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tv   Maria Bartiromos Wall Street  FOX Business  April 5, 2020 11:00am-11:30am EDT

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and i really appreciate the time. it's so interesting hearing the life story of somebody who wasn't handed something and what you've done is awesome. thank you, buddy, i appreciate it. - thank you so much. - likewise. >> from the fox studios in new york city, this is maria bartiromo's "wall street." maria: happy weekend, everybody. welcome to the program that analyzes the week that was and helps position you for the week ahead, and what a week it was. thanks for joining me, i'm maria bartiromo. coming up, we will talk about the coronavirus and its impact. the ceo of 3m, mike roman, is here to talk about the need to produce more medical supplies to combat the covid-19 pandemic and why president trump is calling out 3m for its production of respirators. the u.s. economy lost 701,000 jobs in the month of march. that was the steepest decline in jobs since 2009.
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the unemployment rate rose to 4.4%. however, on mornings with maria this week, i spoke with the former president of the atlanta federal reserve, and he told me that the unemployment rate is much closer to 10% than 3.8% given we did see.6 million unemployment benefits this past week. joining me now to discuss the backdrop and the markets and investing around it is the alpha one capital partners founding partner dan nice. and, dan -- niles, and it is good to see you. we're going to get into the health part of this and, of course, what corporations are doing, including 3m, but i want to ask you about these markets. how would you look at the jobs numbers and your expectation in terms of when things might come back? >> sure. i mean, i think that's really the key to the market, is jobs. as you pointed out earlier, you lost 3.3 million jobs two weeks ago, then the most recent week you had 6.6 million.
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and the funny thing is that as you get into april and may, that's when corporations, the big ones, are really going to decide what to do. don't forget, most of this damage was inflicted in the month of march. so as the first quarter ends, now companies are trying to figure out, okay, who do i lay off, who do i furlough, etc. and i fully expect unemployment to be well over 10%. to me, the only question is does it peak out at over 20%. so that's the thing i'm focused on, which is why i don't think the market has seen the bottom. we just saw a bear market rally, which is pretty common, and we'll see where it goes. maria: so you are expecting further losses. you've been able to navigate this market quite effectively. i was reading the letter that you wrote to your investors in the last month, and you said given this march is the worst month in history since the great depression, i wanted to give you an unaudited estimate as to where we stand today. in fact, for the month of march
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and the expectations for the month of april, you're beating what the s&p 500 is doing, right? >> yeah. i can't get into too specific about our performance given the fund's private registration, but the fund was up in the month of march, and we were up year to date and so far so good in april as well. so people want more information, go to dan for it. but, yeah, we've been very fortunate in that we saw the covid problem. i was on your show in january, we talked about it. we talked about shorting apple starting as early as february 10th because of the virus. so that's worked out well, but there's also been some really good long in the bandwidth space and gaming. you're having somebody on from the nfl talking about how that shut down. guess what? people are spending a lot of time playing video games. and e-commerce names like amazon and work from home like ring central. those, believe it or not, are
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all names that were up in the first quarter. i think it's balancing the portfolio between longs and shorts. maria: yeah, it's really interesting to look at what has actually traded up in this environment where the whole market has taken such a hit. and you've identified those things that people are actually doing when they're staying home in this shutdown, right? >> yeah. and i think, you know, we talked about that back on your show in january as well, if you remember. we talked about how gaming would be a big deal because, you know, what else are you goinged to do if you're locked in as a chinese citizen? so we own ten cent, that was up in the first quarter, and in the u.s. we own activision, and, of course, nobody's leaving their house, so amazon's obviously the men fishery of delivery. -- men beneficiary. and you've not the work from home, and if you want to receive your work calls on your personal cell phone, ring central helps you to do that. maria: you've got to allocate
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money for a living, meet expectations and predictions, when do you expect you can start looking at an economy that's opening up and creating opportunities to buy? i know you're still not comfortable with the valuations even today. >> no, and i think, you know, that's part of the reason why we're not comfortable saying we found a bottom because, as you just pointed out, if you look at valuations, my favorite measure is market cap to gdp. that was up at about 1.5 in late february which was an all-time record, even higher than where it was during the tech bubble. that's come down to about 1.1, 1.2. the problem is the average since 1970 is 0.8. so that's about 30% lower even if here. from here. that's why it's hard to say valuation works. my biggest thing is jobs. i mean, your prior record for jobless claims was 700,000. we did 3.3 million two weeks ago, and we just did 6.6 million. so for me -- and knowing that
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there are even bigger layoffs coming as corporations work through q1, i can't get comfortable until i see that starting to taper off. maria: understood. all right, dan, it is great to talk with you, thanks very much for joining us. i know you are opening a new fund, and you broke that news on "mornings with maria," so we're going to be watching that as, obviously, your performance is outperforming. dan niles, thank you. i'll be sitting down and speaking with the ceo of 3m. the company was attacked by president trump. you'll want to hear this, stay with us. ♪ ♪ there are times when our need to connect really matters. to keep customers and employees in the know. to keep business moving. comcast business is prepared for times like these. powered by the nation's largest gig-speed network. to help give you the speed, reliability, and security you need. tools to manage your business from any device, anywhere. and a team of experts - here for you 24/7.
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the most common side effects are swelling of the arms and legs and confusion. we spoke up and it made all the difference. ask your parkinson's specialist about nuplazid. ♪ ♪ maria: welcome back. more american manufacturers being called upon to create medical supplies to help protect workers on the front lines of this coronavirus fight. 3m, which is already in the process of producing 50 million
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n-95 masks, now claiming the demand has exceeded the production capacity. this even after president trump invoked the defense production act against 3m. the president tweeted this week this, he says we hit 3m hard today after seeing what they were doing with their masks. the p act, production act, all the way. big surprise to many in government as to what they were doing, we'll have a very big price to pay, writes the president. joining me now is the chairman and ceo of 3m, mike roman. mike, thanks very much. obviously, you saw the president's tweet and the pushback that you're getting. can you tell us what happened? >> yeah. good morning, maria. i'm happy to be on again. let me start with this, you know, the narrative that we are not doing everything to maximize respirators in our own country is false. nothing could be further from the truth, and i'm happy to talk about that. the idea, the other idea that 3m is not doing all it can to fight
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price gouging, unauthorized reselling is absurd. we are doing everything we can to fight covid-19 and support the health care workers here at home. but it's just, it -- and, you know, up until yesterday we had been really proud of all the things we were doing and hearing from every direction save a few negative narratives. but the narratives out there, they're just not true. maria: all right. let's talk about that here because 3m is one of those few companies in the world right now that the whole world is looking toward to make sure you can produce what we need in the face of this massive pandemic, mike. the administration has also requested that 3m stop exporting respirators that are currently, that can be currently manufactured in the united states, stop exporting them to other countries because we are in an emergency situation right now. hospitals are on the brink. they can't even take a heart attack victim, a stroke victim because they are overrun with
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coronavirus cases. can you do something that would turn on your manufacturing to help your home country in a bigger way, mike? >> yeah. and, maria, we have done just that. starting in january we saw this coming. and we learned back in sars and h1n1 that we had to keep idle capacity available because we are a leader in this area of respirators. so we have idle capacity in the united states, and we brought online well before there was a call for a covid fight here in the u.s.. and we max mused production of that -- maximized. that got us to the 35 million respirators. normally we produce 16-20 respirators a month. so we have doubled our production. we continue to focus onramping up. we have producedded millions and millions of respirators, and now we have arrangedded to import more masks from china. we have an agreement to allow us to export 10 million additional a month out of china.
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and in our normal production going back even as when we started in january, a small percentage, less than 10% of our respirators in the united states are exported to canada and latin america to support the health care workers there. we are often the sole provider of those respirators in those countries. and so with the um ports from china -- imports from china, we are a net importer. and as we've been telling the administration for days and days, we're happy to shift our overseas production to the united states. however, there are consequences -- maria: yeah. >> -- on a humanitarian level, and that includes stopping ebbs ports to can a that and latin america. maria: no, i understand. and canada and latin america are at a different place right now with covid-19 than america is, right? i mean, america now has become an epicenter, and an emergency management official in florida was on fox news this week, and he is alleging that 3m is
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shipping equipment to foreign companies who outbid u.s. buyers. he realized this was happening when he could not purchase the essential equipment that he needed and the distributers, and the distributers said somebody else was willing to pay more. so are you selling this equipment to the highest bidder, mike? >> we are -- maria, we are, and let me say this from the beginning, we have not and would never use prices for supplies like this, vital supplies in this crisis to not sell to the highest bidder. we manufacture respirators, we sell them through authorized distributers, and we sell directly to the government, and the distributers take those to the customers that have the greatest need. and we're working with fema in the u.s. to make sure we are prioritizing those with the greatest needs. back before we had the authorization from the fd the a in early march, we were -- [inaudible] in our industrial channels in the u.s. and around the world,
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and those distributers will sell to the demand that they see. and so a lot of the reselling that is going on now is a result of inventory that was built up at that -- [audio difficulty] since the emergency use authorization, we are tracking what we are selling, we're working with our distributers to insure that we are getting that through and there is not -- and we are not seeing the price gouging through them. it's the resellers that were the highest bidder kind of issue so occurring. so it really is very -- we are all over this with our team making sure that we are only going through authorized sellers and that we are managing that price and preventing price gouging. we're working with the doj and state a. g.s too to pursue and identify those price gougers. >> more of maria's one on one >> more of maria's one on one with 3m ceo mikeeeee
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♪ ♪ maria: welcome back. more now of my interview with the chairman and ceo of 3m, mike roman. there are some markets that you're the only one to make these respirators, and we have health care workers that are on the front lines, and people that are getting sick in america. so is there a way that you could insure that you're not relying on distributers to go sell your equipment that may have been sold to them a while ago to the highest bidder and to communicate clearly to the american people that there is no taking advantage of a crises situation, mike? >> well, we can be aggressive in helping to pursue those. we can identify counterfeits, we can identify resellers that are not prized distributers, work with the doj and the state a.g.s to go after them.
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we work with our e-channel partners to insure there's no price gouging. we are taking every action we can take. and, yeah, we're going to bring more of our own production from outside the u.s. into the u.s. as i mentioned, working with china now has covid-19 outbreaks subside there, redeploying more of that production and getting approvals to do that. and we're working with the white house to help accelerate that and increase that, and we're looking, looking for that as the next step in increasing our capacity here. maria: well, i'm glad you brought up china, mike, because this is a question that i asked you a week ago when you joined me on "mornings with maria" on fox business, because i was told early in this crisis, and i went on the air with this a month and a half ago, that there were ships that were carrying goods that america needed, important protective gear that was made in china, and those ships were told to turn around because china
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needs the equipment. and those contracts that were in place with american companies, american hospitals were not going to get the gloves, were with not going to get the masks. you've got your factories on the ground in china. if xi jinping decides the say to you you're going to make everything for china and we're not going to send anything exporting to the united states, you've got get approval to
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bring those products aren't always u.s.-standard products but they can still help, we need to get approval to bring those into the u.s. that's all being expedited, and we're excited to work on going from 10 million up as we can. maria: but this is a really important point, because so many companies like 3m have operations in china, but when we're in the middle of a crises in the united states, what are you going to do if the chinese government tells you there will be no export, you've got export restrictions. i mean, you've got a procedure in place to produce products for the local economies that you operate in. and that's what you've been doing, producing products in china for the chinese. but when the u.s. has a major crisis situation where we are in
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right now where our health care workers cannot get access to that, what are you skyrocketingu think the president had to use the defense production act on 3m? >> well, it's been a focus of the defense production act, i would say that we've been telling the administration for days and days, and it's important to understand that, we're happy to shift our overseas production to the u.s. we're already a net importer. but there are consequences, as you highlighted.
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we are often the sole provider for health care workers in many cubs, and that was the -- in many countries, and that was the way we built out this capability, to be able to support them. there will be consequences. they will not have access to products, and they're in the middle of the fight too. we're happy to do that. we'll comply with the dpa. it was important that we had that to help us aggressively go after that because of the consequences on a humanitarian level. and then the u.s. exports to canada can be a challenge. finish we are, we are often the sole provider to health care providers in canada. we, it's important if we're going to stop those exports, that we all understand the consequences. and that's, the dpa has 2007 us that clarity -- given us that clarity, and we'll comply. maria: so what do you think the consequences will be if the u.s. does not get the proper number of respirators and ventilators and protective gear like masks and gloves, if millions and
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millions of people in america die, mike? >> yeah. i, we are all in doing everything we can. we are, as i said, bringing everything we can in. it's difficult for us to play god. we are really working to make the best decisions. we're partnering with fema in the u.s. and partnering with the government to help us really navigate this. we're putting everything we can in our power to maximize production. maria: so do you feel you have enough product right now to meet the needs of american health care workers right now? >> i, you know, maria, i don't -- one of the challenges is looking through the demand for the use. i think we have visibility that we, with other companies and us and ramping up the way we are, that we can meet the immediate need. and we've got to make sure that we are focused on that, providing respirators where they're being used. maria: my thanks to mike roman of 3m. don't go anywhere, more "wall
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maria: welcome back. we've got a big show next weekend. don't forget to join us on friday, every friday night, 9 p.m. eastern right here on maria bartiromo's "wall street," and then this weekend i'll see you for "sunday morning futures," 10 already eastern on fox news, join me on sunday. catch the show live, fox news, 10 a.m. on sunday. and, of course, every weekday start smart. join me weekdays, monday through friday, 6-9 a.m. eastern on
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"mornings with maria" right here on fox business. we hope you will join me as we set the tone for the weekday business. that'll do it for you. thanks so much for being with me. have a great rest of the weekend, everybody, and i'll see you again next time. ♪ ♪ gerry: hello and welcome to the "wall street journal" at large. we're now about a month into the u.s. feeling the full effects of the coronavirus outbreak and the impact caused by the virtual shutdown of much of the economy is becoming more and more apparent. the labor department reported on friday that a massive 701,000 jobs were lost in march. that breaks a string of 113 months in a row of job growth in america. meanwhile, the unemployment rate skyrocketed to 4.4%, and


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