Global supplies, chip supplies rather to huawei, this as taiwans Semiconductor Announces plans to build a plant in arizona. China sending signals in retaliation that has this market on edge. Is it a bluff . We will get the read from michael pillsbury. Also, Human Behaviors on a crash course with social distancing. I will explain why. All that and so much more on making money. Now in the green. The cp effect has started. Welcome back. Its been another eventful week for the market. One of the things were seeing is caught of tugofwar between commentary and observation versus realtime news and anecdotes. The financials got crushed on wednesday, after the Federal Reserve chairman powell offered a dire warning about the economy, more specifically the american consumer. Credit Card Companies were especially slammed. But then after the close on wednesday, mastercard updated its operating metrics. They show a sharp improvement year over year transactions. Every single week for the past four weeks suggesting what they say is a move from a transition from stabilization to a normalization phase. Now consequently, those names that were slammed the day before were up huge yesterday. Now, this underscores the challenge for the markets and investors, the endless cascade of economic catastrophes versus signs things are getting better. Better than expected earnings after the bell, samestore sales down 68 , thats bad but much better than down 79 the week of april 6th. Today this stock is up 10 . The stock market all over the place trying to find its footing. Lets bring in management chief investment officer. Jack, how are you handling the verbal speculation, whether its the Federal Reserve, some titanic money manager that gets, you know, all kinds of air time, versus these signs, these actual week to week signs, like traffic up 25 . Yeah, it is really a difficult cross current in terms of all the different news thats out there. Of course everyone has, you know, a point of view. Everyone has an ax to grind in many respects. If you think about powell, certainly focused exclusively on the economy, hes flapping his arms on that. Youve got dr. Anthony fauci focused on covid. Hes flapping his arms on that. And really the right solution is probably put both sides together and say how do we get an optimal exit from this lockdown . And it appears that if you just leave it up to individuals, i think were going to be able to manage it ourselves pretty well. Charles yeah, but heres the thing, okay, we know things are awful. I mean, no news flash, right . Thats not exactly man bites dog. But when we do get these signs, from these companies that week to week because weve gone from looking at this on a macro level, i think, to a micro level, and week to week, daytoday, there are signs of progress. Now its coinciding with the reopening of this economy, and it does impact the stock market. Are you making any different changes in the way you look at this market or that you would approach it as an investor . We have. You know, one is were looking at the stock market very much like a bond investor would look at the bond market. What i mean by that is if youre a bond investor, you only have its really a binary outcome. Either your company or your issue is going to pay off, or its going to default, and youre going to have problems. And youve got to look at the stock market the same way. Each individual selection in that portfolio has a chance of succeeding and moving past this coronavirus challenge, or theyre going to fall by the wayside. Now, the good news is, charles, if you look at the largest sectors, like s p 100, s p 500, only 5 of the s p 500 is deemed below investment grade. In fact, 1 of that 5 is netflix. Im not worried about netflix. Charles i got ya. Now, earlier in the week, jack, President Trump tweeted about the way that the big boys on wall street are able to manipulate small investors. Listen, theyve got a variety of tools to help them trigger panic selling. They make money on the panic selling, and then they actually buy those same stocks on the cheap and make money again. The loser in this equation, more often than not, the individual investor. So i happen to think the president s on to something here. I think we should bring back the up tick rule. Im worried about High Frequency trading, even the media platform that these gurus are afforded. In your mind, youre one of my favorite old school professionals, and youre somewhat of a purist, but should we do something to mitigate the volatility and perhaps level the Playing Field . Well, you remember that old term pump and dump. This is really the opposite; right . If you start, you know, creating worry among individual investors, get them to sell, and then you come in and buy on the other side of it, thats really just the other side of that same coin. With respect to, you know, the Algorithmic Trading and the up tick rule, i would tend to go along with it. As we saw in the early days of this pandemic, you know, mid march, third week of march in particular, it was all just algorithmic just plunging, just because of formulas and not necessarily fundamental news. That created a lot of concern among longterm investors. Charles jack, always a pleasure. Thank you very much, my friend. Talk to you again real soon. Meanwhile, folks, the white house taking a huge on retaliation against china moving to cut huawei off from global chip suppliers. Susan lee joins me with more. Bringing the energy today, charles, great to see you once again. We have export limit going into effect in about ten minutes time, this will restrict the amount of High Technology namely u. S. Made chips that can go to chinas huawei. Now, there is still going to be a license agreement, meaning that you have to apply for a license from the Commerce Department in order to possibly if you want to ship chips to huawei in the future. Theres 120 day grace period, meaning those in production can still be shipped over the next 120 days. And its also by the way you have to apply this to both design and manufacture in the future. We had this report that a physical shipment of chips was actually blocked from going to huawei earlier on this morning but the Trump Administration. So as you can imagine, china already threatening retaliation. Heres the tweet from the global times, the propaganda arm from the Chinese Government saying that based on what i know is that u. S. Further blocks Key Technology supply to huawei china will activate the unreliable entity list and investigate u. S. Companies such as qualcomm, cisco, apple and suspend the purchase they say of boeing airplanes. In reaction you have all these stocks down and then dont forget that apple still gets about 17 of their sales from china, based on more than 50 of their iphones in the country. Also we have boeing still getting about 12 of their planes sales from the country. Qualcomm still does a lot of business there, over 50 of their revenue comes from china. And then amd Advanced Micro Devices get about quarter of their sales as well. We have seen this play book before because we had the Trump Administration squeezing zte, which is the other big 5g Network Telecom equipment maker. They were brought to their knees without access to High Technology, namely chips coming from the u. S. , and that was reversed after chinese president xi jinping personally asked President Trump to release and reverse this policy. But it will be interesting to see if we see this happen once again. We know this is a pressure point. By the way, charles, for china, since huawei is one of their most Important Technology companies, 100,000 largest equipment maker when it comes to 5g maker, second largest smart phone shipper in the world. Charles susan, thank you very much. Joining me now on this and what possibly comes next is someone who has been very hard on china but someone who knows china better than most, Hudson Institute senior fellow michael pillsbury. Great to have you on any day but particularly today. Lets talk about the last 24 hours. Taiwan Semiconductor Announces this massive 12 billion dollars plant in arizona, after the president and his administration said to them, listen, you know, you are going to have to bring some supply chain here to america. Then we get this tweet, this retaliatory tweet from the global times, and the markets are on edge, but how bad can it get . Well, the global times is a well known nationalistic government controlled newspaper often used for sending threatening messages. This is a message to President Trump. I think the past week weve seen a number of messages going back and forth on both sides. President trump saying he doesnt want to talk xi jinping right now. The chinese have had a number of threats. I dont want to scare you too much charles by going through all of them. But theyve been there. Charles wait a second, michael. Lets do this for one second because my friend, two days ago, the u. S. Congress was threatened the state of missouri and all individuals, entities associated with any kind of litigation over covid19. Then yesterday the idea was brought up of a war, of a rising conflict of military class between both nations. I mean, so they are sabre rattling for someone, if it is the hardliners in the government, how much pressure does this put on xi to take action . Thats the topic of the 100 year marathon, charles, is the reformers versus the hawks. The leading public hawk. Last year they talked about sinking american ships if any navy ships went inside chinese waters, freedom of navigation missions. President trump is a deal maker. He knows how to handle rhetorical threats. I think the key thing hes trying to stay fixed on his campaign promises. We dont want dependence on china. We want china to buy a lot more of our exports. They havent fallen short yet. The trade deal has not failed, but they will have to buy a lot in the coming year and a half to make up for relatively slow pace so far. Charles right. So the huawei deal is part of that. The president tweeted many times about huawei, and yes, he did a favor for xi jinping on zte. So huawei could be, you know, the topic of a favor as well, but the chinese are not mr. Trump called them very expensive to deal with. So this exchange of rhetorical threats may go on for sometime, charles. Charles okay, but from where we are right now, i have to let you go, but it feels like the market believes it is a bluff, but, you know, where are we in terms of this going any further than rhetorical exchanges and negotiating points . The key thing is the phone call last week between a reformer and vice premier the guy the charge of the trade talks and bob lighthizer. The announcement afterwards in both sides, both beijing and washington, there was a consistent announcement that the phase one trade deal is still on track. I think thats the important thing to Pay Attention to. But youve got to expect a lot more rhetorical back and forth. I was particularly amused that they are going to put senators on their entity list and sanction them for having legislation charles i was miz amused i was amused they wanted to take on the state of missouri. All 49 states would sit back and say go for it. Good luck. Michael, great to have you on. See you again real soon. I hope you dont get on the list, charles. Charles i think im already on there. President trump in the rose garden earlier today giving us an update on progress towards a vaccine saying one could actually come as early as the fall. In preparation for this initiative, experts throughout the government have been collaborating to evaluate roughly 100 vaccine candidates from all over the world. They have identified 14 that they believe are the most promising, and theyre working to narrow that list. Charles joining me now with the latest, jackie deangelis. More good news on vaccines. Good afternoon to you, charles. Thats right. This is in the rose garden in the last hour. The president and his team working on operation warp speed. That is finishing manufacturing and delivering a vaccine. As he said, hopeful we could have it sooner rather than later, possibly by the fall, but the target would be by the end of the year. And one reporter asked a question that i thought was really interesting, charles. She said if we didnt develop it here in the united states, but if another country had it, would there be sharing . The president said absolutely there would be, and questions were asked about the cost too. And he assured everybody that this isnt about making money. This is about getting the vaccine to those who need it and that it would be affordable. Those were two really important points coming out of there. Although, interesting because the nih director talked about large scale vaccine testing, expected as early as july, so the midpoint of the summer, but also saying to have a covid19 vaccine by january would be a stretch. You know, listen, these vaccines could take years to develop, and were trying to do it in such a quick and efficient way. Hopefully the president and his team will be able to do that, but having said that, theres also a lot of controversy around testing. Weve been talking so much about active virus testing, antibody testing, blood tests, finger prick, nasal swabs, you name it, and some of these have been fast tracked by the fda under emergency approval to get them out there to the people who need them. We have also talked about some of the accuracy issues that are out there. There is a question about accuracy when it comes to the abbott labs id now point of care test. The fda has warned that some of the results could be inaccurate and that specifically falsenegatives have been an issue here. The issue of course is you get the test. You get a negative, and you think okay, im fine. You may behave differently than you would if you found out you were positive, and if your test result is faulty, you could infect other people. The fda statement on this reads in part we are still evaluating the information about inaccurate results and are in direct communications with abbott about this important issue. We will continue to study the Data Available and are working with the company to create Additional Mechanisms for studying the test. Now, abbott has also addressed the issue, basically saying its continuing to work on delivering reliable results, but it said in a statement that negative results should be presumed negative, but if inconsistent with clinical signs and symptoms, were necessary for patient management should be tested with an alternative molecular assay, meaning get a backup test if you really think you have the symptoms and the result is wrong. Abbott also says its seen studies with a range of results, some showing performance in the 80 range. Some as high as the 90s. One as high as 94 accuracy, but as with all testing, theres human error in this. The tests are not administered by robots, charles. Final point here, this happened to be the test they are using in the white house. More people there Wearing Masks today in the rose garden. We saw that, practicing social distancing as well, especially with the president. And of course, everybody realizing that the tests are not perfect, but they are a good first step. Back to you. Charles absolutely, jackie, thank you very much. Markets turning positive at the top of the hour, the cp effect as well in effect. We have a lot more on these markets coming up. Also swing state voters seem to be lining up behind our commanderinchief, as President Trumps response to the coronavirus has helped him in the polls. Next the white house pressing ahead with a vote on another massive 3 trillion dollars stimulus bill today, folks. Now despite the veto threat from the white house, were going to get reaction from congressman Thomas Massey of kentucky, right after the break. Nt plan with voa gives us confidence. We can spend a bit now, knowing were prepared for the future. Surprise we renovated the guest room, so you can live with us. Im good at my condo. Well planned, well invested, well protected. Voya. Be confident to and through retirement. That Liberty Mutual customizes your insurance, i just love hitting the open road and telling people so you only pay for what you need [squawks] only pay for what you need. Liberty. Liberty. Liberty. Liberty. So were working 24 7 toected maintain a reliable network, to meet your growing internet needs. Were helping customers who are experiencing Financial Difficulties stay connected. Were increasing internet speeds for low income families in our internet essentials program. And delivering selfinstall kits to your door. Nos comprometemos a mantenerte conectado. Were committed to keeping you connected. For more information on how you can stay connected, visit xfinity. Com prepare. Charles House Speaker plo si trying to rally support for her 3 trillion dollars stimulus plan. This as President Trump has already vowed to veto it. The g. O. P. Worry of the package showing concern that hey we still have yet to see all of the effects of the previous packages and some are even saying that this is the ultimate smashandgrab. Does this legislation have a chance to get any type of bipartisan support or nonstarter . Joining me now to discuss is republican congressman thomas see massey of kentucky. Thanks for joining us. Thanks for having me on. We just watched 14 democrats defect from nancy pelosi, some of her most liberal members and also most moderate members, they think it is either too reckless or not reckless enough, they defected from her on a procedural vote we took in the house. The actual vote will be later but expect more defections. Charles i think the point you are make, though, about it not being liberal enough is perhaps most shocking. This has everything and the kitchen sink. It was a free for all, a wish list. People were throwing things in there. Yeah, i would like to have this for my 60th birthday. It