♪ good morning i am jon fortt with morgan brennan and kelly evans all coming to you live from separate

locations as we put social distancing into effect here at cnbc as a precaution we're going to start "squawk alley" this morning with bob pisani with an update on today's markets. bob? >> and jon, the important thing here is i want to show you the futures because a lot of confusion overnight here we were futures down overnight, then we hada big rally at 8:00 a.m. eastern time as the federal reserve announced new programs and yet the open was a real disappointment and it shows you that liquidity is fairly thin preopen. a lot of people were surprised we opened down so much but we're off of the lows right now. sects here, banks have had a tough time throughout the morning, most down 4, 5 or 6%. energy stocks also had a tough morning. everything else, 2% let's say, industrials, technology also down about 2%. semiconductors started strong but have been weak for a while now. boeing, one of the few stocks on the upside, only three or four

up today, an upgrade goldman sachs. home depot on the upside, caterpillar down chevron having an ugly day united technologies down 9%. the raytheon deal is still out there. elsewhere, the fed announcement, one of the little footnotes there, going to be buying investment-grade corporate bonds etfs this is a game changer etf business is really squawking about this in a big way. now japan has been doing this for a while, but not here in the united states. we've never bought etfs, not buying equity etfs but buying corporate bond etfs that's a very big deal. lqd, i talked about many times in the past, the largest corporate bond etf out there and you can see moving to the upside all these corporate bond etfs are moving to the upside be careful about this. there are underlying bonds that

trade, you can't keep buying etfs you have to have bids for the bonds underneath that. interesting to see how the fed will deal with that liquidity imbalance that may be throughout right now. as we said before, the nyse floor has been -- is down today, not down, temporarily closed i spoke to representatives over at the new york stock exchange that described the open, it was very smooth and orderly and that's the way it looked from my perch sitting here and i talked to market makers on the floor and are doing business electronically, the opening was, indeed, very smooth. we're fortunate we didn't have to deal with any particular issues around circuit breakers this morning the fact that market opened smoothly certainly a very good sign i will keep monitoring that and let you know if there are any problems a smooth, clean electronic open for the first time at the new york stock exchange. back to you. >> we'll take those good signs where we can get them.

bob pisani, thank you. let's bring in scott devette from stifel out with his best ideas note talk a little tech i mean you kind of have to hold your nose, i suppose, if you're looking to buy things, scott, but you have a number of names in here that you think perhaps even just in the medium term could be good bets including amazon, alibaba, netflix, peloton, alphabet, uber, lyft, what was the lens you used to pick the names >> thanks, jon i believe humans are resilient and have survived many setbacks in the past and we will survive and thrive as well there's unprecedented uncertainty about our way of life and the future of business. we really don't know the depth or duration of the current crisis so now more than ever i think it can be useful to look at the world in years rather than days, weeks or months it's during times like this that consumer habit change to better options at an accelerate pace,

when the economy recovers those habits don't revert back this is a significant, long-term positive for consumer technology companies. we're focused on companies that are long-term beneficiaries in this change of behavior given we don't know depth and duration, we have to be conscious of balance sheet risks. the names that float to the top, you named a few in internet for safety are amazon, alphabet and alibaba. amazon's very clean in terms of fundamentals and beneficiary of the current trends and future trends with a strong balance sheet, $50 billion in cash, $23 billion in long-term debt. alphabet will have demand issues given the cyclicality of advising but a strong balance sheet, $120 billion in cash and $5 billion in long-term debt alibaba $50 billion in cash and no long-term debt. i would highlight netflix a beneficiary of the changes habits but doesn't have the same balance sheet strength as the first three. >> now, i want to ask you about what i don't see on this list,

and i would refer to this as perhaps the chicken breast and toilet paper of technology and i'm thinking pcs, intel, things like that. this is technology that perhaps people has seen as rote, unsexy in the past but during this coronavirus outbreak and working from home, pcs, which had been viewed as being dead from a growth perspective just a couple years ago, being seen as essential. you don't have those on your list there is a reason? do you think the companies are in a tricky position or do you think the essential nature of those is temporary. >> the only real reason, it's not part of my coverage area that would come from a different stifel analyst there are trends more broadly across technology, including enterprise tech and pcs and i think it could lead to investment ideas as well our focus is on consumer tech

and specifically internet. >> so scott, i'm curious about peloton on this list i get on the one hand you could see more people starting to order some of these workout bikes and the like and doing more exercises at home and becoming subscribers and that could be something that's sticky on the other hand, so many of the users, so many of those subscribers are on payment plans with so much focus on lending and on credit and on just potential economic hardship for americans out there, how much of a risk is that >> certainly peloton is one of the trickier one withes on the list i do think that long term with what's happening right now in terms of the change in habit from exercising outside the home to in the home is accelerated by what's happening as you mentioned, morgan, there are offsets to that, particularly in the short term there's a potential negative demand impact from a very high asp item, even if it is

financed on top of that in the case of peloton, you have the fact that they're not delivering treadmills at the moment and leaving the bikes at your doorstep to bring inside so that they don't put their employees at risk. there are, you know, short-term headwinds for peloton, but i do believe that when we do get to the other side of this, that change in the consumer's mind and that preference, you know, towards exercising more in the home is something that will be ever more powerful >> scott, before we let you go, just a quick question for you. everyone is concerned or curious about whether there's backups in their amazon deliveries. are you hearing or seeing anything from your channel checks about essentials versus nonessential items and delays, if we should expect that to get worse? >> there's certainly been preferences in inbound shipments for essentials and that's had impacts throughout amazon's system, particularly around

third-party merchants that use fulfillment by amazon. also anecdotal evidence on the outbound side in terms of delivery guarantees. i think consumers have to be patient given the circumstances and it's very possible that with what's happening in the supply chain, you know, that that does get worse before it gets better. having said that, amazon's one of the few companies within our coverage list that which the near term impact on their business actually could be net positive relative to everything else, given the significant shift in purchasing habits to those essentials >> all right scott devit watching the internet space specifically, we appreciate you being with us >> thank you >> it's another thing to watch right now too. air freight rates seem to be moving, we're starting to get commentary they're increasing

right now and what that is going to mean in terms of the shipping costs. another market mover today oil lower again today. another volatile session, down more than 60% for the year citi's global head of commodity research ed morse joins us now for more thanks for being with us this morning. first question for you at this time where you see this one-two punch on both the demand and supply side, how much lower can crude go what are you forecasting >> i think it can go much lower. we don't think the one-two punch is over, particularly on the demand side where, you know, the impact on transportation fuels in europe and the u.s. is just beginning. so we think we're going to see sub-20 through the second quarters unless there's a producer response and we don't see that in the cards. >> think about it here in the u.s., eight states and more potentially being added to the list on an hourly bases right now representing more than 27%

of u.s. gasoline consumption right now with all these shelter in place orders taking effect. are gasoline futures at record lows right now, what does this mean in terms of crude oil demand at the refineries and production into some of those refined products >> sure. well, it means a significant amount it means refineries have doubled the fact -- doubled the reasons they thought they would have to reduce their intake of crude oil. one is where are you going to put it if inventories are growing to the degree we think they are the cost of storage like freight you mentioned a few minutes ago are going to go up the other one is that a lot of refineries are in financially precarious positions on the independent refining side and they're going to need credit from their suppliers without that credit and the suppliers are not in a position to provide that credit, they'll

have to -- another factor to reduce from. we think runs are going to be reduced sort of a major of order of magnitude, 7 or 8 million barrels a day lower than we thought they would be when we looked at the refining turnaround season. >> ed, based on u.s. federal action and from the congressional side lack thereof so far, is there any impact you expect on the oil market >> not directly from it because, you know, whatever impact there would be on the consumer side is really made up from the -- we're in the 50 cent per gallon gasoline market and that's kind of a very different market from what we've been experiencing there are incentives to consume, just no ability to consume you know, much of what we're waiting on the congressional side is to see whether there's going to be not just incentives for companies, but incentives for individuals and to get their

consumption up. >> as we see oil and gas producers beginning to cut cap x, bring rigs off line, how quickly can wells be shut in and once the worst of the pandemic is over and the economy starts to come back, on a global basis, how quickly can it be brought back on-line >> sure. we're seeing something being flushed out that has never yet been flushed out and that is there are a lot of companies that were brought into existence that probably should never have been brought into existence. it's hard to make a judgment call on exactly how much of the u.s. 13 million barrels a day of oil production is tied to that kind of company, but i would say it's a good million at least barrels of production should never have come into the market. on the other hand, we're seeing significant cutbacks by the healthiest of companies and they're doing this faster on both the elimination of fracking crews and on the elimination of

rigs that are coming off the market at a very rapid rate. we actually think that you would -- with all the talk about the texas railroad commission rationing production, that the market is going to see it faster than we otherwise would have thought. we would not be surprised to see 400 or 500,000 barrel drop a day in any event not over a year but over a short period of time. at today's prices we expect there to be a drop that would be worse than in 2016 a year from now, probably a loss of over 2 million barrels a day, maybe 2.5 million that would balance the market and the question is how fast does it return i think we should not underestimate the u.s. shale plate, cycle, responsive to prices, we get prices back above 45 and into the $50 range which we thing is reasonable at some point in 2021 and cash is going to be generated and bert

companies will be putting it back in the market we'll see growth again, probably never again at the rate of 1.5 million to 2 million a year, but at a reasonably priced market for the 45 to 55 we should see u.s. production growing steadily at the half a million a barrel day level. >> let me ask you, you said you think crude oil will trade below $20 barrel for the second quarter. what does that mean for the gasoline price we don't have the demand response usually when it collapses or we get the seasonal pick-up going into the summer we might have neither one of those things. how cheap are we talking about per gallon >> i hesitate to say anything other than this is unprecedented. i would not have forecasted where gasoline is being priced it's a distressed market and distressed markets do funny things among the funny things that distressed markets can do is price a commodity at below zero where you have to pay people to take it away.

>> you think that's a real possibility? we spoke about this last week, ed, as more and more people in the market are saying it's possible that crude oil could go negative are you one of them? >> we are one of them. we published a little more than a week ago. >> wow >> i don't have any follow-up to that go ahead, morgan >> yeah. well, ed, finally we're talking about crude and the collapse we've seen in prices in the energy complex but also seen these selloffs in other industrial commodities as well whether it's copper or iron ore or pa latium which has been volatile in recent weeks as well, how much is tied to crude and potential for selling given how steep the drop is and how quickly, and how much is indicative of where we're at more broadly within the global economy. >> it's the combination of the two and i would not underestimate the degree to which the energy cost drop has affected other commodities it's kind of an ironic aspect of

what's happening in that so much of the commodity world is energy intensive when energy costs go down their cost structure goes down and their ability to respond to an increase in demand goes up. i would say what's happening, no matter which of the metals you mentioned, whether copper or po latium, we're going to see an ability to respond that's going to be significant for their profitability of the companies in those businesses with the recovery in the economy. >> all right ed morse, thank you for joining us today >> pleasure as always. take care. >> fascinating coming up in just under an hour an exclusive interview with david tepper the founder of appaloosa management be sure not to miss that let's get over to rick santelli now. good morning, rick. >> good morning, kelly i would like to welcome a special guest former ecb

president jean-claude on the phone. thank you for joining me today let's get right into it. whatever it takes, takes on a different meaning when it isn't a bailout, this is to combat a pandemic, we shut off the main circuitry for most businesses, do you think that central banks and governments of the world are doing enough, and b, does whatever it take includes all the different fringe areas that we know were overly speculative like some of the junk bonds and the triple bs? >> it's a pleasure to be with you, rick. i have to say that we are experiencing the worst crisis since world war ii, without any i would say other qualification. we never had to cope with such a many-dimension situation, sudden stop of production, and the

combination of a health problem of supply problem and of demand problem simultaneously as you said, the authorities in such circumstances have to do what is commensurate to the immense challenge we have and it seems to me that unlimited effort is the whole of the game. i understand it is the case in the united states with the most recent decision taken by the fed. i have to say that the limited supply of liquidity is the whole of the ecb since a long period of time. it has been renewed very powerfully you have to say and yes, indeed, the level of the central banks it seems to me that the fantastic effort they are making to permit liquidity to be everywhere in the economy, to permit all markets to remain

liquid is there and all credit and financing available for the economy as a whole on the government side, it seems to me when we have $2 trillion in the u.s., you have in europe approximately the same amount of i would say powerful efforts made both in terms of fiscal appropriation and in terms of guarantees of all kind we are the same level of order and manageny today of $2 trillion, you name it, and i don't know whether it will suffice because we don't know, we are living at a level of uncertainty. of course everything is done to avoid a depression i think that it is a correct qualification of what has been in the pipe on both sides of the atlantic, not to speak of other countries in the world >> now, mr. trichet, when it

comes to dollar funding, this has been a huge issue and many of us have been talking about it before any crisis, emerging markets wanted to put their best face forward, many analysts throughout the globe pushed that sector saying that their numbers had more room to travel, where many other markets like the u.s. had already been overly priced we see the dollar funding issue and it really is a problem, especially when you look at commodity prices and the disinflationary spiral many are working on preventing. my question to you is simple, are central banks doing enough do we need to see a dollar intervention at this point because a strong dollar just hurts and once again creates a negative spiral we are already trapped inside of. >> yes you're absolutely right. the question of the dollar funding is a very, very important one and particularly at the level of the emerging world and the economies that are

developing all that being said, it seems to me that we -- i expect the central banks discussing at the level of the global economic meeting in bassle to see what could be done to enlarge the network in order for the dollar funding to be as available as possible it's important, of course, that we all realize that we are in the same boat and there is an absolute necessity of international cooperation. by the way, i was deploerg myself at the g-20 at the beginning, i understand the g-20 is mobilizing again and at the moment we are speaking there is a teleconference between the ministers of finance of the g-20 again, back to the dollar funding, it's very, very important issue and i expect

that appropriate cooperation and in the last time, the fed had been cooperating in the present situation again, they have reactivated the swap agreement which permits the dollar to be present in major markets. the problem is that it has to be present at the global level. >> excellent mr. trichet, thank you for your thoughts and we'll continue to have you back as we move through different phases of the coronavirus and its impact on the global economy and the health of many in the world. thank you for your time. jon fortt, back to you. >> pleasure to be with you, rick. >> rick santelli, thank you. as we head to break, want to note the major averages here at session lows the dow down more than 650 points, off about 3.5% s&p off nearly 3.5%. the nasdaq fairing slightly better as new york announces

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welcome back our next guest is working with the white house and department of energy to curb the spread of the coronavirus launching the

covid-19 high performance computing consortium allowing scientists, medical researchers and government agencies to harness ibm's super computing prowess to stop the outbreak director of research dario gill joins us now good morning >> good morning. >> it's good to see you. dario, tell me what the use of super computing will allow here? i think short term, certainly people are concerned about the delivery of medical supplies medium term, there's work going on to actually work on the science of stopping this virus where will super computing be most effectively applied >> that's right. we got to marshall all the resources that we have across the country to be able to tackle the pandemic across multiple horizons and on the scientific front, what we need to do is accelerate the process of discovery to find new therapies and ultimately a vaccine

the role of super computing to allow us to be able to perform the virtual experiments that would have taken us months to do in traditional computers, let alone years if we were doing them experimentally and compress them to matters of days or hours. to just give you an example of, you know,work done at the oak ridge national laboratory with scientists collaborating with the university of tennessee, it took 8,000 molecular xoupdss they needed to be able to screen to see which ones would bind to the protein spike that is present in the virus and affects the cells and they were able to down select the 8,000 to 77 small molecules most promising to deactivate the virus. that's an example of the that acceleration. >> to make sure people put this in the right perspective, good news is good news, but we want to be sure to give people an accurate sense of hope

when will we see at the earliest the results of super computing's ability to speed up some of these discoveries? >> you're absolutely right this needs to be seen in the context of the core signs that then enables the development of therapies and vaccines as we know that's a process that takes time because it needs to be thoroughly tested but the important thing is we all need to do our part and the high performance computing community and the people engaged in this modeling we need to come together that is why this effort that we've done in partnership with the white house and the department of energy is vital because what we're doing is aggregating the super computing capacity in the united states, talking now, aggregated over 330 computations, 330 thousand trillion calculations per second and match it to the best scientists so that we can do our part to accelerate that process

of discovery >> dario, you lead ibm's research a lot of people might forget the majority of ibm's employees are outside the united states. i imagine you've been in contact with other research institutions around the world what kind of work is going on in cooperation with other global research instienutions and how much will other countries and other regions also being hit by this pandemic, how much will they benefit from the work you're doing >> yeah. so this consortium where we're coming together is something that can be available for all. any scientist that wants to be able to contribute ideas and proposals to then match it to the super computing capacity is welcome to do so we would love to be able to also expand the international dimension of the consortium by aggregating also capacity around the world and really being able to engage with all that are pursuing modeling associated with the consequence and the

pandemic as well as the molecular simulation that i mentioned that has to do with therapies and vaccine. this is really the most fundamentals aspect of this is us joining forces across the federal sector, academia and industry and to make it international and accelerate the process the science. we have a great sense of urgency we need to conduct this work >> so dario, to dig into this a little bit more, i realize this is a consortium you're working with, government laboratories here, also academic institutions, ibm does have a number of commercial clients as well, health care, private sector health care companies using your super computing and quantum computing technologies as well. are they going to be part of this are is that something separate and what does that activity look like >> yeah. so from the ibm side in addition to help coordinate this effort we're also, of course, making charts available from some of

our super computing systems and absolutely correct like we're going to partner with clients and academic institutions we're collaborating with historically and be able to then say hey, let's prioritize this work what are the resources and talent and science you can bring to the table as part of this effort so yes, it's about really mobilizing respective communities and we look at ibm as an institution we're mobilizing 350,000 ibmers, our clients and partners against the pandemic >> dario, i was watching the movie "contagion" over the weekend which is educational and the research they did on what would happen if a global pandemic broke out one of the key moments is when a doctor, a researcher in private industry, helps the government come up with solutions i wonder what you think of private industry's role, technology's role at this time in helping to find a solution here for the world

>> we need to play our part. without a doubt. that's why it's so important that we take our best minds and best scientists and best technology and we approach it in a spirit of collaboration and cooperation, bringing communities together that's why we appreciate it so much being able to work with the white house office of technology policy with michael, the cto of the united states, and paul, the department of energy, and so many other leaders when we come together but we have a role private industry has extraordinary talent and scientists and engineers and designers and people that can come together and this is a moment to, you know, we're proud of our companies, but it's a moment to look beyond competition and come together to do what it takes >> dario gill, ibm director of research, i think i can safely say we are all the entire world pulling for the super computers right now. thanks for being with us >> thank you all right. we're going to take a quick

commercial break and getting a check on the dow and s&p near session lows down about 3.8% for the dow. both of those averages at their lowest lelsie te01evs ncla 26. stay with us 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. a partner who makes sure every step is clear, we're committed to making college more affordable., that's why we're keeping our tuition the same through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu.

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hi, everybody. welcome back markets near session lows, dow down 760 points this morning to sue herera for the latest on the coronavirus. >> thank you very much good morning, everyone over 1.5 billion people worldwide have been told to stay home to slow the spread of the coronavirus. that's according to the associated press that is roughly one-fifth of the world's population here in the u.s. massachusetts joins the growing list of states that have issued stay at home orders governor baker is shutting down all nonessential businesses. moments ago michigan's governor issued a stay at home order for her saint. milwaukee's newspaper is reporting that wisconsin's governor is preparing stay at home orders.

former presidential candidate amy klobuchar tweeted her husband has the coronavirus. not being at his side is one of the worst things about this disease. she says that she is praying for him as she continues her work in the senate and as always, for more on the coronavirus coverage, head to our website, cnbc. jon, back to you >> thank you, sue. note again, the major averages are near session lows. the dow off more than 700 points that is 3%, nearly 4%. the s&p off about the same ount nasdaq off about 2.5%. we'll take break and be right back a golf course is designed to be difficult. to challenge your thinking and test your execution. but great minds are driven to seek out the complex. they see what others don't, from an angle others won't take. they learn that embracing those challenges

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welcome back as the selling accelerates here in the u.s. for major averages european markets just closing a few minutes ago. seema moody has the breakdown of the action overseas. >> news from the fed providing temporary relief for european investors. we saw losses cut in half but then ending at session lows for the day. working off an ugly session in asia where india posted its worst day on record. back in europe, germany, italy, uk, off about 3% on the day as germany readies a stimulus fiscal bill getting word that angela merkel tested negative for covid-19 she had self-quarantined after her doctor tested positive several watching shares of air

bus falling after canceling its planned dividend payments and securing 15 billion euros in new credit it follows layoffs at ge as they ground several airlines. a number of luxury retailers stepped up their efforts to ramp up production of protective gheer. kerring is providing masks to mask and lvmh supplying france to tackle the shortages hospitals are facing taking a step back, european stocks lost 35% since the highs in mid february in line with the s&p. jon, sending it back to you. >> seema, thank you. we continue to watch the markets which are trading near just about at session lows. the s&p well off the low levels of earlier in the ession, now off 4.5% we'll take a break an be right back show me reality...tv.

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we sunleashing the promisegas of clean energy. at emerson, when issues become inspiration, creating a better world isn't just a result, it's a responsibility. emerson. consider it solved. welcome back the sell-off is deepening as we move throughout the session. the dow down more than 900 points, a 4.8% decline see the selling pressure here has picked up in the last hour or so. chevron is down more than 10% and, in fact, the flip to negative in crude may be one of the reasons we've taken on a worse tone gasoline futures not looking pretty they were down nearly 20% so

below 50 cents for the first time in a couple decades we spoke with citi's ed morse about whether crude could go negative and he didn't rule it out. a lot of red for that sector today. movie theaters hurting, seeking relief because of the coronavirus slowdown and many states are restricting screenings or banning them entirely julia boorstin is here with a special guest, john fitten, president and ceo of national association of theater owners. julia? >> thanks so much, kelly john, thank you so much for joining us today last week the national association of theater owners called on congress for a bailout. what exactly are you asking for? >> so, first, to make it clear, all movie theaters in the united states are shut down now last week we closed them all because it's the right thing to do to prevent the spread of the virus. now what we need congress to do is to step in and to help industries like ours that are

completely shut down we have fixed costs ongoing and not a single dime coming in in revenues what we're looking for congress to do is to provide loan guarantees so our members have liquidity to survive the next few months so when they get through they can bring the employees back, reinstate the jobs and people will come flocking out of their homes to see the cinema again >> now your member companies have about 150,000 employees can you tell us what kind of commitment those employees your theater chains would make if they did get this bailout in terms of keeping them on the payroll? >> so there are three things stepping back in this bill that are really important one is direct help to furloughed workers. so the federal government is proposing to make quick payments to anybody with income under $75,000 and that's the vast majority of our employees. the government is also looking to extend unemployment compensation so the first thing

we're seeking in this package is help for our workers first and foremost second, the bill has a bunch of great things in it that help health care providers to stem the virus. that's important for the country and the world. on a micro level it's important for businesses like ours the longer the virus lasts, the longer we have to stay shut down, so we're very, very grateful for the work congress is doing to combat the virus in this bill. and the third thing that's fundamentally important about this bill it helps to sustain businesses long enough through the crisis so we can be back up and running when it's over some people have called the loan guarantees and the other provisions a slush fund or bailout. that's not what this is. we aren't asking for a bailout we're asking for liquidity we're asking for lines of credit guaranteed by the government that can keep us afloat long enough that we can get through the crisis, bring back our workers and bring back people to cinemas this summer.

have you received confirmation that the industry will be included in the bailout bill we have not seen theaters or cinemas mentioned in the latest draft we've read through. >> we've been going through drafts all night secretary mnuchin and leader schumer are negotiating as we speak and hope there will be a deal announced today, voted on in terms of a vote later today in the senate. fingers crossed for the sake of the country and all the individuals out there who are unemployed right now the way the bill is structured is specific industries aren't carved out or in with the exception of the airline industry which has a specific provision all other distressed industries are lumped together one the loan guarantee provision about $425 billion, one is the small business loans, very important for our smaller operators and in both of those draft sections, industries are

not specified. you simply have to be qualified as a distressed industry the secretary of treasury would make that determination and we believe we'll be close to the top of the list. i mean if you think about what's out there, yes, the airlines are hurting, they're still flying some yes, the restaurants are hurting, we're not making a single dime because we shut down every single theater in the country in the interest of the country's health >> john, i could argue that movie theaters as a business were in a tough positionalread before this especially if you take out marvel and star wars. how is this going to affect small chains compared to big chains and is there any opportunity here when we do come back for a business model change that could benefit the theater industry long term >> first, i challenge your

assumption last year in the united states we grossed about 15 billion dollar a little more from ticket sales and 4 from food and beverage that's the eighth consecutive year we have been over a billion dollars. the movie cinema business in this country and around the world is very, very strong despite what some pundits might try to say we went from 15 billion a year to zero last week. this past weekend was the first weekend in the hundred year history of the cinema business when we collected zero dollars from ticket sales. this is all about the short term this is about combatting this virus. this is about helping our employees until we get to tend and having a viable business when we come out at the end. we believe when the virus is over, people will have been in their homes cooped up, not able to get out with their family and friends and they will come flocking back to cinesi cinemas way to celebrate the end of this crisis

we believe our movie theater partners have postponed movies for next year so we have great product for our fans to see when this crisis is over. >> yeah, i'm sure pent up demand will be a big piece of the puzzle once thing kos come backo normal i'm curious about the content production you have material being halted, release dated pushed back and you have amazon launching prim video cinema to offer some of these current theater releases for people to stream at home what will that piece of the equation look like once things do get up and running again? >> the movie pipeline schedule is really important question i'm glad you asked it. what we're seeing now or the movies that were released in cinemas price to the shutdown are going to the home quickly. we completely understand that. we're going to be shut for two or three months. there's no way to keep those

cinema runs going. for the studios to monotize the movies, absolutely take those to the home give consumers something to watch during the crisis. for those movies scheduled for release in april and may, what we have asked and been in heavy conversations is postponing the release of those movies and rescheduling them later. that's exactly what they are doing. some have picked rescheduled dates. the production has been interrupted on many movies that aren't finished yet. if we take the movies that were scheduled for april and may and

put them in release calendar toward tend of the year and early next year, they will fill the gaps of the movies that had to halt production long enough to get to buyers to get back up and running. this is a very come kplplicated puzzle we're pleads our studio partners are working closely with us on who to change the schedule, delay these pictures and have really great movies ready for s consumers when they are ready to come flocking out of the their homes. >> it is a complicated puzzle. i want to ask you about the piece that has the potential to change the way the movie business works the fact there's a three-month window when between movies are in theaters and released at home a number of major studios have been releasing their films at home at the very same time whether it's universal or sony or warner brothers the question is once the cat's out of the bag, will it be impossible to force the studios to abide by a three-month window

to protect the movie theater window and those ticket sales going forward? >> it's really good question it's a very complicated question just do be clear, most of the windows that are being shortened are for movies already in our theaters, already playing and which we were selling tickets for. we understand why those movies don't need a big long window because there are no theaters open to play them. accelerating the release of those movies to the home makes absolutely perfect sense and no one views that as a change in the business models. they view it as a way for the studios to monotize their movies already in theaters and to give americans something to watch during this crisis it's the movie's scheduled for april and may that matter and need to be postponed and only one of those movies that gone -- aannounced going straight to the home and that's universal on trolls we don't see any other studio doing that with their mayor h--

major titles literally it's only one movie from one studio where the signal has been a change in the business model all the the rest of the movies will come back up this fall and into next year with the same kind of business model we had before the crisis. >> all right fascinating conversation thank you both for joining us. taking a look at another industry, more furloughs for hotel employees and we have that story. hill on the and hyatt are saying they are undergoing furloughs following a sharp decline in hotel occupancy. it does follow a similar decision taken by marriott last week et doesn't make economic sense to keep the hotels open when

occupancy is running so low. kelly, back to you >> thank you very much we're going to take a quick commercial break with the market sitting near session lows. the dow down almost 900 points don't do anywhere. scott wapner on the other side of this. we'll see you for that i consulted with your grandmother's doctor. we can do the screening at her house. hi. this is the man that's going to check your eyes grandma. cognizant ai solutions are helping healthcare companies advance diagnostics and prevent blindness in patients with diabetes. everything looks good. you have beautiful eyes. ♪

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good afternoon, everybody. our breaking news coverage of the markets continues right now. welcome to halftime report where your money is front and center as it always is. a big day already with historic action by the federal reserve. we're also waiting on congress to vote on its massive rescue and stimulus plan some time today. we start the show with a special guest. david tepper joins us by phone. thank you for being with us today. >> sure, scott >> i want to start by getting your reaction to what the fed did first and foremost today they turned on the liquidity