carlton. great ideas with. to read more, check out this week's edition at barrons.com and follow us on twitter. that's all for us. wash your hands, wear your masks. see you next week on ♪ ♪ >> from the fox studios in new york city, this is maria bartiromo's "wall street." maria: and happy weekend. welcome to the program that analyzes the week that was and helps position you for the week ahead. i'm maria bartiromo. coming up in just a moment, ins' managing director joins me, then later secretary of state mike pompeo on china's culpability in the covid-19 pandemic. but first, the cracks caused by the covid-19 shutdown are continuing to strain the economy. the economic data this week has been awful, now 22 million people have applied for unemployment benefits in the last four weeks.

erasing much of the job gains over the past decade. retail sales plunged to a new low in march as businesses continue to shutter due to this shutdown and stay at home order. the housing sector took another severe hit as housing starts and home builder confidence saw dramatic slumps. but while the white house is discussing guidelines to reopen the country as the data shows the pandemic is peaking, how long will it take to recover our economic luster? joining us to talk about that and investing today in the broader markets during the shutdown is managing partner of the bonnson group, david bonnson. great to have you this weekend, thanks so much for joining us. >> good to be with you, maria. maria: so let me get your reaction to what we heard this week. the president came out with guidelines to reopen the economy in three stages. that certainly sparked a rally in stocks when he first started talking about it. is this realistic? do you think that the economy gets back to where it was, and what's your reaction to now this new conversation taking place in terms of the reopen?

>> well, it's certainly positive, and i'm not even sure that it's positive because of any particular specifics. it's more just the idea that there now is a plan, that there's some trajectory towards reopening the economy. and i think that underneath the hood there's a lot of good. there's wisdom there, but i also think there's still some uncertainty. we're going to see ongoing volatility. obviously, this rally comes about from the federal government giving some guidelines is not the beginning of a rally, right? the rally began a couple weeks ago, just sort of when the forced selling was done. on a go-forward basis though, i think everybody is aware there's a lot of urn centiin the -- uncertainty in the economy. we have a good portion of those losses having been gained, going forward i think it's going to be a grind. maria: and a grind is what we heard from some companies this week with as the first quarter reporting season kicked off.

you heard from jpmorgan and bank of america, goldman sachs, morgan stanley, johnson & johnson. you also see a real difference in terms of sectors. the banks, jamie dimon in his conference call with analysts, basically said look, you know, we're looking at a reopening, it could be june with, july, august, you know? nobody knows. there's a lot of uncertainty there, but he did say we're preparing for what is likely to be a severe recession. >> yeah. and i think that that is what is sort of baked into the markets over the last month. we know that we're going to have recessionary positions for at least a quarter, probably two quarters. the banks are going to be on the front lines of that. so far it's been a mixed bag. you saw proctor and gamble with revenue increases in the quarter, earnings increases in the quarter, raising their dividend. johnson & johnson did the same thing a few days ago. so the banks are probably ground zero for the uncertainty. they have to kind of extend

credit to an economy that right now has no demand for credit. so you expect banks to be more constricted in the immediate weeks and months following this contraction as things open up. that will definitely change for the banks down the line. maria: so where are the opportunities in terms of investing today, if there are any? i mean, in the past you've talked about dividend payers. do you want to stick to your strategy that you've been on before, or are there new ways to invest in new normal? >> well, there's new ways to invest within the same philosophy, at least at my company. we believe in dividend growth companies through bad markets and good markets. the difference is right now those dividends have all gotten much better. you have companies like verizon and merck and coca-cola that are paying higher yields than they were a month or or two ago just because of market prices being lower. but i also think

opportunistically one has to start to wonder if some old of the names that have taken on particular distress become much more tempting, and energy sec editor as an example where nobody has wanted to go. oil has still not necessarily found its bottom even with that major opec plus production cut. what we know though is that demand has to come back at some measure at some point and that those oil companies, i think the chevrons and exxons that pay dividends, they have no intention of cutting their dividend through this period, they become very attractive to investors that can wait out the next several months of uncertainty. so the higher risk elements we recommend are in those types of beaten-up companies that probably have been beaten up too much. and, by the way, they're off of their lows as welsh maria. but then -- well, maria. but i think on the other side of a sort of equity barbell, the real stable companies that are really strong balance sheets, much less cyclical in their business and have performed

quite well through this whole period. maria: david, thanks so much for being with us this weekend. great to get your insights. >> thank you, maria. maria: we will see you soon. don't go anywhere, the imf managing director is up next. stay with us. ♪ ♪ ♪ in these uncertain times, look after yourself, your family, your friends. but know when it comes to your finances, we are here for you. what can i do for you today? we'll take a look at the portfolio and make adjustments. i'm free to chat if you have any more questions. our j.p.morgan advisors are working from home to help guide you through this. for more than 200 years, we've helped our clients navigate historic challenges. and we will get through this one... together. ♪ ♪

♪ ♪ maria: welcome back. just a few months after taking the helm of the international monetary fund, chris leaning that gore geoff v.a. is already watching covid-19 shutter businesses on every continent, wreaking havoc on the global economy. also announcing this week that global gdp will shrink 3% this year. so what does she see down the road and how quickly can things recover? i'm joined by kristalina georgieva joining me right in the middle of her spring imf meetings, and it is great to see

you. thank you so much for joining us this weekend. >> thank you for having me, maria. stay well. maria: thank you so much. and right back at you. you do the same, please. we need you certainly strong and safe. can you give us your with assessment of the world right now? i know you've taken growth expectations down this week going into these spring meetings. what can you tell us about the global economy today? >> well, maria, this is a crisis like no other because to fight the health crisis, we have to cripple our economies. and what we see is a dramatic downturn. on top of it, it is truly global. three months ago we expected the 160 countries to have their income per capita grow, to go up. now we are projecting 170 countries to see their income per cap that down -- per capita down, not up. and what we would like to emphasize is that we can

mobilize and fight this crisis. our recommendations, one, make sure that health systems are supported. spend as much as you have to spend on health. two, boost your economy. protect people, protect businesses. and this is what u.s. is doing with a very massive fiscal package of measures is absolutely fantastic. and make sure that monetary policy supports the economy. and, three, pave the way to recovery. think today how to make sure that the recession is as short-lived as possible. maria: yes. well, this is a very good list of three things we need to be mindful about. let me ask you about that stimulus, because when you look at the united states in particular, you're talking about stimulus that is literally 35%

of the gdp of the economy. you've got $7.5 trillion in stimulus whether you look at the federal reserve and what it has done in terms of the leverage portion of it with the treasuries balance sheet. you've got the corporate cares act -- i'm sorry, the government cares act, $2.2 trillion as well as the paycheck program included in that. do you worry now that, kristalina, we're talking about the u.s.' debt being higher than the actual size of the economy, $22 trillion. do you worry that debt on the other side of this is going to get us in a bad way given we're borrowing so much? >> well, you know, we worry more about getting to the other side as quickly as possible, building a bridge -- maria: okay. >> -- over what is the top of the economy. and we also see that low interest rates are very likely to stay for much longer. meaning that the capacity to

mobilize now is underpinned by this accommodative monetary policy. just to give you a sense that everybody's striving to do what u.s. is doing, they're actually following u.s. lead in this area. justifies call measures -- just disease fiscal measures, forget about monetary policy for a moment, just fiscal measures account for $8 trillion. in other words, everybody is striving to protect people and protect firms. why is this important? because if we see a way from bankruptcies now -- a wave of bankruptcies now and a huge increase of unemployment, then scarring of the economy could be such that we would be in a to longed recession -- in a prolonged recession. and that is what we want to avoid. in this sense -- maria: yes.

>> -- lean forward, lean forward so we can come to the other side, of course, as quickly as possible. the uncertainty is the virus itself. how long it will linger, is it planning to do a two rounds around the globe, could it return, and that is where what is being nailed down with concentration on advantage seeks -- on vaccines and treatment is so hugely important to stop it in its tracks. maria: yeah. and we had some good news this week about gilead sciences, the vaccines that are right now looking for clinical trials toward the end of the summer, into the fall. let me ask you about where we are across the globe. are there countries that you think that are better positioned here in terms of avoiding a recession, and if who do you think come -- and who do you think comes out of this first? i know there is a lot of worry

around outflows from the emerging markets given what has taken place in china, the chinese contraction in the first quarter was pretty steep, 6.8% contraction, we learned about this weekend. >> what we see is that majority of economies are going into negative growth territory this quarter, and we would like to see a rebound starting in the send half of the year. finish -- in the second half of the year. in terms of who is going to come first, countries that are most effective in containing the epidemic and then reopening their economies successfully, they're going to have an advantage. but let me be very clear,s this is truly global. pandemics know no boundaries. finish and, therefore, we have to win everywhere so we can be safe in any other place.

and in that sense, concentrating on what we do, international financial organizations, to help all countries have the resources so they can pay doctors and nurses and protect their most vulnerable populations and firms, it is so very important. maria: great i sights from you, as always. it's great to see you again, kristalina. thank you so much. >> thank you. stay well. maria: we will -- and to you. imf managing director joining us there. don't go anywhere, secretary of state mike pompepepepepe here's the thing about managing multiple clouds for your business. when you've got public clouds, and private clouds, and hybrid clouds- things can get a bit cloudy for you. but now, there's the dell technologies cloud,

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♪ ♪ maria: welcome back. heightened concerns this week on the origin toes of the covid-19 pandemic, as i have spotlighted

on this program and many others many times before, the only level iv biochemical super lab in china happens to be located in wuhan, causing many to believe that scientists were actually studying the coronavirus there at that lab, and it got out. i spoke with secretary of state mike pompeo about that this week on "mornings with maria." >> the trump administration has been tensely focused on the problem in front of us, keeping america safe. as you saw yesterday, the president getting the economy back open, getting people back to work. i was talking to some friends back in kansas this weekend, they are aping suggestion to get back -- anxious to get back to work. what this administration has consistently done with respect to the chinese communist party is demand that it behave in a way that's consistent with international norms. you and i have talked about this. he told us they wouldn't arm the south south chai sea, they did so.

we demand they live up to promises in hong kong, and now at this moment this authoritarian regime had information, data -- it's very clear now that the communist party and the world health organization didn't put that information out into the international space as they're required to do in a timely fashion, and the result of that is that we now have this global pan deppic. pandemic. we're still, maria, suffering that today. we are still asking the chinese communist party to allow experts to get into that virology lab so that we can determine precisely where this virus began. it isn't political, this is about science and epidemiology. we need to understand what has taken place so that we can reduce risks to americans in the days, weeks and months ahead and get the global economy back on track. it's very important. maria: i know we've been saying that perhaps the virus got out of that virology lab by accident. but the fact that they have been downplaying it and lying for so long, since the beginning of

this, then it raises a question of was it really an accident? >> it is completely appropriate that the world ask the right questions, and this is the president's frustration with the world health organization. that is the institution with the task underwritten in part by the american people and countries all around the world, it is their task to protect the world from precisely what is happening today. and thaw need to get answers, and they need to demand that from the commune i.c.e. chinese -- communist party. so the whole world can see what took place. when we do that, there'll be a time for accountability, we'll be able to attribute what happened to who did what, and we can move on from what is now an incident that has destroyed so much wealth not only here in the united states, but all across the world. maria: and so many lives as well. mr. secretary, you've talked to me about the huawei situation over time, and the last time we were in the studio together

talking about this remember europe was pushing back saying, no, look, we're going to keep our infrastructure in place. you said the u.s. will not be able to share as much information. have you seen a change in sentiment as a result of what has taken place from china and the clear bad behavior? have you seen a change from our friends in europe or anywhere else? are they maybe now rethinking the fact that you can't trust the chinese and maybe you don't want the huawei telecom infrastructure in their country since they have open doors with the data going back to the communist government? >> maria, your point is very well taken. you talked about the loss of life, what a tragedy. we've all had friends who have been touched by this, it's a tragic loss of life here in the united states, around the world and now loss of life around the world is continuing. i raised that in the context that you asked we have been out, the trump administration has been telling the world about the threats that are posed from allowing the chinese communist party to own the infrastructure whether that's huawei or zte,

own the communication infrastructure in your factories. i am very confident at this moment, this moment where the chinese communist party fail to be transparent and open and handle data in an appropriate way will cause many, many countries to rethink what they were doing with respect to their telecom architecture. and when huawei comes back to sell them equipment and hardware, that they will have a different prism through which to view that decision. i'm hopeful that's the case. this is about security and making sure that u.s. data, americans' data that travels across their networks, is safe and secure as well. maria: and what about businesses? i mean, can you have a business relationship with a partner who you, who continually changes the rules? i reported on monday they changed the rules in terms of export of the protective gear. how do we get business leaders to better understand the national security risks, those business people and investors who just want to go this there and sell their products to 1.4 billion people? what will happen to companies

that are aligned with china? >> two things. i think this has been a real moment for business leaders all across america to see the political risks associated with the operations inside of china. you know this, maria, you've been around a lot of these people, they can deal with commercial risks, all kinds of political risks that are enormously difficult to deal with, and now we've ripped the band-aid off. the united states government has the responsibility to secure the supply chains for the products that matter for american national security are no longer dependent on any single country. we have a responsibility to get that right, that's the governmental funk, and i hope every business leader will take a look at what's transpired and make good decisions for their company about whether they're prepared to deal with the political risk of continuing to operate from china. maria: my thanks to secretary of state mike pompeo. don't go anywhere, more "wall street" right after this.

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but know when it comes to your finances, we are here for you. what can i do for you today? we'll take a look at the portfolio and make adjustments. i'm free to chat if you have any more questions. our j.p.morgan advisors are working from home to help guide you through this. for more than 200 years, we've helped our clients navigate historic challenges. and we will get through this one... together. ♪ ♪ maria: welcome back. coming up right here next weekend on the program, do join us, we've got a special program. atlas foundation founder jonathan ward my special guest to talk more about china and investing today. plus this weekend on fox news, don't miss sunday morning futures, 10 a.m. eastern sunday, peter navarro and south carolina senator tim scott my special guests. catch the program live, 10 a.m. eastern on sunday on fox news. and right here on fox business, start smart every weekday, 6-9

a.m. eastern monday through friday with "mornings with maria." right here on fox business, set the tone. that'll do it for us. thank you so much for joining me a great rest of the weekend, and i'll see you again next time. ♪ ♪ gerry: hello and welcome to the "wall street journal at large." well, we received some good news and some bad news this week in the fight against the coronavirus outbreak. the good news is that medical experts are saying we may be near a peak. white house adviser dr. anthony fauci expressed cautious optimism that the disease is slowing and that we're starting to see a leveling off of cases. the bad news, of course, is that thousands of americans are still getting sick and dying from covid-19, and the economy -- which has been virtually shut down for more than a month to