UP NEXT, W >>> THIS MORNING U.S. STOCK
>>> THIS MORNING U.S. STOCK FUTURES ARE POINTING TOWARD YET
FUTURES ARE POINTING TOWARD YET ANOTHER LOW OPEN.
ANOTHER LOW OPEN. A DAY AFTER THE DOW BRIEFLY
A DAY AFTER THE DOW BRIEFLY DROPPED DOWN SO LOW IT ERASED
DROPPED DOWN SO LOW IT ERASED ALL OF ITS GAINS DURING THE
ALL OF ITS GAINS DURING THE TRUMP PRESIDENT CITYCY.
TRUMP PRESIDENT CITYCY. AND YOU ARE PEA AN
AND YOU ARE PEA AN EUROPEAN MARKETS ARE OFF TO A
EUROPEAN MARKETS ARE OFF TO A STRONG START AS THEY ANNOUNCE
STRONG START AS THEY ANNOUNCE THAT THEY WILL BUY BONDS TO EASE
THAT THEY WILL BUY BONDS TO EASE MARKETS.
MARKETS. BUT EASED OFF THROUGHOUT THE
BUT EASED OFF THROUGHOUT THE DAY.
DAY. AND YESTERDAY THE ASIAN STOCK
AND YESTERDAY THE ASIAN STOCK MARKET INDEX REACHED AS LOW AS
MARKET INDEX REACHED AS LOW AS 4.1%, ITS LOWEST POINT SINCE
4.1%, ITS LOWEST POINT SINCE 2016.
2016. JOINING US NOW FINANCIAL EDITOR
JOINING US NOW FINANCIAL EDITOR OF THE "WALL STREET JOURNAL"
OF THE "WALL STREET JOURNAL" CHARLES PHARRELL AND ALSO ZANY
CHARLES PHARRELL AND ALSO ZANY BEDDOWS.
BEDDOWS. >> AND WHAT DOES THE CENTRAL
>> AND WHAT DOES THE CENTRAL BANK LOOK TO DOING IN THE COMING
BANK LOOK TO DOING IN THE COMING WUK
WUK WEEKS TO CALM THE JIT TERSE AND
WEEKS TO CALM THE JIT TERSE AND IS THERE A FEELING THAT EUROPE
IS THERE A FEELING THAT EUROPE IS HANDLING THIS ECONOMIC VICIS
IS HANDLING THIS ECONOMIC VICIS ANY BETTER THAN THE UNITED
ANY BETTER THAN THE UNITED STATES?
STATES? >> WELL, THE EUROPEAN CENTRAL
>> WELL, THE EUROPEAN CENTRAL BANK AS YOU SAID CAME IN BIG
BANK AS YOU SAID CAME IN BIG LAST NIGHT WITH A 750 BILLION
LAST NIGHT WITH A 750 BILLION EURO PROMISE TO BUY MORE BONDS.
EURO PROMISE TO BUY MORE BONDS. AND THAT WAS IN SOME WAY MAKING
AND THAT WAS IN SOME WAY MAKING UP FOR THE FACT THAT AT THE END
UP FOR THE FACT THAT AT THE END OF LAST WEEK, THE PRESIDENT OF
OF LAST WEEK, THE PRESIDENT OF THE CENTRAL BANK HAD NOT REALLY
THE CENTRAL BANK HAD NOT REALLY HELPED MATTERS BY SOUNDING LESS
HELPED MATTERS BY SOUNDING LESS THAN EQUIVOCAL ABOUT DOING WHAT
THAN EQUIVOCAL ABOUT DOING WHAT IT TAKES TO HOLD EUROPE
IT TAKES TO HOLD EUROPE TOGETHER.
TOGETHER. AND NOW SOUNDING MUCH STRONGER.
AND NOW SOUNDING MUCH STRONGER. BUT I’M NOT SURE THAT EUROPE IS
BUT I’M NOT SURE THAT EUROPE IS HANDLING THIS.
HANDLING THIS. YOU CAN SEE I’M COMING TO FROM
YOU CAN SEE I’M COMING TO FROM YOU HOME.
YOU HOME. THIS IS THE FIRST WEEK THAT
THIS IS THE FIRST WEEK THAT WE’VE PUT ECONOMISTS TOGETHER
WE’VE PUT ECONOMISTS TOGETHER COMPLETELY REMOTELY.
COMPLETELY REMOTELY. AND THERE ARE A LOT OF
AND THERE ARE A LOT OF DISCUSSIONS OF LOCKDOWN WITHIN
DISCUSSIONS OF LOCKDOWN WITHIN 24 HOURS.
24 HOURS. AND SO GOES IT ACROSS EUROPE.
AND SO GOES IT ACROSS EUROPE. ITALY AS YOU KNOW IS THE
ITALY AS YOU KNOW IS THE EPICENTER AND EUROPE GOVERNMENTS
EPICENTER AND EUROPE GOVERNMENTS ARE WAY BEHIND THE CURVE IN
ARE WAY BEHIND THE CURVE IN TERMS OF THE AMOUNT OF ESTIMATES
TERMS OF THE AMOUNT OF ESTIMATES >> AND CHARLES, PROPOSALS THAT H
>> AND CHARLES, PROPOSALS THAT H FLOATED OUT THERE.
FLOATED OUT THERE. WE’RE A $21 TRILLION ECONOMY.
WE’RE A $21 TRILLION ECONOMY. IF THAT ECONOMY IS SHUT DOWN FOR
IF THAT ECONOMY IS SHUT DOWN FOR THREE OR FOUR MONTHS, $1
THREE OR FOUR MONTHS, $1 TRILLION SUDDENLY, I CAN’T
TRILLION SUDDENLY, I CAN’T BELIEVE I’M SAYING THIS, AS A
BELIEVE I’M SAYING THIS, AS A SMALL GOVERNMENT CONSERVATIVE,
SMALL GOVERNMENT CONSERVATIVE, BUT A $1 TRILLION RELIEF PACKAGE
BUT A $1 TRILLION RELIEF PACKAGE SUDDENLY SOUNDS LIKE A DROP IN
SUDDENLY SOUNDS LIKE A DROP IN THE BUCKET FOR A $21 TRILLION
THE BUCKET FOR A $21 TRILLION ECONOMY SHUT DOWN FOR HALF A
ECONOMY SHUT DOWN FOR HALF A YEAR.
YEAR. >> THE NUMBERS ARE SIMPLY BEYOND
>> THE NUMBERS ARE SIMPLY BEYOND ANYTHING THAT ANYBODY HAS SEEN
ANYTHING THAT ANYBODY HAS SEEN OR REALLY CAN CONCEIVE.
OR REALLY CAN CONCEIVE. IT’S AN ENORMOUS STOP IN THE
IT’S AN ENORMOUS STOP IN THE ECONOMY.
ECONOMY. IT’S A REAL STOP.
IT’S A REAL STOP. IT’S NOT JUST THAT THERE ARE
IT’S NOT JUST THAT THERE ARE SOME SECTORS SLOWING.
SOME SECTORS SLOWING. IT’S A FULL-ON STOP.
IT’S A FULL-ON STOP. AND IT’S GOING TO BE VERY
AND IT’S GOING TO BE VERY DIFFICULT TO FIGURE OUT HOW YOU
DIFFICULT TO FIGURE OUT HOW YOU FIND THE DEMAND, HOW YOU FIND
FIND THE DEMAND, HOW YOU FIND THE MONEY TO TIDE THE ECONOMY
THE MONEY TO TIDE THE ECONOMY OVER DURING THAT PERIOD.
OVER DURING THAT PERIOD. THE REAL QUESTION, I THINK, IS,
THE REAL QUESTION, I THINK, IS, LET’S ASSUME THAT THINGS REOPEN
LET’S ASSUME THAT THINGS REOPEN AND WE DON’T END UP IN A VERY
AND WE DON’T END UP IN A VERY BAD SPIRAL.
BAD SPIRAL. WHAT DOES THE ECONOMY LOOK LIKE
WHAT DOES THE ECONOMY LOOK LIKE WHEN IT GETS BACK, AND WHAT CAN
WHEN IT GETS BACK, AND WHAT CAN YOU DO NOW TO MAKE SURE WHEN IT
YOU DO NOW TO MAKE SURE WHEN IT DOES REOPEN AND REOPENS IN AS
DOES REOPEN AND REOPENS IN AS GOOD A POSITION AS IT CAN BE.
GOOD A POSITION AS IT CAN BE. IT’S GOING TO BE HARD.
IT’S GOING TO BE HARD. THE NUMBERS ARE ENORMOUS.
THE NUMBERS ARE ENORMOUS. >> IT’S JONATHAN LEMIRE.
>> IT’S JONATHAN LEMIRE. WE HEARD SENATOR MANCHIN SUGGEST
WE HEARD SENATOR MANCHIN SUGGEST THAT WALL STREET CLOSE FOR A
THAT WALL STREET CLOSE FOR A COUPLE OF DAYS.
COUPLE OF DAYS. HE SUGGESTED IT WASN’T AN
HE SUGGESTED IT WASN’T AN ESSENTIAL BUSINESS RIGHT NOW.
ESSENTIAL BUSINESS RIGHT NOW. THE WHITE HOUSE IS VERY OPPOSED
THE WHITE HOUSE IS VERY OPPOSED TO THAT.
TO THAT. WE HEARD TREASURE SECRETARY
WE HEARD TREASURE SECRETARY MNUCHIN SAY THERE’S SOME TALK OF
MNUCHIN SAY THERE’S SOME TALK OF PERHAPS REDUCING HOURS BUT HE
PERHAPS REDUCING HOURS BUT HE DIDN’T WANT TO CLOSE THE MARKETS
DIDN’T WANT TO CLOSE THE MARKETS FOR FEARS OF WHAT MESSAGE THAT
FOR FEARS OF WHAT MESSAGE THAT WOULD SEND.
WOULD SEND. WHAT’S YOUR TAKE ON THAT?
WHAT’S YOUR TAKE ON THAT? SHOULD THE MARKETS CLOSE FOR A
SHOULD THE MARKETS CLOSE FOR A FEW DAYS?
FEW DAYS? WOULD THAT STEADY THINGS AND LET
WOULD THAT STEADY THINGS AND LET EVERYBODY COOL OFF?
EVERYBODY COOL OFF? >> I DON’T THINK CLOSING MARKETS
>> I DON’T THINK CLOSING MARKETS STEADIES THINGS.
STEADIES THINGS. IT REINFORCES THE FEELING OF
IT REINFORCES THE FEELING OF PANIC.
PANIC. CLOSING DOWN FINANCIAL
CLOSING DOWN FINANCIAL SYSTEMS -- WHAT WE HAVE RIGHT
SYSTEMS -- WHAT WE HAVE RIGHT NOW, THE REASON EVERYBODY IS IN
NOW, THE REASON EVERYBODY IS IN A PANIC IS WE HAVE A TOTAL LACK
A PANIC IS WE HAVE A TOTAL LACK OF UNDERSTANDING OF HOW FAR THIS
OF UNDERSTANDING OF HOW FAR THIS COULD GO AND THE WORLD ECONOMY
COULD GO AND THE WORLD ECONOMY IS LITERALLY SHUTTING DOWN, AND
IS LITERALLY SHUTTING DOWN, AND WE DON’T KNOW FOR HOW LONG, AND
WE DON’T KNOW FOR HOW LONG, AND WE DON’T KNOW WHEN OR WHEN IT
WE DON’T KNOW WHEN OR WHEN IT DOES EMERGE FROM THIS, WHETHER
DOES EMERGE FROM THIS, WHETHER IT WILL HAPPEN AGAIN.
IT WILL HAPPEN AGAIN. ONE OF THE STRIKING THINGS WE’RE
ONE OF THE STRIKING THINGS WE’RE LEARNING AS WE FIND OUT MORE
LEARNING AS WE FIND OUT MORE ABOUT THIS VIRUS AND THE LATEST
ABOUT THIS VIRUS AND THE LATEST MODELING THAT’S DONE SUGGESTS
MODELING THAT’S DONE SUGGESTS THAT, YES, YOU CAN SUPPRESS
THAT, YES, YOU CAN SUPPRESS INFECTION RATES IF YOU SHUT DOWN
INFECTION RATES IF YOU SHUT DOWN THE ENTIRE SOCIETY, BUT
THE ENTIRE SOCIETY, BUT PROBABLY, BECAUSE IT’S NOW SO
PROBABLY, BECAUSE IT’S NOW SO WIDESPREAD, IT’S GOING TO COME
WIDESPREAD, IT’S GOING TO COME BACK AGAIN.
BACK AGAIN. SO ARE WE GOING TO HAVE THIS
SO ARE WE GOING TO HAVE THIS INTERMITTENTLY UNTIL WE FIND --
INTERMITTENTLY UNTIL WE FIND -- NO ONE CAN GET THEIR HEAD AROUND
NO ONE CAN GET THEIR HEAD AROUND WHAT THAT MEANS OR IF, AT SOME
WHAT THAT MEANS OR IF, AT SOME POINT, YOU HAVE TO TOLERATE, YOU
POINT, YOU HAVE TO TOLERATE, YOU KNOW, MORE CASUALTIES FROM THE
KNOW, MORE CASUALTIES FROM THE VIRUS TO PREVENT THE --
VIRUS TO PREVENT THE -- >> CHARLES, IN THE UNITED
>> CHARLES, IN THE UNITED STATES, IF YOU LOOK AT WHAT’S
STATES, IF YOU LOOK AT WHAT’S BEEN HAPPENING WITH WALL STREET,
BEEN HAPPENING WITH WALL STREET, IT SEEMS EVERY MASSIVE DECLINE
IT SEEMS EVERY MASSIVE DECLINE IS FOLLOWED THE NEXT DAY BY AT
IS FOLLOWED THE NEXT DAY BY AT LEAST A TEMPORARY SPIKE UP.
LEAST A TEMPORARY SPIKE UP. PEOPLE OBVIOUSLY HAVE BEEN
PEOPLE OBVIOUSLY HAVE BEEN TRYING TO TIME THE BOTTOM OF
TRYING TO TIME THE BOTTOM OF THIS MARKET, AND IT HAS JUST
THIS MARKET, AND IT HAS JUST CRASHED FROM 29,000, 26,000 TO
CRASHED FROM 29,000, 26,000 TO 23,000 AND NOW OBVIOUSLY AT
23,000 AND NOW OBVIOUSLY AT 19,000.
19,000. ARE YOU GETTING A SENSE THAT THE
ARE YOU GETTING A SENSE THAT THE PEOPLE YOU TALK TO BELIEVE THAT
PEOPLE YOU TALK TO BELIEVE THAT WE’RE ABOUT TO SETTLE ON THE
WE’RE ABOUT TO SETTLE ON THE BOTTOM OF THIS MARKET OR DO THEY
BOTTOM OF THIS MARKET OR DO THEY BELIEVE THERE’S STILL A LONG WAY
BELIEVE THERE’S STILL A LONG WAY TO GO?
TO GO? >> NO, I DON’T GET THE SENSE
>> NO, I DON’T GET THE SENSE THAT PEOPLE BELIEVE WE’RE --
THAT PEOPLE BELIEVE WE’RE -- THAT WE CAN KNOW WE’RE AT A
THAT WE CAN KNOW WE’RE AT A SETTLING POINT.
SETTLING POINT. THERE HAVE BEEN DOWN DAYS AND UP
THERE HAVE BEEN DOWN DAYS AND UP DAYS.
DAYS. THE DOWN DAYS HAVE GREATLY
THE DOWN DAYS HAVE GREATLY OUTNUMBERED THE UP DAYS.
OUTNUMBERED THE UP DAYS. THE VOLATILITY ON THE DOWN SIDE
THE VOLATILITY ON THE DOWN SIDE AND ON THE UP SIDE MAKES TRADERS
AND ON THE UP SIDE MAKES TRADERS AND INVESTORS WORRY.
AND INVESTORS WORRY. IT GIVES YOU A SENSE WHAT YOU
IT GIVES YOU A SENSE WHAT YOU THOUGHT THE RISK LEVEL THAT YOU
THOUGHT THE RISK LEVEL THAT YOU THOUGHT YOU HAD IN YOUR
THOUGHT YOU HAD IN YOUR PORTFOLIO, YOU THOUGHT THE STOCK
PORTFOLIO, YOU THOUGHT THE STOCK OR THE BOND THAT YOU HELD WOULD
OR THE BOND THAT YOU HELD WOULD MOVE X PERCENT AND YOU SEE IT
MOVE X PERCENT AND YOU SEE IT MOVING MANY MULTIPLES OF THAT,
MOVING MANY MULTIPLES OF THAT, YOU HAVE TO TAKE RISK OFF.
YOU HAVE TO TAKE RISK OFF. YOU HAVE TO INVEST IN LESS RISKY
YOU HAVE TO INVEST IN LESS RISKY STUFF.
STUFF. THAT’S WHY WE SEE THIS FLIGHT TO
THAT’S WHY WE SEE THIS FLIGHT TO CASH.
CASH. SO IN A SENSE, THE SELLING --
SO IN A SENSE, THE SELLING -- STOCKS ARE DOWN BECAUSE PEOPLE
STOCKS ARE DOWN BECAUSE PEOPLE ARE SELLING AND PEOPLE ARE
ARE SELLING AND PEOPLE ARE SELLING BECAUSE STOCKS ARE DOWN.
SELLING BECAUSE STOCKS ARE DOWN. THERE’S A CYCLE HERE.
THERE’S A CYCLE HERE. NOBODY KNOWS WHEN IT’S GOING TO
NOBODY KNOWS WHEN IT’S GOING TO BREAK.
BREAK. >> "THE WALL STREET JOURNAL’S"
