>> janet yellen thank you so much for your time and insight we appreciate it. >> my pleasure. >> the former chair of the federal reserve. hunker down at home like the rest of us, morgan >> and what a great interis view that was, sara thank you for bringing that to us good monday morning. i'm morgan brennan with sara eisen and jon fortt, coming to you live from separate locations as we continue to practice social distancing at cnbc. carl quintanilla will join us momentarily. biggest gains for the dow and s&p and nasdaq in seven sessions, you can see everything is up better than 4.5% this monday morning we've more than erased the losses we saw last week. moments ago we spoke with former fed chair janet yellen as you heard on our economic outlook. take a listen. >> a v, which is what we're all hoping for, is a best case scenario and if activity could

begin to resume, as many assume in june and maybe be back to something more normal by this summer, i think a v is possible, but i am worried that the outcome will be worse. it really depends to my mind on just how much damage is done during the time that the economy is shut down in the way it is now. >> how much damage is done joining us is bob dole, chief equity strategist. thanks for being with us i want to get your thoughts on the potential for this recession and subsequent recovery and specifically how that's factoring into your outlook for the markets? >> yeah. i'm not using a u or v i'm using a checkmark, kind of the big decline and then a noticeable, but slower uptake than we had on the downside. as you know we shut the economy off. we turned it off

it's not something from the outside did it we chose in order to fight coronavirus to do that therefore, we can turn at least some of it back on it will take longer to convince people it's safe to come out from under the covers when it told them to get under the covers and certainly the massive stimulus will help we own more stocks today relative to the size of our portfolios than we did six or eight weeks ago, but we think we're in this second phase of a bear market. first phase, straight down, shock and awe, massive volume, exploding volatility then you get into this choppy side wise, some days the limit up, some days the limit down that will take a while i think we make a secondary low. then the economy and earnings and p/e ratios will become important. this is the technical phase of the bear market we're in my judgment.

>> just to dig into that a little bit more, bob, then what are the key data points you're watching for in terms of being able to potentially emerge out of that second stage of a bear market and i guess more than that, can you actually see in coming weeks or coming months, the market rally even if the economy continues to struggle with recession? >> yeah. the stock market will bottom before the economy does. the stock market may have already bottomed at 2192 on the s&p last monday's intraday low it's possible that will hold even as the economy is still in freefall the numbers are always different, but on average stocks is bottom four or five months before the recession does, so that would suggest that probably now is the time. what i'm trying to do is reorder my portfolio on big up days like today, i'm more of a trimmer than an adder.

on big red days, i hold my nose and try to buy the things i'm going to think are going to be in good standing when we come out of this. what we want to see on these rallies and declines is less intensity, lower vix, fewer names on the new low list. i know they're all technical factors but to repeat, that's in my judgment what drives markets in this sort of environment, not so much what's the earnings. earnings are in a freefall and i have not yet caught up to reality. putting a p/e to get a market value is really tough at this point. >> david, chief market strategist at jefferies, david, good to see you. >> good to be here how are you? >> i am doing well i cannot complain. today the markets are rallying, but we heard from janet yellen just moments ago we've heard from jamie dimon

to me their tone seems a little sobering about what happens to the economy if we really remain in this mode of needing to be on lockdown for an extended period of time. the damage that could be done. do you think the markets right now are factoring in either that checkmark or potentially a u-shaped recovery or are people still thinking about that v a week or two ago so many people seemed to be expecting >> so, there's a lot of -- so interesting. i was listening to larry kud lo and then listened to janet yellen and it's a very different vibes coming out of everybody. i think two things, one is nobody really knows how quickly this thing is going to recover we all know it's going to be deep, pretty ugly, double-digit unemployment and double digit peak to trough drop lt nefl of gdp and debate how quickly we can get back to some semblance

of normal. that's the difficult task. we know the fed is kind of all-in, the treasury is all-in, congress wants to cooperate. everything looks good. i guess the interesting thing i took away from sara's interview with janet, when she brought up the junk bond market and it was like no, i don't really want to go there, let's help main street over wall street a little bit. i think that tug of war is going to be kind of the interesting fulcrum here will we see what we've seen in markets already, which is investment grade dual and the good quality names get the fed support and then some folks tharp in the more leveraged businesses find themselves with a difficult -- very difficult time ahead without as much support. that's what the market needs to figure out short term. we have a lot of dislocations in the marketplace underneath the surface of just looking at the s&p. >> david, it's sara. that's sort of what i was trying

to push down the junk question and the equity question because i think there's a real question about whether there's a limit to what the fed can do and whether what it's been doing interis vehicle in the markets is alleviating the pressure enough. what are you guys seeing >> it's definitely not, sara look, the last time we had it, they had legacy and new issue. this time they didn't put commercial real estate in there. is that a signal from the if fed they're not happy with what happened in commercial real estate markets or just an oversight. we don't have cloness thers or residential mortgages. we did get mortgage service advansz. there's a lot of little pockets and holes and i'm trying to figure out, like i think a lot of people on the ground are trying to figure out looking at these markets, is there a picking of winners and losers or picking of markets that people

felt were in doing the right thing and then kind of leaving some of the ones they felt were doing the wrong thing kind of out to dry if i don't know i think that would be an unfortunate outcome. at the moment i'm nervous about that bye bifurcation i find it difficult how they can lend to very distressed entities, and to buy equities given their mandate. i think you have to get, as janet said, congressional changes in the act to buy equities for this fed to start lending in the distressed space, it's just not set up in the mandate of 13.3 to do that. the treasury could set up programs like they're doing for the airline industry and others, but to have something that's really working through the junk bond market like it's working through the i.g. market is a pretty tall order for the fed

given its current legal structure. >> yeah. >> definitely some key points you're raising there, david, and certain we have to see what happens with crude prices with this tentative opec plus plus meeting that's schedule for later in the week too, because you can't talk about junk bonds and that market and not talk about the collapse we'veseen i crude prices and some of these other industrial commodities as well subsequently. bob, though, i want to go back to you because along these lines when you said you might be holding your nose and adding to some positions right now, what types of positions are you adding to and how much is dictated by government involvement right now? >> when i say hold my nose when the market is down 900 points, 1200 points, which it is sometimes you have to hold your nose to buy almost anything. >> of course. >> it's not about buying the market conditions. what i do know is looking back at qe 1, 2, 3, post those, we

had winners. they were technology and health care we had losers. they were utilities and reits. my guess is that pattern will repeat itself, so that's what i'm doing from a sector standpoint inside portfolios i think there's also, as you just had a good conversation with david, the whole quality issue. there's more we don't know than we do know, so i'm doing little of both but leaning more to the quality than the low quality when i buy stocks. >> bob, just looking at some of these gains this morning we're up 100 0 points on the dow. do the magnitude of the moves match the magnitude of the developments we're getting on the health front it was great to see the number of hospitalizations in new york down and some of the peaks flattening out in italy and spain, but do we know enough to be seeing rallies like this? >> we sure don't, but no different than on the big

declines, was the news bad enough to say we should go down 1,000 points market volatility in both directions gets accentuated during periods like this i think that's going to continue now the volatility is certainly less than it was a couple weeks ago. just look at the vix you're right, we see light at the end of the tunnel, but somebody said it's a very long tunnel in terms of these cases there is nothing more important than bending down that curve that would be a signal for lots of good things we need to watch that carefully and the market is saying hey, i'll take any good news you can give me and we got some less bad news to be a pessimist, but some good news if you want to be an optimist >> bob, it's carl. really quick here. let me jump in you know, we talk about the light at the end of the tunnel, goldman says dividends down 25 and buybacks down 50 buybacks, which have been the bigger contributor to investor demand than all other categories

combined what do stocks even look like once we do have antivirals once we do have testing at scale? >> great question. that is definitely something to focus on that is we know that the only consistent buyer of common stock since the bull market started has been corporate america, individuals, institutions, foreigners, net sellers. that one consistent buyer. yes, the buyback but also you buying my company in 100% or buying back your own company and going private, all of that is going to slow down so that important buyer at least at the moment, and my guess will continue, is being taken away. we shouldn't expect a return to 3400 on the s&p any time real soon as a result >> finally to wrap all of this up, david, as the government does ramp up spending in the aggressive ways right now, are something like a war bond or a pandemic bond, does that make sense? >> i mean, they sound nice

it would be interesting to see if you got different tax treatment for them or likely have them with the municipalities with the special tax treatment. something like that will be nice will it matter at the margin, i don't think so we're talking about $2 trillion in add to the debt, 20% on the debt to gdp ratio. when all is said and done, a 30 to 40% balance sheet of the fed will be up probably a double if not triple from 3.6, 3.8 up to 8 to 10 before we're all said and done it will be a nice marketing gig but i don't think it matters the real policy meet is the $2 trillion, the leveraging of 400 of that and the if fed balance sheet to get you to 4 dlt and the kiwi and other purchases and the other purchases the fed is doing to take the balance sheet up we're talking between monetary and fiscal policy something like 40% of gdp and stimulus which is

wartime levels yeah, call them war bonds or what you like, but we are doing wartime stimulus 100%. i should call it -- >> incredible -- >> it's not stimulus i should be careful. >> yeah. pretty incredible numbers nonetheless. thank you, both, for a robust conversation david and bob. we have the dow up about 1,000 points and the s&p at 2604 >> all right we are joined now by an ibm's new ceo arvind today he succeeds ginni rometty through the end of 2020. it's good to see you good morning >> jon, good morning a pleasure to talk to you again. >> now it was two months ago that the announcement went out that this ceo transition was happening. i tell you, it feels like six months these are certainly unusual circumstances in which to be taking the reigns of a storied

company like ibm first i want to ask, how are you -- how much of ibm's workforce is working from home what is your message to them at this time? >> thanks, jon so if you look at our workforce and if you look at the timing over the last two months, it's certainly been interesting this was not anticipated certainly end of january and right now, we feel that we are in good shape. if i look at our workforce about 95% of our people are working remotely and from home over the last few weeks, we have managed to get hundreds of data centers, half a million laptops, hundreds of thousands of mobile devices and 95% of our employees effective. now that said, some number for employees are essential and they do work, whether at manufacturing facilities or at supply sites because the services they provide are absolutely essential to our clients. we are really pleased with what we managed to do with our

employees working remotely and being quite productive in that environment. it, of course, is a testament to the investment we have made over the last years in our network, in remote working capabilities, in all of those tools to work remotely and effectively, et cetera >> now i know you have to be sensitive when it comes to financial questions because you've got earnings in two weeks, but i want to ask from a macro perspective, how big of an economic shock are you reading this pandemicto be to the tech ecosystem? compare it to the financial crisis just over a decade ago, the dotcom bust 20 years ago >> look, jon, as you said, so i'm not going to comment on performance because we are in a period at the end of the quarter. that said, look, if everybody is going to take a hit from the

future gdp issues, if gdp goes south and some of the predictions are dire, then obviously there will be some correlation. it's hard to predict exactly how much the work we do, though, is quite essential. consequently we feel we are well positioned to sort of weather this crisis and the storm. it's hard to put any precise persona percentages on it right now. i think the next few months will tell us how this will bear out. >> absolutely. let me ask you at the functional and micro level there, do you expect that ibm is going to function differently as a result of this crisis, whether it has to do with working from home, drills, preparedness, use of video or collaboration tools i know that you are already doing some of that, but how does it look from here? >> well, so there's going to be a lot more virtual work or remote work using all of these tools that you talk about.

the last few weeks, i think we counted up more than a million hours of video conferencing going on we have hundreds of thousands i think at any given time, given our global workforce over 200,000 vpn connections coming in, so all of that is going to become sort of the way we will all get work done over the next few months not just us, but our clients also in addition to us and how we work with them. we're already seeing that this is resulting in people adapting and as they adapt to this new form of work, we find they're going to be productive and they're resilient. i especially enjoy as all of that workforce is getting productive they haven't really missed a beat in our delivery to our clients and the services they provide and all of their interactions and in how they get work done. when we look at the usage of

a.i. and cloud, i think it is especially going to accelerate also not just us, but how our clients are going to go on the digital transformations and this -- i believe this crisis is only going to accelerate that as we go over the next few months >> i want to ask you about changes. you have outlined some, you put out a letter to employees this morning where, for example, jim whitehurst is president at ibm now, leading corporate strategy, but also bridget is going to be senior vice president global markets, paul takes over jim's old role at red hat, bringing over an executive from bank of america to run cloud, butwhat' the timeline on you telling us about further changes? whether they're going to be structural changes maybe you're not going to do that now on your first day in the midst of this pandemic but what should we expect as the year progresses?

>> look, i've been quite clear and you referenced the letter, there are two fundamental journeys our clients are on, the journey to harbor cloud and the journey to a.i with jim whitehurst's announcement and howard's announcement, you got the assets, in addition to strategy and leading cloud and being a new member of the team as we take these assets forward, bridget has a wonderful empathy with all of our clients and a lot of expertise in industries and in providing these services to our clients, so you can see that that is being put in place over there this combination is going to allow us leveraging the red hat technologies because we believe as people embark on the transformation to cloud there will be an architectural war and that war we believe the winning

architecture is going to be lynx and kubernetes as we bring the red hat portfolio with paul into what jim and howard build to provide to our clients, deliver in place by bridget, this is going to be a huge, huge victory for us as we go both into and emerge from the current pandemic now, you also asked about structural changes structural changes will come about in response to performance. as we look at what's happening and how our different units and geographies perform, that's how we're going to react as any business has to in order to both be strong and be able to emerge stronger from this current crisis. >> i love how you got right down into the gears of the business right there. let's keep talking about it because you did point out artificial intelligence as being two areas you said you need to, quote, deepen our understanding.

hybrid is and a.i. crowded fields right now google is trying to say the same thing with anthos pushing that message. what are ibm's key message that you think allow you to beat them there? >> yeah. look, i think i go back to what is the correct word i think sometimes, a market needs more than one player to form a market i think we came out about a year and a half ago, october of 2018, and talked about that hybrid is the way that people are going to be able to go from going 20% into the cloud for the remaining 80% and that's based on the mission critical nature of the work that is left to do. it's not work that is easily isolated and done. so it's no surprise to me that many others are coming after the hybrid market, given that's where we believe the money is by our estimate over a trillion, $1.2 trillion per year worth of

opportunity. what are our special assets? if i go into -- people accept lynx is the operating system to be the majority of the system. containers is the way to exmotor the portability of workload as well as the right ones anywhere, depending on where it's appropriate be it private or public cloud and kubernetes is the way to bring a lot of complexity reduction of simplicity into how you get the work deployed. we believe that with red hat and ibm, those three pieces are the correct architecture to succeed and with the number of people we have working in both the upstream open source as well as hardening those technologies into products that can be easily consumed by the enterprise, those are some of the special kind of the special sauce we bring to the mix but then even if you have all of the technology, many of our clients are going to require

expertise to help them, which of the applications should i migrate, which ones should i modernize, where is the return in terms of those applications that they need to scale up and down and give me greater intimacy is with all of my clients. we bring a lot of expertise to do that with our services team and help our clients run the new infrastructure in a much more effective and efficient way than they could providing both resiliency and modernization with the cloud. >> arvind, put the past in perspective for me so i understand better the future that you want to head to i know that you and certainly others at ibm have said ibm doesn't get the credit yet that it deserves for the work that you are doing in the cloud, but tell me over the past couple decades, i'm sure everyone would admit that ibm has not led in the cloud, at least initially, the way that you wanted to what were the mistakes, the things that ibm missed in the

past, couple of cycles that perhaps were reflected in the stock not doing what investors might have wanted it to and how do you do something different over the next cycle? >> look, jon, i'm not actually going to dwell on the past today. we are in the middle of a global health crisis and we're going to focus on our employees and clients, i have to say that as a paramount thing we have to get done that said, we're going to help our clients through this crisis focusing on what are described on both hybrid cloud and a.i i believe that will allow us to emerge even stronger from this crisis and then, since hybrid cloud is the way of the future, is going to allow us to use both those technologies and services to grow going down the road. now, by the way, as i said, cloud we're only about 20% in. as i look at a.i. the world has

only exploited we believe 4% of the potential productivity of a.i. that's a long ways to go building both the assets and the services to be able to help our clients do that, gives a lot of opportunity. you heard us use the -- watson and the way watson is really helping in this current crisis, i think it's a great proof point. watson assistant for citizens is really making a difference, being used across many states, california, texas, new york, georgia. i mean really quick example, the children's hospital in atlanta, we are using watson assist tonight conform to the hospital's guidelines but do a pediatric assessment the number of parents calling would overwhelm the medical staff. to take a thound sa of those into a digital assistant but sticking to the guidelines to do a quick assessment of is more help needed or not, is something that's a great, great example of

how a.i. is going to be able to help in the crisis and paints a picture of what we can do post the crisis also. >> finally, arvind, a number of companies have talked about the need to have assets closer in the united states vult of this crisis over the past several years ibm has done more global expansion and moved a lot of jobs in other areas around the world do you see ibm or growing more in the u.s. as a result of this crisis or no >> jon, we tend to follow wherever we can find talent and skills so we hire or have been always hiring tens of thousands of people a year. it's based on where we can find talent for the right skills. it's not a question of globalization or going to any specific location. the ability to do remote work has been a fundamental part of

what we've been doing for 20 years. if we have a great pocket where we can find talent we're probab probably going to go there and do that. whether it's the top universities in this country, the universitiesin europe, worrying about people which we call new collar, are able to go off to the skills we don't need a college degree per se and we'll be hiring a lot of those you heard us talk about the schools in the past. where do you need advanced degreeses, where do you need people with a little more than a high school education and go to the pockets where you have enough people who are able to be employed >> what a time to be starting a big job. arvind krishna from ibm, we appreciate you giving us the time. >> thank you, jon. my pleasure. >> look to talk to you soon.

morgan >> jon, that was a great interview. thank you for bringing that to us ibm stock is up nearly 6% on today's broader market rally as well meantime european markets are set to close in a moment and seema moody has the breakdown of that action overseas >> morgan, early signs that europe is turning a corner with the number of cases rising at a slower pace in italy and france suggesting the quarantine measures including social distancing are working some nations like austria looking to ease those measures following a decline in cases the chancellor saying the nation is cautiously planning to open smaller shops after easter and larger stores and malls like hair salons by may eu finance ministers set to meet tomorrow to construct a rescue package for european nations despite opposing views from german and french ministers, on the table easier access to loans for small and medium-sized

businesses and eu wide insurance scheme and a fund to promote investment and reconstruction. back to the markets, best performing transports and travel rolls-royce scrapping its financial target and dividend to shore up some capital as demand for engines has waned with more airlines canceling flights back to you. >> all right seema, thank you very much let's get the latest on the coronavirus outbreak we go to sue back at hq. >> good morning, carl, everyone. the white house economic adviser larry kudlow says the administration has been discussing ways to pay for the fight against the coronavirus. >> this is a time it seems to me to sell bonds in order to raise money for the war effort, in this case the pandemic effort, in this case the effort to keep families and individuals and businesses afloat. i am all for it. >> hilton and american express are donating up to 1 million hotel room nights across the

u.s. to frontline medical professionals including doctors, nurses, paramedics the offer begins next week and will run through the end of may. a tiger at new york's bronx zoo has tested positive for the coronavirus. the zoo says six other large cats are showing symptoms, including a dry cough. the chief vet at the zoo says the positive tests surprised everyone all of the cats are expected to recover. as always for more on the coronavirus coverage you can head to cnbc.com but carl, it's being watched carolly becau carefully because we did not know before this whether the virus could be spread from humans to animals or animal to animal it's a test case here in our backyard >> we're going to watch that one closely. thanks very much sue herera the president did warn yesterday he could impose substantial tariffs on oil imports. take a listen. >> if they don't get along i would do that, yeah. i would do tariffs

very substantial we're independent vand our oandr own oil. if i did the tariffs, that would help to save an industry >> for more on this let's get to brian sullivan who has a special guest this morning hey, brian >> good morning. we do. let's bring in harold hamm, the founder and executive chairman of continental resources at the meeting at the white house on friday harold, it's a pressure sure to speak to you again do you believe the president, he says he will do them, do you believe ultimately we will tariff imported oil into the united states? >> the president sure has that authority and a lot of authority. we'll just say in his toolbox, he can ban their oil there's a lot of things that the president could do certainly tariffs is one of those. he very well could use that.

our industry had a double whammy first of all with their dumping their product at a very inopportune time how atrocious was that timing into the market just as this covid-19s is sweeping the globe. we've had covid-19 plus a dumping. the president has taken sure action on this and they promised it will stop and we'll see if they do it. >> the saudis have done something unusual, harold. yesterday, they delayed announcing their selling prices for oil for the month of may effectively maybe a feather out there, some kind of peace offering did the president indicate that he believes that the saudis and russia can make up their differences and that u.s. producers will also come together and we will be able to get a 10 to 15 million barrel per day cut done globally?

>> absolutely, brian you know, i think their numbers are exactly right. they've done the math. they knew that between the saudis, russians, that cutting 10 million barrels was exactly -- we've had a 30 million barrel demand cutback. that's what's happened so if you took their production together 21 million barrels, and multiply by 30%, that's 70 million barrels plus the 3 million they recently added, that's 10 million barrels. the rest of opec cutting another 5, they knew the math and that's exactly the numbers that they should cut they're right on i believe they'll make those cuts they should -- they're going to have to shut in. we know that because there's not storage capacity in the world to handle it anyway. >> harold, it's carl

once there's some kind of resolution on imports, on russia/saudi, how do oil companies domestically think about debt differently how do they keep it from being a key point that makes them vulnerable into the future >> well, we are vulnerable into the future and that's something to be considered and, you know, we all have some debt, most of us do at least, and so ours is out two and a half years almost through the next, but we all have some debt that's out there. we hope this is long gone before that examines due. it's something to think about. we need access to the financial markets like we've had in the past and we need to cross that bridge, carl >> harold, this is morgan. i wanted to get your thoughts, you talked about and touched on the storage piece of this and obviously oil is in containers

right now. for those that can get their hands on storage and keep it there for a longer term that seems like a viable option right now. as we see that capacity fill up the u.s. government offering the strategic reserves 30 million barrels worth of capacity is that going to help alleviate the stresses in this country >> it won't be enough, morgan. you touched on an important point. that's good that the doe is doing that, leasing that out to the industries, a very good solution here for a little bit 89 million barrels, that's less than a week's production operators are shutting in production don't get me wrong we're doing it every operator is cutting back production quickly. we're going to have to -- that's

just what we do. >> harold, it's brian again. sir, you talked about a 30 million barrel a day demand cut. we'll talking about 10 million a day. that's an additional 20 million. outside what morgan referenced how soon will we run out of oil storage in the united states and do you believe that negative prices, in other words you pay me to take your oil, will come if we reach that point >> brian, that would be the case if people didn't have the ability to shut down production, but we do have we've done that before we did it in 2008/2009 we've done it at other times when demand was low. that's what you do you take it off line and yeah, storage will it fill, it might take 30 days to fill it, but it gets full quick. you just take the pressure off

the purchasers and start shutting production and take it off line that's what we all do as operators. that's the way we manage through this >> but it is tough, though, harold, i think there's a misunderstanding, i get people that write me, i'm sure you hear it and people say why don't we turn off the tap, so to speak, there are 9,000 oil producers in the united states. some of them are like a family with one well the their backyard, the continental to exxonmobil explain, though, to our viewers why it's not just that simple. it is expensive and can be environmentally difficult to cap a well or completely shut down production, can it not >> well, first of all you don't cap them you know, you just, you know -- if you got a two barrel well you fill up your tanks on locations. you turn it off for a little while until demand comes back and then you sell your oil that's what you do

you have field storage and we have a lot of that and then you have storage in kushing and oil and ships and barges and things like that, international shippers do. all those things eventually you fill storage and you shut down production so you don't cap wells you know, if you did that, that would be very, very expensive. you take off the highest cost production and then, you know, you shut down what you have to we keep some going we still got 70 million barrels a day of demand, approximately, that's left. diesel is still selling good all the trucks are running. you just don't have airlines flying as much that's down 50%. gasoline sales is off as well.

eventually the storage gets full of product >> all right it appears some of these feeds there, listen morgan and carl, we're not perfect. everybody is doing a great job harold made good points. i saw data this morning, gasoline demand in america is down 50% basically it's just trucks that are out there, truly a stunning time we have scott sheffield of pioneer on "fast money" tonight asking texas to demand, morgan, ta they limit output kind of a mini opec in texas if you will the irony is not lost on people. >> yeah. certainly texas has emerged, i know you've been reporting on this so closely, brian, as a hotspot in terms of the regulatory debate around whether a state like texas, whether the country should step in terms of curtailing production around the u.s.

great stuff. thank you for bringing it to us. we're going to take a quick commercial break and a check on the markets as well. the s&p above 2600 the dow back above 22,000. we're at session highs right now. stay with us - [spokesman] if you've tried college but never finished,

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welcome back breaking news on carnival and the cruise line company. let's get to seema moody for the latest >> just looking through a recent filing the saudi sovereign wealth fund disclosed an 8.2% stake in carnival the cruise line operator which has suffered as of late as sailings have been suspended with this 8.2% stake, this would make the saudis the third largest shareholder in carnival the first time i believe they've invested in the cruise line. it makes for an interesting time given the losses they have seen related to wework investments as well as the sharp decline we've seen in oil prices on this news we're looking at shares of carnival up about 21% on the day

this has been a volatile stock if you take a look at a year to date chart sitting on some big losses but a big move in today's trade. morgan >> seema moody, thank you for that update. medical tech company beckton dickinson ramping up efforts to test for the coronavirus joining us is -- on the phone line is ceo tom polen. thanks for being with us today >> thanks for having me. >> so you're working on several different tests with several different companies as well. i think first let's start with the work you're doing with biomedomics on a test to detect current or past exposure to the coronavirus within minutes and could be used in doctors offices and other settings tell us a little bit start to r and be used on potential

patients >> sure. so we have two -- a whole portfolio that we're watching. the first is to help diagnose coronavirus and that we're shipping today and the second is that we'll begin shipping this week the test that you mentioned. it's a simple finger stick, drop of blood on to the test strip and in 15 minutes determine whether or not a patient has built immunity to the virus and therefore no longer as susceptible to infection and risk so still to be determined how that test will be used broadly there's a lot of discussion around it being used as a screening test to help people get back to work we'll see how that evolves over the coming weeks >> then on friday you announced you did receive approval from the fda for another test you've been working on as well for hospitalsthat would reduce results on whether -- produce

results on whether someone has coronavirus in under three hours. what's notable about this is the fact that hundreds of hospitals across the country have the infrastructure in place to be able to start using this test. talk to us about that one. >> yeah. that's on our max molecular platform that's used to help determine does someone have the virus. it takes about two to three hours to run that. we just got emergency use authorization last week and are shipping that to hospitals around the country we actually just filed for a second test as well that will go and further expand our capacity. one of the things that's unique is we have tools being used in both discovery on how the immune system responds to coronavirus to get the right treatments out there. obviously we've got a suite of products now used to diagnose coronavirus and determine if someone has immunity the last areas we have a range of products from infusion pumps to iv sets and other solutions

used in the treatment of coronavirus. so working across the whole health care spectrum to help combat this pandemic >> tom, jon fortt here good morning last hour we had former fed chair janet yellen on and she was talking about how critical it is to get people back to work as a way to get the economy going again when it is safe and how testing is going to be an important part of that it seems to me like this test that you've talked about that's going to detect antibodies would be a key part of that because if people have already been exposed, it's more likely that it's safe for them to go into an active workplace, get back to work but we would need millions of tests it seems how quickly can you scale the production of this test and how widely will it be available? >> yeah. we'll be shipping beginning this week we have the capacity to produce millions of those tests per week and can ramp that up even

further. we've seen countries in europe already begin discussing cards for people that would indicate that they have built immunization and can go back to work we'll see how that evolves in the u.s. we see that concept you mentioned starting to gain traction around the world. >> to that point the uk government today admitted that none of the 17 million antibody tests they were going to order and send home maybe worked well enough to use because of the high number of false negatives and false positives. how -- what can you tell viewers about the reliability of all the tests that we're looking in terms of providing reliable results? >> yeah. i can't comment on other technologies that may be out there. we certainly validated the products we sell and are comfortable in that. i would say that test quality has gone up over the duration. we know, for example, that the

tests that we're selling today are multiple -- than some of the other technologies available to detect coronavirus that's probably true across the industry, that things are more robust as some of the more advanced technology in the market now >> tom, just to dig into the testing process and how that's unfolded in general, there have been a number of reports out there discussing and dissecting and analyzing why it has taken so long for widespread accessibility to test here in the u.s. specifically. do you feel like it has taken a long time and what are the lessons that can be learned from some of those delays we saw early on that could be put into practice for future situations >> in a situation like this, of course it can never be fast enough that's the first thing that we have to recognize. so when you step back with what normally takes years to build

these tests and get them to the marketplace, as has happened in a matter of weeks, i think what you saw the white house enact back on march 13th, i was at the white house meeting with the staff there along with a cohort of executive you saw the public and private partnership come together. the number of tests being run up across the country and we're seeing every week now the number continues to go up in a very notable way. we can apply it going forward. >> do you see this -- when this is available at scale, that it's something we will administer to ourselves at home?

is it the e kwif lenquivalent oa pregnancy test or will we have to get in our car or go to a clinic hospital at scale >> i expect lit be done in fashion office do faa finger stick to test for glucose. it goes into a test. it looks similar to a pregnancy test extremely easy to run. takes about 15 minutes we have another in our pipeline that will diagnose coronavirus with the same ease of use in about ten minutes. that still is under development. it is very cinch i want does only take 15 minutes. >> thank you for joining us

today. time is of the essence we appreciate you breaking down the latest on some of these tests and diagnostics offerings that are coming out right now. thank you. >> the dow is up the s&p and nasdaq up 5% every sector is in the green in the s&p led by utilities and materials. every component in the dow is also higher led by american express and ratheon technologies we're seeing this market rally as we have seen some of the cases and the data within some of the hot spots like new york, like places in europe, like spain and italy. we have seen some of numbers start to come down a little bit. we had the u.s. surgeon general

say this is pearl harbor week. this could be the hardest, saddest week it's one that americans need to hunker down and buckle their seat belts for as we peak in soc some of these places like new york >> we'll hope so we're going to listen to the briefings we get especially out of new york. a lot of these alternative data models are suggesting that new york could be within days of peak hospitalization which is why i thought that ibm interview was so key >> yeah, carl. it's so difficult to look at the market and figure out what really matters at a time like this the toll on human life, of course, is primary you do hope that we get to a peak soon. we got to come down then on the other side and continue to take precautions. it's useful to hear from people

like tom just now about tests that could be in the market that would help us to have more confidence and assurance on what happens next in getting the economy going again in people's livelihoods saved one their lives are saved again. we continue to track it. >> yeah. it's already been a remarkable morning of news in ibm to starbucks. we'll take a quick break and contueurin o coverage. squawk alley is back in a moment times, 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. aand we're here for you -ry day fespecially now,rs.s clear, doing everything possible to keep you connected. through the resilience of our network and people...

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welcome back let's get to rick in chicago >> thanks. i'd like to welcome my guest,

johnny fine. he's one of these guys at goldman that really understands the corporate market and alls i'm going to say is if the fed builds the policy or a program, usually investors and especially supply will follow hot, hot, hot in corporate lands won't you tell us what we're seeing >> we have seen $290 billion of supply in the last three weeks 290 billion is a pretty good quarter in our market. to get that done in three weeks especially with almost all the financial ecosystem working from home is pretty remarkable. >> yeah, it really is remarkable johnny, the fed really hasn't put one penny into any of these corporate programs yet and we still are seeing close to 530 billion year to date supply. what's driving this? >> i think a couple of thing s obviously, the signaling impact of the fed using investment grade credit as a policy tool for the first time in its

history, is immensely powerful there's one other part of what happened on march 23rd that i think also was critical. that is effectively the fed movmov moved to qe unlimited. what that did is that stabilized the treasury market and allowed liquidity to flow back into the treasury market. prior to that there had been real concerns about liquidsty. if investors are challenging the liquidity of our market, how can we ask them to take risks. >>onn oo ojohnny, if you were t view who are is small to mid size investors how should they deal we learn fed from the ecb, the backside of that is sometimes

these programs end or run of of gas or the fed loses the abilities to hold up markets. >> i'd like to see those come online i think that can ignite the next stage of the rally in the corporate bond market especially the lower end of our market and the less liquid elements of our market too >> excellent thanks for joyour thoughts. we all wish these could turn on their own. thank you for your thoughts

today. back to you. >> some headlines that registration for the commercial paper funding facility begins today and the purchases will begin on the 14th. we'll watch for that as well thanks, rick let's goet to the half and the domino >> thanks very much. our breaking news coverage continues. welcome to the show. front and center this hour stocks soaring on optimism about slowing death rates and cases from the coronavirus in key world hot spots including right here many new york our investment committee is here today. let's get a check on markets you can se