we're in halle move to close out the week it is being led by an interesting slate of sectors health care, yes, very big focus on the heels of super tuesday's primary results. it's followed up by really not the big defense sectors but utilities, consumer staples are the second, third and fourth best sectors helping to power the leadership positions to the s&p. they are currently, by the way, the only two sectors positive in 2020 so far. so they will be a key foghous as interest rate hovers at or near record lows. just only comments of the imf directing manager, that slowing growth may be powering some of those particular moves keep an eye on those folks i will send it back downtown to you folks at the new york stock exchange. >> dom, thank you very much. good morning, it's 11:00 a.m. at the federal reserve, 11:00 a.m. on wall street as well and "squawk alley" is live.

♪ ♪ let the sun shine in the sun shine in ♪ ♪ let the sun shine ♪ let the sun shine in ♪ the sun shine in good wednesday morning welcome to "squawk alley." i'm carl quintanilla with john brennan and post morgan. at this hour the cairline ceos are meeting with the president this hour. we will give you updates as we get them and the rally, pretty impressive here stocks back in the green after

the surprise fed cut rate tuesday. steve milanovich joins us, tech strategist at world research and the director of global mack affordability. i have been watching your tactical calls over the last week or so they've been pretty sharp. you said you expected a rally this week. the question is now, what do we do with it >> yes, the markets remain in sort of a price discovery mode it's unknown whether the low that was last friday, interday low at 29.50 or so or whether it's lower these are unknowable things because it's a fast-moving development. but i do think friday we got to an oversold point and rally too, 3,100 was fairly predictable, typical tracement. and i didn't want to read into too much yesterday's lack of response on the fed's 50 basis

point cut because the markets are too erotic to drop that linear line to so we're discovering where we are and how deep and how long is this supply shot and to what degree will the policy response be able to build sort of a bridge to the other side in terms of offsetting the tightening financial conditions that obviously is happening right now. who knows? i think we have to have big impulse down, we have to sharply trace the movement monday rally and we have to back phil, and that could take a couple months probably >> i want to get to steve on analysis, but quick, yirian, the market because of all of this volatility will have players squeezed by cash flow issues rather than making fundamental decisions. how much of a danger is that

>> well, i mean we saw that on friday, right? gold was down like $60, $70. a safe haven turned into a source of liquidity, just like it did in '08. i don't want to draw parallels to '08 because i think we're in a totally different environment. the margin of players who get margin calls or collateral calls, they end up selling what they can and not necessarily what they want i think friday we saw a strong whiff of that. the stocks you would think would have done welldidn't maybe there are other waves coming but friday we saw the crescendo of selling and gives me hope that maybe that worse impulse is behind us but you never know when markets run as long as they do, you never know where the hidden pockets of leverage are where once the margin call starts, the whole thing becomes a cascade. >> sure. >> i'm heartened by the fact on

friday we saw a lot of it already. >> steve, let's talk good how u.s. assembled shopping lists given everything jirren just said >> as he pointed out, we were set up for a bounce. tech got oversold, rsi under 30. very close to its 200-day moving average. the question is where do we go from here? the coronavirus is somewhat encouraging in china talking about getting money by the end of march, cook and apple sounds positive. at the same time we have semi conductor and computer companies really cutting back about 5% on earnings typically we may still have more to go we have overweight services and software we put together a little shopping list based on companies whose stocks oversold to have good return on capital, near the 200-day average and good momentum names like accenture, western union, booking, match.

but it will take time to play out here i point out the tech has been very narrow. it's been a market forward the last year. it's been the big platform companies like apple, microsoft, google that outperformed nine of the top ten top tech stocks are platform name and we still feel comfortable owning those. >> speaking of those, steven, and foxconn's call that they will be able to meet at least the slower season capacity by the end of the month after that it's still unclear and we did just yesterday good a cancellation of google's major platfo platform event of the year, google io. questions about apple's wwtc, which are usually around the staple time. what happens when these big launches don't happen? when you don't have full capacity ready at the mid-point of the year when these manufacturing facilities are gearing up when you don't have developers getting together and

understanding the new operating systems that these devices are going to be running on, what are the consequences >> we do tend to have a lot of get-togethers and conferences from facebook, google and then finally apple at wwdc. the general, those have become a little less important nermz of new features here. i don't think we lose too much there. the good news this is a lighter time of year with demands for smartphones. apple is not flying a lot of people to china so there could be a delay in products but the installed base is growing, retention rate is high. i think at this point investors feels whatever problems apple is having, it's morally a deferral of demand and likely to make this up late this year or early the next fiscal year as long as opening the plants in virus doesn't reaccelerate the virus, i think we will be in relatively good shape as we go into the second half. >> i imagine we will talk to both of you gentlemen in the

coming days, probably sooner than later thanks, guys. >> thank you meantime, hp enterprise down sharply after posing revenue below consensus benefits and cutting its free cash outlook for the year, citing constraints due to the coronavirus among other things we're now on the corner cnbc exclusive. antonio, good morning. >> good morning. >> starting off, give us a view of what's going on out there from the enterprise perspective. we had palo alto respective missed on sale issues as they tried to switch to cloud putting. we talked to pat gelsinger, their mix more towards saas. how is this cloud transition affecting you and your hardware

sales? >> good morning. thank you for having me on the show this morning. let me correct the quarter and i can put that in context. i thought we had a mixed quarter, obviously, because renk knew was down 7% on the back of a soft compute performance however, we actually made tremendous progress on the key strategic areas where we saw continued growth on the service. we continued to gain momentum, one aspect of how we provide cloud experiences, where we saw 48% growth, on our consumption based model. and the last quarter we had a key metric up 19%. we continue to make great progress in all of the key focus areas where we drive innovation for our customers. whether it's high performance compute, hyper converge or big data storage but also what i was really

pleased about is the growth we saw in an intelligent edge we believe intelligent edge is the next big opportunity where the cloud has to move where the data is created. that business is up 4% but we grew in all geography double digits. we saw an impact on our supply chain given by commodity restraints and also weaker because of the coronavirus but that said our compute performance was in line with what we saw on the market, or actually better, because our performance was better than some of our competitors we have to get through this period of time, and then obviously continues to drive the hpe platform service experiences that customers have demanded. >> i hear that but i'm hoping you could give me a clearer view on both the pluses and minuses of this transition similarly, palo alto networks was incentivizing its sales force to chase new cloud business, which is good. but at the same time its core

business suffered. i'm wondering how much that's a similar story line to what you are seeing you talk about those strategic areas where you're looking for growth, that's happening but at the same time as that same cloud transition, a big part of what's hurting your core business perhaps, a little bit more even than it's helping the growth area? >> well, let me put this in perspective. we had solid demands we couldn't shape everything we had in our books in and a larger backlog than anticipated there's no question the crowd growth is growing but we see the other service models and significant growth as well on the edge ultimately we live in a hybrid world and customers want a hybrid set of solutions and that's why our green lake offer

provides them solutions from the edge to the cloud, including off-brand solutions. and that's included how we go forward. we have not seen tremendous impact on the demand outside china and that's why we're confident on our ability to deliver the guidance we gave at the beginning of the year on eps. >> antonio, i want to go back to the supply chain constraints at the moment given the fact the company is exposed to china in part through its supply chain, how are things playing out in terms of coronavirus and the impact there? and given the fact we're talking about an outbreak on the heelgz of all of the trade war dynamics that played out last year, are you considering changes to your supply chain in general? >> yes, obviously, the coronavirus is having a short-term impact and we're working with each of our suppliers to navigate through this period. i have to say all of our suppliers are back online. some of them way above the 50% mark

some are continuing to improve but the good news is that all of our suppliers are back online. let's remind ourself this is a very lengthy supply chain. even our supplier chains are dependent on all suppliers, sometimes we call tier two or three suppliers. but we have a global supply chain. to give a perspective, morgan, we ship three servers every ten seconds. when you go through an impact like this, it takes a little bit of time to re-energize, reactivate that supply chain but we saw movement on the momentum we have to work with them, the in and out, and we have plans to get through it and also with our footprint we're able to move production and products across our global footprint. >> that's helpful perspective on the supply side. finally, tell us about demand. you did say that there was some trouble closing in deals and maybe that was coronavirus

related. you said just now that you don't see tremendous impact on demand outside of china, but give us some color on what kind of impact you are seeing and what, if anything, you can say you expect to tip those customers over to the side of going ahead and signing the deals. >> one i am uncomfortable about, as i said earlier, we had what are called stated demands in our q1 and unfortunately we couldn't fill all of the demand in q1 and that's because of the back log we had not anticipated for now still steady we see the demand continue because of the month of data we are creating every single day, we see significant momentum in ai, machine learning, big analytical type solutions as well as connectivity solutions that's why our robo portfolio is so powerful, you can provide

connectivity on the edge and right type of computing on the edge as well we feel pretty good about that we will see what happens the next few weeks but so far, so good in china, a little bit of a different story, as you said at the end of q1 we saw the outbreak of the coronavirus and back up in the fact they were on chinese new year, lunar new year vacation, we expected a little shorter-term impact there. but we have a unique advantage in china, our joint venture with a partner in china who's done very, very well. and that's why in q1 we recorded record-breaking earning interest i feel pretty good eventually our partners will get back to where three need to be so far we don't see a tremendous impact on the rest of the work because of the data and because of the needs on this visual transformation journey the customers are going on. >> antonio, we appreciate every little piece of data you're able to give us on this complicated

and just confounding situation that continues to unfold antonio neri, ceo of hewlett-packard enterprise. >> thank you where do we stand nearly two hours into today's trade stocks are bouncing back dow's up about 2%. s&p up 1.7%, 30.53 the level there. higher for the nasdaq as well. all of the sectors in the s&p are in green, led by health care s s pp pp so you can quickly check the markets? yeah, actually i'm taking one 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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value f's tech oven thinks he found the next tesla. david is joining us with some highlights. >> it's an interesting story and one we would be talking about a lot more if not for the obvious conditions nicola corporations is saying there's a global initiative in transportation solutions they will be making a lot of trucks and hydrogen fuel cells that power them and places they will be able to stop to refuel those cells. that's the plan. the company merged into a stack of veiq. other spring funds, fidelity, contributed over $500 million, $525 million in a pipe of private investment and public

equity at $10 a share. they raised a lot of money they have a lot of partners taking a different approach, as tesla, which makes all of its things in house. i did ask the company's ceo trevor milton, about that approach. >> what tesla's done is done everything in-house themselves nikola took a dirpt aetch pro- i didn't have tens of millions of dollars to do everything myself so we went out to the biggest players in the world, access to tens of billions of dollars. i said look, this is what we need, we will share the ip with you. we went to barb and nell and all of these different groups and said let's build this stuff. lucky enough when we first started it was a science project in 2015, 2016, when people didn't believe zero emission will work. all of these people jumped in saying we want to promote zero

emission but we don't know if it will work. so we gained actual across the board on that. if you do that today, nobody would sign up because they know the technology works so we have a piece of all of the ip and biggest suppliers paying for our research and development so we don't have to spend tens of billions of dollars. >> but these guys are late, they're way behind especially how fast we're pricing carbon and emissions regulation trevor is way ahead with the first zero emission, hydrogen fuel cell, 100% electric drive train core, which can work on large trucks and small trucks. >> but you're splitting your ip with these very large companies. conceivably you would have to be the leader because at some point if someone comes along, the technology will be available to them. >> we're an energy technology

company. people say, wow, you build these beautiful trucks it is true we have the most beautiful advanced semi trucks in history. but we're an energy technology company, and why is that important? as you scale up, these people will dump billions of dollars into trucking. we didn't want to just be selling a product where someone can come in and build it cheaper. our moat or essentially what sets us apart from everyone is we're setting up the largest hydrogen network in the world, 700 stations every truck sold by our competitors will fill at our stations that's what is important i hope everyone sells hydrogen trucks and competes and builds trucks cheaper than we do. >> the first move is we're amortizing the cost of building the network with the trucks on order. once we build these stations, it will be interesting to see if there's an overbuild at all. in the first move advantage is we have the higher infrastructure so that's different than just selling trucks. >> what do you view -- you're a

long-term investor, having known you for many years how long do you expect the value, the spring fund to be involved what do you see in terms of gestation period, getting to preterm cash flow positive and when you would potentially invest in it >> i mean, this is $100 billion company. >> $100 billion company? >> because it's solving the biggest problem, decarbonizing transport fuel that's the biggest problem honestly, that's the hardest thing to do. so the next $100 billion company will be this it's going to be a capital intensive energy company that solves the biggest problem it's not going to be doordash or snowflake. >> and it needs to consume a lot of capital to reach that kind of valuation. >> right. >> is it going to be there >> well, we just did a pretty good deal yesterday. >> yeah, we did. >> one thing i think that's interesting is people look at the amount, how much these

hydrogen stations cost to build. it's unique with nikola because we don't build them until the truck route is sold. anheuser-busch placed a large order, $800 million order with nikola we're about to announce orders many times bigger than that. what that means is we'll take a route, they will put 100 trucks on it and we will go build the hydro station for that money so the million dollars comes to us we sign a lease for a mile or 700,000 miles, depends on the application. we get $700,000 to $1 million on every truck we sell. everyone else in the market only gets the cost of the truck, $100,000 daimler, $100,000. that's all they get. we don't we get a million we're an energy tech company that is what sets us apart, we're paying the infrastructure through the profits of the oil

companies used to get. >> spring fund is an early and active player in so-called sge a lot of questions unanswered here in terms of how the business model will evolve but they seem very excited and have the capital, at least for now, to take them where they seem to want to go >> it's fascinating. hydrogen is seen as hot in terms of one of those next-generation fuel sources we have to watch it's also kind of interesting but they're different from tesla but getting their name from the same place, knneek olah tesla. thank you. and we're currently under way with a meeting with the president and ceo of airlines. doug steven is joining us now. doug, thank you for being with us. >> good morning. i'm delighted to be here. >> before we get into the

details what you expect to be covered at the meeting today, first i want to get some context given you are an airline industry veteran you've been in key positions through 9/11, through sars, through the recession, back in 2008/2009. how would you expect this situation around coronavirus and what it's doing to passenger traffic at the airlines, how would you expect this to unfold versus some of those previous crises you've been through >> well, i think the sars crises is the most applicable i think the one thing you have reasonable certainty with is there will be an end to this i think the uncertain issue is how long will the virus be outstanding and how far will it spread i think a good, positive, certainly if you look at the u.s. large carriers that they're all led by experienced teams that have been through crises

like this. they know how to weather the storm. airlines are high fixed cost businesses so there's not many levers you have at your disposal to expand and contract during periods where demand falls off but they know what to do and i'm sural they'll weather the storm. >> the expectation is that passenger tracking data is going to be a key topic at this meeting that's taking place at the white house right now. this idea that airlines could or potentially should the administration would like to see airlines provide contact information for passengers that have been traveling internationally on their flights. we know from reports there's been a lot of pushback on that how could that develop has there ever been a precedent set in terms of some of that data being shared before >> i don't believe we did that at the time of -- at the time of sars, and i think trying to put the airlines in a position of

being the policemen, being the health care providers, i think is probably a mistake. i think if you look at what tsa and border control -- >> doug, i will interrupt you for a moment we want to get to president trump, who's speaking now. >> i will let you give a little briefing as to what we just discussed. >> thank you, mr. president. grateful to have the opportunity to meet with the leaders of our airline industry today mr. president, you said from early on that we were going to have a whole of government approach but the truth is, as evidenced by all of these great industry leaders, it's really a whole of america approach the american people deserve to know that according to all of our experts, the risk to the average american contracting the coronavirus remains low. and that's largely owing to your decision, mr. president, to suspend all travel from china

into the united states and quarantine all americans that are returning. it's also owing to the tremendous cooperation of this industry, the airline industry because in addition to suspending travel from china, recently made the decision to designate as do not travel certain areas of italy, certain areas of south korea but we also at your direction worked with this industry so that now, as of yesterday morning, all passengers on all direct flights from all airports in italy or south korea are being screened on multiple times before they board any of these airlines we're grateful for that, mr. president. i know you are and everyone here should know that we're going to continue to follow the facts and the data. dr. berks is working closely with all of our health officials to determine what additional screening might be required in the united states, or our

partners around the world. but our airlines will play a key role, mr. president, in preventing the president of this disease. and even earlier today at your direction we met with leaders of our nursing home industry to talk about the increased measures to prevent the spread of infectious disease. we sent new guidance out to nursing homes. we will be announcing later today new priority of inspections for infectiousous diseases we're detailing that we complainexplained it to the y today. also, mr. president, we will have a million tests today i spoke this morning that we're grateful for the fact the changes you made this weekend through the fda now make it possible for state health clinics as well as universities around the country to be able to conduct coronavirus tests, but we'll also be meeting this afternoon with leaders of our commercial laboratories to make

a coronavirus test more rapidly, more widely available for doctors' offices, medical clinics and consumers around the country. so mr. president, as you said, it is a whole of government approach but in a variable sense whole of america approach. i have already expressed, and i know you feel a great deal of gratitude to our partners in the industry and in the airline industry for acting on your priority to put the safety health of the american people first. >> mike, thank you very much i just want to add to mike and go a little bit further. the obama administration made a decision on testing that turned out to be very detrimental to what we're doing and we undid that decision a few days ago so that the testing can take place in a much more accurate and rapid fashion that was the decision we disagreed with i don't think we would have made it but for some reason it was

made but we've undone that decision also, when people come in from certain areas where doing checks not only at the site of takeoff but at the site of landing, so when they land in our country, we're also do, if the planes are leaving from certain destinations i might ask, doctor, i would like you to say a few words. you've been doing a fantastic job in just a short time we have not had much time but you have been doing fantastic. please. >> thank you before you came in, mr. president, we talked about which americans are most vulnerable. >> president trump invites president mike pence at the white house right now meeting with airline executives to talk about the latest in terms of prevention and safety measures, testing to try and prevent the spread of coronavirus. i want to bring doug steenland back in to continue the discussion here as we continue to monitor that event in d.c

doug, the comments just now that airlines will play a key role in preventing the spread of this disease, i realize there are limits on travel to and from certain places so far, but in general what could that look like and just how much can airlines do to boost safety in this process and with it possibly confidence for potential travelers. >> sure. i think this effort needs to be a fully cooperative, transparent effort with all of the government agencies and it needs to be really driven and guided by science and by the health care professionals you know, airlines will put right at the forefront the safety of both their employees and their customers. they're not going to do things that will endanger either of those populations. and i think they will be guided by the professions in science

and medicine as to what best they should do they will be influenced as to where they should fly. obviously, therehave been suspensions of flights into china, into korea, and into italy. we'll have to see whether that expands or not but the airlines are going to be guided and will be -- will want to cooperate to the utmost with relevant government agencies and with the medical and science professionals. >> doug steenland, thank you for bringing us your experience and expertise on this topic. just be taking a look at the airline stocks now, bit of a mixed picture. delta's trading higher everything else is, again, under pressure as we're getting additional sound from treasury secretary steven mnuchin on the coronavirus. ylan moye has that from washington. >> the treasury secretary just wrapped up a hearing here on

capitol hill after it was over i asked him given his confidence in commercial air travel, if companies were overreacting by canceling conferences and curtailing nonessential travel, he sidestepped that question but i did follow up by asking if we can expect any sort of specter specific subsidies here's what he had to say. >> one of the things we will be beginning to explore internally as to whether there should be regulatory relief from banks to companies impacted by this short term we will look at all of the economic tools the government has. >> so some of the potential options that treasury could consider could include waiving principle payments for small and medium-size businesses, perhaps show term low-cost or no-interest-loans to small and medium size businesses also some large banks are asking the fed to reduce capital requirements and ease the stress test

so all of this being negotiated and clearly looked at at the treasury in washington to figure out the best way to respond to this outbreak. >> thanks. meanwhile, european markets just closing with quite a bit of dream on the map dom chu has the breakdown. >> generally positive there. european markets moving high after the re-kate from the federal bank they expect the european central bank to announce coronavirus efforts of its own in the meantime we're getting the first look at the virus in the form of composite pmis they raised in the early breaks of the outbreak but chief economists warn, quote, dig deeper into the data and there are signs problems lie ahead expofrts of goods and services are falling at an increased rate

due to virus-related downturns and demand and increasingly widespread delays threaten future production. so among the rallies you have the airlines like you were just talking about. we've seen a growing slate of cancellations in and out of europe and asia. today german airline lufthansa told reuters they're taking action and other airlines will take action on their own so airlines are focused not only that side of the atlantic but this side as well. back to you. let's get an update with sue herera at hg. >> good morning, carl. good morning, everybody. here's what's happening at this hour the italian government is actively considering closing all schools across the country to fight the spread of the coronavirus. this would expand closures in effect in northern italy schools would stay closed at least until the middle of the month. they're also looking at banning

public events and closing cinemas and theaters nationwide. olympic organizers planning to scale back events around the olympic torch relay because of the coronavirus outbreak attendance at some events would be limited the event is scheduled to arrive in northeastern japan march 20th the officials, however, say the games will start as planned in july heavy rains causing deadly mudslides in southeastern brazil at least 16 people have died, dozens more missing. state authorities say more than 5,000 people have been forced from their homes due to the recent storms. and greek forces firing tear gas and stun grenades at migrants trying to cross the border from turkey thousands tried to enter greece illegally since turkey opened its borders earlier in the week. you're up to date. morgan, i will send it back downtown to you. >> sue herera, thank you very much the head of the imf is just moments away as the markets continue to rally.

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dow is up almost 500 points. s&p hovering around 30.50. brian jacobs joins us and jack caplan from crescent capital guys, thank you for the time always appreciate it. >> my pleasure. >> jack, knowing the fed is at least on the case, whether you agree with that or not, how

constructive can you be on days of strength? >> yeah, i think the fed is on the case other central banks are on the case i think policymakers are just trying to build a firewall between a temporary economic downdraft and any spill-over effect into the credit market. i think comments from u.s. treasury secretary mnuchin were well received. certainly i'm glad they're on that they recognize that there are going to be some companies, particularly smaller companies, that will suffer as a result of a near-term business downturn. and as long as that doesn't spill over in the credit markets, i think equity investors should be content to continue holding. >> so to hold or put fresh money to work, or is it more of a situation, brian, if you have the opportunity to reposition, to rotate, then maybe that's your game plan >> well, yes, and that's what we're doing on our team. for the most part we manage

portfolios according to client mandates oftentimes that's specialized targets of cash and a little buffer you can put to work when equity markets sell off. we've taken it partly to do that we also rotate in asset classes opposed between them we still think treasuries, even though we're 1% on the ten-year treesry, if not lower, they can still slow as a decent diversifier of an equity risk in your portfolio the correlation was around 9.4 or so and that shows it has amplified diversification benefits we think yields could move forward. we're not making an outright bet on that. i think the key thing is look for opportunities within the asset classes and not necessarily mess too much within strategic allocation. >> brian, we have to interrupt you here we want to go back to the president in the meeting with airline ceos, doing some q&a

here's the president. >> where these people are flying, it's safe to fly large portions of the world are very safe to fly we don't want to say anything other than that. we've closed down certain e sections of the world, frankly, and they have closed them also they understand it better perhaps than anybody where he, it's safe. >> are american businesses overreacting cutting down on domestic travel and telling them not to fly inside the united states >> a lot of people are doing domestic business. they're staying in this country. they feel safe if you look at the percentage, we have a very, very small percentage and big percentage we have was brought in from 40 or so people from the ship. we brought them in and immediately quarantined them but you're adding that to the numbers which we had, which are very small now what we will do as people get better, because most of these people are getting better. some are already released, some are going home some have a full 100% report

we will take them off the list but we have a very small people in this country, we have a big country. the biggest impact we had is when we took the 40-plus people. they're americans. i can say don't let them into the country but they're americans and literally stranded it was very unfair we brought them back and immediately quarantined them you add that to the numbers. but if you don't add that to the numbers but we're talking about very small numbers in the united states we've all done a very good job, all of us, and for the most part the media treated us very fairly, which i appreciated. i think it's very important. >> is there anything they should be doing differently since it's safe to fly? if you're a passenger and get on that plane, we've been told wash your hands. >> maybe dr. burks, and then maybe you can say something. >> we're always saying the common sense of washing your hands, not touching your face

and ensuring if you touched anything, you go and wash your hands again. 20 seconds with soup, hand sanitizers also work but i was reassured to hear the airlines talk about their cleaning procedures and three levels of cleaning procedures, because i think that will be reassuring to the american public. >> and i haven't touched my face in weeks, weeks! i miss it. >> mr. president, would you do anything to address some of the concerns of maybe travelers who booked their flight and they might be coming up on a trip and might have to make rearrangements >> doc, what would you say about that >> we just issued, put out a fair settlement reap thely book their travel in advance and if they find they want to change that later, we are figuring out ways to make sure there's flexibility. >> oscar, how do you handle that you have a lot of people booked and now -- >> this is a time unprecedented

in our history that we need to be absolutely understanding of people's travel plans. like doug and most of the airlines, we are taking all appropriate measures to make sure our customers get the best treatment. >> i think people will be very impressed with what the airlines do. >> mr. president, you mentioned the obama era rule you had changed regarding this virus i didn't follow that. >> let's talk about it go ahead. >> bob redfield, you might speak about the last administration inserted fda jurisdiction over testing and development of tests like this. and bob changed that saturday so now as i spoke to several governors this morning, the states now have the ability to actually conduct the coronavirus test in state labs, universities laboratories and that's because of the change the president authorized bob, you just might quickly talk about the changing jurisdiction

of that that freed up more available testing. >> thank you, mr. vice president. in the past we used to be able to have laboratories that would develop what we call laboratory developed test and be able to apply them for clinical purposes in the previous administration that became regulated so now for someone to do that, they had to file with the fda -- >> that is the president doing some q&a, the vice president as well, with airline executives over the coronavirus our apologies to jack and brian. we really needed to get there for the latest from the president. and we will have them both back on soon. meantime, our sara eisen joins us back here post nine and along with the managing director of the imf from washington. >> and welcome to kristalina georgieva, the managing director of the imf good to see you. >> thank you for having me, sara. >> fresh off that news conference where you and world

bank president talked about a coordinated response to coronavirus. you said there's a serious threat to people and economic growth what are you at the imf doing about it >> at the imf we have mobilized our financial capacity to respond to this emergency in a very fast manner we have about $50 billion that are available to low-income countries and to emerging market economies that can get access to this money without a program with the funds, in other words, immediately. we are also bringing together the membership for coordinated global response. we recognize the criticality to pay attention to the weaker

countries, those were health systems are not tuned to respond to that emergency. and we are mobilizing with the world bank to create the global coordination mechanism, so as we necessary protective equipments and give a chance to poor countries to be better equipped, that production capacity to come up with the masks and the respirators is geared up so the -- the demand and the supply can match. >> so, i just want to underscore this $50 billion because this is new. you are breaking this with us. so tell us exactly where that money is going who has asked for it, if any countries have asked for it, and how it will be received. >> so at this point, the $40

billion is for countries that are middle income. and they can approach and receive the funding immediately. more important is the $10 billion that are accessible for low-income countries because most of this money is interest-free. we have signaled to the membership and what we are doing right now is reviewing country by country what are the financial needs and engaging with this country to make sure that they are aware of this resource and we can immediately respond to them. so we are in an early stage of engagement, but i can assure you that we will attack very quickly as requests come what the countries would use the money for, we would like very much to see them prioritizing first and foremost urgently beefing up their health service

capacity so lives are saved and suffering is reduced and secondly, to use it for fiscal measures that are well targeted to households, businesses that are most directly impacted by the crisis. >> do you think we need to see those fiscal measures, stimulus here in the united states? >> we believe that all countries should look seriously into the urgency to beef up health systems response and, yes, that would be money very well spent everywhere and we also think it is now the time to put in place precautionary measures should the outbreak become more severe. in other words, do we have credit lines for -- are we thinking of funding workers that cannot go to work because their kids are at home

and these are not measures that we should come with later. we should be prepared now. >> in the meantime, we've got some monetary stimulus in the surprise double rate cut from the federal reserve. there's a big question about whether it was the right time, whether it was the right move and whether it can actually accomplish anything when what we really need is treatment, vaccines, testing for this virus. where do you come down on this debate >> where we come down is in terms of how we set priorities first, health systems and response second, fiscal measures to ease the impact on businesses and households make sure that we are thinking about it now third, liquidity we do want to be sure that credit lines will be available

when they are needed and in that sense, this is the list of priorities we have outlined today to the whole membership >> what should the ecb do? if you're talking about global coordinated action and the fed made a move to cut rates, what would your advice be for your predecessor christine lagarde who is now running that institution? >> well, christine has her hands on the wheel very firmly at the ecb. and so she actually brought up today at the call a very important issue, which is make sure that you have contingency planning for the functioning of the financial system in case people stay home she is looking very carefully at the developments in the eurozone, and i am confident that as the situation evolves, she would make the right call. >> what kind of depth of economic weakness are you looking at you told reporters in the news

conference that 2020 looks to be weaker than 2019 how deep will this go? >> what we look at are more benign scenario and a more adverse scenario in a more benign scenario, the outbreak would be relatively short lived, and the impact would be felt primarily first quarter, second quarter followed by recovery. in a more adverse scenario, the outbreak would be a more profound it would go beyond the countries today. we have 75 countries impacted. it would become truly global there would be more retrenchment in a country the impact would look more like china than not. so where we would lend between those two scenarios, we are

looking very carefully at the da data, and listen to the epidemiologists to get a handle on what projection we should make but they are so many things in between those to the more benign and really adverse in which we would have a long er drop in growth and a slower recovery verse u.s. a shorter drop and a faster recovery. we do need to exercise some -- and accumulate enough bottom-up data from countries and also source more information from the experts, from the health community. meanwhile, though, preparedness and action are absolutely critical it's better to do more than not enough and focus has to be on people.

>> and coordination, which is a big point of the imf always. it's a big point you've made with the world bank, with the finance ministers, the central bankers. where it's not happening is really with the leaders. we haven't seen, for instance, president trump and president xi in some sort of public way addressing this crisis together. why is that not happening and does that concern you? >> i am actually concentrating more on what is happening and what is happening is this morning we had all ministers and central bank governors united. and with consensus on coordinated action and i do believe that what we need to all focus on is to actually deliver on this urgency. keep our eyes on that ball >> finally, you guys have a pretty good handle on what's going on in china. you have the lines of communication open there what's your expectation as to

when we're going to see those factories and supply chains back online in any kind of normal way? >> well, there is some good news coming from china in that regard capacity is up to around 60% we heard today from the governor that they are aiming by the end of the month to go up to 90% of course, we have to caveat that subject to no revival of the epidemic as factories reopen, but at this point, the news from china is, there is a stepping up in production. there would be a negative impact on this year's growth for china. the leadership there now, it is in our expectation, but a stepping up in china, good for china. good for the rest of the world

>> and finally, i know it's early to assess the damage economically, but do you think this is the sort of thing that could tip the united states into recession, if the virus continues to spread here >> at this point, what we see are two pieces of relatively comforting news. one, the financial system is holding. we are not seeing a -- all the investment we've done over the last ten years is paying off and, two, there is quite substantial gearing up on measures so we can slow down the impact and reduce it and that is, i think, our eyes have to be on what can we do to prevent a more adverse impact. and big part of it is actually confidence building by communicating clearly where we

are, what we know, what we don't know and act on that basis. lean forward >> we appreciate you doing that here with us today the imf managing director. announcing, carl, that big rescue package she said in the spirits of doing what we can with the information we know $50 billion. >> thank you, sara let's get to the judge carl, thanks once again, your money front and center today welcome to the "halftime report." one day up, one day down that's what we've got again. stocks surging on joe biden's big super tuesday win. we're focusing again on the impact of the coronavirus on this market. here to help me do that are investment committee is here as always joe terranova. welcome back john nijairian, steve weis, steve liesman, senior economics reporter i want to get right to the action