So much for social distancing. You are watching cnbc. Good morning and welcome we are live and waking up to another day of potential losses for major averages stock futures now pointing to modest declines from a relative perspective. The dow jones opened down 244 points, nasdaq down implied 77 points that is much more than normal. This after the wall Street Market staged a rally yesterday for the dow. Major averages on pace for the third down week of the last four checking the treasury side of things, we are seeing movement for the bond and notes higher to. 227 10year at. 61 . Oil on a wild ride it had been lower Early Morning but ralied after news after a meeting on monday by Conference Call to discuss cuts President Trump meets with Top Energy Executives at the white house today. Full details on that summit at the white house coming up. Global Team Coverage dan murphy is in singapore Geoff Cutmore is in london, nbcs tracie potts with the latest out of washington and Frank Holland with the latest on the coronavirus outbreak dan, we head to you first. Trading started well. We did see stocks drifting lower with prices hitting sentiment. Japans nikkei 225 is flat stocks in hong kong also fell and chinese equities after the pmi drastically missed expectations the kospi also on a flat line. And singapores Prime Minister has just ordered all nonessential work places and all schools close in a major covid crackdown. Reporting its fifth death today as well as 65 new confirmed cases. Stocks here fairly negative on that news. Back to you. To the early trade now in europe, Geoff Cutmore in the london news room good morning. Weve been unable to get out of reverse gear this morning. There was better news. The president of the commission telling us that there is 100 billion euros to be made available to support employment to try to help with some of the effects. That didnt help when we got a whole slew of pmi data when the numbers we have seen from february in many of these economies that does show the pace of construction we are seeing in Service Sector optimism we are negative across the markets within an hour or so of opening here let me show you what is going on the euro not getting a break either we are down against the dollar as you can see here. One spot 079 back to you. Now to washington, d. C. Where President Trump is invoking his korean war era guidelines. Tracie potts has the latest, good morning good morning. Lets start with the president and the defense production act and 3m the president tweeting theyll have a big price to pay producing face masks democrats urging the president not to wait for volunteers but to force production of this protection gear. Several companies have new guidance coming out of the white house affecting certain areas, hot spots where the coronavirus is growing that guidance that everyone should wear some sort of face masks but not hospitalgrade masks because they want to save those for health care officials. Also focusing on business. Small Business Loans rolling out. Big banks saying they are not ready. 350 billion of loans that will be forgiven if people use them to keep people on the payroll. Take us through the narrative right now not just from trump but in the congress about what the priorities will be on the focus. Is it face masks is it getting Economic Relief . It seems as though the medical things are front and center with ventilator sourcing and face masks . Yes we are hearing more about that from around the country that there is a shortage. The National Stockpile is virtually empty when p it comes to many of these when they are holding back the other gear is pretty much gone that has become the bigger focus. In relief where this is possible, the president says he is for it and pelosi says it needs to happen and Mitch Mcconnell says not yet outside of washington, urgency grows as the global number surpasses the 1 million mark Frank Holland has more ge ceo weighing in on the companys decision to furlough 50 of the staff caller we are doing all we can to support our customers in this time of rampent change and uncertainty. We are doing what we can do to address cost actions to weather the storm. Today marks day one of the Trump Administration 350 billion Business Loan program. Weve brought in External Resources to make sure there is additional capacity. That doesnt mean everybody will get their loan tomorrow but the system will be up and running. Starting today, hbo will be offering a collection of shows for freon their platforms for one month. It may give people stuck at home a break and may help company attract fans for the hbo max streaming service. Opec and Partner Companies are set to discuss production cuts in a Conference Call on monday oil prices there in the green. Moving higher on that bit of news joining me now, chief investment officer, also a cnbc contributor. Thank you for joining us lets talk about whether these markets are going to get some semblance of stabilization and possibly President Trump weighing in as well. I do think so i think the pressure is so necessary. Not just on the saudis and the russians even u. S. Shale. We know u. S. Shale production is collapsing on its own weight on monday, well get a conference not just with opec but any oil producer that wants to dial in everyone knows they need to cut. The question is who will step up and lead the way russia and saudis dont want to loose market shares and others the drop in demand has been so dramatic that may not even be enough considering demand has fallen even more than that. Is there a level in the Energy Market that you could see . This is not about shock and awe right now. This is a rebound for quite some time is there a number that Global Production people should be thinking about with regard to those cut if it is not 10 million, what number is it still around 25 and 26 versus where it was then you have the potential of getting back to 30 year, plus i think what is also important here it is unfortunate for us u. S. Shale is getting wiped out here we are setting the stage in the next couple of years when the company resumes oil again because of the production disruption we are in the midst of siege it is a question of when we get there. We talked about the millions of barrels to be cut is there a price that gets all of these that have different break even points of producing oil to agree that this is a good level for the market to be at. It is tough to say. We dont know how much longer that side will be destroyed. If the market opens up again in may or june, well answer that question and know what the supply response is at least yesterday, we got some sense that the market would be happy with at least 10 million. Not just from the number standpoint but that the saudis and the russians went the opposite way to pump it all out. That realization that they were destroying themselves was enough to see that is a very difficult question to answer until we have a sense when the demand side settles out and reopens again. Todays big nonfarm payroll will add to that question. Thank you for joining us we appreciate it when we come back, exclusive results from a new survey reveal how bearish sentiment has become while Many Companies are trimming their ranks, one company is on a hiring spree later on, google has a new orbsite tracking the success and sht falls of social distancing we have more after this. The wors all the good that we can do. To everyone working to keep america strong, thank you. But right now, the world needs all the good that we can do. To everyone working to keep america strong, thank you. Welcome back it has been a wild week. A new survey shows we may not be out of the woods yet joining me now thank you for being with us. Lets talk about kwhether investors have been rattled and what the path forward is good morning. This time there is focus around expectations around the crisis the picture was very clear that they still have concerns for pretty much all of 2020. They dont see the severe impact of the crisis tailing off until q3 or q4 this year they really just see profitability and earnings return towards the end of the year weve made a lot out of the letters uv l or whatever that is. Is there an expectation among investors well come out of this with a vshape recovery or a ushape recovery or will it be more of an lshape recovery . Yes unfortunately, very few really expect the strong vshaped recovery as the immediate bounce when we open the economy and it will all go back. Only about 15 of investors expect that kind of pattern there is a diversity of opinion. A lot of people believe well see a ushaped recovery. It will be like what we saw after 2008, which isnt terrible but means well see the recovery later. There are concerns there is an l out there. Is there a sense now that these investors are thinking are they giving leeway and what are best practices if you will given best practices right now indeed theyve given best practice focusing on the impact the other thing, however, is that almost 90 of investors said companies should still focus on investing to be winners in the rebound, which is a very high number. Given where we are right now companies are not making money right now they are still investing. Not just this year but to survive here after is the main priority thank you so much still on deck, how new york city is beating the feds to the punch. Stay tuned, well be back after this announcer todays big number, 26. 9 . Thats how much gas prices in the u. S. Have fallen over the past 12 months the National Average is now 1. 97. Down 32 cents in that period according to triple a. Boston light, americas oldest lighthouse, has stood strong through every dark hour and bright dawn our country has endured. It has seen the break in the clouds before anyone else. For the past 168 years, weve also stood by you, helping you weather storms like this one, to protect your loved ones. And well do it for 168 more. It is time for our daily check in in new york city. You can see, very dark right now with not a lot of traffic. What has become the epicenter of the covid outbreak the mayor is issuing a new order to try to slow the spread. Frances rivera is in new york news room with the latest. Good morning. New york mayor bill de blasio is urging everyone in the city to wear a face mask or some covering, that could be a scarf or bandanna or Something Else you create at Home Health Care workers are sounding the alarm over lack of equipment. Nurses in the bronx said they feel like sheep going to slaughter. We do not have the arms or the armor to protect ourselves or the public from this enemy. We are putting patients in places where we cannot take care of them properly we are putting them in waiting areas. Do you want to be taken care of in a waiting area . No you deserve a bed. Miamis mayor is asking pr President Trump to suspend flights from the area to slow the spread i hope you have some time to recharge at home, nice and safe this weekend the big plans for the weekend are just to stay at home and wash a lot of tv be safe. Still ahead, Morgan Stanley with the latest economic gut check. Later on, rbc chief economist on why the worst could still be ahead. Cnbc is back after this. I am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. One step forward, two steps back stocks looking to erase the rally as stocks surge past the 1 million mark as President Trump issues a new warning to Companies Already manufacturing product at capacity to do more in the face of the u. S. Medical supply shortage. The Treasury Department pushing ahead with the 350 billion Small Business Lending Program despite warnings from some of americas biggest banks. It is friday, april 3, 2020. You are watching cnbc. Welcome back im dominic chu live at cnbc headquarters kicking off another day of potential slosses futures indicating the dow will open down. After wall street staged a triple digit rally yesterday major average still on pace for the third average week out of four checking the treasury. To the down side on the long end. You can see the benchmark yields 6. 2 twoyear at. 23 oil on a wild ride this morning. It had been lower but rallied pretty sharply in the last hour or so on news that opec will meet on monday via Conference Call to discuss cuts well get more on that as President Trump meets with top executives at the white house later today. Full details are coming up we know the u. S. Economy is grinding to a halt as the close your of nonessential businesses across the country lowering the growth forecast for the Second Quarter Morgan Stanley issuing a dire outlook issuing a gdp drop contracting by 38 Morgan Stanley sees real gdp contracting 5. 5 in 2020 which would be the steepest annual drop since 1946. Joining me now, head of Global Market strategy and Investment Managers this is such a trying time the numbers just seem to be getting worse. Is it really a scenario where we could see a massive 30 drop in u. S. Growth . We have never been here before it is difficult to make these estimates and see how much of a stand still the economy is at and how long it will last. Given that these will be very scarey numbers particularly since the u. S prints annual gdp figures. The reality is that it will be more important about how long the economy stays at a standstill and how long they stay poor and what the recovery will look like it looks like these will be slower well not be able to ramp up the way we had hoped thats probably why these estimates are getting worse. The amount of time these will be at the stand still is to be expected. How does any investment professional around the world model or predict this. It is hard enough that data is available. With so many unknowns out there, how do you talk to clients about what the path forward is going to be if there are that many unknowns with conversations with clients, its more about investment and how they want to be positioned. If you are thinking short term, our view is that it is too late to sell, too late to buy back. Well go back down further as you said, we dont know yet the full cost on growth and earnings well see evaluation metrics will be difficult to mold because you dont know how bad that will be. In the short term, we are remaining cautious and waiting to see the peek in these cases italy looks like it is past the peek we are hoping a couple other countries in europe will follow. In the u. S. , it will be more a case of state by state if you are looking beyond that, we are still constructive over the medium turn that we are going to make it out of this that we will pull through. We will recover. It might take a little longer to ramp up than we hoped. Everyone agrees 2021 will be a strong year because we are recuperating from everything we lost in 2020 for those more adventurous, it is starting to be more attractive you can find these opportunities and dip your toes back in. Either with volatility strategies and of course your fixed incomes are better trying to put a number on all of these, we are looking at what these cases are looking like and how much time it will take and to try to slowly position for the future it is still early for that talking about the u. S. Macro picture. We have the fed. It is approaching around 6 trillion the fed is pumping as much as they can weve thrown a 2 trillion Stimulus Program at this is there any more that can be done on eamon tarry or fiscal side to make it even more impactful for the economy and the markets . The fed is doing everything they can every time they are seeing a new area that could use support, they are adding. On the fiscal side, 2 trillion sounds like a lot but it is not enough we are hearing more about the next package from the u. S. The biggest is more on the side of employment. It is not that easy or quick more to come all right, i think weve lost you there on skype thank you for those thoughts on the market coming up, oil in focus today as energy execs head to the white house. Opec and partner countries plan for a Virtual Meeting to discuss production cuts. As we head to break, check out this mornings best rfpeorming s p 500 stocks well be right back. That the world needs. But right now, the world needs all the good that we can do. To all of our employees and everyone working to keep america strong, thank you. The white house weighs new federal guidelines that could direct all americans to wear face masks when in Public Places an announcement is expected on that focusing on new u. S. Hot spots outside washington state, new york and new jersey with michigan, connecticut and indiana seen as the next critical areas Frank Holland has the latest more companies are taking action disney is furloughing nonunion employees at the theme park while still covering benefits and premiums ceasers furloughs 90 of work force and will add Health Benefits june 30 or whenever they return to work. Fais facebook is adding to its ranks. We are not just paying employees we are paying employees, contractors, sick, healthy can work or not. We guarantee bonuses at a higher than normal rate we are actually hiring we expect to hire 10,000 people by the end of the year our hiring is keeping at a very, very aggressive clip google is launching a new website launching anonymous data showing the level of social distancing tracking changes over the course of weeks and will initially cover 131 countries as well as individual counties within certain statements. Back to you. Thank you to washington where President Trump is invoking the defense production act again targeting Companies Already committed to boosting capacity to boosting the medical supply short fall good morning, eamon. Good morning. The president targeting 3m last night in a late tweet after a marathon briefing in which peter navaro described the use of getting the production of material inside the United States here is the tweet. He said we hit 3m hard after seeing what they are doing with their masks. P act all the way. Big surprise to many in government as to what they were doing. The white house not offering Additional Details on this we have a blog post from 3m earlier on what they are doing to produce those n 95 res spir raters they are saying, we continue to do whatever we can to support nurses and doctors we inspect to be producing n95 respirators at a clip continuing saying one of the things he had season companies do was manufacturing inside the United States and then exporting some of that ppe overseas that is one thing he said he wanted companies to stop not clear if that applies to 3m. Well get more details how contentious has it become between the white house and some of the ceos like gm, ford, 3m. Are there talks . Is it fluid . Is there constant communication at the c suite level and the administration or is it something that is happening by tweet and news flow some of that. There was the president going after gm and mary bara saying it is a mess when she is in charge. We are told the president never reached out to march a barra that didnt happen the president has been making nicer noises about gm in the days since then. Now out of the blue, we get this 3m tweet the Vice President , mike pence went out to 3m to see their manufacturing capacity and the white house had been complimenting 3m in terms of their response here. Thank you for. That sticking with that washington theme, President Trump is inviting key Energy Executives to the white house today one day after telling cnbc he expects russia and saudi arabia to commit to a 10 to 15 million barrel a day cut brian, this has been the key driver of energy in the last two days what can we expect if it actually would happen. Caller good morning, dom 10 to 15 Million Barrels from russia and saudi arabia is not going to happen, period. Russia cant shut off Oil Production because they need the gas that comes with it what i can confirm is that on monday, there will be a web inar meeting open to opec koint countries. In theory, the United States is invited the u. S. Talking about the Big Companies that means they wont cut unless the u. S. Cuts thats the only way you are going to get to 15er at what point do u. S. Producers start to feel that pain or move towards that caller we dont have a single producer like aramco or like in russia we have hundreds or thousands of producers in the United States ranging from some guy with a well in his backyard to exxon. First off, you are bordering on illegal price fixing they went ahead and asked the Texas Commission some think well see the demand drop to 30 million a day. You drove in, i guarantee you saw two cars i did i filled up for the second time in the last month, my gas bill prices keep going down there is obviously a demand component to this whole thing. That is probably the bigger component to this than anything else be sure to the cnbc special report tweet us your questions using the hash cnbc path forward still on deck, throw cautious to the wind as it launches the 350 billion Small Business Lending Program. Watch or listen to us live or on the go othn e cnbc app Worldwide Exchange is back in a moment yes. Its the first word of any new discovery. But when allergies attack, the excitement fades. Allegra helps you say yes with the fastest nondrowsy allergy relief and turning a half hearted yes, into an all in yes. Allegra. Live your life, not your allergies. Edward jones is itswell aware of that. Et. Which is why were ready to listen. And ready to help you find opportunity. So. Lets talk. Edward jones. Its time for investing to feel individual. A small Business Loan program despite early indication from banks that they will not be ready. Wilfred frost joins us caller some of the banks are not ready. It was meant to launch at midnight as you suggested. Theyve been working overnight since about 7 00 p. M. Last night. The message posted yesterday before those guidelines will likely not be able to accept application tomorrow, meaning today, friday. That message is still on their website. Wells fargo says we dont have a start date yet bank of america and citi websites suggest they are not up and running yet. That said, all of the conversations over its last 24 hours suggests a case of when, not if is that today or this weekend. The applications will be made on line on a first come, first serve basis adding more stress that theyll miss out all together if their banks were the last to be ready that said, secretary mnuchin reiterated he would return to congress for moral owe indication for this 350 billion if it were to run out. Lets go through what the conversations are like then in trying to get this up and running. What is the Sticking Point here . What clarity are they looking for . What policy are they trying to get clarity on with regard to what the treasury will do with that backstop they are pointing out. The bottom line is not the smaller point but that they needed the final guideline from the Small Business administration in order to be able to finalize their website and application forms. This is an enormous glimpse to get them ready the final guidelines only came in the last six hours. There was a huge amount of preparation they were trying to do in advance of those the final guidelines just coming through. The Interest Rates were increased 0. 5 to 1 protection for lenders would increase in terms of accepting validity of documents submitted. Now we are in a race against time more than anything else just trying to figure out what is happening. Thank you. Wall street is gearing up for the release of the march employment report. It could show the most monthly job losses in a decade it could decline 147,000 that will not account for the millions that showed up earlier this week and the prior week joining me now, chief economist at rbc, i normally say the jobs report is the grand daddy of them all but nobody is watching this particular one, right caller thats right. This report is too early we do expect to see decline. Our forecast is for a decline around 200,000 sticking with this report, these payroll reports are conducted in the survey week you which includes the week of the 12th of there wasnt a lot of significant layoffs. Jobless claims rose but not materially not at that point. Fast forward until today this suggests that the payroll report could be ugly it could be in the millions. Now that Morgan Stanley has dropped in the First Quarter what is your outlook given what you know right now caller here is a way to think about the damage there is a sensitivity in time you can see some scaling back of social distancing by may i dress scaling back we all appreciate it is not going away quickly you could see maybe minus 10 this quarter looking at june or july, those numbers become a very well possibility. There is a time sensitivity to this that is being under appreciated. The longer that goes on, a lot of folks are looking for a snap back later in the year, including us you diminish the possibility of h2 coming in better. This is entirely time sensitive. If it does come back in may, you can salvage that r , snk you for that outlook foq2it going to be ugly for sure our cnbc coverage conditions after this break awesome internet. Its more than just fast. It keeps all your devices running smoothly. With builtin security that protects your kids. No matter what theyre up to. It protects your info. And gives you 24 7 peace of mind. That if its connected, its protected. Even that that petcamera thingy. [ whines ] can your internet do that . Xfinity xfi can because its. Simple, easy, awesome. [ barking ] surging past 1 million. President trump again invoking the defense production act ordering Companies Like 3m and ge to ramp up production of medical Safety Equipment and it is jobs friday. Well see if todays report will not capture the most dramatic changes. Well dig through some alternative metrics that could tell us what is going on with the record claims number businesses trying to stay afloat april 3, 2020. Our coverage begins right now. Good morning im becky quick along with joe kernen and andrew ross sorkin. Futures look like they could give back a little ground the dow was up 469 points. Similar to what we saw for the s p 500 and the nasdaq up about 1. 7 we had
vimarsana.com © 2020. All Rights Reserved.