neel kashkari, thank you for your insight.ll be back in a moment. >> brennan: the easter and passover holidays are a little different this year. for a look at how some americans are finding solace in faith, we go to the archbishop of new ardinal timothy dolan. cardinal, thank you for joining us. >> margaret, a blessed easter to you and your listeners. >> brennan: thank you. this is easter week. it is passover, and it will soon be ramadan as well. how would you counsel people to observe their faith while in isolation. >> well, you used the word "faith," and that's key. faith, of course, doesn't depend on things physical. and we have faith these days that even though we can't, sadly, get to the synagogue or to our parish churches, we can still be in union with god through prayer, through sincerity, through earnestness, and through charity. and thanks be to god, so many are using the technological advances, live-streaming, radio, tv, people are plugging in at overwhelming numbers to be part of a community at easter and passover.

a new warning from minneapolis fed president neel kashkari. cnbc returns right after this. >>> stocks poised to kick off the new trading week in the red as investors gear up for a new round of corporate earnings reports. >>> meanwhile, oil prices getting an initial boost after opec and its partner countries agree to an historic production cut on oil and as the u.s. airline industry remains at a standstill, the u.s. government is attaching new terms to a potential bailout of the industry >>> its monday, april 13, 2020 and you are watching cnbc. >>> welcome back to the show i'm dominic chu live at cnbc global headquarters. let's get right to the markets halfway through the 5:00 a.m. eastern time hour, looking at futures right now, we have seen a slight improvement over, perhaps, the last hour or so still the dow jones is implied lower by 271 points at the opening bell the s&p would lose about 33 points and the nasdaq down by just about 85 again, a slight improvement over the course of the past half hour, hour or so in terms of the trajectory of

we should prepare for the worst-case scenario. >> tucker: neel kashkari joins us.nk you for coming on. how do you assess the president's three-phase plan? >> you know, tucker, thanks for having me. i'm always a not a health expert myself but i talk to a lot of epidemiologists. it seems consistent with the advice and feedback we've heard from health experts, there's a way to slowly open the economy. we want to try to avoid the virus flaring back up again and giving back the gains we've had. i think a staged approach, looking over the horizon, make sense. so i think it's consistent with what i've heard from the experts. >> tucker: you are an expert on monetary policy, of course. and the economy more broadly. where are we, do you think? it's probably a complex answer, but how would you sum up the condition of the u.s. economy right a s now? >> it's not grinding to a halt, but this is the deepest and quickest shutdown of the economy that we've got a record for. the unemployment, some 20 million people filing for unemployment claims in a few weeks. we have never seen so

dollar people now see when steve banana chan and neil kashkari go on television and say we've got instead of quantitative easing money printer go britain where there's no end in sight we're going to keep printing money until we fill the entire 7 seas of fat garbage and they say the raining of paper money in venezuela cluttering the straits you know bitcoin is this is to coin a year max i'll. well you know i've been working in the paper a little bit i've never been more boys than i have now i think the circumstances that we see around the world are the perfect condition to make a big boy or value proposition shine and be in an ecosystem of wonderful applications that are going to be introducing big to a whole new lot of people it's all coming together it's going to be a wonderful year and i'm i'm nervous but very excited or was that when i look at the local because in the charts of where bitcoin is being adopted i see countries like argentina where that option a skyrocketing all over south america brazil a colombia i see in egypt because adoption is now skyrocketing of some countries that

interesting that you and i seem to get together on these historic days right we were we were together when kashkari made his famous infinity comment and you know i told you about this hash tag q.e. forever for a long time and i think you need made at the label of our last show and here we are again on this historic day where i tweeted out earlier that we're at the tipping point capital t. capital p. where we've now turned the dollar into toilet paper right we basically said it doesn't matter how much we print we're going to keep printing in till the bleeding stops and i think what we're experiencing and and the reason i'm not sure it's going to work and why i do think we are at risk of a greater depression is if you think about how commerce works right there have to be people employed there has to be a volokh city of money and if i have a dollar and then i go get my haircut and then the haircut or goes out and buys a shirt and a shirt seller goes in and gets a meal and the restaurant tour goes to the butcher and the butcher goes to a hotel then that money is actually circulating in the economy and

out of this plant, we have created a new segment in europe, which is called crossover suv with kashkari, whichlaunched is really doing great. as far as nissan is concerned, we are continuing with our regular business in europe, using the plant. follow the local business practices. the impact on brexit. .hange the landscape, we do the business in europe. however, we do believe that anticipating the impact it can have on the automotive industry, knowing that nissan is the biggest automotive manufacturer in the united kingdom. i do believe that the talks between europe and the united kingdom will be business friendly conditions for the auto market. nejra: when it comes to managing cash for nissan, we have seen you struggling a bit when it comes to issuing papers since september. we have downgrades raising the cost of capital. how will your balance sheet look if this pandemic goes for much longer than the summer or the fall? obviously, these circumstances are all putting a challenge on our financial situation. however, with the support of our banks, the government support, we are continuing

shery: neel kashkari saying the u.s. could face 18 months of rolling shutdowns.estion would be if we see a second wave, third wave of infections, with that have sort of a similar level of market impacts, as the first outbreak, or will the markets become desensitized? desensitizednot be , but i think the second wave impact may be somewhat smaller. we have a tremendous amount of market stimulus already in the system. that is one reason. the other reason is because of the defense production act the president invoked, there is a fair amount of ramp up of medical production which will prepare us for the second wave. i think we will carefully listen to dr. fauci. the market will think it is unfortunate we get a second wave which sets us back. once you get through it, there will be new expectations on anticipating the following the recovery. the second and third waves will not be as stressful and impactful as the first, not to mention the first wave was the unfortunate timing of the oil price war which has been resolved. to go over some of the latest measures by the fed

alix: neel kashkari on cbs saying something a little different over the weekend. michael mckee joins me with more. walk me through your takeaway from the interview and the week ahead. all right, it looks like we are having some technical difficulties. loving be working from set up -- working from home set up. it's ok. taking a quick check on the markets, it is really weak volume as we head into the trading week. as i hopefully talk to michael mckee, it is a very big week. we have china gdp plus import and export numbers come up plus retail sales going to be key. it is the world bank meetings i'm watching as well. emerging markets asking for billions of dollars, plus debt forgiveness, all of that coming towards the end of the week. something else we are also watching in the markets, the onrms that pounded the south sunday, and mississippi killing at least six people, a massive storm is centered from chicago to little rock, arkansas, and today could bring destructive power to the east coast. meanwhile, winter storm warnings are in effect from montana through south d

to go to market, a full reopening will be piecemeal, according to minneapolis fed president neel kashkarined of a possible 18 months of rolling shutdowns. so what is going on on the vaccine and therapies front? the world health organization reporting 70 vaccines are in the pipeline, three already being tested in human trials. this includes vaccines from hong kong and u.s. drugmakers, but until measures are approved for use, restrictions are going to continue throughout the world. this includes indonesia. that nation experiencing a surge in infections. the government is pledging more testing. crisis,his global earnings are in full-screen. banks include jp morgan, goldman sachs, and bank of america, and looking ahead, portfolio managers and analysts are issuing a warning that no one really knows what is going on, and also what the endgame and the end date maybe. vonnie: thank you for that. our thanks to viviana hurtado. this is bloomberg. ♪ vonnie: this is "bloomberg markets." coming up in the next hour, we will hear from oaktree capital cochair and cofounder howard marks. ♪ federal reserve

. >> neel kashkari, the fed head of minnesota said yesterday he thinks nation could be facing 18 monthsf rolling shutdowns. many people pointing to the risk of starting this economy up too soon. i think i guess, it is different for north dakota than it is for new york. so is that sort of the thing that will be taken into consideration? just how important will the voices of business leaders be? >> well, it will be, i think, vary somewhat from location to location. what's going to work in a state that really hasn't seen the virus much than a state that has been hit hard and i think we might see some individuals go back to work more quickly. there may be some who feel because of their health conditions, they need to be out a bit longer. obviously legislation the president signed so far from my perspective as labor secretary has been very good supporting workers who need to be out of the work place for health reasons or who have been put out of work through unemployment and need that compensation. so i think we'll continue to consider it on individual basis and regional basis and obviously

. >> well you know, i will have to push back because in all due deference to minneapolis's neel kashkari, he is the "lone ranger" on federal open market committee advocating for negative interest rates. jay powell held a pretty firm line saying he will not go there but what he is doing instead is blowing up the balance sheet as he just spoke about. i don't think negative interest rates in the card for the fed because it would really slam banking in america to a screeching halt and that is the last thing we want to have lending stop. i think he recognizes it has not worked and it has not worked in japan. to your point about the idea, of the whole exit, the fed had a failed attempt at quantitative tightening. they couldn't normalize interest rates. the biggest challenge i think to them is they're never going to be able to unwind the biggest experiment in all of monetary policy history and they're going to stick taxpayers with potential losses because liquidity cannot resolve a solvency problem. cheryl: dangerous game that they're playing. i think a lot of us on this panel actually agree wi

neel kashkari saying we should aped recovery. u a lot of concerns about a -shaped recovery.voter who does not see light at the end of the tunnel that comes to the virus. the reserve port of -- even though he says we will see that rebound, mester says the door is open to more lending programs. she says that the federal reserve we are likely not close to having it all done, but we are always looking for things to do, and if we think something is going to work, we are going to try it. the door is still open. they have various programs in place including repo operations that would have totaled $2.3 trillion when they are all in a new bond with facility, money market fund, all kinds of things. she says she thinks the fed is building a bridge to the recovery. >> what should we be watching out this week? just to see how badly that bridge needs to be built. for the u.s., retail sales is going to be a big one for the month of march. it is supposed to be down 8%. that is a big drop. manufacturing closely watched as well, looking for a loss of or percent -- 4%. it isy this is something

neel kashkari had an op-ed in "the ft" today.ic things banks could do today is to stop paying dividends and raise equity capital to ensure they can sustain during a market downturn." if you are making a point that it is all about the cash on hand, that kind of makes sense. marty: well, you've got to look at what we set up with see car first. ccar was built so that banks could go through stress tests. what regulators have required is that they cannot pull down there dividend. the reason is that to create financial stability, you have to show some stability. the dividend is the one thing that banks can do to show that there is not a panic, that there is some stability built into the system. so the patriotic thing is to take care of your employees and customers, which these banks, as you are seeing in announcements, are doing in major ways that they couldn't do in 2008. so building what we worked on with regulators over the last 10 years, banks are in much stronger positions to be able to do all of the things, defer payments, to be

the say that the fed should start to pressure the banks not to have their dividends and kneneel kashkari d they should raise capital. so the debate rages on even if the message from the ceo continues to say we're going to pay out dividends. we have to wait and see. >> janet yellen thinks they should sus u end it as well. still ahead, lawmakers have yet to reach a deal on small businesses after the initial funding dried up we'll ask tom donohue how much more is needed to keep these afloat and don't miss cnbc's interview with california governor, gavin newsome. we'll be right back with about 36 minutes left of trading [horns honking] birthdays aren't cancelled. hope isn't quarantined. first words aren't delayed. caring isn't postponed. courage isn't on hold. and love hasn't stopped. u.s. bank thanks you for keeping all of our spirits strong. we've donated millions to those in need and are always here for our customers and employees. >>> with the dow up 2%, casinos have been hit hard but shares of las vegas sands give an update contessa >> boy, this is a big deal for a las vegas sands and f

so this morning, in the financial times, neel kashkari wrote he thought those should be suspended and even the banks should seize the moment to raise extra capital right now, while they can where do you stand on that debate for the banks >> so i do think that this is a time where if the banks are anticipating significant losses potential losses going forward, it is time to make sure that their storehouse is full of capital. so withstand that bad time so i'm supportive of the idea that broadly defined that they both retain and possibly build those capital reserves >> so on the dividends, will you be pushing fed chair and your colleagues to tell the banks to do that because my reading of all the commentary we've got out of the banks in the last couple of weeks and then how the buyback suspension came about, was it a lead if not an explicit instruction from the fed, will need a big push, a hint and a nudge in that direction to say guys, cancel the dividends for now. >> so that's obviously up to the board of governors working in concert to decide what that policy is. what i believe is it'

neel kashkari was saying, that tends to be your medical point, doctor, the history of these things, in this case it might be even more pronounced? do you then believe we all should be rolling out of this together or none at all? is there any benefit to a staggered deshelterring plan when those, let's say who do deshelter or ratchet things down, they're free to travel to the places that might still be sheltered, right? >> everybody has a different risk tolerance what they're willing to do and, but i think we have to not only think about ourselves, we have to think about others who we may infect. i don't think there will be one plan to draw everything out based on one city, new york, l.a., wherever we're at. everybody region will be different. tough understand which group you're in. are you in susceptible group, have you been exposed, infected and recovered with antibodies? when we have the testing available where we can see where populations are, then we can make calculated decisions because how do you know where you're going if you don't know where you're at? neil: well-said, well-said

neil kael kashkari made some xcs about the country's ability to reopen in the next couple of days, sayingithout a vaccine we could have 18 months of rolling shutdowns. >> it would be wonderful if a new therapy would be developed in the next couple of months and people could go back to work and get treatment. potentially we would have a v-shaped recovery. barring a health care miracle like that, it seems like we'll have various phases of rolling flareups as we heard from your guests from washington, different parts of the economy turning back on, maybe turning back off again this could be a long, hard road we have ahead of us until we get to an effective therapy or vaccine. it's hard for me to see a v-shaped recovery under that scenario >> jim, too bearish? >> yeah. you have to have testing i know that nancy pelosi says testing, testing, testing. >> that's been the call. but, look, if we know we're okay, and i know -- i hear it, jim, you don't know if you're okay for the next five days. everybody wears a mask we have a lot of testing, then i think you're willing to go out if it turns out t

neel kashkari, the federal reserve bank of minneapolis president is here this weekend of talking abouteopening the economy and what that might look like. >> buying some health care miracle like that it seems like we will have various phases of rolling flareups, different parts of the economy turning back on and then turning back off again. this could be a long hard road that we have ahead of us until we get to either an effective therapy or vaccine. >> sendra: is going to be a huge a balancing act and a huge decision on the part of the president leading us through this. he is suggesting this could be the most important decision he makes of his presidency. maria? >> that's what he said and i think that's why we are talking so much about the testing. in order to get back into the economy and open up all businesses we need to know who has had it, was perhaps immune at this point after having survived it. what we see inoculations when we do get to a vaccine? who's been inoculated? they are talking about something called the digital passport or immunity passport which would just be on your

i welcome today's announcement by the chancellor but does he not accept the view from neil kashkari,t ways. he talked about the us there, the us has no equivalent of our fellow scheme, which is probably the most significant economic intervention we have put in place. it was up and running four weeks after we announced it and is already getting money to businesses as we speak to pay wages. he talked about other european countries. we have now issued more sea bills, loa ns, have now issued more sea bills, loans, than the equivalent scheme in germany. as we look ahead to a gradual lifting of restrictions on business in the coming weeks, will my right honourable friend look for common—sense opportunities, such as allowing open air markets to trade in the same way as supermarkets question mark and will he also look at changes to the furlough scheme to help it to accommodate a gradual return to work? i thank my right honourable friend for his thoughts and comments and i know he has put a lot of personal time and energy into thinking about these things and welcome his engagement. he makes v