breaking news, president trump and first lady have tested positive hours after test results from one of the president's closest aids came in positive. the president's doctor say both are doing well and plan to quarantine in the white house at this time. global markets are reacting to the news stock futures are down it is friday, october 2, 2020

year on "worldwide exchange" on cnbc welcome to "worldwide exchange," i am brian sullivan. thank you for joining us on this busy friday. shocking news breaking hours ago as president trump and first lady melania trump have both tested positive for the coronavirus. tweeting just before 1:00 a.m. eastern that he and the first lady will begin their quarantine and recovery process immediately. the news coming hours after hope hicks, one of the president's top aids also tested positive for the virus. monther details in a moment and throughout the morning stocks are reacting negatively dow down 328 points. let's take a closer look and you can see at the point where news broke as the president broke it

himself. they are still down more than 300 points the bond yield down as well. down .67%. all financial markets are moving oil is selling off in a fairly big way. not just on the president's news but on the increased number of cases around the world and the likelihood of lockdowns and slow downs in parts of europe and asia wti crude down gold is on the move right now. the flight to safety trade is on the move right now gold is not moving up. they are moving down everything very fluid. you can see they did pop but have now recovered down.

let's see how the markets are reacting julianna tatelbaum in london with global trade. >> thank you, brian. we did see asian markets higher. there is a holiday in the asian region so not every market is trading we are also seeing stocks trade lower. the move is contained. sto currently 2% lower and european investors taking this news in stride. u.s. futures have pulled off the lows of the morning after that initial steep knee jerk reaction that is a mixed picture when you look at the different sectors. hard to gather a theme from the moves we are seeing. you've got banks, construction, financial services, utilities

holding up best. all of those trading in positive territory. on the down side, we are seeing a bit of positive territory and retail some of those are getting hit harder this raises a number of questions around what may happen from here and how this may change the covid narrative moving forward equities are trading lower but moves are contained. >> julianna tatelbaum, thank you. let's get to washington, d.c. where president trump and first lady melania trump are quarantine after testing positive for the coronavirus the president breaking news on twitter just before 1:00 a.m. eastern time finding out the protocol now >> awful news for the president,

the first family and for the country with the president and first lady both testing positive we got the news around 1:00 a.m. we got an official statement from the white house physician's office saying the president and first lady are both well at this time they plan to remain at home during this time they go on to say he expects the president to continue carrying out duties without disruption while recovering that is the optimistic tone. white house officials have not specified whether the president is asymptomatic or experiencing symptoms we'll have to get more detail on. >> that as of now, the white house physician saying the president is quote/unquote well. as to what happens next, talked to an official overnight who said a procedure was always to keep him at the white house and

allow him to hunker down, limit staff access to him and of course very closely monitor his condition through the white house physician's office they will rely heavily on experts. due to the president's age, there is a concern that this could be a serious case. we'll wait to see and hope that it is not. >> so many questions let's begin with this. obvious li ho obviously hope hicks has tested positive do you know if he was tested prior to the debate on tuesday >> we believe he was we believe everybody was tested there. but you saw a number of people there without masks. we saw the first lady come on the stage at the end without a mask there will be concern now for joe biden and his family given

that they were in proximity to the trumps there was social distancing on the stage. both men as you saw were speaking loudly, which scientists can say can project we'll see what they have to say in terms of whether or not joe biden tests along with jill biden as well. this is a president who has mocked wearing of masks and said it is not necessarily important to him he's carried out rallies in large venues here is the sound bite earlier this week, the president mocking joe biden on that debate stage for wearing a mask here it is >> i have a mask right here. i'll put a mask on when i think i need it. tonight, everybody has had a test you've had social distancing and

all of the things you have to. i wear masks when needed when needed -- >> let me ask. >> i don't wear a mask like him, every time you see him, he's wearing a mask he could bee 200 feet away and he shows up in the biggest mask you've ever seen >> biden was out visiting the railway tour >>. >> the president confirming everybody had been tested prior to the debate. the president is in a higher risk category. we have an e.r. doctor joining us to discuss this with his age and being slightly overweight. what is the policy even short-term transition of power

we've seen it twice. ronald reagan and george bush both went in for colonoscopies what would be even in the short term if they were unable necessarily to carry out that job? >> right, under the 25th amendment, if the president is incap ans tated, the vice president takes over that has happened before when the president goes in for surgery, he signs a statement saying the vice president has my proxy and afterwards, he turns it back over to the president. if the president were to be unconscious, that process would take place and the vice president would take over duties it is very clear what would happen in that tragic is

circumstance >> right now, he's carrying out duties from the white house work from home like the rest of us. eamon javers, busy day thank you. there was sharp reaction to the news, futures down dow down 285 right now fair value is basically flat joining us now, asset strategist frank, this was not our plan to talk about the president's positive coronavirus test. you look at markets. you'll talk about markets. >> i don't think it changes the thesis but this dourn turn

other cycles qe, the fed, those can address the direct problem here, they can only address the symptoms until we get a vaccine or herd immunity, until we get traction on a recovery, again, it illustrates what is so different about this cycle >> i guess the question is does this put the recovery a bit in question here is why. the weather has been good. we have seen cases rise. outcomes have gotten better. this all punches us in the gut and hits home that this virus is still spreading as well. perhaps it will cause people to rethink their behavior and again put the economy and bounce back a little at risk

>> i would agree with that you've had this tale risk that was quite larger you are right. we are going into the fall, the flu season kicks up again. we'll get a strong number. we push forward and what economic activity is right now, it will be a more subdued number until we get can get past this, past the pandemic, it will be hard to get full traction. we still have 11.5 million people that is an improvement that the 22 plus and being at impressionry levels and the announcement from disney and some of the airlines

again, without fiscal stimulus, you run the risk of these temporary layoffs becoming full time that's where you have the economic dampening you spoke about. >> you wonder if this would prod the republicans to agree to a larger stimulus package. >> we think a stimulus is needed you've already seen a hole in the economy. the real risk, brian, is that the issues we are seeing these acute issues become long-term problems even when that is gone, you have the drag and the impact. until we are able to get to that other side of normalization, having some type of stimulus to help the economy along is

greatly needed seeing extra unemployment benefits and fiscal stimulus ended with what that did to income side. if income starts to get challenged, there is a need for more fiscal stimulus hopefully it comes sooner than later. >> thank, thank yfrank, thank yg us we come back here on "worldwide exchange," more on the breaking news, the president and first lady have tested positive for the coronavirus, we'll speak with one emergency room doctor who tested positive herself and saw thousands of patients on the front lines about what comes next how the diagnosis impacts stimulus talks the day after the white house passed their

$2.2 trillion package. more ahead when we return.

welcome back this could be a difficult day for the travel and get out and

do something dow futures down 287 points right now. the ynews today, president trum and the first lady have tested positive the president's doctor say they are both in the white house and, quote, doing well. other news out there we'll throw to rahel solomon >> amazon says close to 20,000 of its u.s. work force have had covid-19 amazon says this is 42% lower than the expected infection rate and after the company faced heavy criticism over worker safety >> and continuing the year-long probe into amazon, apple and facebook and will likely include

findings from the legislation. texas governor is shutting down drop off sites even county will be limited to a single site. trying to cut down on election fraud but it is getting swift reaction >> well said, rahel. the house passing $2.2 trillion package originally thought not to pass in the senate. could the president's diagnosis change attitudes and what about the supreme court nomination process we'll have more of the latest.

welcome back to "worldwide exchange" on cnbc. the house passing stimulus package largely down party lines. could president trump's die know sis change attitudes what about other battles in the

senate over supreme court judge nominee. we have breaking news. >> there could be some ripple effects on the two main items. that is the stimulus and supreme court. we are starting to hear some democrats wonder whether or not this news could bring the white house and house speaker back to the negotiating table. last night, the house did pass its $2.2 trillion package put forward by democrats after talks between speaker and pelosi broke down pelosi is still in negotiation with mnuchin and exchanging papers, when asked about the possibility of a deal, she said, i don't know, it depends, we will see that does leave a small window of action before lawmakers leave and return home after the

district election. on the senate side the question is whether or not nominee amy coney barrett will quarantine the ceremony was outside in the rose garden. neither were wearing masks since then, she's been in marathon meetings including meeting with senator lindsay graham the question is, does that process come to a halt her confirmation hearings were set to begin september 12. that could conflict with a possible quarantine. then there is a question to decide whether they have these hearings in person given that president himself is infected. >> back to you

>> what is testing like overall on capitol hill? >> that is a good question pelosi had sort of rebuffed sending over rapid testing machines to capitol hill a lot of lawmakers are older there have been questions about the ranking democrat on the judiciary committee, she is one of the oldest members in the senate, does chef the stamina to sit through intense hearings especially when we consider this virus could be spreading around the capitol, those are a lot of the questions weighing on their minds and will have to be addressed in the weeks ahead >> no doubt, everybody you just showed will be getting tested extensively over the next few

days when we come back, more in the markets and reaction to the news that president trump and first lady melania trump have tested positive. dow futures are down 337 coming up, comments from an er doctor who recovered fm rothe coronavirus. and more p about why our next guest says markets have to worry. can go your own way ♪

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breaking news, president trump and first lady have tests positive for the krurs breaking the news just before 1:00 a.m. this morning investors await the final jobs number before the presidential election and the likely possibility of a stimulus plan will this news change everything it is friday, october 2. this is "worldwide exchange" on cnbc welcome back and good morning. i'm brian sullivan president trump and first lady both testing positive for the coronavirus. diagnosis coming days after the

debate the president tweeting just before 1:00 a.m. that he and the first lady will begin their self-quarantine process saying, the first lady and i tested positive for covid-19. we will begin our quarantine and recovery and we will get through this together. this comes after hours after hope hicks, one of the president's top aids also tested positive the markets are reacting very clear to see the point on which the president broke that news he came out with that news the markets are in the red bond market not moving that much in response to the news.

yielding .67%. slight moves in other currencies as well. the move to watch is perhaps in the oil, ma et that is down on concerns about this news but renewed lockdowns. already oversupplied market. gold was initially popped on the news but slightly down as well closing in mixed session where they were closed let's get a check. it is trading down we are lower across the board down 1.5%. france seeing new coronavirus cases spike as well. now to the breaking news and d.c., president trump saying he and the first lady have tested positive for the coronavirus

both quarantining at the white house. the president's physician saying they are doing well. the president will continue on his duties while in lockdown eamon javers with more on the news >> that letter the white house physician's office sent out a little after 1:00 a.m., they do say the president and first lady are doing well whether the president is asymptomatic or experiencing some symptoms of the virus that will give us maybe a little bit of a sense of how this might progress i spoke to a senior official overnight who told me what the plan had been. really, what you are seeing unfolding. the president will remain at the white house under very close

scrutiny this is similar to if he had the flu. staff access would be restricted as we know, a lot of plans do not survive. for now, the plan is for the president to hunker down and continue to carry out his duties it is a work from home situation for the president for now. do we know if he's sim mattic? >> we do not have information on whether either of them are experiencing symptoms at this time the president is 74 years old. he is a heavy man. poemg of those categories we've learned are risk factors the

medical team will be applying everything we've learned over the past six months to the president himself. >> we are seeing video, the debates of the trump family walking in with masks off. we know hope hicks tested positive as well we've seen pictures of other top advisors with the president. >> i imagine everybody senior is going to have to be tested and it is possible, i should say, there will be others who test positive as well given the close

proximity on airplanes and helicopters. >> that's right. i've been told, a lot of white house staffers have been very cavalier and don't believe the virus is a threat to them. there has been social pressure not to do that even when traveling, we've seen the white house staff traveling in public without masks and without gloves the president, himself, mocking joe biden on the debate stage for wearing such a big mask making fun of joe biden about his more restricted exposure one thing now is the vice president, we will need to hear from his team that he's tested negative there is a continuity of government under the 25th

amendment. if the president is so sick, he can sign over effectively the presidency to the vice president by wreeting a letter to the speaker and the vice president would assume the duties. if both the president and vice president were to test positive, that would put us in a much different scenario we'll be awaiting hopefully good news from the vice president >> to be clear, as of now, the president will continue his duties that is the positive news. they are able to maintain could

be just awaiting a negative test >> exactly even in the best cased scenario, changes. been traveling around the country, that will come to an end, the big unknown is how it affects stimulus negotiations around capitol hill and another big factor and his presidency. >> eamon javers. thank you. let's get back to market reaction futures are down about 400 points joining us now, cnbc contributor on the cnbc news line.

as an investor, what was your reaction >> i was surprised along with the rest of the market if you look at how the markets were already tilted going into this news, they were already slightlynegative it was already vulnerable. not where it needs to be all of those add up to a mull

nerable market >> i guess with renewed attention now from this news putting it back in the headlines that they may change their behavior to impact >> i think the markets are reacting more to a sense of uncertainty. up until now, the election outcome had really barely registered with the markets. the markets seemed to be okay with whatever happens. introducing this kind of uncertainty in terms of the process and how we get from here to there, the market hadn't reacted all week when we had a fairly negative showing. it seemed as though, there was

no uncertainty about that. there would be an election, the pandemic would eventually end. all of these things would happen with we have this new uncertainty and it is highlighting stresses that already existed in the market. >> does it change the likelihood of a stimulus plan, a larger plan that was passed on the house, the gop wants something slightly smaller. do you believe this maybe oddly changes the calculus and makes it more likely the gop will cave >> i do think that this will be the case i think tomorrow morning, if you look at how this plan was passed it was passed by house democrats in a nonpartisan way there was not a lot of support

for this that was when they left the session, friday morning, you are going into a brand-new reality where you have now the opportunity to look like a hero or to cause the markets to fall even more. i'm not sure that senate is quite ready to shoulder that full responsibility. i actually think it changes. >> by how much, do you know? >> you know, it is hard to say this was not a very well supported plan in the house. if you judge by that, the senate would have to really swallow their pride to get it done however, i think they could. markets are moving down sliding

down more about 410. thank you for joining us >> coming up, more reaction to this breaking news here with the potential impact also the monthly jobs number day. we are back aftethr is

welcome back president trump and first lady melania trump have tested positive for the coronavirus tweeting out, the first lady and i tested positive for covid-19 we will begin our quarantine and recovery process immediately we will get through this together this comes hours after we had learned that hope hicks also tested positive. our guest now, somebody who earlier this year contracted the

virus and recovered. thank you for joining us what was your immediate reaction to the news and what can we expect from the white house? >> my immediate reaction is i hope everybody will recover. over 200,000 americans have died many of them have fit the profile of the president of the united states, elderly, obese and male i'm considered about the number of people infected and exposed when you think about the way the white house conducts it seflt as far as being unmasked, exposed this could spread to the west wing, senators, supreme court docume nominee. that means all of those people should isolate for 14 days

this is a very big deal. >> we are not sure if the president has shown any symptoms or not the president is 74 years old. he is overweight he is male those are three things not on the ideal list as far as the virus, the recovery rate is still far better than the negative outcome rate. what can the president himself expect you've seen hundreds, if not thousands, of patients what would you say what is your advice? >> i would say rest and drink a lot of fluids and just breath. i remember, every morning i woke up and checked my own oxygen levels i was good for the day for the most part, i had to take naps it is exhausting.

this virus is not no big deal even if you don't have to go to the hospital a lot of people have flu symptoms and a cough those are things you do get through. you need ta take care of yourself the president of the united states and campaigning may not be conducive actively. he may have to do that from inside his residence and take breaks to make sure his body can recover. >> we've seen his team and schedule i would imagine contact tracing on this has got to be extremely extensive. >> that is very concerning to someone like me, when i was supposed, even my own husband, there was a handful of people, less than five we had been conducting ourselves with social distancing and mask and keeping ourselves apart. that is not the case thinking back to the debate if

chris wallace and the vice president were exposed, anybody in the audience, what happened at the fundraiser yesterday. a lot of people are really concerned they'll have to isolate, put their lives on pause for a while. >> thankfully, a majority of cases on pause as well what would be the best possible time line here >> the best possible time line is to be isolated for 10 days remaining asymptomatic the current cdc guidelines are after 10 days, you can come out of isolation that is the best possible to work from home, do zoom calls, he should not be in contact for to anybody unnecessarily limiting to health occur staff and his wife only because she's already tested positive.

very, very few people should see the president over the next 10 days >> thank you for joining us. best to you and your family. >> thank you the markets react to the news of president trump and first lady melania trump diagnosis coming hours after hope hicks also tested positive and just two days from the first presidential debate where the president was in close contact with hicks getting more insight and analysis to chief investment officer. patrick, we had you on ta talk markets going forward. it is jobs day this changes everything. as an investor, how do you process the news does this change your in vesting thesis and strategy at all >> so when i woke up this

morning, i did what all market participants probably did, look at the market abilities and election betting odds. joe biden has gone up to 66% chance our view on that one, it is not going to matter for markets too much who the next president is both will run a big fiscal deficit. biden will do it on spending trump will do it on tax cuts and fiscal spending. the real problem for me is the contested scenario and if biden wins clearly and if the trump campaign contests. i think that's the uncertainty that is the risk rather than who is the next president, actually? >> oddly, our rbi was going to

be on the contested election scenario we only have one modern day example in 2000. noting from the election in 2000, to the court's decision to award the presidency to bush was november 7 to december 13, the s&p 500 fell just about 5.5% we saw gold rally. if we have a contested election. if this reduces the president's chances to be able to get out there and campaign, he's already down in post of the polls, let's say there is that shy trump voter. if there is a contested scenario, you view that like 2000 for being negative for the equities in the near term? >> a definite negative putting a hold on the stimulus plan. the economy needs that.

>> still scenarios where the gop have another candidate and millions of people already voted by mail. does that create an issue? the risks of the next president for me in terms of markets, the contested scenario in terms of the market are the scenario for me >> thank you for rolling with the breaking news. >> thank you this morning's news coming as investors await final jobs numbers. also hanging in the balance and could this diagnosis change

perspectives around passing the bill and perhaps making it larger bringing in economist. rolling with the breaking news, i understand the news just crossing at 1:00 eastern time. not even 6:00 a.m. we've had a couple of hours to process this what is your initial reaction. what type of modelling or change to that remote this morning. >> first, we hope for a speedy recovery i don't think there is anything we really need to change this will necessarily usher in a new set of macro policies. the reality is we know who the two candidates are and what they bring to the table

it would be entirely premature to make any material or notable changes. >> right now, we wish the president and first lady a speedy recovery with hope hicks. we did not know if the president were simmic or asymptomatic and that he'll continue his job duties from the white house as well there is a stimulus debate gop, $1.5 trillion, democrats pass being in the house $2.2 trillion. do you think there may be some pressure for them to raise what they are willing to do on stimulus >> as a result of job's report or what's happened to the president and first lady >> what has happened to the president? puts it back on the front lines and make more pressure to say, okay, if the presidentcan have this, it is a risk to the united states as well let's support the american

workers. i know that's a bit of a stretch. does this change the way they will think and what they are willing to give to voters and change the way they are confused as to the election >> i don't think the conversation around the stimulus is altered that much you still have this dynamic where you have one side saying it is necessary, the other side saying it is sort of necessary i think the jobs report today would feed into this narrative maybe even a little more cleanly. i think what you'll wind up seeing is, look, if things continue to hum along from a job's gain perspective brian, who thought six months ago, we would have clawed back 50% of the job losses? i would say the answer is very few, if any but here we are. that puts a spotlight brightly on, hey, do we need additional

stimulus we've done a good job here the conversation should rest on, look, here we are rolling into fall and winter, do things continue to escalate if they do, that shines a bright light on maybe we do need to do more from a stimulus perspective. thus far today, the snap shot of where we are, it is hard to make the case of the overwhelmingly big fiscal package there is a big argument of do we need any fiscal package at all this job's report will drive that home? >> by the way, the majority of cases has jobs outcome brazil recovered, boris johnson of the uk recovered. if the president, we wish him well recovers, the economy then

maybe takes off? >> again, it comes down to does it change policy in some way if it does, then, yes, of course it will. i'm hard pressed to make the argument for that policy those policies that have been in place. it is true beyond november true whether president trump sitting in the seat or biden >> yes so much up in the air right now with tom porcelli. we appreciate you rolling with the breaking news. thank you for joining us folks, that does it for us the president and melania trump testing positive for covid-19. the attention on that big breaking news. we'll pick up the major breaking stories next best to you. have a great day and a great

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breaking in the middle of the night, approximately 1:00 a.m. president trump and the first lady test positive the president's doctors say both are well and plan to quarantine in the white house also jobs friday, october 2, 2020 "squawk box" begins right now.