joe. >> >> walmart consumer defensive play. >> that's the thing. keep your eye on yields. >> always. >> where they are. we have been talking an't it every day. if you have yields continue to drop it is hard for stocks to get a bump that does it for us. dow's up 258 "the exchange" starts right now. thank you, scott welcome to the "the exchange," everybody. i'm kelly evans. what a day that's all we can say lately another one of them. what a day stocks gave up the gains mid-morning on the realization that fiscal stimulus maynot be imminent futures indicated a 1,000-point rally and eamon reported a white house plan is, quote, not there right now. late ter house democrats were saying that house legislation needs to be developed and won't happen this week the cdc also saying that controlling the outbreaks in some of the parts is beyond containment efforts but the stocks and you can see there

dipping red just before noon and turned around when the president said he'll visit congress. the street realizing this is going to take time goldman sachs saying some of the fastest fiscal stimulus plans have taken nearly six months to pass and raymond james said it'sen certain so let's get to all of it with bob pisani tracking the action for us down at the nyse. bob? >> that was a terrific summary folks, you learn from the master there. what kelly is saying that the marginal mover of the market is not just coronavirus story, it is the whole situation concerning fiscal stimulus talk about it more looks more likely coming market tends to react. less likely, tends to go in the other direction. you want to talk about what the president was saying show you royal caribbean 1,000 points in the dow today. we can't figure out the earnings situation. the president started to talk late in the morning of help for the cruise line industry royal caribbeans had three

trading halts because the president implied help was coming there's fiscal stimulus and the response directly. the other ones moved, as well. we have withdrawn guidance in the travel industry. we talked about bookings jetblue, hite. just withdrawing the guidance and happening with other industries the main source of the big swings i said the inability to figure out what the "e" in the pe is. earnings how clueless the market is caterpillar. 109 to 99. moving in a 10% range on an intraday basis that doesn't happen. doesn't make any sense on a fundamental basis. only if you have no idea what caterpillar's earnings might be in the next three or four quarters. >> i learn -- you're the master! >> no. >> i sit at your feet. >> i listened at the summary and said i couldn't do better than that. >> maria is the master we appreciate it thank you. for more on how investors to

react to the action in the markets, let's welcome in jim tyranny and rich weiss welcome, gentlemen rich, i'll just start with you because last time we saw you you were pretty bearish on the economy, thinking a recession is quite likely what's your -- how's your thinking evolved on that and the markets? thinking down almost 20% here seeing signs of turn around? >> not in the near future. i'm not sure we could see the bottom out this point. it is what they call an exogenous shock, a black swan from the medical community the impact on u.s. economic growth, global economic growth and certainly corporate earnings are unknown at this time which explains a lot of the volatility in the market today but again i don't think we have seen the bottom nor can we even see the bottom at this point it is coming from the medical community and even they're unsure of the magnitude and

breadth and depth of this crisis so i would definitely keep your powder dry don't panic sell, of course, at this time. it never pays. when you have these types of situations but it's definitely going to get worse before it gets better. >> would you change your mind, rich, with announcement maybe after the close today, maybe hints to the press, maybe a big announcement tomorrow, the white house says, boom, payroll tax cut, loans for businesses, relief for those hard hit, hourly workers and so forth, would that change your mind? >> helps certainly i don't know that it would change my mind stick to the overall longer term plan don't panic sell economic growth this year is predicated on the consumer being strong which is propped us upmost of the last ten years and corporate earnings coming through because last year all about pe expansion and neither of those things are going to be there in the near future economic growth in the u.s. is

likely to be in recession or close to it. >> all right. >> and so, it is not going to change anything substantially. >> okay. jim, you look at parts of the market that have been the winners and say you can kind of still lean on those names like the microsofts, like the mastercard, right? >> we have no idea where exactly the bottom is but you have to get involved in steps and it's not easy but you have to do a little bit now and a couple of weeks and say where am i going to be safe where do i know that my capital is going to work over two, three, four years and companies of microsoft or mastercard are going to be around and still going to be using microsoft office, still going to be using mastercard backed cards and they will be around i don't think you can go to places where there's a lot of debt or where the industry may be having secular change permanently. >> that's what i was going to ask you. if you favor, let's say, the winners of this bull market then you would avoid companies with high debt loads and we have seen

those hardest hit but not necessarily looking for value plays it sounds to me in energy or anything like that with a secular challenge. what about financials, banks >> we don't do a lot in the banking sector with a zero interest rate world it's hard for banks to make money. why go there with the quality growth on sale, you don't have to. it's a great stock picker's market right now. >> jamie cox is joining the conversation jamie, so we have heard from rich who's more bearish on the market and the economy jim maybe tactically buying here what is your advice to investors? >> i think investors are learning the hard way about what companies they own we were starting to see dividend cuts in the oil patch. all of a sudden. so i think investors are going to get a good lesson on why you need to understand what you own when you buy something like if you own companies in oil, just for the dividend, you are getting your money handed to you

right now so i think there's a lot of that investors can take away when they make the decisions to buy in the future and in addition to that, i'm with the people who want to buy right now with the growth companies. i think microsoft, mastercard, the places are great companies that we loved two months ago at much higher prices and if you have money on the sidelines or you have bond holdings to reallocate you have plenty of options on the table as soon as clarity comes back it may be too late to pick the good deals up. >> rich? >> i'm not sure. i would say resist the temptation to jump out of the frying pan into the fire but where are you going to go at this point bonds? vix? gold japanese yen swiss franc? >> what about fang >> again, i'd say too early. if you have money on the sidelines and you have a longer term horizon, i would say gree over a three, five-year period, probably going to see gains but

for most investors right now if you're already holding the stock, plowing more money in right now is little too early. i'd wait until some of the exogenous variable clarifies itself before jumping into the deep end of the pool. >> jim, why not wait do you feel like there's urgency with the dislocations in some of the names? >> when you can buy some of the great franchises down 20% or 25% you have the fed on the side, probably have the administration on your side, and you have time on your side at some point the number of cases is going to go down and the market's going to lift and whether it's a 5% or 10% or 15% lift and back to 2018 in the fourth quarter, why didn't i jump in in december? >> so you do think some plan is coming from the administration do you care how long it takes? >> they have to do something in the next three to six months. >> okay. that's a fairly long time. in other words, you oar giving them the time they probably need to move this thing.

>> without a doubt. >> the fed on your side for investors right now. what about the fact that the markets tumbled worse than if they had done nothing at all >> two factors the cases going up and need to see that peak. and the second is what happene with oil and certainly they impacted the market when we sort that out this is a great buying opportunity. >> does that mean you have to take a stand on opec all bets are off just saying the market to kind of put it to the side? worked through that event? >> i think we have worked through it and for majority of companies and consumer low oil prices is a great thing. >> jamie, the quick final word here having heard kind of jim's recommendations, anything you would change or just echo what he had to say? >> i think that the companies with large balance sheets are the ones to own at this particular moment. if you find an example like i think chlorox is a good one to sell with a lower credit, bbb

versus proctor gamble which is an aa. if you are worried about markets or the future, the way to drive through it is to own companies with large balance sheets not worrying about exogenous shocks having immediate impact to the businesses so i believe that's what people should concentrate on right now and do fine. >> cash on the balance sheet, not debt >> yes. >> thank you all great conversation today a lot of good ideas in there we appreciate it rich, jamie and jim. thank you so much. well, you heard about the energy sector and it's given upmost of the gains today. we turned negative as oil trying to rebound from the worst day since 1991 several energy companies coming off the worst day ever like apache and occidental. my next guest said $20 oil is

coming this year he's a former exxonmobil senior adviser for the middle east, as well ali, good to see you so you're hardly optimistic on this scenario. why do you think that oil is headed lower from here even into the 20s? >> thanks for having me, kelly i'm generally bearish because we face an unprecedented and historic situation of a supply shock and a demand shock at the same time. obviously, the demand shock stems from the coronavirus and then the supply shock was precipitated by this price war declared by both the saudis and the russians trying to stem the rise of american unconventional production. >> so that being the case, how low for how long >> to be honest with you, i don't think there is a floor on the oil price. certainly, it's somewhere in the 20s but it could go lower. the only -- the floor will arise

when physical barrels of production are taken offline so the saudis announced today to surge production to above 12 million barrels a day. the russians have been producing near all-out and also i think announced plans to increase half a million barrels a day and the iraqis, emirates other increase by another million barrels and the market supplied by at least -- oversupplied by at least 4 million barrels at a time, again, when you have airlines slashing routes, people not driving their children to school in the morning, and other demand shocks. >>yeah the news today just keeps piling up harvard telling students not to come back from spring break. businesses are closed. if we're 4 million barrels a day oversupplied, does the u.s. have to pull back who will blink here? >> that is the trillion-dollar question who's going to blink

i think the russians and the saudis actually might have miscalculated as they did several years ago initiating the 2014 price war the reality is that while the american unconventional producers are massively indebted for them to take production offline still will require six to 12 months, right? they have some cash flow and they already have cash on the books and they have some costs. so even if they sink into bankruptcy it still will take six to 12 months for the barrels to be removed off the market and the question is, do the saudis and the russians have the patience and are they willing to bleed cash to ride out the storm? nobody knows and it's obviously a political decision decided by at least putin and saudi crown prince mohammed bin salmon. >> who do you think can last longer, saudi or russia? >> the russians have been increasing the sovereign wealth fund reserves and gold reserves

for the past several years to over half a trillion dollars the saudis are about at the half trillion mark, as welt the break even mark is $90 a barrel and russian fiscal break even in the 40s or low 50s so the russians theoretically and they have said it publicly, as well, can -- are likely to ride out the storm much longer than the saudis. >> all right ali, thank you we appreciate your perspective >> thank you. coming up, plan, what plan the president said he is ready to stimulate the economy but the plan isn't quite there right now. we'll explore what is actually on the table and what would be the best approach. plus, the empty skies. airlines announcing more capacity cuts and even ceo pay cuts and the market likes it could it be time to get back in the sector here's a look at the leaders today. a lot of energy names up there pioneer, mgm, lincoln national

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welcome back to "the exchange." another day of market tumult the dow up 945 at the highs and

down 160 at the lows up 160 for the nasdaq. asfor the leadership, it is tech and the banks leading the dow right now. that includes apple, microsoft and jpmorgan among the winners today. and boeing the biggest drag on the dow, down more than 4% today and checking in with energy with oil rebounding about 7%. the oil and gas etf up more than 14% as you can see and speaking of energy, occidental shares up nearly 6% the company just cut the dividend from 79 cents to 11 cents a share saying it will reduce capital spending this year with the sharp drop in commodity prices and finally take a look at stitch fix, that ipo down more than 30% after mixed earnings and disappointed full-year guidance cautionary things of retail pricing in general. now the latest in the coronavirus outbreak as italy

shut the country down and efforts in the u.s. stepped up meg tirrell is here. meg? >> hi, kelly cdc director dr. redfield telling congress there will be a strategy for the coronavirus today, a framework for each state and new york announcing a mitigation frame work as cases grew to 108. schools and other public gathering places in a 1-mile radius of the epicenter closed for two weeks starting thursday. the state will also bring in the national guard to assist in its response total new york state cases rose by 31 today to 173 including a near doubling of cases in new york city to 36 and finally an update on a possible treatment. it's used on a space for a number of people in washington state. the cdc director said today noting there should be data on whether it works by april an saying, quote, that's important because that's a drug to save

lives if it works. >> that would be great going back to new rochelle seeing this -- >> containment. >> containment it is not a full quarantine it sounds like. not saying you have to stay at home perhaps thinking that's too draconian but they could still travel elsewhere and continue to spread coronavirus you would think. >> that's right. they're saying they're moving from containment to mitigation and establishing this one-mile radius around the epicenter of the outbreak to slow the spread if they can. the numbers are climbing in this cluser some folks are quarantined with potential exposure to a known case so those people do have to stay in their homes but everybody else doesn't it is just the public gathering places and schools. >> we have to see how effect it is meanwhile, you have the cancel of sports playoff seasons. kids not coming back from spring break and feels like the

announcements are setting the template of what may spread to regions not affected by coronavirus yet. >> or that we don't know folks are worried that the spread is wider than we have been able to detect. though testing, of course, ramping up around the country. >> that's a big part of that we appreciate it. coming up, once we get to the point that corporate america is ready to travel again, that will come back and by that doug parker means corporate travel. when it will happen, no one really knows and meantime airlines are taking measures to make it through. we'll tell you what they are ahead. a state and city finances hit by the coronavirus crisis, we're going to get a behind the scenes look at how chicago's treasury team is navigating the turmoil. and a reminder to watch or listen to us live on the go on the cnbc app "the exchange" is back in two. - [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. when yowhat do you see?itical issues facing our world, we see breakthrough medicines getting to patients in record time. we see harnessing natural gas

unleashing the promise of clean energy. we see engineers simulating the future to improve today. at emerson, when issues become inspiration, focusing core strengths to create a better world isn't just a result, it's a responsibility. emerson. consider it solved. welcome back to "the exchange." let's get to sue herera for an update hi, sue. >> hello, everyone her's what's happening at this hour democratic presidential candidate joe biden visiting a fiat chrysler plant in detroit, michigan he met with workers there as voters in michigan head to the polls for the state's primary. one voter challenged biden on second amendment rights. he responded he favors a ban on assault weapons but not all guns. speaking of which, dick's sporting goods saying it will pull guns from another 440 stores this year

dick's stopped gun sales in some stores following the 2018 mass shooting at stoneman douglas high school in parkland, florida. a federal appeals court ruling that the justice department must give congress secret testimony from special counsel mueller's russia investigation saying rous democrats were entitled to the material as part of the ongoing investigation into president trump's conduct. and family members marking the one-year anniversary of the boeing 737 max jet crash in ethiopia which killed all 157 people on board. buses and smaller vehicles arrived at the crash site on a newly built road to attend the service where large tents had been erected you are up to date that's the news update back to you. >> thank you very much stock trading app robinhood crashing three times that left users without the platform kay rooney is here to talk about

the details and the fallout. down again yesterday in the 2,000-point sellout and up today. what's the company saying? >> we haven't seen any out ands today. this all started yesterday around the open of trading 9:30, on twitter people complaining they can't get access to the account after two days of outage last week by 10:30, partially back on. 3:30, they're fully back and then an hour left in trading so the response from the company was that this was a different problem than last week they blamed it on trading volume and we did see others like fidelity and td ameritrade saying the historic week of issues and down time this is apparently according to the company completely different. so it calls into question an issue with the technology stack? they have fractional trading and could be part of the issue. >> interesting because again fractional trading means now that the average price of the s&p 500 is so high it lets users

buy $10 worth of tesla instead of nearly $1,000 a share but the mechanics i imagine can be get tricky. >> they do sell clearing and a potential issue that a lot of other start-up that is do that rely on a third party. robinhood does it in house and the issues coming up are probably internal issue with robinhood versus another startup to say it is the third party we work with having a glitch here. >> it's often said and people talk about this in terms of young folks on wall street and what have you that you're tested, prove the met l tle in times of crisis. this is not really been able to live up so far to this crisis. does that mean it requires more technology investment? does it change the valuation of this privately traded company? does it mean they might need deeper pockets of a different backer in order to really scale this thing >> they have gotten almost a $8

billion valuation. one of the reasons it was so highly valued because customers seem the love it and a quick snowball effect. people tell the friends and now people on twitter complaining, it calls into question that growth they have seen massive growth. >> do we know the valuation? >> 7.6 billion. >> wow. >> they also were seen as an m&s aa target. >> thank you. >> we have more on coronavirus. >> so walmart is saying that one of the employees in kentucky tested positive for coronavirus and so as a result walmart said reinforcing the cleaning an sanitizing protocol and be three new things to work on here three scenarios that they're doing for this emergency policy. the first one, allowing employees to stay home if they feel uncomfortable at work, if

they feel sick and waving the attendance policy through the end of the april second, anyone quarantined by a government measure, forced to not go to work, walmart will pay them up to two weeks of time and associated absences not count against attendance and saying if an associate becomes ill with a confirmed case of coronavirus that employee will receive two weeks of pay and unable to return to work after that additional pay replacement may available for 26 weeks so here's one company stepping up the monetary response if employees get sick or unable to work because one employee testing positive in kentucky. >> thank you coming up here on "the exchange," it is the cancelation of more and more conventions because of coronavirus and could be the beginning of a seismic impact on state and local budgets. two state that is could be the most vulnerable. half empty planes taken the

toll on the airplane sector. why are they rallying? also, a look at the financials today which are attempting to rebound after yesterday's dramatic drop. both sector etfs up by more than 4% led by goldman holding on to that level there's jpmorgan up more than 4% in the trading session back with more after this. to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.

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welcome back to "the exchange." the coronavirus is continuing to pressure airlines as people and businesses put all their travel on hold. airline ceos expressing concerns at what was a virtual jpmorgan industrials conference today take a listen. >> very fluid situation and an environment in which it's incredibly difficult to forecast future demand so given this uncertainty we have suspended the financial guidance for the first quarter and the full year of 2020. >> two weeks ago the revenue trajectory changed dramatically as the virus spread meaningfully outside of asia. we have seen a 30% decline in net bookings and prepared for it to get worse we expect demand erosion will continue in the near term and built a plan that prioritizes

free cash flow generation and preserves liquidity. >> when i look at how the demand deteriorated the last couple of weeks, it appears to be worse than what we saw after 9/11. >> well, let's bring in helene becker it is good to see you today. it's shocking for any of us to hear -- can you hear me okay >> yes i can hear you fine. thank you. >> awesome it was shocking for us to hear an airline ceo make a comparison to 9/11. what does it mean for your coverage universe? >> yeah. i think it seems to be pretty bad. leisure travel seems to be responding somewhat to lower fares, corporate demand is nonexistent and obviously the airlines have from sesz refunds for those corporate travelers in the short term so you have got huge declines in revenue that come from both a decline in

future bookings as well as the decline in net bookings so, you know, that's cancelations. so increasing cancelations and seeing the two things weigh heavily on the group and obviously the stocks have come down significantly to reflect this short-term lack of demand and, you know, the question is how long is short term we heard a number of the airline managements say that this morning but, you know, if you look at after 9/11, september traffic was '01 down 38% then october it was down 21% then november down 18% and then kind of gradually improved from there but still down right through about february, march of '02 and where you saw the recovery but you were heading into the winter months right? you could stimulate demand for the holiday season right now, you know, spring break is just upon us and a lot of folks canceling the spring break plans and not yet making

summer plans i guess preferring to see how this whole thing plays out and i think the airlines are being very aggressive in responding, more aggressive than we have ever seen them in the past to cutting capacity, cutting cap-x, doing everything they can to preserve capital. >> we heard that this morning. delta reducing system wide capacity 15 points more than its plan international capacity reduced by 20% to 25%. we are also seeing the ceos cut the salaries which i don't think is as big of an impact but a gesture. leisure travel holding in there on price cuts, corporate travel is gone. does that favor holding one type of airline over another for six months is there a cash crunch for the name that is you cover >> yeah. so those are all very good questions. the way i think about leisure is most of the airlines will tell

you about 80% to 85% of the traffic flies once a year or less and provides half the revenue and you can generally stimulate leisure demand by cutting fares. people will at some point feel a little bit more comfortable of traveling, getting tired of staying home and want do get out and do something so we do think that they'll respond to that, to the lower fares. corporate, obviously, your boss tells you you are not going anywhere you are obviously not going to travel. so in terms of cash crunch, i think every airline has started to tap their credit lines, they have sorted out with their banks, you know, some liquidity measures united just said this earlier this morning they raised $2 billion of additional liquidity, up to 8 billion. so, you know, we are watching this very closely and obviously

the longer it lasts the deeper, you know, the crunch and the more concerned we would be obviously, you saw earlier this morning you guys had a story, as well, that the white house was willing to do some help but for the industry, but none of the airlines asked for help at this point. >> okay. i guess they know they might have an ear at the white house if they need it. perhaps can give investors some encouragement. good to see you, thanks. >> thanks for having me. coming up on "closing bell" today, the ceo of jetblue robin hayes weighs in on how the airline is dealing with coronavirus and the impact on the bottom line. still ahead right here, conferences, summits, trade shows canceled across the country. we'll drill down on the impact of a major city and the budget, next my biggest fear was losing my independence. mmm... good.

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welcome back to "the exchange." four major conventions in chicago getting canceled due to covid-19 in the last few weeks and will impact the local and statewide economies. scott cohen has the details for us hi, scott. >> reporter: hi, kelly behind me is chicago's mccormack place, they say the largest convention center in the western hemisphere and it is dead even though normally they would be setting up for the international housewares show that was supposed to get under way at the end of the week. canceled cardiologist convention to follow that has been canceled, other gatherings are gone. in all, 92,000 people that would have come to chicago are not coming here. that if you figure they spend about $2,000 on their visit here, that's a hit to the local economy at a minimum of nearly $184 million in the month of march. the chicago civic federation, a

local watchdog group, said the convention business accounts for about $3 billion a year in tax revenue to the city and state and warn neither the city of chicago nor the state of illinois has meaningful reserves and both have had difficulty balancing their budgets under the weight of enormous debt and unfunded liabilities in the trading room at the chicago city treasurer's office managing the city's $8 billion in operating funds, they're focused on the short term for now. >> when you look at our overall portfolio, 67% has maturity of less than a year we have to be able that we make certain that liquidity is very important, especially in the volatile situation such as this. >> reporter: in the longer term, though, there are some big issues here, not least of which the fact that chicago's four pension funds are only 23% funded and that is something that they're going to have to deal

with the low interest rates and the hit to the budget to impact the contributions to make and the muni bond market in the past frenldly to cities and investors but re-evaluation going on as far as that goes, consider the fact that the agency that runs this convention center which is separate from the city has just warned its bondholder that is if these cancelations continue they could be looking at big issues ahead. kelly? >> scott, this is such an important story. hits absolutely every angle of people trying to own muni dead to the places like chicago, the pension problems you mentioned we thank you for bringing it to us today really important stuff. coming up, the market volatility persisting today with the dow swinging 1 x 100 points again. ulbe ivestors around the world cod n for a month's long correction that's next. awesome internet.

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...simple, easy, awesome. [ barking ] welcome back one week after the fed's emergency rate cut the yield on the 10-year treasury bond well below 1% and the stock market dropped about 10%. what is it telling us about the economy, the risk of credit defaults and the possibility of more rate cuts joining me is brian reynolds an

vincent reinhart it's wonderful to have you both here brian, your thoughts on the market, this is a really sharp selloff. do you expect us to have an equally sharp rebound? is the long-term rally still intact >> i think the long-term rally still is intact but a couple weeks ago the velocity of the stock market drop picked up, that's indicative of a large correction those are usually month's long events and then after the collapse in yields such as fed fund futures also telling us that it's a rough few months ahead. but then when you look at the actions of pensions, that are lining up to put money in credit, once this event passes, it's a month's long event with a tough grind up and seen that happen a number of times over the last decade. >> we heard from scott cohn that the pension funds 23% funded they have to make it up somehow.

you also make the point on the screen right now that investment grade corporate bond yields fallen opposite of a crisis. having said that, has the federal reserve made this crisis worse, brian have they got done enough? would you like to see them be more forceful? how would you analyze that >> i think the fed and the g7 made a policy mistake last week with a message of everything on the table and be coordinated and then the fed went ahead by themselves and did it half heartedly asked about anything other than interest rate policy cuts the chair said they hadn't discussed that yet investors wanteded to hear that the fed is ahead of this and they clearly weren't and that's what sent money market rates down further and that happened in 1998, 2013, last july it takes time for the markets especially the credit market to get over that. >> okay.

vincent, what could the fed have done better in this case more to the point of waiting to hear from this afternoon is what role can fiscal policy play? getting an announcement that a plan is in the works, being formed, targeted to help those hurt by coronavirus, do we need to cut rates to zero next week >> well, that's pretty much priced in in future markets. i think the problem with an inter meeting move is looks panicky and people immediately assume that the fed knows something that we don't know which is almost never the case and so they probably could have used a little bit more time and then moved at a meeting more -- have considered all the aspects of monetary policy so they could have really gone all across the waterfront in terms of policy ease. >> what is left for them to do now? if they cut to zero, whether it's next week or by april,

everyone looks at the situation an says, obviously the next thing they have to do if they have to ease more ever again in the future, they have to go to zero you saw abou what type of purchases should we be thinking about? >> well, the plain fact, if you do unconventional policy once your expectation is that you'll do it again. they've lowered the hurdle before they move into the balance sheets they'll cut rates. the economy will have more time with policy easing while you're at zero. they'll do what they've done before in terms of scale and scope of their quantitative easing you got to wonder, how effective it will be as you noted already the ten

year treasury is welcome quite low. mortgage yields are quite low. bankers are working to full capacity housing is the one cylinder still firing in the u.s. economy engine for sure. it's not obvious that working on the treasuries and mortgage front would be particularly helpful. >> what does that leave? buying stocks. i mean buying gold what's left to buy >> look at bank of japan and equity going to congress at this time would be not the greatest idea in the world pretty partisan and a lot of lo loopy ideas about how monetary policy should be conducted the fed could use facile tills to lend against troubled credit if it got that bad >> is any of that going to matter have we destroyed the financial system already because of all of

this >> i think any ease will help the financial markets much more than they will help the economy. we have talked for eight years how we shadow banked the sector. we kind of hit that threshold this week. you can finance it at $45 out for 5 years. i think any financing will help patr roll default into more equity which means more production. >> all right thanks we appreciate it today president trump says he's going to announce dramatic and major steps to sim stimulate the economy. we'll head to d.c. to get what's on the table after this short break.

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geico. over 75 years of savings and service. president trump meeting with senate republicans today to discuss economic measures sthoe -- to shore up the economy. the president apparently pushing for payroll tax cut but faces

some skepticism from his own party. welcome. >> thanks for having me. >> what should investors think is actually on the table right now at this moment >> it's hard to tell because i think we have seen what this administration there's a tendency to announce a policy change before the policy process has run its course we saw this with the tax cut in 2017 and we're maybe seeing it now. a payroll tax cut is something the president said last night that he wanted earlier last week secretary mnuchin said it wasn't on the table and larry kudlow hasn't been a big fan of payroll tax cuts that's one question. the second is if we're going a payroll tax cut, is it going to be shallow cut for a longer period of time or a deep cut that's more temporary. we don't know. there's still a lot that that to get filled in here >> what about senate republicans. as we understand that's the

first meeting that has to take place for a meeting of minds before you approach the democrats with a plan. what do you think they are likely to support? >> there's a proposal for a senate republican to do something like this but it's hard to tell there's a sense up on the hill that people don't know how bad this is going to get and how exactly we should tackle it. remember, congress doesn't really do fiscal policy preemptively it isn't something you normally see. we tend to get big changes to taxes and spending once we're in a downturn and when there's a new president which in 2001 and 20709, coincided with having a downturn. >> time is of the essence. the feds meeting next week -- wow, we have the president live. let's stay right there and listen to him. >> we're looking at the people -- we're looking at

solving this problem there's some good numbers coming out of some countries we're seeing fairly good numbers coming out of those countries, including china. they have released numbers we have gotten some numbers from china that looked pretty promising. >> testing yourself -- >> i don't think it's a big deal i would do it. i don't feel any reason. i feel extremely good. i feel very good i guess it's not a big deal to get tested it's something i would do. again, spoke to the white house doctor terryic guy. talented guy there's no symptom, no anything. if there were, you would be the first know it. would even tell me about it. >> have you been briefed that

hundreds of millions of americans could be exposed to the virus? >> i've been briefed on every con ttingency you could imagine all different numbers. very large numbers and some small numbers too, by the way. right now i guess we're at 26 deaths if you look at the flu, the flu, for this year, we're at 8,000 deaths hundreds of thousands of cases we have 8,000 cases. we're taking this unbelievably seriously. i think we're doing a good job task force headed up by the vice president has been fantastic >> why does the u.s. move slow with testing other countries have tested -- >> i think the u.s. has done a very good job on testing we had to change things that were done and were nobody's

fault. they said they wanted to do something a different way. it was a much slower process from a previous administration we did change them we made the changes. the testing has gone very well when people need a test, they can get a test when the professionals need a test, they can get the test. it's gone really well. the biggest thing we did was stopping the inflow of people early on that was weeks ahead of schedule weeks ahead of what other people would have done. other people, mostly would not have done it until now that's made a big difference >> are you planning to fire anyo anyone >> i think the people are doing a fantastic job. in fact, just today -- california said tremendous -- there's an article that came out. showed i t