professionals saying, no, it's too early to do that, we were very, very early with respect to china. a whole uld have different situation in this do that.f we didn't i would rate it a very, very -- i would rate ourselves and the think the ls -- i professionals testing, we really over, -- we really took over an obsolete system. we are doing something that has never been done in this country. we took the system, we worked with the system we had, we broke it down in order to do what we are doing now. ultimately, you saying it will be up to, what? how many people will we be able to test? >> we expect with the frequent testing that that is no longer a

barrier. the tech -- the barrier is actually doing the test on a person in order to do the test, a health care provider has to dress in full personal protective equipment and there the swab put all the way to back of the throat. it is then put in medium. the next person who has to get tested, that health care provider has to change all the equipment. in, it isut that highly likely someone will call for sneeze. that is what we're doing now, to throughput of this testing. we are working on things to make it much faster. fromrtainly expect that thousands of people per day, be, we will be at tens of thousands

of people per day. reporter: does the buck stop with you, mr. president? normally, buteah, this has never been done. if you look at 2009-2011, no one has ever done things like what we are doing i think we can say that we are also getting this ready for the future so if we have a future problem, we will be starting off from a much higher plateau. we were at a very low base. we had a system that was not meant for this. meant a smaller system for a much different so we broke havethe system and now we something that will be and is very special. how close are you to

shutting down america's northern border with canada? and could you speak to the elections that are supposed to be taking place tomorrow. is it your advice that the states would postpone the elections? pres. trump: i would leave it up to the states. i think the spawning an -- i election isning an a very tough thing. i think they will do it very safely. i hope they do it very safely. but i think postponing elections is not a very good thing. i think that they will do it very well. i think postponing is unnecessary. >> on the northern are. pres. trump: we think about it. we have very strong emergency powers when it comes to something like this.

we will see. right now, we have not decided to do anything. faucier: could we get dr. to talk about the vaccine trials? candidate the vaccine , the first injections to the first person took place today. you might recall when i first started, it would be 2-3 months. if we did that, that would be the fastest we have ever gotten -- ever gone. this has been no 65 days which i believe is the record. individualsl of 45 between the age of 18 and 55. the trial is taking place in seattle. there will be two injections, one at zero days and one at 28 days. the individuals will be followed

both for safety and whether it induces the kind of response we predicted. that is exactly what i have been telling this group over and over again. reporter: is there guidance for someone who may have felt sick but then felt better. how long would you stay home after that? positive: if you are for the infection, it is less whether orl than not you are still shedding the virus. out who have been infected, you need two negative

cultures 24 hours apart. trump: the market will take care of itself. the market will be very strong as soon as we take care of the virus. reporter: the u.k. said today that pregnancy was one of those underlying conditions. >> about a week ago, i said that reports that came in from the chinese cdc of the nine women documented to be pregnant and have coronavirus in their last , they delivered healthy children. that is our total sample size. we will be getting more data from countries. while countries are in the midst of this crisis, i try not to bother them too frequently. forried to get it weekly

countries in the midst of dealing with the epidemic so their focus can be on their country. reporter: any comment on what people like devin nunes have been saying, encouraging people to go out to restaurants that goes directly against your guidelines? pres. trump: i have not heard that. reporter: should they stop saying that? heardtrump: i have not what they said. right now, we do not have an order one way or another. oklahoma does not have a serious problem. he said the governor of oklahoma. and devon, i had not heard of that. it is adverse to what the professionals are seeing. reporter: and what you are saying in your guidelines. pres. trump: i will take a look at it. reporter: i don't know who would

be best to answer this question. school districts across the country are closing down. for the most part, daycare , children can sometimes be asymptomatic carriers and the home to individuals. are there any recommendations ?bout daycare centers guidelines,iginal it was schools, not daycare. wehterh want to discuss that isr or not equivalent to school. why was it seen as being unnecessary to take that additional step?

data, as it has been coming out, and i'm am sure you are all up-to-date about how long the virus lives on hard surfaces. i'm sorry, go ahead. >> he was my mentor, so i will have to let him speak. dr. fauci: this small print here. in states with evidence of community transmission. bars, restaurants, food courts, gyms, and other indoor and outdoor venues where groups congregate should be closed. governors inlling those states to close all the restaurants? done trump: we have not that yet. that could happen but we have not done that yet.

the maximum guidelines. in a practical sense, can you have rallies? pres. trump: hopefully this will pass through and that everyone will be going to restaurants and flying and being on cruise ships. be in aill hopefully of time.ick period we may make other decisions. we may enhance those decisions. the questions you are asking -- one more. hhs, is there any reason to believe they were trying to hack into the system and gather information? also, do you have any reason to think that it could have been iran, russia, a foreign actor?

wein the previous 24 hours, saw a great deal of increased activity. fortunately, we have extremely strong barriers. no penetration into our networks, no degradation of the functioning of our networks. we have taken very strong defensive actions. not want to speculate on the source, but there was no data breach. what are you looking for in another stimulus package? pres. trump: one thing that is important, this is for the next 15 days. >> tested. pence: i have not been tested yet. i am in regular consultation with the white house physician and he says i am not exposed to

anyone and that my wife and i have no symptoms. we are checking our temperature regularly, every day, and we will continue to follow guidance, which i think may be a good place to land at the end of the day. rapidly,and testing through the new-private the test to we want be available to those who have symptoms, those in vulnerable populations, and our health care workers. counsel, if you have a question, call your doctor, your health care provider. one more point. the president asked the task

force to continuously review the just from this country but around the world, and give the best guidance. about to keep themselves, their family, and the community safe. guidance is what our experts say is the best opportunity we have to lower the infection rate over the entire course of the coronavirus. just as the president did with china,adjustment from italy, south korea. take steps.inue to to spread the word to the american people that this is

advice to every american, what you can do over the next 15 days to prevent the spread of the coronavirus. we are calling on every american to do your part because together we will get through this. reporter: what was the upshot of ?hat and will you still be able to to keep that -- to meet at camp david? pres. trump: summer in a tough position and some are headed toward rough territory. we had a good conference, it was a teleconference. almost 100% was devoted to the subject. i would say just about all of it

was devoted to approver talking about. reporter: camp david? pres. trump: we did not even discuss that. there is a great camaraderie, great togetherness. thank you all very much. reporter: bailout for the airlines? you were just listening to u.s. president donald trump , vices team of advisors president mike pence and several doctors including dr. brix and fauci. the main headline, president trump is advising people for social distancing, discouraging any travel or discretionary movement, as well as attending any large gatherings, restaurants and bars.

we should point out, this is not an order, simply his advisement. he uses the term that he will do whatever it takes to address the health crisis and economic issues. he said he could eventually backstop the airlines. he said we could potentially already be in a recession. he did say that they would also be looking into issues such as paid sick leave as well as other measures during this almost one hour press conference to address the fallout. scarlet: have different tone from president trump. he did not blame federal reserve or anyone else. he said he did not worry about the stock market. joe: this was one of the key differences, not trying to talk up the stock market, but saying this is a public health crisis and nothing else matters besides that.

it is certainly a turn in the rhetoric and one that people have been waiting for. ,carlet: he praised the media saying he thought the media was doing a fair job. joe: that was odd. romaine: we did finish down on the day, the dow and the s&p, down about 13% on the dow, 12% on the s&p 500, the worst day since 1987. the nasdaq and russell having their worst days ever on a percentage basis on record. we want to go down to washington where kevin cirilli, our chief washington correspondent, is standing by to give us a little more insight. the president talked about the timeline for potentially dealing with this, saying that july-august could be how long it takes to wash this through. kevin: i think there is no

question based upon reporting .nd public comments there are three things during that news conference that really caught my attention. viceirst was when president mike pence alluded to a construction company in minnesota shifting their supply chain in order to aid health care professionals. i think you are going to be hearing things, a lot of businesses also looking to shift their supply chain to help flatten the curve. the other two points, the other being that the president saying that while this might be a significant change until mid-summer, that this is just a 15 day effort that they are really focusing in on. that is the final point i would make.

the doctors on staff, dr. fauci and others, all echoing and saying stay home, especially if you are feeling sick, especially for millennials and younger people, really adhere to this because you might not have symptoms and you might be spreading it. joe: i am curious your take on something we all observed here at the desk, the seeming change , nothing about how this is overhyped. scarlett mentioning how he even praised the media. thatou pick up on that, something has changed at least temporarily in trump's tone, talking about first and foremost, nothing else matters until we get a handle on this health crisis. i think there was no

question that the president was extremely clear in this press conference and divorced the issue of the press conference. saying there would be a time and place for economic stimulus. i keep going back to steven mnuchin. theaid, the world may be in second inning of this thing. the bottom line is what that stimulus does is provide for free testing. it also is going to be able to purchase more masks. this is a very piecemeal economic recovery. we are so early on that it would be incredibly premature to play out where this ends up. the most important thing is to flatten the curve. joe: turning back to the markets, i want to bring in michael, chief investment strategist at state street global advisors, which has

report $.12 trillion in assets under management. -- 3.12 trillion in assets under management. have their indices worst day ever. surprised are you by this move on the backs of that aggressive and unexpected vegetable yesterday? -- fed move yesterday? : one thing i have noticed is this interesting relationship has developed. as the social distancing actions have expanded, markets have contracted significantly. it is kind of an interesting dynamic, to combat the virus from a health perspective

requires us to do more and more to back away from our lives and the market is reflecting the fact that this will leave -- this will lead to severe economic consequences. weekend, france on lockdown, san francisco is shelter in place. now these additional restrictions. as this was being announced, markets accelerated down into the close. consumers inen by the u.s., this is going to have major economic consequences and corporate profit consequences. scarlet: you see that reflected in the price action. 500, 10% of the stocks fell at least 10% on the day.

the scopeu a sense of of declines we are seeing here. start point can investors to believe that we have priced in the worst, or is that not a possibility until we see some of out?ata come michael: i think that is one thing happening. trader, if i don't have an information advantage, it is logical to read -- to regroup and wait for clarity. until we get clarity and confidence that it is flattening , i expect volatility to continue. china started seeing cases in the middle of december, the peaked around february 12 that

eight week period. if we are going to apply what we are doing. fiscal policy, monetary policy, social distancing, and push forward with that eight weeks, it puts you toward end of april, early may. we just heard the president talking about july-august. i think folks are largely going to throw out any economic data and earnings that do not include data from the coronavirus. they will be focused on that infection curve to see if it is flattening the way that china was able to flatten it. romaine: that will definitely be a key indicator. the market was pre-much christ in a technical recession. priced inetty much christ in

a technical recession. what does the recovery look like in terms of the time order ration it takes to get there? are we talking this year or further into the future? michael: if we get the type of trajectory i am expecting, roughly eight weeks into may, then we start to recover, then i would expect by the fourth see someyou start to improvement in the economic data. at the same time, you will have fiscal and monetary policy starting to really have an impact in the fourth quarter. i think you could start to see rebounding in the economy and in the stock market. the path to get there, certainly going to be volatile and bumpy.

scarlet: michael, thank you so much. back to washington. our next guest says that lawmakers have the best tools to soften the economic blow. is an associate professor and director of the economics program at bard college. she is author of the forthcoming , the case for a job guarantee. professor, i want to get your thoughts first on what the president just announced. he seemed to have changed his tone a little bit, talking about the kinds of supports the government would be willing to provide, whether it is paid sick leave for offering support. are those the kind of steps that get us in the right direction of being able to support those the

most by this virus? yes, as soon as we realize how serious, the better. i think we are moving in the right direction finally but we need to be thinking bigger and bolder. effects willomino be bigger. we expect an avalanche of layoffs, which will bring more bankruptcies, defaults. as we think about the current moment, we have to think in terms of what we need to do now and what we need to do tomorrow in terms of direct measures. joe: what do we do right this second on a direct basis in terms of getting money into the economy via fiscal channels so

we don't go into a recession or depression? x i am not sure we can avoid a serious recession because that is a requirement for we have to do to contain this virus. instead of thinking about sort of edges or incentives, we have to think about direct intervention. the most immediate thing is whether people can have free medical care, whether they can have paid leave. i think checks in the mail are perfectly sensible as emergency measures right now. we have got to think about this waylem almost as a war, the we mobilize during and after a war. to resource our supplies.ctor with

out a directgure plan to put into place and human, equipment, resources support into place. romaine: when you look at where we are right now, the idea that there could be a relatively long duration, you are looking at large structural changes to the way we structure our economy and government. do you think this is enough of a shock where we could actually see those sort of structural changes? >> i certainly hope so. there are many lessons we are learning. the first one is that we need a fully resourced public sector in all aspects of our public life,

whether it is accurately -- adequately stocking the national strategic stock while, whether having an insurance system. i think a big one, first of all, the public-sector not only has a role to play but it must have robust safety nets. the second one is that as we start thinking about the many casualties in the economy, we need to take about how to address a failing airline industry, a restaurant industry losing 80% and demand, auto manufacturers not selling cars. we can start thinking in terms of patchwork of policies. but one of the most important direct public investment and direct employment. infrastructure investment, some

sort of renewed deal -- green it new deal, job guarantee. this has to be part of the package to create a trickle up bailout. scarlet: how do we pay for all of this? >> financing is not the problem. this crisis clearly demonstrate. whenever we need to mobilize our resources, the government simply votes policies into existence. we are not scratching our heads right now about, do we have the money to pay for all of these fiscal measures? the government is self financed. we have institutions designed for this. the way we paid for all of these large-scale infrastructure investments during war, after world war ii, the way we paid for the new deal, this is how we

will be paying for any measure we implement now, or else we will be paying still for the damage. joe: you are talking about the need for a bottom-up response, getting money into the hands of people. unfortunately, due to the nature people crisis, even if get the money they need to feed their families, pay their bills, address their medical costs, there are a certain class of businesses that they are being told specifically to avoid in terms of public health. peopleg where multiple go at once. how would you think about constructing a public response

for the businesses whose activity is suspended temporarily? with response will begin the workers first and providing the protections. but clearly we have business have to pay loans. moratorium on payments where possible. we can do this with student loans. you are right. sending people a check right now would primarily help with paying down mandatory bills. the normal economic activity. that is really the trick. the trick is how do we return to normalcy? i think that this is uncharted territory and the way we return

largemalcy is to put investment into areas that have collected so the stimulus trickles up through those businesses and industries losing sales and profits. romaine: professor pavlina t bardeva, professor at college. thank you. joining us on the phone, professor of the international financial system that harvard business school. a former ms senior policy advisor and deputy director. can you give us an idea of what the policy subscription should be for addressing the fallout?

>> the first and foremost response, containment. containment should take precedence all over everything else at this point. this is predominately a fiscal issue. fiscal stimulus is part of the answer. is noty policy stimulus going to,, i don't think, through the conventional channels. i don't think -- i think we are going to have to think out-of-the-box with what is conventional, unusual monetary policy 12 years ago, no longer

unusual. so basically, what that entails support to the banks that hold loans that will be defaulting. i think we should be paired to a large-scale insolvency. romaine: professor reinhart knows more about this stuff than anybody. we are sort of talking about what has to be an unprecedented fiscal and monetary response. conversion ineing terms of the view that fiscal has to be at. there was a blog post published by an advisor to george w. bush, talking about the need for cash transfers. sayingmney out today and , give every american $1000.

i have never seen a moment in which although there are disagreements on the technicalities, on the specifics, so many people agree that if there ever were a crisis that called for fiscal support, this is it. scarlet: cliff tweeting this morning, we need physical help for small and maybe even large businesses. there is the conviction from people of all different walks of life and political stripes. it is really quite stunning. let's rejoin carmen reinhart of harvard business school as we look at some of the solutions being bandied about. we talk about how we need to look at unconventional policy. is there anything in history that we can draw from in terms of looking for a roadmap of how we might proceed?

>> no, not that i am aware of. if you look at the last major, major pandemic, the 1918 influenza cubby was a different world. this was world war i. the social safety nets were not even in place. so, in terms of having historical precedent to say that this is a roadmap, it is not there. this time is indeed different. theink that looking at immediate response being for fiscal, the need with --need for dealing what we do not want is also beyond the human dimension to morph into a major financial crisis, which it has very much the potential to do so.

the obviously, we see health crisis. that was something that trump talked a lot about today. we know there will be extreme amounts of economic damage. how does the health crisis, economicns into an crisis turn into a financial crisis? carmen: we did not have undercapitalized banks. we had tanks that were in very healthy shape by any metric. this originated because of bad lending practices in the banks. economy if you have an brought to a screeching halt and as to thertainty

of a and duration recession, then you can expect almost with certainty and number theusiness failures and number of defaults to increase. measures besides the fiscal measures necessary to support thatholds, to support istem, what you also need liquidity facilities to deal with those institutions that are by a directly impacted very healthy balance sheet weeks a balance sheet of nonperforming assets. this is how i crisis that had its origins in a pandemic

becomes a financial crisis. the u.s.do you think economy is more vulnerable to this outbreak of the coronavirus and the steps we need to take because we are so dependent on consumer spending? would we be better off if we were more of a manufacturing-driven economy? carmen: absolutely not. what section of manufacturing in china has escaped the dire consequences of the pandemic. china's latest numbers, they are nothing but alarming. the decline in manufacturing activity, production, decline in fixed investment. , inourse, as anticipated retail sales. this is -- and i cannot

emphasize -- global in scope. being in manufacturing and being dependent on global trade is high-risk. a high risk situation. your retaileing traffic go to zero practically overnight. is, or dependence on manufacturing would not shield you in this environment. carmenr thanks to reinhart. romaine: the largest player in the cruise industry, carnival, warning of a loss this fiscal year. they have been hammered by the coronavirus. carnival says it is taking steps to improve liquidity.

carnival is also looking for additional financing. in france, regulators have hit apple with a big fine. that is after accusing the iphone maker of breaking antitrust rules in distribution. mgm resorts international and wynn resorts are shutting down their casinos in las vegas. the company said it is closed until further notice. scarlet: let's bring in a managing director at private wealth management. we know that a man futures are not good with everyone stuck at home and not traveling, social distancing, all of that. but the supply story is what

really gets my attention. russia and saudi arabia continue to pump, and they are not slowing down at all. how long can this last? >> i think that is a really good question. this can last for quite a while. indicated they are willing to go the distance on this. once russia backed away from opec, saudi arabia kind of went nuclear and said, we are going to increase production to our maximum 12 million barrels per day, and potentially drawdown on some of our barrels in storage. that does not indicate to me that they are thinking about this as a short-term. i think that underneath it all, they would hope that bringing the price down brings russia back to the table. but i don't think they are

banking on that. i think they are hoping for the best and preparing for the worst is kind of how they are approaching this. the domesticut how shale industry is going to respond. of course, the price of oil is crashing. we are seeing a generalized pullback in risk assets and general willingness by anyone to extend credit. how painful will it be for domestic players? how much inevitable retrenchment do you think we will see? >> a lot. i think it is going to be very painful. on the plus side, a lot of the producers are hedged through 2020. they may be able to hang on through portions of this and not necessarily be shut out entirely. but for any company that has limited hedges on and limited access to capital, this is going

to be kind of the true test to whether they can survive. some of the stocks are down plus 50, 60% since this was announced. beingk that is clear appreciated and priced into the market. we are hearing from wall street, and some of the asset classes this idea that we are not going to return to what would normally be considered normal. when you look at the way that some people are sort of hedging their bets, do you see a market that is actually going to be structurally sound once we get through the worst of the economic issues regarding the coronavirus and whatever is going on between opec plus and its members. rebecca: i think we are all wondering when we are going to return to normal and if it is

possible. a probablyis that happens when we see the virus idea ofand we get an where the band bottoms out. the market can work, even if things are bad, but the uncertainty makes it stable. things we are seeing across markets, indiscriminate selling if it is not locked down to the ground. people need cash. if it is gold, treasuries, exposure to oil, people are selling it. could it be that some of the weakness we are seeing in oil is just a general washout and if

volatility itself were to stabilize, we would see a bit of a bid reemerged? rebecca: i think we would see a little bit of a bid reemerged if we started to see a reduction of volatility in all risk assets. i would say it might not be quite as extreme as the rally we might get an other risk assets because of the supply overhand. participate, ill just don't know if it will outperform. victim tos oil simply larger forces or is there a headline out there from the oil players that could arrest or at least slow the decline? rebecca: that is a good question. i think the most certain way it would arrest the decline would

be really positive news on containment of the virus and the demand picture. secondly, if russia agreed to join back in opec and we had production from the other, -- the other countries. i don't think there is a silver bullet that is highly likely in the near term. i think it will take some time to play out. scarlet: thank you so much for joining us from phone. for more, let's bring in terry duffy. thank you for taking the time to speak with us. before we get to oil futures, i want to get your thoughts on something that comes up quite a bit. we have seen futures hit the circuit breaker a couple of times now. everything seems to be fairly orderly but i wanted to get a sense from you on how that compares to discussion. no one has decided on anything obviously but discussion and

debate on the benefits and drawback of, say, shutting down a couple of for days versus letting the circuit breakers kick in the. terry: i will say a couple things about circuit breakers. yes, they work well. shutting down markets, that could be a large mistake. we don't know what will happen on pent-up demand of buying, selling. potentially with things being so fluid. this is not a financial crisis. this is a medical crisis. this is out of the hands of people like you and i and others. i think it is really important that people have a marketplace in order to execute some of their business one way or another. one of the things i have been promoting, two things.

one, the circuit breakers overnight are 5%. inter-day, 7%, 13%, 20%. i would like us to keep the 5% on the overnight. enter day, we should limit the top and to 13% and go no more. i think we have to have some different rules as it relates to the market because of the uncharted waters that we are in. there are other products which you are aware of, the etf's that are trading. have no obligation to stay within the barriers that the rest of us do a listed markets with the stock exchange, nasdaq, that we coordinate together. they can continue to trade. this morning was a great example. illiquid etfs giving a price of something else. they can all of a sudden become

catalysts with very little liquidity. i think that is wrong. they should be held to the same standards as the broader markets being traded today. if we could damper down the volatility a little bit, that might help the overall market. it may not. i do think what is going on with this volatility, we need to try anything we can to stamp it out. you cannot just close the markets and have nowhere to transact business. joe: as you mentioned, this is not a classical financial crisis, it is first and foremost a virus and a health crisis. do you think that the numbers that we see every day serve as some sort of catalyst to improve the public response, whether it is getting the health response right or the economic response, because of course that will be a

major part of this story. terry: i think i understand the question of being, will the markets get politicians to act more swiftly? if it does not, i don't know what they need to do. this is not just affecting elite people on wall street. this has a devastating impact on 401(k)s, everything union participants, teachers, people who don't even know they are invested in the market, it does not need to be a wall street bailout but these are different circumstances and our government needs to act quicker. for the senate to leave last week, i think they should have worked all weekend to come up with something that they are talking about this week.

romaine: when we start to talk about any changes that are made or any response? do you think the general mechanics of what we have been seeing in the market is i guess structurally healthy, and do you think that going forward, there should be any major changes to the way we look at this? i am talking about beyond circuit breakers, when we talk about the margin limits. terry: i think the market structure is just fine. this is something that is unprecedented. nowhere to this magnitude, where it is global in nature like this. so, i do think that the markets are operating. i would not want to jump to any conclusions other than what i outlined earlier on limits, circuit breakers, and etf's. we have plenty of time to make

those discussions. right now, i think that is kind of putting the cart before the horse. scarlet: i gather have been a lot of descriptions of indiscriminate selling. how does that prepare to other instances in the past, whether 2008, 2009? you have seen a lot. how does this time prepare? terry: it is a different version of 1987. i was trading during 1987 on the floor. i was obviously chairman of cme in 2008. i think indiscriminately selling because of certain things we are unaware of. people have gotten complacent. love never seen a down take they have not liked since march of 2009. now, you are seeing more and more people passively in the

market versus actively in the market. demand atpent-up certain levels because they are not actively managing the marketplace. ishink what you are seeing there are pockets of liquidity and pockets of high volatility because of the way the structure of people's portfolios are today. joe: has the new york fed actions from last week in your view helped at least with the functioning of markets? terry: absolutely. i applaud their action, if you are referring to the repo rate. that has a lot to do with payroll and keeping people, make sure they get their paychecks, keeping liquidity in the system. did they what the fed did it from the overnight through the three months.

scarlet: thank you so much for that much-needed context. that does it for all of us here in new york. "plumber technology" is next. -- bloomberg technology is next. this is bloomberg. ♪ ♪

♪ i'm emily chang in san francisco and this is "bloomberg technology." deeperkets plunging despite the federal reserve's latest efforts to prop up the economy. cities and states taking unprecedented measures to keep residents at home. the bay area announcing a shelter in place order. plus,