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tv   The Claman Countdown  FOX Business  April 29, 2020 3:00pm-4:00pm EDT

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for the main street lending facility which will also work through banks, what lessons are you taking away from that, and then more broadly, you know, you mentioned earlier [ inaudible ] was on an unsustainable path and i'm wondering for republicans that are starting to get worried about how much fiscal spending they are having to do in this crisis, you know, whether that should be a concern for them. >> so a couple things. this is different from the ppp, paycheck protection program, in two ways. one, these are not grants. these are loans. so i don't know that the demand will be quite as strong as it has been for the ppp. i don't know that. the second thing is we won't run out of money. it's not a limited pot so there won't be this incentive to try to get there first and that sort of thing.
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i'm hopeful we will very much try to learn as much as possible from that facility and from all the other ones. we have a lot to learn here. we will certainly be trying to do that. in terms of fiscal concerns, for many years, i have been -- before the fed, i have long time been an advocate for the need for the united states to return to a sustainable path from a fiscal perspective at the federal level. we have not been on such a path for some time which just means the debt is growing faster than the economy. this is not the time to act -- liz: well, you know what, it was going along really, really well and it was making history. that was of course chairman jerome powell of the federal reserve. this is the very first time we have ever had i guess it's
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considered a zoom federal reserve meeting and reporters, of course, were standing by. you saw the chiclet screen there. here we are. we got it back. let's dip right back in. >> -- but to let that get in the way of us winning this battle really. >> edward lawrence. >> thank you, mr. chairman. edward lawrence from fox business network. given the amount of stimulus on the fiscal side and monetary policy side, how much weight do you give to finding a vaccine, from clearing that uncertainty you talked about around treatment and whatnot, for the federal reserve pulling back on some of the fed's actions and raising the rates from the zero lower bound. also, when does that main street lending facility get deployed because you talked about soon. some businesses are in need now. thank you. >> so we don't -- we're not in a position to make, you know, a
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reliable assessment of when a vaccine or therapeutic drug would be ready, so we're not going to set our policies based on our estimate of that. we are going to just provide the support that we can with the tools that we have and we are going to keep doing that until the recovery's well under way. in terms of main street, so you know the story. we put out a term sheet, we got a lot of comments, we took those very much to heart. we spent a great deal of time here. it's a challenging space because it's many different kinds of borrowers have different needs, different sizes of companies, so as i mentioned, we are very close to announcing a new term sheet which will then become operative fairly quickly. my guess is, though, we will keep looking to add products, add different kinds of borrowers to that as we go. we are well aware of the importance of doing it as quickly as possible.
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you know, we are very much in touch with the urgency of that need. >> chair powell, just wanted to follow up on the question on the labor market. i know you said that it's highly uncertain but there are analysts who think we will have very high unemployment until the end of next year, as high as 9%, and at this point, can you just talk a little more about what you see in the path of employment in the coming months and into next year? >> unemployment is going to go up to a high number in the second quarter. uncertain what the number will be. when -- and that's because so much economic activity has been shuttered really as we take
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social distancing measures. so sometime fairly soon here, and probably gradually and at different paces, at different parts of the country, we will see social distancing measures rolled back, people will begin to spend more money. it's really consumer spending has fallen precipitously, and once that starts to happen, people will get hired back and unemployment will go back down. i don't think it will get anywhere near the historically low level that we had in as recently as february, 3.5%. i think it will take some time for that to happen, for us to get back to anything that resembles maximum employment. but i mean, the main thing we want, we want to get back on that road. we want to get that recovery going and get people back to work as fast as we can. not faster than we can. but as fast as we can. the main thing is to get into that stage where the economy's healing, where we have the disease under control, where we don't, you know, take too much
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risk of second and third waves and that sort of thing, and get people back to work. you know, again, the path of it is highly uncertain, but we will be there with our tools supporting the economy and supporting that recovery. >> scott horsley. >> after the financial crisis, banks were instructed to up their capital so they could weather an economic shock. what kind of steps do you think we need to take for the economy writ large to make it more resilient to this kind of shock? >> can you just say that? you are a little bit low volume. >> yes. what kind of steps can we take to help the economy as a whole be more resilient to this kind of exogenous shock?
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>> this is an extraordinary shock, unlike anything certainly that's happened in my lifetime. and a couple things come to mind. i think the time will come for careful assessment of the answers to those questions. it's early to be asking them. we are still putting out the fire. we are still trying to win. i think we will be at that for awhile. you know, but i point to a couple of directions. you know, we worked hard to strengthen the banks, much higher levels of capital liquidity, far greater sense of what the risks are they're running and how to manage them. so the breakdowns that we have seen in market function have really been in the capital markets. and i wouldn't rush in with prudential regulation into the capital markets but i think -- and we did plenty of things. we did a lot of reform in the capital markets. money market reform, central clearing, all these important
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things. but there will no doubt be, with the size and force of this shock, will no doubt reveal weaknesses in the financial architecture and we'll have to go to work on those. i also think it tells you the importance of getting your fiscal house in order. the u.s. really hadn't gotten back to where we needed to get on fiscal policy and you know, so we have an already high level of debt to gdp and rising quickly when this shock arrived. now, we have the fiscal capacity to deal with it, i believe, but we will need to -- ideally you would go into an unexpected shock like this with a much stronger fiscal posture.
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>> mike mckie. >> mr. chairman, given the demand drop, demand shock and the drop in oil prices, do you anticipate that we might see any kind of deflation, even for a very short period that would require a fed response? if we get a negative print on cpi or cpe, how should people think about that? second question, there is a disconnect it appears between the markets and the economic outlook right now. i know you said this isn't the time to worry about moral hazard but do you worry with the size of stimulus that you and congress are putting into the economy, there could be financial stability problems as this goes along? >> in terms of inflation, we think that inflation is very closely and strongly related to inflation expectations, and
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during the global financial crisis, there was a concern that we might see deflation. but it didn't happen. inflation tended to move down a little bit, as it will when demand is weak, and -- but inflation expectations did not move strongly down here in the united states. they have in other places in the world, though, over the past 25 years. there's been downward pressure on inflation really for several decades now. so i would say as long as inflation expectations remain anchored, then we shouldn't see deflation and the federal reserve is strongly committed to maintaining 2% inflation over time. so we'll be there to work on that. i think you asked really about headline inflation. if low energy prices, very low energy prices were to drop headline inflation negative, i would hope that people would see through that and we will be monitoring it very carefully, would see through it, though, and look to core which is a
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better predictor of future inflation. needless to say, we will be keeping very close track of that. in terms of the markets, you know, our concern is that they be working. we're not -- we're not focused on the level of asset prices in particular. it's just markets are trying to price in something that is so uncertain as to be unknowable which is the path of this virus globally and its effect on the economy. that's very very hard to do. that's why you see volatility the way it's been, market reacting to things with a lot of volatility. but you know, what we are trying to assure, really, is that the market is working. the market is assessing risks. lenders are lending, borrowers are borrowing, asset prices are moving in response to events. that is really important for everybody, including, including, you know, the most vulnerable among us, because if markets stop working and credit stops
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flowing, then you see that's when you see, you know, very sharp negative, even more negative economic outcome. so i think our measures have supported market function pretty well. you know, we're going to stay very carefully monitoring that, but i think it's been good to see markets working again, particularly the flow of credit in the economy has been a positive thing, as businesses have been able to build up their liquidity buffers and households have been able to be home, you know, people have been home, concerned about their jobs, but they're not concerned about the financial system collapsing as they were in 2008 and '09. >> chris from a.p. >> chair powell, thank you. i guess i had two questions. i wanted to start on the unemployment picture and nail down a little bit how you see things going from here.
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you did talk about potential loss of skills over time so are you worried about structural changes in job markets that would keep unemployment high and therefore potentially beyond the ability of the fed to do anything about, which is something that was debated as you know after the last recession, and then eventually of course, the unemployment rate did go lower than people thought. second question is just on the money from treasury, the $464 billion. it sounds like you want to keep that in reserve for programs that have high demand such as the main street program. are you willing to use that to backstop say a program that is having more losses? what is your tolerance for loss among that $454 billion? thank you. >> so in terms of the labor market, the risk to damage to
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people's skills and their careers and their lives is a function of time to some extent. the longer one is unemployed, the harder it gets, i think, and we probably have all seen this in our lives. harder it is to get back into the work force and get back to where you were, if you ever do get back to where you were. longer and deeper downturns have left more of a mark generally in that dimension, with the labor force. so that's why, as i mentioned, that's why the urgency in doing what we can to prevent that longer run damage. it doesn't have to be that way. we won't be able to limit all of it but we do have the tools to do what we can to keep people in touch with the labor force and working and also out of insolvency, too. it doesn't seem fair that people should lose everything they have, including their homes, over this. so nonetheless, there will be some of that but we do have some
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tools to ameliorate that. so in terms of the money, you know, the $454 billion, it's a couple things. first, the treasury secretary really has authority over that. and it stands in front of our losses. so you know, i do think we are -- we are clearly moving into areas where there is more risk than there has been in the past. and that's okay. i think that's what we are supposed to do. this is a very unusual time. so -- but in terms of the way to think about that money, i think that's really a question for the treasury department. you know, we are -- we set up the facilities and we work very very closely and successfully and collaboratively with treasury on this, but that
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particular aspect of it falls more to the secretary. >> okay. we will go to nancy marshall for the last question. >> nancy marshall with marketplace. chair powell, i'm wondering what you would say to savers who are hurt by very low interest rates and maybe going into investments maybe in the stock market that aren't so great for them and also, i'm wondering if you can give us any more of a clue as to how long you think we are going to have interest rates near zero. >> so we think that low interest rates affect the economy through a number of channels in a positive way. lower interest rates support economic activity through channels that -- overall through channels that we understand reasonably well. they make it cheaper to borrow, they drive, you know, your costs of borrowing down, they do raise asset prices including the value of your home, if your saver owns
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a home or has a 401(k), your saver will benefit from that. but for people who are really just relying on their bank savings account earnings, this is, you know, that's -- you're not going to benefit from low interest rates. but you know, we have to look out for the overall economy. low interest rates support employment, they support economic activity, and those are our mandates and i think for the overall good of the economy, low interest rates are a good thing. and that does not say they're good for every single person but that shouldn't stop us from doing what we think is good for the whole. in terms of how low, i really don't want to speculate. we will turn to questions like that soon enough but in terms of how long we'll stay and under what conditions we will stay at the effective lower bound, those are just exactly the things we are thinking about. right now, we like the place we are. we have said that we will keep
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our rates where they are until we are confident that the economy has weathered the effects of the outbreak and is on track to achieve our goals. so that's where we are. we are not changing that guidance today. you know, but it will be -- that means we are going to be very patient, that means we are not going to be in any hurry to move rates up. >> thank you very much. >> thanks. liz: all right. federal reserve chairman jerome powell calling the coronavirus an extraordinary shock. in fact, he even said it was the biggest of his lifetime, so big that he did issue what jumped out at me, and that was a warning during this first-ever virtual federal reserve news conference, and the warning was, this is what he said, the size and force of the economic shock from the coronavirus and its aftermath will no doubt reveal what he called cracks in the financial system or
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architecture, as he put it. now, chairman powell did reiterate his promise that the federal reserve will act aggressively and forcefully until the united states is on the road to recovery. the fomc did leave the basic interest rate, overnight short term interest rate at 0% to .25%, where it was last time around, and the markets appear to be very comfortable with fed chair powell's tone and substance. dow jones industrials, we are not far from the high of the session. high of the session, a gain of 663. we are up about 600. the s&p and nasdaq are also showing green on the screen here. s&p jumping 84. look at the nasdaq, up 328. high of the session, right around here, 328 points. now, treasury yields, let's flip it over to that. that is always sort of that fear trade. not a lot of fear here because they are ticking slightly higher. they plummet when there's nervousness in the market. this morning the ten-year stood at .58%. right now, we are at .62% for
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the ten-year yield. looking at the u.s. dollar, the greenback slid slightly after the announcement, probably because, you know, when you look at what the fed is doing, and there is so much intervention that is dollar negative at certain points but we do have most currencies slightly higher against the u.s. dollar. yesterday, the mexican peso had a very big day and it continues on that track. let's flip it over to financials, because as you look at what the big names and quite frankly, some of the regionals are doing, there is green on the screen here, because he did compliment the big name banks and some of the middle sized banks, too, because during the financial crisis, they were that point of horrific weakness. this time around, they are well capitalized, he said, and very much on firm, terra firma. citigroup up 6%. nice move there. bank of america up 4.5%.
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morgan and jpmorgan up about 3%, 3% plus. goldman sachs better by 2%. let's bring in the really smart people who understand fed-speak because i promise, guys, my viewers would get some translation here. andy brenner and steven gallagh gallagher. andy, give me your gut reaction to what he said. the markets seem to feel very confident that he's on the case. >> absolutely. no question that chair powell and the federal reserve are all in, doing a great job. there was a survey in barron's over the weekend saying there was a 90% positive rating towards the fed. he was very comfortable today, very calm. he told you that they're here, they're on the job and if they have to do more, they got plenty of money with which to do more. very good question and answers and a lot of comfort there. i tend to think that, you know,
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a lot of the naysayers, we have had some really smart names come out and talk negatively about equities, we had carl icahn, scott minerd, jeff gundlack but you just quoted the screens, everything looks pretty good right now and the fed looks very comfortable. liz: yeah. we were even looking at non-bank lenders and they are looking rather strong at the moment. we are very close to session highs for the s&p 500. there was one interesting question from a journalist who asked about this disconnect and he said it appears that there is just an imbalance between the market which is charging ahead and has done very well, i believe the dow is up 5 of the last 6 sessions, and then the economic reality of 26 million people who have lost their jobs. a frozen economic picture out there at the moment.
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what's the answer to that? is this just the market is a discounting mechanism and they look four to six months ahead versus what's right in front of them? >> well, that is a huge disconnect and we are all trying to make the connections again so yes, the market is looking ahead, but there's a lot of confidence in the market, in the fed itself. jay powell put on an excellent performance today so some reason for confidence there. confidence that we are going to see some reopening and confidence that the fed and treasury have put the right policies in place. i agree with all that. but as you mentioned, we will have a lot of unemployed people, you are going to experience bankruptcies. we haven't seen the full set of downside news. i think it's a little up and down. i think we do come out of it, but i think there's going to be a little more ups and downs here as we digest the economic and even the profit news still yet to come.
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liz: i think that's a fair warning. andy, i want to say around march 23rd, the fed literally dove into this roiling horrific situation in the markets, and they clearly wanted to stave off mass insolvency that they saw, whether that was personal insolvency or corporate insolvency but they backstopped state and local government debt on longer dated munis, they are extending loans to businesses. boy, was he sure to mention these are loans and not grants. he talked about purchasing unlimited government debt. you know, purchasing bonds issued by previously rated sort of investment grade companies which then fell below triple b level, am i crazy to be nervous about this? that there's massive backstopping going on to the point we have privatized profits for corporations but socialized losses? >> listen, i don't think it's quite that bad. you are absolutely right, on march 22nd, the fed said
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anything that was -- march 23rd anything that was investment grade at that date they would continue to buy as long as it maintained a double b. the ecb did the same thing on april 7th, the bank of japan has made a decision to double the a corporate debt. it's the three big central banks. what you have seen here is you have seen the opening up on march 16th, you saw when it became evident the fed was going to buy corporates even though it had not bought a bond as of yet. the new issue market for corporates opened and a lot of people said well, the bond market is telling you one thing, the stock market is telling you another thing, you are looking at the wrong markets. you got to look at the corporate new issue market. the corporate new issue market is functioning. since march 16th, there's been between 4.225, 450 billion new issues that have come to market. that market is open and functioning. it may be cheaper than before but the point is corporations can get money, they can go to market.
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even carnival cruise lines came to market. liz: glad you brought up carnival. my last question, there has been a lot of headline that says the fed bailed out carnival cruises. no, they did not. however, he made an interesting comment today during this virtual news conference where he said we haven't granted major corporate loans but because they have stepped in so aggressively, that has sort of triggered tremendous amount of financing in the private markets and that's apparently a good thing. carnival, which doesn't even pay federal u.s. taxes because they are basically domiciled in panama because they didn't want to pay federal taxes, they were fie fielding high, high interest loans from these groups of hedge funds until the fed stepped in and then they got much better terms, with lower interest rates. do you see that as a bailout by the fed sort of indirectly of
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companies like carnival? >> so it's a great question and one we will be talking about for a long time. all of a sudden they are taking unprecedented risk and this is part of it. private investors are willing to come back to the market and lend to high risk companies. the fed has cast a wide net. it's offering these programs to a lot of different companies and they would fail and lay people off if they didn't offer such a widespread net. they can't selectively eliminate certain possible buyers or certain corporations from their programs so they are casting a wide net and it's capturing names they might not prefer to capture but that's something that has to be resolved later. that's a fiscal question. the fed can only offer the lending capacity that they are playing the role they are supposed to in an extreme time. i wouldn't be too critical, you
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know, on them for providing funding or allowing for funding to specific companies when it's not their intent at all. liz: fair enough. thank you both. i hope you tune in to "the claman countdown" tomorrow because we do have the ceo of carnival cruise lines. the ceo and president will join me in a fox business exclusive tomorrow right here at 3:00 p.m. eastern on "the claman countdown." we are thrilled to have him because we are dying to hear about the future of cruises, what he has to say about all of that and of course, the atmosphere right now. he's probably been through the ringer considering all that has gone down with the cruise lines during coronavirus. let's take a look at some of the stocks right now that are seeing some very big moves in both directions. as we barrel toward the closing bell, the dow is still holding on to pretty significant gains of about 624 points. the stock of brinker international, this is the parent company of chile's, that
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stock, look at this gain, 30% right now after indicating that april sales are starting to improve. not to be outdone, rci hospitality holdings speeding higher by about 31%. after announcing that all ten of its bombshells restaurants in texas will reopen during the governor's phase one plan. so those are looking good. blue apron shares, though, are moving in the opposite direction, down 24%. the stock had been up 450% since the march lows but even after the lockdown boosted orders, because they came out with their numbers, the meal kit delivery company saw a steep decline in quarterly sales but blue apron says be patient. the spike in demand will be reflected in the current quarter. blue apron is down three bucks to $9.52. i think the high had been around $15. at least in the past couple weeks. all right, yes, many of us
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have been obsessed with food and eating since the coronavirus hit so it makes perfect sense, does it not, that ww international, formerly known as weight watchers, is rallying into the close after narrowing first quarter losses and beat revenues. we do have that stock up about 13% at $26.24. the weight loss giant reported a 9% increase in subscribers, year over year, with a 16% jump in online subscribers. so what, i'm asking you all this question, what does the market hinge on near term? is it on reopening stocks like brinker and rci and all of that, or will it benefit from consumers stepping back into the world again, or is it going to be the hunt for a cure stock like gilead which really kicked the markets and the bulls into high gear this morning on encouraging news about its antiviral drug remdesivir as a covid therapy? let's bring in our floor show
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traders. gilead up 7%. teddy, that's what juiced the futures early this morning, because they had some very positive news about a trial that's going on. i'm wondering, is there a sector that overtakes what we are seeing today with all these consumer stocks in leisure or hospitality and restaurants? >> at the moment, it's a very interesting market because i think it's got a lot of folks flat-footed right here. the move of the s&p to 2880, 2900, you know, i think it's a very positive sign technically. but i think most people in times of uncertainty and clearly we still have a lot of uncertainty out there, they are going to gravitate to big companies, big tech companies, pristine balance sheets, companies that pay decent dividends because in times of uncertainty, you go to where it's safest to go. this is not to say that the
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gileads of the world aren't going to be potentially home runs whand what they seem to be doing is quite positive on a lot of fronts. i think it's a little dangerous to get too sector-specific. i would be inclined to just keep focusing on the big cap companies, whether it's what i call toll takers like visa or mastercard or perhaps some of the exchange stocks like cme or the big techs. look what facebook is doing today just as an example, or google. there are plenty of places to go without getting too specific and trying to get too cute. liz: i like that advice, teddy. phil, when you talk about what gilead's news was, for those of you who were not awake this morning and did not manage to hear it, the stock is up about 7% because they had this government trial of their antiviral drug remdesivir and pretty much met its primary end points. that lifted the whole market which i find really fascinating.
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but including oil, which is now up about 23%. as you look at these names, is it the consumer or the cure stocks, that's sort of our theme question here. >> yeah. well, i think definitely the cure stocks today lifted the market because if indeed this trial which i think was a phase three trial was successful, if it means we are going to have a vaccine in the near term, you know, that's going to lift all the stocks. definitely that will lead the way because of those expectations. you know, there are reports today about the trump administration having this special team to get this vaccine as soon as it's approved out to millions of people as quickly as possible and if that's the case, all these other stocks are going to look really, really good, because we are going to see a comeback in the economy unlike anything we have seen before. i listened to the federal reserve today, i listened to jerome powell today. i mean, basically, hey, every tool in the toolbox is available. everything.
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businesses this is a do whatever it takes moment. basically i'm not focused on the cure, i'm just focused on what's happened to the economy. we are going to do everything we can to minimize the damage. that's why you really find a lot of these stocks, oil, big up day today, maybe signs the worst is over for demand destruction. we saw gasoline demand, even though people can't drive supposedly. that's a real good sign for that sector that's really been beaten up as well. liz: okay. phil, teddy, love you guys. good to see you. thank you very much. yes, this is good for 3% plus gain for the nasdaq. we are looking at the nasdaq up rather significantly here, 340 points. tech is grabbing this tiger by the tail, running with it. here are the very latest numbers right now from the small business administration's paycheck protection program. this is phase 3.5, the second tranche of money. at this hour, we are told that more than 475,000 loans worth
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over $52 billion have now been approved. in an effort to get the smallest of small businesses that safety net, starting at 4:00 p.m. eastern until midnight, so in less than an hour, the sba will only be processing loans from lending institutions with less than $1 billion in assets. so you do see a change between the last first tranche of money and this one. as major financials face complaints and long waits and gridlock, a regional bank in texas is grabbing nationwide attention for getting money into the hands of small businesses desperate to stay above water. frost bank is among the few names leading the nation in securing loans. you may never have heard of them but we are here to introduce them. let's meet frost bank chairman and ceo phil green, joining us in a fox business exclusive. phil, first, let's just get to your latest numbers for this second chunk of federal money.
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how many loans have you processed in these past two days? >> well, thanks for having me. you know, since we opened back up, what we are still doing is we are processing the applications that came through the first time that we weren't able to get to. so we have done about almost all of those at this point. so we are going to be starting today on processing new applications for the second tranche and we have received about 2,000 applications for that tranche. so we are still seeing good volume. not as much as we saw the first time. and the loan balances on average are a little bit less than the first time but we are still seeing good volume. liz: you know what, your stock is reflecting the good work you're doing. the frost stock, cfr, is up 8% right now with about 24 minutes before the closing bell rings. i want to show a comparison here for our viewers. bank of america apparently sent 184,000ppp applications to the sba but apparently the sba has
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only approved 1,000 of them. less than 1%. how do you manage in san antonio, texas, to hit this much faster rate of success? what is the secret that you can let the big boys in on here? >> i'll tell you what it is. unbelievable staff committed to a terrific culture, people volunteering. i got over 500 volunteers to do totally different jobs, raising their hands, saying let me help input to late in the night, let me go get data together, let me call customers, let me do all that to get -- to help get this process. it is elbow grease, it is sweat, and it's doing it to all hours of the night. i just am amazed at our people, what they're doing. another thing, one reason in my opinion that community banks are doing so well is small business and midsize business, that's in our wheelhouse. that's what we do. so we have relationships with these people, they know who to call and they have people
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are used to dealing with them. that's helped us deal with small business because that's really who we are dealing with in this situation. 82% of the applications that we have gotten approved are for loans of $350,000 or less. what that means is these companies are helping average 25 people or less. so we are really helping the definition of small business. liz: you are doing exactly what the spirit of the ppp program was, and that is what secretary mnuchin had said and in fact, he looked rather agitated that the lakers got millions of dollars, and shake shack got millions. of course, both have given it back. there was a sushi chain that also had to give back millions of dollars because they were very well capitalized. how do you vet the applications that come in, or do you, and you know, i mean, i don't imagine the dallas mavericks are coming in asking for a loan here. >> no, as a spurs fan, i'm upset
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about that laker thing, too. but no, i tell you, the way it goes, we had so much flow of applications that came in that there really wasn't anything to do other than just process them as they came in, if the application was completed. and you can't believe how many applications come in that need more work or it's obvious the customer has done something wrong so we worked really hard on that. but there's really no way to do anything but process the work. you know, think about it. somebody working from home, 2:00 in the morning, doing an input, it takes the same amount to do a $2 million deal as it does to do a $20,000 deal as long as the application's filled out. so all they were doing was taking the application off the top, putting it into the system and moving on to the next one.
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liz: i like you guys. i like your team. the company is frost. will you come back? i want to stay on this story. we like these small and regional banks. you are out there in san antonio. forgive me for even bringing up the dallas mavs. i shouldn't have said that. take good care. >> thanks so much. bye-bye. liz: any time. phillip green, chairman and ceo of frost bank. imagine, they did 10,000 loans processed and right now, bank of america's got 1,000 processed. at least according to the data we saw. amc trolling comcast at this hour. the nation's largest theater chain saying it will no longer show any films made by comcast universal pictures. remember we told you about this controversy. this after universal, the movie studio, said it will continue to release new films straight to streaming due to its success with "trolls world tour's"
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digital rollout. it was supposed to be rolled out in a premiere. instead of putting off the premiere they put it on straight to digital. the move shatters the usual exclusive three-month window for new movie releases held by theater chains. amc jumping again today, up 24%. comcast is up by 2.33%. closing bell ringing in exactly 20 minutes. charlie breaks it next. he's got two stories. he begged me let me do both. i said okay. they are good ones. stay tuned. i came across sofi and it was the best decision of my life. i feel cared about as a member. we're getting a super competitive interest rate on our money. we're able to invest through the same exact platform. i really liked that they didn't have any hidden or extra fees. sofi has brought me peace of mind. truly thank you for helping me prepare for whatever the future has in store.
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liz: for all of you out there who are desperate for live sports, charlie's about to break
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some news on major league baseball but first, he's got some breaking news on the as-of-yet new chunk of stimulus money the government is modeling? what about that? charlie: as we reported earlier, i want -- can't wait to gheet t get into the baseball news because i know you are hopelessly long-time cleveland indians fan. i always say browns. shows you how much people pay attention to the indians. but here's -- liz: hey! charlie: there's likely to be -- sorry. save your hat for a few minutes. let me get this out. there's likely to be another round of stimulus again as we have been reporting, me and my producer have been reporting it could be $1 trillion. here's what we are hearing now. there's an interesting horse trading on this bill. what we have is this. the republicans are signaling some willingness despite what mitch mcconnell said about let them go bankrupt meaning the states who desperately need state aid, the republicans are signaling possible willingness to approve some state aid in
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exchange for some gimmes on their end. those two that are high on the list is liability protection that companies can't get sued if they let people back to work, they start going back to work, and then of course, they get sick. they want some liability protection as we come out of the coronavirus shutdowns. also, they are looking for bailouts, here's another thing, bailouts for small oil companies. as you know, with the fracking boom, oil companies are all over the country, not just in texas and oklahoma. they are in pennsylvania, you name it, republican districts. again, something that the horse trading is going and we will keep you up to date on that as soon as we get more. the other thing that is fascinating is that i spoke with senior executives, major league baseball executives today. what they are saying is simply this. as of right now, who knows what could change, you could have a massive uptick in viral infections, we are not seeing that right now, it looks like the curve is going down on infections with the coronavirus
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but as of right now, they believe there's going to be -- they are describing it as highly likely, you know, 99% sure, you name it, there's going to be 2020 major league baseball season. no sport was hit as hard as baseball. you do know that, i mean, just as they were ready to start playing, obviously the disease has been laid. rob manfred, the commissioner, has been mum on timing. what we understand is this. it looks like it's going to be later in the summer. owners and baseball executives are talking, they use the word july a lot, okay. so just, that's when i think they want to do this. and there are several -- this has been reported, fox sports has reported this, others have reported this, and it's accurate based on my reporting as well, that there is some potential rollout plans, a limited baseball season that starts in three states, three southern
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states, texas, arizona, florida, you know, places where it's hotter, where the virus is less contagious, you name it, the season may start there, then branch out to others that are -- that haven't as of now been hard hit by the virus but not ready to open. new york would be one of those. interesting enough, liz, is that all eyes are on governor cuomo and the reopening of new york city, because there's two major league franchises here that are huge, the yankees, perennial world series winners, maybe the most profitable and most valued franchise in sports, and the mets. not exactly a small franchise, either. everybody's eyes are on cuomo and he's going to start opening up new york city, that could be a lot longer. i talk to people close to the governor who say june, july, maybe august. who knows. because new york city's been hard hit by the virus and because of its density of
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population, the virus can spread. that's where we are now. major league baseball, at least they are telling me, they are very certain there's going to be something. we don't know what it's exactly going to look like. all eyes on cuomo on how he's going to open up new york city and the yankees and mets. you have your hat on? i can't see the screen. liz: all eyes are on the indians. all eyes are on the indians. go, tribe! take the browns with you. charlie: wasn't there a cleveland browns in the '40s or something? liz: you are not really a very -- hey, i resemble that remark. thank you very much. go, tribe. closing bell, don't worry, you ohio fans, i will handle him after the show. closing bell ringing in ten minutes. holding on to most of the gains. slight selloff here. we are up 568 points for the dow. don't go away. starbucks investors steaming after the coffee giant logged its first quarterly sales drop
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in 11 years, after the bell yesterday. global same store sales declining by a bigger than expected 10% in the march quarter due of course to the coronavirus. starbucks down 2%. we'll be right back. (announcer) in this world where people are staying at home, many of life's moments are being put on hold. at carvana, we understand that, for some, getting a car just can't wait. to help, we're giving our customers up to 90 days to make their first payment. shop online from the comfort of your couch, and get your car with touchless delivery
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we're a "together we can get through anything" company. now, more than ever. ♪. liz: we have very big names in just minutes about to release their earnings. the world's biggest social network, of course, second largest digital ad platform in the world, that is facebook, that is set to report first-quarter earnings. a quarter of facebook's whole user base globally has been stuck in their homes. some signs pointing to a rough quarter for advertising. google did absolutely beautifully compartively. we'll watch facebook in a few minutes. of course we have our second tech giant, microsoft. company releasing its third quarter numbers.
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how has the cloud computing services, pc sales, how have they performed during the work at home, in place environments? the stock has come roaring back from a steep decline. microsoft is at $177 right now, up 4.25%. low was $132. investors keeping a very close eye, even if they're not investing in this, on tesla. and how the carmaker has managed to navigate through the coronavirus with its assembly line shutdown. it reports first quarter numbers after the bell. tesla shares showing resilience, up 4% amid the economic destruction. the stock has more than doubled since its march low. go to cheryl casone in the fox business newsroom. hi, cheryl. reporter: liz, the stock is in the, it held up even amid the uncertainty when production will resume.
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the stock is up almost 4% as we head to the close. earnings per share loss estimated 36 cents. revenue estimated to comb in at 5.9 billion. that would be a gain of about 30% versus last year that could be good news news for the compa. deliveries in the spotlight, vehicle sales, q1 number showing 88,400 delivers ares. any forecast from elon musk when their fremont factory will be open again will be of note. analysts say this will being shut down entire month of may. we'll see any news there. any guidance will foreshadow what the second quarter could look like for tesla. we should add news on chinese rival neo. which brushed off the coronavirus saying worst is over and back in business for them. neo up 8%. finally elon musk weighing into the controversy whether states should open for business. he went on twitter with a couple of tweets. one said quote, free america
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now. elon musk never one to mince words. liz? liz: no, never. not him. he marchs to the beat of a very different drum, on mars. cheryl, thank you very much. cheryl casone. here is a question, how and where do you invest when federal reserve chair jerome powell just assessed the situation around the coronavirus by simply saying that it will expose a few cracks in the architecture and extraordinarily dramatic shock, the biggest certainly of his lifetime? let's bring in three voices into this conversation, as markets are still well into the green. we welcome wolfgang kester. dan genter and clive gilmore. i want to start with you, wolfgang, were you surprised by anything that the fed chair said
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beyond a rather dramatic statement how bad the situation has been and how the fed will continue to stay there? whatever you heard, how are you investing around that? >> no, i'm not that surprised. when you make such massive, quite frankly distributions of cash and create liquidity, you're going to have some cracks into that part. what we're seeing is, is there is a high focus not only by corporations but also by governments. we're working with them to actually iron those out. we work very closely at kyriba after active liquidity network where we developed a network that gets people paid quicker, corporations, suppliers, quicker and they're looking for technologies to actually stop those cracks. so what you got to look at the end from a corporate investment point of view what companies are already good at receiving cash and watching liquidity, et cetera? liz: yeah. i get it. dan, where do you see
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opportunities in the market right now? >> clearly, liz what you will see right now those that are not being affected by c-19 but they're benefiting. working at home. number of areas very attractive. look at the health care area, those are benefiting. of those companies like cvs will do even better in this environment. and then, frankly there is a few opportunities where they're showing some cracks but i think the cracks in the photos of those crack as little bigger than they actually are. even some oils right now, just overdone. liz: okay. got to get clive in really quickly here. where do you see opportunity, clive. >> well we invest internationally and globally. very much what you've been talking about in relationship to the united states is mirrored internationally. one of the interesting aspects there is certain countries which hitherto not ignored but seen as
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being pour cousins of international investing game like japan have come out of the crisis quite well because many corporate have significant amounts of cash. [closing bell rings] the bigger issue. liz: thank you for winding undown for us. that will do it for "claman countdown." green on the screen after the fed move. connell: hoping for a treatment, stocks surging today as progress is reported on a possible coronavirus drug. then the market holding on to those gains in the afternoon after the federal reserve pledged its commitment to keep on helping the economy. really strong day for stocks. i'm connell mcshane. melissa: i'm melissa francis. this is "after the bell." the major averages closing up more than 2% on track to snap a three-month losing streak. at the white house right now president trump is set to meet with executives from the food, hospitality and automotive industries. we'll bring you any h


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