breaking news, a global market sell off. dow futures go into a quadruple loss as saudi arabia and russia trigger what could be a global oil price war. crude on track for the worst day since the first gulf war the yield a half a point away from turning negative. it's monday, march 9, 2020 and "worldwide exchange" begins right now.

>> announcer: this is cnbc breaking news. >> i'm courtney reagan in this morning. we begin with breaking news. a global market sell off under way. dow futures pointing to a drop of 1300 points at the open but futures have hit their daily limit down across the board. that means stocks could open much lower than what's indicated right now here on the screen you can see the s&p 500 is indicated lower by 151 points and the dow by 1300. bond spark is hitting again. the ten year yield is sitting above half a percent this new record lows we're hitting here nearly across the board this morning hovering maybe just above the record lows but look at the 30-year bond, under 1%

that's happening for the first time ever. at 0.925%. now all of this is happening as theprice of crude oil has crashed. and that is not an ap exaggeration oil is hitting its lowest levels since 2014 as saudi arabia announces a massive production ramp up and price cut. crude is now on pace for its worst day since the start of the first gulf war back in 1991 when it lost 33% in a single session. and the iea just out with the latest report cutting its 2020 global oil demand by almost 1 million barrels per day due to the coronavirus. the group sees its first contraction in oil demand since 2009 you can see the wti crude price is just about $32, down almost 22% at this point. steve steep losses in asia overnight.

we'll send it to steve in london with the latest. steve, what's going on >> reporter: courtney thank you i'm careful when i use the word crash, i've been in the markets for over three decades but today we are seeing an oil market crash, which is leading a host of other asset classes into very, very extreme negative territory. we saw it in the asia markets overnight and we're seeing it in the european indexes this is the euro stock 600 around 595 stocks are in negative territory at the moment let me show you the individuals and how we're faring across the continent. i want to show you the footsie 100. we can come to that in a few moments time the xetra is down 6.8% i've seen extreme moves from the banking sector to the key

industrial and the airlines under vast pressure as well. a similar story on the cac it took a long while today for stocks in this italy, which is the epicenter of european concern and over in france to open now on a sectoral bases i alluded to the fact that the oil is under pressure. 15% lower for the oil and gas sector that's a rally off our lows. that's a rally off our lows off the last hour as well. the best performing sectors, real estate, food and beverage, health care all down this is now not just about supply issues in the market, it's about concerns about demand, concerns about recession. i've been told to wrap but i want to show you one more board, the european oil majors, bp off the low, down 18%. the same with raw dutch shell and i've seen the analysts red pen coming out left, right and

center back to you. >> big moves thank you for bringing those to us steve we'll move back to this morning's developing story and pick up where steve left off, on the first possible oil price war since 2014 saudi arabia saying it will boost production and slash prices after russia torpedoed an agreement last week to stabilize prices due to falloff from the coronavirus outbreak the saudi's will reportedly pump 10 million barrels a day, about 3,000 more than it's normally producing and sell at discounts in key markets in an apparent attempt to punish russia hadley joining us now. it's been a remarkable several days walk us through. how did we get to where we are now?

>> no doubt about it think it's important today to point out this looks less like punishing russia than it does on u.s. shale this could be the monster playing out between saudi arabia and russia you have to remember when it comes to the saudi arabia/russia relationship russia is sitting pretty pretty to be honest this has given the rise of shale production, the sanctions on russia, they have a more diversified economy. this is going to be interesting. given the context surrounding what it means to saudi arabia when you have prices sitting where they are today, scrcrude t 32 earlier it may be around $80 per barrel in russia but they have reserves

of 500 billion to play with. they can play the game a lot longer and the agreement from a few years ago is an agreement that could come and go. the conversations i'm having with folks saying listen this isn't a real problem between saudi arabia and russia, it just doesn't work for us at this moment. >> i want to walk back just a moment because i know both of us have sort of red a lot and taken a lot of time to understand what's going on here for those that may be just sort of catching up to what happened over the weekend, what is this about between saudi arabia, russia and perhaps the u.s. shale producers as you bring up? is this about trying to win market share at whatever that price may be >> this is the question, isn't it because at the end of the day, one has to wonder whether saudi arabia really understood that prices were going to fall off a cliff with this decision the decision basically to cut the prices, to up production no doubt about it, it hurts russia a bit but as i say, when we're

talking about their break even price at 42, $43 a barrel they're sitting pretty for a while and saudi arabia can play for a while because they have about $500 million in reserves the implications of this, coronavirus, the demand is tightening and there's going to be a tighter space in which to play with, particularly with regard to u.s. shale, when we come to the saudi/russia relationship i would take a step back, yes, this is a his or tto agreement, something folks thought would ever happen but the folks i'm speaking to say that doesn't mean they're not going to come back to the table eventually >> thank you i have a feeling it's going to be a busy several days and weeks to come for you. >> joining us now is a senior european economist thank you for being here this morning. hadley kind of ran down what's

going on, how we got to where we are and someof the consequences but truly, when you're looking at the world global oil supply and see numbers like we're seeing today, down 20, 21, 22% for the price of oil what are the global consequences of a plunge like this? >> to be frank, this is the perfect and probably the best form of stimulus for the global economy we could have asked for. no central bank cutting rates could have provided such a stimulus this is negative for investors and markets but good for the consumers of global energy worldwide. >> can consumers consume enough es crater likenegative impacts this >> it's not about that it's about reducing home energy

costs. reducing the costs of transportation you know for the airline industry, for example,s this a fantastic boost at a time when demand is obviously very, very weak we don't know how long this disagreement between opec members is going to last is it going to last as long as the coronavirus outbreak we don't know at this stage. but i think this is a very helpful form of stimulus for the global economy. >> you're looking at some of these oil companies that have an awful lot of debt and really need the price of oil to be higher than this, frankly, to have their business moving forward at a profitable clip isn't that, potentially, a dangerous ripple effect of seeing prices fall and fall so quickly? >> absolutely. i'm sure later today when u.s. markets open we will see high yield spreads broaden out quite a bit in response to potentially higher default risks but i think -- we don't know how

long this will last. we know we're seeing a market that is clearly missing a great deal of demand and fears over demand more generally are rife with this stage. so today's price is not going to be the clearing price in a few month's time when demand gets back to normal >> we have a lot going on, this oil news is front and center based on the time line of what's happening in the last, say, 24 hours. of course, we have the coronavirus, which is continuing to add up the number of cases worldwide, particularly here in the u.s. you're watching the yield on the ten year and the 30 year fall frankly to levels we've never seen before. as you look at the global economies and if you are chairman powell, what do you think he should be thinking and what should the central bank be doing going forward here to help support the u.s. economy >> well, chairman powell and the rest of the federal reserve will

be very aware the market is still pricing in more interest rate cuts later this year, potentially also a new form of easing as well potentially. and what he has to do is take a judgment -- make a judgment on how significant this hit to demand will be and whether it's going to be temporary or permanent. because if the global economy rebounds very quickly, say by the summer, are they about to undo a lot of the easing they've already started and could carry on with? i don't think so this is going to remain for quite some time. the risk is they end up overdoing it and causing an overheating situation further down the road. of course, today we're more focussed on weak demand. >> there's a lot of risks i think still to come. thank you for joining us this morning on "worldwide exchange". >> when we come back, an update on the global coronavirus crisis, including a warning from

washington over the cruise line industry we speak with a former saudi executive. here's a look at some of the worst performers in the s&p 500. a very busy hour still ahead "worldwide exchange" will be right back ♪ ♪ ♪ don't just plan to retire.

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if you're just waking up, crude oil, it's collapsing as

demand drops dramatically amid the global coronavirus outbreak and opec and russia fail to reach a deal on production crude down more than 21% as oil plunges u.s. equity futures are doing the same they're trading limit down, meaning they cannot drop any more dow futures indicating a drop of 1300 points. the s&p 500 down more than 151 points with those limit down in place. right now we'll see what happens at the open. the coronavirus outbreak here in the u.s. continues to intensify, that's part of the issue here with equities. the number of cases globally now over 100,000 this is serious stuff. >> it is the number of virus cases here in the u.s. has now topped 500 the death toll stands at at least 21 oregon joined a growing number of states to declare emergencies after the state confirmed its

cases doubled to 14. new york also declaring a state of emergency over the weekend. over seas italy announced several provinces are put in lockdown as the virus spreads there. the measures affect about a quarter of the population and go to april the death toll there is 233 at least. back here in the states. the u.s. state department has issued a stern warning telling americans not to go on cruises amid the coronavirus outbreak. they said passengers who have purchased tickets should contact the cruise lines directly. it says the citizens cannot rely on u.s. government to intervene. they're saying if you go on the cruise cruisers, you can't count on them if it's quarantined >> we're looking to get more painful here when the opening

bell sounds. we'll break down the three charts you need to watch at the opening bell, coming up next checking out gold prices right now things for that safe haven not looking safe right now for investors. gold down a third of a percent as we go to break, a look at what we can expect at the open in terms of the new york stock exchange if the s&p 500 drops 7%, trading halts for 15 minutes if it falls 13%, it halts for another 15 minutes if it falls 20%, trading halts for the remainder of the day stay tuned you're watching "worldwide exchange" on cnbc. taxes?

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doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. welcome back to "worldwide exchange". give you a quick look at the dow futures. we are at least slightly off the lows here but still down 1270 points on the dow futures. the s&p 500 still there with the limit down, down 151 points here let's get a quick check on the ten year yield continues to slide here as investors are expressing concern about what's ahead for the u.s. and global economy the yield on the ten year is hovering just above 0.5% at 0.518% joining me now is john krinsky

you have a lot to walk through for us but you're going to start with futures. this is an important day what is the chart telling you? >> yes, you can see here we've seen about a 17% draw down down to the limit down the next level that we're watching is really this 27, 30 which coin sides with just about the june 2019 low. if we were to get down there, that would represent almost a perfect 20% decline off the highest. we haven't seen a 20% draw down on a closing basis since march of '09 so it'll be an important level as we get towards the close today. also note the 2730 if you attract the amount of volume over the last two years, that 2730 is the amount or most amount of volume has traded over the last two years so a lot of important levels at that range. >> and a kilo levey low level wd

to watch what else should we watch today? >> this is the 20 year bond etf. it's the most heavily traded etf that tracks futures. i know we've seen a big uptrend the last couple of years interestingly, the high on friday, if you convert that to the ten year treasury yield, the low is about 6.6%. we know the s&p bottomed march 6, 2009. there are a lot of similarities there. we're not going to get to that level. on friday, the amount of volume was about $12 billion, that far and away is the highest level on record for the etf back to 2002 we'll meet or exceed that today. so we're getting to blow off levels we thought it might have been friday, looks like we have to

wait another day or two. we'll see if that coincides with the short term in equities >> your last chart here has to do with the price of oil of course, this is a big one for us to watch today, over the last 24 hours, incredible moves here. >> right the move on friday in bonds was one of the biggest bond moves we've seen in history. crude one of the biggest moves since 1991 as far as what we're looking at here, we have this long-term trend line that goes back to 1991 that low is actually about $30 where we did bottom last night if we can't hold that, we're looking at the 2016 low in crude, which was about $26 so we do have some levels of support here this type of move is really unprecedented so we have to take it hour by hour and see what we get. our sense is we do find some support in that 26 to 30 range

over the next couple days and weeks. but we'll see if we can actually move back higher, into the upper 30s from there. >> it's interesting to note, it hasn't been that long since we were in the 30 handle but the move lower is -- >> the magnitude is shock and awe for sure. >> absolutely. we haven't seen a move like this since 1991 thank you for being with us and going through three important charts still to come, more on this morning's oil slide and possible price war. first, as treasury yields plunge look at the bank names. shares getting crushed citigroup down 8%. morgan standalonely 8.5% and goldman sachs nearly 8% as well and most of that debt is actually from credit cards. it's just not right. but with sofi, you can get your credit cards right

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breaking news, the global market selloff spills into the trading week with futures pointing to a steep drop at the open that selling coming as an oil price war erupts after opec and russia fail to strike an output agreement and energy demand drops amid the coronavirus outbreak crude prices are crashing. adding to this trading day, the ten year treasury yield falling to all-time lows we have the global team coverage only cnbc can bring you as the second half of "worldwide exchange" starts right now

>> announcer: this is cnbc breaking news. market selloff welcome back what a day it is already kicking off the second half of the hour with breaking news, a global market sell-off under way. dow futures pointing to a drop of 1300 points at the open but futures have actually hit their daily limit downs across the board. so that means stocks could actually open much lower than what's indicated on the screen right now futures are indicated lower on the dow by about 1300 points the s&p 500 down 151 points. volatility, investor uncertainty, all of this sparking a rally in bonds once again. prices in yields move inversely. the ten year yield dropping to a record low here we are at 0.508%. check out the 30 yearlong-dated

bond at.90% for the first time ever this is a mov we have to follow all day long and all of this is happening as the price of crude has crashed and we don't say that lightly. oil is hitting its lowest levels since 2014, as saudi arabia announces a massive production ramp up and price cut. crude now on pace for its worst day since the start of the first gulf war that was back in 1991. when wti lost 33% in a single session. we're down 21% at this point right now, at just under $33 a barrel steep losses in asia overnight and red arrows across the screen in europe in early trading p we have team market coverage for you around the world matt, we're going to kick it off with you in singapore. >> hi there. significant weakness across the

asian markets today in the order of about 3 to 7% for the markets. those were the larger exposure to the oil patch, much worse china marketsc closing down by about 3% despite export data for january and february coming in weak. singapore down by 6% japan was hard hit on the back of a surge that we are continuing to see in the japanese yen, the safe haven flows now below 103 pushing the nikkei down 5% of course a stronger yen bad for japanese equities. and the bank of japan governor saying the bank will react if needed this market exposed to the energy and oil patch down by

7.33%. the biggest one day decline we've seen for the australian markets since october of 2008. steve was telling you about the oil stocks in london earlier this is the damage on the oil stocks in australia. oil surge down 35% santos down 27% in one day back to you. >> incredible moves. we'll move to the early trading in europe. steve joins us now from london hi, steve. >> courtney, so an hour and a half into trade here in europe and we're seen a blood bath. some of our viewers have been short the market and have nailed these moves as well. i can tell you the screen behind me, this is the euro stock 600 of those 600 we have three in positive territory, two unchanged and the other 595 in negative territory we are still seeing enormous declines across the continent. let me show you the individual

country by country breakdown again if you joined us half an hour ago you would see we're off our lows and still talking about extreme moves to the down side the ftse 100 trading at 6100 that had a 59 handle at the lows of the session p the xetra dax with the likes of germany and deutsch bank all under pressure then you have the cac in france down by 6.3% but the concerns in europe, the coronavirus in italy, sending that market down by 9% >> big moves thank you for following those for us, steve. we'll continue to check back in with you throughout the day. now to this morning's story and the oil market the oil market sinking to its lowest level since early 2016. on track for the worst day since

the start of the first gulf war in 1991, where it lost more than 30% in a single session. we're going to get details on just how we got here >> so let's start with thursday. this is when members of the core opec cartel, led by saudi arabia agreed in principle to a cut of 1.5 million barrels a day. this was to prop up crude in the wake of falling demand due to the coronavirus. on friday that was proposal was presented to allies of opec, that group led by russia now eyeing an opportunity to hit u.s. shale producers and grab market shale torpedos the agreement. and also the price at which they sell to global markets the press secretary for russia's

largest oil producer said u.s. oil producer would have been left by a cut, adding russia's relationship with saudi arabia has become, quote, meaningless on saturday the saudis opened the gate to what could be an all out price war. they'll reportedly ramp up oil production to 10 million barrels a day, some 300,000 more than it's producing, and sell at a discount of almost 20% in key markets in an effort to perhaps punish russian oil producers saudi arabia the far global cost leader when it comes to production and has the capacity to produce 12.5 million barrels a day. russia has built up a $170 billion fund from excess oil sales said it can tap that to offset any short term price war.

the last price war was back in 2014 when crude was trading near $100 a barrel. it was also when the saudis were accused of manipulating prices for reasons, the economy was slow after rebounding from the financial crisis and also when the u.s. and canadian shale industry began to boom flooding the world with new supply of oil. instead of capping production to stabilize prices, saudi arabia maintained production and used the excuse of lower prices to gain more market share lower prices went, the more other countries were squeezed out of the market while saudi arabia again the global production cost leader reaped the rewards. this time we'll have to see who the winners and losers are. >> today is a historic day thank you for running us through that time line joining me now president sada al

husseini thank you for being with us here today. it is a historic day we have seen global equity markets around the world react sharply. we're seeing some of the european forces down 8%, 10%, partly in reaction to what's going on with the price of oil so help us put it all in context. why is this so important what are the global consequences when you see the price of oil fall 20% >> well, good morning, courtney. i think we have to put all of this in context. this is a temporary transition yes, we have a lot of problems with the coronavirus, with the tariff issues between the u.s. and china, with gdp being softer than historical levels, trade across the world, brexit there are a lot of issues.

and oil is just one of them. i think the t in the technical team that works in support of opec and non-opec did the best job they could at forecasting what additional cut would be required that's 1.5 million over the 2.1 million that had been agreed to in december so that's quite a large cut. and you can imagine why they would be a lot of discussion as to whether this was too much or not enough in any case, as far as the kingdom is concerned, the kingdom has been here before we worked diligently to sustain stable prices. and, you know, if the kingdom produces over 10, the kingdom took a voluntary cut of 400,000 barrels at the time of the previous arrangements between opec and non-opec. so going up from 9.7 to just over 10 is just going back to where the kingdom was supposed

to be all along anyway so i don't see this notion of wars and conflicts it's trying to sustain the regulatory function of opec and that requires a lot more cooperation than just saudi arabia by itself. >> there's a lot of strategy going on here but it does feel like the global markets are in the cross hairs. it doesn't sound like you're that concerned but investors really are here today. what's the disconnect if you think this is not that big of a deal from where we've been previously >> well, it is a big deal for the financial markets for sure and it's going to be a big deal in the u.s. where the rig levels that used to be up around 800 and so many rigs back in the 2019 are down to 670 rigs, this is oil rigs currently, and more important still, the well

completions, which used to be about 1,400 wells per month are down to 1,000 currently. and the u.s. productions at these levels, and the historical times, recent times, 2015, 2016, dropped down to -- from 9.5 million to 8.5 so yeah, there are a lot of concerns, definitely but i think we should remember that this is a transition. you know, the virus is here. but it's not going to last forever. the tariff issues should be resolved between the u.s. and china. and gdp will recover so it's a transition that we just have to work our way through. >> well, it may end up being a transition but it is a very serious and very big day for investors around the world thank you for joining us this morning with your thoughts. >> thank you. we'll stick with the sell off in crude seeing plenty of red with energy companies as a result of this very big drop. and really oil companies that

trade around the world let's look at some of the big names. exxon mobile down 10%. bp 17% marathon oil down by 20% this morning. for more on this we're joined on the news line by cnbc contribute tim seymour. good to have you on this morning especially with your expertise in the area of russia. it's been a big weekend and 48 hours or so for the global oil markets. who is a winner here is russia a winner here? >> not so good morning, courtney i think putin is playing a solid game of chess. i would make, you know, the argument that he's assessed the saudis in a bit of disarray that this is an important time to exert some pain on the global oil market where russia is maybe in a better position to be resilient here so again i think if you look at

just where russia has played a role, cooperating with opec over the last five years largely, although there have been these moments, i think russia ultimately is obviously going to stand in there and do what's best for russia. but if you look at the russian budget fiscally at least, russia is in a much better position to play a game of poker here or a game of chess, and whatever game this is. but their budget breaks even at about $42, saudi's fiscal break even is about 85 so while saudi has more swing production and more potential to lift production and others and therefore bring more volume on to offset, it's not enough to negate the overall loss for them if you look at where russia's economy is in -- you know, historically and periods we've had oil prices plummet

remember russia is competitively in a much better place with a devalued ruble and where they're collecting dollars on their expor exports. can russia stand in here and play a game where they exert some spapain and -- i don't know this is about going after u.s. shale. but we know the u.s. shale industry is really only cash positive at $50 a barrel and has recently become cash flow positive i think this is a case where the -- again, the tactical gamesmanship might be, i think russia is certainly in a position to continue to play this game. >> and you bring up some really important points here. it may be a game, quote, unquote for russia, but it's serious business for investors and u.s. oil companies. if we're talking cash flow

positive at levels we're far away from, what does it mean for the oil companies? can they actually with stand this, tim? >> i think the large integrated oil companies can. i think if you look at some of the kind of mid tier names, i think this is where you start to struggle there's no question capital markets are not as open to the ent sector in the u.s. as they were in 2016 when the oil price started to get near these levels i think while the sector balance futures are in better shape, i think banks are pairing back exposure as we talk about the capital markets aren't sustained. investments haven't worked out for investors, i think bankruptcy risk needs to be evaluated. on a morning like today there's enough drama but this is the black swan on top of the black swan and the energy, credit markets

as a bit of a lynch pin is what markets are doing today. credit had held in at some some point through the first couple phases of the coronavirus dynamic. i think we're seeing where they can go and this hasn't been a credit crisis yet. but eventually when you get a growth and then a demand crisis and you start to put pressure on credits and those further up the credit curve, this is where you go >> tim, you know we got to let you go here. but i have to ask quickly here what advice do you have for investors that may be tuning in this morning and getting worried? is there anything investors could or should be doing >> this is a difficult market to trade through. this reminds me of august 2011 where we had the plus minus 5% moves in the market before at some point finding really

oversold conditions. i think you have to evaluate which parts of your portfolio have exposure to credit. i'm not sure where you have that -- i'm not sure we've gotten through really a credit assessment yet i can just tell you what you shouldn't be doing is selling great companies that are balance sheet supported in this environment. often people are cutting the flowers and keeping the weeds. this is one of those days. be careful to be not wholesale throwing companies out of your portfolio that aren't down so much, probably a reason. >> a lot of homework to be done by a lot of investors as you bring out the flowers and the weeds there. thank you for joining us this morning. coming up, senator ted cruz immateri implements a self-quarantine as the coronavirus continues. plus we look at stocks here in the u.s. poised for a steep drop

futures trading, limit down right now, s&p 500 indicating a lower open by 151 points dow jones industrial average down 1303 points, there at limit down nasdaq off by 434 points. looking at the faang stocks specifically, more red across that board facebook down by almost 5% apple down by almost 6%. and alphabet, the parent company of google down by more than 7% "worldwide exchange" is back in just a moment. ♪ don't just plan to retire. plan to live. an annuity helps cover your essential monthly expenses, so you're free to live the life you want. find out how an annuity can give you lifetime income at protectedincome.org

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if you're just waking up, crude oil is collapsing. that is not an exaggeration. down 20% as demand drops dramatically amid the global coronavirus outbreak and opec and russia failing to reach a deal on production as oil plunges, u.s. equity futures they're doing the same we're now trading limit down

meaning, these numbers, these indexes, the futures contracts cannot drop anymore. dow futures i sandicating a droo 1300 at the open the s&p 500 indicating a drop of 151 points they could fall further because these are just the limit down numbers. it could be a different story and it could get worse when things open. the number of coronavirus cases here in the u.s. has topped 500 at least 21 deaths attributable to the outbreak. we're joined with the latest on the virus. >> amid the rising virus numbers here in the u.s., organizers of south by southwest has announced the annual conference is cancelled due to concerns about the outbreak am trek is suspending service between new york and washington saying it's making that move

starting tomorrow through late may due to falling demand. sales force is the next company to ask san francisco based employees to work from home. they make the move after closing the offices in seattle and senator ted cruz has announced he's implementing a self-quarantine at his home in texas after the senator learned that he interacted with a person at the conservative political action conference that tested positive for coronavirus cruz said he's not experiencing any symptoms and medical officials told him the odds are really low that the person passed the virus onto him but nonetheless he says he is self-quarantining. >> if he was exposed to that person, there's always the possibility. there's so much we don't know about the virus still. thank you. >> sure. we'll look at futures. more steep losses are on the way today. we have the dow jones industrial average indicating a lower opening of 1303 points

s&p down by 151 points and nasdaq off by 435 points but it's unclear how big the actual losses may be when the opening bell sounds because we have the limit down situation in place right now allowing futures to basically hold where they are. they're not allowed to fall any further because of the limits in place. so let's look at what we can expect at the open in terms of the new york stock exchange circuit breaker. if the s&p 500 drops 7%, trading will halt for 15 minutes if it falls 13%, trading halts for another 15 minutes if it falls 20%, trading halts for the remainder of the day joining me now is an economic adviser at silver crest management and the managing director of global macro strategy at medley global advisers ben, patrick, thank you for joining me today ben i'm going to start with you.

we may have a lot of viewers tuning in right now that are feeling a bit anxious, a bit nervous, unsure about how to put all of this together what is your advice for an investor watching here this morning? >> it's obviously anxious and anxiety to hear in the markets but i do want to say, though, that the collapse we're seeing in bond yields and oil prices is reflective of the two die nynam of the outbreak and italy and what happened with oil plus. there may be relief in the future you don't want to react on the markets. we don't know how far and steep the drop will be when the market opens. so i say watch what the bond market is doing. when you see someone selling out in the lower yields there may be recovery in the future. >> we're watching what's going

on in the equity markets we know the fed is watching too. they gave us a surprise rate cut. they're going to be meeting again. what should they do, if anything, because the last action perhaps wasn't the right one. at least by some investors' viewpoints perhaps it induced more fear than was intended. >> the fed doesn't have a silver bullet here. the fed can help with a number of things. if the collapse in the price of oil leads to credit stress, it can help with that certainly there's room for fiscal policy as well as monetary policy in helping sustain demand through this period but there are no silver bullets when we talk about the process of supply chain disruption the fed can't wave a magic wand and make it go away. when it comes to how an investor should look at this.

hopefully you had an investmentment plan not predicated on the bull market going on forever or growth going on forever without interruption. this is the time to stick with that plan. the reason why i say that is because right now safe harbors are extremely expensive. they've been expensive throughout this entire recovery. but now they're even more so and piling into them at this moment is something where you're giving up a lot of underlying cash flow unless you think that -- i mean, what the markets -- what the bond markets are saying right now is that the fed is going to cut and it's going to never -- interest rates are never going to rise again, at least not for the next 30 years. unless we've turned into japan with a shrinking population, i don't think that's what's going to happen. so you pay a heavy price if you rush into those very expensive safe harbors right now. >> you're saying stick with your

plan previously. we're going to bring in richard steinberg. i want to bring your attention to a tweet from our own jim kramer he writes the collapse in yields and oil is signaling an imminent recession. while most stocks aren't viable, they'll get to be that soon enough at this pace. so richard, as i bring you in here and you can talk us through both strategy and psychology when you see a tweet like this from someone like jim cramer talking about a recession, what's your advice to investors who might be getting anxious let's go to richard. >> so courtney, i think first people have to breathe i think that's really important at this stage. the second thing is, you know, i -- the way i read jim's comments is our investment team

has dream stocks they want to buy at lower prices and you can let them come to you clients should stick to their plan and if they have cash, they can slowly deploy that, as jim says, because you're going to have an opportunity. one of the things we have to watch closely is the mismatch in liquidity. you have small cap and mid cap names and other names that aren't as liquid but you have liquid etfs behind them. it may create opportunity. investors should not panic and wait to see how things settle in. >> you heard the tweet, ben, from jim cramer talking about a set up for possibly a recession. what do you make of the price of oil and the implications for the broader global economy here? >> so the fall in oil is so dramatic this will put a lot of

pressure on global inflation because energy being large component of that, that's what bond yields are saying, inflation will be so benign, if not in some countries deflation. that's why it stays low. but interestingly, it creates a benign backdrop for countries in the future in other words stays low because of inflation, the recovery will be low in the future at the same time, the collapse in oil prices is to be watched, not only the inflation implication but also credit markets. i think that's what we're going to pay attention to today, the credit markets how they react. >> we're just about out of time, patrick. i want to give you the final word here, looking at the treasury market that seems to stoke a lot of fear in investors, what's your advice there? >> the treasury market is signaling there is recession risk but it's been signaling

that for the past year, over a year, once it partially inverted back in -- over a year ago so, you know, the prospect of a recession is real. the prospect of an economic shock is real. but that's not going to be the end of the world, and investors need to look through the immediate crisis. >> gentlemen, thank you for joining us it's a huge day here on cnbc thank you all. that's it for "worldwide exchange" this morning squawk box begins right now. good morning, all. global market selloff for sure this morning u.s. stock futures falling the maximum of 5%. that's triggering exchange limits we are careful when we throw around the crash word but that's what's happening watching the crude market overnight prices falling by as much as 34%. >> we'll bring you up to speed on the latest coronavirus

headlines from the lockdown in h italy over the weekend, to the spread here in the united states it's march 9, 2020, and "squawk box" begins right now. good morning, everybody. welcome to squawk box. we're live from times square i'm becky quick. our guest host today is jason str strenner we're watching futures at this hour, we are trading at limit down for the futures contract. the limit down is 1255 that implies a weaker open for the dow, down by more than 1300 points this morning even after the declines we've seen that

started racking up two w