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Dow Logs Biggest Point-Drop In History; All Of Italy Now On Lockdown Over Coronavirus; Biden And Sanders Face Off In Six States Today. Aired 5:30-6a ET
Aired March 10, 2020 - 05:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LAURA JARRETT, CNN ANCHOR: Now the president is pushing stimulus measures. Can stocks stage a badly-needed comeback today?
CHRISTINE ROMANS, CNN ANCHOR: A broad impact from the virus around the world. Italy totally shut down, freezing 60 million people in place. But in Asia, numbers appear to be declining.
JARRETT: And, Bernie Sanders faces a pivotal test today if he wants to remain viable in the 2020 race. Can lightning strike twice in Michigan?
Good morning, this is EARLY START. I'm Laura Jarrett.
ROMANS: And I'm Christine Romans. It is 30 minutes past the hour this Tuesday morning.
And more than a year of stock market gains gone in the worst day on Wall Street since the Great Recession. Coronavirus fears and an oil crash viciously taking down stocks around the world.
The Dow closed down more than 2,000 points -- the worst point-drop on record, worst day percentage-wise since October 2008, and it's in the top 20. It's hard to do.
The S&P 500 finished down 7.6 percent. It is now 18 percent below its record high, almost in bear market territory, signaling the end of the 11-year bull market.
Now, numbers plummeting so quickly they triggered a circuit breaker put in place after Black Monday, the crash in 1987. The pause meant to ease panic among investors and it worked for the most part.
Now, President Trump needs these declines to stop. He's used the economy as his personal barometer for success since he was sworn in. The president outlined new economic measures he's considering.
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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I am discussing a possible payroll tax cut or relief -- substantial relief -- very substantial relief that's a big -- that's a big number. We're also going to be talking about hourly wage earners getting help.
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ROMANS: That appears to have helped for now. U.S. futures are up significantly, although 24,824 -- the level on the Dow. Still, a year of gains gone.
Overnight in Asia, you saw some stabilization there. And European shares have bounced here.
Trump is focusing on hourly employees because they are the most vulnerable. They ferry groceries, passengers, hot meals. They can't work from home. Many of them are not paid if they're sick, so they go to work -- and that could spread the virus.
There are two problems for Trump here. One, Senate Republicans are cool to new economic stimulus proposals. And two, even in the really strong economy the administration has already done things usually reserved for downtimes.
He cut taxes in 2017. The federal deficit is already ballooning over $1 trillion. And remember in India two weeks ago when Trump tweeted, "Stock market starting to look very good to me!"? Since that tweet, stocks are down 14 percent.
JARRETT: The White House says President Trump has not been tested for coronavirus even though he came in close contact with several lawmakers who are self-quarantined this morning. Those lawmakers had contact with someone at CPAC, that recent conservative conference, and that person later tested positive for coronavirus.
Florida Congressman Matt Gaetz rode on Air Force One with President Trump on Monday as he found out about his own possible exposure to the virus after spending the weekend at Trump's Mar-a-Lago property. He made headlines last week when he wore a gas mask on the house floor.
ROMANS: All right. Congressman Doug Collins also joined Trump during a visit to the CDC on Friday. Photos from that day show the Georgia lawmaker shaking the president's hand in close proximity on the tarmac.
And the incoming White House chief of staff, Congressman Mark Meadows of North Carolina, also in voluntary isolation, though he hasn't had recent close contact with the president.
Later today, the Trump campaign will announce plans to hold a rally in coming days, insisting it is proceeding as normal during the coronavirus pandemic.
JARRETT: All of Italy on lockdown this morning. The prime minister extending travel restrictions to the entire country through April third because of the coronavirus pandemic. The order affects 60 million people. A response far more aggressive than the American approach, so far.
Let's go live to Rome and bring in CNN's Delia Gallagher. Delia, even though there is a lockdown, people can still get goods and services, right?
DELIA GALLAGHER, CNN INTERNATIONAL CORRESPONDENT: Well, that's right, and that was the concern with people last night when the prime minister made this announcement. There was a rush on supermarkets. They were afraid they weren't going to be able to buy anything anymore. The government is assuring them that transported goods will still continue, so they're trying to quell those concerns.
But what it means essentially is that people are encouraged to stay indoors as much as possible and not even congregate in small groups outside -- so, in public places, parks, and so on. Restaurants and cafes are still open but they have to close by 6:00 in the evening.
Pope Francis, this morning, slightly bucking the trend, telling his priests to go out and be with the sick. He's doing a livestream of a private mass from his residence for the period of the lockdown because, of course, masses have been suspended throughout Italy.
Major concern for the health infrastructure of this country. We spoke to the coordinator of the intensive care units in Lombardi. Lombardi -- Milan is located in Lombardi. And he said that they are really reaching a critical point near collapse. He said they are putting patients in corridors and have a tsunami of patients.
So, doctors I spoke to at hospitals here in Rome yesterday said they actually welcome a lockdown because they don't have the same kind of infrastructure that Milan has. We're up to about 9,000 cases now and Milan has more than half of them. So in other regions of Italy, the concern for hospitals is if those numbers rise in their regions they won't be able to support it.
We also saw yesterday riots in prisons. In some 22 prisons across the country, inmates escaped. We are waiting to hear if all of them have returned to their prisons -- Laura.
JARRETT: All right, Delia. Thanks so much.
ROMANS: All right.
The oil market crashed yesterday, the worst day in nearly 30 years since the start of the Gulf War. What happened? Well, the U.S. production boom has made America the biggest oil producer in the world, so oil prices hurt oil producers here.
A fight between Russia and Saudi Arabia was the spark. Russian President Vladimir Putin walked away from a deal with the Saudis. To cut supply for the U.S. would fill the gap and steal market share. An oil glut is expected and oil prices promptly crashed.
President Trump spinning this all as "Good for the consumer. Gasoline prices coming down!" But there's no doubt the crash will be far more damaging to the U.S. economy than past plunges. CNN's John Defterios joins us live from London. I mean, yesterday was kind of a crazy day on the markets but it really bears repeating that this was unprecedented, what you saw in the oil market yesterday.
JOHN DEFTERIOS, CNN ANCHOR: Incredible, Christine. Twenty-four percent in one single day; 50 percent since the start of the year. And we're seeing a slight recovery of around two percent. We were as high as eight percent in Asia but those gains have been quickly wiped away.
I think the president talking about the discount at the pump is hardly going to register with the American citizen though, to be frank, because of the pandemic taking shape not only in the United States but as we saw here throughout Europe as well.
We also have to look at the big numbers of the impact of the oil drop on the oil and gas sector in the United States. We've doubled production in the United States over the last decade -- unprecedented -- 1 1/2 million direct jobs. You have to multiply that Christine by about 10 because of hotels and restaurants, real estate, car dealerships all related to the big boom that we've seen.
The U.S. is also a major L&G gas exporter now coming out of east Texas and another terminal at Corpus Christie.
So this plummet down to around $30.00 a barrel will play out. They're not the small and medium-sized enterprises that we've seen over the last two decades being developed in the United States, but the majors are in there.
But the pressure from Wall Street -- we saw the big international oil companies see their stocks plummet yesterday on Wall Street. They need 15 percent return on capital -- that's the benchmark -- and they can't produce oil for the sake of having high production. You have to have high profit margin. And this is the test right now that we see playing out because of the geopolitics.
ROMANS: All right, John Defterios. Thank you so much for that. Glad you're watching it for us this morning -- thanks.
JARRETT: All right. Coming up, Bernie Sanders needs a big night tonight in Michigan or his campaign will have a tough choice to make. Can he pull off another surprise to slow Joe Biden's momentum?
JARRETT: A live look coming here at the Diamond Princess cruise ship, finally docked in California after almost a week in limbo at sea. Some passengers from the coronavirus-stricken cruise ship arrived at Travis Air Force Base in Fairfield, California late last night. All could be seen wearing face masks.
The ship finally pulling into the Port of Oakland with ambulances waiting there for them. Thirty-five hundred passengers onboard all getting an initial screening. People with acute medical needs were first off that ship. Disembarkation resumes this morning.
California residents will head to two Air Force bases in the state, including Travis. Other American passengers will go to bases in Texas and in Georgia. All will undergo testing and a 14-day quarantine.
ROMANS: All right, an update now on the U.S. There are 731 confirmed cases and 26 deaths in 36 states and D.C. According to a new study, coronavirus symptoms usually take five days to appear. That could explain why it's spreading undetected in some cases.
Based on available information, CNN calculates the vast majority of deaths in the U.S. involve patients age 70 years old and higher.
JARRETT: In California, Santa Clara County has banned public gatherings of 1,000 people or more for three weeks. That includes Mountain View, Palo Alto, and San Jose.
The NHL's San Jose Sharks have scheduled home games a week from Thursday.
ROMANS: Universities across the country are taking precautions. Some have canceled classes; others have moved them online. Overnight, Ohio State suspended in-person classes until the end of March for all 66,000 students.
JARRETT: "WHEEL OF FORTUNE" and "JEOPARDY!" have decided to nix studio audiences. Hosts Alex Trebek and Pat Sajak both have underlying health issues.
And, Boston has canceled its 2020 St. Patrick's Day parade out of an abundance of caution. That's how you know it's serious.
JARRETT: Ireland canceling St. Patrick's Day parades over coronavirus concerns as well.
Well, coronavirus could also play a role in today's Democratic votes. Washington State has 180 cases and 22 deaths. Washington is a vote-by- mail state -- 4 1/2 billion ballots sent. Only a third have been returned -- far lower than other states.
ROMANS: Biden versus Sanders in Super Tuesday II presidential contests today in six states. Bernie Sanders got a major bump in Michigan in 2016 -- a surprise win that foreshadowed Democrats' struggles to lure working-class voters. Today's result could make or break Sanders' 2020 campaign.
JARRETT: All right. Karen Finney joins us live from Washington. She's former communications director for the DNC, former senior spokesperson for the Hillary Clinton campaign, and a CNN political commentator. Thanks so much for getting up with us, Karen.
ROMANS: Good morning, Karen. KAREN FINNEY, CNN POLITICAL COMMENTATOR, FORMER COMMUNICATIONS DIRECTOR, DNC, FORMER SENIOR SPOKESPERSON, HILLARY CLINTON CAMPAIGN: Great to be with you.
JARRETT: All right. So tonight is the night for --
JARRETT: -- Bernie Sanders' campaign. He won back in 2016 over Clinton. But now is a different time and his unfavorability ratings seem to be going up. It's a little bit of a question there about why exactly.
But if, in fact, Biden wins tonight -- and nobody knows what will happen -- but if, in fact, Biden does win tonight can Sanders survive?
FINNEY: Well, it depends and I'll tell you why. You know, if Sanders has a good night and Biden wins by let's say a small margin, and Sanders is still able to do well -- and particularly in different parts of Michigan -- then I think he's -- he is going to be fine.
However, if we see what we saw last Tuesday -- which our own David Chalian pointed out quite eloquently -- which is the erosion of support for Sen. Sanders in some of those middle states -- Super Tuesday states -- among white working-class voters --
FINNEY: -- then that's a problem. Because remember, part of Sen. Sanders' message is he's going to bring together this broad coalition. He's struggled with African-American voters. He's done very well with Latino voters.
But if he's losing support among white working-class voters -- which frankly, that is a -- that is a group that is also very open to Joe Biden and his message -- then it becomes harder, I think, for Sen. Sanders to make the argument that he's the guy to bring all these --
FINNEY: -- different groups together.
ROMANS: And has he been able to galvanize young people? I think yes, but is he getting them to the polls? I mean, you look at --
ROMANS: -- 2016 versus 2020 and the percent of young voters -- the electorate. You can see they're just -- they're not -- they're not there in the numbers --
ROMANS: -- that you would like to see.
Let's talk about Joe Biden here for a minute because last night he had a -- he had a rally that had long, long lines, tables of Purell, which people were using. He had Senators Kamala Harris and Cory Booker. And it was a -- it was a big energetic event.
I've noticed recently that he has been a little more concise in his comments. He's not talking for as long. Is this a more disciplined candidate?
FINNEY: Let's hope so. I mean, you know, one of the challenges that Vice President Biden has had in the beginning is this ability to be -- to -- you know, to be energetic and excited and visionary and focused. And so, I think certainly, coming out of Super Tuesday whereas he had a fantastic night, the question is can he continue -- can he keep it going, right?
And so, I suspect that this is part of an effort to say yes, he can and to show a very polished campaign and a campaign that is ready to keep moving forward. Because remember -- I mean, this is -- we're still pretty early on in this process both in terms of the primary, but then we've got a whole general election to get through. So, Vice President Biden's got to show that the guy that we've seen since Super Tuesday and since South Carolina can go all the way to November with that energy and enthusiasm.
JARRETT: Well, certainly, the wind is at his back right now.
JARRETT: Karen, I want to pivot if we could to what is happening with how this White House is still trying to get its arms around the coronavirus situation.
JARRETT: We saw another briefing at the White House last night with the president and vice president.
ROMANS: Also more disciplined, actually, than we've seen recently.
JARRETT: Yes. Well, for now, right?
JARRETT: It's always a matter of well, how long is that going to last?
But it's interesting. You know, the president mentioned a possible payroll tax cut. Also, help for hourly wage workers. The meat on the bones on that remains to be seen.
Those are not typical policies that Republicans might be interested in backing --
JARRETT: -- and the reporting that we're hearing from our team on Capitol Hill is that Republicans are cool to those prospects. I mean, how is he going to sell this?
FINNEY: Well, it will be interesting to see. I think where Republicans in Congress are going to get pressure is from their constituents.
FINNEY: So if they get that pressure from their constituents and there are some ideas on the table, they might just change their tune and warm up to those ideas, right?
FINNEY: And particularly, as this goes along, as our own experts have said, we don't quite know where -- you know, this could get worse. They expect it will get worse. We don't know where that's going to be.
It's just -- I'll tell you what was interesting, I thought, about the press conference yesterday with those announcements is it suggests that behind the scenes they are very worried about the economy --
FINNEY: -- and they're very worried about what toll this is going to take.
We've had some discrepancies between what President Trump has said and what others have said on a number of elements to this crisis and so that just suggested to me that they are concerned. And obviously, you know better than anyone Christine in terms of the long-term impact that this could have.
ROMANS: Yes. I was interested because the president said they're looking very strongly -- is how he said it -- at cruise ships and airlines. And for a minute there I thought is he -- is he talking about a cruise industry bailout?
ROMANS: I mean, the party that was --
ROMANS: -- appalled at bailing out the auto industry, right?
ROMANS: I mean, are we talking about bailing out cruise lines?
For the guy who just recently has said this is the strongest economy in the history of mankind, I just wonder how he sells that to his party or if they're ready to just spend money, Karen.
FINNEY: Well, you know, we'll see. I mean, again, I think if things continue to get worse and we see the kinds of volatility that we've seen in the market, he's going to have to do something because he was planning on running on a strong economy and you can't do that when people are looking at those kinds of numbers on a daily basis.
FINNEY: So they may not want to but they may just have to do some real stimulus.
And, you know -- but the thing that strikes me over and over again -- yes, we're talking about the cruise line industry now but that's not -- you know, when you're looking at a city like New York City or you're looking at some of the states that are now taking broader action --
FINNEY: -- it's going to be much more than just one industry that we're going to have to be looking at.
ROMANS: Yes, and each of those industries has all kinds of -- all kinds of other industries that depend on it.
FINNEY: That's right.
ROMANS: So it's -- it shows you that a 2,000-point drop in the Dow really got their attention. I think that's what it tells you.
FINNEY: Oh, it sure did.
ROMANS: All right, Karen Finney, former senior spokesperson for Hillary for America and CNN political commentator. Really nice to see you.
JARRETT: Thanks, Karen.
ROMANS: Thanks for getting up early for us.
FINNEY: Good to see you guys. You bet.
ROMANS: All right, let's take a look at global markets, speaking of money. OK, you've got a rebound -- stabilization, I would call it, in Asian shares. They're all closed now. Europe opened and has been building on gains all session.
On Wall Street, a bounce back is in the cards if it can hold here. That would be a significant bounce back -- 1,000 points. Look, still, you are way down from the recent peak and still below 25,000 on the Dow. But a bounce back is something you want to see.
Look, it was a chaotic day for investors. Coronavirus fears and an oil crash sparked a huge sell-off. The Dow logged its worst day since October 2008. The S&P 500 down an unbelievable seven percent. It is now 18 percent below its record high, very close to wiping out the 11- year-old bull market.
We'll be right back.
JARRETT: Acting Director of National Intelligence Richard Grenell will not appear before Congress today for classified briefings on election security. Grenell tells CNN the intention was always to send experts. However, his office won't say why his name was on a list of panelists sent to lawmakers.
Grenell remains the acting intel chief despite having no experience in the area.
Harry and Meghan attending their final event as senior members of the royal family. The duke and duchess joining Harry's grandmother, the queen, of course, and other family members for the annual Commonwealth Service at Westminster Abby. The engagement marked the first time Meghan and the queen have been seen together since she and Prince Harry announced in January they were stepping back from their royal life.
And, a major legal victory for the classic rock group Led Zeppelin. A federal appeals court ruling the group did not steal the classic "Stairway to Heaven" opening the tar (ph) riff from this song.
(BEGIN VIDEO CLIP)
LED ZEPPELIN, "STAIRWAY TO HEAVEN."
(END VIDEO CLIP)
JARRETT: That song "Taurus" was written by Randy Wolfe of the band "Spirit." Wolfe died back in 1997 but his estate sued Led Zeppelin for potentially millions, alleging copyright infringement.
While you were sleeping, late-night took on President Trump's rosy take on the coronavirus pandemic.
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JAMES CORDEN, HOST, CBS "THE LATE LATE SHOW WITH JAMES CORDEN": Trump says he has a natural ability to understand the coronavirus. Well, let's see -- nobody likes it, half the world is afraid of it. I can see why he can relate.
JIMMY FALLON, HOST, NBC "THE TONIGHT SHOW STARRING JIMMY FALLON": The stock market tanked this morning. Trump tweeted, "Good for the consumer. Gasoline prices coming down!"
That's like the Titanic sinking and the captain yelling good news, free deck chairs. Take as much as you want.
Don't worry about it -- free -- free. Take five, sure. I don't care. STEPHEN COLBERT, HOST, CBS "THE LATE SHOW WITH STEPHEN COLBERT": Things are worse overseas. The Italian government has just quarantined the entire country -- yes. Even the Olive Garden just changed their slogan to "When you're here, why are you here? You're going to give us coronavirus!"
(END VIDEO CLIP)
JARRETT: Thanks so much for joining us. I'm Laura Jarrett. "NEW DAY" starts right now.
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ALISON KOSIK, CNN BUSINESS CORRESPONDENT AND ANCHOR: An historic day on Wall Street. Measures were taken to halt trading for 15 minutes after the opening bell as stocks fell too far, too fast.
RICHARD QUEST, CNN ANCHOR AND CORRESPONDENT: True carnage. This was a disastrous day on the market.
UNIDENTIFIED MALE: The virus now in more than 30 states.
UNIDENTIFIED FEMALE: The Grand Princess arriving in California.
MIKE PENCE, VICE PRESIDENT OF THE UNITED STATES: All the passengers will be tested and quarantined as appropriate.
UNIDENTIFIED MALE: All of Italy is now effectively a red zone.
CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL ANCHOR: The worsening situation across Europe is leading to a collapse in tourism.
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ANNOUNCER: This is NEW DAY with Alisyn Camerota and John Berman.
ALISYN CAMEROTA, CNN ANCHOR: We want to welcome our viewers in the United States and all around the world. This is NEW DAY. It is Tuesday, March 10th, 6:00 here in New York.
Monday was the single-worst day on Wall Street since the crash of 2008. But this morning, U.S. stock futures are pointing to a big bounce at the opening bell. Look at that number right now, up more than 1,000 points.
The markets are reacting to President Trump floating the idea of a payroll tax cut.