begun working to secure the funding we need there are five major priorities in the white house request to congress that the white house made on monday these priorities are first expanding our surveillance network, second, support for state and local governments work third and Fourth Development of therapeutics and vaccines and fifth, manufacturing and purchase of personal protective equipment like gowns and masks as chairman of the president s Coronavirus Task force im committed to providing regular updates from our coordinated int interagency process. Weve had our top Public Health leaders like those joining me today speaking to the media many times per day to inform the American Public. The Trump Administration is going to continue to be aggressively transparent keeping the American People and the media apprised of the situation and what everyone can do with that im going to hand things over to dr. Anne schuchat, dr. Schuchat is the senior career official at the centers for Disease Control and prointerception, the principal Deputy Director with an over 30year career at the cdc in Public Health and as a member of the United States Public Health Service Commission corps so, dr. Schuchat, ill turn it over to you. Thanks so much, mr. Secretary. As you know, this has been a difficult and challenging time and our hearts go out to the individuals who have been dir t directly affected by the virus and to all those who have been working tirelessly in responding to it. Our aggressive containment strategy here in the United States has been working and is responsible for the low levels of cases that we have so far, however, we do expect more cases. And this is a good time to prepare. We as you heard its the perfect time for business, health care systems, universities and schools to look at their pandemic preparedness plans, dust them off and make sure that theyre ready and we have lots more information at the cdcs website and in partnership on how to do that but its also a really good time for the American Public to prepare and for to you know what this means for you the coronavirus that were talking about is a respiratory virus. Its spread in a similar way to the common cold or to influenza. Its spread through coughs and sneezes and so those everyday sensible measures that we tell people to do every year with the flu are important here covering your cough, staying home when youre sick and washing your hands tried and true, not very exciting measures but really important ways that you can prevent the spread of respiratory viruses. So this the trajectory of what were looking at over the weeks and month as head is very uncertain but many of the steps that we have taken over the past 15 years to prepare for pandemic influenza and are experienced going through the 2009 h1n1 pandemic reminds us of the kind of steps our health care system, our businesses, our communities and schools may need to take were in this together, all of government the public and the private sector and the cdc wants to make sure you have the best Information Available every day. Thank you. I just want to give you a quick update on the my name is dr. Tony fauci, im the director of the National Institute of infect shoes diseases at nih. A quick up the date on the countermeasure developed in the form of vaccines and therapeutics i had told this audience at a recent press briefing that we have a number of vaccine candidates and one prototype one to give you a feel for the time frame of a vaccine and what its impact might be now and in su subsequent years to put it in trial to see if its safe and induces a response that would be protective in about three months i think its going to be less than that, its probably going to be closer to two months, that would then take about three months to determine if its safe and which gives us six months then graduate from a trial phase one of 45 people to a trial that involves hundreds if not low thousands of people to determine efficacy at the earliest an efficacy trial would take an additional six to eight months. Awe though this is the fast ef we have ever gone from a sequence of a virus to a trial, its still not applicable to the epidemic unless we really wait about a year to a year and a half now, that means two things, one, the answer to contain something Public Health measures, we cant rely on a vaccine over the next several months to a year however, if this virus which we have every reason to believe it is quite conceivable it will happen will go beyond just a season and come back and recycle next year. If thats the case we hope to have a vaccine and then finally and briefly they are burapeutic. A number of drugs tested and a few days we initiated a trial of a drug that has antiviral activity in vitro in an animal model. The good news it is a trial randomized to either placebo or standard of care and drug and standard of care which means we will know reasonably soon whether it works and if it does, we will then have an effective therapy to distribute. Thank you. Thank you thank you very much mr. President , having come from a long and busy trip from india and great country long trip. As long as the coronavirus is concerned you have a medical team behind you. And im sure they will keep america safe your trip to india, mr. President , where do we go from here, u. S. And india relations are concerned and also, mr. President , you are famous in india and Prime Minister modi is famous in america. We wont talk so much about that other than i just got back, long flight. It is a long flight. Hes a great gentleman, a great leader. A great gentleman, a grt leader its an incredible country we were treated very, very well. And we really enjoyed it a lot of tremendous progress was made in terms of relationship. Our relationship with india, is extraordinary right now. And were going to be doing a lot of business with india theyre sending billions and billions of dollars now to the United States. But i would rather talk about this right now the cdc said yesterday that they believe its inevitable that the virus will spread in the United States and its not a question of if but when. Do you agree with that assessment well, i dont think its inevitable probably will. It possibly will it could be at a very small level. It could be at a larger level. Whatever happens, were totally prepared we have the be