Transcripts For CNBC Squawk On The Street 20240713

Nation, the president announcing that travel ban. The European Union failed to take the same precautions and restrict travel from china and other hot spots. As a result, a large number of new clusters in the United States were ceded by travelers from europe. After consulting with our top Government Health professionals i have decided to take strong but necessary reactions to protect the health and wellbeing of allmericans, to keep new cases from entering our shores, we will be suspending all travel from europe to the United States for the next 30 days the new rules will go into effect friday at midnight. David, jim, were going to talk about the president s address, the markets obviously today, but really quick, the fact that youre there and im here, just reflects the fact that the nature of work is changing, and will probably stay this way for some time to come yeah, it will, carl again, were splitting up our teams in case something happens at the nyc or here so we can obviously still do the show. Thats the basics of it. Jim and i will be here together, and like everybody out there right now, we dont know how long, jim, we dont know if this is going to be something thats shortterm in nature or is going to take longer, which lends itself to the uncertainty we have seen playing out in the Capital Markets for the last couple weeks and perhaps not perhaps, getting a lot more dangerous for the markets as a result of what occurred yesterday, last night, and obviously, what we see today exactly right you know, carl, i think that there are times for more radical action than we have seen in our careers, and this is one of them i dont think it really involves the travel ban hate him or like him, President Trump not in sync with what were doing, and we can offer leadership provided we stay healthy. Jim, you tweeted youre working on it sounded like a kind of a federal blueprint of what should be done policy wise. Can you talk about that . 500 billion immediate 30year treasury by the federal government to be able to make sure that none of our essential industries stop. You know which ones. No need to point them out. They can do that today obviously, theres a huge amount of money available we do need Something Like what tom friedman was talking about, which is President Trump huddling with the democratic party, trying to figure out what to do. Secondly, the federal government should not be taking any money in whatsoever from any Major Companies. So the Major Companies can have the cash flow. Also with individuals so they can have the cash flow theres no need for the federal government to take any money in right now. Print the darn money and then finally, we have to make sure that lets just say that when we have a situation where a company is going to be very strapped and go under, that company has to be able to tap the treasury right now it wouldnt be surprised if even the federal government, maybe through the Federal Reserve, has to buy Corporate Bonds these are not normal times you have to do this. The treasury has the ability to do this. To order that we do not take any new money in what were dealing with now, jim, is companies that are doing whatever they can. We pointed this out yesterday, of course. Going from buying back equity to potentially selling equity extending maturities, pulling down revolvers in the case of boeing, we saw that straps the Banking System we cant do that they have to be able to tap the u. S. Treasury. If youre in a position to draw down your credit line because you think theres trouble coming, you do that. That exacerbates the concern all that does is put a lot of pressure on the Banking System, when its the right time, with the rates where they are, for the treasury to step up. 500 billion to start. You have to have the federal government do more than just block travel because were going to have a lot of companies that are basically not taking in much in terms of revenue therefore the federal government has to do it. We want to close the notion that you owe someone. And that the federal government will do that and then after all we can find out who abused it. I dont want to hear any of that nonsense about, you know, that we have forgiven the wrong people like we did in 2008 moral hazard this is notmoral hazard. This is physical hazard. So we think we have to do these things its up to the federal government nobody is big enough to be able to handle the problem we have right now. So you want to avoid that chapter that we had early on during the crisis, jim, where there was a stigma in asking for help and admitting you needed help right, we have to get rid of that fortunately, the rates are so low we can do this we could be the strongest country on earth if we used the federal governments Balance Sheet, not the Federal Reserve, but the federal government everybody owes the government at all time everyone in this country, individuals, corporations. That has to be suspended right now so they have more money. Are these radical actions . You bet they are can they be done smoothly . Absolutely are we dpog to let so Many Companies go bankrupt because of an illness i think that is stupid this is the time for radical action the action can be done by the federal government once we stop worrying about money, we can worry about health simultaneously i see a number of companies in the s p 500 that can go bankrupt in the next five weeks does that make any sense no, we dont want to reformulate any corporation because they cannot get paid. How do you make an airplane with so many suppliers when people at the suppliers get sick the federal government could tide us over here. I dont want everything closed i want everything to work smoothly the only way to work smoothly is to take advantage of what the rates are and for the federal government to borrow as much as possible and then give it to us. This can be returned after we get healthy. Do we want to come in here every day and see which ceo is taken down by this illness, how many workers are taken down we have to say no matter what, the country will keep running because money is not a necessity at this time have you seen any sign from leaders in washington that they believe the problem is at significant as you think it is absolutely not. They know nothing. They know nothing. Right we know more than they do and thats not acceptable either i want the federal government to know more than me. All right. I hear you. I knew more than they did in 2007, and i anyhow more than they do now. Its disappointing perhaps they should talk to more leaders and leaders could be more candid, but this is a situation if everybody takes down the rezauchvolver at the se time, we wont be worried about companies that take down the revolver we need someone who understands and says its not panic, not moral hazard we need the country to work smoothly while we get the kits if we get the kits, we can be like south korea we can be like south korea were a Major Company. I dont think problem is people coming in from luxembourg. We had larry kudlow on last week he said its relatively contained. That was nice we obviously discussed that with him and tried to counter that perception. Thats going to be a kier here carl, i want to get back to you because i know we also have news coming out of d. C. We want to get to were going to watch policy all day, guys. Especially in the house, as they float this new support bill. In fact, were getting news rarting mnuchin and pelosi well go to ylan mui good morning. House Speaker Nancy Pelosi did speak with treasury secretary Steven Mnuchin this morning about the democrats bill to provide targeted aid to workers impacted by the crisis the call lasted for about 16 minutes. Though yesterday, both Administration Officials and democrats signaled hope that there could be some sort of bipartisan package, i am told that republicans have several hangups with the actual bill text it includes that it does not have a pay roll tax cut in the bill theres also no increased authority for sba loans. Those are two things the president called for last night. It also does not include Hyde Amendment protections for diagnostic labs, those have to do with federal funding for abortions, and also concern about the size of the federal match for the medicaid expansion. Now, it is unclear at this time if any of these will be deal breakers the house is planning to vote on this bill later on this afternoon. Guys, we will hear from the Top Republican in the house, kevin mccarthy, at 10 00 a. M. This morning. Perhaps he will provide more clarity on where the gop stands then how much are we fighting the clock regarding recess, and is mcconnell showing any signs of favoring one side or the other on the first question, House Democrats in the house is scheduled to go on recess after the votes today. So the house will not be here to vote on perhaps any amended bill that could come down from the senate so there are some logistical, procedural hurdles to consider mcconnell said this is something that needs to be worked out between the white house and nancy pelosi theyre the ones who are going to drive the narrative, shape what this looks like hes put the ball in their court. Ylan mui, well come back to you later on unless jim and david, you have questions. Obviously, a congressional story in a few moments when we get lagarde headlines, it will be a monetary and mare fiscal story too. No, and obviously, carl, also, well be focused on the markets when we open 20 minutes from now limit down potentially well see if we get another halt as we did earlier this week of 15 minutes jim, Something Else has come up. Not as much on the equity side, but we have changed the way we do our work here but were not alone. On trading desks across the country, firms now have people working from remote locations, from home. The equity markets, where things are so computerized its not as big a deal, but the fixed income markets where its still sometimes about negotiating. Yes, it is. And about how much capital you have, it could be a big clunky today right at a time when you wouldnt want it to be, as everybody sort of gets their new system up and running because theyre not together on Trading Floors thats happening as well noon tuesday, after black monday, Federal Reserve come out and say listen, were going to provide all the liquidity necessary. Chairman greenspan assuring the market is not going to go to zero at that point, we were probably at about 1400 on the dow no one really knew what the prices were. He was able to restore order it helped. I think this is one of those situations i dont think its a world war i situation where we have to close, but i think youre right. The fixedincome market is so much bigger than the equity market we need to know theres liquidity, that any Large Corporation that may actually have an attack of coronavirus so they cant produce and the machinery sigh and industrial side can still meet payroll. This is a different time, david. All the companies that i speak to are trying to figure out whether their employees are healthy, but they dont have kids i know that theres not being facetious, i know there are kits available. If you have 100 degrees and a dry cough, you cant get a kit in this country. In new york city, if youre young. But we need to have the ability to tell who is sick and who is not. So that we dont close the infrastructure of this country if we do that, no one can pay any bills. That means everything institution is threatened. I dont think they realize right now they have the ability in the federal government, the only entity thats big enough to make it so Large Corporations can get through the next 60 days and then we can be able to take control of it. Governors have leadership. And corporations have been exerting leadership. They have been ahead in many ways given in terms of trying to change behaviors we could bankrupt the Airline Industry in 60 days. Does that make any sense at all . These are Great Companies and great workers. Its no longer just making sure the workers get paid look, our country is run on credit and we do not have a situation where all the credit can be made available. No. Only the federal government has that ability they could borrow at basically zero, this is a good time. Carl, we are going to be keeping obviously the equity markets are foremost for us because we can watch those in real time, but well keep a close eye on the markets, what companies are doing. Said it yesterday, well continue to. Many are advised, pull down a revolver if you have any thought or chance its going to be a difficult period for you and you have the ability to do it, do it thats what jim is talking about as well, carl. Indeed, and energy with 30 west texas, but the key will be, david, as you have said, whether or not that migrates to other sectors that are less exposed to energy jim, you mentioned companies seeing a big cash flow interruption we havent mentioned carnival yet, but they were halted earlier this morning Princess Cruises announces a temporary pause for 60 days. We want that company to stay in business. Its in the interest of the country because they have thousands of employees per ship. Should that company be put out of business because, say, a 60day problem with corona i think that would be unfortunate. You have odd things right now. For instance, david abney stepping down, carol thome someone you have always said was excellent at her job at cfo at home depot. She understands finance why you need someone who understands finance, what you need to do is figure out what your position is did boeing need that money right now . Boeing is being very smart because were in a situation, and you hate to use this term, but every man and woman for themselves we have to get away from that. We dont need a foot race to go take money from jpmorgan Norwegian Cruise Line takes down what, 675. If jamie, unfortunately, i hope jamie gets better, but if you had a leader in the banking industry, they met with the president who would come out and say listen, we met with treasury and theres no problem you dont need to draw down every revolver because we have money available at almost zero Interest Rates by the federal government you operate as business as usual. You have people who have sick, you send them home if you can work at home, great if you have to work at work, like fixed income, you cant build planes at home largest exporter so lets just do things differently. Lets just look, its great you want to say the europeans, that they did something wrong. Fine, lets forgive them and well all get in a room and Work Together if there is any name calling of democrats right now or if theres any bad will by the democrats to the president , this is the kind of situation where maybe that should be waived. I dont want to read in my twitter feed about sleepy this and angry that and i dont want to see the democratic castigating the president. Its a nice time to get together thats asking a lot well, its time to ask for a lot. We can sit here and just act like its business as usual as we come to this set in englewood because we dont want to get sick is that business as usual . No and i think people are acting as if its business as usual as they were in the nba sitting there cheering a player is literally giving this disease to other people. And were just watching it on tv thank heavens for mark cuban recognizing its a different time carl, you know, that has been something we have been talking about for a while now in terms of the different behaviors people are adapting and you need a broad swath of the population to agree it will change its behavior significantly if were going to successfully stop or slow the spread of the coronavirus around the country i know. That footening of rudy, of the utah jazz touching the microphones, is disturbing i have had friends even this morning saying im finally starting to believe in this virus. And then gottlieb, jim, you mentioned his twitter feed this morning which is amazing he talks about how important basically, we have lost our chance to be south korea now the idea is avoiding becoming italy through aggressive screening and through the acceptance that social distancing is real and its going to be needed. Yeah, i mean, it was kind of jarring to see the nba player be as selfish as he was look, if you want to have a steven king story, you have a player giving the disease to everybody. What i also was shocked at is we have this biogen cluster which shows you some of the most sophisticated people in health, and theyre acting as business as usual and they have now become the, lets say, the new england official distributor of the disease. This kind of callous and stupid behavior has to end right now. The only way to do that is, again, through the federal government we could have 50 different governors say, you know what, like the civil war, were going to be a states rights country, but you cant do that, because no governor is powerful enough all the governors have try said to take the lead, without a doubt. A number of them in quite a few states have said no gatherings prior to the nba suspension, the state of washington, obviously, was a question, they were not going to allow that. So the mariners, for example, in seattle, were going to have to find another place to potentially play their baseball games. None of that is happening anymore. Excuse my ignorance over the states versus the south kree agovernment, but they seem to recognize the Central Government is important, as to the chinese. We dont want these draconian measures, were a a a democracy understand that, but its time to say were not going to allow gatherings is baseball trying to figure it out . Hockey everyone is trying to figure it out but thats entities a dearth of information has contributedinaabout to figure it out. A series of owners . Who are they ncaa is trying it a different way with limited participation from crowds. Squawk talked to cuban a few moments ago. We all know how he got that news on his phone last night. Heres what he said, guys. Nobody at the Dallas Mavericks is an expert on Infectious Diseases or their spread, so this is not a situation where you fake it to you make it or try to sound or act important. The nba has hired people with expertise in those areas and theyre working with people from the government and other expert areas, other people with expertise, so we have to defer to them, and thats exactly what well do you know, if the nba you know, effectively, one player, two players, whatever it is already have it, well have to act accordingly and i think the nba made the right decision. Theres a levelheaded guy. Were going to watch nike today. Theres members of real madrid who were in quarantine this morning according to the news wires. And cuban also said he checked his insurance last night doesnt cover this right then what should happen here dont you think the Federal Reserve should guarantee that all existing credit lines will be honored and backed up and guaranteed by the fed so theres no need for companies to panic and draw down all their credit lines. We have to stop panic and the way we do it is financially. Not everybody is as sfi sophisticated as mark cuban. This could be ended. Could you imagine if the federal government said were going to back up, Federal Reserve, jay powell comes out this morning, which he must, and say look, were going to guarantee these credit lines so theres no need to panic no one is saying this is something that lasts forever this will past. Scott gottlieb, it will. We dont know how long, but it will without a doubt, it will then why dont we guarantee things so four months from now we dont have every Major Company in chapter 11. Were not going to have every Major Company in chapter 11. Certainly those that are poorly positioned for an economy in terms of where people gather and or travel. But no one has insurance for coronavirus. So why not just take the emergency measure that says, you know what, for the duration, we will do this then you pay the money back or you will have to file chapter 11 i hate to see an act of god, not this country or that country, an act of god make it so so Many Companies go under someone has to speak for the companies and say, you know what, this is something we need the federal government for, not jpmorgan this is not jpmorgan and bank of america. Who initiates that, jim is that secretary mnuchin calling up jay powell . Are we talking about what we saw in the financial crisis . I think thats good last time i can remember being in this building in a regular basis. Its a 9 11, not a world war i where things close carl, i think its a 9 11like situation. A all hands on deck situation. The president did say its not time for democrat and republican, but only the Federal Reserve is big enough to guarantee the credit lines only the treasury can issue that much money in conjunction with congress why cant you borrow 500 billion to make it so everybody goes to work and knows that theyre going to get paid. Maybe now, maybe three weeks from now, but it would sure make this country feel better because right now, you have a lot of people who probably go to work who are sick, because the last thing they want to do is get fired because theres not enough money. Does boeing have to have layoffs . You dont want that. Im focused on boeing because thats a very sophisticated but the largest exporter we want to make it so if youre sick, you go home, and youre not afraid youre fired. If youre a cfo at a Major Company, you dont feel like you have to draw down and therefore put different banks at risk. You know theres a fund from the United States which is borrowing, of course, pretty much at zero like warren buffett. Then i think its not going to be business at usual, but we would be worried about our health, not a Financial Health we have to take the Financial Health off the government, but only the federal government is big enough then we worry about our health, then we beat this thing. And we can beat it with american ingenuity. Well beat it with science, well beat it with a manhattanlike project, with people like dr. Gottlieb, dr. Fauci, but we have to take the financial thing off the table or else all were going to talk about is this company or that Company Filing chapter 11 and that is not good its yep, time is of the essence, and opportunity is now. As many argue, jim were going to watch 2549. Thats your First Circuit breaker. Well get to bob pisani. Carl, going to be a busy morning. A lot of people moving around to see that open right this morning. I want to review, of course, we have been noting the s p futures have been down down 5 , and that is the standard that we use here. Up or down 5 . You lock, you can trade below below that any time, but not above it during the regular trading hours, the futures go down 7 , 13 , and 20 , as with the cash markets here a lot of people have been saying were limit down, but the etf business continues to trade. So the etf like spy you see here, has been trading all throughout the morning we went out at 274, and you can see its trading around 255. This applies down about 6. 9 its not like we dont have any idea whats going to happen. We can see what the markets are doing here because of the etf business, which provides us a very good guide. Lets review the Circuit Breakers we hit the first level one Circuit Breaker on monday. We were halted at 9 33 for 15 minutes. Thats exactly what the Circuit Breaker is designed to do. Reopened again at 9 48 or 9 49 level two would kick in at 13 that would also hot for 15 . Level three would halt the rest of the day there are time limits on this. We youre down 7 , you halt, you restart again. If it goes down to 7 , you dont halt again after that, you go down to 13 after 3 twoif25, theres no hal until close. People keep asking, why are we getting this wild action overnight . I have been saying for days what moves the market is oil, coronavirus, and fiscal stimulus over night, we had obviously good news that there seems to be agreement on the need to do something on the fiscal stimulus front. The bad news is theres no agreement on the substance, size, or timing, and its not clear if any fiscal stimulus is imminent or it will be sufficient these are questions the market is dealing with right now. We dont know, and remember, of course, congress itself may or may not be leaving town fairly soon, and that greatly complicated the situation. We have four minutes to go until opening. Back to you. Jim, you mentioned boeing earlier this morning, such an important story, and it brings to mind the jpmorgan call today. Where they go to neutral they say well reevaluate when we have a better sense of how b. A. Will get through this, and we do expect them to get through. I think thats right. Greg smith is cfo is doing remarkable things. He did draw down the revolver. Im sure some people there said hes panicked. Thats ridiculous. Hes worried about someone getting sick at the facility again, we have to stop conflating money and health. We have to take money off the table. I dont want to see a situation where companies have to cancel their dividend i understand oil its already happening, because of an illness. Because we can make it so that we get through this without that much problem boeing doing the prudent thing, but im sure the people say, wait a second, boeing, they dont have planes, they dont have customers we were taking about, because the aircrafts, all of the airplane companies, all of the aerospace companies, the whole chain is in play it is and you need to have that off the table. All im trying to do, carl, and you know, i have to be a little more exuberant that i would like to be, is make it so we dont have a series of companies who stop paying bills and therefore are chapter 11 we need a system which says if you stop paying bills the federal government will guarantee that loan. Boeing takes that revolver down because its not life or death the company is too smart, but were focused on boeing, but so we understand, the largest exporter we have without a doubt, one of our most important if not most Important Company when it comes to employees and exports you do act to do that, though, in order to make sure that youre in a position, as advantageous a position as you can be in, jim, given the volatility and whats coming at you. Lets say everybody decided i have a revolver at x, y, z bank, and they pull it thats the advice, thats what youre told to do thats every man for himself. That we have to get away from. Whoever wins the foot race to take down the money, that means theres a bank thats going to have liquidity issues. Our banks are so much better capitalized. Why not make it so thats not in question . Why not make it so the companys credit lines are guaranteed by the Federal Reserve, because then you wouldnt need to take them right this is where Jay Powell Jay Powell could step up jay should call. Jay should have a press conference and say listen, we understand theres a lot of chaos out there, but were not going to let the financial part of our country delay getting kits so everybody can be tested. Were going to make sure that you dont need to draft that credit line, but if you do it, well guarantee it and youll return it after people are back at work. And that way we take it off the table. Carl. And can lagarde make concurrent reassurances . I dont know why not. You dont want Many Companies filing bankruptcies because they have something that maybe will pass or be solved except then those companies will be in liquidation or reorganization. Thats not the way our country works. Our curreountry say its all sym go everybody gets a test kit. Its hard to get test kits now, but testing, testing, testing. In the meantime, the Federal Reserve steps up and treasury steps up and makes it so your company can still pay you. And that takes something off the table that is priceless. We have to eliminate financial crisis so we can focus on Health Crisis carl, we have the bell there. Well send it back to you. Well take comfort, guys, some of the rituals like applause at the opening bell lets do it. S p 500 at the big board today, its Interprivate Acquisition Corp a Blank Check Company celebrating its recent listing at the nasdaq. And st. Baldricks funder of Childhood Cancer grants. Circuit breakers 2560 yeah. There we go well keep an eye on that you know, guys, while we watch and wait, i mean,this idea, jim, of a national holiday. Right being declared, a week, two weeks, where you close the markets. I mean, i know this sounds crazy. Yet, there are more and more people who i think are sort of of that belief, where the government pays the payrolls and you know, u. S. Focuses on health its kind of what youre saying. And everybody just backs up, and we have and thats it markets are closed the banks can only disburse money. Sounds extraordinary jim, youre recommending communism. Geez stay focused this is about the idea that we can keep people solvent enough so that there will be and companies solvent enough so we can test everybody and get back to work. I dont know whether holiday is correct, because i think you dont want interruption. Lets say if you dont do a holiday, what do you do with dividends . Isnt the prudent advise of every board of directors, cancel the dividend is that right . A lot of people live on dividends. Its every man for himself. We dont want that. Its pull down your revolver. Do whatever you have to do to make sure your survive your fiduciary duty demands you do that. This is driven entirely by an illness, not by our banks. And not by missteps why should we why should our country be punished in so many people lose their jobs by an illness when we can guarantee for a 60day period all of these credit lines whats the matter with that . Tell me. Is it communist . Know what it is . Its responsible we have to have people go home if theyre not feeling well. We have to have people do that, but most people would say if i do that, i could get fired i wont have my paycheck how about we tide people over in this great country while we get over the sickness and win. How soon do we need Something Like that to start to come into place . Well, look, if i said now, then people would say, thats socalled panic. I do think that, you know, carl, what we want to do, we should be talking about companies and stocks im looking at the stock market and saying, is it really is this the moment two stocks last night, i said buy verizon and pfizer theres two out of 6,000 jim, you did talk about yesterday getting back to the december 18 lows on the dow, that would put you at 21792 so a couple hundred points away. Tactically, jim, how interesting is this . This is the moment when jay powell, who is a terrific guy, can come out and say, you know what, i see whats happening remember when ben bernanke went on of all things 60 minutes and talked about everything and said were not going to let this happen anymore, and the run stops before we had to nationalize the Banking System look how things are now. It turned out to be great. Maybe the run should stop. Maybe chairman powell comes out and says we have surveyed the situation. Were so in control, and we will make due the credit lines. You can stop going to the banks and beating each other to the revolvers because we dont Want Companies to go out of business because of some illness that we dont understand very well maybe we just do it until we all have kits. You know, kits do matter they do china had kits. South korea had kits understanding how many people have it, making sure theyre quarantined and we can slow and stop the spread of the virus is key. We have lost any chance of a lead that we might have had in doing that thats been pointed out by any number of our health experts, including scott gottlieb, former fda commissioner, a frequent guest here and or, carl, we get back to that, the uncertainty simply by the virtue of the fact we have no idea how quickly it will spread or whether there is really an ability to sort of slow or stop it. And the concern once again, of course, about this idea of the Health Care System trying at the very least to slow the spread of the virus so you dont overwhelm that system. Flatten the curve make it so not everybody goes to the hospital at once they can go home if they have to, and we get the tests we dont want to overwhelm by the way, the federal government should say to health care, anyone in any state, any Public Health system running out of money or needs help, were there for you. These things are extraordinary, but its going to make it so it passes you cant do it all at once because then every hospital is overrun. We want to be south korea, we do not want to be italy china is a communist dictatorship, were not going to do that. South korea, democracy they seem to do well italy got behind the curve we can still get in front of this if we have all out Manhattan Project, warlike footing. We want to make it so its not scary. We need an address from the nation last night that perhaps would have said a lot of concrete things that could be done instead of just banning travel from europe not the uk even. Just europe. Not going to criticize the president , all these leaders have to get together Congress Going on vacation, thats got to stop you know whats going to happen . There will not be an election, because too many people will be sick to vote yes, okay, absentee ballot we have to get back to business as usual and take the financial thing off the table by jay powell, i keep hearing jim, there it is. Theres the Circuit Breaker. And the bell, well wait here. Well suspend trading for 15 minutes. Oh, we have 15 minutes. See what happens after that look, im a stock guy i want to say during this 15 minutes, this is a time to take a hard look at buying cocacola. Okay, cocacola is good, they can pay the dividend, whatever, but thats not we need to have it so were not concerned that they can pay a dividend jim, you talk about not criticizing the president. The eu Statement Last night, the eu disapproved of the decision that was taken unilaterally and without consultation the coronavirus is a global crisis, and it requires cooperation rather than unilateral action. How much im just reluctant how much are you watching the dynamics china is sending aid to italy. Were telling the eu they cant come in. People say that will have implications for you mentioned boeing, 5g, huawei down the road i just didnt want to throw acetylene on a camp fire im trying to be less critical and more constructive because i wish we could set a tone for washington look, im nobody, im a tv guy im 65 years old i want to be able to stay healthy like everybody else, but i have been around for a long time and i see things that would indicate we are making it so companies are able to pay bills and other bills are being able to be paid by other companies. Can i say the President Trump did this or that in a speech im just kind of in that mode where if we all get together, we can be like everybody except for one senator who voted against fighting world war ii after pearl harbor i dont want to do that. Its funny, being back in this building where i spent so many years, 1998, the crisis there. We dealt with, longterm capital going under. You had the fed stepping in. The dotcom bubble bursting right fairly painful, although quite orderly, and then of course, the financial crisis as well we do get through these things, jim. We do, we do. Absolutely i would like to do it not in chapter 11 here we are, years later, after 11 strong years or relatively strong. People will obviously complain about economic growth. Lets say john russell, lord john russell, irish potato famine strategy, listen, its all about charity. Queen victoria writes a check for a couple million and we all move on and one quarter of people in ireland die even though theyre exporting beef to england. We do not want to do this. I do have to take this call. One moment go ahead and do that. Jim cramer take off your mic. Yeah, carl, jim had to step away an important call he wants to take that could be helpful yeah. I mean, on a microlevel, david, a lot of the things we have been talking about sort of as notions are playing out in very specific terms. Take twitter today before they had been encouraging their workers around the world to work from home. Today, its a mandate. They do not they are not letting employees come into the office thats on global operations. I saw a flash headline on jpmorgan, the same thing in new york city. So you know, whether its crossborder travel, splitting their teams. Were one good example of that, david, or now mandating theres work from home on a business front, corporates have really taken this and led with it. They have, and they have been for weeks now. We have been noting that, the likes of google, for example, which decided to tell its north American Employees a few days ago to think about not coming to work, over 100,000 of them, carl by the way, if youre in one of these industries that is particularly having a rough go of it, of course, the airlines or a company that is face front to the consumer, youre a ceo, youre dealing with your concerns about your business at the same time youre also trying to protect your employees and make decisions, frankly, that you have never really had to deal with completely so there are any number of things coming at you right now that are not insignificant in terms of how you position your business, carl but we have seen the lead come from Corporate America here. I think theres no doubt about that a lack of leadership from the federal government i think is fair to point out, has been the case here i think thats about to change, david. Okay. That would be helpful. Yeah, i do believe theyll enact some of the ideas i just talked about earlier i think they will perhaps consider the idea that the federal government does not need to be paid during this period. So therefore the people, the working people get paid and are protected. I think theyre debating the notion about whether they should have a trust fund, also debating the notion right now about whether the Federal Reserve should be able to guarantee credit lines the Treasury Trust Fund would indeed perhaps take advantage of the lower rates. It would make it so people feel that their credit lines would be backed up. I believe that these that some of these plans that i mentioned are being debated right now. I would feel better you know, i think what the markets would ask for is clarity. Youre going to get clarity because you dont want a series of announcements that then become uncertain as to whether theyre true or not or whether theyre going to happen. Right some of the announcements last night from the president that actually had to be walked back because they werent complete if and when we hear from our financial leadership, one would hope that it is a clear plan that outlines exactly what theyre going to do and theres no doubt its going to happen. There is no doubt, and i think you cant just convene everyone at once, but theyre convening right now to try to figure out no democrat, no republican, just leadership no need to criticize, once again. No need to criticize the idea of when you criticize fdr in particular moments, you look historically like a damn fool some of these plans i have would make it so theres a little les pressure on the system will be adopted or at least, if we can continue to if i can persuade them extraordinary if in fact any of those things were to happen theyre debating right now. Anything we have seen now, we have seen during the financial crisis, i mean, carl, you can remember every day, we would be here. There would be another plan. There would be Something Else that went into effect. True. Were trying to avoid that all of those Different Things which eventually did stabilize the system i can remember sitting over there in that corner the night le lehman went out. Secretary mununuchin has see it remember, every company and individual owes the federal government at all times. Why does the federal government need to take that money in right now . This is not about a payroll tax. Because people who dont have jobs dont have to worry about that its preserving capital of corporations and individuals the government has to ability to say, you know what, were going to waive those right now treasury secretary can absolutely guarantee 500 billion fund and the Federal Reserve can say all credit lines should be backed up so dont take them down carl, over to you it would be good to avoid the drama we had over t. A. R. P. And cash for clunkers. Those three issues are being debat debated. I have confidence they can talk about them in a civil and sophisticated way to reach some sort of conclusion to save the stock market lets hope so, jim. We appreciate your leadership on that well see what headlines come as a result just an old guy who has seen too much lets get to bob pisani and see what the floor looks like. Of course, everyone preparing for the reopen, which will happen at 9 50 a. M were here with stacey cunningham, who runs the new york stock exchange. Im tempted to say we have to stop meeting like this we did this on monday when we had our first trading halt in a long time. Whats going on right now, what can weexpect when we reopen . Just like monday, were giving the market 15 minutes to process the down movement. Well pause for 15 minutes and then well reopen stocks its working as its designed to function, so that the market can absorb what news was out overnight, how investors are reacting so they can make decisions and everyone gets a chance to see whats happening everyone was commenting about when the market reopened on monday, it did what it was supposed to do it gathered liquidity. When we reopened, the vix was down more, there was a little bit of a buying rush, no idea if that will happen this time, but it accomplished what it was supposed to do it worked as designed it gives an opportunity for trading to come back to a centralized place, reopen, and see where we go from there traders behind us running around, trying to see what the opening indications are. Will this be a quasimanual process or an electronic, essentially. Whats going to happen behind is its a combination. The market model here allows for human judgment to open stocks. And thats a critical part of the time of day. So we apply a lot of human judgment during that period. If the stock is opening in line, it can happen in a fully electronic way when the stock is dislocated, there are more stocks we want to apply that human judgment because they open with less volatility we heard last night the Chicago Mercantile Exchange was closing its Trading Floor. Thats a very small part of their overall business obviously, they can operate electronically, but so can the new york stock exchange. We have said for a long time, the nyc has business contingency plans in place for decades in event the flor can open for snow storms or floods or other situations can you describe the nycs business contingency plans theres a spectrum of plans we could roll out at any point in time. So we have already taken some steps to limit exposure in the building, just by separating people and separating communities. So that the people on the Trading Floor arent interacting with people on other floors. We dont have guests coming on the floor. Those are just precautions so we can limit the likelihood there is an outbreak if there is an outbreak. We can clean the floor and reopen pretty quickly as well. Thats something, were not planning to close the floor at this time, but as you mentioned, we could, and we could trade electronically in the event the floor does close for any period of time, they can close electronically . Yes, and they can open their stocks electronically as well. We have those plans. Were not planning to use them at this point. Thank you appreciate that. Were going to reopen in just about three and a half minutes ill be here back to you. Thank you jrb jim, really quick, kevin mccarthy, minority leader in the house, just tweeting, the legislation that pelosi introduced at 11 00 last night, written by her staff and her staff alone and plans to vote on just 12 hours later is not only completely partisan, it is unworkable. Ill explain why at my presser at 10 00 a. M. Eastern. Youre not looking to the hill for answers, are you frankly, thats unacceptable on both sides. I just think that its time. Its time to have those words. Its time to say look, we know that we dont like each other, but lets get together look, im not asking for president reagan and tip oneal. That was not a bad time to get things together. This is unfortunately a very different time meaning it was part zn baisan b then were financially the strongest country in the world we cannot do what we have to do with kits and safety if its in question that were not. How can we make it so any bank right now is in trouble when we have a Federal Reserve that can say, you know, all those credit lines, were going to guarantee them we have a federal government that does not need the money right now. Not a pay roll tax cut, but listen, you dont have to pay right now. Were going to let this go and solve and conquer the illness like a Manhattan Project i know the president feels that way. And by the way, david, were in a situation where we can come out of this stronger than every nation on earth if we just take the Financial Issues off the table. And so its your expectation when we open for trading again in roughly two minutes the market is going to take into account the possibility some of the things you mentioned at the open of our show that you feel need to happen will actually come to pass i think thats an advisement. You do . Thats a positive potentially. I think there are people at the highest level who are concerned that we have to address these issues now, would i like to have the Federal Reserve just come out like in 1987, which by the way, very similar situation there was nothing wrong. We didnt have a recession the Federal Reserve came out and said dont worry about liquidity. And after our first day of trading after 9 11 as well total chaos some people say it was only 1100 jim stewarts book, hthis is muh bigger than the stock market, but if the Federal Reserve came out right now, 9 49. We have about 11 minutes, just say listen, do not worry about the liquidity of the system. Weve got your back. Then the president says, we dont need to take in all the money, and the treasury secretary says the same, they take 500 billion in a bond issue, emergency bond. Absolutely nothing make sure that bills are going to get paid even if you dont pay the federal government so people can keep that money, and then we can focus on kits. We can focus on health we can focus on the science of it and we will not worry we can also focus on everybody doing the behaviors you need to to slow or stop the spread of the virus. We have heard so many instances of people doing the wrong thing, but theyre worried about being paid when a major nba athletes decides a marriajor nba athletee to be the distributor of the coronavirus, i dont think thats an appropriate way to do business were reopening we are, in about 15 seconds well see what happens here. 2549 on the s p. Not too far as we said a moment ago from the 2018 lows and this is now officially the worst week since 2008. Worst week since 2008 across the board. Because of an illness, carl because of an illness. Not because we did not do or did not do our we are a hard working country with unbelievable unemployment. Its so strong its an illness thats going to take down the s p 500. We cant let that happen even if its just our job. Theres the bell, guys. Well see where we end up. The sthapback on that, though, is we went into it running hot running leveraged. Deep in debt assuming that rates would stay low forever. Well, we could punish thats fair we could punish but wed be punishing the working people of the country. They didnt do anything. We learned in 2007 and 2009 theres two ways to handle it. The let them eat cake way and the way we unite as a country. We raise money and came back strong i think its not its an 87 meets 2007like. And leadership can make it so were not saying so and so company because of an illness is closing. Right and that is what the market is now grappling with, carl, as we did at least bounce off the lows so far in the s p. Well see where we end up. So much well, a lack of information in some ways coming. Dealing with you know, thats been the case now for weeks. At the same time, some of the things jim is mentioning if they were to come to pass would conceivably be seen as real positives, taking pressure off the system again, i mean, our financial system, the banks are in so much better condition theres nothing like everyone be. In terms of research and reserves and in terms of everything so was the i would like to see the numbers of a available credit not drawn. I would like to know that number if everybody takes their money out, we dont want that. We dont want any company to not be solvent lets say its jimmy chill i like cocacola verizon im looking at and i think burke is good. What kind of world is that we dont want to do that thats the advice i can give say listen, were stay with the program. But i think that theres things that can be done by the federal government that cant be done by industry because no company is big enough now were obviously extending our losses but theyre extending losses because of an illness. Yeah. A couple things. Mcconnell isnow on the tape. Says he sees a smaller first he says calls House Democrats coronavirus bill, quote, ideological wish list. Mcconnell also seeks smaller noncontroversial Coronavirus Response legislation the other headline, guys, politico is saying that cud lkuw suggested the president could sign the stafford act today. It would free up funds to help support the response on the virus. Again, they need to be bigger i wish theyd done that about a month ago. Its too late for that. Its not too late for something very big can we get chairman powell on . I mean, its time. I dont know what hes doing, but its time. And this notion, again, of the democrats or the republicans, i think its were all americans. Why dont we stick together and figure out how to make sure the s p doesnt have to draw down the credit lines carl, youre right was the stock market in euphoria mode yes. Do working people lose their job because theyre sick because of that that would be unfortunate. I mean, im just trying to think bigger than buying zoom here which makes sense because we have to telecommute. Theres two positive narratives one is the headlines from the chinese who say they see this crisis being over by june or in june the other is still the remote admittedly remote possibility that theres a day taunt between the russians and saudis infor l well have virtual opec talks. The one two punch, and maybe you can find some traction i dont think thats wrong. I mean, remember, we can go down the path of occidental which i think is an uncertain path we can make it we dont want our shale industry to be prevented. I think we should not be relying on the kindness of those two strangers up to the present and be able to say were Energy Independent and we will preserve that independent even if it means we have to put a tariff that raises the price of oil in our country. Its a great industry. Its put a lot of people to work its created emergency indpe independence i dont think the chinese are trying to figure out how to lend a hand to us if you want to know who is not trying to help us i dont want the chinese to come out ahead of us because of an illness. Its just not right. Right which, again, means youre demanding and hoping the government and the Federal Reserve respond accordingly. Yai cant demand im im a tv guy, but i can suggest it suggestions dont cost anything. They go to work and the effect is we need people to make it so we can beat this thing we flatten the curve which we know worked in the spanish flu where we did it the st. Louis way of not congregating. We have to do these things we have to think big we have to think big people in washington have to think bigger i think sometimes if they were out there with the working people, they would realize theres worry about my job so i got to keep working even though i have a temperature of 102 and a dry cough. And by the way, can i say the solution is not at this point hand washing no. Although, its helpful its a part its key we all have to hand wash dont discourage that no. Not at all we want hand washing at work we dont want to lose our job. Of course ive washed my hands 17 times today and you should continue to. I wore gloves to work someone tried to shake my hand today, i had the glove on. I was like talk to my glove. I just dont look, we need personal hygiene its very important. But we need the nation to come together and the leaders to be able to come together and the Federal Reserve to tell us liquidity is not a problem should Carnival Cruise be end, end as an entity . I know they have a lot of workers. I dont think anyone wants it to end. We have more casualties of companies that were doing something that were pretty good for the economy even three weeks ago. I want it to be so were not looking at the demise of the s p 500. I think our viewers understand where youre coming from and most of them agree. How about mad money tonight . I have no idea. We will address every single im scrapping the whole show i have a feeling were going to be seeing you a few times between now and mad money. Well focus on how the s p 500 should not come and meet its demise because of something that is an llness not because of the american men and women work force did anything wrong well have guests. Well do the usual, but its an unusual time and i dont want to be alarmist. But its an unusual time, and we dont want people in the government to ignore whats happening in our markets and realize get together, no rancor, its not worth it. All right thats why our eyes are peeled on the tape once again well see you tonight. Lets get to the bond pits Rick Santelli for the next couple of days at the cme group. Yeah. Its a somber day on this Trading Floor. The options remain on this Trading Floor. We know the future is part of the open outcry system moved to the computer several plus years ago but theres a boat load of volume through the shortend contracts like the euro dollars, not the currency but the short rate i think the floors and the options and translating to computers, these are issues that really are important, not to mention the camaraderie and the intensity of how all the information gets sint thesint thesed its been lots of conversations regarding the cash markets and how thin or not thin i understand and crews are skeletal people at desks, cramer brought it up earlier, but i think its impressive considering the moves especially in the longend yesterday. Look at a twoday of twos and were down 11 basis points but even at 42 basis points were double what the lows were at 24 intraday on monday look at a twoday of tens. Were now down over 20 basis points in tens because the longend remember, our lowest close is 54. Lowest intraday trade is 51. Here we sit at 66. The long bond, the 30year made it up to 138, 139 yesterday. If you look at whats going on in bunds, theyre up a basis points they turned up a bit now, many expected that Christine Lagarde was going to be more aggressiaggressive i didnt going negative isnt going to solve thing and even though minus 71, 72 is big, its not the most negative. It actually turned around a bit. Finally their currency, choppy, volatile, wild holding onto some of its recent gains. If you look at a yeartodate of the dollar index, weektodate, im sorry. Weve popped up dramatically between monday and today 97. 07. Being over 97 when we were under 95 briefly on an intraday basis. The dollar index the winner in terms of intensity 30year bond is something to Pay Attention to today rick, dont go too far away welcome back to squawk on the street. Faber is with us where were going to continue to bring you nonstop coverage from separate locations motivated by an abundance of caution due to the coronavirus. Its another brutal day for stocks Circuit Breakers halted trade for about 15 minutes the dow dipping into bear market territory. More than 20 off the record closing high which was just a month ago today following quadruple digit moves in every trading day this week. Bob, im seeing a bunch of yellow tags. And theres stocks that havent opened if you pan youll see a lot of people here moving around the lot. Bids, offers coming in from the Floor Community to get the stocks open. Were well off the lows. This is somewhat what happened on monday. Right after we opened we halted between 9 35 and 9 50 today. The low was 2508 right after we reopened after closing for 15 minutes. We bounced since then off the lows is vix down. Similar to what happened on monday as far as the market, this is part of that whole global takedown i keep arguing. Theres not much solace in the fact that were all for lows industrials, tech, financials, energy, cyclical groups mostly down here in the 7 , 8 range. It doesnt matter because its Consumer Staples the more defensive names health care. Also lets not quibble about a point or two the whole market is being taken down ive mentioned three things moved the market we saw this. Oil, coronavirus, headlines, and specific headlines on what is going on on any stimulus program. In the absence of any positive news, and we didnt really have any in the last 24 hours, the market tends to drift lower. And you can see that happening whats going on overnight . On fiscal stimulus we had good and bad news the good news is everybody seems to be coalescing on the idea that we need to have some kind of fiscal stimulus the bad news with the market in a advertisy is theres no agreement on the content or size of the timing and its not clear if anything is imminent or sufficient and obviously the market is saying it wants some kind of idea of whats going on with this thats not happening were off the lows right now and have reopened. Thats certainly a good sign back to you. Bob, i will take it. Thank you. Bob on the floor there lets get to our senior economics reporter, steve liesman. He has been monitoring the ecbs news conference. After the Rate Decision from that body, steve david, thanks very much Christine Lagarde calling the coronavirus a major shock to the european economy and announcing a 3point plan to deal with it not including cutting Interest Rates i believe we have sound from what was said earlier today. We decided on a comprehensive package of Monetary Policy measures together with the stimulus already in place, these measures will support liquidity and funding conditions for households, businesses, and banks, and will help to preserve the smooth provision of credit to the real economy. So lets look at what it is first thing she kept rates unchanged. They added to the longterm refinancing operations they provided more favorable terms for a third round of targeted longterm refinancing operations thats going to happen next year and they added another 120 billion euro of new asset purchases or quantitative easing like other Monetary Policy officials, she called for a very strong fiscal response and took several questions on why they didnt go negative didnt answer the question said if we need to cut rates we will when asked about why she didnt cut further into negative which was expected by many in the market, she said we believe we have the most focussed set of tools to address the kind of risk were facing under the current circumstances. Im getting the feeling that lagarde is not a big fan of negative rates this. We dont know that, but certainly this particular response suggests shed like to avoid going further into negative territory in these circumstances. Thank you for that. Listen, i dont mean to throw another thing at you but obviously the last hour we talked a lot about what response we may see from our policy makers and the Federal Reserve is there anything youre hearing from your reporting and or your expectation in terms of what we might hear today if anything from the fed not from my reporting my suspicion is that well, first, it was maybe a little overlooked yesterday i guess the market overlooked it the new york fed came in yesterday, david, with i dont know, a boat load seems like an understatement to me by my count, it was 175 billion of extra liquidity into the system i think they want to see how that helps or does not the functioning of the bond market ill do reporting on that later this morning we reported as early as monday that there was some big gaps in the bid ask spread that was not usual for the treasury market with the huge declines in yields the idea of the Federal Reserve coming in and taking some of the risks in the economy, that is possible i heard you and jim cramer talking about that earlier however, that would have to be done with the approval and in concert with the Treasury Department they amended the emergency act emergency clause in the Federal Reserve act that required the fed to take those sort of actions only with treasury approval. So well see if that happens it is possible probably likely that powell is talking about some kind, but ive not heard anything yet at this point steve, all week long people have been trying to postulate positive narrative what if powell came out and even academically supported what was talked about last friday does that seem to you in the realm of the possible . I dont think so, carl. What rosenbrim was talking about wasfirst you have to get to zero, and then with the key formulation, then you have to have a recession and then the fed should think about coming into buy additional assets, in other words, other than stocks and numbers, mortgage bonds. That requires a change in the Federal Reserve act. Certainly would require approval of congress and it would only be done to avoid negative rates i think the fed is far from that at this point. There are other administrative measures one thing they did in europe that i havent seen in the states is to lower certain Liquidity Ratios for the banks that requires them to hold less capital, and that is something we might see in the states theres stuff they can do in the discount window. Theres additional quantitative easing i would not hold my breath for the fed to buy stocks. I heard what jimmy was saying about the idea of guaranteeing longterm letters of credit but i think the fed is far from that i would look first, guys, for the Federal Reserve to begin dusting off some of the financial crisis era programs that guarantee liquidity from money markets and commercial paper before it got to any of that stuff i think what we see is powell wants to operate in steps and not necessarily you know, shoot several bazookas at once thank you, steve. Our next step called for a additional 50 point rate cut we are joined this morning by a professor. Its good to have you back good morning. All right so s p, 2538 is going to take you back to its not quite as bad as that christmas of 2018 where we bottomed out right around 2400. How do you characterize this weeks selloff are we in an orderly fashion resetting what we think revenue rates might be i mean, there are obviously were in a dark tunnel here. I think theres light at the end of that tunnel i think fear is obviously dominating fear is a very psychological response that builds on itself i think we should listen to what jim cramer says. I think we need bold measures. Maybe a threemonth tax holiday. Not just payroll taxes but tax holiday. 2000 tax credit for individuals. A fund that would ensure the credit lines so that no Financial Institution feels no theyre all drawing on my lines. Do i have that credit . That the Federal Reserve can say well be able to supply that credit i think some big move by the government would be moat welcome. It is disspiriting to see partisan wrangling on this issue. I think that that is factor number one factor number two, going to the disease itself we have experts like fauci say that its 1 or less thats ten times more than the seasonal flu, but far less than the pandemics that have scared so many of us when we look at the past sure. And i think that this is important. And, again, china. If you want the light at the end of the tunnel, i mean, it is we look at china, where now theyre in Single Digits in terms of looking there, and thats where it all started and where it blew up at the beginning. A lot of the macro desks are trying to do apples to apples. Your point is well made. On the cramer suggestion that she touched on, that treasury backstop, do you believe that should we get it, if we were to get it, it would, in fact, take funding concerns mostly off the table and you could focus on Public Health measures then . Yeah. Absolutely we dont again, the idea is were assuring the Financial Health to keep businesses going. Now, how many of these if we have 60 days, 90 days, 120 days of cessation, how many businesses, you know, would need to go on the line of credit . If that is assured, they will survive when confidence gets back and the economy gets back i think that is really important, and its really important that once you take those fears off the table, that we will make sure that American Business still is going to be viable when we get this under control. Then we can all concentrate on the Health Measures that we all need to engage in now. And i think that one two isnt so important without, obviously, being able to handicap when anything of the things or when they come about, but the market fills it in the form of lower prices. It discounts a dire scenario were starting from a relati relatively optimistic sentiment. Where would you guess we are in that process of kind of overdiscounting the most probable outcome here . Well, you know, what are we down now 25 . Yeah. Just about could we go down 40 . My feeling is its still nowhere near as bad, the financial crisis were, basically our institutions of lending were all threatened, the viability. People worried about their Bank Accounts remember, they had to come in to ensure money market mutual funds which is 5 trillion because everyone was going to run on those. Thank god we are not there yet we also had tremendous overbuilding in the real estate so we had overhang of capital. Were not there yet. All those features and that was at 50 decline that was the worst since the Great Depression we are not at that at that level. So realistically, we should be able to bounce back faster from this will be a recession and a sharp one. But theoretically because the Financial Institutions are intact and functioning, because we dont have the overhang of bad capital investments, overbuilding that made the Housing Starts went down 90 i mean, youre not facing anything like that, that should assure us that this decline that were seeing now is going to be relieved in the future so when you hear when you hear concerns on that point, all right, we have a virus problem. Right . We have a demand shock and a supply shock we have a price war which did not help measures. But you are convinced that those two things do not lead us to a third bucket of credit risk where the pipes are endangered with oil at 31 i dont i mean, that mark that market, theres liquidation. Theyre going to stop a number of those we had that scare in 2016. Actually, oil was even a little bit lower then now, theres some reasons why this is more serious than that yeah, theres going to be that industry, theres going to be liquidation in. And theyre actually and in a way, that wont be the worst in the world, i think there was overbuilding on the basis of what the expectation for oil is. Im not for really bailing those out, because i dont think theyre systemic to the health of the economy i think you need to i mean, thats a Macro Economic force on oil that needs to be corrected were talking about good businesses that are not going to get revenue for three months, four months, whatever time it is, because of the virus and those are the ones that we must assure get the credit to survive. Yes, theyre going to take a profit hit i dont mean replacing their profits. Thats part of risk. Thats capital theyre going to take a profit risk but those are the ones we have to make sure that its because of the virus alone that their kpis teexistence and the employ tens of millions of people is not going to be threatened whatever liquidation happens in the oil industry, ill let that play it out. I think that that is not something that we should necessarily subsidize or prevent. Weve been talking mostly here about potential fiscal responses and other policies now, obviously in a week we do have a Federal Reserve meeting universal expectations of further rate cuts. What else do you think we would need to hear or the market would prefer to hear and also can the market wait a week well, yeah. I mean, concern again, cash is 110 and the tenyear is 40 make it as cheap whatever loans businesses have, lets make them now as cheap as possible that will help their cash flow i know its at the margin, but that should happen i mean, if we have to wait until next wednesday, you know, i would prefer it now, but thats it now, in order to get ring fence credit now because of the daud frank act, it has to be done in con vun conjunction with the treasury as a joint action that they will wring fence credits to industry and other sources. You know, again, we are blessed with the fact that we have basically zero Interest Rates and if the fed lowers and we make sure the Treasury Bill rates are near zero, funding whatever we need by the federal government will not cost us any interest expense, thats another gain by lowering that rate down. So we powell has limited options now. We leverage i mean, it has maximum liquidity. Health care provide funds and cash to any institution. Remember the fear in 2009. Oh, my god, are the wanbanks go to survive is my money going to survive that is thank god at this point not on the table that was a much deeper fear where people are not in fear for their bank account and their funds. Theyre feared what about my income my paycheck in the next three months. Yeah. Especially in a consumer economy like ours. Professor, we are lucky to have you today. Important day. Thanks again thank you thank you now for a check on the health of our Trading Systems after that Circuit Breaker was triggered earlier today. We are joined by a Capital Markets analyst. Rich, great to talk to you obviously rich, weve been turning over enormous volumes across the markets through the exchanges. Circuit breaker invoked twice. Seems like it perhaps did what it was supposed to do. Whats your assessment in general of how the infrastructure is holding up were seeing some pockets of ill liquidity. Im not sure if thats about the plumbing or if its about risk diversion and other dynamics yeah. I think you nailed it. Youre exactly right theres a difference between plumbing and liquidity and the plumbing which just means that how the exchange is up and running and offering, can you trade i wouldnt say easily, but are you capable of trading . And the answer has been yes. Im aware of very, very few outages. The second part of that is liquidity. And you know, we are starting to hear about some issues and illiquidive. But my analogy is sure you can go on amazon and is the internet working . Can you get to amazon yes. But are the items you want to buy available . They may or may not be, and were not at that point in the markets. Theyre working properly liquidity is starting. Were getting a lot of questions on liquidity put it that way. I imagine so. Yeah, just to be somewhat specific about it, you saw things like very large Bond Exchange traded funds trading in a disconnected way from the underlying value of treasuries and things like that i mean, is that something where normally there should be a tight way where they run smoothly. Are any of the players you cover involved in that you cover the likes of vertu and other quasi Market Makers . How is it working out to liquefy those types of markets great question. I do cover Market Makers in some of the instruments weve checked with them. So far theyre saying theyre seeing very little issues right now. Theres pockets of concern but it isnt a widespread problem, but it sees Market Makers and to get more technical, they create and redeem the etfs and they have to be able to trade the underlying very slim instances of becoming more difficult to trade. Again, it isnt widespread at this point, but as speakers on your program earlier today have noted, thats something to watch. Sure. Rich, in terms of policy response, i wonder weve been watching the back and forth on the hill all morning heres mccarthy now. Can resolve issues on democrats, coronavirus build within 24 to 48 hours there is that. Well see if it lends us support. Can you ladder the areas from which the market craves response first . Is it from the fed is it from the hill . Would it be more executive action something that could happen with immediate effect yeah. I would say the market is looking for any sort of boundaries as your previous speaker said, any sort of ring fencing in the problem at least i believe and again this is sort of beyond my scope as an analyst that covers exchanges, but theyre looking to put some boundaries and a combination of any of the potential anything that can ring and the solution is likely a combination of Different Things whether its legislation, whether its taxes, quantitative easing issues related to oil pricing, et cetera. But at least me personally, i think that theres a response thats going to be should be multifaceted and rich, i know your purview extends to the retail online brokers. What are the trends there . Obviously high volumes, but in the way of customer flows, and any stresses on those systems, have you picked up anything . Yeah. Well, certainly there has been more stresses on the retail brokers, and i think your program has noted some of the brokers that have had significant outages. But for the most part, the w bigger ones have the the industry went to zero commissions late last year its easier to trade certainly the panic doesnt stop in institutions or, in fact, it probably arises from retail first. So we are seeing big activity, and you know, we have to acknowledge that theres been some issues with some of the platforms which, again, your program has already highlighted. Yeah. All right. Well, well keep watching. Thanks for your time this morning. Thank you. We want to get to the news on mcconnell who has lit up the wires this morning thats right. Well, now both Republican Leadership in the house and the senate have announced their opposition to the bill that was introduced by House Democrats last night aimed at providing targeted relief to workers impacted by this outbreak. The top gop lawmaker in the house, mccarthy just said he believes the bill comes up short, meanwhile mcconnell has said that he believes this bill is disappointing and that hes waiting on House Democrats to get serious. The speaker and House Democrats instead, chose to produce an ideological wish list that was not tailored closely to the circumstances. One is reminded to the famous comment from president obamas first chief of staff, you never want a serious crisis to go to waste. Mcconnell said instead Senate Republicans will offer up smaller even more targeted packages to deal with this outbreak mccarthy suggested a similar path in the house. So we will see where this leaves us the house had been scheduled to vote on this bill today this afternoon. For now the house stands in recess well see if the bill gets a vote and if they can reach some sort of deal before they go on recess and a few moments ago mccarthy said the agreement could be reached in his view within 24 to 48 hours. When youre given a timeline, does that mean theres a path somehow . I believe that what he said was that an agreement could be reached on smaller provisions. So they sort of want to take this piecemeal as opposed to one larger package what the pieces are, how they come up with the legislation, how long would it take them to write the legislation . Those are all open questions, and remember that not only would the house have to pass it but also the senate as well. Well have to see how the negotiations play out throughout the day. Thank you markets continuing as well to plunge as coronavirus concerns grow. Over 1300 cases are now confirmed within the United States there are close to 40 fatalities for more on how the medical community is dealing with this Global Pandemic, it was called that yesterday by the World Health Organization. We are joined by the Denver Health medical officer doctor, thank you for being with us what is your main concern as you sit there in colorado . Hello well, we started seeing Community Transmission here in colorado just over the recent days and my concern is the volume of cases that we are likely to see in the coming days this is not leveling off, and this is here to stay and what are you doing to prepare for it there has been an overall sense that if we can slow the spread of the virus, we can prevent our Health Care System from suffering under too many people showing up, frankly, at the hospital does that continue to be a concern . Well, it has triggered us to activate Different Levels of our response at the hospital side and in our clinics we are screening everybody who does enter our facilities. All patients, visitors, and staff to make sure were not importing excess cases and then our control measures really will be focussed on preventing transmission in our Health Care Settings to our Health Care Workers and to our most vulnerable populations in denver but are you ready if there was a flood of cases well, weve been preparing for years, and we are ready for to surge. The number that that takes on, were all going to have to Work Together as a Health Care Community and surge where people can help each other out. Do you have enough test kits and do you have enough masks and other things that your Health Care Workers need to conduct daily business we have dipped into our stockpile of masks we are concerned about our supply chain we are taking measures to utilize our equipment to prioritize those but we will need more supplies we have test kits but the tun around time is still slow. What does that mean how long is the turn around time if i walked in with a fever, thinking i likely had coronavirus, how long would it be until i knew . Well, its looking like between 24 and 48 hours. But ideally we would like to know sooner and the sooner we know, the sooner we can implement control measures on known positives. Right, and what happens to the people that its 24 to 48 hours. Are they free to go home are they spreading the virus conceivably without being aware of it . We hope not our directive is if they come in with symptoms that are consistent with coronavirus, we will put them into isolation just as if they were a positive case we will obtain our test. And we will send them home with quarantine directive until we know the results and what is your expectation for whats going to happen over the next few weeks, doctor were going to see a surge in the number of cases. Were going to see a lot of people getting tested. Were going to see a lot more positive cases, and we need to protect our most vulnerable and so we dont see the death rate that we have seen in other places of the world. All right well, well leave it there, but certainly appreciate you taking time thank you, dr. Price thank you meantime the nba as you know has suspended the season until further notice after a player tested positive for the coronavirus. We have the latest from hq good morning good morning. After utah jazz player rudy gobert tested positive for the virus last night, the nba deciding to suspend the season it puts at risk 9 billion in annual league revenue. Nba players alone earn almost 4 billion from their salaries. And the tv deal is worth over 2. 5 billion a year. Stars tweeting with both lebron james and steph curry describing their shock. One said he hoped other players were saving their money. Team owners and executives pressured the league for big picture questions. Like what to do with payments and salaries, will there be refunds for ticketholders, sponsors mark cuban last night in visible shock when he saw the news this morning he said games might be played into august rather than being cancelled this is a rapid shift from earlier this week when players including gobert made fun of the growing safety precautions other leagues are approaching their seasons differently. The players Golf Championship started this morning a Formula One Team withdrawing after one of the team members tested positive putting the entire race in doubt march madness is still to be played as of now, just without fans the nhl has cancelled Team Activities and practices for today and will have a fuller update to come this afternoon. To contrast that, over in china, the Chinese Basketball Association is restarting their league after having a tenweek break and demanding that players like american players come back to china to get ready to play. Back to you. Erik, thank you time now for a news update thank you good morning, everyone heres whats happening at this hour the president s of the European Commission and the European Council are condemning President Trumps ban on travel for much of europe saying the move was taken without consultation they say the European Union is taking strong action to limit the spread of the virus. Australian Prime Minister has announced an 11 billion stimulus package aimed at helping the countrys economy cope with the impact of the coronavirus outbreak that package includes a 490 onetime payment for more than 6 Million People the olympic flame for the tokyo 2020 olympics has been lit the ceremony was held in ancient olympia. 12,000 spectators were expected to be attending. However, only 100 accredited guests were allowed to attend due to the virus pandemic. Tokyos government says cancelling the summer Olympic Games is impossible even as numerous professional sports leagues have cancelled or postponed games around the world. Olympic organizers continue to say the games will open as scheduled on july 24th you are up to date thats the news update this hour back to you guys all right sue, thank you stocks are plunging this morning as the dow has posted in the past few days two of the worst performances ever. Joining us to talk about the Central Banks response is the former reserve bank of india governor, profess of finance at the university of Chicago Booth School of business its great to have you back. Good morning good morning. Im interested in your thoughts about the strength we have as an economy going into this episode which we know will be tough people have said on the positive side, banks with excess reserves, stress tested. Your point, though is we do not start with a good hand what do you mean well, we already had a weakened Global Economy because of the trade war that we had last year. And put on top of that the fact that last quarter in europe and japan was miserable. We were coming off that, and then we were hit by the coronavirus, so the problem really is at this point to get ahead of the virus, to make sure that this is a few weeks rather than a number of months. And that is where i think a number of countries, italy, and perhaps even the United States, are behind the curve so are you recommending the u. S. Adopt some of the social measures i mean, italys arguably extreme, shutting down all nonessential retail. Does that need to be replicated . We have to see. At this point some of the experts are saying that the spread is considerably more than suggested by the number of cases. That we may already have thousands rather than hundreds of cases at this point in the United States. I would pay close attention to the professionals, and see what is needed in terms of social distancing, in terms of closing down, because it seems to me that the more we get ahead of this, the shorter the impact is going to be on the economy, the better we will have resources to manage the most serious cases, and the quicker the recovery will be. In terms of other types of policy response to try and mitigate the impact on the economy and financial markets, on one hand you hear folks say that Central Banks have largely expended whatever ammunition they might have had, if thats the right analogy. On the other hand, we presumably have lessons from the dealing with the Global Financial crisis what do you think is the appropriate response right now in terms of monetary authorities . Well, i think the first sort of policy response should be with the fiscal authorities which is sending money to the most vulnerable. I think there are many people who dont have jobs that, theyre not on payrolls. Theyre on the gig economy they dont have any money coming in the first task is to make sure that they have enough to pay for food, to pay the bills that are coming in. The second is to make sure that vulnerable firms, small and Medium Enterprises that have liquidity problems as we see it shut down over the next few weeks have the ability to sustain through the period, and dont actually go bust and have to lay off a whole number of people so targeted measures at the facilitating lending for example, more sba guaranteed loans. These might be effective at this point in preventing a wider consequence of the coronavirus related measures and then after that, you can think of broader fiscal stimulus or monetary stimulus but i would say start with the most vulnerable at this point. Theyre also the people who need to spend its also morally right. So maybe a check to families, maybe to all families if we cant target well, of 1,000 per adult or per family plus maybe 400 per child the key is making sure the 1,000 doesnt go immediately to the cost of a test which is something obviously the policy makers are working on, too i want to ask you about tariff rollbacks. Its something thats been talked about because it would have an immediate effect the president can do it by himself. How much benefit would there be in it since were really talking about household behavior now it would well, i think household behavior in the short term is important. Longer run, we also need businesses to have more confidence i think a tariff rollback would be a confidence builder across the world. It wont resuscitate cross Border Investment which is plagued by extreme degrees of uncertainty about trade going forward, but it will help restore some Business Confidence in some sense that when this virus is behind us, the world will look a lot better i think this is a measure that the president can sign quite quickly. He can work with the chinese and both sides can roll back that would be a confidence booster. All right some say its a slim likelihood, but you never know well see what the situation puts us in thank you so much. Well see you soon youre most welcome all right, now lets bring in john rogers, ceo at aerial investments on the cnbc newsline good morning good morning. Youve been a Value Investor for quite a number of decades. Seen a lot of cycles what does this environment remind you of and what might be the lessons in terms of your approach as you look for i guess unduly punished Type Companies it reminds me a lot of 1987 when the market dropped 22 in one day. And, of course, it reminds me of that awful period of 08 and 09 during the financial crisis. What we did in both these periods was we were leaning in buying bargains. We always believe that john templelton was right buy when theres maximum pessimism. In terms of assessing what looks like a bargain one of the knock on effects at work is the credit cycle is now perhaps put into reverse, and the market seems to be hunting for Vulnerable Companies on the credit side of things. So how do you assess that risk in terms of the companies you would look to own and i guess on a market wide basis. Weve been evolving over the last week to ten days really making sure we are hunkered down and understanding the Balance Sheet strength of the companies were investing in so the names weve been adding to in our median Financial Services companies are the strongest that have the strongest Balance Sheets that were sure can come out stronger as we go into next year. You said media and Financial Services exactly interesting Financial Services, would that be core banking or other type of Financial Services other types of Financial Services we love to see generating companies. Kkr is our favorite name and largest position private equity is an extraordinary business but it also takes theyre in an opportunistic moment. They can take their excess cash and buy bargains and it will help the performance of their funds going forward. We really love the private Equity Companies we also think Companies Like lazard has a big restructuring business to go along with the traditional banking. We think they are both really well managed those are our two favorite Financial Services companies john, on media, i know you knew gannett well back in the day. Iwonder were going into the election cycle people were talking about election budgets going in with a head of steam. How much of it is unwound as Companies Look for ways to trim back well, weve been spending a lot of time with management teams of the various companies as recently as yesterday, talking to a couple ceos, theyre saying the advertising is really still very strong when it comes to the political advertising. Theyre seeing some weakness in traditional advertising. And so theyll probably be lower estimates in the media stocks but the cash flow from political is still very powerful you think corporates trim back on digital or legacy advertising first . I think it will be both i think it will be both. But i think that people people arent going to be home theyre going to be watching more television on the traditional Linear Television or on their phones, and i think the traditional guys will do better than people anticipate and so thats why a company like meredith that has television stations all over the country and has more than a 10 yield today is a bargain and cbs viacom we think is a bargain. People are going to want to watch television, watch the news, watch the great programs as theyre hunkered down in their homes. Obviously, john, youre go ahead. John, but i wondered, you have to look at the Balance Sheets of companies. You have to make sure youre not buying a company with leverage cash flows could be depressed. We dont know for how long but for a period of time well, we think that as weve been talking to the management teams and having great conversations with the companies weve just invested and talked about, theyre telling us they feel confident their Balance Sheets are not only strong to live with this storm, but theyre a lot stronger than we were in 08 and 09. Our view is the companies are telling us theyve made improvements to prepare for a storm. We continue to feel highly confident that these media names will do well in the Financial Services companies weve been talking about have the strength to weather the storm what are you hearing from your own investors, john what are people investing with you telling you . You getting a lot of worried calls . You know, its been modest. I was talking to melody hobsen about this yesterday she was saying its remarkable how our mutual Fund Shareholders have been hanging in there theyve been watching our turtle for over 35 years, and we always believe that patience wins and slow and steady wins the race. I think our shareholders understand that about us were hear for the long run. And just what is your premise right now in terms of trying to gauge the duration of this kind of sudden stop in business in the economy as you try to build earnings models around these companies . Well, were trying to look out past the summer. We do believe like a lot of Top Health Care as we talked to a lot of health care professionals, we think as warmer weather comes, we believe in that story that things will start to improve and of course the markets will start to head up before that time as you know, markets anticipate recoveries beforehand. So i still think sooner rather than later youll start to see positive sprouts in the market, and some green chutes starting to show up, and the companies will be able to weather the next several months but we are to your point, we are lowering our estimates substantially. But making sure the financial strength is there so that earnings power will come back late this year and into next year and anything in the i guess most directly hit parts of the economy, whether the travel stocks, or anything that really has been most directly impacted or for that Matter Energy . For us, we stay away from basic commodities. We have really no exposure to core Energy Companies in our small and mid cap core products, aerial fund and appreciation we do have some modest exposure to the cruise line industry and believe those are areas to look at and they have gotten extraordinary cheap. And were looking at hotel companies, gaming, wynn, mgm are names to look at were doing our homework now theyve been crushed but las vegas isnt going away we think the Gaming Companies will weather this. John, thank you john rogers. Great man. Speaking about being brave lets look at shares of oil prices overall they are down about 5 this is the saudis and the russians continue to go at each other. There is perhaps some hope look at Occidental Petroleum thats now an 8 billion market value, somewhere in there. The company cut the dividend earlier this week under a heavy debt load. Theres a look at wti. Higher than the lows we saw in the session thus far for oil but, of course, the question continues to be and what has been an Unexpected Development during all of this turmoil was this fight between the saudis and the russians and the russians perhaps trying to also put our shale providers in a difficult position that bubbled up less than a week ago resulting in a lot more supply for a market that already was suffering from a demand or lack of demand give has been slowdown in economic activity. Putting pressure on so many of these companies amid smallsized but as well you saw, some of the larger ones including occidental which had an enormous debt load. Theres marathon and apache and noble. Many of these names under great pressure as people and investors look closely at their ability to withstand this current environment. With the hope, perhaps, that the saudis and russians will reach some sort of a new agreement which would in turn mean oil prices would rebound lets check in with meg and get the latest on where things stand with the coronavirus around the world. The World Health Organization calling covid19 a pandemic as the disease reached at least 118 countries. Total case numbers worldwide stand at more than 127,000 with more than 4700 dead. The w. H. O. Director saying today is a time for governments to double down on measures like aggressive testing, contact testing and isolation of cases the president announced a travel ban from europe last night the u. S. State Department Issues a heightened Global Travel advisory telling americans to reconsider travel abroad due to the Global Impact of covid19. Even countries where cases have not been reported, it said, may restrict travel without notice and we are hearing more and more from the drug industry on the efforts to find treatments for covid19 while we dont expect to get feedback on treatment, they announced partnerships to manufacture antibodies that could be used as potential treatments meg, thank you very much. Lets get to the latest on the coronavirus in thanks so much, mike. As chinas infections drop to a handful of cases, companies are reopening offices with stricter rules. Get into your desk at this chinese Baby Products Ecommerce Firm is not like it used to be my name, temperature checked and disinfecting myself before im lauallowed into the office. The founder and most of her 400 employees have been working remotely from home since early february not as of last week. There are some things you can only do the at office, she says. Her company promotes some of those products via Live Streaming and needs people to man the studio she limits the numbers only a fifth of her staff are at the office at any given time workers come in staggered shifts and departments alternate days when they work here. Everyone sits at least five feet, one and a half meters apart. Each staffer gets a box of medical supplies, masks it to wear in the office, one per day, sanitizer and heating pads because the Company Keeps the windows open for better air circulation. To encourage employees not to go out the company brokered a deal with a restaurant in the same complex to eat in. But the work at home policy hasnt hurt productivity as much as she feared. We got rid of unnecessary procedures, she says we dont need to spend so much time meeting face to face. And companies here expect to keep measures in place for some time until the Global Pandemic is over, which they expect to be at least months from now mike eunice, you mentioned they expect i guess indefinitely until declared over, are these measures being taken with the guidance from the Chinese Government or are companies figuring out their Way Companies are figuring out their own ways some have been looking at what the government has been doing within residential communities or at Office Buildings but for the most part people are trying to figure it out themselves. And at this point does it feel as if, you know, is business halfway back, where are we along that curve and coming back to normal well, its difficult to say i think for the most part its it starts and stutters where you hear, for example, today the Commerce Ministry said that some of the Important Companies that are, you know, for Foreign Trade are now up and running at resumption of work rate of 100 , but then at the same time, you know, there are a lot of anecdotal evidence that Companies Just arent really ready to work because theyre concerned about the possibility of reinfection eunice, we are grateful once again. Are our eyes and ears in china a lot of viewers are saying its good to see you back on tv as well well talk to you soon in beijing. In d. C. Where we have the latest on the white house response to the virus after the president s address last night. Carl, i can tell you its business as usual at the white house. You can see the military honor guard is in position here. This is for the visit of the irish Prime Minister which is going on as planned today. We expect to see pictures of the president of the United States meeting with the irish Prime Minister here shortly. But meanwhile, weve seen the dispute up on capitol hill as democrats and republicans fight over what should be going into the health bill that is making its way through the hill now republicans calling for a delay because some of the president s priorities were not put into the bill advanced by nancy pelosi. Ive been emailing with a Senior Administration official on the administrations position on that. Heres what the official tells me we support getting the president s priorities addressed now, not promised. Several of the provisions in the pelosi package go beyond Administration Policy or dont even work. A significant dispute here now, carl, particularly over this issue of payroll taxation. The administration wants that proposal that the president has been floating all week to be in the hill package as it goes and here we see the irish Prime Minister going by right behind me you get that sense that business is carrying on here as usual the dispute is carrying on as usual in washington. They want the president s policies to be in the bill as its moving on the hill right now. Thats what theyre telling me. Interesting eamon, ireland was one of the two countries closing schools this morning norway the other one. Right. And the uk has been exempted from the travel ban that president announced last night on travel coming from europe uk is the big exception to that one. Mcconnells office now tweeting a thread here from the speaker, im sorry from the leader, we do not need to choose between speaker pelosis first draft and doing nothing. So it does seem like its a matter of trying to carve out the elements of this that will be partisan. You wonder, sort of in a broader, more philosophical level, as the United States faces an impending crisis here, you know, washington is going to need to show that it can step up and break through that partisan gridlock americans are looking to the Nations Capital for leadership now and lawmakers are going to have to start behaving in a way they havent behaved in recent years, which is theyre going to have to start working together. Eamon, what other elements do we know of the house proposed bill that speaker leader mcconnell objects to it was a wish list what do they want to strip out of there theyre not saying specifically what senior official told me several provisions that pelosi has in there without naming them that wont work to address the crisis but we know what they want in which is pathe payroll tax cut. That is a trillion dollar tax cut, would eliminate payroll taxes on the employer and employee side for the rest of the year and perhaps officials tell me permanently. Those funds go to support social secured and medicaid and democrats have been skeptical thats the right approach here because they say its too broad and democrats say it doesnt help anybody who doesnt have a job, right, because theyre not benefiting from payroll taxz if theyre not on payroll eamon javers at the white house. To the cme group in chicago and the santelli exchange. Good morning, carl. I would like to welcome seth, ubs chief economist. Lets get right into it, there was a lot of talk yesterday when we actually saw rates move higher, selling in treasuries, that it didnt seem right, it was too thin and obviously these are issues, but to me, i wouldnt be shocked to see a thin selloff for many sessions, considering how thin it was and where it ended up intraday low at 31 basis points on monday for a 10year. Your thoughts . I agree judging from the comments at the trading desk there is a lack of liquidity in the market, even on the runs are having trouble with trading conditions and i think people are really struggling for kaum things. One, people that had on a couple specific trades now not working, but on top of that, i think people really are trying to figure out where is the bottom and the macro fundamental theyre trying to trade against because the unknowns are massive. Now, when it comes to foreign exchange, it certainly seems as though the dollar index is just the epitome of a twoway trade it basically broke 2. 5 and then this week its rallied 2 . To me, the reason is clear, during the Turbulent Times theres a demand for dollars to service debt around the globe even though aspects of the dollar that will suffer as the u. S. Economy suffers weigh in, seth. I think you nailed it there are lots of cross currents going on with fx markets go back a couple weeks people were getting out of using the euro as a funding currency that gave way to people the general risk off move when it comes to the yen then theres a general flight to safety across the world. All of those are causing these violent movements in lots of directions as people are trying to find some footing, trying to figure out what are the fundamentals that are going to underpin the medium term valuations. Seth, were you surprised that Christine Lagarde and company did not alter rate i did not understand the point going more negative. Weigh in on what you think she was up to and the longterm prognosis for how the ecb is going to deal maybe with the fiscal accomplishments the uk had, is that what we should expect from the other 27 countries in the eu currently . I think the ecb is in a difficult situation. They already had Interest Rates quite negative euro zone economists did think they might get another 10 basis points lower in policy rates, symbolic to show they are continuing i think this speaks there was widespread market speculation there should be a global coordinated Monetary Policy action but youre left with banks like the ecb that are stuck and cant do the same kind of Interest Rate reductions we saw from the fed think the ecb, the board members, and staffers, they are dusting off old memos trying to be as creative as they can what can they do to keep things going. We will continue to hear cries from people like Christine Lagarde and others that fiscal will be needed at some point. Thank you for your thoughts today. Fiscal makes sense, but i dont know if anybody has their arms wrapped around where it needs to be applied thank you for your time today. Carl, back to you. Thank you good morning, everybody. Its 10 00 a. M. At the Chesapeake Energy arena in oklahoma city, 11 00 a. 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