welcome to cnbc's breaking coverage of the coronavirus. what's happening around the world, what's happening in the markets, too i'm becky quick along with joe cornyn and andrew ross sorkin and joe is at the market site in times square we've been watching equity futures at this hour and we're not limit down peter and i were going back this morning. that's kind of our version of a rally. we're only down about 3% across the board. if you were watching last night as the news first came in about the bill not passing in the senate, that's when we saw futures limit down to put this in context, you were coming off a very rough month. we're on track for the second worst month of percentage losses that we've seen in history that's second only to september of 1931. last week was the biggest weekly tumble we've seen for the markets across the board since 2008 this morning the dow futures indicated down by about 598, 600 points

this is 3% declines for each of these markets. joe, it looked worse overnight we'll see what happens as we get a little closer to the opening bell you've been watching the treasury. >> it was lockdown. >> it was lockdown for quite some time. >> and it really was about -- i couldn't help but saying, this is the politicians' fault. it was if they had done what they looked like they were going to do as of friday, i don't think it would have been like that but then again, we may have had the, all right, they passed it, we're up and then that sells off. in this world, i don't know what to hope for anymore. >> this is how it works, though. >> i'm going to read something in a second that i'm so excited about. i even got more excited about this than i did about the futures not being locked down is,000 points. weet gel we'll get to that.

>> it was 954 points or something. yields have come down. the ten-year was down at 0.829%. again, that volatility is spreading not only through the stock market but treasuries. it's been amazing to get whipsawed by how yields are performing with this there's a lot of questions about what's happening in the mortgage market, commercial mortgage market and the mortgage market for homeowners as well we could talk about that a little later this morning, too >>y yep. is this a reminder about the trading floor at the new york stock exchange is this -- andrew, you're -- >> no, it's me i don't have a teleprompter. it's me so read it. >> it's becky. >> electronic trading will continue as normal before i get to my big story, andrew, send your lighting guy down here. what about the flood what about the flood >> the flood is -- we're going to send you some shots of the

flood maybe later today. we'll show you - >> is that gone? >> given everything that's going on it's gone. the flood is -- i'm back in sneakers. >> good. here's my big news goldman sachs, pretty good company, upgrading the shares of boeing upgrading to a buy andrew, i'm looking at you i mean, this is -- this is not good news or not why are they upgrading it to buy from neutral because it's down 70% year-to-date that's the bad part of this. but goldman sachs saying the fear is now priced into the stock and long-term secular growth remains intact. we can only hope the price target, this is a little concerning, it says it remains at $173 a share. they've been riding it down with that price target. >> but the case is - >> that is only -- >> it's going to be a going concern. >> what's that, andrew

>> but that call is only right if -- that call is only right if there is a bailout of the airlines otherwise that call is almost impossible to believe. and also includes, obviously, the bailout of boeing itself from the government. so, again, we talked about it for the past couple of weeks at this point if you're an investor out there and betting on a short-term basis, you're basically betting on policy. you're betting on what are they going to do? are shareholders going to be wiped out. >> i think so it's fair to say there's going to be policy the question is, what happens to the shareholder? is boeing the new aig? >> correct >> it's a time to -- >> that's a real question. and you're hearing it across the board in terms of -- >> implicit in this call, they're not saying buy the debt. implicit is that the shareholders are going to be okay. >> are going to be protected.

>> right >> but that's a question whether the shareholders should be protected. i'm not saying they shouldn't. i have new views we can talk about that later >> okay, great >> we have a lot to look forward to we have so much going for us let's talk about the coronavirus pandemic right now, where the numbers stand as we sit here right now. around the world they have now surged past 340,000 with at least 35,000 of those in the united states. this morning nearly one in three americans are on strict stay home orders with ohio and louisiana both enacting those lockdowns as well. president trump, we should also tell you, announcing yesterday he has activated the national guard. he's doing this now in california, in new york and washington state in order to combat the spread of the virus and try to keep the peace and keep people in their homes for the most part.

state governors will maintain command of the national guard but fema will cover the costs of this for now that's still all of us the fda has issued emergency authorization for a rapid test that could detect covid-19 in 19 minutes. that's manufactured by diagnostic company cepheid they can be at the place of care instead of sent away that's good news the company says it will begin shipping those tests on friday meantime, a massive funding package to combat the impact of the coronavirus failed that key procedural vote in the senate it happened last night democrats said the bill did too much to bail out companies, not enough to help workers want to get to eamon javers in washington, d.c., with the latest on all of it.

>> it was ran extraordinary moment last night as we watched this bill, estimated to cost between $1.6 and $2 trillion fail it was a 47-47 vote in the united states senate on the floor there. they needed 60 votes, republicans did, to pass it. democrats said they blocked the bill because, as you say, it didn't do enough to help workers. they were concerned it gave the treasury secretary too much discretion to decide where funds went and didn't provide enough of a time limit -- or provided too much of a time limit, i should say, on some of the restriction that impacted companies. there was a two-year sunset on some provisions that the democrats wanted to see made permanent. there was this extraordinary moment as the president took to the briefing room at the white house, the senate was voting on this, voted the package down we saw the futures hit limit down even as the president was speaking in washington the president, though, insisting while all of that was happening that the economy is going to be

just fine in the long run. here's what he said. >> this will help our economy and you will see our economy skyrocket once this is over. i think it's going to skyrocket. it's a pent-up demand. it's a built-up demand and i guess you really have to say, who knows, but i think it's going to be a tremendous day when we win this war we will win the war. >> so, the negotiations are going to continue throughout the morning. they're expecting on capitol hill a noon vote they'll try again and see if they can get the deal done between now and then and move this bill forward. nancy pelosi, meanwhile, says she's going to move forward with her own bill in the house. remember, this is the bill phase three working its way through the senate pelosi says her own bill is going to happen in the house that means those two bills will have to be reconciled. it will be some time before we see a final piece of legislation here one concern, i should flag for you guys, there is a concern now

about how many members of congress will be available to vote for this. we saw rand paul, senator, testing positive for co-individuco-vivid over the weekend. other members in the house of representatives have tested positive, others are in isolation. whether they can get the full complement of senators and mechani members of going is going to be an open question and more difficult. >> they're talking about not being there? i saw the president talking about that doing it -- i mean, constitutionally you're supposed to be there, but these are crazy times, sflit you don't need to show up to do it, right? they'll figure something out. >> well, you do. >> rand paul isn't going to come in he's not going to come in. >> there's no proceed voting from home. congress for years, since 9/11, has been told it needs some kind of contingency plan if the

capitol is not available and resisted it. it's fear of their own mortality and inability to deal with it. they have not made coherent plans for that they could maybe put something together on the fly. if everyone agrees, maybe that will suffice but it's not in place right now. >> eamon, can you talk about the timeline a little bit in terms of what these two bills -- first of all, the distinction between these two bills and how long you think it will ultimately take to reconcile them one thing we haven't talked about is the disclosure provision in the bill last night that ultimately failed part of the issue, and i heard a lot about this over the weekend from some of the people involved in it, is that the ambition or the plan was that there would not be disclosure about who was getting these loans. in large part this goes back to trying to protect the companies so people don't know, but it also creates a whole political moras if people don't know where

taxpayer money is going. >> it's very tricky to spend taxpayer money in secret, right? the voters do have sort of a moral obligation to know where their money is going so, that's one hurdle. what you're going to look at here is two entirely separate bills. nancy pelosi says these going to build her bill from the ground up and then they're going to have to go into a conference committee and reconcile those two things and take a little bit from here and a little bit from there and it's going to be a giant negotiation. you know, pelosi and the democrats have complained that the republicans did not deal with them in the original part of building the phase three bill it was just mnuchin working with senate republicans, not democrats and not nancy pelosi they now want to be included in shaping this republicans said, you know, the democrats are simply playing with fire here by voting this thing down the night before stock trading -- >> but what is the -- what is the earliest -- what's the earliest you think we could get both sides to reconcile and

agree given that time is wasting and there are so many people around this country that are not going to be getting paychecks? >> some analysts are saying wednesday maybe. you could be looking at later this week. it's not a today thing, that's for ure. and probably not tomorrow. and then all the logistics, about members not available to vote, getting members back in the house side, into town to vote there's some real flicomplicati solved. >> not to mention the logistics of once there is a bill, how you get that out to the people who need it. >> right one of the fascinating provisions, and we talked about this a little on friday, is this small business provision which i think will go a long way because in the provision it's $300 billion right now, as authorized but could be increased over time small businesses can get loans from the government to fund

their payroll to keep all their employees on the payroll if they don't fire anybody, that loan will be forgiven entirely so you're looking at free money for small businesses that apply. it's under 500 employees it's up to $10 million per company. it's retro active to march 1st ultimately, you know, anybody that's been laid off since march 1st could be rehired that would go a long way to solving some losses for those companies. >> if they get rehired, do they also get back pay? if they get rehired they also get back pay to march 1st? >> good question i don't know i don't know if they get back pay if they're rehired >> there was a provision -- there was a provision that was retro active so you would get back pay until you were let go or, rather, based on when you were let go. i should also mention, i don't know if you heard about this, but in terms of -- i think it answers maybe becky's question a little bit of how this money

could ultimately get distributed. banks are probably the front line for this, but there is some very clever and creative ideas floating around washington including some companies over the weekend, including paypal using venmo service to get money to individuals into your pocket today. amazon, which has a relationship with so many different vendors across the country, square, angie's list which has its own relationship with service workers that have been displaced by all of this i think you're going to see a lot from the corporate community in terms of how the money could ultimately get distributed along the way. big questions with how you actually -- the mechanics of doing that and then you have to hope, and i think most of these companies, i like to think, are going to be goodwill, will not take fees on top of this to distribute that money. >> yeah, the -- >> they better not. >> the large bulk is going to be direct deposit to your bank account. those payments to individuals, about $1,000 to each person,

treasury secretary mnuchin said because the irs has your bank account money from the last time they wired you a refund, they can just do that for a huge number of people but then, you're right, there's going to be a whole question about the unbanked and how you reach people throughout the economy who maybe don't have their information on file with the irs for a variety of reasons >> eamon javers in washington, d.c., thank you very much this morning. we'll be talking to you a lot more in a little bit meantime, investors bublging up for another tumultuous after the worst week on wall street since 2008 david bailen from citi private bank we've been talking about how investors are effectively banking on policy, in terms of trying to figure out where this is headed, whether to stay on the sidelines, put money in if you have cash, and some people

who even still, even with the down draft we've been on, want to get out because they think the down draft is going to continue what do you think? >> well, it does depend a lot on the actual policy that is created. you've been discussing it robustly it has to be done in a way that affects small and medium size businesses and governments the plan out there right now doesn't cover you'll of that quite frankly, citi private bank doesn't think it's big enough. we calculated you need $3.75 trillion in order to do all of that, to take us out about 120 days which is a period of time when the virus will have the greatest impact on the country and when the most number of people are going to be at home we estimate that total unemployment could reach for a very brief time 25% of the working population what's probably not known by most of the people watching is that a typical small business may only have 45 to 60 days of cash on hand one of the reasons why this is a

different crisis is because we need to make these decisions now. as you talked about, really bridge the gap between here and the next several months. >> david, let me ask you a question about the market. one proxy for the market, at least one data point, i don't know if it's fair or not, is to look at unemployment in this country. right now the market is still in a sort of 2016ish range -- i wouldn't call it range, but relative to where we were in 2016 unemployment at that point was 5% jim bullard over the weekend said he believed unemployment in this country could go to 30%, which could be way beyond anything we have seen in the past generation. even if -- even if after policy measures were taken -- were put in place, we were at 10%, that would put us back to 2010. is it fair to use that data point to think about the stock market >> in some ways it is and in some ways it isn't

it's a very different type of recession we have right now. if the government steps in and gives the types of support we've been talking about, then you can imagine a far more rapid recovery after this type of recession because, in effect, what we're doing is shutting thinking down and opening things back up. people before they came into this situation unemployment, 3.7% the key is making that bridge. we think it can actually be done if it's done well, you can have a rapid recovery you're absolutely right. unemployment at the end, no matter what happens, is going to be way higher than when we went into this and the degree of stimulus will be incredibly important. we're optimistic that if a very, very large package happens and it is implemented very quickly, that it actually can work. >> andrew, at the depth of this financial crisis, what was the s&p, down at 700 maybe we need to get there - >> 666. >> do you think -- would that

finally get to the point where we're getting what we deserved at that point or still go down 50%? >> i don't think we're getting -- >> i heard you i heard you. >> how about -- what was it 666? where are we, 2,300. then that might be representative of where it should be with 30% unemployment, or still no? >> no. >> if you thought unemployment was there, i mean, i don't -- i can't even - >> 666 >> i couldn't fathom it. >> well, how long -- how long would it be 30%, andrew? it's not like it gets there because of underlying -- i mean, who knows how this comes back and when -- i mean, there's already people saying that the cure is worse than the sdeed itself >> absolutely. by the way, i think that's very true i think it's very possible the cure is way worse than the disease. one thing i spent time talking to people over the weekend is how quickly you can get this

economy back moving. i think there's going to be a moral tradeoff conversation in this country that's going to take place as early as this week about that very issue because when you think about even, frankly, the health and death depair issues that have arisen not only because of this crisis but because of some economic issues in our country before, people will start to have that conversation. >> they've already had it. >> you thought the opioid crisis was bad. that was a dry run. >> i think you talked to too many people over the weekend sometimes. i didn't talk to that many people over the weekend. i think you're talking to too many people over the weekend sometimes. but -- >> david, what do you think? >> i spent the weekend with my phone glued to my ear. >> i know. i know >> again, i think -- i think we're looking at this in, should it go back to this or that the market is very good at valuing what is going to happen in the future. and i think that we're talking here about a very temporary situation. like andrew was talking about whether the cost of this mitigation is fair or not.

that's fine. we already decided on that policy in a sense, which is we are going to effectively go through a rolling lockdown across the country there has not been a centralized federal policy about this. and there doesn't look like there is going to be one and absent that, we are going to have to do income substitution, bridge businesses, support states that's almost a foregone conclusion we have to accept that reality right now. that debate is going to happen on the next crisis we have in this crisis we have to write those checks that's why this bill has to be passed relatively quickly because the difficulty, the logistics of doing it is very, very hard. the other thing we haven't talked about this morning is the degree to which this disease is going to continue going on for the next several months. it's not as if it's going to stop tomorrow or a month from now or two months from ow. it's going to go through a complete cycle that cycle, we calculated, is minimum of 90 to 120 days if you get relief into the summertime the idea we have a one or two

week thing is not correct. from an investor standpoint there's a lot to be paid attention to companies with good balance sheets, companies that can afford to get through this crisis, obviously, are very deeply undervalued and the policy will determine the degree to which small, medium size and even large companies get through it we want people to focus on their portfolios on the highest quality names, companies that can continue to pay dividends, industries unfairly treated in this circumstance. a lot of payment companies, the cyber security companies, a lot of companies are really -- health care companies are a great example are virtually unimpacted when you look at their revenue. you take a look at the stock market there are some places to invest and people - >> david, we don't know about a second wave, obviously, in asia and and they're talking about that now but there's a nobel laureate i saw a piece he won for chemistry and also an epidemiologist, or

looking at models. he almost called the total cases in china, total deaths, he almost got that exactly right based on the social distancing that obviously in china is even more stringent than what we have here but his view is you're talking six, nine months a year, that's all possible china, it did not take nine months in china, so maybe we're not able to replicate what china is i'm not saying what -- we'll be able to do that as a society if we were able to do that, be i don't think your long-term scenario is necessarily -- has to go through that china, that's different than what you're describing going on in the united states, is it not? why? >> it's very different china was basically able to do a crackdown even after delaying for almost a month the recognition of the disease. >> there's not a whole lot of people right now in a lot of cities right now, david. >> but as scott gottlieb pointed

out in a tweet, new york state has more than 15,000 cases if new york state were a country, it would be the country, the sixth biggest country in the world in terms of coronavirus cases at this point, too. >> right but it's -- how many cases total? how many people -- the -- china is the one thing that throws me for a loop if you compare per capita with the united states versus per capita for italy or some hard-hit places, we're not doing that badly in terms -- so far in terms of trying to bend the curve down if you do it per capita then i get back to china with 1.4 billion people i don't -- you know, they did a very good job of bending that curve. hopefully -- you know, we'll know within a couple weeks it could get very bad or we could see some progress. you don't look at total cases. you look at total new cases every day. i'm still hopeful. david -- andrew, you want to thank -- >> i'm still hopeful, too. >> david, thank you.

>> you're very welcome, andrew becky, joe have a good day. >> thanks. >> stay safe out there, please. when we come back, we've got axios out with a new interview with the chinese ambassador to the united states. we will see what he has to say about the country's response to the pandemic next. in the meantime, as we take a break, let's take a look at the winners and losers of the s&p 500 year to date at leaf blowers.

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new series axios on hbo aired an interview with the chinese ambassador to the united states last night. here is what the ambassador had to say when asked about early reporting about the outbreak in wuhan. >> where is the citizen journalist he was doing some of the early videos from inside wuhan that were showing the response to the virus and the chaos that was happening inside wuhan >> i have not heard of this person >> really? you asked about him on "face the nation" on february the 9th. >> no, i was not asked about any particular journalist. >> you were. margaret brennan asked about - >> i did not know him then i don't know him now. >> it's a month later. weren't you curious to find out who he was >> we have 1.4 billion people back in china. how can i know everything about

everybody? >> let's bring in the gentleman you just saw there, jonathan swan, national political reporter for axios i didn't see the whole interview, but i saw some other highlights i mean, you asked him about the claim of the u.s. army bringing it to china as well. he punted on that, too, didn't he,danced around it. >> that was the most revealing part of the interview. he distanced himself and disowned this conspiracy theory that's being pushed by the spokesman for the chinese ministry of foreign affairs. the fact that the spokesman for the chinese ministry of foreign affairs is literally publicly spreading a lie that the virus originated in the u.s. military laboratory and that that was the way -- wuhan i asked cui about it and he

basically thought it was crazy to spread such rumors and he said that i would have to ask the spokesman if he had any evidence to support this that was probably the most newsworthy and most revealing part of the interview. >> i guess the part i read is where you mentioned it and h goes, i don't know, you have to ask him, which was like, well, is that -- is it something you're really trying to pass on? this is a strange time we're in right now, jonathan. it's almost like president trump seems passive-aggressive at times. he refers to it as the chinese virus and the next sentence talk about how much he respects president xi and, you know, how much he loves china and the people in china. so, i'm not sure which way this -- is he looking for some type of behavior modification he's trying to do with china on their side of things, do you think? what's he trying to accomplish there?

>> this is a hallmark of his relation with china. no matter what's going on really below the surface, whether before the 2018 election they were getting intel china was trying to undermine trump or if they are having problems with trade. the president always tries to keep the personal relationship fairly warm between himself and president xi obviously, right now it's pretty strained but it's reallyimportant just from a reporting and just public information standpoint that the first three weeks of this virus aren't swept under the rug because when you talk to epidemiologist who study the spread of these diseases, the first three weeks is really, really critical. there has been a study at the university of southampton that shows if china intervened three weeks earlier, there would be 95% fewer reduction of cases of the coronavirus and far less geographic spread. instead of that, they arrested the doctors who were trying to blow the whistle about this and made them publicly retract it,

censured social media, any reference to the virus and put out false information saying it wasn't spreading between humans. this was two weeks after, three weeks after doctors were blowing the whistle about this virus. >> jonathan, we need cooperation with just about every country in the world for this are we going to be able -- do we need to worry about china subverting our efforts to deal with the virus at some point, whether it's medical equipment or precursors to pharmaceuticals? do you think it could get to that point >> well, there have been threats in some chinese state media. my understanding from talking to people who follow this closely is it's mostly from the real proce provateurs and shouldn't be taken as a threat from the chinese government the relations are very, very strained particularly when you have this propaganda effort from the chinese. that's why it was important --

when i asked the ambassador, he was trying to set a new direction and say -- to separate himself from this spokesman. the fact is the spokesman is still doubling down. when you have the spokesman for the chinese ministry of foreign affair ifs alleging publicly that the virus came from the u.s. laboratory it's hard to have a working relationship with how to deal with the virus. >> jonathan, are things getting back to normal, in your view, do you believe it in hubei and wuhan? i believe they're not testing anymore that's why there are no new cases but i hear they are back to work and people are doing business there, the factories are open, starbucks is open, apple is open. it seems like it would be hard to -- you know, if things hadn't improved, it would be hard to sugarcoat it for what we hear over here. do you believe that? >> oh, i don't think anyone doubts -- to be clear, i'm not doubting - >> i'm not saying you are. >> yeah, yeah.

no, no, no, china did -- china took, as you can when -- the way that society is arranged, they took extraordinary measures and from all accounts have done a very impressive job after that initial three weeks. the problem was, in those initial three weeks, so many people spread around the world with the virus but with china, the problem is we don't really -- you can't really trust the data coming out. we have don't have a good grasp on what the cases are and what the ambassador said to me, which is true, is that people are worried about a second wave of the virus, so, yes, things have moved in a positive direction in china but people there aren't doing cartwheels yet. >> becky >> a quick question for you. you're right we can't trust the numbers coming out of china but you can trust the numbers coming from some of the businesses we hear apple opening its stores there, dairy queen opening, starbucks opening its stores

maybe that doesn't tell us if there's a second wave coming but it does tell us that american businesses are seeing enough demand and pickup to feel safe opening those stores >> no, that's definitely true. and to be clear, i was referring to the cases of transmission of the virus. you're right, there's no reason not to trust u.s. corporate reporting out of china >> all right jonathan, we -- i think andrew's talking. >> i have heard some speculation among some corporates that the chinese government pushed those companies to open up so, this becomes a very interesting issue. yes, these u.s. companies like apple are open and are saying they're open we haven't heard any numbers out of china in terms of genuine demand, though i think that's a real issue. >> yeah. look, i just don't feel like i have enough visibility to make

any useful proclamations on that i think the world needs to remember, particularly for the next time -- hopefully we get through this pandemic, but this is not the first time a pandemic has originated in china and it's not the first time that the public health information being covered up at the start has caused it to spread further than it needed to it happened 18 years ago with sars it's happening in a much worse way now. that's why these lessons need to be learned going forward >> jonathan swan, thank you. you are opening yourself up to book judgment on your bookshelf there. it's happened to all of us get ready. people will be looking to see what -- oh, i see "good night moon." you're not quite as sophisticated as some of us. "very hungry caterpillar". >> yeah, yeah, that's what i stick to >> thanks,on thap. >> thanks, guys.

>> the immediate fate -- i do know the names of those books. the immediate fate of the airline industry could be decided soon as bailout talks in washington are settled phil lebeau joins us now with more aerospace, automobiles, bring it to us, phil. what's on your mind this morning? >> well, we're talking about airlines we'll talk a little about boeing because there has been news with boeing overnight the airlines, premarket these stocks are under pressure. the question is this $50 billion bailout being debated on capitol hill the senate favors these happen in the form of loans not in the form of cash grants that would immediately go to the airlines that is not what the airline industry wants the concern is that if they have to go through loans, a, the market will not be as robust if they need more money down the road and, b, if they get cash grants that soothes the investor market, soothes the credit market, it is a vote of confidence for the airlines. by the way, they say there's going to be masillaeoffs if they don't get at least half of that, the $25 billion in cash grants

let's take a look at what we're seeing with the airline stocks premarket they're under pressure and they are saying they need these grants in order to avoid masillaeoffs southwest today cutting a quarter of its schedule. 25% of its flights are gone. it's going to be ending any international flights. remember, they have a number of flights down to the caribbean. also united airlines on friday night, first they said, that's it, we're essentially throwing in the towel on international flights. then they came back within 24 hours and said, we'll keep some because people overseas need to get back to the united states. don't be surprised if we see a similar move by other carriers jetblue will be cutting back its schedule to less than half of its flights. boeing, you have them suspending dividend stock buyback ceo and chairman saying they're

forego their salaries. that came out on friday. then a report in the seattle times that a worker at the everett plant, which is still in operation, contracted the coronavirus and died we had reached out to the company. all they would say is they're respecting the individual's privacy. we'll try to confirm the details. for now, that plant remains in operation. that's where they build the 777 and dreamliner goldman sachs moving it from hold to buy. when you look at that note, there are a lot of caveats in terms of what you have to believe will happen in order to believe that this is the time to buy shares of boeing you have to get the airline bailout, have you to get the airline business coming back not just here in the united states but around the world. we're going to be watching boeing today you see it slightly higher premarket. this is the story of the day, what happens with this bailout. >> i don't see how any of those things are just not sort of

essential. it just seems like -- i know it's not done yet but i -- we're going to need, unless we buy all of our planes from airbus, i think boeing a year from now will be an ongoing concern i can't imagine all the shareholders would be sacrificed >> i think the question comes, when you look at boeing -- not that it will be bailed out but washington will make sure boeing is bailed out in some fashion. a couple of things, one, does it happen fast enough so this company does not have to pursue bankruptcy over the next couple of months. does it happen in the fashion they want it to happen and, two, by the way, boeing says bankruptcy is not on the table right now. two, what happens with the airlines i think that's the bigger question right now you will see some shakeout, maybe not in north america, you will definitely see shakeout overseas southeast asia, don't be surprised if you see a number of carriers go away that question is out there in terms of demand.

how robust will it be, let's say, nine months from now, two years from now >> yeah. >> look, i think boeing -- i think the airlines are all going to be here but the question is, what happens? i mean, are they going to ever be able to buy back shares for the next four, five years? are they going to be able to hand out dividends again there's all kinds of questions, not only to the shareholders there right now but how these companies can operate in the future. >> you're right. i'm listening to eamon's report out of washington, and as soon as you see some progress being made, then you have something coming in where somebody says, i don't like this, this and this i think everybody thought by today we would have progress we don't see it. that's why you see the airline stocks under pressure. >> phil, can you help us understand one thing one of the things the airline executives are telling washington right now is that they need the bailout because when, in fact, the recovery happens and we want to get the economy moving, they need to

have all their people in place, they need to have their planes in place and get those planes in the air. all of which is very true. the question is whether that can or cannot be done while a bankruptcy filing is taking place at the same time, which is to say that during bankruptcy protection, airlines continue to operate. this becomes a question of whether the shareholders are to be protected or not. one thing i want to understand, i gather a lot of the executives and ceos are telling congress and others that if we -- if we falter here, we won't be able to get the economy up and running is that true or not? >> depends on how much you believe these airlines will snap back and how much demand will snap back. what do you mooef, andrew? i can tell you i know -- >> i know, but - >> nobody at all believes we'll see the demand i can tell you what i hear from airline executives look, in general - >> what i'm asking - >> when i checked in -- go ahead.

>> what i'm asking is the structure of -- the structure of the airlines itself. i agree there's going to be demand issues and all sorts of problems the question is, can they operate and still have their - >> yes, they can operate. >> pilots in the right place and flight attendants in the right place and get up and running in bankruptcy relative to -- >> yes, sure. >> -- being fully bailed out -- okay that's the question of the moment if that's the answer, i think it undermines some of the airlines' argument having said that, you can make a different argument, this is a natural disaster and everybody should be protected the exact same way >> andrew, covering these companies a number -- they all went through a bankruptcy back in the -- between 2009 and 2012. that's why you had the mass consolidation. they really did. all of them went through bankruptcies they continued to operate. that's not a question, whether or not they'll continue to fly if they have to go into

bankruptcy what they're arguing is, look, you want to avoid masillaeoffs, you need to help us out now. we need cash grants otherwise, a, there's going to be masillaeoffs it's going to be more difficult when demand comes back if you believe it snaps back, they want to have their people in place that's they're argument right now. give us cash grants to avoid masillaeoffs if you make us go to loans, the market may not be as robust three months, six months down the road it will be a lumpier return and there will be some furloughs or massive pay cuts >> all right, phil, thank you. >> all right, phil, thank you very much. folks, let's bring in brian goldner, ceo of hasbro, the toy industry impacted by the coronavirus. thank you for joining us in our household, it might as well be christmas. we ordered a lot of different toys to keep the kids occupied wild under house arrest.

what impact have you seen on sales? >> overall we are seeing great demand in our products and we're trying to satisfy demand in a couple of ways certainly our games, our play-doh products are selling quite well we're trying to get programs out there. this week we launch program called bring home the fun to give parents resources they need to keep educated and creativity going on and foster family connection we also see a great demand in the communities for help of people who can't afford our toys and games. so, we're working with save the children, 200 locations across the u.s. to get products out to them, to get resources out to them we're working with no kid hungry to make sure kids are getting the meals they aren't getting at school every company can play the role. heard the conversation going on this morning four our company and for our people, that's about kids and

families and trying to make a difference there yes, we're seeing a great demand for our products in fact, our supply chains are back up and running in china we can talk more about that. we also want to make a difference in people's lives as they are struggling on the emotional and psychological side of having everybody inside together >> that's huge you're trying to reach out to families that can't afford to buy these things when you say you're seeing great demand, does that mean sales are actually up for you? >> well, our first quarter has been quite good. we'll report in about a month. we may miss some shipments as we're catching up, as production is catching up we believe by april our production will be fully caught up and we'll make up that difference you know, again, subject to what happens around the world as certain markets are closing while others are still open and robust yes, we're having a good start to our year and we're very focused on both sides of the

equation, ensuring we're creating good commerce so we can pay our eople, and we're payin our people many people around the world are working virtually. some of our people can't work virtually. we want to keep everybody on the payroll. in order to do that we have to have great commerce, and we're doing that >> you mentioned that your supply chain in china is getting back up and running again. where are your plants in china what have you seen >> so we work only, as you remember, becky, with third-party vendor partner so, overall plants are, as of this week, back up in china. i will tell you there's been a bit of a shift in hong kong. you may have heard overnight there's been more cases in hong kong so, our teams in hong kong are back to working virtually as of today. i was just on the line with our team in hong kong. but shenzhen and shanghai, the teams are in the field, they're working, they're using the highest protocols in terms of health and safety. we are at full production as the

end of this week obviously, it will take a few weeks to catch up. we have a lot of demand for our products around the world. >> you mentioned play-doh. what other brands -- we have a ton of nuferf things the kids a mag in the yard with what other products with a surge in demand? >> we create most am of the games that people love and have loved for many years mond monopoly, game of life, operation. play-doh has been a big brand for us, but most of the games out there that people really find to be fun, where everybody knows the rules. we also have a big digital gaming business. we continue to see growth there. magic gathering for that older audience has performed quite well where older people are connecting we have a magic the gathering arena which is an online gaming forum. that's in our fantasy gaming business out of seattle. there's a team that has done

tremendous work and they're working virtually like the rest of our company has been for the last week. >> brian, how many employees do you have >> about 6,500 we just added a new line we made an acquisition just over the holidays we have a tremendous team doing incredible work all at a distance we're getting a lot of use out of microsoft teams. >> no layoffs? do you anticipate having to make any? >> no, we're not going to make any layoffs. hasbro is in a really good financial position we have over a billion dollars in carbon our balance sheet. most is in the u.s we have access to another billion and a half dollars of evolving credit lines which we are not going to draw down on. we continue to see good sales. obviously our finance teams and

everyone else is working 24/7. we've worked through every one of these days and it's been clear what's happening board is very supportive to continue to pay our dividend we continue to pay our dividend and will pay our dividend and we are going to employ our people we think one of the roles we can play is to continue to give people the paychecks they deserve. there are people in our company who don't have access to laptops but we're paying them as well. they're co-ops and interns they're getting paid that's our commitment we've made. >> andrew? >> brian, just really quick. wanted you to get back to the issue of china and what you're seeing on the ground there i know you're not there but your people are to the extent that that's a model for what may or may not happen in this country, what it looks like, can you tell us more >> sure. what we've really seen is that there's been a return to work, and as you know, people came out of chinese new year and they were all displaced having traveled over chinese new year

then factories and other vendors, model makers and our own teams had to get back into place. took a bit of time so now shanghai is up and running. that's our sales and marketing teams for china. clearly sales in china have moved greatly online retail sales are down precipitously. we've talked about that tradeoff, and that's not total equal tradeoff our business overall in china isn't that big so it shouldn't have an overall negative impact on our company and then shenzhen is the heart of our manufacturing side and that's really, again, with vendor partners. so we don't own any of our factories. we clearly have people in there creating products, planning products and quality control and what we're seeing is that those partners are back up and running. the factory workers are back working and then just literally an hour ago i was on the line

with the hong kong team and we had had the team back in the offices as of this past weekend, there was a directive that people should now work from home again. there was a spike. and what's happening according to our team there on the ground is just as non-nationals are returning to china to get work going, they're bringing cases of the virus back with them and so they're trying to clamp that down in hong kong so that they don't have a rampant spread of the virus. so the team's working virtually again. >> hey, brian, thank you for your time today. brian goldner is the ceo of hasbro andrew. >> thanks so much, becky meantime, joining us to talk about the markets and where we may be headed, peter krause. founder of aperture investors. on this monday morning as we await and see what's going to happen in washington, what are you telling your clients >> hi, andrew, becky, how are

you? well, you know, not much different than the advice we discussed on monday last week, which is the market's very volatile it will continue to be until there's some sense that stability both in the health care picture and in the financing markets. if you're invested without leverage, probably hold your position it's obviously not a good time to sell equities and it's not a particularly good time to sell credit and that's -- you know, that's most of the advice that we've been giving. most of what he hawe've heard. there is an opportunity in this market for humans to outperform, for asset management to outperform and we see that, too. >> and in terms of dipping your toes in the water, are you suggesting people do or are you looking at this saying there's still another leg down >> well, i -- >> leg up? what are you expecting

>> yeah. you recall my comments last week where i said this is a market that can be bought if you have cash, this is a time to think about how to buy this market as it heads down. even in its most volatile forms. i think there is tremendous amount of history that suggests that markets recover over time this will be no different. we have a very unusual global demand in russia caused by governments protecting public health that will not last forever and when it goes away, the market's going to go up >> well, that may be, but here's one of the other pieces of this, and ray dalio spoke to it last week if, in fact, we spend something on the order of call it 3 or $4 trillion based on the numbers that citi was suggesting we need to spend, by default we're going to have, you know, issue with treasuries if the value of treasuries

falls, the value of assets fall. is that right or wrong >> yeah. i mean, look, having gone through 2008, i think you have to look a little bit deeper than just spending 3 or $4 trillion in 3 or $4 trillion there are a lot of loans some of those loans may be forgiven, a lot of those loans are paid back. the u.s. treasury is not going to have to go out and raise $4 trillion of money tomorrow some of that -- some of that money is a loan to the -- allowing the fed to actually go out and buy bonds or at least accept collateral for bonds. so i don't -- number one, we're not going to go out and issue $4 trillion in treasuries tomorrow. number two, you know, increased treasury yield over time, yeah, will reduce asset prices look, i had said for the better part of two years inflation is too low. and the markets are priced for very low inflation and benign environments and this may be one of the things that causes a

renewed growth in the interest rate now i don't want to say inflation because, you know, i lived through 1973 and 4 and inflation was 7% and bonds were 13%. i don't think we're going to see that, but interest rates in ten years could go up and that will affect asset prices, relate prices, cap rates on real estate those things will happen that doesn't mean that the values of the assets as we currently see them in the market won't go up from here. they will. >> peter, i saw kneel kashkari -- joe kernen you didn't say hi to me. >> joe, i'm sorry. i didn't, of course, see you i didn't, of course, see you i znt kndidn't know you were the >> the point be about treasuries is a good one. it can change at any time, obviously, but i did watch kashkari and scott pelly asked

him, i had to laugh, he said, you know, nobody is willing to buy our bonds now. basically saying that they're worried about buying our paper and kashkari said, you know, the 10-year is at .8 of a percent. i don't think -- >> somebody thought it was funny. >> why people go on -- fine, you get a much wider audience on "60 minutes" but you're going to get questions and comments from the people on that show. there is money still moving into our treasuries i mean -- not necessarily moving in, but it's not like, you know, we've seen a spike of 3 or 4 percentage points on our debt. it would be bad if we did obviously but so far -- >> right, joe. i think you're right i don't think that's going to happen you have to think about the 10-year treasury markets around the world as a global marketplace for safe assets. now, you know, the german bund is minus 39 basis points you know, the swiss securities

are i think minus 47 basis points so you can buy switzerland or germany at minus 47 or minus 36 or you can buy the u.s. 10-year at 80 basis points by the way, in the last week we saw a lot of people holding cash and that actually caused gold to go down, it caused oil to drop through the floor. so, you know, fear in the markets has definitely caused people to move to cash that will not remain and u.s. treasury will find an attractive rate it won't be 4% >> okay. peter krause, we appreciate you joining us as always i don't know if we're going to make this a monday thing >> that would be fun andrew, one thing that i've got to say before i get off because i've seen this picture before. last night the senate couldn't pass the bill.

i remember sitting there watching the senate and the house vote on t.a.r.p. they didn't pass the first t.a.r.p. bill. the markets fell, i don't remember, but dramatically of course they passed the second one, the markets recovered this is exactly the same thing there are going to be 2 to 3 million americans out of work. i think they're both republicans and democrats in that crowd. we need to pass the bill if washington is watching, get on it. >> i think we all agree the clock is ticking and we need to come up with a solution. peter kraus, thank you so very, very much. >> you're welcome. thank you. it is 7 a.m. on the east coast and futures are down sharply this morning as investors await a stimulus deal from washington. companies racing to find an answer to stop the coronavirus we're going to hear from the ceo of roche and the new york stock

exchange gets ready for the first day of the stock exchange. cnbc's special coverage of the coronavirus and the impact on the markets continues right now. and good morning good morning again i'm joe kernen along with becky quick and andrew ross sorkin we'll have team coverage this morning of the virus outbreak and the impact on the economy and the markets. we've got steve liesman now reporting on the fed and the bailout. meg tirrell tracking the medical front and phil lebeau has the latest on the airlines u.s. equities at this hour about -- cutting our losses in about half we were locked down after 6 p.m. last night and we saw the politicians in washington once again distinguishing themselves.

we were down limit and it has battled back to where we're now -- we've cut about half of that when i saw the futures come off limit it put me in a good mood which is insane that we are still down 6, 700. >> that's our idea of a rally. >> it is anyway, you're going to go into that washington mess now i think, becky >> that's right, joe we all were watching last night as the senate kind of stalled on trying to get through that huge stimulus package to give some aid and relief with what's happening with the coronavirus we will continue to watch that today. in the meantime, the fed is still trying to use tools in its toolbox. steve liesman is here. he's got more on what's happening in that front. steve. >> reporter: yeah, becky good morning it seemed on friday every half hour or hour the fed came out with another program it came out with some additional programs over the weekend.

let's go through what's going to happen today, because it is another historic day shaping up for the federal reserve. let's start with the idea that they're going to be buying today $40 billion of mortgage agency backed securities and $75 billion of treasuries. by the way, they pledged last week this week they would have $100 billion over the weekend fresh ri secretary steven mnuchin said there could be up to $4 trillion of liquidity from the federal reserve. no actual details on that. the money market opens today and not a day too soon on sunday the fed said, banks can restructure the debt with their small business owners or their borrowers and bring it to us at the window that's important first, let me give you a taste of what's going on jpmorgan writing over the weekend, quote, money markets are under extreme stress the rollout of fed facilities may help, a lot of damage has

been done to retail prime funds and ultrashort etfs. we'll see at the beginning banks are conduits, they take paper from the money markets, bring it to the fed for financing. we'll see if that has any help over the weekend, joe was just talking about, neel kashkari talked to scott pelly. what i found most interesting was what he said what else fed could be doing here. >> some people have suggested that we should be providing more support directly to the corporate bond market. i'm sympathetic to those views also the municipal market. so there's a range of things that the federal reserve could do we're far from out of ammunition >> reporter: so the idea that they'd be buying corporates and munis would be very, very new. we'll see if the fed use that is to protect the balance sheet the fed issued this guidance over the weekend basically telling banks, hey, work with your borrowers

work things out. we supervisors will not look down on you for that we'll not penalize you for that. also importantly they said if you work these things out and bring them to us, you can finance those loans, those restructured debt at the window. guys, it's not going to be any silver bullet here that's been clear for a couple of weeks now it's going to be a series of actions by the fed, by the fiscal side and we'll see finally at the end of the day if some of these credit markets start to operate more normally becky? >> all right, steve. thank you very much. steve liesman. >> joining us on the cnbc news line, mohamed el erian, chief economic advisor at allallianz we haven't spoken to you in a while. there was a weekend. what have you got for us this morning? i put out a picture of time square and i just -- i was going to put new normal or new abnormal i decided not to call it

anything it was very quiet. too quiet. what came into your mind over the weekend? got to be some new things. bullish, bearish, feeling better, positive, negative, what >> first, good morning, joe. thanks for having me look, overall the market call is a little bit more nuanced. it's not as urgent warning about the major correction as it has been, but for most investors i think you still want to be cautious out there but there's two areas i think we're not focusing on enough if i may, joe one is those people who entered this defensively and have a massive appetite for volatility. they're starting to be real pockets of value and they should be looking at that on the other side, those who are still holding on to corporate credit with really weak balance sheets and don't want to sell because their prices have plunged. remember one thing, the earnings

picture is being absorbed. the next round is the balance sheet picture. and defaults are really destructive of value if you are still in these very low weighted companies with low cash, debt maturing, you're betting on bailouts. and you're betting on generous bailouts understand what you're betting on because this is a very tough environment, not just for earnings but for balance sheets. >> and in the end do you really -- i mean, should you just assume that these politicians are going to get it together i mean, if they don't, they could be what you just described would not happen for some reason it just seems like eventually that old expression that they'll eventually do what's right after looking at all of the alternatives and finally settling on that is it right? >> yeah, i'm pretty confident

this will be the same as what we saw with t.a.r.p the first one doesn't get through, the market gives a clear signal it's not the market. i've participated in a number of town halls people are suffering there is real pain in the street this is an economic sudden stop that takes away your livelihood, that makes you feel insecure, that takes away goods from shelves. i mean, this is a real hit and people are looking to washington to do something but understand, this is also a really tough policy design the best you can do right now is protect and contain the damage you can't erase it overnight that's a health issue, not an economic and financial policy issue. you're going to see a much bigger emphasis on people than companies in 2008. that distinction is going to have implications for different segments of the markets.

>> the -- we've gotten some -- you've actually put numbers, not everyone does that, numbers on the eventual levels that we'll see in the s&p and the dow have you changed your forecast there? it's like a fool's errand to try to get too specific about it, but do you think we're closer to the bottom than we are to the top at this point, mohamed >> i think we're closer to the bottom i was worried because of the initial conditions people tend to forget what initial conditions are it really matters where you start from in terms of what you get to we were very stretched we were very stretched because liquidity had taken over as the main driver of markets i think we have unwound most of that, but we've also created dramatic damage in the process we haven't heard yet of pain in the asset management industry. that's going to be your next round of stories because there are massive outflows going on.

so, you know, that's why, yes, we've come a long way and we've certainly got to the 30% i was worried about. that was the upper end of the range when i said we assess at that point we've gotten now to 30%. for most investors out there, be cautious we are in completely unchartered waters here. >> okay. mohamed, thank you watching the workings of all of the yields and the federal reserve bank and the fed, you don't see any big problems in listening to kashkari did he make you feel comfortable that the fed can respond to whatever needs to be done and the workings of the credit markets >> i was very critical of the fed a week ago telling you that i was both baffled and upset with what they had done. less so starting on tuesday when they finally focused on market

imperfections and started moving as steve said, a lot of damage was created in the interval, but they've moved on to three market segments and we're already seeing stabilization of the treasury market, and that is great news in so many ways the one thing that i noticed yesterday and i'm really surprised they haven't done it yet, kashkari mentioned it, is municipals and corporate credit. those markets are still dislocated those markets are still causing a lot of stress in many different areas and i'm really surprised we haven't seen anything yet i know it takes the treasury's back stop on this, but i think that is an urgent area for policy action. >> andrew? >> hey, mohamed, just wanted to get your thoughts on james bullard's call over the weekend of we could see unemployment of up to 30% this week. i was just in shock when i saw the number i know the treasury secretary

has talked about 20% and that unto itself was shocking some thought that might be a tactic to try to get congress to move on this how do you see this playing out? 12 months out, assuming -- and maybe it's the right or wrong assumption -- that in two or three months from now we have some form of resumption of our economy, maybe people are wearing masks, maybe other people are being self-quarantined who are at high risk, but assuming something like that happens, what do you still think it looks like? >> so first, as bullard said, he said 30% unemployment, 60% hit of gdp in the second quarter i think the 50% hit in gdp is something we should think about. i know that when i look around i see the best business -- forget grocery store, but the best business, the restaurants that were able to convert to a to go window operating at best at 1/3. so this is a massive gdp hit and

that's why i've been stressing be careful of the economics of sudden stop. they really are destructive. so i think, you know, that we will go beyond 10% on the unemployment rate, which was the peak of '08-'09 that's not going to be the end of it. i think bullard's message is a very clear one, which is get ready for some horrible numbers, historic numbers when we bounce back, andrew, which we will, we are going to power through this it's not going to be easy. we are going to power through this it's about the journey, not the destination. when we bounce back we will reemerge and markets will bounce in a big way, but we are going to reemerge to a different landscape and we have to realize this in terms of markets, you're already talking about the different landscape for interest rate risk. it will also be a different

landscape for liquidity risk, equity risk and credit risk. as soon as investors are able to manage through this period, and i put an article on this over the weekend, they're going to have to think about what the new landscape looks like it will be a new new normal. >> muhammad, but help us here. if the stock market is back to 2016 levels right now, if you're talking about a world in which we have unemployment that likes we are in 2010 and we're having this revaluation, if you will, of treasuries and everything el else, should we think that the market is going to have a massive bounce back? >> so the -- certain segments of the market are going to have a bounce back, yes this is an individual story. i'm sitting here looking at companies whose business ironically is going to benefit in the post crisis world, who have very strong balance sheets, who have a ton of cash

so for them neither the journey nor the destination are crippling. they've been hit very hard because they're part of the neighborhood and the neighborhood has suffered a massive change in its paradigm those companies are going to come back really strong. that's why i'm saying that there is areas of long-term value even now before we turn around, okay, but you have to have a tremendous ability to withstand volatility. >> all right, mohamed. thank you. we will check back with you hopefully tomorrow or the next day for more comments. we appreciate all of your analysis that you've been bringing us since the beginning of this. thank you. andrew, you have mentioned jim bullard a couple of times and the comments that he made yesterday. he'll be joining us tomorrow on "squawk on the street" to talk about his prediction that you could see a jobless claims of 30% in the second quarter. when we come back, over the weekend the president talking about a two-drug cocktail that

could help in the battle of coronavirus. meg tirrell has been looking at that she will join us ken langone is going to join us to talk about everything that he's seeing. what home depot is doing to battle the coronavirus and what he's seeing at nyu langone medical center which is in the heart of this. let's look at the futures. down by 400 points looks like the dao is down 501 that's more than the s&p and the nasdaq stick around, "squawk box" will be right back. life isn't a straight line. and sometimes, you can find yourself heading in a new direction. but when you're with fidelity, a partner who makes sure every step is clear, there's nothing to stop you from moving forward.

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welcome back to "squawk box. the president tweeting on saturday morning about a combination of drugs he says have a real chance to be one of the biggest game changers in the history of medicine. i want to get over to meg tirrell who joins us with the combination and the data behind it meg. >> reporter: good morning, andrew it's the combination of two existing drugs, one is hydroxychloroquine and one is azithromycin he's saying this has a real chance to be one of the biggest game changers in the history of the medicine hydroxychloroquine treats malaria and rheumatoid arthritis

and a zit throw my sin is an antibiotic what he was referring to is a small study in france. 36 patients, 20 of whom are on treatment. those who took hydroxychloroquine, 57% cured in 6 days then when they looked at the combination with the antibiotic which was given to prevent secondary infections, 100% were cured at day 6 there are major caveats with the study. the small size that was only given to six patients concerns about cardiotoxicity. safety issues for the heart in particular of this combination still, many saying this is potentially promising and it needs to be tested more rigorously and on a larger scale. new york is starting to do this. the fda is shipping 10,000 doses of that combination for a trial to start on tuesday.

the w.h.o. is starting multiple trials including this one. there are many going on at the university of minnesota on hydroxychloroquine doctors are starting to use these drugs to treat covid-19. we're seeing a massive spike in prescriptions which means, according to premiere, you're seeing the data and the demand, patients who need these drugs for other things like lupus and rheumatoid arthritis aren't able to get them now. many are concerned about the use before true clinical trials have proven that they work. hopefully we'll get this data pretty soon, guys. back over to you. >> it's not the first time we've had off patient or off patent prescriptions or -- >> off label. >> off label exactly. we've seen that over and over and over again i mean, i understand -- i mean, the unintended consequence i understand with lupus and other diseases, meg, but the anecdotal evidence, maybe we're hearing just the positive anecdotal

evidence but it does look pretty promising. i know you saw dr. fauci after they tried to start a pretty big controversy that he was sort of in stark contrast to what president trump was saying, and he basically said, we're on the same page. he's a layman who wants to give hope and i'm a scientist and doctor that just wants to do it the right way through clinical trials, et cetera. the side effect profiles are already pretty much well known to do it off label for compassionate use for people that are really, really sick if it's available, if we can make more, seems like there's some merit to that. do you agree with that >> reporter: well, certainly we're in a situation that's unprecedented. people are trying anything they can. hopefully the clinical trial results can come quickly so that we will have better data to make these decisions. there are other drugs that doctors can consider using as well >> right >> reporter: so we need all of

that data. >> you can do the clinical trial with the 10,000 cases -- 10,000 doses that cuomo has that could be part of it that could be an in-process clinical trial, right? >> reporter: well, that's what it is. they plan to start the trial in new york tomorrow. >> okay. >> reporter: and also companies are really ramping up production of this, but right now there is a squeeze on the system. >> okay. >> can you explain one thing to us this is the thing i've been trying to understand i've been speaking with scott gottleib and talking to him indirectly about it as well. when the president sends out this tweet and it becomes a commotion, is it because they don't feel there is enough science behind it and that there are worries about what it's

doing or giving people false hope or is it that they don't believe the drug works the reason i ask is i've been asking scott gottleib about this drug for a week or two and every time he comes on he is skeptical if not dismissive of it. >> reporter: yeah, well, let's hear more from him this morning. i don't get the sense he's 100% dismissive of it i think that people think there is potentially promise here, but i think what you outlined at the beginning, that the science hasn't proven it's worked yet. that is what the scientific community thinks now, they want more evidence. the way they count evidence is through randomized clinical trials the way dr. fauci was describing it, as anecdotal data. we need more rigorous trials to really know. i think that's sort of what i'm hearing from the scientific community. >> you don't know whether the patient just recovers on his own or recovers from the -- you read about it a couple of weeks ago

on all the social media sites, andrew good job we've been talking about it. but we get it. it's good. i know that's good. you've been bringing it up but it was all over social media at that point, right >> look, actually, joe, i'll tell you what happened i spoke to an investor about this about a week and a half, maybe two and a half weeks ago who was actually talking to them in south korea originally and then after we started talking about it, and i'm not saying that we were responsible for it, but it did start to emerge in social media i tried to make it an issue because it is something that now the president is talking about whether he should be or not i think is a real question and we're going to talk to scott gottleib about that. >> okay. gentlemen, thank you very much meg, thank you we'll check in with you again, too. it has been one week since roche was granted approval for a quick and automatic coronavirus test kit that was rolled out to

the tune of hundreds of thousands last week. joining us to find out how that is going is severin ss schwan of roche. >> if you know, we have been the first company to provide liable coronavirus tests, which was approved actually nine days ago in record time and as committed, we have now provided 400,000 test kits over the last week >> what does that mean i still hear stories anecdotally all over the place about patients who can't get their test results back or can't get tests, doctors who are having issues moving people to the front of the line. are they using different tests is something else that needs to be done to get the test results back in? >> for the time being, demand

continues to be much higher than supply the good news is in addition over the last week other companies have received approval for their respective tests reality is that broad-based testing is not yet possible. it's really of utmost importance to prioritize testing, to focus testing where we can get the highest impact for patients and the health care system so that means we need to prioritize on high-risk patients and patients with signs and symptoms of the disease. >> where are your tests being sent, the 400,000? >> they are sent across the entire country we have labs in all states they're also national labs with well-established distribution

channels really it's not about the distribution network as such, it is really about the capacity of tests and lab resources which currently limits testing >> for your tests though, how quickly does someone get back the results? >> the test as such delivers results in 3 1/2 hours, however, you have of course to take a swab beforehand, you have to send the sample to the lab, it has to be processed and then it still takes some time until the patient gets the test results, but typically it should be possible to deliver the results within 24 hours. >> severin, you mentioned right now that it's most important that we are getting these tests to the people who are at highest risk, the patients who are at

highest risk and in most dire straits. we need to be doing broad-based testing to people who are asymptomatic, that's the only way you get a real read of how infected the population is and how this thing is spreading. >> no doubt. ideally we would have broader testing, but at the moment capacities are limited and that's why we have to prioritize the tests to the high-risk patients and those with signs and symptoms >> how long do you think before we get to that point where we can be testing everyone in the united states? >> i think this is still a couple of weeks if not months out, and the reason is very simple on the one hand, the industry is increasing capacities, but at the same time as we are all aware, infection rates are increasing even faster so at this stage it's of utmost importance to prioritize testing and of course in more general terms to do everything to flatten the curve.

that is, to reduce the number of new infections so that health care systems are not overwhelmed. >> severin, thank you very much. the ceo of roche, and we appreciate your time today. coming up, legendary founder of home depot, ken langone will join us, invemed associates. and then kyle bass joins us to talk about the idea of shutting wn tdohe markets until we see that new infections are decli declining. we'll talk to him in a few minutes.

welcome back to "squawk box. the market impact taking place right here on cnbc let's show you the futures dow looks like it would open down 627 points. nasdaq looking to open down 827 points the s&p 500 looking to open down 77 points. want to get over to becky quick right now. becky? >> andrew, thank you very much this morning nearly one in three americans are under strict stay at home orders this is all happening as the nation tries to fight

coronavirus. joining us right now on the phone to talk about business's response and what's happening on the medical front on this is ken langone. he is the chairman of invemed associates, the chairman of home depot and the chairman of the board of trustees at the nyu langone medical center. >> good morning, becky thank you for having me on >> so, ken, what are you seeing right now? i know you're involved, ken, in every aspect of this, just seeing what's happening on the medical front. let's be positive. the doctors, nurses, ambulance drivers, these people we're mentioning are the infantry of the war. they're doing a great job. they're at risk themselves the health care industry, what a job they're doing. the pharmaceutical company,

everybody is pitching in for example, i've got tom joyce on the phone, tom joyce is the president of danaher sethien developed a new test everybody is in high gear doing what they can. it's a massive international effort there's a young man in washington by the name of gnat turner he sold his money to roche here he is, i can reach him almost 24 hours a day, based in washington, doing everything he can to keep the pipe lines open, the supplies, where they are, where they're needed let's take a step back and take a look italy is at a stand still. the per capita icus in america is twice the icus per capita in

italy. you want to get a system where you go on the cheap, that's what you do we ought to take this opportunity to refresh our minds about what we have and be very careful, be very careful that we don't kill the goose that's laying the golden egg. right now we're reaching out to haynes corporation, textile company, joining up with a private company called parkdale america. what are they going to do? they're going to start making masks next week. we need masks. we need eye protective wear. we need outer gear why? because if our providers get sick themselves, we're really in trouble. we have to make sure that while we focus on the patient, we also are spending time and effort to make sure we protect those people who are at the lines delivering their health care in real time. so much for that the other thing is we're making

every effort imaginable. we can go through this and rationalize a number of deaths we lose that number in the flu season we're not taking that position we want to make an effort to save every life we can, no matter the cost. that's our value system. that's what makes america precious now to our people in washington, get off your asses there's plenty of time to argue philosophy and points of view. right now we need a bad transfusion in america they better get it done and they better get it done today i hate to be -- maybe i'll give you a little bit of humor in this i'm reminded of the dog making love to the porcupine. how good as it is, how much of it can i take? these people need to understand they're being watched. they better redeem themselves by what they do, both parties not just the democrats or the republicans, both parties. this is a national effort. i am impressed with what i see

so far, becky. home depot, lowe's, haynes, all of these companies, they've all got their shoulder to the wheel. they eve they're all doing their part we're aware we have a national crisis and we're dealing with it all i can say, becky, everything i see makes me feel proud to be an american. very proud to be a capitalist. i would be remiss if i didn't take advantage of an opportunity. you want a one payer system, go over to europe and see what you get with a one payer system. we have the best health care system in the world? yes. can it be made better? yes. let's not throw the baby out with the bath water. we're proving how precious it can be lily said a major effort on research roche. pfizer they've pushed everything else aside. they've pushed everything aside and said, here's where we have

to be. here's what we have to do. i'm watching it. dick ball is up at columbia presbyterian i normally dial for dollars. i'm dialing for test kits, masks, dialing for eye shields these are the things we need and if there's anybody out there listening that has an idea how they can help, we need it now. please come forward and help us get this done. so, becky, that's my point of view >> let me ask you because that's an incredibly positive view. it's very optimistic and i love to hear what's happening behind the scenes, how companies are stepping up to help out but i also keep reading these articles in the wall street journal and other places about how those people on the front line, the people that you are so proud of, that we are so thankful for, the health care workers out there, how at this point some of them are having to reuse masks, having to rewear surgical gouwn. how quickly will it be addressed by all of the moves that

companies and others are taking? >> let me tell you what you do this is management we're taking the position that the people that have direct interface with the patient are the ones most at risk. so we're making sure that they have adequate -- we're not cutting any corners. anybody who thinks -- this is dramatic oh, my god, we're reusing them they should be thrown out. a lot of nonsense. we're doing nobody -- nobody i know of, not only nyu but columbia, cornell, special surgeries, sloan kettering, none of us are going to compromise or risk these people. as i said, this is the infantry. they're in the foxhole they're shooting the bullets back if they get sick, we're in trouble. i'm sorry, becky, there's no compromise of quality. i can tell you right now, the media ought to take a pass on sarcasm or sensationalism. we have enough sensationalism of the problem. one more thing, becky, very interesting. the highest underlying condition of the people that we see that

are dying, ready smoking and obesity. two things you can do something about yourself you can stop smoking you can do something about controlling your weight. not easy, i know it's not. i've been fighting it all my life not easy atz all and it's a never ending fight, but these are things that we can have some control over that can have an impact god for bid if we had a crisis again. becky, primary question, no way. we are not compromising on anything and we're scurrying around to make sure that we have all of these things for the exact reason you cite, that we don't reach the edge where they should be exchanged or discarded for a new one. >> ken, you said you're watching what's happening in italy very closely. >> right. >> some of the numbers there have been incredibly concerning. we're 8.3% of the cases there are among health care workers. >> right. >> are you convinced that we're in a much better position that that's not going to happen here?

>> never say never, okay right now i would bet my last dollar we're not going to have the experience they did. number one, lifestyle. i'm an italian we love to hug, we love to kiss. they also say we like to use a gun every once in a while. what i'm saying is the way we live as people in italy, you have multi-generations living in one house. the child, the mother, the grandmother. so these are all things that contribute to what's going on there, but i come back again and this is where i'm pitching i love our health care system the way it works that's a single payer system over there that's what you get. the number of icu beds per capita, we have twice what they have why? icu beds are very, very expensive. think about the labor and the intensity of labor and effort. but guess what you don't want to cut back on that because that's where -- that's the ultimate line of defense to keep people alive

so -- >> ken, that's -- >> my guess, becky, it won't be as bad as it is here as it is there in terms of proportion >> right right. that's good to hear. >> by the way, andrew cuomo's doing a hell of a job. what a job he's doing and i'm proud of him and i'm proud to know him i scream at him a lot, but i want him to know he's done a hell of a job in this crisis. >> ken, what about home depot. i know you've been talking about the extraordinary measures they're taking at home depot can you describe it a little bit? >> yeah. the store hours are being shortened so we have people available to restock the shelves. you know, we're continuing to stay open. by the way, we've increased paid leave, an extra 80 hours for each full-time employee and 40 hours for each part time employee if somebody wants to stay home in this period of time, although i must tell you this, it looks

like most of our people want to show up for work it's wonderful to see. they want to be there for the customer they want to be there to help the customer through it. no doubt about it, our business is beings impacted, but i can tell you right now, home depot is presenting itself -- by the way, lowe's as well. lowe's voluntarily called last week, we've got some n-95 masks, we'd love to have them they sent them to us we got them look, we're showing ourselves as a nation at our very, very best. god bless america. when i say don't give up on america, i'm telling you right now, we're proving again and again and again why we should never give up on america home depot's taking every necessary step we're doing it we're intensifying our supply chain management we're intensifying making sure we have those things that are particularly important during this crisis at this time and so far so good. >> andrew? >> hey, ken, i love --

>> hi, andrew. how are you? >> boy, i hope you're right. by the way, please stay safe and stay healthy that's the most important of all of this. >> i am doing just that. >> good. good you should be in bubble wrap, my friend, bubble wrap. my question to you is to the degree that we do get out of it, we do come out of this or -- and i don't know when you think that's going to happen and we get to a point where we try to rev some of the economy back up, maybe people are going to ultimately be walking around wearing masks, taking temperatures, do all of that home depot, i know a number of big companies are starting to think about what that actually looks like, how they're going to protect their own employees. what society is going to look like even over the next few months have you thought about that? have you started to talk to people with the thermometers and all of these other technology? the other piece of it is what you think is going to happen to privacy and civil liberties?

i don't know what i think about this before. i think people have to share their information in ways they historically have not. >> look. go back to 9/11. our lives changed dramatically before 9/11 i could walk into any building, go up to wherever i wanted to go to see what i want to see. look at the security now look at the security on the airplanes. our lives will and should change does it make sense we have a strategic petroleum preserve to keep ourselves warm and air conditioned or keep our trucks running? does it make sense that here we are short basic things like facemasks? why wouldn't we have a strategic reserve of these products? if there's a shelf life, you pay the cost and bring new ones in what we're doing now is we're being given a lesson as we learned in 9/11 that we have to be on our guard. the same has got to be true here now i think you could accomplish

whatever you need to do without invading privacy i told you this morning that the two biggest single co who are bid at th -- cou morbidity are smoking ad obesity. there's a take away and here's what it is -- andrew -- by the way, home depot, i'm sure they have people planning -- understand, i'm retired, been off the board for 12 years still the love of my life. i still go to the stores i still talk to craig and i talk to frank and i talk to everybody i can, not for any reason other than to let them know how great they are and to let them know how much we're doing right now home depot's focus is one thing and one thing alone. taking care of our people and making sure we do everything we can to help the nation get over this crisis. there will be plenty of time to do strategy and tactics going forward. and i'm sure there may be some

of that going on right now, but i'll give you a for instance last night, sunday afternoon, theresa rosebon, she's executive vp and general counsel i called her because her job now is managing facemasks, among other things this gives you some idea of how we've created a baby marshall plan to get the job done by the way, we will get beyond this we will get beyond this with minimum -- thank god, with minimum loss of life tragically we're going to lose lives. hopefully there are a lot less than there would have been if we weren't doing what we're doing andrew, each of us as americans today ought to be so proud to be an american, each of us. by the way, a message to these kids that are on the beach, get your ass home and worry about your grandparents and make sure you don't bring that bug in because they are the ones who are at the highest risk. if you love your grandparents, and i hope you do, then you better make damn certain you don't put them at risk i think it was -- in fact, i got a message to the governor's

office down here in florida, shut the beaches shut them. let them go home we've got to get the problem fixed. they're not in college i'll tell you what they should do call up a local hospital call up a local health care provider see if you can volunteer to help out. this is what brings america to greatness. these kinds of things. we've done it before and we'll do it again. look at what we did in 1939 and 1940, the world had an existential threat hitler, fascism. guess what, in a matter of 18 months we were ready to go look at what we produce in this country. we were the arsenal to the world and as i said, i wrote jerry spire a note this morning, we are the arsenal. we, america, the pharmaceutical company -- now i'm making a pitch because i'm a significant investor in these pharmaceutical industry i am so proud to be an investor

in the pharmaceutical industry bernie sanders, get off their butts. they're doing a great job. they're saving lives they're pushing aside the profit motive. >> ken, we have to go, but before we do quickly, can you just tell us what you think about the new york stock exchange floor is closed but they are trading electronically. you see on the board there, no problems with that >> no, no problems at all. in fact, most of your trading is electronic anyway. you asked the question, i'd be surprised if it ever opened again. if you go down and look at the floor of the stock exchange, there aren't many down there anyway i remember the old days, you had a mountain of paper on the floor from the handwriting of all of these messages that's all gone. we can do business electronically so my own feeling is that probably there's a good chance -- i say probably, i wouldn't be surprised if they didn't open the stock exchange again. that's one thing we're proving the system works

by the way, any nut that's got a notion they want to shut the markets, because you'll really create the crisis then, let the markets do what the markets are capable of do. it'll adjust leave it alone. >> thank you we love talking to you thank you for your time. >> keep the faith. by the way, i've been sitting here a little while ago i noticed the sun pop up over the horizon. there's another day in america we're going to be great. take heart say your prayers and do what you can to help each other. >> ken, thank you. ken langone, talk to you again soon. >> thank you meantime, that's a great segue to our next guest. talking about a shutdown of potentially not just the exchange on the floor itself but the exchange itself. the markets that is. that's what our next guest says needs to be done want to bring in kyle bass who's on the phone with us founder of hyman capital management kyle, you just heard what ken langone had to say you have a very different view

of this. >> yeah, hi, andrew. i know he said, you know, let the nuts not close the exchange and move on, but let's just look at this from the perspective of u.s. financial security, which then moves into national security issues. you have $25 trillion of global market caps been lost. we're going to end up printing -- i think we're going to end up expanding the fed's balance sheet 5 or $6 trillion you have a $23 trillion economy that's going to be off for at least two or three months and you think about the way that generational wealth is lost. we have the boom jerers approac retirement many of which i've talked to over the last few months -- last few weeks, sorry, and you have decisions being made out of fear and i realize america is the greatest market to invest in i've said that before. there is no better place to put your money there is no better place to invest and/or work when you look back to special

events around the world where the market has closed before, as we enter into world war i, we close the markets for four months in 1987 there was no haltd, you know, in '97 we had circuit breakers and 9/11 the market was closed for a week but when you look at what's going on, andrew, we all know we're going to get to the other side of this the problem is every single day we're going to see worse and worse news until we hit peak infection. if you just look at these curves, i don't know when that is sometime in late may. >> kyle, are you arguing -- how long would you close the markets for? clearly there becomes liquidity issue and by the way, yes, we will get over it i think there's no question we will get to the other side and we have to be optimistic and hopeful that we do if we don't, boy, i don't know what that looks like when we do, what that even looks like i think is still up for grabs, i hate to say, therefore, where the market is is still a

very open question no >> now, look, i'm a free market capitalist this is antti they tithetical t being. look at the pros and cons. get out a blank piece of paper if things worsen if our government believes somewhere around the end of the first week of april that our ers and icuss will be overrun. we'll be making decisions, decisions like italy's having to make as to who's living, who's dying, people's fears are going to be really challenged over the next few weeks where you and i both know if i told you we've finally reached peak infection whenever that is, a month, month and a half from now and then we'll re-open the market when we see the light at the end of the tunnel i think that saves a dip of maybe another 40%. i'm trying to think about those boomers and people who will make

decisions down another 40% >> kyle, that's how markets -- >> you said down another 40%. >> that's how a market clears. that's how a market makes a bottom and it discounts. it will know long before us that maybe the peak of the infection rate that you're talking about may not be nearly as bad as what you're seeing. i can't imagine that you -- that i think you believe that investors aren't smart enough to look past this and they're going to be so scared by the daily news that they are -- you know, that we need to somehow protect them from themselves when, in fact, you know, the nature of the market, i know you know this, the nature of the market is that it's going to take into account a lot of the horrific news and if it deserves to clear at those much lower levels, let it clear otherwise, the bounce isn't even real. >> i hate that all of us professional investors would agree with that. i any we would all agree

the average american isn't a professional investor and i think about the generational wealth that's been lost. think about the manner in which those that grew up with parents and parents of parents that went through the great depression of '29, it changed -- it changed the proclivities, it changed the operating nature of the manner in which people operated their lives. that's going to happen as a result of this calamity with the wuhan virus. i think it's important to note that this will change the way that people think about investing going forward for generations to come. this isn't just going to snap back and everyone's going to be fine and we're going to be stronger this is going to have enormous implications for the way that average american investors think. my point is is that we've lost so much generational wealth already, at a point in time in which many retirees, our parents, my parents, you know, would be retiring. my parents are gone, but the

baby boomers are going to have a hard time with this. >> hey, kyle, we've got to say thank you. we always appreciate your perspective. it is a longer debate and i imagine we will continue to have it thank you so much for calling in and we'll talk to you very, very soon a big hour of "squawk box" rahthe rhtft this. ow that every single time that i suit up, there is a chance that that's the last time. 300 miles an hour, thats where i feel normal. i might be crazy but i'm not stupid. having an annuity tells me that i'm protected. during turbulent times, consider protected lifetime income from an annuity as part of your retirement plan. this can help you cover your essential monthly expenses. learn more at protectedincome.org .

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breaking news. markets set to open with more losses following their worst week since the financial crisis. the senate fails to reach a deal on a trillion dollar coronavirus stimulus package u.s. virus cases shooting up over the weekend doctors pleading for more protective equipment as nearly one in three americans are being told to stay home. and going digital. the coronavirus changing the way wall street does business with the floor of the new york stock exchange closed and traders heading online cnbc's breaking news coverage of the pandemic and the markets in turmoil begin right now. and news just breaking just breaking from the fed steve liesman has it

steve. >> reporter: joe, thanks very much in a series of very aggressive and historic actions by the federal reserve that go well beyond what they did in the financial crisis, the fed first of all saying that it will purchase treasuries and mortgage-backed securities, quote, in the amounts needed call that open-ended qe. last sunday they said they would do $700 billion, now they're not putting a number on it by the way, they did a lot of that in the financial crisis they put limits on it. now, it's, quote, in the amounts needed the economy will face severe disruptions and it needs to do this that's just the beginning. in other actions the federal reserve will announce a main street lending facility. i'll come back to that in a second a $300 billion lending program $300 billion lending program backed up by the fed they've purchased and/or financed corporate bonds it will purchase or lend against

asset-backed securities and municipal bonds. places the fed largely did not go during the financial crisis they will also as part of the qe purchase commercial mortgage-backed securities now let me just go to something about this main street lending facility the least amount of detail on this, there's a quote here where it says the federal reserve expects to announce soon the establishment of a main street business lending program to support lending to eligible small and medium-sized businesses complementing efforts by the small business administration i will tell you in all of the documents that the federal reserve is putting out here, there's the least amount of detail on that my best guess is that this happens through the legislation now being talked about in the senate unclear how the fed is going to end up looking at or otherwise reviewing lending to main street, but perhaps through the banking system there are different ways it can do this. that is unclear at this moment but it would be probably the

biggest step the fed would take here in terms of lending to small business and main street a huge criticism during the financial crisis so we'll see now this morning if the new york fed, which does the purchases on behalf of the federal reserve, puts out a new schedule of purchases today, if it goes beyond what it already planned. remember, in the last hour i told you they were going to do $40 billion of mortgage backed and 75 billion of treasury that may expand or it may go much longer. >> this is amazing you know, we'll see how long the futures bounce, but they were down 480 they're now down 200 watching kashkari last night, a couple of times he said the fed has an infinite amount of money. he used the word infinite. >> it's true it's true. >> i feel like we are mm tiers now. you were reading those things. >> yes. >> i was saying it made sense

for me to do that. the munis are getting crushed. tom barrett is talking about commercial loans he's saying, we're here for all of you at this point how do we feel about this? >> well, i think we can -- how we -- we can discuss and debate, joe. i think you and i will in the months and years to come debate how we feel about it later right now what's clear to me is that the fed has the ear to the ground i don't know if you remember but last week i did a whole story on how the commercial paper facility put out was priced too inexpensive inexpensively, one of the things they did, i didn't tell you about it, lowered the price of the paper. the fed was not financing certificates of deposit. they included that the fed moved very aggressively to begin with. it didn't move in the way that i thought was perfect. they're responding to this piece by piece they're responding, tweaking what they did. expanding what they did.

they do have an infinite balance sheet. attenuated by the possibility of inflation on the back end and/or difficulty the u.s. government might have there's other ways to use the mmt. paul mccully says, hey, let the fed credit the treasury's account, punch a button, create trillions which it could do. there's a bill out there from one of your favorite congress people in minnesota, do the trillion dollar coin thing which is out there we'll have to talk about how to do this later. some of this is loans. some the fed may get back, some the fed is protected on. >> steve, i've been on the phone and actually just got an email literally as you were talking with a number of state political leaders around the country who were thinking through the implications of trying to provide bridge loans on a

state-by-state basis given the slow action of what's taking place in washington. >> yeah. >> given the fact that the fed is now saying they're going to be buying municipals, you know, on an open-ended basis, would that give state politicians the opportunity to do something like that >> it could be look, andrew, there's a lot of logistical stuff to fix here one of the things people forget about the crisis, they complained about the fed not helping main street. it's simply much easier to help wall street and to help big companies. the fed would have to somehow figure out the bureaucracy of this the way to think about this is the poem on the statue of liberty. brings your poor, hungry, tired, weak the fed is saying bring us your restructured, munis, corp rates, we are going to finance you through this the big question in this crisis, guys, has always been how do we have the money to get from here to there, there being the

reopening of the economy who will finance the economy. >> hey, steve. >> yeah, becky. >> just a point on that. it's easier to help the big banks and the big companies, but that's a way of being a conduit to get money down to main street i don't think the fed is trying to help the big guys the fed is trying to help the banks so they can help main street and make sure that money gets through these are conduits to make sure everybody gets help. >> that's an excellent point, money. the entire money market facility banks buy from the money market go to the fed, they sell it to them or finance it there the banks in this case are just a conduit. one of the things the fed wants to do is open up space on the dealer's balance sheets to finance other things out there you're right i am telling you now, becky, they're talking about lending on a different order of magnitude i think ever conceived in banking which is how they're going to create a main street lending facility

you can imagine either -- i'm thinking the best way for them to do this is to get the local banks -- i think there are 30,000 small businesses in the country. my guess is every one of those has a bank and i think the bank, their own local bank or j.p. morgan chase or bank of america can provide that oversight, do the lend, do the extend, do what needs to be done, the restructuring and then bring that paper to the fed through the banks. but it's still going to be a massive program with relatively small loans i would imagine. >> hey, steve, i've already seen headlines all over the place saying fed goes all in, but we were saying that last week, too. is this really all in or is there more and more and more that can be done if need be? >> no, they're not buying s&ps yet, are they, steve >> i think joe just -- in his funny way just answered your question that is right, they are not doing equities yet they are not doing etfs, not

doing mutual funds by the way, the bank of japan has done that. i talked to eric rosengren said everything is on the table which was echoed by kashkari, bullard, i believe echoed by the federal reserve. i think they're -- look, i don't know how to say this, but the idea being they think the economy is money good here they think that the problem is not that there's a default risk out there that's somehow endemic to the economy they think it's an exogenous shock. by the way, they may be wrong about that, but they can't not operate that way the economy is money good, we need to lend money to the economy to get it from here to there. >> that's why -- >> did you see the -- >> that's why trying to compare 30% of unemployment as a long lasting phenomenon and putting the markets there is a false --

it's an apples versus oranges comparison >> did you see what bullard said about that, joe? >> it's temporary. bullard -- becky mentioned bullard will be on tomorrow. i think he said "squawk on the street." we promo squawk -- >> no, he's on "squawk" tomorrow, right? we love "squawk on the street." >> he will join us on "squawk. >> go ahead, steve. >> bullard provided a really interesting way to think about it don't call it a recession. this is a public investment in health and in all sorts of things this is us keeping people alive. it's us being effective. this is what the result is so you have a cost which is the economic downturn, but you do have a benefit here which is people staying alive and people staying healthy. >> well, we are -- we almost turned positive. we'll see. that's the fear that we're back down 600 in a couple of -- in a half hour.

we almost turned positive though we still may, steve. it's early not quite as liquid as we'll be at 9:30, although the big board's closed, at least the -- except for online trades thank you, steve then we're going to hear from treasury second steven mnuchin going to speak with jim cramer at 8:45 a.m. eastern on "squawk box. i guess i'll get home even earlier today. for the latest on the senate's efforts to get a coronavirus relief package passed, let's bring in senator pat toomey. i was looking at what's going on in pennsylvania and there's some positive -- just before we get to some of the other things you're going to talk about pennsylvania there's some positive metrics just in terms of the coronavirus itself. are there things being done in pennsylvania different than the rest of the country? are you just lucky at this point, senator >> well, only lucky relative to

a place like new york where we have obviously a full blown disaster in new york city alone, i think. we're not nearly in that predicame predicament. i have to tell you the rate of growth in new diagnoses, new positive tests is still very, very high. we're not at all out of the woods. in fact, it's possible that we're some period of time behind. >> yes. >> other places. so we -- you know, the other thing that's happening in pennsylvania, of course, is our economy is shut down, and i mean that in a very literal sense it's hard to state this. but our governor declared -- issued an edict and this happened in other states as well as of 8:00 this morning, it is not legal for a business to be open for business except for a handful of exceptions, critical industries like health care and food and that sort of thing. so that means it's not like a

decline in our gdp we're talking about, it's going to zero. >> right. >> if all business is closed, if everyone is forbidden to going to work which is the case in my state, you don't have an economy. >> senator, the futures have turned positive as you can see in the bottom. we wish you the best down in pennsylvania, but can you comment on what the fed just -- on whether this is -- >> listen. the follow up i would make on this, i'm very glad the fed has done this. it's true the fed has an infinite balance sheet, but the fed has constraints in how it can deploy that. the fed is not allowed to lose money so that's why our legislation is so essential. what we do is we authorize a program where the treasury can capitalize vehicles that can then go out and leverage out that capital many multiples from the fed and use that to first and foremost stabilize these markets. if the corporate markets gets

the muni market functioning because they're not functioning, we envision something like that. set up broad-based lending facilities available to any corporate borrower and the point is to provide the liquidity to get through this terrible moment we all hope this is brief but if you are forbidden from opening your doors, if you cannot sell your products, you cannot stay alive and if this goes on much longer and we don't do anything because our democratic colleagues won't agree to pass a bill, then some of these companies are going to start dying and they don't just come back with a flip of the switch. >> let me ask you quickly, senator. the -- i just heard you say the democrats. i've seen -- i see the way the media portrays what happened the other night. they called it overall chaos in washington watching the democrats vote no just sort of down party lines after schumer and others were talking about the bipartisan as late as saturday, weren't they,

can you tell me exactly what happened i mean -- >> yeah. >> -- you wouldn't just assume that that's political, that they did that to score political coin. >> it's hard to come to another conclusion, joe. just look at what happened i've heard this rhetoric well, there's nothing for workers in this. nothing for workers, there's $250 billion directly for workers. we bump up unemployment benefits by $600 a week so that in many states someone who's unemployed would have 100% of their pay replaced included eligibility, self-employed. you know whose ideas those were? ron widen. you know what, good idea we'll do it. we negotiated with him these provisions they're all in the bill. then in addition to that, we said, you know what, that money might not get there very quickly so let's send direct checks, that's $1200 per person.

a married couple $2400 all you need to do is have income last year we've figured it out then for small business, this bill has the government paying the payroll for small business, literally. you get a loan as long as you keep your work force on the payroll, the loan will be forgiven, that portion that you used to pay for payroll. my goodness, nothing for workers? this is unbelievable then the big -- >> senator -- >> yeah. >> senator, there's no question that the clock is ticking and we need to get a deal clearly one of the issues that people are concerned about is the disclosure issue, which it gives the treasury remarkable discretion, but not only remarkable discretion in terms of how that money gout out the door but effectively keeps it in secret for a period of time?

can you speak to that specific issue. >> yeah, look, you know, when we were negotiating the structure of this, it would have been nice for someone to have raised this concern. here's what we did in working with our democratic colleagues until the leader came along. we said we need two categories, right? this big fund that i'm describing that the treasury would be joinedly with the fed, that's going to be open to virtually all comers, right? you'll have various categories you'll specify the terms under which the company can meet the criteria and then they get to borrow the money that's going to be disclosed that's going to be public information on that. there's another category and that's a much smaller category it's 75 billion. the big fund, the big leveraged fund is 425 billion. 75 billion is meant for companies that the situation is so distressed that they don't qualify for the large broad-based program. that is meant to be liquidity

for fundamentally solid companies. if you're in more trouble and you are really critical to the american economy or national security, we've broken that out. the legislation said 60 billion of that is for passenger airlines i don't think there's mystery about who that is. there's 8 billion, cargo airlines not a lot of mystery about that. then that leaves you with $17 billion for defense critical industries that's the language that we discussed with our colleagues because we don't know exactly a month from now a company that might be absolutely critical to our national security that might not be able to qualify for the broad-based funding because of the credit worthiness might be too much in doubt. yeah, there's a little bit of flexibility there. you know, if somebody has an idea about how that gets disclosed and the timing of disclosure, that's easy to work out. it would have been nice to have heard this during the discussions as we were putting this together. that's the concern. >> senator, we appreciate that

thank you. thanks a lot we want to get back to the markets quickly. we were down 500 when we went to steve liesman at the top of the hour we're now almost up 500. so 1,000 point swing based on the actions taken by the fed you also saw the ten-year drop precipitously in yield and it had been at about .85% i think it's at .698% at this point. becky, we're up 500. let's check back with me at like 8:23 who knows. >> right >> it feels better than down 900 last night. >> it does you watched that yield on the 10-year. that's what i've been watching more closely we were up above .8 of a percent for the ten-year when things started out so this is a pretty precipitous move in the meantime, last week was the worst week ever for the real estate market down 23%

thefrom monday to friday then you have the governor, andrew cuomo, telling businesses who are nonessential they have to shutter their doors, residents have to stay home to make sure we are fighting off the coronavirus. you wonder what that means for the real estate market joining us to talk more about that is richard lefrak he is chairman and ceo of the lefrak organization. >> nice talking to you becky, thanks for having me on. >> we are watching some pretty unpolice dented times play out in the streets of new york city where you're watching time square being empty at this point. what does it mean for your business to see businesses shuttered? >> first of all, the most interesting thing is that many of my businesses are not shuttered because i own thousands of apartment units in new york and those units still require building service employees to come and clean and maintain the building and provide services for the

tenants. so that requires us to make sure that our employees are safe, have proper equipment and can make sure the buildings will function these buildings are getting more intense use as all the tenants are staying home all the time. >> all the tenants staying home all the time is not necessarily great news for what it's going to mean when mortgage payments are due or when rent payments are due at the end of the month. what happens are you going to be giving people an extension of paying things back? are you going to be for giving things for your commercial or residential areas? >> we as an industry decided that people that are stressed by the -- financially stressed by the current situation, that we would forbear evictions or demands for rent until the -- you know, for the next 90 days at least until this situation

resolves of course there are very severe implications of this happening over long times. we also have obligations to pay light bills, taxes, paying our building services employees, paying insurance most landlords do not have the wherewithal to hang on for more than a couple months of no income, no revenue so we're hoping that the people who can pay will pay and the people that can't pay, we'll give some forbearance for the time being >> what are you hoping to see either from the state or federal government in return >> well, i don't know if there are specific requests at this point in the bailout or financing, but i'm hopeful that they understand that the banks are very interrelated to the

commercial real estate business and if the commercial real estate business is not functioning, eventually that will fall into the banks and create more problems and the financial institutions and think think they're all aware of that. our industry is well represented in washington. hopefully everybody will understand that if there's no revenue in the real estate business, it eventually will tumble down into the banking institutions as well. >> richard, how long are you in a position to be able to do some of these things? you said most people in the real estate industry could only do this for two or three months or so what's your own situation? >> well, i mean, we make -- we're pretty liquid. you know, we have a mix of commercial and residential properties so i think that we're -- you know, we're well-positioned to hang on for a while. of course there are other people in the business that have a very heavy retail base or own a lot

of hotels and those things have just shut off and that's going to be a much more present, in your face situation more quickly. i know we're shutting -- we own a bunch we're going to be shutting in the next couple of days just no customers there. >> richard, we want to thank you for your time. go ahead andrew >> richard, real quick i just want to know, what do you make of the idea of a rent or mortgage holiday that's one of the things people talk about and whether you could ultimately be supported longer term later if you did that for two months, what it would do for the country. >> well, we did suggest that we would -- you know, that some of the major landlords would be supportive of those in need having a rent holiday for a

couple of months >> but, you know, you're in a better position. do you think all landlords could actually get through that period >> no. i'm saying there's a couple of large landlords that have the resources that can handle that for a couple of months the mom and pop owners or the small owners, they're not going to be able to survive. the margins in the real estate business are not that great that they can survive for a month or two. so i would say i wouldn't be supportive of general don't pay the rent and everybody don't pay your mortgage. that's kind of a difficult problem for the banking indus y industry. >> thanks. we haven't heard from you in a while. good to see you. >> nice talking to you. coming up, steven mnuchin

talks with jim cramer talking about unprecedented actions to support the economy. the futures basically gained -- reversed a 500 point loss and are up 500 we will recap that move right after the break. stay with us as we head to the break, take a look at oil prices wti coming off the worst week in nearly 30 years. we'll be right back. quadrupled their money by 2012? and even now, many experts predict the next gold rush is just beginning. so don't wait another day. physical coins are easy to buy and sell, and one of the best ways to protect your life savings from the next financial meltdown. - [narrator] today, us money reserve announces the immediate release of us government-issued one tenth ounce gold american eagle coins for the incredible price of only $159 each. these gold american eagles are minted at the united states mint. and, right now, they are being sold at cost

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welcome back to "squawk box. the fed announcing a big expansion of its lending programs steve liesman and mike santoli are following that news and a very big market reaction get over to you first, steve >> reporter: yeah, this is one of the first times i think, andrew, that the federal reserve has announced something and the market has actually gone up. i think other programs by the fed have been an indication of the idea that there's really bad news out there now it looks like the federal reserve is in a place where it's essentially addressing a lot of the issues out there they talked about a main street lending facility a $300 billion program here in order to lent to corporates and purchase corporate bonds municipals somebody said to becky earlier

in the half hour here, the fed is all in with the possibility of doing even more, but really an aggressive program, an historic program for the first time really going where it had not gone in the financial crisis of course, maybe the biggest news here, they're going to do as much as needed when it comes to purchasing treasuries and purchasing mortgage-backed securities really a program here that is infin ninite in terms of the amt it will buy to set the economy and set markets right because they've been under severe stress and strain over the past several weeks. >> stevokay, steve. mike is he still there? what's your forecast. >> i'm here. >> are we going to hang on -- give me your best guess. does this add to the gains or do we come back to reality that the virus is still here regardless of the fed >> reporter: i think best guess for a day is that we should be able to hang on to some gains because, by the way, the 4% loss

on friday was a weird slouch into the weekend you're getting some of that back there's no real margin in trying to predict the data. but i think the key point is what the stock market's been contending with is not the massive collapse in the market but the disarray and the sense that loss of control was the big outsized risk that equity markets couldn't really get a grags grasp on the fed, absorbing a lot of this doesn't have a home. a lot of redemptions have been orphaning. if you look at the corporate bond, high grade corporate bond etfs up, it was up modestly before that. that was the big fear which was that while we put the economy on hold, a lot of stuff is going to break along the way. this reduces the extreme risk that more stuff will break along the way. >> all right, mike thanks let's go a massive funding package to

combat the impact of the coronavirus failed a key procedural vote last night a democrat said the bill did too much to bail out companies and not enough to help workers joining us now house minority leader kevin mccarthy. leader mccarthy, i want you -- just work with me. pretend you're a registered independent right now, pretend you're a registered independent. i don't think you can prove to me that the democrats -- would you really say this is all about them playing politics when they're delaying a bill for the people that they constantly profess that they're -- they're the ones that they want to help. they constantly talk about helping people you're saying that they voted gents this just on a political level or -- see, i'm saying that they must have some real concerns giving them the benefit of the doubt. what about you >> think about what this vote is it's a vote just to move forward. this isn't a vote on the bill.

you've got 30 more hours this is an ability to communicate, work through whatever -- >> what do you attribute it to seriously then they're playing politics at a time when the coronavirus is ravaging the economy -- first of all, ravaging our people and the economy? >> think about how this bill was created. >> yeah. >> it was bottom up, bipartisan, bicameral. democrat senate members along with republican members gave their ideas, crafted it by different sections of what committees you worked on and built it bottom up then yesterday i sat in a meeting of four leaders. the two democrat leaders were upset that this wasn't crafted by the leadership. now take this of what happened just a couple weeks ago inside the house. the speaker wrote a bill, it had problems we sat and worked it out and late into the night when we brought that bill to the floor it did not have the text of the bill exactly as what we agreed to you know what i did?

i moved the bill forward and voted for it along with the majority of all the republicans on a handshake that we would correct that on monday because we thought it was too important for the nation, that we should show that we can work together, that we will get beyond partisan ship and we will get productive. yesterday what i watched was not a moment in time to sit back this is critical people are going to be laid off today based on what the democrats are doing. this is a moment in time what you have inside there, i just watched your last interview. if you're worried about people paying their rent, you know what this provides people who are laid off they actually get a check from the government you know what else it does for small businesses, it gives them the liquidity to stay up and running even though they don't have money coming in and in there it will be a grant if you keep people employed and you keep paying your rent. to those larger companies out there, airlines, others, hotels that are about to collapse that employ thousands of people, we would provide them the resources that they could borrow the

money, have the liquidity, and hopefully we do this correctly, get through these 90 days and we're up and having a hockey stick recovery that is what we're trying to achieve here when i sat in that meeting, chuck shu mur said there's only two small things that are a difference to where we need to go they should have voted f for closure and fixed it i moved ahead on a handshake that we'll fix it in the future for the good of this country i think this is a moment of time that we put people before politics and this is not a place to play politics >> leader, i agree we can't play politics right now >> yes. >> we have to find solutions and that's all we can do at this point. if you can, try to make the case, if you can, to the viewers who are on the other side of this who do have questions about bailing out shareholders of airlines and hotel companies and

the like and why that matters, if you believe it does and also this issue, we talked to pat toomey about it earlier, and i know it's an issue on the democratic side which is disclosure and the ability of the traeeasury to distribute th money. >> remember the time when we're doing this in real time. what we did is we learned from the financial crisis that we're not providing people with money, just giving it to you. what we're providing is a guarantee and a backstop that you can borrow the money at a lower interest rate. we're doing it but small business is treated different. we're saying you have to keep your employees on, you have to keep paying your rent. it helps in the financial markets to stay afloat, that we don't create a run on the banks. if you keep the employees there, that's a grant we'll help you get the liquid y liquidity. you can't do a buy back. the ceos can't get a big boost in their paycheck either

people are agreeing to that. you know why the money is going forward? so they can keep their employees, so they're not laid off. the other thing this bill does for unemployment insurance we don't wait for people to wait seven days on the federal end, we add another $600 so they'll pay their rent going forward the worst case scenario is somebody gets laid off and they have to go to unemployment insurance. wouldn't it be smart as a nation and if you are thinking of the individual, not of the ceo, wouldn't it be smart to keep that employee hired? it let's give them the liquidity. keep that person on. there is other incentives in there, if you keep them on maybe the federal government could pick up a small share of that. it's better that a person stays working than a person gets laid off. that's what we're trying to achieve. right now in every single board room across america, may it be the kitchen table of a small business, they're deciding whether to lay somebody off. while chuck schumer says he

wants the leaders to decide, people are going to be laid off. >> lieder, i don't disagree with you. i'm talking about the discretion issue that the treasury has over the money that's distributed and the disclosure issues and specifically also the shareholder issue, which is to say the airlines are asking not just for loans but grants and whether the grants are ultimately necessary or if the whole goal is just to keep people employed, whether the government effectively can nationalize the airlines or do something similar that they did with general motors, put it through bankruptcy, keep the airlines operating but the shareholders don't benefit i don't know what the right answer is, but i'm asking you to make the case based on the support you have for this bill >> right now we've got a big chunk of money that provides for loans. what the airlines is looking at, can it be a mix of both. there's a tax incentive. what we could do is pick up a share of the employee's payment if the company is paying for it. these are all different ideas.

if you voted foreclosur cloesur you have 30 more hours wouldn't it be better to move forward and i was sitting in the room with secretary mnuchin and keeping the process moving we're being very productive. remember how this was created. democrat senators, republican senators, in the house they brought ideas to they sat as task forces by the section, it was bottom up, bicameral, bipartisan. at this moment in time it's the leader saying, no more, you can't go forward we are pea not that far apart. >> i hear you. leader, i hear what you're saying speak to the disclosure issue. the american people will not have full disclosure about where their tax dollars are going. explain why you believe that is a good thing. >> i don't believe that's a good

thing. what i do believe, vote for closure as we do this. we believe in transparency we're working on getting it crafted correctly. give us the next 30 hours. work with us as we've been working before and get it right. to stop the whole train is wrong. keep it moving so we can have that vote because every day that you delay, more people are laid off. we both believe in transparency. we both believe that this money cannot be used to go into some ceo's pocket we believe it cannot be used for a buy back of stock. the only reason we're giving liquidity is to keep an employee on the job every day we delay that, somebody makes a decision to lay somebody else off. your decision right now is not about transparency because we all agree on transparency. the decision is whether you want to get the credit or not i want to keep somebody employed i want to keep america working i want to keep us healthy. the other resources that go here go to hospitals, go to the need of the states to be able to

provide. it's not the idea i'm going to bail out states pension that didn't deal with coronavirus those are the issues brought up by the other side. that is wrong. let's focus on the problem at hand and let's solve it. >> i want to solve it, too my final question, leader, for me, and i know joe and becky have questions for you >> sure. >> are you planning on trying to revoke the provision that gives the treasury the discretion it was going to have ultimately in this current bill and the disclosure requirement, which is to say during the six-month period that every bailout or -- would be disclosed effectively to the public in real time >> look, we can find common ground on this i sat in the room. i listened to secretary mnuchin said let's see where we can come together on this we want to be able to give flexibility that people can act but we also want transparency and i believe both sides want that why would you vote no on clochur now? you have another vote to vote on

the bill when you vote on the bill you're going to see the language. keep the process working so we all can see the language and have the vote. that is what's critical at this time that is why the decision by chuck schumer will harm people that is not the decision that really those democrats are saying they had a bipartisan, bicameral bottom up. they thought they were working on something that could move forward. it really came to that i watched the other leaders upset that we didn't write this just by the leadership well, that's the worst way to write a bill let the committees of expertise write it and let them continue to work forward. what they needed to do because of the senate rules, because you need 60 and every day we go some other senator gets sick, it makes it even more difficult what you really need to is let the process work they stopped to the point of where they were and they could keep crafting for the next 30 hours. that is normally where you find the small differences where you find the solutions look, i was willing on a

handshake to vote for something that did not have the language that i agreed to on the idea that on monday we would correct it because i thought it was too important to the american public, too important to the small business, too important that other people would have been laid off. i want them to keep their jobs government is telling them to shut down and every day another state goes further i do not think it's a moment in time that i care about somebody's personal ambition than more about the country itself and that is where we are. a vote of no on clochur is exactly saying that. >> we'll see how long this is politically palatable to delay this. >> it's not. >> i can't imagine it's very long what's next? what's the actual process? when will it go forward? >> well, it has to go forward today. the idea that the speaker of the house saying that the house would craft a bill, it's only the speaker and i that are here for the house of representatives. we cannot craft a bill you're going to bring the committees back? you're going to start working?

every moment you delay is more harm to this economy and to our health remember what this vote is it's a simple clochur vote all it says is we're going to start the process of moving forward with the bill. how is the bill written? it wasn't mitch mcconnell writing the bill or the leadership it was bottom up, bipartisan, bicameral. i wish i had that opportunity in the house when they wrote their bill but you know what, i think i would put this country before my own personal ambitions i wish the leadership in the senate would do the same on the democratic side. >> becky >> just some comments coming out from treasury secretary mnuchin right now saying that all small business leaders are going to have the necessarily quit at this he's urging them not to let employees go leader mccarthy, when he says liquidity, does that mean he'll get loans or does that mean they will be forgiven

>> for small business, 500 employees or fewer, if you keep your employees on, it will be forgiven so this is what is being held up we know how many thousands of small businesses out there, i used to be one of them you know the critical decision you're trying to make because you have no revenue coming in. you just interviewed people with real estate, are they going to pay their rent and others. this would give them the liquidity to pay their employees and they're making their house payment and rent payment and they can buy their groceries together it keeps the economy together as we go through the virus crisis what happens is we could have a hockey stick coming out from this every day that's delayed, people have to make the hard decisions. they're scared wondering about how much capital they have. if you are a small business you get treated different. it could be a grant. if you are a larger business, we'll give you a guarantee we'll give you good terms and the idea that you can keep your

employees. the one thing i would tell to the american public right now, don't make that decision on laying somebody off. we will. someone will come to them and you can move forward so you can see that this bill was crafted in bipartisanship this is where we're going to end up i don't know what anybody else is going to tell you this is where we'll end up with what the bill looks like today with very small changes because i believe at the end of the day we will come together. it's unfortunate that we had to have this delay. >> very good leader mccarthy, thanks. >> thank you. >> we'll be watching thank you. all right. when we come back, senators failing to reach a deal on a trillion dollar coronavirus stimulus package we're going to be talking to treasury secretary steven mnuchin. ats mi up in a few minutes with jim cramer. "squawk box" will be right back.

>> we're hearing some unprecedented action from the federal reserve. dow will open up 245 jim cramer joins us and he has the man of the moment. >> mr. secretary, are you with us >> i am, jim i want to say, i'm the second

most special guest >> all right let's get with it. how far apart were you >> it's very important as you can see. very important actions supporting the asset-backed markets, supporting the corporate bond market, primary and secondary. we're using some of the funds we have, but we need congress to approve additional funds today so we can move forward and support american workers and the american economy >> let's be sure about this when i listen to that agenda. if i were senator schumer i would say corporate bonds, private this and that. how about workers, 500 and under, small business. what are you going to do >> we have enormous bipartisan support on most of this bill -- i would say all of this bill in particular the small businesses, let me be very clear, jim, we're providing

immediate loans to small businesses working with the sba, we'll make sure banks can immediately lend money to companies that are 500 and less that will cover two weeks of payroll and some overhead as long as those companies hire back their workers or keep their workers. at the end of that period, we will forgive those loans entirely so we want to make sure small businesses, this makes up about 50% of the private economy, keeps workers employed when the president is open up to ready this economy again, and we kill this virus, workers are in place and it's no fault of their, they're getting paid. >> some industries have more workers than others. 51 million is retail what do we do? >> jim, a lot of that retail is small businesses a lot of small stores in these malls that are closed. all those small businesses will be able to get these loans fast.

and larger businesses will continue to pay workers, and those large businesses that need liquidity will be able to access the facilities we're setting up with the federal reserve >> if you get agreement today, can people get their money tomorrow so they don't lay off people >> i don't know about tomorrow, jim, but i would say they shouldn't lay people off and i would say that within the next week, we will have a program up and running that small businesses can go into banks easily in a fast track basis and get that cash flow i can tell you, i already have the irs working on direct deposits for hard working americans. and i expect that that money will be out in the next two to three weeks in peoples checking accounts or savings accounts it's a massive amount -- >> what kind of numbers, is there a cutoff if i make 120,000, do i get

anything if i make 40,000 do i get anything >> it's a little over $3,000 for a family of four, after a phaseout and things like that, but this is a massive amount of liquidity, you can think of this as bridge loans to american workers as we set up the other programs so the president is fully determined we're using all our tools to pump massive amounts of liquidity, working with the federal reserve to support the u.s. economy through unprecedented situations >> you know savings mean everything to american workers can they access their money in 401(k), ira right now without penalties? >> we have in the legislation a bunch of changes that can help people with 401(k)s and we're moving certain rules when people are forced to take money out and other things that has huge bipartisan support and those types of things in the

bill >> why is there such brinkmanship given the fact you are so focused on the workers, i cannot believe that speaker pelosi is against this, i have a hard time believing that senator schumer is against it. you mentioned workers six more times than you mentioned the corporations >> jim, i'm on my way up to the senate now to meet with mitch mcconnell to review where we are with his team and then meet with senator schumer and what i can tell you is that we need to get this thing passed today. we'll put aside partisan politics mitch has done a great job on bringing together everybody. we were there all day yesterday. and my message is this needs to get passed today >> mr. secretary, how do we create demand? i keep hearing supply for workers. what gets people in the stores, in the restaurants if we're not allowed to >> jim, the president is getting great advice from all the medical professionals.

he is determined that we will kill this virus. what i can tell you is that as soon as the president determines that we can reopen this economy, i think you will see massive pent-up demand as long as we keep workers in place so businesses can reopen when they get the green light, with with this type of liquidity, i think you'll see a big pick up. let me comment, you know, this bill is about $2 trillion at this point on top of that, it gives us 5$50 billion that we can leverage with the federal reserve for over another $4 trillion. that's $6 trillion in the economy and there's already another 500 billion in the economy as a result of delaying tax day. this is a massive amount of liquidity to support american workers and businesses >> mr. secretary hello? >> yes, jim. >> you need congressional approval for this, i think

america would be happy -- >> hold on >> what? >> i'm sorry jim, can you hear me >> you need congressional approval can we do a 5$500 billion 50-yer the american people consider this a war bond, they would do it, do it patriotically, we're ready for it, can you get it >> we have some technology issues that we're working on to be able to issue 50 and 100-year bonds. i want to make sure we don't take our eye off the major issue here now we will be issuing a lot of 30-years we'll be issuing 20 years. we want to focus putting money into the economy right now fortunately with low interest rates we'll be doing lots of long-term financing to make sure we lock this in at low costs to the american public. >> the word i know from the fed is no issues with liquidity. it's not -- it's not a credit

crisis can you assure us there will be plenty of liquidity when this market opens at 8:56 oursavings won't dissipate or be destroyed >> we're working with the fed in an unprecedented fashion i forget the number of -- i think we're up to kind of ten different through-holds, i signed five letters last night, two of which were modifying three programs we do have a limited amount of money we're using before congress passes this bill. the announcements i made with the fed this morning for about 300 billion and as soon as congress gives us the authority, we'll be increasing the facilities substantially and rolling out new facilities this is an urgent situation for congress to pass this, but we are ready and we are working

with the fed to provide unprecedented liquidity to support american businesses and american workers >> i know the president wants this deal done can he help get it done and get it done this morning >> i hope we can get it done this morning i've been speaking with the president around-the-clock we got off the phone at 12:30 last night i'll be calling him shortly. >> it sounds to me this can get done what is the one thing the democrats are saying you're not giving them and they won't give in on? >> jim, i think we're going to get there. i'm not going to get into the negotiating issues on the phone, i'm determined -- i know mitch mcconnell is determined. we need to get this thing done today. >> go get it done. i know you have to get it done >> thanks, jim >> totally appreciate it back to the gang before we turn it over. >> good. thanks, jim. well, we are still at this point i think up 400 points or so.

we have the monetary side. maybe now there's hope for the fiscal side. we'll see. mnuchin sounded hopeful. you going to stay out there? will we be on remotes? is that it >> i think that's the plan for now. >> that's the current plan >> go ahead, becky what he said is important the idea that small businesses is out there. jim is right, the urgency for a small business owner is they had to make these decisions last week, the week before. they're living on the edge with these situations so washington, they may be back and forth and fighting back and forth, but this cannot come quickly enough, particularly to small business owners that watched their businesses being forced to shutter. you can't keep paying money out if you're getting zero money in. >> yep >> andrew, is your slush fund -- >> the clock is ticking.

i'm with you i'm with becky and everybody in washington to get this deal done >> i was worried about the slush fund and if they can arrive at an understanding they can do whatever they want eventually, right? let's hope >> i hope they appreciate the self v severity of the situation and how quickly they need to get it done >> we'll do it all again tomorrow, god willing. we'll be back tomorrow cnbc's special coverage continues now with "squawk on the street." ♪ >> welcome to "squawk on the street," i'm david faber along with jim cramer. we are not live from the new york stock exchange. nobody is live from the new york stock exchange, but we are live. jim is back at headquarters. i'm keeping with our social distancing policy at a different location carl has a well deserved day off. let's get to the story this morning. the story is -- everything is going on i