Special Report | Markets in Turmoil: Remdesivir Challenges
For businesses around the world today isn't a restart it's a rethink that's why they're partnering with. Ibm retailers are keeping their systems up as millions of orders move online. Paul centers are using IBM Watson to manage an influx of customer questions with a I and solutions built on the IBM cloud are helping doctors care for patients remotely today. We're rethinking how business moves forward. Let's put smart to work visit. Ibm DOT com slash thing to learn more I NBC PRODUCER. Katie Kramer. One of the voices behind the CNBC podcast squawk pot. In these times of uncertainty we WANNA make sure we're bringing you our listeners as much information as possible as quickly as we can. That's why we're sharing with you now a CNBC special report markets in turmoil. Listening good evening. I'm Scott Wapner on day. One thirty seven of the corona virus crisis the nation's former vaccine chief tonight with an ominous warning for the country. Twenty twenty could be darkest winter in modern history. The doctor charged with finding a vaccine for the virus. Demoted by the White House. Speaks out our window of opportunity is closing tonight his plan and what the CDC is proposing plus new fears. This country is in for a shortage of a drug. Many think. We'll stop the virus and we need to be six feet. Apart this table got to real ranging America this CNBC. Special report markets in turmoil starts right. Now here's Scott Wapner. It is good to have you with us on this Thursday night after the Dow snap three straight days of losses. Let's get our first look this evening at futures right now. It is early of course and they are modestly lower across the board stocks though. Shrugging off more dismal unemployment numbers and erasing early day losses. Today the Dow rose more than three hundred seventy five points after being down more than four hundred. Fifty early on financials were the best performing sector for a change. American Express rising more than seven percent late this afternoon. The New York Stock Exchange said it will reopen the trading floor to some of its brokers on May Twenty six today in Washington ousted vaccine official rick. Bright taking center stage testifying before the House health subcommittee. Warning the government's current response to the corona virus could lead to even deadlier months ahead. We are facing a highly transmissible and deadly virus which not only claims lives but also disrupts the very foundations of our society. The American healthcare system is being taxed to the limit. Our economy is spiraling downward and our population is being paralyzed. By fear stemming from a lack of a coordinated response and a dearth accurate clear communication about the path forward. I fear the pandemic will get worse and be prolonged. They'll be likely a resurgence of Kobe. Nineteen this fall. It'll be greatly compound at by the challenges of seasonal influenza without better planning twenty twenty could be the darkest winter in modern history. First and foremost we need to be truthful. With the American people. Americans deserve the truth. The truth must be based on science. There is no master coordinated plan on how to respond to this outbreak. We don't have a strategy or plan in place that identifies each of those critical components and we don't have a designated agency that is sourcing those critical components and coming up with a strategy to make sure that we have those supplies when we need them. Cnbc CONTRIBUTOR DR Scott Gottlieb with us once again he is the former head of the FDA. Of course Dr Gotlib. Welcome back the explosive testimony from Dr. Bright is where we begin tonight. What was your biggest takeaway today? Well look I think Rick's right in so far as we face challenges ahead with this pathogen. It's not going away. This is likely to come endemic. I think the tools we're going to have in the fall a very different terms of dealing with this. We're GONNA know how to contain outbreaks in the fall. Hopefully we'll have much better testing in place. Certainly we'll have one more drugs available to US eventually. We'll have a vaccine probably towards later in the fall that will be able to use but this is going to circulate and as this collides with flu season will likely face challenges trying to differentiate corona virus from flow and. This is more contagious than the flu. So if this is left unchecked which it won't be but if it's left unchecked we could face another epidemic heading into the fall now. I think we're GONNA be in much better shape to try to grapple with that and prevent it but those are the risks. Do we need a moore master and coordinated plan as Dr Bright suggested today up till now most of the critical decision making Dr Gotlib has been left as we know to the states. Do we need a moore master coordinated plan from the Federal Government? Well look I think at this point. The states have done a good job. I think it's likely to remain. A state led effort and I think the states are in a much better position going into the fall to know what they need. What we're likely to see in the fall is rolling out breaks. I don't think that we're to have another national epidemic. I hope not. I think we're in a position to try to contain spread but we're likely to see rolling outbreaks where cities become epidemic or states have large outbreaks. And then it becomes incumbent upon local officials to implement to try to control those outbreaks. And so it's not necessarily a national response. It's going to be a state by state response. My one concern is that no state wants to go first and so if you're a city that has now braked you want to be the city that shuts down your airport or your economy to try to contain spread within your city to put to create safety for the nation as a whole and we saw with. Seattle. Seattle is very reluctant to take those measures when they should have. San Francisco is really the first city to implement those tough measures and so hopefully by the fall. Governors and mayors will be in a position to take more aggressive action earlier to try to contain spread. If they're the ones that have that outbreak we're finally getting the CDC reopening guidelines. We've been waiting for those a Dr Gotlib to deal with schools and workplaces camps childcare mass transit bars and restaurants. How strictly should states be following those? Well they're they're greatly scaled back in terms of what we were expecting. And what the draft documents said that were leaked unfortunately to the Washington Post but we gotta look at those draft because the reporters got a hold of them and what was essentially released. Were some of the figures if you will in those documents some of the flow charts and so it's not very specific guidance system businesses and I've been talking to a lot of business leaders who are now developing their own guidelines on their return to work what they plan to do in the workplace and what they're generating is far more specific far more granular more detailed and frankly more aggressive than what's outlined in those flowcharts. Cdc It's not clear this represents the totality of what CDC is going to put out but if it does. This is pretty much top-line guidance what the businesses are going to do is GonNa go well beyond this. You use the word greatly scaled back. Does that put more people at risk doctor. Well it's it's not as helpful as it could be. I mean I think what you want. From public. Health officials is more detailed guidance that provides more granularity more specificity. To businesses businesses now need to make decisions about how to implement hygiene and workplace how to implement social distancing how to how to create a staggered workforce. So that you're not bringing people together in groups how to implement testing in the work site if you want or make it available the guidances would put out tonight really the flow charts. That will put out tonight. All make those recommendations they say. Businesses should engage these activities. But they don't provide a lot of specificity on how to do that now they link back to Information Soriano. Cdc website so that's a little bit more granular but it's not specific to the workplace and so businesses now need to go beyond these flowcharts. He's flowcharts are sort of top lying. These are the things you should be thinking about now. Business need to implement more detailed plans on how to achieve these goals. Sounds like business is going to be left to itself much like the states where to try and figure this out on their own including how to deal with children back to school. Which New York's Governor? Cuomo today said he's unsure whether schools will be able to open in September. Do you think they will? I think it's too early to tell. Look it's going to depend on what July and August look like and if we head into July and August and the infection rate does come down. There's a seasonal here. We believe that will be a seasonal effect. We don't know how powerful it will be but if the infection rate does come down heading into July and August and we'll coming off of August where there's not a lot of background infection. I think there's going to be an attempt to reopen schools in the fall now. Schools may take certain measures to try to reduce the risk. They may stagger classes. They may have students work from home one or two days a week. They're going to try to create physical separation. They may try to expand their campus. So there's things schools are going to do but I think they'll attempt to reopen schools. And then we'll have to see how this progresses if we have outbreaks around the country in certain regions in certain cities in certain states. I think you'RE GONNA see rolling school closures. Hopefully we don't get to the point where there's a national epidemic again and you see simultaneous closures across the whole country. But I think we're likely to see rolling closures in different parts of the country as you have local infection in a city or state. We're seeing China. South Korea Hong Kong all facing new clusters tonight as they reopen even more. Is that a preview. Dr Gotlib of what may happen here as we open up more states. We're GONNA have as we reopen. Now we're going to have more infection now. If you look at the data the date is actually encouraging hospitalizations. Coming down cases of coming down even as we're testing more positively rates coming down so the national trend actually looks encouraging right now. But if you put if you follow the states that are reopening I would expect. Cases are going to go up and hospitalizations will go up. That's what we expected all along so that shouldn't surprise. You don't want them to go up a lot. You want to continue to monitor that. That's why we want to reopen slowly. So you can implement mitigation steps to prevent more outbreaks but heading into the fall. We're GONNA have cases we're GONNA have a spread of this virus. It's not going away. This corona virus. It's highly contagious. It's more contagious than the flu is going to be with us. It's going to be with US until we get the vaccine. Frankly it's going to be with US until after we get a vaccine that's going to become probably an endemic virus. That circulates each year. Now over time it will become far. Less fearsome will have drugs that treat it. We'll have immunity to it. Many of us will have been exposed. We'll have a vaccine so it's going to become something that we can deal with much more effectively but this is going to probably become a virus. That circulates around the globe on an annual basis. Let's talk about how we may deal with that. Dr Gotlib you stand with me just for a second here tonight. A warning over the supply of the potentially lifesaving drug Rendez Aveer. Cnbc's farmer reporter. Meg Terrell is with Dr Bryan Abrams. He is the CO head of Biotech Equity Research. Rbc Capital Markets. Meg Good evening. Hi Scott and Brian. It's great to have you joining us. I've been following your research now for more than a decade and I believe this is your first TV appearance of thank you for making a loss. But we're talking with you about a topic. That is a little scary. You know the first drug that shown any benefit in treating covert nineteen in. There might not be enough. What does your modeling show? I'm wondering if you can hear if he can hit his microphone. Maybe yes yes back so so yes so. Gilead has about one and a half million vials of deaths available about forty percent of that looks like it's going to be allocated to the US that's not going to be nearly enough. Based on our calculations with the updates recently from hhs around allocation it looks like the initial ruined versus by is going to cover only about half the patients who need this smart with up to three hundred thousand patients eligible for the drug through the summer not able to receive it until production begins to catch up to demand this fall. Now I know Gilead is working really hard to try and address this. It's not a trivial drug to produce. It takes time it takes specific raw materials. They've just signed several license. Agreement with generic license agreements with generic manufacturers to help ramp up production and we would expect more to become available globally in the coming months willing basis. O'brien tell us your assessment of the strength of the data Dr Fouled. She has been talking about it more recently. He's been calling the benefit pretty modest and he compared to the earliest days of treating issue. Which is sort of an implication that you know. It's just the first drug. It's not a be all end. All how would you assess the data and your expectation that as this drug potentially gets combined with other drugs as being tested now. Will it show more benefit with them? Yeah absolutely so this gets to the question of not only. How well does the drug actually work? But how does an the strongest a large study conducted anti where Endesa shorten the recovery time for severely affected patients from about fifteen to eleven days trended towards lowering the death rate modestly? We've also seen some less conclusive data the drug coming out of China where it did not reach its primary endpoint but they did look like there were some positive signals there now. There's several studies are going to be reading out of the next several weeks. And I think that's really gonNA help tell US exactly how this drug works where it might fit in. And who could benefit most from it? And that's going to be important to its usage given the to by now in terms of your your question about combinations. I think that's a really important point. So there's several different approaches that companies looking for corona treatments or taking the first of the direct acting antiviral Caesar drugs that work by preventing the virus from replicating spreading throughout the body and from infecting ourselves. And that's the category. That Rendez severe falls into another main category or the anti-inflammatories our immune modulators on a list category are the antibody treatments that are designed to mimic own immunity on those either derives from patients who've recovered from the virus or synthetically. There's definitely tangible or different drugs. In different categories to be used in combination. A Lot more. We still need to learn about how these drugs can use. Just as an example it was thought that the antiviral drugs are only going to work well in the early stages of disease if really immune reaction starts to cause lung damage but it turns out that that might be a misnomer so still a lot left to learn but combinations including the decimeter are certainly feasible. Well Brian we really appreciate the time you took with US tonight. And we look forward to continuing to follow your research on this as you've been really out in front of the pack in terms of modeling how much we'll be able to access this drug. Thanks for being with us. Appreciate it very much. Thank you for that interview Dr Gotlib. How concerned should we be about a possible reservoir of your shortage? We're not gonNA have as much of the drug as we want the. Nih study looked at this drug in the setting of severe patients and showed a benefit in that setting. But ideally. You'd probably want to move this drug earlier you'd want to use it more than a frontline setting and that's how doctors are going to want to use it so that when a patient who has corona virus who co morbidity has conditions that would predict that they might have a worse outcome comes into the emergency room. This is a drug. You Might WanNa hang right in the emergency room and start the patient on it right away. We're not GONNA have enough supply heading into the fall to do that. So there's not gonna be as much drug as we would want. I think later on in the fall towards the end of the year more supplies coming online. My understanding is and I think supplies gonNA build all through the fall. Julia has done a good job of changing the manufacturing process here making it more efficient use to be a nine month process. It got it down to six months. They reduced the number of steps. They've sourced more raw material for this. And so I think you're gonNA see supply ramp all through the summer into the fall. But ideally this is a drug you might want to use a bigger cohort of patients than what's going to be available. Dr Wants you to stay with me again because it. Rendez of your shortage. Not The only cause for concern tonight. Despite all of the ways you can now get tested for covert nine hundred thousand. Not all of those tests. Apparently are accurate. Make you have the latest now on the state of testing around this country as rates. Nasr testing has ramped up. Modeling groups are still saying. We're not doing enough. In fact one really prominent group from Harvard. Saint testing levels need to be at least three times higher per day than we're currently doing around nine hundred thousand tests right now as you can see in the last seven days we've been averaging around three hundred thousand tests per day also are taking a look at this on a state by state basis and data from the Cova tracking project show on a per capita basis states like New York Rhode Island Massachusetts. They're doing the most. But if you look at the Harvard groups modeling numbers they show. There are several states that are still not at the threshold. They need to be based on the size of their outbreaks about fourteen states and Washington. Dc Not hitting that testing level. They need to be testing and also showing percent positive rate of the tests getting returned a more than ten percent which the. Who is suggested means? They're potentially missing infections. And of course as testing is expanding there are also concerns. You mentioned about the test's accuracy three different kinds of tests on the market in the United States all have potential possibilities for false negatives for the most common tests called. Pcr tests that rate is estimated to be about five thirty percent for antibody test which tests for prior infection that can go as high as ten percent under the as tightened guidelines and for the newest kind of tests. Those are antigen tests. The FDA says that negative results do not rule out infection and in fact one test getting a lot of attention around that this week is Abbott's ide- now tests as there was an nyu study. That just came out suggesting that can miss a third to half of positive samples however people are coming out saying that might not be the best analysis in Abbott in a new statement tonight saying we're seeing studies being conducted to understand the role. The idea now test in ways they say it was not designed to be used then. Y YOU study results. They say are not consistent with other studies and relied on a small sample size. Still Scott this is causing a lot of concern as this is the main test that we've heard being used in the White House. I talked with Dr Michael Oester home about this infectious diseases expert at the University of Minnesota. Who said using this test to screen at the White House would be like giving squirt guns to the secret service. Scott Meg appreciated. Well bring back in Dr Gotlib Dr Gotlib. It sounds like in some respects. We're taking two steps forward and one step back when it comes to testing go back to what Dr Bright said. Today about the outbreak itself would quote get worse and be prolonged if we didn't quickly have a national testing strategy. Is this too much of a free for all well? I think we're going to have a lot of testing capacity heading into the fall and really heading into the summer. I think we'll conduct millions of tests a week and probably heading towards ten million brick. Gerard testified before Congress yesterday and said we'll be able to do ten million tests a week heading into September. That's probably right because that's that's owing to a lot of new technology is gonNA come on the market more point care tests more energy based tests doctors contest right in their offices Very inexpensively I think what we need to do is make sure one testings accessible. We have sites that can offer testing. That's going to be the challenge not the testing platforms and to that. We're using the right testing platform for the right purpose. And so the machines like the Abbot Machine. The rapid machine that the White House is using or the energy based tests like the one that was approved by Kaieda over the weekend. We'll have millions of those tests available though should really be using a doctor's office because are specific. Meaning that if they say you have corona virus you do but they're not uniformly sensitive so they will tell some patients they don't have the virus when they do now in a doctor's office that's okay because the doctors probably going to send off a confirmatory test anyway just to be sure if they get a negative result so if you can rapidly screen out eighty five or ninety percent of people and say they do have corona virus for the ten percent. Says they don't you might test them with something else. Pcr's good if you want more sensitivity and specificity more reliable test but you can't do it at scale in a manufacturing site or a workplace. You WanNa do things at scale. Look pooled pooled samples. We might take fifty employees and have them spit in a cup and test the whole cup at once. And if you get a positive in your test employees for that there's different platforms available including next generation sequencing. Which is a good tool for that. I'm on the board of aluminum. Company makes those tools but there's different technologies for different purposes. We need to make sure we're fitting the right technology to the right purpose. Don't WanNa let you go before I get your comment on another concerning story. Certainly to everybody especially parents now more than one hundred cases of that new syndrome affecting children in New York and now some disturbing new details Dr Gotlib about a new report out of Italy. What can you tell us well? There was a paper published in the Lancet that looked at thirty cases of what appears to be the same syndrome in Italy. About twenty of them occurred just in the last month or so and intent occurred the five years prior. So it looks like you know this sort of a preponderance of these cases more recently which is certainly suggestive that it's happening coincident with the corona virus outbreak and suggested that there might be a relationship we haven't been able to establish a relationship but the fact that we're seeing so many of these cases and usually these are pretty rare conditions. Kawasaki Syndrome in particular and in fact that the people who are presenting the kids who are presenting or either positive for corona virus active infection or have antibodies indicating that they had prior infection is certainly suggestive. And that's why everyone's is so concerned that there's a relationship between these cases and the virus but we haven't established that yet last question. A new study suggesting that speaking can produce droplets that. Stay in the air for at least eight minutes. That sounds much different than what we learned from the outset or at least what we thought we knew about this virus from the beginning. Yeah you know get to the question of how does this become airborne in the sense that small respiratory droplets. That can sit stay suspended for longer. Periods of time can transmit the infection. I mean it's certainly on the continuing possibility but the the thinking right now among most people is it's classically respiratory droplets. You need to be in close proximity to someone for an extended period of time and if you look at most of the studies where we've seen clusters of infection caused by a single individual. It was a situation where that individual was in close proximity to the infected person for an extended period of time so a lot of the infections for example happening in the home where you have one sick individual infecting other people in the home. So you're always gonNA find these outlier cases and studies that demonstrate that this is more transmissible in certain circumstances but I don't think that that's the overwhelming majority of the infection. That's happening relieve it. There we covered a lot. Dr Thanks as always. We'll see you tomorrow night. Thanks a lot Dr Scott Gottlieb. Cnbc contributor the former head of the FDA. Here's what's coming up next a new proposal from a top airline passenger's rights group about how the airlines should seat people to avoid. Seems like this when we come back? What's realistic and what's never going to happen. And all the seats at the bar have to be free. A RESTAURANT OWNER. Lets US inside as he rearranges his seating chart menu and everything else first photos from around the United States on the one hundred thirty seven th day of the corona virus crisis If you WANNA learn more about one of the fastest growing trends in investing we've got the podcast for you. It's ETF edge. I'm Bob Johnny. Join me as I'm joined by talk. Market participants help you build your best portfolio and the end of each episode stick around for our markets one two segments where we round out the conversation to help you better understand. Etf listen now and subscribe for exclusive content not heard on television you want even more tweet us at ETF EDGE CNBC. Welcome back. We have breaking news right now. Let's go right down to Washington. Dc where Kayla Tau. She is standing by Kayla. Scott much of the House Democrats three trillion dollar stimulus. Bill that will see a vote. Tomorrow is a non starter for Republicans in the White House. But I've learned that there is one piece of it that could see some support in the White House and that is another round of direct stimulus checks to Americans to senior administration. Officials told me that there is support in the White House at this moment for another round of stimulus checks and to be sure the Treasury Department's original blueprint did include a second check. But that did not get appropriated in the cares act back in March to sure there are many conservatives like Kevin Hassett Larry Kudlow and Mark Meadows. Who Do not believe that the US can spend its way out of this crisis. So support is not uniform. But I'm told by these. Two senior administration officials that there isn't acknowledgement privately. That more money will need to get into the hands of Americans directly as unemployment remains high and business. Revenues are slow to return the White House at this hour. Provides this statement from spokesman Judd Deer. He says as president trump has said. We're going to ensure that we take care of all Americans so that we emerge from this challenge healthy stronger and with economic prosperity. Which is why. The White House is focused on Pro-growth Middle-class tax and Regulatory Relief Scott when these talks beginning ernest in just a couple of weeks. This could be something that is on the minds of many Americans and could be on the negotiating table with support at this moment for another round of stimulus checks from the White House. As we know now Kayla we're still planning on a vote in the house tomorrow. That is the plan as for now but Scott. It's worth noting this is dead on arrival in the Senate Senate Majority Leader Mitch. Mcconnell has said that he does not believe that anything near a blank. Check is what we're going to see this time around at least in his chamber. Appreciate that very much Kayla. Thank you very much for your breaking news tonight. The National Association of Airline Passengers Meantime Petitioning the FAA and Department of Transportation This evening to force airlines to limit capacity to prevent the spread of the virus. They want flights to be no more than half full. Seedings should be arranged for safe social distancing. They say they want airlines to give passengers and crew protective gear as well and they're also calling cleaning standards key member of Congress also weighing in on the path forward for the airlines. Get to fill the bowl with more on what is possible and what is not fill Scott. We're talking about representative Peter Defazio. And he's an important person in Congress because he heads the House Transportation Committee so when he speaks the airlines listen and today he is speaking loudly about the fact that he thinks these airplanes that are flying right now. We've seen these pictures. Should not be as full as as some of them have been in the letter he sent to the Airlines for America. That's the trade group that oversees the airline industry. He writes who among the CEO of a four carriers would want a member of their own family to be assigned to a middle seat between potentially contagious passengers. In the middle of a global pandemic. These are some of the images we've seen over the last several days especially on high traffic route. Let's from New York to San Francisco. I heard from a friend flying from Dallas to Chicago last night. He was outraged at how many people were on his flight. As the airlines have dropped flights from their schedule. They have consolidated when people are flying in particular routes and those planes have been many times seventy seventy five percent. Full people are saying they're completely full. The problem is this the. Us passenger levels right now are still down ninety three percent so the airlines are not making any money at in the few times that they can fill up a plane so that it is a quote profitable flight. That's what they're doing on average however the average number of passengers on a plane right now is about seventeen and the problem is this you get too many planes and too much staff for the airlines. Take a look at Delta today. It said it's going to be retiring. All of the Boeing triple seven planes that they fly those are primarily on their international routes. They're also telling their pilot. They have fourteen thousand of them. They have seven thousand too many for the schedule that they are setting for the fall. Scott peter defazio would love to see the airlines. Make sure that the middle seat is always unoccupied and limit the number of people on a plane to no more than two thirds of the seat. If that were to be the case a hundred percent across the board the airlines would not make money. Fill a somewhat sympathetic. You know many are to the plight of the airlines right now. It just seems completely unacceptable. Some of those photos coming out of airlines. That are packed and people are clearly uncomfortable. There's not social distancing at all it just making people really uncomfortable and that's the point representative Defazio and that's why he's saying at a minimum. You need to have the middle seat. Empty so the question then becomes. How did the year lines turn a profit? Well if you're going to keep that middle seat empty and represented the Facia says go ahead and charge more for an airfare ticket for a plane ticket but you know how much more you'd have to charge Scott anywhere between forty fifty and sixty percent so now the the fair that might be a hundred eighty dollars turns into three hundred dollars and that has the impact of telling making people say I do. I Really WanNa take this light. Yeah maybe not right now. And that's the last thing the airlines need right now. Yeah I'll tell you what though could also though these sorts of pictures that we're looking at right now could backfire on the airlines in and of itself fill in that people who are seeing this right now are going to say you know. I was thinking about taking a flight but now I'm not if that's what the airlines are doing. So they're missing out on the money anyway. If people see these photos and don't fly absolutely it's all about comfort level in right now very very few people comfortable flying in the US if some of these planes though are packed the photos don't lie. Phil appreciate it very much. Thank you Philip Tonight. Here's what else is coming up on this. Cnbc special report this table. One thanks to go one. Restaurant owner rearranging seeds for reopening. Shows us? How he's doing it plus a first look at what your office will look like when you go back doctor now. Making arrangements for offices big and small shows us his strategy. We're back in two minutes rearranging America from offices. We need to be feet apart to restaurants what it will all look like. It's the new path forward for America this. Cnbc special report continues once again. Here's Scott Wapner. Welcome back. Let's get another check of futures at this hour after today's Wall Street rally. Pretty good turnaround on the street today. And we're turning around the futures as well a B. It slightly. We are in the green though across the board as four today. Those same green arrows. The Dow rising three hundred seventy seven points up for the first time this week. The strongest sector today add to be financials FIF- gains for American Express. Wells Fargo J. P. Morgan and Goldman Sachs all for a change helping the Dow. Well when restaurants open for sit-down service. We're going to see big changes. Of course tonight. What one owner is doing to get ready for that? It's a scene playing out behind closed. Doors at thousands of America's restaurants here's Andrea Day armed with an infrared temperature gun chef Rafael. A run is ready for the day. He can do business again when somebody gets into the door temperature. The needle never fever unwise. They're not it into your business. This chefs to New York restaurants. Shut DOWN TO DINERS BACK in March. This one is located in Westchester County. One of the state's earliest hotspots. He's okay you can work in any seven points. It's all part of the new protocol guidelines for re opening after Cova nineteen a documentary just received from his town's Chamber of Commerce. It's all designed to help virus proof every inch of his three thousand square foot eatery menu that everyday we used to clean sanitized. Make sure they were Nice presentable. Now throw away just like paper that once you know somebody touches declined touches it. It's just toss out in the garbage so this used to be our check presenter. No more because it's plastic. You cannot have. It uses the new way of presenting. Check your you go. All staff have to wear masks while they're working on when we all the seats at the bar have to he free fourteen barstools get carried away protocol. We need to be six feet apart. This Day passed the move forward. The restaurants tables are also getting the Cova treatment to have to go seeing shrinking down by chairs number of tables. It's quite diverse. It just hurts your heart. We need to do all this changes to lakeshore than our clients. Come out and feel safe. In the end chef Rafael carries away. Eleven of the nineteen tables and more than half. The chairs are gone total seats on the front of the restaurants. Where Ninety seats now. We're at forty one and this new normal will be tough on the business expenses that we have we would have. We would have to move out two hundred people a day so you have to turn this four times which is almost impossible to see because everybody wants to between six thirty thirty. The numbers are stacked against him but he says he's ready for the challenge. This is a new business plan. We're going to give one hundred ten percent sure that we survive and see the light of the other side of the. We have only one choice to succeed. We're rooting for you. Chef I'm Andrea Day. Cnbc Andrea thank. You we certainly are rooting for everybody. So that's the restaurant side of the story. Now Dr who is rearranging office space. Dr Robert Quigley is the senior vice president and Regional Manager for the Americas at International SOS. It's a company that provides medical consultations and services to workplaces DR quickly. Good to have you on our program tonight. We actually have blueprints of an office space from before and sort of after an ongoing project that you're working on. I'M GONNA put those on the screen. I'd like you to talk us through. What the new office so to speak is going to look like on the other side of this certainly and this office is clearly representative of many offices across America right now and the request that we are getting international last from organizations in every sector is. What do we do how to reopen up and we always begin by saying look? It's it's GonNa be like a dimmer light switch. He's not going to be an on off and what you see on the screen in front of you is a before. And after appearance of basic layout that we have proposed to mitigate against transmission of the corona virus in the new office but that is just a static picture wrapped to understand that there will be many protocols procedures that are shared between us and our clients with regards to practices. And what we've done is we've broken down the project if you like for all of our clients into employees infrastructure and then guest visitors vendors and we address each of those groups of people all of whom are potentially at risk as carriers. You look at the screen in the after appearance you can see how we encourage a single point of entry represented by Poe on the screen when one walks through that single point of entry. There's a screening station which may or may not be a manned by a healthcare professional. Typically not we do suggest to set the organization Alexa Hygiene Ser. Who is at least up to speed on? What are the appropriate questions? It should be asked in the event the individual comes in and they have a fever. We also have a room near that point of entry which we call the red zone and that's a room where one would be delegated if one at a fever and from there we have connected. Medical Emergency Response plans vigil to be assisted out of the workplace or going through ems. What I what I notice from from looking at these pictures it appears to me. Is that the office. Space itself is the same size. We just have a fewer number of people within that space as we have been thinking about. What the office itself would look like in the future and whether companies would actually be taking smaller footprints in a commercial building this suggests otherwise. Well it doesn't. It doesn't if you look at it closely. You can see that what we've done is we've tried to maintain that fundamental principle of the social distancing. So we've separated. What might be a quadrangular desk arrangement down with double or if you have a desk arranger that are long tables and chairs. We alternate Seats and we have been able to do that already in a variety of places and that seems to work very well so we don't necessarily have to cut down on the top graphic square footage as much as we have to carve out pathways and opportunities where one is not going to breach the basic at two meters six foot social distance principle which we know is so fundamental obviously in the context of universal precautions wearing a mask and washing one's hands and having sanitizer which we have located all over that particular blueprint in front of interesting work ahead for all of us as we think about this. Daca quickly. We appreciate your time so much. Thank you very much. Thank you I appreciate you joining US tonight. Here's what's next on this. Cnbc special report. He's demand behind one of the world's most iconic clothing brands. Joseph Abboud is with US next on the future of retail before the break images from around the world on the one hundred thirty seven day of the global pandemic Welcome back according to the National Retail Federation the retail sector employs twenty nine million Americans but the two point five trillion dollar. Fashion Industry is at a dangerous crossroads with US tonight. Is the fashion icon. Joseph Abboud. He is the founder of a. Apparel Joseph. Welcome to our programs. Nice to see you you to Scott. Thanks for having me. You've seen so much of retail over the years. How would you characterize tonight the trouble that that industry is in well? It's unprecedented really We've been through recessions but clearly there's never been excuse me healthy shoe on the other side of it so the fashion industry isn't quite sure how it's going to reinvent itself but for sure fashion is always creative in. We'll find a way to get through it. Do you worry that we're GONNA see more bankruptcies we're just coming off of a filing by Neiman Marcus about a week ago. Barney's here in New York a some months ago Nordstrom closing a bunch of a bunch of its stores. How bad do you think it gets? Well I think the companies that were struggling financially before the crisis are going to struggle even more and it's it's fortunate Survival of the fittest and a lot of the retailers are consolidating where you may see a company like Hudson Bay owners of saks fifth avenue acquire parts of Neiman markets. So I think we'll see less stores. There are three point six million retail stores in all price points across this country. So I think we are over stored and I think the relevance now is not about price. That's a great myth. That's been perpetrated on the retail industry. It's about value quality storytelling relevance for retailers especially with the new generations with the with the millennials and certainly Gen Z. Right behind I'm thinking of so many different issues facing the industry working at home for example having the obvious impact of who needs to go out and buy a suit either male or female. How should we be thinking of that? And when you do go out how can you try anything on in the age of Mid Nineteen? That's right and all of those questions are unanswered is trying to be innovative about how we fit men to suits now. Think about it. Think about that intimate relationship of a guy coming up and trying a jacket on you or taking measurements. That's uncomfortable for the moment. So we don't have the answers for that. In virtual fittings and online fittings don't really work so I think what's going to happen with retail is that people are going to look for more intimate settings to shop smaller retail environments with more space where people are more comfortable and they're familiar with the owners so it's a new paradigm for us and I think the great part of our industry is what we do find a way. We will find a way to get through this but there are a lot of unanswered questions was going to ask you. If it's this is all bad for the mom and pop retailer but what you just said actually had me thinking that maybe in this new environment where it's more personalized as you just suggested they could actually do. Okay I think the greatest creativity we habits with the small shops where you find new product new ideas the service that people really love to have so. I'm hoping that there will be this. this growth of the small specialty store where service and quality really become important in. That price is not the only driving factor. The other piece to Scott is that I think people will start to look at healing fabrics like pure cashmere pure wool pure linen pure cotton. It's not the time for sensationalist fashion. It's fashion always finds a way it's a mirror of society and we have to look inward now and I think it's dressing for the inside literally and figuratively not for the outside interesting thought there and finally a thought from you on something that was wants near and dear to your heart and your business and you ever hold a fashion show again. Well you know that's really interesting. We both know the energy and excitement of a fashion show being in proximity close proximity to so many people the Paparazzi cameras energy models. I don't know I think virtual fashion shows will happen but I don't think in the near future. We're going to see that excitement. At least on the runway. We may see it on the screen but not on the runway but we lose some energy from that. Yeah that's that's sad to hear. Fashion ICON JOE booed. We appreciate your time. We wish you will thank you. Scott stay will well are. We do have more breaking news tonight right now. Let's get back to Kayla towel. She Kayla Scott. The trump administration has drafted an executive order that would mandate essential drugs be produced here in the US according to two sources familiar with the matter one of whom says this executive order could be released as soon as tomorrow but is awaiting the President? Sign up this comes amid multiple supply chain shortages amid the havoc that has been wreaked by the corona virus crisis. The administration has multiple efforts underway to try to move supply chains to the US to try to avoid those supply chains shortages in the future at Bloomberg News which was first to report this news. Notes that there would be exceptions if the US production isn't in the public interest or if it would raise prices of those drugs by more than twenty five percent one of my sources. Scott says that this order would direct hhs to study the supply chain identify weaknesses and in ninety days. Deliver report to the president. Scott appreciate it. We'll follow that tomorrow. Our nightly salute to restaurants is next our nightly salute to restaurants from Alaska to New York. Thanks for being with us. Shark tank is coming up next if you WANNA learn more about one of the fastest growing trends in investing we've got the podcast for you. It's ETF edge. I'm Bob Johnny. Join me as I'm joined by top market participants help you build your best portfolio and the end of each episode stick around for our markets one two segments where we round out the conversation to help you better understand. 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