slowly activity and factories like foxconn are returning back to prior levels. things are moving back but clearly in order to get there, authorities would have to impose the measures they've said, look, we are happy to shout down the economy for a month to make sure this disease doesn't spread further than it has even though it is going to cause significant hit to our economy, what lessons does the china model give to the rest of us >> china was slow. i was there mid-january, there was no knowledge of what was going on it was slow out of the gate. they took some measures with with wuhan in particular you are seeing slow response to getting kids back to school. you are seeing factories up and running. clearly at 50% in most cases others are talking full production in late march we'll see, we'll have to watch whether this is a spike of cases when you do have that factory. you'll have more people together now in groups. in restaurants and back in activity we'll have to watch to see the spike. more information, more transparency and data you share not just at the ce

means burdened by lowering interest rates deferring social insurance fees and cutting energy costs foxconn the apple i phone maker is also restarting production of its main plant in china but even as the situation in china seems to be improving japan and korea are getting worse major south korean exports including one diet l.g. and samsung have partially shut down their production lines japan and korea are also key role players in china's manufacturing economy so analysts are worried that the firms will not be able to supply components to china for assemblers like foxconn even as it restarts production now this is the unfortunate case for many manufacturers as key pockets of selective high chalk still remain in this hyper connected world this will make the output gap even more difficult to measure than usual. for the markets continue to be bipolar with flashing between being down a 1000 to up a 1000 points them plunging nearly 3 percent tuesday to roaring back today burning the shorts it looks like the fed put did take hold and yesterday's plunge was a buy the rumor sell the news effect wh

to talk about the prospects with a view on foxconn is senior analyst mehdi.going to see a recovery, given it was a pretty fragile recovery across the semi space before this latest event? mehdi: thank you for having me on the program. i think we will see some recovery from march into the june quarter. some of the disruption to the supply chain now behind us. unfortunately, it is too early to quantify the impact of the demand disruption in north america. i don't think we are going to find out until may or june. in that scenario, i think the second half of the calendar year is now questionable and we do forct a significant cut iphones, pcs and other electronics to materialize by the may timeframe when we know the extent of the demand disruption. which companies would you say is most resilient because clearly samsung with the containment of their own manufacturing would seem to be in better position? that: i think companies still have exposure to the cloud infrastructure like samsung memory division will do better than companies that have direct exposure to consu

i think apple knows the situation with foxconn, nothing that the workers have started coming back to have almost a 50% capacity utilisation now. and they will ramp it up to the sea than they will ramp it up to the sea than the levels by the end of march. i think this is below what good happened if the coronavirus had not happened. but it is a sign that things should hopefully come back to normal if the virus is contained. has apple been diversifying a way from china because before the coronavirus there was that trade war between the two countries coachella at this point i would say most of apple's production in the supply chain. it is still very much based in china. they have started it and other countries like india but that isi other countries like india but that is i would say less to diversify but more to comply with the local regulations in the country rather than have a broader that brexit the strategy. opinions seem to be split 01’ strategy. opinions seem to be split or how quickly the recovery could be made. what do you say? there is still a lot of uncertainty on how the situ

the home to the iphone complex, you have seen local government officials try to help apples partner foxconns, trying to address logistics issues related to the outbreak. because of the outbreak, we don't know how china's economy will move forward. the still want to maintain manufacturing hub status and add to that the innovations they have been pushing for the past few years. romaine: shery ahn giving us that update, our thanks to her. be safe. let's get a check on the latest headlines. ford has canceled -- canceled plans to restart factories in the u.s. and canada over the next few weeks. establish newg to safety procedures with the united union. speaking of auto parts, a takeover may be in jeopardy. warner may be backing away from the deal for delphi technology. delphi drew down its credit line fromut getting permission its creditor. cruise line operator carnival is turning to all corners of the market to raise $6 billion in cash. it is being marketed with coupons of about 12.5%. it is the biggest test yet about investors willingness to finance industries hit hard by the covid-19 outbreak

have reopened this was after a prolonged shutdown that was caused by the coronavirus i phone maker foxconn reopened its doors last month and it plans to open at full capacity by the end of march the auto industry another sector that's facing the possibility of supply disruption many factories near rouhani still remain closed honda's chinese manufacturing hub just in the southern city of gangs though restarted partial production on february 17th but it's still running below capacity if plants don't go back to full production soon vehicle assembly lines across the world risk a slowdown and at worst even shutting down so for more we bring in scene of the miami business school john quality thank you so much for your time there's a lot to dive into starting with the global supply chain that's been disrupted we've already been warned several times time and time again since the start of this and as i mentioned china accounts for one 3rd of global exports for 20000 that is how long before we see china operating at full capacity and is there a timeline for this. i don't think as a firm timeline the

financial crisis the corone seen measures in china have hit supply chains worldwide companies like foxconn which me examples i phone say the virus will hurts their bottom line hong kong based airline cathay pacific has put 25000 staff on unpaid leave and around half of its planes are sitting on the tarmac it's among dozens of airlines forced to suspend flights when the courtroom is filipe lygon used to be an advisor to the director general of the world trade organization he says markets have failed to properly respond to the threats of coronavirus you see the disruption to spending in china i think it's likely to see. a very useful growth if any at all in the 1st quarter and since china has 20 percent of the global economy but it has an impact looking forward that the virus is now affecting the rest of asia and increasingly the u.s. europe the middle east and elsewhere i think you can see 3 big in tax the 1st is on business investment this is a vestment which already had sort of stalled because of worries about the trade conflict between the u.s. and china and now faced with a sense of unc

total to six >>> foxconn expects the company to return to normal by the end of the month last month, it did warn of a negative impact. tech companies abandoning plans for major conferences in coming weeks. the google cloud next 20 event will be held virtually out of abundance of caution and safety. facebook decided not to participate in south by southwest this month adobe made the decision to cancel its portion of the submit in las vegas march 29 through april 2. back to you. >> thank you for the latest details on the coronavirus back to the markets. stocks searching for some direction after the massive rally. with me the entire hour is carrie firestone i have to say it was huge. the biggest point gain ever on record for the dow was yesterday the bottom? down 16% it came down with just vor osity that we really had a level that was undeniably oversold. >> we are showing viewers and listeners right now how massive the dow's big swings were. down over 1,000, nearly 900, up almost 1,300 is this indicative of a market that is healthy at this stage? >> we have to separate a couple of thing

china is trying to get up -- foxconn trying to force people back up to the countries.'s sending people back to work even though they are still dying. >> you saw the numbers and that would take leadership of president trump and the united states, you saw the numbers coming out of china on friday were horrific. they were 36%, i think, for their manufacturing and that's probably a promoted number. if you look at the actual logistics, rail stock going around and coal, you have seen the atmosphere cleared up. literally nothing going on in manufacturing. president trump is dealing with that. that's where the market selloff is. remember, his entire thesis to bring the supply chain back to industrial democracies. that's the entire thesis of trade from day one. he's continue today take bold action and that's what leadership is about. maria: i tell you, the president has changed the conversation around china. now you're looking at companies wondering if they could trust china anymore. what does this mean for china and their plans for 2030 and their plans to take over the u.s. in

foxconn says china factories operating at now 50%. i don't know, maybe china is coming out of it.the headlines, all the news as best we can. your reaction to the cdc and u.s. government saying to u.s. airlines, tell us what passengers came in from overseas. we need their emails. we need their phone numbers so we can track them and see who else in the communities may be exposed to them. the airlines are pushing back on that, potential 30 billion-dollar loss to the airline industry for this. would you be for that, colonel? >> we have to be very careful with this step. this, the, first of all, that is a step we should been considering five weeks ago. in middle of now we're push being back to ask airlines provide information on us personally. we did this after 9/11 with the patriot act. this type of activity we have to be very cautious with. airlines and passengers can cooperate with the u.s. government. i think all the governments, w.h.o. and the u.s. have to get their act better let quicker than starting to ask personal information. i think that is a caution flag. liz: i hear what y

. >> speaking of those, steven, and foxconn's call that they will be able to meet at least the slowercity by the end of the month after that it's still unclear and we did just yesterday good a cancellation of google's major platfo platform event of the year, google io. questions about apple's wwtc, which are usually around the staple time. what happens when these big launches don't happen? when you don't have full capacity ready at the mid-point of the year when these manufacturing facilities are gearing up when you don't have developers getting together and understanding the new operating systems that these devices are going to be running on, what are the consequences >> we do tend to have a lot of get-togethers and conferences from facebook, google and then finally apple at wwdc. the general, those have become a little less important nermz of new features here. i don't think we lose too much there. the good news this is a lighter time of year with demands for smartphones. apple is not flying a lot of people to china so there could be a delay in products but the installed base is gro

financial crisis in 2008 koren 1000 measures in china have hit supply chains worldwide companies like foxconn which makes apple's i phone say the virus will hurt their bottom line hong kong and line cathay pacific has put 25000 staff on unpaid leave and about half its planes are sitting on the tarmac and it's among dozens of airlines forced to suspend flights because of the outbreak several are warning of job cuts and travel restrictions have seen hundreds of thousands of students taking their lessons online or missing class and that's hurting countries like australia new zealand and the u.s. which billions of dollars from foreign students well let's speak to felipe alou grain about this he's an economist and a former advisor to the director general of the world trade organization he joins us live from london thank you very much for your time mr gray and so do you think the economic impact of this corona virus outbreak will be on par with the 2008 financial crisis. why i think it's unlikely to be as bad as the 2008 financial crisis but i do think that there is a serious possibility of a reces

financial crisis in 2008 quarantine measures in china have hit supply chains worldwide companies like foxconn. which makes apple's i phone say the virus will hurt their bottom line hong kong airline cathay pacific has put 25000 staff on unpaid leave in about half its planes are sitting on the tarmac it's among dozens of airlines forced to suspend flights because of the outbreak several are warning of job cuts as well and travel restrictions have seen hundreds of thousands of students taking their lessons online or even missing class and that's hurting come countries like australia new zealand and the us which earn billions of dollars from foreign students for the playgrounds an economist and a former advisor to the director general of the world trade organization he says markets have failed to respond properly to the threat of coronavirus you see the disruption to spending in china and i think it's likely to see. a very disorganized if any at all in the 1st quarter and since china has 20 percent of the global economy that it has an impact looking forward the virus is now affecting the rest of

since the financial crisis a decade ago quarantine measures in china have hit supply chains worldwide foxconn which makes the i phones a says its chinese factories are only running at 50 percent of capacity on kong based airline cathay pacific has put $25000.00 staff on unpaid leave and about half its planes are sitting on the tarmac emirates is asking its employees to take paid and unpaid leave for up to a month at a time. the international air transport association known as i had to says airline revenue will likely fall by almost 30000000000 dollars this year airline bosses meeting in brussels to discuss the situation. much heiress is an airline analyst he explains why there is now a wave of uncertainty surrounding the future of the industry. the message today in brussels from some of the top c.e.o. of european airlines is that the worst is yet to come this was the joint shared message which of course is not only sending jitters across the industry but is all ahead of what we are expecting now which is the 1st global deep in air travel demand in over a decade so it really is a bleak and whe

since the financial crisis a decade ago quarantine measures in china have hit supply chains worldwide foxconn makes i phones says its chinese factories are only running at 50 percent hong kong based on cathay pacific sport $25000.00 stuff on unpaid leave and about half its planes are sitting on the tarmac emirates from dubai is asking its employees to take paid and unpaid leave for up to a month at a time and i also have the international air transport association says airline revenue will likely for almost 30000000000 dollars this year airline bosses are in fact meeting in brussels to discuss the situation it's much heiress with us here in studio airline industry analyst and regular contributor lots to say what can airline business bosses do they consider the meeting and talk but so much of this is that with that they control exactly and ultimately it's endless we have developments every single day the message today in brussels from some of the european airlines is that the worst is yet to come this was the joint shared message which of course is not only sending jitters across the industry

with foxconn being closed. >> when it comes to new york city, it seems like the mayor is hunkering downhool closures and businesses being shut. late givenittle too how much it has spread? of the is some complaint. we did see the first case made last month in washington state, and now it has spread and california has its issues. new york city has a densely populated tropical of -- metropolis. governor cuomo has talked about -- thecould be facing medical facilities could be facing serious problems. we are seeing this playing out in europe. we are seeing travel placections being put in in places except the u.k. and switzerland. or has is considering ordered many of its southern with luxembourg and france and elsewhere closed. they are taking this head-on. >> i'm sure that you are in touch with your friends and , washington state limiting restaurants to take and delivery. >> i just canceled my trip to seattle which was coming up in a couple of weeks. hong kong has put out a red the united'srude -- to include the united states, egypt and elsewhere. arelans of travel curtailed. many other peo

foxconn also say they are ramped up to full production once again in their factories. stuart: okay. i want -- emac, what else do we have here? liz: what did italy do and south korea do? what susan is saying how china handled it. they did so social distancing, they did track their citizens via apps, via thermal imaging. i don't know if the u.s. would put up with that. it's confidence to have -- the see the government in new york responding and local governments across the u.s. responding and see congress responding. that's putting the foot in the market. stuart: there's a tweet that came to us from president trump. here it is. if you want to get money into the hands of people quickly and efficiently, let them have the full money that they earned, approve a payroll tax cut until the end of the year, december 31stment then you're doing something that's really meaningful. only that will make a big difference. jonathan, fox news -- fox business contributor. jonathan, are multiple business plans going to put a floor onto this market? >> no, they won't, stuart. unfortunately they will help

. >> wilf, out of apple supply change, let's start with foxconn, the largest supplier of apple devices. four weeks from now it expects to fully meet demand, but this is a slow period of the year, so refers want to know what happens when it picks up gene muenster said to expect similar warnings from other suppliers, too he's watching qualcomm, skyworks and micron guys, back to you. >> josh, thank you so much mike, how have the chip stocks held up? >> in the official wave they were not much worse, but i think you're starting to see more values if you look at software and semis, it seems to be bleeding away. >> they have an outside move when it's a specific china risk. the worry has shifted. >> it is at the moment, but to mike ace point, what we're seeing and what we have heard some of the clients talk about, that's where they're going to raise cash that's what you're seeing in the chip stocks. that's why you're seeing them get hit a bit. >>> hyatt, the hotel chain, pulling guidance for 2020. seema mody has the details. >> the company says the ability to assess the financial impact is bec

to get to that 5% to 10% penetration, we think you'll be tesla, foxconn, the battery companies, googlethe os of the cars, the internet of cars, that case of innovation and capital talent is what will take us here through the lens of a city and a micro fleet or an uber or lyft on amazon. that is something investors have finally realized this will not move to toyota, but the pace of the tech companies that needs things to get on board. alix: if i'm an investor, what do i buy? adam: lots of things to buy, including tesla. we downgraded tesla because we thought it is overvalued relative to the rest. we have a price target of $500. we are not in the business of telling investors to buy a stock that has a 35% downside. our message to investors is this. if tesla does the things to justify at $650 price target, and no more, no less, it will lead to enormous capital formation up the chain and downstream joint battery companies, silicon semiconductor companies, electric motor manufacturers, charging infrastructure, mining, the entire ecosystem including moving the earth, electrons to get into th

foxconn manufacturing, we are seeing them opening up a new facility in india.g a lot of disruptions to their manufacturing. they are looking to extend into vietnam, but for now that is a placeholder. yes, i think we will see long-term impacts as companies diversify into more locations. at this stage, there are a lot of things to be discussed. say peoplei would are looking into where they can go, but nothing yet is really fixed at the moment. there are a lot of unknowns. taylor: companies have been talking about this when president trump was elected and looked at tariffs. you have suppliers like apple already shifting to vietnam, for example. how much of this solidified that transition, where companies are now saying ok, we have to do it. sharon: for sure last year, but this year the u.s. and china are starting to come to some sort of ease the urgency and continue with it. they are really looking into this. everything is under discussion at the moment. haidi: as we get the complications play out in an unprecedented way, how much would it be a trend to diversify

high,ced that on the foxconn has about 300,000 workers back to work, out of 600,000.hat is a very good sign. i think the latest plan is to get 500,000 back to work. that means these companies are coming back again. and trying to maintain their market shares. haidi: what about southeast asia? what opportunities are you seeing in vietnam, indonesia? you can take your pick when it comes to valuations. you have so many markets trading at distress levels. his attempt into you at this point or do you really need more of his ability to what happens at the end of this crisis? mark: no, it is very tempting. the way to look at it is this way -- you have to assume we are going to have two quarters of no earnings or losses. once you plug those numbers into these companies and look forward comes, when the recovery we can see even with those losses, the numbers look pretty attractive. so, that is the way we would look at it. you can find these opportunities in indonesia and vietnam, malaysia, singapore, thailand -- you name it, they are all over the place. taylor: i want to go acro