>> michael, we are -- we are out of time for the show thank you for your time. we'll have you back very soon. >> you got it. have a great day >> thanks. final check on the markets we're back up almost as much as the futures can go up 965 on the dow. tracking the etfs, they're up. we have to go. see you both tomorrow probably from where you're seeing us right now. "squawk on the street" is next ♪ welcome to "squawk on the street." i'm david faber along with jim cramer who remains back at hq this morning carl has the morning off should be back as soon as tomorrow we are all focused on the potential stimulus package that will come out of congress. the markets opening a half hour from now the new york stock exchange remains closed, that is the floor of the new york stock exchange trading will move along more or

less normally. let's start there, jim, in terms of the market overall. i have a lot of insight this morning to share on the credit markets where i tend to be focused of late. like to come to you. when you see a rally, the likes of which we may at the open this morning, what are you thinking >> what i think about when i see this, the market got oversold, people last night went home thinking there's no possibility of any sort of deal. without a deal all you have is the fed making sure there's liquidity but nothing in the hands of the people. if you don't get money in the hands of people, people will look at the landscape and say it's really just falling apart something has to get done. now there's an expectation that something will get done. if we don't get something done today with the senate, you'll give up this whole rally you're banking on the politics getting together for something, otherwise this rally will be

comical and you will wish you never bought in. >> we'll be able to offer hopefully people a good deal of insight when speaker pelosi joins us in about 30 minutes from now, jim. that's the key question. you raised the key point overall, how do you get the money in the hands of people who are currently being laid off or have been laid off over the last week it remains unclear if we get the legislation how it can act quickly enough to sort of hold back the tide of personal bankruptcies, of people who frankly simply don't know where to turn. >> yeah. i talked and have a team that is going to about 50 ceos in two days the landscape will change drastically you'll see dramatic layoffs, not just the one we've seen today. this is in real time there's another scheme, which we know is more important in the scheme of things

the health issue what are we going to do? health versus money, health versus the financial health. health comes first so what you end up doing is if you decide that listen we'll put money in the hands of people, but we then put people in jeopardy in terms of ages, now we're hearing, listen, you can't just do post-65, post-70 if we're going to let people get sick and come back to work, that's the big failure i think it's a false dichotomy south korea, test, test, test, they got it done china, test, test, test, lockdown, they got it done slovakia got it together, test, test, test italy where some people think milan's peaked because we had two days straight. madrid not peaked. this whole knowing that we know who peaked or who has not is a false one. we know south korea did it with testing, chinese did it with lockdown there's ways to do it so it's not either/or.

>> but we have not done it with testing is your point. >> we don't have ventilators either >> we have not done it with the equipment needed and with the testing. which sets up a scenario under which we're not going to be in a position to reopen effectively i had a conversation with somebody who runs a large law firm based in normal city, as so many of them are the point this person made to me is if you reopen things, i'm not coming back. every time somebody tests positive in my office i have to spend the next i don't know how long figuring out who they spoke to, who i need to quaerantine, who i don't. it's a logistical nightmare. their thought was better off keeping us away until the tide has turned >> i don't disagree with that. i had a zoom birthday party last night and a drink for my buddy about 15 people attending.

when you start hearing around the table what do we hear? so and so's wife has got it. here's the thermometer somebody took a trip and stayed at the four seasons in colorado, and there was someone who was a waiter who took care of them, nine people have covid it's around you now. something happened in the last ten days where everybody knows somebody close in their circle you may feel like businesses should be okay but at the same time you're trying to find a thermometer and a ventilator, we have ford teaming with ge. but this is -- we need what happened with gm when fdr called them and said we suspended the line, everything will be made for munitions, as opposed to henry ford who balked, and then ford built a b22 this public partner partnership, if this happened 90 days, we'd

be like yeah instead it happened 90 minutes ago. we're like no. >> i think that's a fair point, jim. here we find ourselves with the prospect certainly of getting legislation out of the congress today. that at least will be aimed at providing a huge stimulus that is needed. we had the fed yesterday with extraordinarymeasures in terms of aiding certain markets. we have the president saying i don't know when but soon we want to get things back moving again. >> right >> the markets are taking it all at this point as a positive. i hear a very mixed message from you in terms of whether you're a believer >> look. i think it's been a total sucker's game to buy this rally. i have two of my favorite technicians, i talk about them because they tend to be in times of incredible turmoil, big money listens to the technicians they both see it's oversold and there could be a rally of some

size again, you get a rally of some size and it turns out at the end of the day secretary mnuchin, mitch mcconnell and speaker of the house nancy pelosi have not meeting of the minds, then you will give up this rally. not only that but you could lose another 5,000 points not that much difficulty given the fact that you and i both know that employment hangs in the balance. we come in thursday and we see unemployment number that's big, then we see the real layoffs not the little layoffs we see now and suspension of buybacks and dividends, multiple layoffs from the top 100 companies, you'll say that's it we had an opportunity and we failed >> yeah. the layoffs are happening now. >> right i spoke to somebody who runs a business that is focused on hospitality, 50,000 employees laid off the numbers are starting to become staggering.

we can expect they will. we've all talked about, of course, some of the prognostications on the parts of the investment banks and analysts in terms of what they'll see. before we get to kevin johnson, the ceo of starbucks who will join us, to the credit markets that also continues to be a concern. companies, i'm told, when they have the opportunity are turning to their banks and saying what can you do for us? endless requests for credit is the way one person who runs one of these divisions told me and the banks are there at this point. it's interesting it's a point worth stressing, this is not your 2008. this is not a financial crisis banks remain well capitalized and in position to provide credit revolvers are being pulled down all over the place it was 75 billion in revolvers pulled down as of friday that number is already going up higher it's happening the banks are fulfilling those

requests without issue at this point i'm told but we do need to continue to keep an eye on investment grade, 35 billion in assets left. that's about 2% of assets under management that was last week we still see companies accessing the markets. thermofisher, general dynamics, gm said we'll pull down 15 billion in our revolvers but those who can access the capital markets are doing so as for cnbs, where carl icahn has a huge short position, that's gotten really ugly. >> we are hearing about bankruptcies and understanding as important as the equity market is, everything you talked about puts the banks on the red hot griddle, unless we get guarantees of the banks, which people hate because of what happened in 2008, they're houses of cards, too. i know no one wants to hear that given the fact that the fed will

backstop them. that's too many credit lines at once >> i don't know. >> you don't think >> i'm not sure about that the 99% of the credit lines pulled down during the financial crisis, the banks made good on them i'm not sure the fed has been on these banks for so long. it's just a different world than it was 11 years ago. i have a little more confidence perhaps. >> you're right. i'm looking at the stocks. the stocks tell me when goldman sachs trades $80, $75, discount the tangible book. >> there's two different stories. there's the ability of the banks to actually continue to provide liquidity and be fine in terms of their balance sheet, and then there's the business there's not going to be any m&a to speak of. >> no, no. you're right i'm just -- the stocks are giving me a false signal they're reflecting other concerns, thank you. david, we have a real business person coming in we havejoining us on the cnbc

news line -- or whatever -- it's the president and ceo of starbucks international change, kevin johnson. always good to hear from you >> jim, david, good morning. >> you sent out a note you basically -- let me not bury the lead here. this is an optimistic story. you sent a note out saying we'll pay you, show up or not. that was a note that went up last week. who showed up? >> well, our starbucks partners showed up, jim you know, let me share a little bit of the story you know, we have been dealing with covid-19 for nine weeks in china. throughout that entire nine-week journey we have sort of learned the playbook and we've learned the curve in terms of when you shut down what happens to consumer behavior. as you go through this, what happens when you start opening stores we're on the uptick in china

but late last week, you know, i realized that we in the united states are getting ready to go into a difficult two to three-week period. and i'm a believer that human experience is all about overcoming adversity through resilience and so last friday we decided to communicate to all of our starbucks partners, we call everyone who works at starbucks a partner, communicate to them and the united states and canada that for the next 30 days we would pay them independent of whether their store was closed or if they were uncomfortable coming to work we would pay them. we also announced that we would shift to a drive-thru delivery model where basically we would close the cafe part of our stores and just serve customers through drive through and mobile order for delivery when we announced that friday we weren't sure how many of our starbucks partners would feel

comfortable enough coming to work the next morning. the next morning they showed up. they showed up before dawn they opened all of our drive-thrus, they recruited other partners to help where a store might have been short staffed. this is the story of starbucks partners, they are the heartbeat of our company and i'm so proud of them and i'm proud of the decisions we took to ensure that they have some economic certainty independent of whether stores are closed, open, whether or not they're comfortable coming to work for the next 30 days they have economic certainty they will get paid by starbucks. that's because they are the heartbeat of our company >> okay. let's do it right now. how about a challenge. make a challenge to the rest -- the rest of the business community in this country. a 30-day pledge of no layoffs, 30-day pledge of no layoffs. 30-day pledge of paying the

workers. no matter what because i think you're an inspiration. i don't think anyone stepped forward from the business community like you and said, you know what, this is what we've done will you start the pledge right now and we can demand it of other ceos because people are sick of ceos. they think they make too much money. they think the rank and file have gotten screwed endlessly. start the pledge and we'll get others to do it. >> well, here's what i believe, jim. i believe it's the responsibility of every business leader to care for the employees during this time of uncertainty, shared sacrifice and common cause. now certainly every business is in a unique situation. at starbucks, we have a strong balance sheet, we have the understanding of the model that we learned in china, so, you know, we believe we've got the ability to endure through this, and at the same time take care of our partners. that's what we've always done. that's what we'll continue to do so, you know, i step back and

say, you know, not every decision is a financial one. this is a time to prioritize people over profit and, you know, i'll look to -- we have great business leaders in this country. i know those that can will step up and take care of people certainly every industry, every business is in a different situation. i will applaud every business that's able to prioritize their people at this time of uncertainty and by doing that i think the country will show resilience and we will get through this >> thank you i think it's very important that people realize that when you did pledge to give the workers, the partners, the money, the partners showed. that's why others must take this pledge that's why i'll hold everybody's feet to the fire because of what you just said. i had joe on last week you said not only is the rest of china open for business, you're opening a store in wuhan

here's the reaction i got. kevin johnson is not telling the truth. it's inconceivable that's happening in china or what's happened is they cherry picked places you could open. the idea you may not be telling the truth after i've told you for 20 years is inconceivable for me can you go over again what the story is with china so i can call out anybody who says you're a liar and take them to the cleaners >> nine weeks ago when covid-19 really began unfolding in china, certainly a challenging period, i think it was this opportunity between government, health officials, and businesses that things shut down, schools shut down, people went into shelter in place so certainly, you know, early in that period we closed throughout china roughly 80% of our stores. it varied city by city, certainly the epicenter of this was wuhan and then after 45, 60

days stores began to open. today we are at 95% of our stores open. last week i commented that we began opening stores in hubei province and in wuhan. we're going slow to make sure this is happening, but the recovery sun folding in china. that gives us confidence that we know how to manage through this. what we're seeing in the united states is government leaders and partnership with health officials, with government and citizens all taking action together we know that if we do that together we can get through this >> kevin, it's david to what extent has your experience in china informed your ability to at least try to predict how things will go in the u.s., specific to how you're running the company in terms of

capital allocation and finances but overall obviously in terms of revenues as well in your projections. >> yeah, david great question what we've done is throughout our experience in china is captured all of the store protocols that we use to provide a safe and healthy environment for partners and customers we applied that not only in the united states, but in in 81 oth markets around the world second is we tracked week by week what happens with same-store comparable, what happens with total revenue as the uptick began in china, we began opening stores, we built a model that basically said, okay, if this were a two -- a two-quarter recovery process to get customer traffic and get revenues back to the run rate it was pre covid, we plotted that

out and we are tracking that we're tracking at or slightly above that model we built. now we're mapping exactly what's happening in the u.s. week by week it's like week three in the u.s. we look back at week three in china and we sort of know what to expect. it's following a similar pattern. you know, it may be that in the united states it's a little bit longer you know, a week or two longer period to see the recovery, it may be the same recovery curve, right now it's tracking in a similar way to china, which is helping us plan not only our financials, but just -- we have a strong balance sheet that's not the concern the concern is not that. the concern is prioritizing the health and well-being our partners, customers in the stores, prioritizing with health officials and leaders to mitigate this virus and it's showing up in our communities. that's what our starbucks partners did over the weekend in

the united states. they showed up to work in service of their communities by providing those communities a food option through our starbucks drive-thrus. the economic model in china, we tracked that and mapping that to what we see in the u.s >> kevin, let's talk about the -- the first principle of your three principles. ensuring the health and well-being of our partners and customers. there's a debate going on in washington, it seems to be a debate between, let's say -- among secretary mnuchin, senator mcconnell and speaker pelosi and what seems to be hanging in the balance is -- as far as i'm concerned is that the financial health of the country -- there's also another debate about the actual health of the country you're someone doing something for the workers. i think that being first for the workers is probably the most important in terms of the 51 million people in retail how are you -- are you confident that washington will deliver

you're delivering on your end. what happens if washington fails to deliver >> jim, there's a lot of scenarios you can sort of game theory through at the end of the day i believe there's good intentions all the way around you know, the only way that we succeed is by succeeding together that means governments have to do their part. health officials doing their part, businesses doing their part and citizens doing our part if we do that together, we can get through this it's first and foremost a health crisis but by dealing with the health crisis, we figure out how we stabilize and provide economic certainty to employees, starbucks partners by doing that, then we get back on the recovery path i will summarize what i wrote over the weekend, this is a time for resilience you know, i believe that there's good intention all the way around

government leaders have good intention, trying to do the right thing and i believe they will health officials have good intentions and they're doing exactly the right thing in their communication, guidance and what they're doing to put all the infrastructure and resources in place to do this i believe business leader also prioritize people over profit. let's navigate this together as citizens, we have to play a role if that means shelter in place, that means i'm working from my home office here today i have all the equipment to do that and, yeah, i may go out and visit my partners in one of the starbucks drive throughs just to thank them and recognize them and ak ncknowledge them for what they're doing. >> last point, business leaders, people over profit, once again reiterate the challenge to america. do you -- do you dare them and

pledge them, okay, to not lay off people over the next 30 days because people before profit >> well, here's what i can pledge i can pledge at starbucks, we're not laying people off. we'll take care of our partners. we'll get through this together. the other thing i can pledge, i'm here to help any business leader struggling with a decision and wants some guidance and wants to understand what we're doing. i'm here to share. i believe that our business leaders that run these companies are good people, they have good intention i believe they'll do the right thing. >> all right there you go i think people -- that's what capitalism should be about i think there's others who have lost their way and think that allied britain is the way to go. thank you, kevin johnson david? >> thank you for bringing kevin to us. thanks to kevin as well. starbucks shares do look to be higher when we open about six minutes from now

as, of course, does the broader market with the dow, s&p and nasdaq at least pointing to significant up opens something we have not seen for a bit of time. we'll be right back on "squawk on the street" with that market open and a lot more. which of your devices are protected by daily security updates? daily security updates... daily? i don't know. the only thing... i'm struggling with this. some providers you have to manually download updates to each device. comcast business securityedge updates every 10 minutes to help keep your connected devices protected against new ransomware, malware and phishing threats. every 10 minutes feels pretty good. get secure, reliable internet and voice for an amazing price. call today. comcast business. beyond fast.

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welcome back to "squawk on the street" i'm david faber along with jim cramer. we'll get an opening bell about four minutes from now. before we do that, i want to get to steve liesman, he has some news regarding the g7. >> david, extraordinary times, extraordinary statements the g7 with a statement where members pledged to do whatever is necessary to support the economy and financial markets. they are all saying they're committed to liquidity support as well as be financial or fiscal expansionary policies and they're saying they're willing to give or ready to give additional funds to the imf and world bank this statement came out -- another statement came out a couple weeks ago followed up by

central bank rate cuts, now this is the stage, it was the finance ministers who met. now we're at the stage where we're waiting for and expecting fiscal policy responses. that's the g7 statement. back to you. >> steve, thank you. that language, jim, reminiscent of by any means necessary. something we talked about from draghi sometime back what do you make of it >> also initially from malcolm x if we want to get historical what that says is we'll do what's necessary on our end, but it's not enough. they can't create demand they can't hire. it's great that the fed can backstop, so you get 5$500 billion in the hands of treasury secretary mnuchin. that can be levered to 4 trillion again, without -- if you don't get rid of the rancor, if you don't unite, what happens is i think we see our cede our roles as a great power to another

nation, which is unforgivable. it's not what this president wants. i think what we get with speaker pelosi will be incredibly important when we speak to her in a few minutes >> you mentioned, it's funny, the 450 billion that would be part of the stimulus bill that would be levered to the fed which could be as much as 4$4.5 trillion that's an important component of this, isn't it snnkts t >> the most important component. when you look at it, if you want to get america moving again, you got to make that pledge and then they have to be able to make good and then if we get something that involves testing, testing, testing, we get a milan model where it's peaked or a south korea model, a model of democracy where you have enough tests and then enough ventilators, it's not a common cold, you need these ventilators, then we can put people to work you say what age i think the tradeoff here is if

you want to get america moving, you have to quarantine the elderly and let the younger people go unfettered >> yeah. i hear the opening bell, of course, ringing for the new york stock exchange empty floor. trading will be normal the nasdaq beginning its opening day as we started here it's funny for obvious reasons we have not talked a great deal about individual stocks, many of which will open far higher though are still down dramatically when you look at the likes of a disney, a name you and i have not mentioned in a bit what is it at here 36% down this year market cap is below that once again of netflix actually at the open it's higher does that attract you at all or does the concern about parks that are closed in various parts of the world including here in the u.s., concern about advertising revenue, concern about espn viewership, given no

spo sports going on outweigh a stock that was under 91 bucks before today started? >> i think disney is a particular situation and a positive one they were able to raise capital. they went to the markets for the bond yield that's an iconic company what i worry about is who shall live and who shall die southwest air iconic is carnival cruise iconic? disney we know is. sometimes your brand name and management is your word. i think people just said, you know what? we'll take disney with a hiatus the next bit of news you might here out of disney is that shanghai reopens especially after we heard from kevin johnson at starbucks tl there's a lot of companies where i say they're marginal and don't matter now, of course, to you and i they matter, there's a lot of workers there. 85% of the country is small business, but i think you picked a franchise i would have said and would tell you if i had my

"mad money" hat on, it's a stock you buy. disney will be around. i'm not a buy of carnival cruise, you may think we need them, but we don't need the shoeld ulder shareholders i don't want to bail out mickey or a bailout of warren buffett, that's what enrages democrats is the rich got richer in 2009. speaker pelosi is saying we will not let warren buffett make a killing. it's interesting you mention that we have not heard from him at all. >> no. >> in times of financial dislocation, often we would turn to mr. buffett and expect to hear from him in some way. or via action, see him putting some of that huge cash position to work. there's a number of his

businesses as you point out are under pressure as well do you think it's odd that we have not heard from mr. buffett in some fashion? >> i think it's ill-advised that he hasn't come out the last thing he talked about was similar to his october 2008 piece, where he said, listen, i'm not a buyer necessarily now, but i just want to buy america then he was early -- he was ultimately able to claim he bought throughout. if it's a great time, this is the time to step forward, whether it's the incredible piece of paper he got from oxi for 8% or all the airlines criticizing an icon is not a great strategy, but i think it would be reassuring to the public which says i liked it much higher, i like it now it's not his job to do that, he doesn't have to do that. i wish he would from the point of view he's the great moral authority he could strike a

balance between both sides everybody would have to bend to it it's a great time for him to come out i'm sure he's looking and there's two people i want to hear from. one we can hear from, warren buffett. the other is jamie dimon i pressed and pressed -- >> you beat me to it, jim. i was going to ask you about that mr. dimon recovering from serious heart operation. >> yeah. >> and his voice is missed i heard that from any number of people when it comes to the financial community and somebody we listen to, always talks straight about the challenges that are there there's no doubt, jamie dimon's voice would typically be part of the dialogue and it's missing. >> yeah. when i pressed, i realized that i may be the most sincere man in america because i'm asking for hope and a lifeline. brian moynihan is saying some things positive bank of america. when you see jamie dimon say he

could come out and be like the original jpmorgan. if i press him once again, i know i'm part of the bad contingent, not the good contingent we talk about what needs to happen there's a -- there's something i think you and i both know that is worrisome how do you reopen america when it's taking a long time to get test results how do you reopen america when we have 2 million test kits from thermofisher but they're not in action how do we open it when there's not enough ventilators or icus are we courting a medical disaster what would dr. fauci say right now if we said we're open for business aren't we supposed to be bending the curve, flattening the curve? >> not overwhelming the hospital system >> my daughter is in madrid, a sub optimal place to be right now. when you leave, there's a policeman escorting you to the grocery store and welcomes you back i find that's not the situation we necessarily want in our

country. let's get to the heart of the matter and get a deal done maybe we can get a deal done right here joining us now is house speaker nancy pelosi always great to see you or hear you. >> good morning, jim thank you for the opportunity to have a conversation at this serious time appreciate all the comments i've heard on your show this morning about the seriousness of it and the urgency to get something done >> will we, madam speaker? can we get something done today? i know you as a person, as a practical individual i know that secretary mnuchin is a practical individual i believe senator mcconnell can help, is there any chance that by the end of the day, even though i know we have bills, can we come together under nonpartisanship because there's about 150 million people right now watching and listening to you wanting to know if they'll have a job on friday

>> i'm glad you have such a large audience i think there is opportunity -- real optimism that we could get something done in the next few hours. the senate bill -- the senate democrats have done a great job of taking the bill from a place that was trickle down for workers, it was about corporate america, we're about the workers. this is where the economy thrives, where people have confidence in having an income, having a paycheck, and then willing to spend in a consumer economy, we believe this is not only good for the workers, the right thing for the country, but also good for the economy. so the question is who has the leverage when they put out their bill, it was corporate america -- with all due respect, corporate america is the creator of jobs, but nonetheless, unless we were looking out for the workers that we were never going to have a

solution if there was money given to large entities that they would not have buybacks, bonuses, dividends, ceo pay, that kind of thing, but putting that aside, even that the workers rights would be respected within that use of that money. we've made big progress in that regard in terms of the oversight of the slush fund, the 5$500 billion, i'm happy that it appears the senate is taking the house language of oversight, which was -- we had the language in common that we would have an inspector general strictly to oversight -- have oversight over that money, "a." and "b," we would have a congressional panel appointed by us to provide constraint but nonetheless to have oversight over that, similar to what we

had done in the past that was major -- should we sale overarching concern. >> right i have a pledge i'm looking at from secretary mnuchin saying that we have agreement on that, which is really important. i know that you -- go ahead. >> that's a big change there's some other things that are of concern, but i appreciate you're saying test, test, test we produced two bills already in a very strong bipartisan way first one giving the money for research for vaccines, for therapies, this or that. and the next one, something i didn't like to do, but to give immunity for liability to the mass producers producers -- mas producers. it's not something i like to do, but weighing the equities it was something we needed to do. that's in the second bill. that's why that was important to get that out among other things.

it was going to unleash the masks. testing, testing, testing, you can't say it enough. but you have to have the right tests. in terms of some of the other things in the bill that had improved, state and local, we wanted a strong infusion of resources for state and local for state and local governments because they're taking a big bite of this apple we have some concerns still about the president not fully embracing the defense production act, that would go so far into getting more of what we need out there. and, again, there's some issues that i don't think are deal breakers, but are of concern to my members we want osha language for better protection for our workers family medical leave is a big issue for us to be expanded. to give you some of the particular issues, but

overarchingly we're getting to a good place, if they stay there the problem is they move i'm optimistic, chuck schumer and the house democrats used their leverage to a great extent to make this a much more worker-oriented initiative >> well, speaker pelosi, one thing i like, you and i have known each other for a bit, we talk to each other about policy but also about business. i want to give you a george bailey look at things, sometimes a fictional character tells more about fact than anything else. talk about "it's a wonderful life." when i look in my crystal ball of what would happen without george bailey, in this case without intervention of government, here's what the world will look like there will be a few companies, walmart, amazon, target, costco and home depot then there will be 50 million people unemployed. if you don't get this done, that's the world there will be jpmorgan, bank of america, wells fargo and maybe

citi we run a risk now that's all the companies and they're the only ones who have the credit to do it we can't have that happen, madam speaker. t that would be the disaster for america that you and i both think is unthinkable is there any give? do you have -- do you need something from mnuchin what are you willing to give in return so we get this done today and we do not have that look of what this country will be if we don't get agreement. >> we have to get agreement. that's why you have to weigh the equities when you're -- i didn't want to do immunity from liability, but i knew i had to do that to do the masks, so we can get the masks out. again, it's legislating. you don't get everything you want that's called compromise that's important >> right >> and weighing the equity of getting those checks, as you all were talking about, getting those checks into the hands of workers and consumers as soon as possible so when we look at solutions, does this work as fast or what

works the fastest and in the best way i do believe, though, that people should put this in perspective. in the past three weeks, we have put forth three bills. the first bill is 8$8.3 billion for research, this and that, test, test, test, test the next bill, addressing many major concerns to the tune of billions of dollars. this bill will be a trillion dollar bill, which nobody even saw until saturday so it's not -- while we all appreciate the urgency, it's a big responsibility to do it right and for the -- where we can find shared values to do that you talked about that story, i'll tell you what was my -- delivered the message to me clearly. i said on sunday when we met with the -- secretary mnuchin,

mcconnell, chuck schumer and kevin mccarthy, i said let me just begin with a prayer of pope francis. he offered this prayer to the world. he said enlighten those responsibilities for the common good so they might know how to care for those entrusted to their responsibility and to that response, mnuchin said you quoted the pope, i'll quote the markets. i just want to emphasize the word his holiness used is responsibility that's the word, we have to be responsible. responsible for workers, responsible for our children who are not in school, responsible for our seniors who may be fragile. so -- responsible for kids with student loans. the list goes on and on. we have to be responsible. but in a way, there a bill that is very particular to the virus. >> right >> not making general policy this is about how we attack this

policy so when we had some disagreements, when they introduce things that are not -- we're all trying to stay with that regimen are not particular to this challenge. >> right >> i'm optimistic. i think everybody knows the overarching view is we have to get this done, "a. "b," i have three options. they can -- we can come to a conclusion that sticks, not that they change it come to an agreement where it is all compromise, "a." "b," that -- then we have unanimous consent, and this can move quickly if we don't have unanimous consent, my two options with my members is to call them back to vote to amend this bill or to pass our own bill and go to conference with that the easiest way to do it is for us to put aside some of our

concerns for another day and get this done. but we can't -- you can -- you can support a bill because -- if it doesn't do enough that you want to do but that's what you can get. if it has poison pills in it -- and they know certain things are poison pills, they don't want unanimous consent. they just want an ideological statement. >> but, just to defend secretary mnuchin for a second i did not mean -- i don't think he meant to disparage the supreme pontiff by mentioning money. he, like all of us, are just worried about the worker we can say where the money comes from, it could be the corporation, but at the same time corporations do pay people. i'm concerned about equity >> i said corporations are the source of jobs >> i know. i just thought it was difficult -- no name calling about secretary mnuchin. we know he's working pretty hard, too. i do worry about equity in the sense that -- >> it's about values

we're saying bunnal up shga bub to find a place to meet. >> i think what we don't want to see that happened in 2007 to 2009 is that the very rich, whether it is warren buffett, the banks, ceos, they came out ahead in part because who paid the -- who paid for the trillions that were involved then the american worker. how come the american worker can't participate with the companies that are being -- that are going to be bailed out, maybe some equity with them because i think we're all kind of tired of at the end of this, you know who got richer? the people who were already rich how do we change that dynamic with the battle for the ages coming, i think? >> you pose a good challenge i don't know that it can be done in this bill but i do think that there is an opportunity. i see everything as an opportunity to say how we can limit our exposure as we -- in

the future by having more participation with all of the stakeholders it used to be more that way until it just became a bottom-line economy in terms of the markets. i'm a big believer in the markets. i've been watching the markets since i was a teenager, and that was a long time ago. >> you're focused on the markets. >> i'm saying if you want -- the best way i think for our economy to succeed is for everybody to succeed including the consumers who are the life blood of it that's why we want money into the hands of these workers as soon as possible >> but we don't want to disenfranchise the stockholders. we have a lot of people who listen it's 401(k) money, i.r.a. money. we don't want it to seniors have no savings i listen to people who call in our show and focus on our network, i say these people have to have a voice, too we don't want to disenfranchise

the small shareholder who has tried so hard to be able to save money and might see that money go down the drain while once again the ceos get richer. >> well, god bless you for that thought. that's a macro discussion that our country has, and maybe that's the gist of the conversation in the next election but for today, trying to get this bill passed, i think it's really important to note that, again, the difference we had was that they were starting with corporate america -- i'm sure corporate america is friendly to workers. it's not an unfriendly thing, it's just saying there has to be more equity. i think the best thing that we could do so we can see a light at the end of the tunnel is find a cure that requires what we put in, billions of dollars for research i think we need a major scientific intervention right now as to what does work and doesn't work about stopping the spread of this

you talked earlier about what has worked here and there in terms of keeping people and testing. i think you have to do both. there's been a delay in the testing. no use going into what was we have to talk about as we go forward. and as we go forward, i think it has to be so to be so much more science-based because we can either see a light at the end of the tunnel of this because scientific basis for, you know, staying home and this or that, is working, or if we just forget that at that light of the tunnel can be the p proverbial train coming at us. that i think the country has to make that decision, and it's not a question of let old sick people die so the markets can strive i hear that in some of the conversation it's about how we address this in a scientific way and not notion mongering but evidence-based decision-making about it, but we all have the

same thing none of us, nobody roots against the stock market everybody wants it to thrive >> now, let's talk about you are a great head counter and tactician. can we get this bill through the fiscal hawks in the house? can we get something today, a pledge from both sides saying american people, we are not going to let you down. we've got a deal i know i keep, devil in the details, that say metaphor i'm kind of sick of, just kind of a commitment that you, secretary mnuchin, that this is going to be done by the end of the day and we're just not going to let you down and we've got to work on the health care side, we've got to get the testing done. we cannot have a situation where testing is something we think is going to happen and go to the high school drive-through and turns out we don't know whether we're better for two days. will we ever feel more confident knowing that you've got your people lined up, secretary mnuchin has his people lined up and we get a deal done and if

there are other things that need to be done later, even a second bill, the bill to be able to put money in the workers' pockets, 150 million people watching us now, in one form or another, ms. speaker, can't we get a deal that says to them, the 150 million workers, you have nothing to fear from washington. you're going to get your money you're going to be able to keep your job for at least 30 days, while we finish this, and we've done this for you. can we say that right now? >> we can say it when we have a deal that could be imminent in a number of hours. i can say we're all receptive to getting something done we all know that everybody doesn't write their own bill, that it's a series of compromises, and that we think the bill has moved sufficiently to the side of workers with respect -- we actually are talking to the employers about what they think the traffic will bear and the rest, so this isn't

a conversation with workers and not with the airlines or other industries, hospitality, parking, you name it, restaurants, you go down the list, and trying to be discreetly trying to address their problem. so it is not a one-sided conversation on our part however, things like a $500 billion slush fund was really insulting. >> understood and i think the secretary has come to that agreement with you, and has some sort of transparency factor, inspector general get an oversight panel. i want to leave you with this sense. one, would you put business to the test, large businesses to say you should join the pledge of kevin johnson from starbucks and keep your employees on, and then in return, can you give us a pledge that you will make some compromise, secretary mnuchin make a compromise and let the

american 150 million workers know you will be protected by our government, you will be. promote the general welfare, the general welfare will be promoted by the end of the day. >> well, i think that's very possible but until they have a deal, i can't announce a deal but i can say that everyone appreciates the gravity of the situation, at least in congress, the gravity of the situation, the need, the timing is everything, but again, this is a multifaceted approach that we have to take with all of this, and addressing the needs of the workers. it's desperate i don't have to explain how desperate it is and the rest, they're faith-based organizations, nonprofits, all kinds of community activists trying to meet the needs of people last night i thought we were at a good place and all of a sudden, they said we're not doing any food stamps. we're not doing that >> right >> they do not do that people are hungry, don't have

food now more than ever we need some of those kinds of initiatives, and as i say, a formula that is specific to the covid-19 >> right >> not making policy for the general -- covid-19. we want more money for elections, so that there can be more absentee ballots by mail and the rest of that not forever, just for this period of time so whether we get those or not, we'll see, but again, we have in all three, this will be the third bill, and the first two bills kick the can down the road where we couldn't come to agreement. said we'll do it next, we'll do it next, but they don't always do it next like they didn't do medical leave, osha to protect our workers. is that something we can absorb in order to go forward just depends on the balance. i think we are on a good track i think the senate democrats have moved the bill to a place that i say the leverage is more fairly distributed between

employers and workers, and that my goal always has been to bring this bill to the floor under unanimous consent, where we're all in agreement >> okay, madam speaker, i know that the 150 million people are hoping that you guys have meetings of minds. obviously there are some issues, i know you think they're not tangential but 150 million people want a deal done and i hope you folks can agree to something and we look forward to something with optimism. thank you so much, speaker pelosi, for joining us >> i think that's well-sounded thank you, jim >> ghoood to talk to you, thank you. david? back to you. >> okay, jim thank you for that of course bringing on speaker pelosi, the market as you point out, of course, and everybody else watching very closely we do have the s&p up over 6%. unanimous consent an important component given it wouldn't require much in terms of moving

things along quickly in terms of the vote >> exactly >> let's come back from break. >> david, the problem is no wish list i hopes she puts aside the wish list, secretary mnuchin gives in not what the slush fund is but $4 trillion save more than just big corporations, but you know, obviously they don't come together in the next 24 hours, it's a different world for all of us. >> yes, as you pointed out, time and again, and as everybody else knows, time is of the essence. >> oh, yeah. >> jim, speaking of time, we'll take a quick break we have the ceos of marriott, coke, and microsoft all on board the next couple of hours here on "squawk on the street," and "squawk alley. we're back after this. through the at&t network, edge-to-edge intelligence

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good tuesday morning i'm sara eisen with jim cramer and david faber as we take separations. new home data crossing rick santelli with the numbers rick >> reporter: i'll tell you, these are powerfully strong numbers for housing. our february new home sales

number 765,000, seasonally adjusted annualized units. many will say you know that's down a bit from where we were thinking we were going 770s this is the best number really since july of 2007 last month it's 764. this month it's 765. these are truly strong numbers now, we did have numbers that were already out, march preliminary numbers 49.2 on the pmi, on the service side it was 39.1 these are the lowest numbers ever now, keep in mind the series started i believe in early 2017 so these are cycle low they've never been lower and the composite number becomes 40.5. so not very good there, but what would one expect finally, our most current read will be a march read on richmond fed manufacturing index. we're expecting the number at minus 1337 we ended up with a positive number at 2. that isn't bad when you consider

it diana, going to you, these numbers 765,000 last month, okay, now it makes sense i saw a revision that said down. last month it was 764. they upped it to 800,000 so these numbers are going well back into the 2006, 2007 era why don't you comment on them, diana? >> reporter: yes, this is an incredibly strong beat for february new home sales and it's what we were seeing in the existing home sales as well, this was set up to be an amazing spring for the housing market. you saw a lot of foot traffic out early. these numbers are based on signed contracts in february, not closings so as people out shopping during the month and signing those contracts, and that was when coronavirus was definitely on the radar but nothing like it is today. while these numbers are certainly not irrelevant, they are going to change quickly. i want to talk a little bit about what the builders are telling us now, after seeing this incredible february, which they did talk about. i spoke withcheryl paller, ceo

of taylor morrison homes, she said cruise are still out building and the sales offices while locked, they are doing a lot of private showings and they are seeing strong demand lenar in their conference call for quarterly earnings stewart millman said even in the current environment we are still selling homes. he said we are seeing slower foot traffic but higher conversion rates the people who are coming out to look the at the homes, they are serious buyers and they are converting to contracts much more quickly than usual. so again, you know, it's like i said with the existing home sales. it was set up to a powerful spring in the housing market will this demand be pushed to the fall possibly we certainly hope so, but we are seeing slower foot traffic we're hearing it from the real estate agents, we're hearing it from the builders so don't expect these numbers to get better over the next couple of months, they're likely going to get worse, again, if they get pushed back to the fall, that demand, that would be great. david? >> diana, thank you. diana olick of course on the strong numbers pointing out that

they are though looking backwards, as we know, and it's a very different market right now. speaking of the market the s&p up almost 6%, a lot of that based on expectations that congress will move forward with a bill, stimulus bill to help support workers and companies that are suffering dramatically as a result of the cease that has taken place in economic activity throughout our country. in the last half hour of "squawk on the street" jim spoke to speaker of the house nancy pelosi here's what she said on the prospects getting that bill done in the short term. >> i think there is real optimism that we could get something done in the next few hours. the senate bill, the senate democrats have done a great job of taking the bill from a place was trickle down for workers, it was about corporate america. we're about the workers, because this is where the economy

thrives, where people have confidence in having an income, having a paycheck, and then willing to spend in a consumer economy. we believe that this is not only good for the workers, the right thing for the country, but also good for the economy >> jim, based on what you heard to your questions in answer, a, whether we get a bill today and b, whether it will be effective in getting the money where it needs to go rapidly? >> i think that b is almost a certainty, given the fact that secretary mnuchin this morning gave in, gave in to what the dems want, which is transparency and obviously oversight to not the slush fund, to demand who is going to be able to get the money to the workers, and i think that the slush fund is an unfortunate characterization and ill-advised one. what it says to the republicans we're right in your face, we're willing to stand up and give

what you want but understand what you're trying to do, it doesn't help i think that anything that advances the ball is something with neutral language, that said the speaker is a complete pro to getting things done, and knows that if the country, the country will feel very let down and obviously the markets will be crushed. if i were a betting person, and felt like it would be okay to come in when the s&p is up 5.85%, you better believe there's going to be a deal today, and i heard enough extraneous issues that i think do not fly with the republicans that better not be just a curious wish list. i tried to get from her what she'll give up and try to get her to hell us what she needs fromsecretary mnuchin. i think she told us what she needs from mnuchin and also gave us a wish list that will not salvage the situation. it's almost as if there are two bills, david the bill that says america we're not going to let you down, here is the money and it's going to be administered almost like i

wish it were administered via mutual panel although secretary mnuchin would do a great job and the second bill, the long-term wish list that the democrats have had, and when you get that long-term wish list, i think that's one of the wish lists the republicans will say no and we'll take the risk. do you think you'll get biden if it's a deal breaker, and i don't think that's fair to the democrats, but i think that's going to be the characterization that they are playing politics in the republican's arm. >> you pointed that out earlier and it's worth coming back to the legislation itself, in terms of what it empowers the fed to do, 450 billion that can be levered as much as ten times >> right >> to go to companies. it doesn't come without some strings, right a 1% commitment fee, got to pay in-kind, companies won't be able to buy back any stock. there will be a cap on compensation of the ceo. i don't know what else is part of that that may have gotten your attention >> the difficult issue >> right

>> it cuts to the core what i felt was the issue with president obama. do individuals really own stocks there's a dramatic increase in people who own cash and stocks the asset is is so tarnished we want individuals to save money and if you are just sitting there, earning 0.25 in a money fund, you're going to be destitute by the time you turn 80 so i hope that the democrats realize that dividends aren't just the purview of the republicans but are far deeper in american society. >> so clearly, jim, the optimism that the house speaker shared with you, a deal potentially within hours, that's helping the market is up we've got every sector higher right now, and it's being led by the most beaten down sectors like energy, like materials, like industrials, staples are

lagging, nearly 6% rise and more than 1,000 point gain. let's assume that they can get together, i'm not sure we should just assume it >> right >> assume the optimism is well-founded we have to have this tough conversation as a country and the president moved the ball forward last night at the news conference about sacrificing our economic health for our actual health and maybe reopening the economy sooner than expected or sooner than many doctors would advocate, and i'm just wondering, bring it back to the markets, whether you can trust this kind of rally when we still don't know how much the economy is going to be locked down and whether the markets want to tee off of the virus trajectory, jim, or the economic trajectory and whether the paths will be diverging here >> i think some will be determined by our next interview. we have coca-cola coming up, and that's a defensive stock it's up. the stock that i watch more than any other stock is zoom, because we all know that zoom stands for no deal and zoom stands for no

hope which we certainly don't want. we have to get past the idea it's test, test, test, and then you're free. it's test, te, test, sirological test and protection and who can get the wonder drug that is really just a malaria drug that obviously has cardiac arrhythmia issues so we need to have both. it's not, you test, test, test, get the workers back to work but it's the antibody protection that we need in order to make it so that we don't send people back to the wolves so i mean you're absolutely right, sara. the companies that are going up are the ones that say there is a deal and the companies going down are the ones that say listen, there's a deal, we don't need you anymore that trend needs to continue and you know that's a break of the trend we've had in the last five days >> guys, i want to shift now to the auto sector, if we can,

because we have a guest i want to get to as well, of course on what actual automobile sales will be this year, and the names, tesla, gm, ford gm this morning pulling down on $16 billion in available credit, via its revolvers. ford on the cusp potentially of being a high-yield credit. adam jonas from morgan stanley follows of course those companies very closely adam, good to have you this morning. let me start with the update of the industry, you started with price targets and you as well are talking about lick wquidity balances and things of that nature why are you feeling more positive, i guess, on this industry at this point >> thanks, david first, i want to offer my thoughts and prayers to everybody, including the cnbc community, which i know has been empty so i want to get that out there, thanks for fighting

through this so look, we stress tested our balance sheets auto company balance sheets are incredible they have doomsday balance sheets run by treasurers there in '08 and '09 we're all -- there's austerity look, gm just drew fully $16 billion on its revolver and the stock is up 10%. that doesn't necessarily have to call about it but it tells you something. and then we're also looking ahead to the stimulus, the unprecedented stimulus actions which we're seeing on a moving day-to-day, whether it's to markets, stabilized credit markets and direct to the consumer, but the key here is, if you can survive the next three months, if you're an auto company, survive the next three months and we think basically they all got what it takes to do that, you're going to sell a boatload of cars later this year, and your stocks don't just recover, they multiply, so we're not moving to attractive yet at the sector of this point because

of the fluidity of the situation, but clearing out the sentiment where people are asking recession or depression, that's a sign of it's time to do the work and pick your spots >> all right, so your point is basically if you can avoid significant shareholder or business impairment there's going to be life on the other side a lot of people think that investors certainly do as well you mentioned depression it's not completely clear at all right now, adam, whether we're going to be able to avoid a downturn in employment, the likes of which we've never seen, and it's unclear how long that will last. >> nobody knows, and this is why we're kind of reminded about you know, this is a war-time -- a war-like environment fdr called it the arsenal of democracy. back in world war ii, ford, the ford motor company created the willow run plant to build the

b-24 liberator bombers chrysler built tanks and rockets and planes and general motors put every division on this thing, right the arsenal of democracy, and in some ways, we're in a similar situation. you know, you got tesla, ford and gm all making respirators with medical partners. jim cramer you weigh in here but i'm not calling this, you got to ask the question investors might be asking, can you bankrupt a company making ventilators in an emergency crisis anything's possible but you see the level of austerity and unprecedented action that's happening, and we take all that into account, even though you're right, no one can call a bottom at this point, you just play the sensibility and the stress testing on our balance sheets which we've done at morgan stanley. >> that's true, and i know there's some interesting, there was interesting discussion at the beginning when fdr asked ford to play the role and ford was too close to the access but

ford came around, gm agreed that day. let's talk about the irony of this era, adam there's one company that you have said has a strong enough balance sheet to be able to do what's necessary, it is not ford motor. it is tesla. can you explain the irony and the fact that elon musk delivered 1,000 ventilators yesterday and that if you had to bring in someone who can create a lot of ventilators, it's going to be musk >> well, not only does he have that kind of creativity of all of musk's skills, and he has many he ain't perfect but he's got a lot of skills. his ability to rouse public support and to kind of be this ambassador of public/private partnership and work across the stack, if you will, is pretty incredible you call it irony. i think it's duty. it is a duty, jim. this is, my companies are in survival mode. yes, tesla has a balance sheet

on paper can survive six months of a shutdown but in practice, jim, if we shut the economy down for that long, we all know the narrative is very dark at that point. so they're doing everything they can. they're, what is it, everything that it takes approach, such that if there is, we hope we avoid this but if there is a moment where auto companies, including tesla, need to go to washington and say, hey, we're too important to fail, they need to show that they did everything they could does that make sense >> right right. yes, it does, adam finally, i do want to end on kind of what jim implied, which is the ford motor company, the one company of course that did not seek government assistance, that did not go bankrupt, at least, i should say, during the financial crisis can ford survive this? >> yes period yes, they can survive this they survived '08-'09. they can survive this. ford has had its execution issues that's no secret

your programs talked about it headed into this but between the over 30 billion in liquidity and the industrial operations, the 30-odd bill on liquidity untapped at finco, treasury and financial team that was born in the '08-'09 downturn, to me the signal was when that family, when the board decided to suspend the dividend, i put my hands in the air and said, that's it. they're all in it's all about surviving william clay, bill ford, the great grandson of henry ford does not want his name --he's still a young man, in his early 60s -- he, ford, he will do whatever it takes for ford to survive so yeah, doesn't mean, again, ford can't go from four to two along the way this is fluid, but if they get through this, we're going to sell a lot of cars and maybe another time we'll be talking about cash for clunkers on your

program, too if we only recovered at 12 millions sar, look, you saw it happened in '09, the cash for clunkers ran out in eight weeks. >> you are dead right, adam, and just have such creativity in our thinking and inspiration for those of us trying to figure out what's really going on in the market you've got a great, great beat on things. >> adam, we appreciate you joining us you're at 13.5 million for 2020 in sar and a lot of companies have gotten that memo, of course, raise capital any way you possibly can adam jonas, thank you. adam of course covering the automobile sector for morgan stanley. sara, over to you. >> we'll continue to look at the company impact of all of this. joining us now is coca-cola chairman and ceo james quincey for a cnbc exclusive coke stock by the way is up 6.5%, though down 30% in the last month james, thank you so much for skyping in we haven't gotten to talk to you as this crisis has unfolded.

just give us a sense of the impact right now on coca-cola, from corporate to factories, to consumers. what are you going through >> well, firstly, let me express my sympathies to all those impacted by this virus, and actually thank everyone at the front edge of the health systems and the essential services for all they're doing to keep us safe i would like to thank all the employees of the coca-cola company and its bottlers for everything they're doing to keep us up and running, as we look across what's happened in the last few months, there has been a rolling impact across the world, from asia, through europe and now starting in the u.s., and i think it's going to be we're in the profound phase, to misquote wondering stn churchill, we're still at the beginning of the beginning we've adapted. we started in a strong, robust position and i think you stand back and take the historical perspective as we enter kind of

the darkest hour of fighting this virus, it's worth remembering that coca-cola company in its entire history has emerged from every global crisis whether military, economic or disease pandemic throughout our history, we have emerged stronger, and when it's finished, we've been better, and we have grown versus the starting point we're adapting we don't know all the things that need to happen from a to b and our employees have done a great job supporting the community and supporting our customers. >> as far as your employees are concerned, have you made any adjustments? are you thinking of doing any layoffs? is business hurting or is supply getting hard so that you might need to make some tweaks in terms of hiring and spending >> we've got a very clear approach on this the coca-cola system has been through many crises and we have

crisis adjustments in our dna i you like we haven't launched job restructuring nor do we have any plans to do so we take a perspective in the long-term we'll emoernerge stro and grow by the end of this. even if there's a hit in the short term i think q2 will see a profound economic shock around the world. we have to adjust our business and we have lots of variables and we follow our capital allocation model in a way, we focus on prioritizing the organic business and the dividend, and then m&a and share buybacks at the bottom, so we want to keep our skilled employees because we believe there will be a rebound. we're hoping for a v-shaped recovery we're preparing it to be a u-shaped recovery. we're focusingon keeping the resources and all our people, so that we can make that recovery happen >> james, jim cramer how you been >> hey, jim. good to speak to you >> all right, now morgan stanley put out a piece that i'm sure

you, let's say, gasped at, which is downgrading coca-cola to equal weight and why, i'll quote "we see demand risk as high, visibility as low. note a number of additional risks not widely appreciated, lower revenue profit from case, issues involving convenience stores" and get this one, "coca-cola's debt leverage." how do you -- how that, when you got that particular missive, you can always say "i ignored it" probably what i'd do when i'm not jimmy chill. it basically makes coca-cola sound like a second rate credit. >> look, we went into the debt market a few days ago, jim, we raised $5 billion. we saw that the market was advantageous, and we were massively oversubscribed there's a huge demand out there for instruments of all sorts of durations, from a company as solid, so we started well funded and we've gone in, we've taken

on longer term debt to really keep the balance sheet super strong as we go into this crisis we've been through crisis before anyone can draw up a list of all the things that can go wrong in a crisis and there are plenty, but also opportunities and we have an incredible workforce that can drive adaptability. we've seen what happens when lockdowns occur. you see a big fall-off in foot and demand from home channels. you see a huge rise in the demand in the at home channel. we are very diverse by business, not just in brands and categories but also channels, so there is some natural rebalancing that goes on, not to say there won't be an impact in q2 but we have the strength to see this through >> someone who stocked up on coke zero ahead of this, i certainly agree. can we get a check, thermometer that at home can offset what's going on let's just say with the machines, what's going on with the restaurants, because i think

a lot of people want to own your stock, james, but are worried about earnings risk. >> look, there's going to be an impact, particularly i think in q2, which is going to be concentrate the largest number of countries in lockdown and there is a full hard lockdown, rather than sort of a softer lockdown, the at-home is not going to compensate in the short term from the away from home, and that's the challenge on us to make sure we supply the at home while there's pressure on the away, and there will be some hit in q2 but we have a lot of levers to rebalance the business and we've used those in crises gone by whether it's adjusting the way we spend, the marketing and the investments in the marketplace, the non-salary operating expenses and the use of capital there are levers in the business that over the long run, over the future that we will emerge stronger and this will still be a great business >> grocery stores, james, have

been open, even in places that have been shut down. are you having any difficulty sourcing ingredients or supplies like cans, and getting deliveries out there to grocery stores that desperately need them right now >> yes, there are some supply chain creeping around the world. there are flash points where it's getting harder to get ingredients through, whether it's delays at the borders, the big changes in channel, channel mix, use different materials so the supply chain is creaking our teams are doing a great job adapting the u.s. is in the period just as the lockdown is starting, you actually see huge volumes starting to go through the grocery trade and so what we're having to do, because it helps everyone, is focus in on the most important brands and packa packages some of the smallest skus will have to be left out, as we focus

our supply chain and help the customers simplify their logistics, so that we can get the maximum amount of supply into the stores to support the big shift. there's going to be a lot more people at home yesterday half the people were eating at home half their meals and the other half of their meals somewhere else out away from the home. tomorrow in a lockdown, they're having all those meals at home and drinks at home there's a big shift in the channels in the very short term of these lockdowns and so we are focussed on ensuring supply to those places that are open >> what's the most important there, bottled water >> actually in the grocery channel and e-commerce channel explosive growth in just about every category, led my soft drinks we've seen it, the great thing about the coke system being a global business, we've been able to observe, implement what do we need to do in china, in south

korea, in singapore, as each of these lockdowns came into place, italy and spain and france and on to the u.k., so we've got a very clear sense of what do we need to do and how do we need to adapt by channel, by brand, and by package to ensure supply for all the consumers and how is that going to change and that's what we are really focused on, is leveraging the strengths of the global system to deliver locally. >> james, since you've had experience in other countries, i did want to get you to weigh in on the debate of the moment, and president trump actually just tweeted about how our people want to return to work they will practice social distancing and all else and our seniors watched over protecti protectively and lovingly. we can do two things together. the cure cannot be worse than the problem. trying to engage what the business community, ceos like you think about the tradeoff between our economic health and our actual health, and whether

opening the economy sooner rather than later is more important right now than keeping us locked down to try to flatten the curve. what do you think? >> look, i think every country is in a slightly different place. the disease is the same, but the strength of the national health systems, versus the degree of the lockdown is country fe dependent. only the governments have all the information. we know they don't have everything we would like to understand about this disease and what's going to happen, but they have the most amount of information faced with the uncertainty to make the decision of what degree of lockdown do we need different countries have done different things chais ha china was strict in wuhan. less strict in south korea some have gone strict, opened a little but not fully i think the governments are in place. our job as a business is to support in a time of national

time, we're here to help take some of the strain and support the government in this moment of national crisis and get it done and they'll guide us on what degree of lockdown and opening do we need and we will ensure supply in that scenario. >> all right, thank you very much for joining us. zooming in, i should say, james quincey, the ceo and chairman of coca-co coca-cola. we'll check back with you when we can david? >> sara, thank you and thank you for bringing us that as well jim, it has been one action-packed 90 minutes we've had with you of course you're not done. >> no. >> joining us later with "mad money" >> james said he missed the quarter, realize take the number down but you may be able to see to the other side of the rainbow and he talked about the balance sheet. i was encouraged by that but we have another kind of approach we're doing. we have skyworks solutions it may be the cleanest 5g plan

david, you and i both know there will be some themes that last or more important than what's going on in terms of business, obviously not in terms of human life so we'll have liam on, who is just fantastic i want to thank you guys for letting me be on the show. i'm booking the other time i have tom demark, the great technician of our time who will make a bullish call today. david, you follow technicians more than anyone, of course i'm being facetious. thank you for letting me crash the extra half hour and thank the speaker for being on and thank the people on twitter for being constructive and making jimmy feel like chill. good to talk to you guys >> and thanks to you, most importantly, jim cramer. >> exactly >> yes, we'll see you in a little bit by the way, we'll get -- right now on the virus sue herrera at headquarters. >> good morning, sara, good morning, everybody we'll start as we usually do

with the overall numbers on the outbreak global cases have risen above 395,000 and the death toll is above 17,200 the world health organization says about 85% of new infections are happening in europe and here in the united states the tokyo summer olympics being postponed by up to a year. it is the first delay in the games. basically the japanese prime minister abe recommended a delay. the chief executive of the tokyo games says it is not clear who will pay the extra costs of moving the games into next year, and in addition to that, the international olympic committee president says the delayed games will be a celebration of humankind overcoming the unprecedented crisis of the coronavirus. more details on the timing and the scope of the postponed games expected a bit later today and the australian government asking the newly jobless to wait a few days before registering for unemployment benefits. lines have formed outside

offices in sydney and melbourne after a government website crashed amid a flood of thousands of online applicati applications china has announced an end date for the lockdown in the area, where the coronavirus was first detected travel restrictions in wuhan will be lifted on april 8th. they were first put into effect on january 23rd. so maybe that time line is something we should all pay attention to as always more coronavirus coverage is at nbc.com david? i'll send it to you. >> okay, thank you, sue. sobering though that time line is of course >> absolutely. we're coming right back here on "squawk on the street." don't forget the ceos of marriott and microsoft will both be joining us on our programming yet to come. stay with us 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.

welcome back i'm sara eisen along with david faber and kelly evans joins us from cnbc world headquarters, coming to you live from separate locations as we continue to practice social distancing here at cnbc. one hour into the trading session and things have been off to a solid start the s&p 500 building on earlier gains, now up almost 7%. the dow is up 1420 points, 7.6% and the nasdaq up 6% so one of those turn-around tuesday kind of days energy is the best performing sector in the market right now, up 12% it's been the hardest hit through all of this, and consumer staples are lagging there, up 3.7%, which gives you the size and scale of some of the gains as hope builds that congress will pass that stimulus package with of course all eyes on washington and president trump's strategy here about getting the economy potentially reopened sooner than expected. kelly? >> we just heard from speaker pelosi, who said that maybe a couple of hours from now we could have some real progress.

let's talk a little bit more about what is at stake for the markets here our guests are joyce chang, and joseph amato, cio who join us now. joyce, let me begin with you it's interesting, i wonder of all this talk getting the economy back to normal more quickly takes some of the pressure off of congress to pass this bill more quickly what are your expectations >> i think congress is going to pass this bill relatively quickly. i don't think this goes until the end of the week and i think the steps that it's not just the congress what the fed announced yesterday was extraordinary with respect to supporting financial markets and the economy. so the combination of social distancing, the market moves we have seen, some of the big e markets as far as the drop in liquidity, since 1929. i do think that you're going to see a stimulus bill, extraordinary actions and could you see some short covering from here, just given how quickly the

market moved down over the last few weeks. >> sure, so your expectation is that bill still moves along quickly here the markets are looking for that joe, let me ask you about again if we're going to start to look towards normalization, do we start to look at what this thank means for the fed? yesterday the whole slate of program announcements came out and do we start even talking about the unwind or no >> i think it's too early to talk about the unwind. i think we're still in crisis mode, both from a monetary and fiscal policy standpoint hopefully the fiscal folks in d.c. don't waste any more time because the policy actions they are contemplating are absolutely needed to get money in people's hands as quickly as possible and the monetary side there's still a lot of healing that needs to happen within fixed income markets which certainly responded positively to the fed's actions over the course of the last several weeks but there's still more to go, lots of dysfunction going on in fixed

income markets and until you see fixed income markets settle down a bit and liquidity is at much better levels than it's been, it's tough to see where there's a bottom in equity markets right now. >> joe, it's david faber always curious to hear what new berger's clients, you've got people managing all the different teams there, but what are you sort of hearing in terms of that, what are you seeing in terms of clients and their sentiment, their desire to get to cash or perhaps just stay the course >> so it's been an interesting contrast, david. i think as you may know a bit about neuberger, we serve large institutions as well as individuals. on the institution side there's dialogue with where the opportunities are, given the hess we're in the middle of now, i'm talking about markets.

obviously the health crisis is paramount but as it relates to markets, whether it's some of the dysfunction going on in credit markets or other parts of fixed income spectrum or inequities where stocks in some cases may have gotten, may be overreactions. on the individual side, much more caution, maybe not surprisingly, i think folks are still getting their arms around something that, while we've all been, you and your folks, the market participants have been living with for the last number of weeks, the speed that this has occurred i think is still spinning the individual investors so i think there's still a lot of fear out there. >> it's march so people are getting updates from their financial advisers and mutual fund advisers and the quarter to date and year to date numbers look pretty ugly, down 25% to 30%. what do you tell people when they ask you how much worse it can get?

>> well, we are in the global recession right now, and we are expecting contraction of the u.s. economy of 14% and still in a period when you look at how long this has taken to play out in wuhan, where they're reopening on april 8th, you still have a couple weeks to ago. potentially the first signs of this peaking in italy. when do we see the infection rate peak in the united states so we're telling people they need to be prepared for this volatility to be here for a while. that said, what the fed has announced has been extraordinary with respect to supporting financial markets and the economy, and we do think that the fiscal stimulus will move forward in the congress this week you could look into a month end and see some rebalancing risk here, given how sharp the market moves have been and we are looking at potential influence coming into the s&p 500, but we've seen market depth and liquidity drop more than 90% in

this marketplace so it's hard to call the bottom here, because we can't call the peak for the infection rate and that's what markets are going to be looking for we also think you're going to see a surge in the jobless claims, 1.5 million, so that's also going to weigh on sentiment. so a lot of the questions ahead are how quickly can we get the fiscal stimulus in to individual households, in to small and medium sized businesses, and here is where we just have to see how quickly some of these channels can work as far as getting the fiscal stimulus to the sectors where they need it the most, as we proceed with the social distancing. >> back to the real person at home, and the real client for example neuberger, you mentioned fear when does that start to abate, in your opinion? >> well, i think joyce makes a good point in terms of the trend on the health side and the virus side, so i think that will

probably reduce the fear levels. i think markets stabilizing a bit. our advice to clients is look, we're in a deep recession. the numbers are going to be really ugly. take the opportunity to very gradually rebalance. don't rush to rebalance. there will be opportunities to add, we believe, at lower levels, the depth of economic decline and earnings decline are still all over the map as you've reported we have numbers that are minus 10 in the quarter, minus 20, minus 30 worse, we've seen equity eps numbers, s&p 500 at 500 bucks a share, 135, 150, so it's telling you people have no idea and i think when there's that void of information as we all know markets respond to that you'll see the ebbs and flows and given liquidity, characteristics of equity markets, you may get squeezes on the upside as things bounce back

and there is some of that rebalancing, but i still think that until you get a sense of how deep the hole is, it's not a fundamental foundation to start rebuilding >> joseph ama tto, joyce chang, thank you for being with us this morning. >> thanks. >> thank you for having me >> with a 7% gain for the market we'll take a quick commercial break. stay with us we'll be all over the volatile tion ♪ yes i'm stuck in the middle with you, ♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's the most open and secure public cloud for business. it can manage all your apps and data from anywhere.

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stocks falling to lows not seen since 2016 and one market expert says it do coget worse. find out how low he sees the s&p adgnioing on trinatn.cnbc.com more "squawk on the street" coming up. 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. .

welcome back to "squawk on the street." phil lebeau? >> ford will not be starting its north american auto plants as originally planned remember once they shut them down late last week they said they'd start next monday march 30th the company out with a statement given the various orders from various governments around the u.s. and in canada, down in mexico, people to stay at home because of coronavirus, they will not be able to restart their manufacturing next monday asoriginally planned they have not given a date for when they do plan to start production again in north america, but sara, this gets right to the heart of this question that is swirling around all the way from the white house and across the country how do you restart this economy? and when do you restart this economy? because clearly you're looking at a big manufacturer like ford saying we're not going to be ready next monday, not sure when we're going to be ready. this is all the same question every company is facing right now. >> right, and the companies have to make the decisions and the governors have to make the decisions. >> yep >> it's not just the president phil lebeau, thank you

big rally for ford today as the debate heats up surrounding bailouts, this hour in washington the former t.a.r.p. inspector general is arguing the need for surveillance and strict government overnight neil barovsky oversaw the troubled assets relief t.a.r.p. from late 2008 to 2011 and joins us now, partner at genera and block. you oversaw the last stimulus, neil house speaker pelosi told cramer this morning one of the big stumbling blocks, oversight, has been agreed to she said there will be an inspector-general of the $500 billion going toward corporations how important is that? >> it is incredibly important, sara i think this is a really, really important development, as originally was proposed. there is going to be very limited oversight that which was going to be there. it sounded like and looked like based on existing already overtaxed inspectors general, so having a dedicated resource or dedicated resources to make sure

that we're keeping an eye on waste, fraud and abuse and making sure these programs are implemented with maximum transparency is so important going forward. >> i imagine you're having a bit of deja vu as many of us are as we await to see any sort of deal and compromise give us your lessons from overseeing t.a.r.p. last time and what you would do differently that the lawmakers need to consider as they try to hammer this out right now. >> you know, i think one of the most important things is on this issue of strings attached or conditions, which there's a lot of debate i know the bottom line is when we bail out institutions and provide government assistance, we do so for a policy reason. there's policy goals behind this last time, the policy was to restore lending and to help homeowners but what happened last time is we didn't have the conditions, the restrictions and incentives,

the carrot, sticks, however you want to call it to actually bring about those policies millions of dollars got burned out but the treasury department didn't want to put any of those conditions and sort of trust the institutions to carry out the government's policy goals. that didn't work. government's policy goals and that didn't work it didn't work because of oversight and transparency and my agency was about to do an audit and show the banks were not using the money to increase lending or help homeowners and you have to have that connection if we're going to moving forward, trillions of dollars of taxpayer money, to help make sure people keep their jobs, to restart the economy, you have to have conditions and then you have to have oversight to make sure those conditions are being fulfilled. that's one of the most important things with transparency and a strong law enforcement presence. >> do you see that happening right now or does it look like

the treasury secretary and the treasury will have discretion over where the funds go and how they get distributed >> you know, it's a very much an evolving process i think it started in place that would be a little scary. the idea of rolling out money, giving wide discretion to the treasury secretary, making it so he wouldn't have to disclose who the recipients are for a period of six months, and i say nothing against the current administration but that's a recipe for corruption and disaster again, i'm not talking about the type of corruption where bags of cash are trading hands, although without transparency that's a real possibility, i'm talking about the politicalization of the process of who gets the money, right we don't want to have a situation where the company that gets the loan or gets the grant or gets the guarantee is the one that has the best political connections or the fiercest lobbyists or frankly knows a member of congress in a district

who can have advocate more forcefully than someone in another district all of that will happen for sure if you have enough transparency and you have oversight mechanisms that will bring those types of things to the surface, you get two things one, you get the type of strict controls that are ness voy that everyone has an even -- is playing on an even playing field here, second you have the deter rent, that treasury official or that member of congress or company if they try to game this process it's going to come to the surface and be exposed on cnbc and in congressional hearings, you have a better chance of making it fair and that's going to make it more efficient and more effective that is what we have for all of the failings of the prior bailout we had transparency brought forward by oversight and we were able to beat back the efforts and minimize their impact >> i think you've said or written that bailouts are almost

by definition a per version of capitalism, given that normal market forces, apparently they say, are not going to prevail. we're now talking about a bailout of incredible proportions for the second time in 12 years. what does that say about capitalism >> i think it's probably a, you know, not the best to read too much into this one about capitalism this is such an extraordinary event. i mean the complete shutdown of the global economy because of a worldwide pandemic is, you know, if anything warrants a bailout i think it is this but the questions that we have to ask ourselves going in as we administer the bailout, do we want to reward the companies that were teetering on collapse going into this and artificially supporting them, versus, you know, choosing our limited resources to help the companies that were already in strong

states this big debate about buybacks, do we want to take government taxpayer dollars and funnel it through companies to the shareholders who reap the rewards from big buybacks and dividends or do we want to make sure that the money stays within the company, at least for the dur race of the bailouts if not for some time afterwards we are tinkering with capitalism when we bailout and that's necessary, but we these to keep an eye on capitalism and not just do this in a way that supports everything in a panic we saw that in the last bailout where sort of panic overruled, moral hazard for large institutions went outs the window and money was shovelled out without paying attention to the long-term consequences and the damages to capitalism. i think that's a really important thing for us to focus on here when we're talking about conditions, talking on restrictions and distributing capital, that we keep an eye so we can get back to normal capitalism, creative destruction which we interfere with when we

bailout companies. >> so neal, the inspector generale is going to be a really important role you were nominated to the job by president george w. bush, but i believe you were a lifelong democrat who should this person be and would you raise your hand to step up to the plate >> i think my battle scars are pretty deep and god bless the person who takes on this job i think one of the things that is contemplated in the legislation is to give my old agency that authority. believe it or not it still exists in wind down phase, kristi romero the special inspector generale, my chief of staff and deputy and running the organization and she has the necessary experience and would be a fine choice i'm always happy to help out from the sidelines but i don't look forward to getting beaten about the head on cnbc any time all that soon. >> we appreciate you joining us

with the recommendations hope they're listening in washington neal barofsky, thank you. >> thank you so much. >> over to eric chemi, a sector story at headquarters. >> stocks chicalawing back gain with every sector in the s&p moving higher. that's the only sector to do so. a few names related to credit card and payment technology are leading wait today including alliance data, visa and mastercard even after it withdrew its 2020 guidance dxc is up 20% and plans to tap $1.5 billion from its credit line back over to you guys. >> all right marriott's ceo arne sorenson after the back and the cbs of cbs health larry merlot on a new recession call and nike

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good tuesday morning i'm morgan brennan with jon fortt and kelly evans coming to you live from separate locations as we take social distancing very seriously here at cnbc. this, of course, as a precaution just taking a look at the markets right now, we've got a rally under way with the s&p up 6.5%, the dow up more than 1300 points as well, more than making up for yesterday's losses. strongest rally for the dow and the s&p since march 13th joining us now to break down the action we're seeing is mike santoli. mike, it's great to have you this morning just taking a look ats the s&p, every sector in the green being led higher by energy and materials, what does that signal >> well, it tells you it's a pretty comprehensive bounce that we were really set up for, morgan i think that's one of the things you have to keep in mind how many d