during the month of march. retail sales, industrial production and banks not helping. we're going to start with fill lebo and the ceo of american airlines, doug parker. good morning. >> good morning. let's bring in doug from the headquarters of american airlines in fort worth, texas. you reached an agreement in principle with the treasury department on the payroll grants for $5.8 billion how much will this tide you over to make sure that the payroll can be met, so to speak? >> it's great news for america, our customers and team, and the industry the last time i talked to you we were in the middle of negotiating this, and we went through some tough times in getting through it, but we're just elated to have that behind us it's incredibly important given where demand for air travel is right now and we're extremely pleased that the government has

recognized the importance of the airline business and our retaining critical service and keeping our team employed. it's extremely important and great news. >> doug, you already said you plan to apply for a loan from the treasury department in the over $25 billion bucket that's been set aside for the airline industry beyond that, do you expect to have to borrow more in the months ahead from the private market in order to continue to fund the operations the way you want to have them funded >> that's unclear, phil. it depends so much on how demand recovers, when demand recovers and how quickly. what i know is this, we as an industry asked the federal government for $50 billion of assistance, that's what we got, $50 billion of the assistance. that's what we believe we need to assure we can ride through this clearly you can go to more dire circumstances than -- where it

stays like this for an extended period of time, but from our own projections it stays like this through the second quarter, a gradual recovery through the third and fourth quarters, this will be sufficient >> my next question, yesterday the tsa screened a record low number of people at airports in the united states, just over 87,000 do you believe we're close to a bottom here? more importantly, how far out will it be for you guys to say we're starting to see bookings increase we're not seeing a v but we're seeing an increase is it six weeks out, eight weeks out? when do you sense you'll get a sense of okay, people are starting to fly again? >> a question we all want to know the answer to i don't know that anyone really does know. as to your question, are we at the bottom it feels like we're at the bottom our revenues are down 90% on a

year over year basis and they've been that way for a few weeks. so the real question is how long do you stay at the bottom, and when do we begin to recover, i don't think i know that better than anyone else that depends on when our country moves again, when people feel comfortable, when disney land opens and shelter in place is lifted what i know now is we're prepared for whatever recovery it takes, which is extremely important. i will say in the last week we started to see bookings outside of 90 days tick up a bit those could be changed in the future, that doesn't seem to be the case but it seems to be an indication that maybe our country is getting moving again. our sales team tells me we're being asked to work on conventions in the fourth quarter. that isn't going on in the second and third quarter so there are indications that the world is ready to start traveling again, but they're very preliminary and it's not

happening today. we're prepared for when ever people are ready to travel again our team is in place and ready to take care of them that's what's important about this act, it ensures that our team will be here ready to take care of the flying public when they're ready to return. >> doug, morgan here, it's interesting to hear you say that, we had the ceo of carnival on yesterday and he said they're seeing booking activities in 2021 begin to return in the near term, given the fact there is so much uncertainty about what this recovery looks like and when it truly takes hold, in terms of some of the other levers you're able to pull with your business we had more 737 ma cancellations reported by boeing yesterday. are you scrapping purchases, be it that aircraft or others in the meantime >> what we're doing instead is retiring older aircraft than we

would have we have some -- we have the youngest fleet of the major airlines we do have some planes we were planning on retiring, so we're going to accelerate that process so we'll come out of this with a smaller fleet than we entered and smaller we expected to be flying. but at this point, the new airplanes scheduled to m come, they're great aircraft, they'll replace some of the airplanes leaving and we don't have any intention working with the manufacturers to defer or cancel any of those orders. >> it's dominic, i'm in studio right now, i'm one of the handful of americans getting some semblance of normalcy in their lives, i have to commute to work, i have too fill up my gas tank, i'm paying less for it these days oil prices are down over the course of the past several months right now, how does it make universal as an airline executive knowing one of your

prime costs is as low as it is right now and you are not able to take advantage of it, how do you plan for the fuel costs going forward as well? >> yeah, look, it's certainly emile rates the problem but not in a significant way when we don't have 90% of the revenues as a result we're flying only about 20% of our schedule. but looking forward, you know, we look to the forward curve we look to demand for oil and what i do believe is if this is a very slow rebound, you'll see oil prices not increase at a very significant level i think that will help that's not the real issue for us the real issue is revenues and a return of revenues but oil prices at these levels do help mitigate the problem a little bit. >> doug, it's phil again you and i talked about this i want to say two or three weeks ago and we were talking about what it takes to get people flying again, in addition to the other stuff involving the

economy. you said it, it comes down to making people comfortable to get back on the flight you're doing things like spacing people apart on aircraft, leaving the middle seat open as much as possible do you expect other steps to be taken? not only by you guys but by the industry, in terms of do we hand out masks at the gate for people who want to wear a mask? what other steps do you sense may be needed as we work through this period of social distancing, yet getting back to our normal lives >> yeah, thanks, phil. what we know is, as has always been the case, people need to be safe when they travel, and that's certainly the case today. i was out thanking the team last week and had me going from dfw to chicago to philadelphia to charlotte and seeing the team. and i can assure you today there's more than enough room for social distancing on airplanes. we're making sure that's the case by blocking middle seats,

doing extensive cleaning of aircraft, fogging of aircraft, things i expect you'll continue to see, and as customers return we'll need to make sure we're doing what they need to do to ensure they feel safe on the aircraft we aren't seeing people not fly because they're worried about safety on airplanes, i don't believe. there may be some of that. the reason people aren't flying is because they're not leaving their homes and corporations aren't having people come in to work once those things happen that's when demand will recover we'll make sure when demand recovers our customers feel safe. >> doug, do that point, it's carl, when they do leave their homes and they're ready to fly, will there be a structural change in seat configuration, pitch, will we be looking at partitions have you done any modeling as to what break even loads look like, if you put fewer people on the plane, what happens to the

ticket >> questions we can't answer just yet i know today there's more than enough space on the aircraft we are today blocking middle seats. as demand recovers, we'll all be forced to deal with those issues i don't think anyone is looking to take seats off the aircraft at this point, but that may be the case but for right now, we have -- we're doing social distancing on the aircraft, making sure the aircraft -- extensive cleaning, those things i know will continue for the foreseeable future as demand rebounds to a point that becomes harder to do, we'll have to figure out what we all do in regard to customer demand. but what i know is, we fully recognize that customers need to feel safe when they travel, that's always been the case, we'll always make certain that's how customers feel >> doug, there's reports that are emerging that u.s. airlines are asking faa for permission to

fly cargo in the main deck where passengers would normally sit, including the option to remove some of those seats. is this something american is looking to do, at least in the near term? how would that offset some of the costs? air cargo is where we're seeing shortages on an international basis right now. >> we're asked to do some of that, we're doing it as much as we can it's one of these things that's helping to mitigate, modestly, the drop off in passenger demand we have a lot of wide body aircraft not flown internationally, of course so we're using those through the state department to help get americans back to the united states and also move really important cargo, medical supplies, ppe, other things that we're being asked to transport so it would help in some cases if we could remove seats and have cargo travel also, not just in the belly but in the

passenger cabin. we're waiting for faa approval on that. hopefully we can do that because i think it would help us help others >> doug, this is phil again. which are you expecting to come back sooner, if you will, or do you think that happens at the same time, the leisure travel or the corporate travel and which -- i know you're concerned about all of your business but are you more concerned about one or the other at this point? >> phil, i don't know. i think they come back -- i think they come back at about the same time. again, the corporate travel will come back when corporations decide that they need their team out on the road again. that certainly isn't going on today. so that will come back there's absolutely pent up demand for that type of travel so i know when that will come back the leisure traveler will come back when they feel comfortable traveling. i don't think it's about being on airplanes, it's having somewhere to go. the leisure travel is going to

come back when hotels are open, things to see, when you can go out to restaurants so none of it is going to come back until we get further through this crisis. and people feel more safe being around others or even just traveling. we're prepared for that, our team is in place for it, we're going to be here when people are ready to travel, i couldn't be more proud of the team, they're out flying today they're heroes in this they're taking care of customers that need to fly, medical professionals getting to people that need care, people that want to get home, carrying precious cargo around they're real leheroes here and ' excited we'll be able to keep them all employed through a period we wouldn't have been able to if the government had not acted. >> you're not the only ceo who has little clarity about what's going to happen in the future here i'm curious, as a ceo of a

massive airline operation, what part of your business do you feel you have a picture on, where do you think that american is best positioned, and where do you think it can execute well given that 90% of your business is down year over year >> first and foremost, we need liquidity to get through this, that was the biggest uncertainty facing us and all airlines that now has been resolved so we feel very good about this. we definitely are looking at, as we go through this, ways we can come out even stronger figuring out how to be more efficient as we come out we're obviously eliminating a tremendous number of expenses at this point in time and we'll be very careful about what gets added back we are indeed retiring aircrafts sooner than we would have retired them otherwise that allows for a better product, much more efficiency within our system. it allows us to come back gradually instead of bringing everything back at the same

time so there are a number of areas and we're moving our attention to that point to when we come back that we want to come back even stronger, and an even stronger competitive position than we were before but we needed to make sure we could get through, and now i know we can >> doug, they say that beggars can't be choosers, but restrictions on buy backs, dividends, executive comps, do you see those limiting your flexibility operationally, financially in the year to come? >> they're conditions we were happy to accept. if you find yourself in need of government assistance, i think it's fair to say that until you've -- until you've paid off the loans, for example, if you choose to take loans that you don't have stock buy backs you don't do dividends, that the money doesn't flow to your executives, so you have

restriction on executive compensation we need to figure out ways around those but those are fair things we're asked to do and we're not complaining about them >> doug, it's phil one last question from us and then we have to let you go this has to do with the fact you're going to be applying for more loans from the treasury department, you'll put in the application this week for $4 billion, are there any terms, curve balls you expect because during the grants you were not expecting that 30% would have to be repaid to the treasury department, what's your sense in terms of what the terms will be from treasury on those loans >> first, let me say, while we were in negotiations with the treasury department and what we thought was most fair, i think they've been exceptionally fair on this. they're working day and night to try and get this country moving again and making sure it has the liquidity it needs, not just for airlines but the entire country,

they've been more than reasonable, including the 30% to the extent they want 30% of the grants repaid, it's repaid through low interest loans over -- unsecured low interest loans over a long period of time, we appreciate that they also were careful to make sure as we've been going through this process for the payroll support payments to give us guidance, at least indications, as to how the loan process will work, which has been very helpful. based on what we've been told so far, what we believe the case will be, our application is not going to require much more information whatsoever, they have what they need to do the analysis they need to do on the loans. so i feel quite good we still have work to do, but i feel quite good they'll be reasonable in this case too. loans again that will be at rates probably higher than we paid before the crisis but much lower than we could do in today's market to make sure that the taxpayers are being paid and

also we have the liquidity we need to take care of our customers and take care of our team >> all right doug parker, ceo of american airlines, thank you for joining us phil lebo, thank you for bringing this to us. >> thank you >> we're going to head over to sarah izen who brings us the managing director of the imf >> good morning, the imf and world bank are hosting their semiannual meetings today virtually for a change where the world's central bankers and finance ministers are gathering in this moment of crisis i want to welcome the host, director kristalina georgieva. nice to see you. thank you for joining me >> nice to be with you, thank you for the invitation >> you just stepped off the stage where you were giving a news conference and in your final appeal to world leaders you said, everything is on the table. what did you mean by that? >> well, it means that we need to follow the development of

this crisis and be prepared to do more if that becomes necessary. right now the imf, thanks to the shareholders' wisdom is standing strong we have $1 trillion lending capacity, just as a reminder, prior to the global financial crisis, it was four times less it was $250 billion. and that quadrupling our capacity really makes a difference today we were able to immediately deploy emergency financing, actually double access for our members, so 102 countries knocking on the door of the imf for lifelines can obtain, rapidly, financing and i'm proud to say that despite the fact we are all working from home, within one short month, half of this

request will have been approved, already 15 countries have received funding so they can pay doctors and nurses and they can protect the households and firms in this very critical moment of course -- >> you said 100 -- >> 102 >> i want to clarify 102, that's half the world has come to the imf for bailout? >> yes yes. yes. and i can say that what many speak about that all going to the imf, it is with very difficult, tough conditions. not the case this is an emergency like no other. it is not because of bad governors or mistakes that countries are faced with such a dramatic challenge in front of them and for that reason, what we are doing is, we are providing funding very quickly on the

basis of rapid assessment of conditions in every country. and we are asking for one thing only please pay your doctors and nurses, make sure that they are -- your health systems are functioning and that your vulnerable people and firms are protected. and please keep the receipts so we can see how many has been used and, of course, encourage accountability and transparency in this crisis >> you made a ton of headlines when you put out the prediction yesterday of negative 3% economic growth for the world. deepest recession since the great depression that one, as you know, lasted a very long time, about a decade how long do you see this one lasting? >> well, the projections we are making depend very much on what epidemiologists are going to tell us.

it is actually first time in the history of the imf when epidemiologists are as important as economists for our projections. provided we see within the first half of the year retreat of the epidemic, provided that measures to contain it are successful and we see a rebound in the second part of the year, next year, they would be a bust, actually minus thr minus 3% this year, plus 5.8% next year. but don't get fooled by the big number we would still be below 2019 even if this projection materializes that could be worse if the virus is going around the world and takes a double trip, or if vaccine and treatment are slow to come. it might get worse it might get worse we are really hoping that our

scientists will not disappoint us and we will have the ammunition to fight the covid-19 soon >> yes your unemployment forecast for the u.s., you see unemployment rate rising 10.4% for this year. and then next year, it looks like you expect it to only dip to 9 pn.1% which is still devastating unemployment in this country, does that mean you don't think the u.s. government's relief package goes far enough to keep workers employed and businesses running? >> we're very much hoping that the u.s. will continue with very aggressive response to the crisis as it has been doing so far. as we all know, the fed has been very strong in providing practically unlimited liquidity. the packages so far, the packages totaling 2.2 trillion

are targeted measures. they are providing lifelines to businesses and households already. i know that u.s. government is determined to do more so the economy can be shield and the recovery can be underpinned. but it would take some time because from -- it is not like switching on and off lights in your house it would take some time for the economy to regain momentum and this is why there could be a period of time when we are still struggling with unemployment and let's remember, there would be a great deal of human psychology in this, which we don't really know. when would people start feeling comfortable to go to restaurants, to go to the malls, to travel, travel internally in u.s., outside of the u.s.? that would have implications for sectors of the economy that are very labor intensive

especially entertainments, also restaurants. and that is the unknown of this crisis that we have never ever handled anything like this the novel coronavirus is really novel. we don't yet know the -- how we would come on the other side but we will come on the other side of it and i just want to do it -- to give you big shout out for the u.s. taking such decisive measures they're very important for the american people, but because of the role of u.s. economy in the world, they're very important for everybody else a u.s. that lifts itself uptakes up also the rest of the world. and the fed has been particularly focussed on opening up swap lines for emerging markets, because shortage of liquidity in emerging markets is

dramatic $100 billion leading emerging markets just in two months so we also see on the side of treasury, attention to investing in international measures, and we -- again, we count on everybody but the big economy, of course, plays a big role. >> sure. so you left a lot of sort of wild cards out there, as far as what the recovery could look like and whether you can even have a real economy with so much social distancing and not crowded sports arenas or movie theatres or restaurants. we're trying to look to china as a guide, because they were so -- they were ahead of us on this. how reliable is the data you're getting from china and how open for business is that country right now >> what we see in china, in this regard, is actually what gives us a bit of pause in terms of how different sectors of the

economy can be restarted we do see more upswing happening on the production side in the -- in industries, but less so in the services, where we are faced with this fear of the virus and the long-lasting psychological impacts that we probably would see everywhere in terms of our own projections for china, we have dig deep and we have taken data from variety of sources to come down to the conclusion that at this point of time, with all the uncertainty, that there is china's growth this year would dip to 1.2% with this dramatic drop vis-a-vis the predictions earlier in the year

for 6% growth. and what we also want to understand is, from the chinese experience, what actually happens in terms of the risks of reappearance of the epidemic and how that can be best handled but there are two things that are very clear from china, from south korea, from singapore, from taiwan, that it is very important to have a good picture of what is happening in other words, testing is very important, monitoring of movements of people that may be affected, very important and also very important to have some agility of measures in other words, be prepared for course adjustment if that is necessary. >> i wanted to ask you about europe because italian yields are spiking today. this crisis is exposing the

divisions within europe that we knew were always there, and there's this fight over whether they should have a common european coronavirus bond to help the weaker countries like italy and spain fight this it looks like they're having a hard time getting there. do they need something like that >> what europe does have are a number of institutions and instruments that are there for european solidarity. one is the european stability mechani mechanism. it is relatively well resourced. and it is the factor unionizing the response to this crisis up to 500 billion euros another one is the european budget, which is also an instrument for collective action and, of course, for euros own, there is european central bank

what i believe is necessary is to communicate clearly that it is a common threat and it does require common action. and i can tell you, being a european myself, having served in the european commission, that this is what european people want from their leaders, come together come together, help each other, help us. >> so it sounds like you are endorsing idea kristalina georgieva, we have to leave it there we're out of time thank you so much for joining me. >> thank you >> to talk through some of those efforts. the managing director of the imf. morgan, back to you. >> thank you so much for bringing that to us. it was great let's check where we stand on the major averages the dow is down 632 points or about 6.2%. a similar move lower for the s&p as well, back below 2,800 giving back the bulk of yesterday's

strong gains investors have a bit to digest today, more bank earnings, treasury yield slide and crude back below 20. stay with us heading in a new direction. but when you're with fidelity, a partner who makes sure every step is clear, there's nothing to stop you from moving forward. a partner who makes sure every step is clear, dad, i'm scared. ♪ it's only human to care for those we love. and also help light their way. it's why last year chevron invested over $10 billion to bring affordable, reliable, ever cleaner energy to america. ♪

good morning there is growing criticism of president donald trump's decision to withdraw u.s. funding for the world health organization bill gates tweeted this morning the move is, quote, as dangerous as it sounds clinical trials of

hydroxychloroquine are moving at warp speed, that's according to one researcher it comes amid hopes that we may know in the next few months if the drug is an effective treatment to fight covid-19. a new study from the harvard school of public health says that social distancing measures in the u.s. may need to continue until 2022 unless an effective treatment or vaccine is produced or critical care capacity is increased substantially. researchers note that secondary outbreaks will be possible through 2024 royal caribbean cruises slash u.s. workforce by 22%, more than half of the workers are based in florida. most of the reductions are permanent layoffs though they say some will be temporary for more coronavirus coverage head to our website cnbc.com when we come back, the nation's of the largest military ship builder, he'll discuss the impact on his company.

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welcome back let's bring in huntington industry ceo mike petters, the head of the nation's largest ship building company to talk about what they're doing to keep their workers safe amid the covid-19 outbreak and the effects it's had on the supply chain. thank you for joining us today. >> thanks for having us. >> i think a lot of the

conversation on this network and more broadly has been focussed on the different companies and industries that have been shut in, had to close down, had to idle their operations or send their workers to work from home remotely there hasn't been as much focussed on companies like huntington ingalls that has been categorized as essential infrastructure which means the company is expected to maintain a consistent, normal work schedule amid everything we're seeing play out more broadly in the economy right now. how are you keeping your workers safe, keeping production going, especially since in some places like newport news you have employees who have tested positive for covid >> thanks for that we right away recognized that the first thing we had to do to keep our employees safe was to give them flexibility to make the choices -- you know, their lives were going to be disrupted.

the schools were closing, family members were losing their jobs in other places so we needed to make sure they had plenty of flexibility. so we quickly implemented two protocols. one was, a liberal leave policy for folks to not have their absences count against them in terms of their employment. we basically told everybody that whenever this gets to the other side, you still have a job with us and you have latitude to maneuver to manage the situation in your life the second thing we did, though, was we absolutely changed our posture on remote working. we went from literally a very small percentage of folks who were not -- who were working remotely to now about 25% of the corporation is working remotely. and that's been a -- that's been a very dramatic change in the way we're doing the business and then the next thing we did was we connected -- i'm sorry?

>> go ahead. >> yeah, so the other thing we did was we connected with the cdc to make sure we stayed at least in step with where the cdc protocols were going to be for working in an environment where people had to work together. we identified places in our business where you can do ship building but you don't have to work standing next to somebody else we've seen this in other manufacturers, too, where there's a lot of open space. there's a lot of ways to reset the work so that people are not working on top of each other, and then in those particular cases where two or three people have to work close together, we stepped up the way we thought about those jobs and we gave the folks the opportunity to, like they always had, but we reinforced the idea, to raise your hand if you're not comfortable and let's rethink this till we get to a place that everybody is comfortable so the safe environment and the

flexibility is how we're getting through it. >> interesting to hear you talk about 25% of the workforce working from home, working remotely right now that's certainly significant for the other 75% that is showing up at shipyards like newport news, which is where you make the nuclear submarines and nuclear powered aircraft carriers and where there has been cases of covid confirmed among some of your staffers, how do you on keep morale up and how do you grapple with what i imagine is a hard decision, on whether to keep operations open or to potentially close them >> well, we -- the first part of it is to continue to be aggressive in terms of our safety protocols continue to look for ways to be even more safe than we were yesterday. i mean, the challenge for us is that we had about nine days from the time that we stood up our

crisis team to get prepared for this until we had our first positive case. and i think that our recognition from the very beginning is, closure is not really an option for us because there's not going to be, in my opinion, there's not going to be a scenario until we get a vaccine, there's not going to be a scenario where we're going to have no positive cases in the communities where we do work so we have to go figure out how we're going to do work where we have positive test results in the community and even in the workforce. and so, from the very beginning we've said, this is for the long run, let's make sure that we continue to evolve and innovate and find ways to work our way through that, and that's the way we've approached it. >> and then, of course, there's the supply chain which is very much in focus as well. when it comes to ship building, it's somewhat of a tenuous

change, something we've spoken about in the past, has been an issue even in the good times because there's so many businesses, many of them small businesses, in some cases talking about suppliers that are the only ones that can make certain types of components, how are you working with those businesses right now are they able to stay open and continue producing for you and what has that process been like? >> first of all, let me say, i think the pentagon deserves a lot of credit and in particular the navy was at the forefront of this, recognizing at the very beginning that not only are we critical infrastructure, but we also need to be healthy to go through this and liquidity was going to be a big issue, maybe not for a company like us so much, but for a lot of our thousands of suppliers they were going to be faced with that like a lot of small businesses. so they made changes to their payment rules. and the commitment on the part

of primes, like us, is that we're going to pass those changes in payment rules to our supply chain and what that's allowed us to do is we've been able to flow cash to our suppliers, especially our small and, you know, disadvantaged businesses, we've really been able to support them because there has been a change in the way that the government is thinking about how they pay and what that does is, as you and i have talked about before, we have several thousand suppliers in virtually every state. so we're actually putting funding into each of those local communities. you know, i would say at least as fast as any other sort of liquid sources could come relative to the work that they're doing. we're just able to support, i'd say, about two-thirds of our small and disadvantage

businesses last month in the invoices we paid, about two-thirds of that money was prepayment for work that's going forward. so it's a real economic -- that's a very important part of our mission here right now >> yeah, you mentioned the navy, which i know you work very closely with, given all the different types of ships that you're building. it had its fair share of controversy in recent weeks given everything with the "uss theodore roosevelt" we had the acting navy secretary resign recently, the third acting secret taking the helm since november given the fact we've seen all these leadership changes and shifts, how is that affecting your ability to do business with the navy right now? especially given the fact that we are in unprecedented times? >> you said it's unprecedented times but i would say that

working with the navy and working with the pentagon in general, most of that is an institution, they live every day as kind of a new day for them. so there's a lot of good muscles for how do you respond to these kinds of things, even if if you didn't see it coming so our relationship and our ability to work with the pentagon, and particularly with the navy, has been, i would say, superior the navy has a call every week where the ceos of the primes get on the phone with the assistant secretary and we just -- we talk about what's going on. and so the amount of communication we're getting from the navy, the amount of communication we're able to do with them has been a real plus here i'm going to single out, you know, secretary gertz -- as assistant secretary gertz for his leadership he was on this early, figured out that liquidity mattered, we

needed to change the way we make payments and expected the industry would respond to that, and i think by and large it has. >> mike petters, ceo and president of huntington ingalls industry, thank you for joining us today. >> thank you we want to turn your attention to the broader markets rite now, the dow industrials off by 665 points, the session low down 716 so we're hovering near the lows of the session the s&p off by nearly 3% the nasdaq in positive off by about 2% right now again, 18 year lows for oil prices keep it right here on cnbc we'll be back in two minutes (upbeat music) - [narrator] at southern new hampshire university we're committed to making college more accessible

by making it more affordable. that's why we're keeping our tuition the same for all online and campus programs through the year 2021. - [woman] i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer and i said, "look we can do this!" - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu. 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.

airbnb raising another billion dollars, its second raise since the coronavirus crisis began deirdre has more on that hey, dee >> you said it, carl

in one week two financing rounds a billion dollars each, a steep price tag on both of them. the latest a debt offering, carries an interest rate of about 9% according to sources familiar with the deal last week's round that was a mix of debt and equity, slashed the valuation to $18 billion, nearly half of what it was worth in 2017 when it last raised money that carried an interest rate of about 11.5%. what's interesting as well is who is buying into airbnb at a time when the pandemic is just ravaging the global -- the travel agency as well as airbnb. here's who it is, some of the biggest institutional investors, fidelity, t row price, wrack rock, silver lake, apollo and oak tree capital sources tell me that more wanted in this debt offering was

oversubscribed by two and a half times. airbnb isn't the only company raising debt to pad its balance sheet amid coronavirus and getting steep terms for it this isn't apples and apples but it gives you idea of raising debt in the age of virus.month, raised $600 million in debt at an interest rate at just under 8% wynn, $6.7 million slack, on the very other end of the spectrum, raising $750 million in debt recently, at a rate of just half a percent. the different, of course, guys, is that slack is thriving amid covid-19 while the other names are getting hit very hard. now, airbnb is probably far from over as it tries to bail out some of its super hosts and tries to give more of its guests refunds. so the pain certainly isn't over, but what this indicates, perhaps, is that some of these names, these investors are betting that airbnb are going to get through it back to you.

>> all right trying to build that bridge of liquidity. d., thank you so much. our deirdre bosa on airbnb watching the markets here, dow is down 630. oil just southf 50 o19 we're back in a minute shouldn't you pay less when you use less data? now you can.

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welcome back rick santelli live here at cme hq, welcoming vincent reinhart, 24 years of various posts at the fed and that's what i would like to talk about. welcome, vincent vincent, on april 9th, the fed tweaked its corporate bond buying program to include high yield, junk etfs they haven't used this program yet, but it's made a huge difference it's a slippery slope, including high yield what are your thoughts >> i think it was almost inevitable, once they said they would start buying ig. what happened when they

announced they purchased investment grade credit, not having even bought a single debt instrument yet investment grade did much better than high yield. and it was difficult to rationalize the difference between the two sets of yields in particular, how about those fallen angels like ford? they were just ig a month ago. why treat them differently so the fed, therefore, widened the perimeter of its camp and brought fallen angels into the fold well, how about next week, when politicians complain or there's problems in the oil patch? don't you think the fed is going to be under pressure to widen the perimeter once again you're exactly right, rick it's a slippery slope. >> now win talked to so many people in the junk bond, sell side of the business and they described the activity as heavy look, the activity was picking

up even before that april 9th tweet. i remember it was carnival and wynn came to the market and i didn't think the spread is as wide as it could have been why did the fed blink on april 9th? any idea i agree with you, i think the oil patch is a big area of junk we have to contend with, but it certainly looks to me as though bankruptcy has been written into many of our systems for a very obvious reason >> indeed. when you're thinking about the oil patch, some shake out and those valuable assets in the ground go into stronger hands, wouldn't necessarily be a bad thing for the longer term productivity of the united states why did the fed blink? it's difficult when there are so many obvious anomalies sticking out. in particular, the president of the united states views ford as an important industry for the national defense they're making ventilators and masks. why would you treat them

differently just because some rating agency in the span of a couple of weeks changed its judgment do you really want that critical firm to have problems financing? and so what we're seeing now is a lot of precautionary pre-funding, where firms with the stronger hands are getting the cash while they can. and it's going to make it more difficult for weaker hands >> i understand, vincent and we're out of time. of course, i'll be bringing you back quite often, as we continue to see that sometimes the fed may be overwatering certain sectors. thank you for joining me today carl, back to you. >> all right, rick good discussion there. our rick santelli. guys, it's been quite the morning session, with really very few things working, dom you had oil and the banks favoring the bears today obviously, the ecodata was abysmal. we did see some all-time highs once again on amazon and for a brief moment there, walmart.

so some of those winners continue to work >> you know, so carl, morgan, especially this, we've just been prepared for such bad, historically low headlines on so many different fronts. and morgan, the data just gets worse and worse. >> it does, but with that, i think we are done with "squawk alley," so let's get over to the judge and the half >> morgan, thanks very much. our breaking news coverage of the markets continues right now. i'm scott wapner good to have you with us this is the "halftime report." stocks, as you see, decidedly lower this hour. the biggest drop in a couple of weeks for the major averages some dreadful economic data today, combined with more earnings reports that is the narrow tiative now continue to assess the state of the economy, what all of this means now to your money. we'll discuss and debate it today with our investment committee. they are by my side, albeit, remotely, as always. amy raskin is the chief investment officer of chevy