PRESIDENT MIKE PENCE’S OFFICE, BECAUSE HE KNOWS HE CAN CONTROL
THAT INFORMATION AS OPPOSED TO
SAY HHS OR CDC.
DOWN TO WALL STREET AND BRING IN
DOMINIC CHU.
DOMINIC CHU. DOM, NEARLY A 1,200 POINT DROP,
THE WORSE SINGLE DAY LOSS IN THE
HISTORIES OF THE DOW JONES
INDUSTRIAL MARKET.
INDUSTRIAL MARKET. WHAT’S IT LOOKING LIKE THIS
MORNING?
MORNING? >> TO ADD TO JONATHAN’S POINT
HERE, THE REASON WE DON’T WANT
TO BE ALARMISTS ABOUT EITHER THE
MEDICAL IMPACT FOR THE
CORONAVIRUS OR THE MARKET
IMPACT, BUT THERE’S NO DOUBT
THAT THE ISSUES AROUND THE
CORONAVIRUS ARE HAVING A
SIGNIFICANT IMPACT.
SIGNIFICANT IMPACT. YOU MENTIONED THAT 1,200 NEARLY
POINT LOSS YESTERDAY IN THE DOW.
THE BIGGEST SINGLE DAY POINT
LOSS IN THE HISTORY OF THE DOW.
MORE IMPORTANT HERE FROM A
BROADER PERSPECTIVE, NOT JUST
THE DOW.
THE DOW. THE S&P 500, A BROADER MEASURE
OF THE U.S. STOCK MARKET, HAS
NOW LOST IN THE LAST SIX DAYS
SOME $4 TRILLION WORTH OF MARKET
VALUE.
VALUE. $ TRILLION6 TRILLION LOST IN GLO
VALUE, ALL OF THAT FROM DOW
JONES INDUSTRIAL INDICES AND A
SCENARIO MARKETS FOR THE S&P
HAVE NOW FALLEN BY 10% OR MORE
IN THE FASTEST PERIOD OR SPAN IN
MARKET HISTORY.
MARKET HISTORY. THAT IS TO SAY WE WERE JUST
ABOUT SIX, SEVEN TRADING DAYS
AGO AT RECORD HIGHS AND TOOK
ONLY SIX DAYS TO FALL BY 10% OR
MORE.
MORE. AS THE CORONAVIRUS FEARS START
TO EMERGE IN THE ECONOMY, A HOST
OF ANALYSTS ON WALL STREET
TRYING TO PREDICT OR MODEL OUT
WHAT THE ECONOMIC IMPACT WILL
BE.
BE. A NUMBER OF BIG INVESTMENT BANKS
INCLUDING THOSE AT GOLDMAN
SACHS, JPMORGAN AND CITIGROUP
AND OTHERS HAVE NOW ECONOMIST
TEAMS AND ANALYSTS TEAM WHO HAVE
TAKEN DOWN THEIR FORECASTS FOR
BROETH
BROETH GROWTH IN THE ECONOMY, NOT JUST
HERE IN THE U.S. BUT AROUND THE
WORLD.
WORLD. THAT TRANSLATES INTO FEWER
CORPORATE PROFITS.
CORPORATE PROFITS. IN FACT, FOLKS AT GOLDMAN SACHS
CITI GROUP PREDICTING NO PROFIT
GROWTH FOR S&P 500 COMPANIES IN
THE YEAR 2020.
NOW, THEY ARE STILL MAKING
MONEY, BUT IT’S HARD TO JUSTIFY
RISING STOCK PRICES WHEN
COMPANIES DON’T MAKE MORE MONEY,
AND FOLKS, THAT’S THE REASON
YOU’RE SEEING MARKETS REACT THE
WAY THEY ARE BECAUSE OF AN
UNCERTAINTY ABOUT JUST HOW MUCH
THE WORLD ECONOMY WILL SLOW DOWN
BASED UPON THE LATEST RESULTS
FROM THOSE TESTS AROUND THE
WORLD AND CORONAVIRUS, GUYS.
>> YOU KNOW, SO MUCH OF THE
MARKETS ARE GOING UP AND DOWN
AND I KNOW ABOUT MARKETS BECAUSE
WERE YOU
WERE YOU WILLIE AND I GO TO OTV.
READING THE DOGS IS ABOUT THE
SAME AS READING BLUE CHIP
STOCKS.
STOCKS. HAVE WE NOT BEEN PROVEN TIME AND
AGAIN?
AGAIN? >> ALL RIGHT.
JUST GET SERIOUS.
>> SORRY, DOM.
YOU DON’T HAVE TO RESPOND TO
THAT.
THAT. >> I’VE BEEN TO THE RACETRACK.
HARD TO SAY THIS, BUT HARD TO
SAY ANYTHING ELSE WITH REGARD WE
CAN PREDICT WHAT THE MARKET’S
GOING TO DO.
RIGHT?
RIGHT? SO MANY FACTOR IN PLACE.
>> NONSENSE.
>> NONSENSE. LEADING TO A QUESTION, THAT’S
THIS.
THIS. I WAS ABOUT TO SUGGEST THAT I
ACTUALLY KNEW WHAT HAPPENED WITH
STOCK MARKETS.
STOCK MARKETS. SO THAT’S WHY I DID THE
SELF-DEPRECATING DOG TRACK JOKE,
ALL THE KIDS HAVE DONE I ASSURE
YOU OF THAT.
>> YEAH.
>> YEAH. >> USUALLY WHEN I LOOK AT
MARKETS I SAY, THIS IS WITCH
CRAFT.
CRAFT. SO MUCH GOES UP AND DOWN.
WE DON’T REALLY KNOW WHY
EVALUATION IS NOT TIED TO THE
WAY A PARTICULAR BUSINESS IS
GOING, BUT IN THIS CASE, IT’S
NOT SPECULATION.
NOT SPECULATION. THE DROPS ARE CONNECTED TO VERY
REAL EVENTS THAT ARE HAPPENING
RIGHT NOW.
RIGHT NOW. NO GUESSWORK.
NO GUESSWORK. CORPORATIONS ACROSS AMERICA,
ACROSS THE WORLD, ARE CUTTING
BACK NON-ESSENTIAL TRAVEL.
SEVERELY CUTTING BACK
NON-ESSENTIAL TRAVEL.
NON-ESSENTIAL TRAVEL. CONFERENCES ARE -- ARE BEING
CANCELED.
CANCELED. I TALKED TO A DIPLOMAT WHO WAS
GOING TO A VERY CRITICAL
INTERNATIONAL MEETING, AND SAID
THAT HE WAS NOT GOING TO BE
GOING.
GOING. THAT THE COUNTRY DECIDED THEY
WERE GOING TO HAVE TO SIT IT
OUT.
OUT. YOU’RE LOOKING AT HUGE EVENTS
THAT ARE BEING CANCELED ACROSS
THE GLOBE, AND OUR PARENT
COMPANY HERE IS GOING TO HAVE TO
MAKE A DECISION ON THE OLYMPICS
IN JAPAN RIGHT NOW.
THE JAPANESE ARE TRYING TO
FIGURE OUT WHAT THEY’RE GOING TO
DO WITH THE OLYMPICS, AND I’M
SURE A LOT OF ORGANIZATIONS
ACROSS THE WORLD, THE SAME.
THIS IS -- THIS IS THE SEVERITY
OF THIS ON BUSINESS.
AS YOU SEE A LOT OF TANKERS JUST
SITTING OUT, YOU KNOW, IN CHINA,
IN PORTS, GOING NOWHERE.
THIS IS -- THIS IS AN EXTREME
SITUATION.
SITUATION. SUPPLY LINES HAVE BEEN
SHATTERED, AND THES GOING TO
HAVE -- IT’S GOING TO HAVE A
REAL EXTREME IMPACT, AND I DON’T
KNOW THAT WE’VE EVEN SEEN THE
BEGINNING OF THE WORST OF IT,
AND THAT’S GOT TO JUST TERRIFY
INVESTORS.
INVESTORS. >> UH-HUH.
>> UH-HUH. >> IT DOES.
TO ALL OF THOSE POINTS, YOU
SPEAK THE TRUTH.
I MEAN, FIRST OF ALL, WE SAW
WHAT HAPPENED TO THE WORLD’S
BIGGEST WIRELESS TECHNOLOGY
EVENT.
EVENT. THE MOBILE WORLD CONGRESS.
BIGGEST EVENT FOR WIRELESS
TECHNOLOGY IN THE WORLD GOT
CANCELED IN BARCELONA EARLIER
THIS YEAR.
THIS YEAR. AND FACEBOOK, A HUGE CONFERENCE
FOR ALL PEOPLE TIED TO ITS
APPLICATION AND PLATFORMS.
THEY ARE CANCELING THEIR
DEVELOPERS CONFERENCE LATER THIS
YEAR.
YEAR. EVERYBODY IS NOW LOOKING AT
THEIR TRAVEL PLANS SAYING, YES,
THIS COULD BE AN ISSUE.
MORE SO PERHAPS A BIT MORE
UNCERTAIN ABOUT THIS WHOLE THING
IS WHETHER OR NOT THAT BECOMES A
LONG-TERM ISSUE.
LONG-TERM ISSUE. RIGHT?
RIGHT? BECAUSE IF THIS IS JUST A
SITUATION WHERE IT’S THE NEXT
THREE OR SIX MONTHS, EVEN NINE
MONTHS, YOU CAN KIND OF SAY,
HEY, THINGS WILL BOUNCE BACK IN
THAT TILE.
THAT TILE. THE REAL UNCERTAINTY RIGHT NOW
IS ABOUT WHETHER OR NOT IT LASTS
FOR EVEN LONGER THAN THAT.
THAT’S THE REASON WHY A HOST OF
DIFFERENT COMPANIES FROM THE
LIKES OF MICROSOFT, TO OTHER
TECHNOLOGY COMPANIES, TO FOLKS
OUT THERE LINKED TO INDUSTRIALS
ARE SAYING, HEY, IF THE ECONOMY
SLOWS DOWN, OUR BUSINESS WILL
TAKE A HIT.
OUR REVENUES, OUR TOP-LINE
NUMBER, BOTTOM-LINE PROFITS WILL
TAKE A HIT AND WHY YOU’RE SEEING
THINK REVALUATION.
THINK REVALUATION. TO YOUR POINT ABOUT CERTAIN
COMPANIES IMPACTED BY THIS.
IT’S NOT ALL NEGATIVE.
RIGHT?
RIGHT? I JUST LOOKED EARLIER THIS
MORNING.
MORNING. SHARES OF CLOROX OF ALL
COMPANIES.
COMPANIES. NOT THE SEXIEST NAME IN THE
WORLD AT RECORD HIGHS NOW
BECAUSE IN PART PEOPLE ARE
LOOKING AT BLEACH AND SANITIZING
PRODUCTS.
PRODUCTS. BY THE WAY, FOR THE
VIDEOCONFERENCING THING YOU WERE
TALKING ABOUT.
TALKING ABOUT. ZOOM INDIVIDUAL JOE,-- VIDEO, TH
W.H.O. USES UP TO ITS RECORD
HIGHS.
HIGHS. IF I CAN’T TRAVEL I’M GROG TO
TELECONFERENCE MORE.
TELECONFERENCE MORE. KEEP AN EYE ON THOSE TYPE OF