think they can do 3 to 5% oe organic. >> took ewe sign -- docusign. >> the oil and the semis, that does it for us "the exchange" kelly welcome back. >> thank you, scott, hi, everybody. welcome to "the exchange," and here's what's ahead today, a fragile rally as stocks try to recover from friday's selloff, traders handcuffed by the crude collapse and the coronavirus headlines, we'll get you the latest. mike bloomberg goes after the rich with his tax plan but he's a little more gentle about it than his peers. and mark zuckerberg says he wouldn't start a new company in silicone valley today, and facebook is about to take everybody off so to speak. >> great to see you, and welcome back let's go straight to the markets following a very rough session

overseas where chinese stocks suffered their worst day down nearly 8% after being closed for the lunar new year, the dow currently up 6/10 of 1%, take a look at the story with oil, breaking below $55 a barrel. energy producers really can't catch a break, marathon, valero, d devon, finally, shares of uber here, wedbush adding to the best ideas lift, saying they laid the ground for growth, now up 26% this year. >> seema thank you let's move to stocks and bonds the ten-year yield falling and hitting the lowest level since early october, just over 1 1/2%. now about 1.53 as you can see there. let's get to rick santelli, he

has much more. hey, rick. >> hi, kelly, welcome back a one year chart gives you lots of information kelly recognizing the october closing low of 153 we have been down as low as 151 enter day on friday, and do remember, moving to the left of the chart in september is the 146 cycle low yield close. below that, it's 135 of both july 2012 and 2016, as the market trades barely above historic levels. a year to date of tens minus twos, basis point, the same scenario trading at zero finally if you look at tens minus european boons, you can see hovering under 200, this is the narrowest it's been in two years and three months and finally maybe the hottest chart of the day, this is june fed fund futures, a one-week chart hovering just blow 98.60 it is the first contract, june 10 10th meeting that has over 50%

chance of an easy, as a matter of fact, it's very close to 60%. kelly, back to you. >> we are going to pick it up right there, rick, thank you so much mr. santelli. pressure is building for the fed to cut interest rates as the coronavirus spreads. first of all, does that make sense. second of all has the fed been easing david zurbos, good to see you. >> good to see you, welcome back . >> does it make sense that we would be talking about a fed rate, because the coronavirus is going to have that much of an impact >> anything is possible. i think the market is maybe ahead of itself, but the key, and i don't want to get too wonky, we think about things in normal distributions, there's a fat tail to the downside in rates. >> there's more likelihood we could see rate cuts, why is the ten-year at 1 1/2% period? >> because really like a mean and a standard deviation don't

mean what they do in a normal time not equal rate where we're goin to a 3%, the odds of 0 are much higher, the misses we have had so many years and you add in the coronavirus and a lot of uncertainty, people take out that insurance policy, and by the way, that's a very cheap insurance policy, owning the front end of the a yield curve on a levered basis is an extremely cheap insurance policy against your risk assets right now. >> we have this back and forth from stocks, is now a good time to own them or not, what would you say? >> i'm a risk party guy. i like my stocks but i like my insurance policy too so i always have the risk parity combo, a levered front end position in the yield curve, five year treasuries and stocks but i think you can make a cogent argument for some caution on what's going on with this coronavirus. the reality is kelly, you can

have as many guests on here, they can have a lot more expertise than me, but nobody really knows the beauty is we know about the fed reaction the fed is going to jump into action if something happens. and the mechanism by which you're going to make money if they jump into action is owning the front end, a lot more than long end. >> exactly >> so you can lever that up, futures markets, whatever you want, and basically have that in your back pocket against the risk assets, and feel very comfortable going home every night, i think. >> you think but also it's been a lucrative scenario one place that we're kind of watching for the transmission, i guess, is in oil prices. i mean, it's interesting that in the past we have to go back ten years, we would have cheered low crude, hey, that's great for the consumer, great for the economy, now we see a big drop in oil prices, we try to figure out how does this move from a virus issue to, you know, really hurting the u.s. economy, is that one way do you think? >> we know that the u.s. economy is a lot less sensitive to that oil price than it used to be

but i think it's very interesting position wise, forget about everything else, the market came in wanting to buy energy menting -- wanting to sell the dollar, the ten-year note. a lot of things people were pushing on jan 1 and december, are really failing, at least the ma cr macro stuff, you have a lot of people on their back foot with regards to the macro situation i don't think there was a lot of -- i mean, most all of the research i read on the -- from the energy experts was hey, this is the time to own it. so i think you've got a lot of bad positioning in the energy space as well. maybe now you have cleared it out. i think this is the worst start for oil since 1991. >> we're down 18%. >> for january >> right, right. >> you get something healthy with the consumer, yes, you've still got a lot of oil producers here i don't think the net is that big of a deal. it is a big deal in em

it is a big deal outside the u.s. let me give you one final yes or no, rate cuts this year, then, do you think they happen >> look, the odds of a rate cut are ten times greater than the odds of a rate hike, maybe 20 times greater. >> and justifiable. >> justifiably >> you could make an argument the fed has done qe, even though they told you they didn't do qe. we should be thankful they screwed up in their own mind and did this because in a way it sort of feels like the market needs a little more tender loving care than they gave it last year which was just the 75 in rate cuts. >> interesting, great to see you. >> great to see you. >> fresh from the super bowl, not going to china anytimesoon dave, thanks very much good to see you. dave cervos. carnival confirmed a former passenger tested positive of the coronavirus. we were just discussing, copper son pace for its 13th down day

in a row and crude falling 2%, down 17% this year jim mural has more, at institutional services, you were watching some of the key levels like $50 in crude. the fact that we came below that, what does that tell you? >> it doesn't tell me anything yet. markets have tendencies to violate levels you call them key levels, i'll go a step further. i think these levels are huge, five year out charts we're looking at 250 is a level of huge significance and copper, too now, the negative side of the story is obviously, you know, well telegraphed, we see what it is, on the positive side, saudis talking about production cuts, china mumbling about huge stimulus coming in, and something you guys hit on is a fed that i believe will hit the gas at any sign of a negative macro economic impact from this virus. i think right now we see the push pull, i want to see us build at these levels. this is a pretty interesting

time. >> you know, jim, there were some out there who said it's kind of ironic that at a time when oil and gas prices are collapsing that tesla is soaring. it's looking more attractive to drive an old fashioned car these days is there something, what is the price action in tesla telling you right now. the stock is up 60% in a month >> there is a time that tesla did move, you know, inversely related to oil, not inversely, but that time is gone. now we're just seeing a fear of missing out. we've seen price action like this in bitcoin. we have seen price action like this in the banana taped to a wall that sold for $120,000. we have seen things, and i'm not saying tesla is as crazy as that i'm just saying there's a lot of money chasing it right now, and i wouldn't come close to touching it. >> tesla is the new banana taped to a wall. that's what i take away from that we appreciate it thank you, sir good to see you as always.

>> thank you here's what else is coming up today on the "the exchange." >> coming up, parts of china's economy grinding to a halt as the coronavirus shuts down cities what could the ripple effect be if the country suffers from a massive slow down. plus, presidential candidate mike bloomberg releases his tax plan and many are saying it's far from moderate. and the final faang gets ready to report. this is "the exchange" on cnbc

. welcome back, as the coronavirus continues to spread, parts of china's economy have come to a halt 24 regions told businesses not to resume work before february 10th at the earliest according to analysis by, those accounted for 80% of gdp and 90% of exports apple, starbucks, levi, and starbucks are some of those. joining me is john rutledge chief executive officer. and cnbc contributor how bad is the virus there what are you hearing in terms of the impact it's having on what the chinese think about the leadership, kind of the macro sense of things, we have

interesting stock picks, i want to get to. >> sure, well, you know, it's a terrible tragedy, and unfortunately nobody knows what's going to happen with it inside china, people are quite scared, and you have individual cities with 10 million people that are being quarantined now, that's -- in the rest of the world's position, the strong armed nature of the chinese government makes that actually positive because they're more able to contain it but what we haven't seen yet is any humanitarian issue photos with governments clamping down, people trying to get out o town, et cetera, but people are very scared. people are trying to stay home people are not allowed out of their houses for more than once a day to get essential foods, so it's a real scary situation. >> sure. and the market, the chinese market today down 7%, when it reopened, a lot of individual stocks were down 10% you think there's some opportunities there. what do you see? >> well, first of all, there's a trading limit. that market, individual stock

price cannot fall more than 10% or it won't trade, which means that 7% is probably 17%, if you actually knew what the trading prices would be for those stocks so i think the big story is that we've got uncertainty, obviously, but we've got a lot of fear and ignorance going on at the same time fear rightly so, ignorance, we just don't know, we most american investors don't know all that much about china or chinese stocks or chinese accounting or chinese policy, so when people get scared, they pucker up and pull their money closer to home capital outflows from china is the big issue. the rmb has been dropping against the dollar big time, more than 7 now. >> and you warned the decline of currency hurt the businesses which have the u.s. debt and dollars we have spoken about let me ask you specifically. you think coffee is an interesting opportunity, the big rival to starbucks in the country there. what makes you feel comfortable? is the price action that bad, has the stock been allowed to

fall that much that you think it's something investors here in the u.s. could or should own >> most investors shouldn't go anywhere near it because they don't know anything about it starbucks, when people pushed starbucks price down because they closed their chinese stores we should buy the stock because we understand that company more. luckin, however, is a successful fast growing competitor to starbucks inside china both of them have closed their stores so you're going to have very negative near term results for both, but we ought to think, also, there's fundamentals out there. however long it lasts, it will one day be over. we have a billion and a half people, enormous consumer market with a growing middle class. we'll have growth rates that will be much lower this year, but back up to, you know, four, five, six, some number bigger than ours, the year after that and people, and they've got a central bank that is shoveling liquidity in the market today big time, and we've got a strong

arm government that can do things to stop crises that our government can't really do i think what that says is for every dollar worth of a stock you own, only one or two cents of that dollar reflects its performance this year. >> sure. >> the other 98 or 99 is later than that. the duration of the stock market free cash flow is more than 40 years. if i see prices going down 10% in an hour or a day, that's an interesting situation and sometimes you can actually buy that and then in the afternoon, people get unafraid for an hour or two, and you can actually trade it >> yeah, the time horizon could see a lot of changes, but you're bullish on china for now, all of those concerns notwithstanding john, it was good to see you. >> for nibbling purposes. >> or sipping on luckin coffee >> john, thank you very much >> thank you john rutledge. coming up from bill murray in a jeep to google's memory

aid, we're going to take a look at the most impactful ads from the super bowl. and michael bloomberg, and his tax plans targeting the wealthy and corporations in it the details and impact it could have on investments ahead. a reminder, watch or listen to us live on the go on the cnbc o.acinthe exchange" is bk tw - [narrator] at southern new hampshire university, we're committed to making college more affordable. that's why we're keeping our tuition the same through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu.

welcome back to "the exchange," here are some of the movers this hour shares of gillian the company is work to go test an antiviral drug as a treatment for coronavirus. underperformed the markets, there is its rebound today nike shares are leading higher following a bullish call, putting stocks on list as a growth play. investors should buy the coronavirus dip. tesla, the stock is soaring more than 16% now 17%. oh, my goodness. it's crossed above $760 after only crossing $70 for the first time, a couple of hours ago. it's up 75% this year. i'm with tyler mathisen to also unveil the winner of the stock draft on power tie which is related. >> and you chose to come back on this highlight of a day right here last night they had the cheesy

vince lombardi trophy, but we have the 2019 stock draft trophy, noah syndergaard of the new york mets, why because he had the smarts to pick tesla which was up 100 and some perfect during the period of the stock draft, finished with the highest returns ever in the history of our stock draft, up something like 55% coming in second place was the prior year's winner, nick lowry, formerly of the kansas city chiefs i think he'll take the consolation prize of winning the super bowl for his chiefs. >> that's right. that's right >> we will be talking to noah syndergaard on our hour at 2:00 on power lunch to congratulation him. obviously if the baseball thing doesn't work out, he's got a future. >> boy does he he better come back this year, and it was only with this tesla move this past week that really propelled him. it's been shocking >> welcome back, good to have you here. >> thank you, i'll see you soon. let's get to sue hererra >> welcome back, good to see you.

here's what's happening at this hour, everyone israeli prime minister benjamin netanyahu meeting with the ugandan president at the presidential palace, later with sudan's leader, and they have become the process of normalization. israel has courted african support. palestinian president says his government will continue its boycott of the u.s. as a response to the white house plan aimed at ending the israeli/palestinian conflict he spoke during the counsel of ministers meeting. 30-year-old hannah romild, the woman police say drove through two check points outside of president trump's palm beach resort appearing in court this morning. her attorney says she has a history of the mental illness and was not taking her mental health at the time of her arrest. and a hockey mascot accused of assault is cleared. the philadelphia fliers gritty was accused of punching a 13-year-old boy in the back in november his father complained to police who launched an investigation.

he was exonerated by the police this morning you're up to date. that's the news update this hour back to you. >> all the mascot news you need to know. >> exactly. >> thank you very much here's what else is ahead on "the exchange. >> ahead, cruising to an earnings slow down, bloomberg's bold tax plan. valley beg ga an't happy about the burger king, and airlines and the coronavirus, it's all coming up on "the exchange. last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪

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welcome back, let's catch you up on a few stories on your radar today, it's time for rapid fire. >> i missed it so much. >> and we missed you welcome back. >> our seema mody. and welcome to you what's going on with the coronavirus, carnival has confirmed one of its passengers did test positive, that is sending the cruise line stock lower, the second person spreading of the virus was reported in the u.s. royal caribbean is suspending three scheduled voyages. it's warned investors it will

take an earnings hit they report earnings tomorrow morning. seema, the cruise ship industry may be one that's easiest to quantify the impact. what does it tell us about how this thing is impacting the economy in other sectors more broadly. >> i think out of all the travel sectors, cruise lines are watched more closely when there are health scares. the vessels pack in thousands of passengers, they often say the risk of infection is much higher. >> the norovirus or e. coli, the rate of infection is faster because there are so many people in regards to the princess, diamond princess cruise line, what's interesting is the passenger who said the ship disem park disembarked in hong kong and developed symptoms later that's scary discovering the epidemiology behind coronavirus and how fast a patient can show symptoms that's scary you could be interacting with someone. >> they started to show symptoms six days after getting off the ship the question is where did they

contract it or what kind of interaction was there. >> he boarded in japan. >> yokohama, he either got it in japan or long before that, and got it in china. >> are there cases in japan right now. >> there are cases in japan, yes, that's why japanese authorities are using this quarantine as a way to try to assess passengers who could have interacted with this one passenger. >> what does this do to the cruise industry moving forward we talk about with mcdonald's or starbucks, those are missed opportunities for customers to come in and patronize the restaurants, oufbviously they're going to be hit. when we know more about coronavirus will people hold back on going on cruises for exactly the point you brought up, thousands of people on the ships. does that scare people off if and when this does get contained? >>st that the question we'll have to ask richard feign, ceo of royal caribbean, to get a sense because royal and carnival

have already lowered their guidance because of the suspended sailings the key question is the impact on longer term bookings. americans are saying, why should we book a cruise for summer or fall because of the risk of infection. >> you know what, i cancelled a honeymoon, well, i didn't cancel a honeymoon, and then nothing ever, i'm not saying this is clearly more serious but it's frustrating because all of a sudden there's huge panics and reactions and all of a sudden one day it disappears. thyme still harboring some resentment anyway, next up, let's walk about we work, hiring a new ceo with a real estate background. sandeep matrani, a billion dollars in the third quarter, more than they made in revenue which was less than a billion dollars. the wework occupancy rate slipped down to 2017 levels. this seems to confirm what the bears are saying that it's quote unquote just a real estate company. >> most people knew that already, so i think by admitting

it, number one, yes, it is a real estate company, it's not a tech company, it's not a lifestyle brand, it's a real estate company mathrani is very good at turn arounds, and leases. wework is an underwater lease company. they have a lot of releases that they rented at very high rates that they're going to have to rent out sublease and low rates, and how you're going to renegotiate those. he's going to be the best choice they have, whether they can do anything better than cash flow positive, buy 2023, which is the current projection. >> the idea that they were, the balloon picked and the valuation has been reset to the reality that's a real estate company and should be encouraged by someone who knows how to run that well. >> and how commoditized this space. is he ran a company called indu industrious, a coworking model

once you take away the free beer and the ping-pong and all the other stuff that they had, basically this is a very competitive space. it's commoditized and he's proof of that because he's already run one of these companies. >> one of its potential rivals they're also based new york so he would have to commute from miami. >> he's going to noomove from miami. >> i'm thinking about it because of the next story, facebook here mark zuckerberg said that the bay area is not worth it to start a company in a more. i like the bay area, i'm not super negative on it, but i do think unbalanced if i was starting from scratch now, i wouldn't pick it he went on to say that facebook supported free speech and strong encryption will quote piss off a lot of people. on the silicon valley issues, bay area has problems, the courtroom problems in san francisco and so forth i mean, he didn't say where he would build, i guess, but didn't

sound like it was necessarily going to attract the brightest. >> you think about when he started facebook, and that idea that, you know, we all saw the movie, when he moved out to silicon valley, he needed to do that because that's where the staff was. that's where the engineers were. that's where the software device were, and at that time, that's the only place that they were. you could find enough of them, the sean park who was out there, all the mentors he wanted. nowadays you can go to austin. you can go to chicago. you can go to boston >> so you don't think it's an indictment of silicon valley or san francisco that region so much as a positive message about what's happening across the whole country? >> it is that. and it is san francisco which is completely mismanaged, the growth and the concerns about inequality and the ability to just build more housing. i mean, they have restricted housing so you can't build more and that's not going to change anytime soon. >> that is definitely part of the issue. it's also a testament to what all of these major tech companies have done since he started facebook and facebook included social messaging is a huge way

to find new people, and build companies and you don't necessarily have to be there on the ground >> his platform. >> it's a two-pronged statement, san francisco is mess, this needs to be cleared up but because of what all of these companies have done, you don't need to be here to do it. >> kwhawhat about upsetting peo, seema, nobody liked to rally behind him in the message about free speech and encryption. >> is it a cry for help, he got a little philosophical i enjoyed it he was speaking off cuff we'll have to see if this is perhaps a sign of where he wants to take the message for facebook in 2020. >> fair enough burger king is looking to have a way with its proposed class action lawsuit over impossible whoppers, saying they never promised the whoppers were vegan or a particular way. the plaintiff is arguing that burger king duped him to believing that and is seeking damages on behalf of the

consumers who bought one. >> you're often questioning preparation. we have several people by choice and dietary restrictions, they always ask how things are prepared, and because burger king never advertised these as vegan, that's on you as the customer to ask how this is being prepared the impossible whopper and impossible brands also said these are for flexitarians, they're not marketed toward vegan. we're not saying they are 100% if they're prepared a certain way, they would fall under that umbrella it's an issue. i'm not sure how far this gets. >> i agree that it's not a lawsuit because if you look at the fine print and the asterisk down there, prepared in an open kitchen and the sub to that, it could be prepared in a microwave. >> yeah. >> the legal waiver is there, but i was surprised and i think most people are surprised to learn that their plant based burger is being cooked on the same grill as the meat based products and that they can

comingle or whatever they do on the grill there. >> the juices, right >> all flowing in between. >> why can't you just have a separate part of the grill, we're only going to put the plant based stuff here. >> if that's what the customer ultimately demands and i don't think the class action suit is going to move forward. >> people will think about this twice. >> if the consumer wants them to not comingle, what's the expense now that restaurants have to incur. >> you can cook it in the oven >> you can microwave it. what they're saying, i think that gets at heart of this is that people want options and i don't know that everyone is adhering to a strict diet. >> options cost money. >> 100%. change the kitchen. >> double the grill space. >> and that gets to the heart of is it worth it at all to add this to the menu, if you're a franchisee everyone expects mcdonald's to

do this, will they want to change up the kitchen. >> who takes the cost, the franchisee. >> a lot of times they'll coinvest. >> comingle. >> yeah, it's a coinvestment between the franchisees and the parent company it comes at a cost to them, and they want to make sure it pays off. >> fascinating. before we go, the super bowl is over now, but the brands are hoping the buzz continues. they said the bill murray commercial takes the cake, 7 out of 10, the winner in terms of most impactful right behind it is hyundai's smart park ad with the boston accents. >> there's no other way to read that that was good. >> ads by google, doritos and rocket mortgage. and the worth, michael bloomberg east campaign ad and president trump's criminal justice reform campaign ad. i guess the politics didn't rate that well in terms of -- >> shocking. people prefer doritos ads. >> can we have one night without

the politics, guys, it is the super bowl >> but i think the biggest victory, and i didn't want the game, i watched a little bit of the commercials, getting bill murray. >> did you intentionally try to miss the game to catch the commercials. >> my wife and daughters watch the commercials and half-time. to get bill murray to do a commercial to get him to do a great movie is hard enough, maybe will show up, maybe he doesn't you did it for the money, but i was surprised that he's even in a jeep commercial. hats off to them. >> apparently you can't find him. he doesn't have an agent, an 800 number to call, and maybe he'll call you back. i think to your point, i was surprised to see bill murray out there and in a super bowl commercial. >> now i need to know the whole back story of how this ad came to me. everybody was talking about it as the bill murray commercial, not the jeep ad, do these things matter, is it worth the money. >> are they going to sell more

jeeps. >> for smart park, did i do that right, i'm from new jersey, i don't remember what car that was for, i remember john krasinski was there. >> the actors careers, and the ads are overproduced and so much hype i would be hard pressed, i know it doesn't work like this, but to think about an ad that was impactful, the google add maybe. >> and every year after the super bowl, we hear the same two things, the ads that worked had celebrities and humor. every year, it's the same thing. >> you have to wonder why obviously president trump and michael bloomberg, we know who they're trying to reach. >> that was an ego thing between the two for bloomberg to show, if you're going to be here, i can be there too and that's all it was about they knew no one would care. >> not only do people not care, they didn't like it. we'll get the ratings numbers for the super bowl next hour seema mody, robert frank and kate rogers. shares of alphabet climbing more 15% the trillion dollar club member is the last of fngaa earnings

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i love you. - [graduate] i love you too. welcome back, alphabet is the last of the faang names, this season. will the company keep its membership in the billion dollars club josh lipton joins me with the key numbers to watch. >> here is what the street is expecting, q4 eps of 1253on revenue, 46.94 billion, suggests a 20% jump on the tom line as analysts think ad spending stayed strong. alphabet shares solidly in the green this year. they're up about 15% since that announcement in early december that sunder pachai was taking over as ceo with founders stepping down as ceo and president. so looking ahead, what changes could that mean for the search giant, well, morgan stanley details three ways that the company can improve shareholder

friendliness in their words, more consistent disclosure particularly for alternates like you tube and the cloud computing business, guidance on operating expenses and capital returns saying buy backs and dividends would increase the attraction of owning this name kelly, back to you >> josh, although people have been pushing for more transparency on you tube for instance, for a long time, and look at the shares they just continue to perform. >> yeah, so it's interesting, listen, kelly, i talked to cfo ruth porat every quarter for years, ask for more disclosure there on you tube, cloud, way mo, ichb haven't gotten very far interest this time around, pachai taking over as ceo, financial analysts are wondering does that change at all how this company engages with investors, and one thing they are wondering, does that mean improved consistent disclosure we'll find out after the bell. >> and curious after microsoft's big numbers.

josh, thank you very much. josh lipton in san francisco. michael bloomberg unveiling his tax plan and it will leliky hike his personal tax bill we'll have all the details for you next

welcome back, we've got them

already, the official viewer vip numbers for the super bowl julia boar sten, how do they look >> fox reporting the super bowl was viewed by 102 viewers across tv and digital this is inclusive of all properties, tv and streaming if for comparison, this compares to last year, the super bowl was viewed by fewer people by 100.7 million viewers. a slightly smaller number. last year we knew that there was the tv audience of 98.2 million viewers. we don't know how many of the 102 people watched on television we're going to be breaking down those results as we get more details from fox and the nfl later in the day it looks like a slight increase from last year >> julia, quickly, you think we'll learn what the break down was, that's the anticipation. >> we do expect to learn what the break down is. if you look at all of the viewing, both tv and digital, fox says that this was the 10th most watched super bowl in history, but we are waiting for the additional detail, which we do expect later in the day.

>> i've got thoughts about the score board too, but julia, thank you very much. presidential candidate michael bloomberg unveiling his tax plan it aims to raise $5 trillion and would likely increase his own tax bill robert frank is back with the details for us. >> it is a $5 trillion plan and it's more than 50% hider than joe biden's but less than a quarter the size of elizabeth warren or bernie sanders it has three basic parts chl first hike the top income rate, 44%. raise the corporate tax rate from 21% to 28%, and this is the biggest change, he would tax capital gains the same as ordinary income for those making more than a million dollars. which means that if you have a capital gain that you sell an asset, a stock, a house or a company, the top rate would go from 20% to 44.6%. here in california and new york, that rate would be over 56%. now, he also would end the step up in basises, that's when unrealized gains go untaxed

after you die and broaden the estate tax to apply to more americans and get rid of carat interest. >> being aimed at the private equity and others. robert stay with us. let's drill down on bloomberg's plan and how it stacks up against other proposal the ben white is here, chief economic correspondent at politico and cnbc contributor welcome sir. >> welcome back, kelly. >> thank you so the interesting thing about michael bloomberg's plan is that he doesn't have the big headline raising plans of what to spend the money on, does he, i mean, what is his -- putting aside what the impact of some of this, like the 56% rate on some capital gains. >> sure. >> what does he want to do with the $5 trillion? >> well, he's talking about infrastructure, he's talked about education, he's talked about health care to some degree, though not medicare for all. he wants to do a lot of different things -- >> environmental programs. >> environmental programs. >> i'm sure there will be some gun buy backs and gun violence stuff. that's a big issue for him he doesn't want to raise

revenue. a lot of this is you cannot be a candidate for the democratic nomination without having a wealth increase, a tax increase on the wealthy, now, he doesn't do a wealth tax like sanders and warren do, which would try to assess all assets in a very all assets in a difficult way, but if you want to get the nomination, you have to be b in the game of i'm for raising taxes on the wealthy. >> this would seem like such an extreme move if it weren't in comparison to medicare for all, green new deal >> if a democratic candidate had put out this plan four years ago, eight years ago, where you're calling for a 10% increase in government spending, $5 trillion in additional spending, the capital gains rate, which has been sacred for the republican party and for many of the democrats for ages had come out with this, they would call it socialism but in the context, we're talk iing abu people who want a wealth tax which bloomberg says is

unconstitutional it looks moderate and by any other election cycle, it's not >> i think it makes things complicated for biden here, which is the real bloomberg story. he's now essentially a little bit, bloomberg's a little bit to the right of warren and sanders but now a little to the left of biden. gets into the super tuesday states he would naturally take votes away from a centrist like biden. >> when we had howard toying with the idea of running, people said you're going to spoil it for the democratic party and he said forget it, i'm out. why aren't people treati ining bloombebloo bloomberg that way >> i think some are and are worried about him being a spoiler particularly for somebody like biden. i mean there is a lot of nervousness in the democratic party. particularly we're on the iowa

caucus day >> was he thinking of running as an independent that's where it polls away it's one thing to have a schultz type guy in the tent where you're getting those votes the only people you detract from >> only if bloomberg wins, if it's iowa or in the run up r, if he and biden split the vote so bernie sanders becomes the candidate -- and again, if that's what voters want, that's what they want, but if they partition off what they want just enough, does it create the outcome they want? >> and before bloomberg entered, his people said the only way he enters is if biden drops out or looks like it's not going to happen and yet, biden's still in the lead in all polls and bloomberg has joined so my question is what calculus changed there or did go take over >> i think egotook over. the idea he has a ton of money he'd like to spend and the message he'd like to get out

i do think he may be ultimately thinks he doesn't get this nomination maybe somebody like biden does then he has a huge arsenal to go after president trump in the general election to assist in the democratic nominee, but the problem is in the process, he may wind up making the democratic nominee somebody he doesn't want >> one thing we know, he won't win today in iowa. >> not being on the ballot yeah >> guys, thank you, both we appreciate it the coronavirus has sicken ed more than 17,000 people and the onus is now on the airlines to uphold the airlines sweeping new travel restrictions. we'll talk about it anmes for both carriers and travelers right after this imagine traveling hassle-free with your golf clubs.

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to handle this >> it is they didn't have many days to comply so we found out about this on friday afternoon and the ree strixs went into effect at 5:00 p.m. eastern on sunday we've heard from delta, united and american united's will take effect in a couple of days, but they didn't have a lot of time to go through this we keep talking with china this is all international travelers. so what the united states government wants the know is whether travelers have been b in china. u.s. citizens, permanent residents and foreigners >> how are they finding that out? >> the tsa is telling airlines question the travelers before they board they can't board if they're not a foreigner. >> can they lie? >> that's the problem. it's a very poor situation and everyone relies on the honor system the tsa told them to look through their passports. this is what an entry or exit stamp can look like. which can take a while we're not just talking china

paris, mexico city >> all international travelers wow. >> so they, especially by the time these go into effect, a lot of people will say look, the horse is out of the barn should the airlines themselves have been more proactive as soon as word of this broke? a lot of people say this is the day and age where it's better safe than sorry. you might take a hit to earnings, but it's much better than spreading this virus worldwide. >> the airlines did act pretty quickly in cutting those flights, but demand was down so you didn't have the business trips you did before e we've heard from apple, ford, kraft. you're not getting that corporate travel spend that's there so they've kind of cut it as a commercial decision before. now that they have to sort of enforce, they're like the first line of defense for these u.s. government restrictions and now other countries are putting in similar. they have to tell their gate agents and sometimes contractors they work with security, checking passenger es in and things like that, that you need

to questions passengers before they board >> it's a lot and this follows, so they have now idled aircraft they use for these china routes, this after they've been dealing with the loss of boeing jets for a year or so now how much of a hit are we expecting them to take in this quarter? >> it's not clear yet, but asia had sort of o been p a weaker sport compared with some of the other regions. domestic travel has been very strong because of trade tensions, there had been some trade tensions in asia we're only at february 3rd and won't hear from them until april, but they're likely to update in terms of load factors. >> are you hearing anything in terms of when this noshlallizes? >> they're taking direction from the united states government they say you have to check these passengers and they have to comply >> good for travelers to know and we've seen the impact with stocks selling off thanks very much you can read her story on our

website as well. and in case you missed it, i'll be answering your questions on cnbc's instagram account today follow at cnbc to submit because the respon responses will come after the next show. that does it for us. i'll join tyler for "power lunch. >> we will see you in just a minute welcome. here's what's new at 2:00. for "power lunch" on a monday. stocks are snapping back the dow up s150 point, clawing back some of last week's losses, but some of wall street's favorite bulls are getting bearish and warning against buying the dips associated with the coronavirus. we'll tell you why plus, check out nike soaring 4% on two big analyst calls. matt boss will be b here to tell us why it is his top pick and lat later, we'll crown our stock draft champion it is the mets pitcher, noah sind gaarde running away with the hit. why not. "power lunch" starts rig