>> this is daybreak middle east. our top stories. the world heal organization is set to meet as the death toll from the coronavirus hates 170. g willwell says that bu have implications for the economy near-term. 4.5 months on from the aramco attack, iraq's oil markets they have had another missile strike on the oil giant facility. facebook shares -- in after it posts its lowest ever quarterly sales growth.

it is 8 a.m. this is bloomberg daybreak. there is mounting evidence that the coronavirus is disrupting the world's second-largest economy. run you through some key called. saying it will have a profound impact on consumption. you are looking at potentially demand growth out of china cut by 71% to 100,000 barrels for they. - a day. the algerian minister is saying that could come in the next few days. we are below the $60 a barrel level. mini futures down about .6%, struggling a record highs on speculation the recent rally has gone far too far given where we are with economic growth in the risks to that. from the folks at the ig asia team, they are saying --

another case of the market waking up to the realities of the virus. let's dig into some of the other markets. juliette, taiwan is coming back online after the lunar new year break. the index is getting smashed. juliette: it absolutely is. no surprise it is playing catch-up to the selloff you have seen across the rest of asia. stocks in taipei have fallen 5% on the main index as it resumes trade for the first time since the lunar new year. precision was makes most of the world iphones sinking by 7% and taiwan semiconductor off by 3%. big losers include airlines. dropping by 7%. this is all impacting stocks in taipei, which are playing catch up to the selloff usyou have seen.

japan, korea and hong kong will y.t hard on their first da this is the biggest drop we have seen since october 2018. >> let's also get into the conversation, more contained reaction in india. run us to the highlights -- through the highlights there. >> we must remember that while we do have global indices weighing on the sentiments when it comes to indian markets as a result of selling pressures, we allalso heading into an important union budget which may off sentimentrisk in india which is why the nifty and sensex are declining by half a percent. hy the rupee weakens against the u.s. dollar. we're also keeping an eye on two of india's largest consumption companies with their earnings

coming out tomorrow. that is why you're seeing volatility. >> thank you very much with some of the market details. let's check in on the first word headlines from around the world. get you up to speed with some of the stories. the european parliament has approved the brexit deal clearing the way for the u.k. to leave the e.u. on friday night. the fight over the divorce part was the easy part in the goshen's in the coming 11 months will be more difficult. -- the easy part but the negotiations in the coming 11 months will be difficult. president trump signed a new deal with mexico and canada. the deal delivers on one of trump'campaign promises to replace the north american free trade agreement. which he says has drained the u.s. of jobs. president trump: everybody said this was a deal that could not be done. too complicated, too big. we got it done.

today, we're finally ending the into nightmare and signing law the brand-new u.s.-mexico-canada agreement. >> a senior israeli official says that the annexation of parts of the west bank will not happen next week. benjamin netanyahu pledge to act quickly after the u.s. released a plan to end the conflict. he told local radio the proposal must be brought before the attorney general. meanwhile palestinians rejected president trump's plan. and facebook shares, they slumped in after-hours trade after it posted fourth-quarter results. revenue came in at $21.1 billion. a 25% increase from a year ea rlier. the slowest quarterly ever sales growth for the media giant. the world health organization is considering issuing a global alarm. china says the death toll from

the coronavirus has hit 170. earlier white house advisor larry kudlow said washington is working with authorities, as governments ramp-up efforts to take and contain the outbreak. >> we are sending our best experts from cdc to help. the chinese invited us to do so. we're working with the world health organization to try to get through this as rapidly as possible. >> let's cross to our correspondent selina wang in beijing. get us up to speed with what we have this very minute. selina: watching the numbers by the hour. death toll increasing, reaching 170. the number of confirmed cases surpassed 7,700. here in beijing -- [audio popping] you can feel fear. spreading more stores and restaurants closing down. even though the vast majority of these cases are concentrated in

mainland china, take a look at this chart. across asia with us for an cases in the united states and europe and germany and the first case in the middle east. you are seeing that countries tightening their borders. the u.s. is considering several options including a ban on flights in and out of china. you have airlines is a spending their flights to china. and u.k., the u.s. and other countries evacuating your citizens from the most affected areas in wuhan. the who will decide whether or not to declare this a public of emergency. if they do change their minds couldg this meeting, it make them easier to organize government coordination here. >> thank you very much. it is a rapidly moving story.

this time from united states. the president has named a coronavirus task force. the goes on to score glowing coordination globally and trying to contain a wider travel of the coronavirus. it was the federal reserve's policy decision overnight. speaking afterwards, jay powell says he is monitoring the situation. jay: there are signs and reason to expect a rebound and then comes the coronavirus, which it's too early to say with the effects will be. as i mentioned, we are monitoring carefully. there were clearly the implications in the near term for chinese output, and i would guess for some of their close in neighbors. we will have to see what the effect is globally. >> let's bring the senior market analyst. jeff, one of the observers even ift very potently,

1% of those infected die and the disease spreads globally, that'as still a lot of people who are passing away. bee markets appears to beginning to price in a much more serious scenario. where is you you're thinking at t moment? >> there is still not evidence yet, that it is as bureau and as virulent as sars. actually creating is a self perpetuating negative feedback loop on economic activity. people stopped traveling, airlines reduce capacity. a negativeows intno feedback loop which slows economic activity. real impacthere the is going to be felt, even if it is not exactly in the number of

people who pass away or are infected. >> jeff, you have got hong kong suspending travel to china. in europe schools uninviting exchange student. restaurant and south korea beginning to turn away chinese customers. how much of a buffer does the chinese economy have to deal with this? time is running out. how long would you say they have before they are serious, perhaps on the longer-term, not easily reversible damage? jeffrey: not sure if it is coming to that. i think there is a lot of paranoia running around. it's very sad to see, to be honest. we just have to do with that in modern society. china itself has an awful lot of capacity to stimulate the economy. i don't think they are going to pull the handle until they get a control of the actual viral

outbreak because that would be self-defeating. i don't think markets should underestimate the capacity of china to throw the kitchen sink literally at the economy to stimulate it once we get this virus under control. although it is negative now, i have no doubt that china will respond aggressively on the hasulatus front once this passed. >> jeff, do you see this as a buying opportunity? by the sounds of that you do not expect this to last very long. some of the valuations could get interesting for sharp recovery when it does get in check. piece ofi guess it's a string. we do not know if it will go on to three weeks or three months. the longer it goes on, the deeper the effect on markets. but, when you take away the wuhan virus, we are still in the

world where central bank money is very cheap, where there's a savings glut looking for a home. those will still be here once we get past this it up. i do regard asset markets and equities in particular if we see sell off.e buyingt there will be a opportunity given the underlying conditions that have driven asset markets to these levels already. so, i think that, the effects will pass just as quickly as oil did with the saudi attacks last year. >> where exactly are you recommending clients to add to your -- their portfolio? where in asia would an allocation be most prudent. you are saying and equities -- in equities but where and what

particular? right now you have to accept what is happening in you have to be more defensive. you are looking at consumer staples. things that people need to be doing even sitting at home and not going out and doing anything because of this fire is. -- this virus. they have to eat, have electricity and water. utilities, consumer staples, you should have some gold as a he dge as well. perhaps you overweight that side of things. this is what i'm really saying to people. you need to move to the conservative, boring corner of the equity markets that act more like bonds in equity sometimes. that's the activities people have to do every day despite what is going on in the world. >> jeff, it has been a great chat so far. he stays with us. quick reminder

of some of the important conversations we will have. we'll ask the ceo of the pharmaceutical company roche when we speak to him. an incredible conversation. much more ahead. this is bloomberg. ♪

jaguarking news from land rover. the ceo is going to be retiring at the end of his term. he has been in his current position for 10 years. it has been a long tenure. it will be inducing to see with the investor reaction is going to be in the coming hours. be it is interesting. simone, what is on your radar. good morning. simone: good morning. i'm looking at lebanon, because prices of 2020 and 2021 debt have fallen to record lows

-- as their debt crisis seems to spiral or all of control. the 2020 debt in the white. the 2021 debt in the blue. that fell below 50 cents on the dollar for the first time. this is happening as the lebanese cabinet is meeting to try to determine whether or not it should actually pay off that debt in the white due march 9. it's a $1.2 billion euro bond. and lebanon has the money to do that. the thinking goes if the country is going to default anyway, why throw good money after bad, particular when you have protesters in the streets who might not be so happy about the country using is limited reserves to pay back the banks. markets not reacting well to this news. hence the sell off. we are likely to see some big

swings based on what the government decides. a look at how her middle east markets fared yesterday. most of our indices ended higher. there was not a ton of volume in the markets. egypt leaving the way up 1%. >> thank you for that. in doha. let's talk about the fed. they kept key interest rates unchanged as expected but jay powell hinted that they will pull out all the stops. inf halley is still with us takata. listening to -- in jakarta. ll, he is to mr. powe more frustrated with low running inflation. the bar is much higher to hike than it is to cut. am i reading this correctly?

, definitely, but i do not think that problem is a problem unique to the united states. any signsting to get of inflation's anywhere in the world and although unemployment seems to be a record those, no one feel secure in their jobs, a nd nobody seems to be getting a large pay rise. i think this is why we are not seeing this inflation coming through. it's worries about the future and about jobs, and also a lack of wage increases. there is not that momentum to drive that spending. also, because we have such a huge overcapacity and manufacturing around the world, that consistently acts as a cap on rising prices for manufactured goods for example. >> so, where do you expects the rates to go from this point onwards? very goodhat's a question. my answer in the short term is it depends.

situationan virus escalate sharply and we start having a very noticeable impact on global growth, the fed may need to pivot to cut rates and to put monetary policy to work. they won't be alone there. assuming they get a hold of this whole situation and it passes, i believe the fed will remain on hold for the rest of the year. they have pretty much said that was their plan initially. and u.s. data and u.s. on a u.s.tare a-- unemployment are all at very g ood levels. there is no reason to cut rates in this situation. >> what they did do is increase the interest on excess reserves. that's perhaps where the focus should be really for global investors. anfrey: there was more of

adjustment to bring it into the funds between 1.5 and 1.75. they are trying to build a bank reserves as well since the because we keep getting these bi g short-term funding squeezes in the repo market. that could be a precursor to the fed starting to reduce their short end bill buying. i think that is the most likely place where we will see some movement from the fed, a reduction of that short-term bill buying. this will all depend on the effects that we see from this viral outbreak in china and now internationally. >> it sounds to me like you do want to call it quantitative easing. jeff, in terms of the u.s. equity story, tesla knocking it out of the park with their numbers. you had apple impress as well. beating expectations. is this a good point to get into

u.s. stocks despite the uncertainty from the coronavirus? jeffrey: i think it's a great move at the moment. we saw the rally yesterday that lasted 24 hours. here we are back to flat gains. good results that came out today from microsoft. earnings season is going very strongly in the united states, but external factors are starting to weigh on things. my thought right now that it is being extremely bullish on equities at this level is perhaps a brave move in that we can more than likely get better levels to reenter those market at a, in the next month or two. >> let's see if we can find you something that has better valuation because the folks at morgan stanley say u.k. shares

are too cheap to ignore. you have europe in aggregate may not look fundamentally cheap but the u.k. does. implying a 13% re-rating. .k.terms of p.e. the msci u trading at a 20% discount. are you looking at that? jeffrey: i have been quite bullish on the u.k. for a while. i have one daughter at uni there. as she got 25% cheaper over the last three years with brexit. u.k. assetsink that have been extremely undervalued with the sterling down at the levels they are. i think the u.k. i s going to do much better than everybody say, post-brexit. i totally agree with the thesis that there is going to be some wonderful opportunities in the

united kingdom in the coming year. >> it has been great catching up. jeff halley, a senior market analyst. >coming up we talk about the commercial bank in qatar. we are seeing earnings season. the ceo will join us later this hour. this is bloomberg. ♪

>> here is another quick. check of the latest headlines kicking off with elon musk swells his fortune by $2 billion in one hour as tesla shares took off. revenue in the last quarter was a record and car production and delivery are exhilarating. the new modely y is ahead of schedule. >> super fired up about where tesla will be in the next 10 years. we will produce a partially 1000 times more cars in 2020 then we

produced in 2010 -- than we produced in 2010. >> samsung profit missed estimates, amid weak demand hitting the display business. $4.4 billion of med net income. at deutsche bank is bonus.g to give up its the board says it is willing to give up its bonus components related to individual performers but will still get other awards totalling $15 million. the bank is cutting the bonus pool by 20% and discretionary pay will be cut by a third. that is your bloomberg business flash. coming up on the program, the commercial bank of cutter

reports -- of qatar, we speak to the group's ceo joseph abraham next. vietnam's index is down 3.1%. this is bloomberg. ♪

> it is a loving: 30 in new york. we're looking at u.s. 10 year yields rising as an increase in the fatalities and infections from the coronavirus dampen risk appetite. the white house announced a new tax force -- task force. equity futures are getting affected in the last 30 minutes and the bloomberg dollar index is unchanged but still 1200 to that crucial, mark. thes check in on some of other headlines. the world health organization is called an emergency meeting thursday to discuss the alarm

over the coronavirus. president trump has also just announced a task force to tackle the outbreak. governments are tightening travel restrictions and several airlines are cutting services to china. as the death toll mounts. jack ma is the latest high-profile figure offering to help fight the virus outbreak. china's richest man will donate $50 million through his charitable donation and the foundation joining bill and melinda gates and pledging assistance on top of alibaba offering to establish $145 million fun and share his expertise in artificial intelligence to researchers. the european union has followed britain and topstop short of banning huawei from 5g. e.u.'ss the second-largest trading partner. beijing had listed repercussion if huawei was kept out of the 5g

rollout. warren buffett is pulling out of the newspaper business. berkshire hathaway is selling its bh media unit and 30 daily papers. buffett delivered papers as a teenager but said last year that most surviving titles are "toast." and that is your first word headlines. let's check in on some of the market action. with juliet in singapore. sixthte: we are seeing a session of losses on the mcsi, the longest losing streak since october 28. taiwan stocks resuming trade since the lunar new year. from the likes from the airlines. eva airways and fox conn. the taiex extending losses down 5.5%. the at not which also resume trade being hit hard, too --

vietnam which also resume to trade being hit hard, too. poweell mentioned some of the economic uncertainties with money going into the yen. the nikkei off by one point and percent. and we are talking about samsung's earnings not helping the sentiment and weighing on the cost be which is down -- on the kospi. .e.m.'s are getting head as well and a lot of weakness in the taiwanese dollar. and south korea's juan under pressure. although we did hear from a south korean officials say it is too early to assess the impact of the coronavirus and whether that would mean a rate cut from the basink of korea. >> when it comes to hong kong property stocks are hit especially hard, but what are some of the key names? juliette: absolutely. a lot of those landlords, the big banks weighing on the hang seng index. it is worth noting that hong

kong is another market under pressure. yesterday we sell the property index down 4.2%. inlly testing these lows august at the height of the protests when that was impacting sentiment in the sector hard as well. today the hang seng property index is down 1.5% after closing lower by 3.3%. onebloomberg intelligence, of our real estate analyst that the concerns about the luxuryinty in wuhan and retail leasing will continue until we do not see any material coronavirus outbreak over the next two weeks. >> thank you very much with the market rather. the commercial bank of qatar, the country's third largest lender by assets, has reported slightly over 2 billion in income. year.s a 22% from last

joining us now is the ceo joseph abraham. a bit of uncertainty last quarter in the global macro story. how do that/through into operating conditions for you? throughid that splash into operating conditions for you? qatarilst the overall -- remains well regarded by overseas investors. we didn't see a great impact on our operating environment or our business. we believe we have a very strong franchise which a allows us to go through any voluntee volatil. >> where does that leave you with a lower rates we are from central banks around the world, bleeding into the gulf? that makes it a lot more challenging, doesn't it? >> actually ,we've found we are

using the lower rate environment to manage our cost of funds quite aggressively. we've seen some good repricing opportunities for some of our capital market issuances both internationally. last year we did swiss bond issuance which was -- at a very attractive yield. and similarly, you can see our net interest margin has grown from 2.1% to 2.5%. that is a combination of managing loan yields, and managing our costs for funds which has benefited us overall. we've actually seen positive benefit from the low rate environment. >> what about the bank's loans to construction and real estate? i look at your bank and your peers, the reality is you have more exposure than some of the

other names in the industry. have you changed high you approach that, given the recent weakness we have seen? -- how you approach that, given the recent weakness you have seen? >> absolutely. two years ago we started a five-year strategy and one of our core focus areas was real estate. we were at 28% in our loan book, versus 16% as the overall economy figure. we have to bring that down. today we are down to 21%. we have had a steady downward movement in our real estate exposure and we are managing that part of our portfolio quite, id'd say, quite carefully. we're on track. to get it to the overall economy levels of 16% which will happen over the next two to three years. banke wave of consolidation continues to accelerate across the gulf. last time you made it clear that in an m&a scenario would like to

be the acquirer. have you made any progress, are you talking to anybody? frankly,very consolidation is not in our strategic plan. we are focusing on organic growth. if anything happens in qatar, which we have just seen one arrower in ibq, that needs meeting of minds on valuations etc. for us, if and when something happens, we will try to strengthen our balance sheet so we are a consolidater rather than a consolidatee. it is currently not in our strategic plan. we'll see if something turns up we will make sure that we are in a strong position when ever those discussions do happen. >> it might not be in your plan, but as you look at the industry in qatar, would you say consolidation is needed? if so, is it needed urgently?

isi would say consolidation definitely good for the overall banking industry. we have a quite a number of banks. it is good for the industry, and also good for the consumer. f getting,nge is o usually a consolidation will happen if a bank is weak or in trouble or for strategic reasons of clients or geography. none of the qatari banks are in serious trouble. therefore, you have strong banks trying to do a merger. it would challenges around valuations and getting everyone to agree who values it at what. will be aat burden because there is no pressure at. individual banks >> what about in some of the surrounding countries? you have a stake in the national bank of oman.

we had a leadership transition a couple weeks ago. what do you want to do there? >> well, we are long-term investors. we said earlier that strategically oman and turkey geographies we believe are important for the long-term future of qatar. we are a shareholder in the national bank of oman, the third largest bank. it's something we believe is a good position. we would like to continue to see national bank of oman grow its financial strength. last year, there was a proposal dophar.rger with bank but, as i said earlier, merger has to be beneficial for the bank. we did not think that that was appropriate for the national bank of oman. those discussions were discontinued, but we remain open to any consolidation discussions in oman, because we believe that is a market which national bank of oman would benefit from an a

consolidation. it has the capital. any discussions would be something which we will do from a position of strength. >> to what extent have you factored in a potential rapprochement between qatar and saudi arabia and the uae after the standoff has lasted more than investors like it to? at theee countries are forefront of the conflict and they need the integration and the capital and the. confidence. are you optimistic that progress can be made? you're absolutely right it would be to the benefit of all the parties involved. we are planning for the worst and hoping for the best. so, if something happens, that's great. like i said, it is good for all of the economies and international investment sentiment towards the region, but we are planning for a continuing. if it happens, we have of site.

upside.ave >> it has been great having this conversation. joseph abraham, the coeo of commercial bank of qatar. why not even the world biggest ipo can get the saudis trading more. volumes have been surprisingly weak. this is bloomberg. ♪

let's get another quick check of the latest business flash headlines starting up a news around the chief executive of jaguar land rover retiring. he's credited with turning around the flagging business owned by an indian conglomerate. he will remain and nonexecutive vice chairman and the search committee will look for a replacement. 90 positions are being limited making up to 2% of the

workforce spread across marketing and sales. still intends to hire more than 1000 extra staff this year. it has struggled since going public. goldman sachs says it has applied to take full control of its venture in china. the bank as authorities in permission to raise his stake from 33% to 51% and now it was the whole pie. goldman is on a five-year expansion drive. which includes boosting assets in wealth management. that is your bloomberg business flash. we saw the pricing action in india. evolved hereession ? the session has not started off very well. may be marginally -- we've come off quite rapidly today but the

key thing to notice, it's a busy week. lots on the global front with the boe decision and the fed. india will come off quite rapidly in the last two sessions. we look at what happened last year same time around, when the budget was there. india volatility cracked 15%. at the time, people would expect the vix to move up. this is moving in a contrarian fashion. pretty interesting. back to you. >> thank you very much for that. up trading vines on a stock market, you would think it would be the world's biggest initial public offering. arabia.t so with saudi let's get the story on this. the region's markets and equity

specialist. so, run me through then what exactly crystallized in the data you have been looking at? >> it's quite interesting to see e volume of trading in saudi, because there has not been a city begin pick up in evenng activity in saudi, though we had those events you just mentioned. . if you look at the chart you see on the screen. we see two peaks being those days when mcsi added saudi stocks and, of course, aramco at the end of the year. but we have that line at the bottom showing the average for the past five years. saudi stocks are still trading below that level. i was taking a look at those wallacewith paul yesterday and we could see that saudi is still 16 the low trading volume in terms of actual trade when compared to those past five years.

what should bring investors back to this market? it's very hard to say. we had a guest on the show yesterday saying there is still this skepticism towards the saudi economy. there are not a lot of triggers to actually bring new money to this market. the ipo was a major deal. a lot of people buy those shares. will it be enough to bring activity back? >> talking about aramco, we had ing,put out their rat arguably not overly exciting or disappointing. it's pretty much where it is. >> another neutral recommendation, piling up those neutral calls. from big houses now. ubs is giving aramco a price target of 34 reals, that's slightly below the price of the share write now. -- right now.

basically the lowest level the stock has traded since the ipo last month. basically, they are saying that there are, of course aramco is a unique stock it has a lot of advantages when it comes to industry peers, but at the same time, a lot of those advantages are already priced in. they do not see a major upside. >> thank you very much. giving you a snapshot of what is coming up. we will talk about the coronavirus taking its toll on companies with exposure to china. ceo kevin johnson -- tell us how they are grappling with the outbreak. this is bloomberg. ♪

yousef: starbucks is feeling the impact of the coronavirus. shares fell 2% after the company says they are closing outlets in china will materially affects results. ceo kevin johnson tells us how they are dealing with the coronavirus.

>> the coronavirus is something everyone is having to navigate. it is a dynamic situation. it certainly is one that we have been focused on a couple of priorities. first is to focus on the health and well-being of our starbucks partners. and second, then our relationship with local health officials and the government to help support them as they contain the virus. now, if you think about it, to chinese new year's, we typically have a number of our stores closed anyway. these are stores oftentimes in office buildings where for chinese new year there is nobody working. those stores have been closed. but then if you look at the hubai province the city of wuhan, the entire provinces under restrictions all the stores are closed. we work, on occasion landlords and governments may ask us to close certain stores near hospitals or universities or tourist locations. we're being thoughtful about how

we do that. we have closed more than half of our stores and it is day-to-day. we work very closely to ensure we are making thoughtful decisions. and for the stores that are open, we are ensuring the safety of our partners and customers. we have masks and sanitizers but our starbucks delivers in china, another vehicle for the stores that are open to able to service customers. now, really this is a temporary issue and we are going to get through it. we're going to focus on this and a way that is true to our mission and values. and we'll navigate pass this and issue as weemporary think about the long-term growth opportunity in china, we remain optimistic. >> you are managing this very closely. where are we today, and are you getting information from the government that you need to make informed decisions? kevin: yeah. we've been in china now over 20 years. so, certainly we have very

strong relationships with central government, with provincial government, and with local governments that we operate in. responsibleto be partner to them as they work hard to contain this virus. and so, we get regular updates and communications. and our team in china led by belinda wong, they are doing a fantastic job. we are in constant communication. it's very dynamic. day-to-day we are making decisions. certainly the chinese new year was extended until february 2. there is another milestone. the government is encouraging people to work from home that first week. then around february 10 we expect people to be more in office buildings. we're just going to continued to do what we believe is right for starbucks and support of our partners in that market. and it's day-to-day. yousef: meanwhile novartis is forecasting rising annual sales and profits as the drugmaker

sharpens its focus on innovative medicine. theceo told bloomberg coronavirus is not expected to disrupt their medical supplies. st opportunity will be testing existing antiviral drugs and many firms are providing them to the chinese orernment to test whether not these drugs would work to contain such a virus. and then, over the next six months to a year, i expect vaccine candidates to be developed and then ultimately put into testing and be broadly available. >> within a year we could see a vaccine for this? >> that is the written -- in the range of what you can expect. it could take longer. it depends on the underlying biology. >> i know you said there is no impact on your supply chain. many people worry about pharma. what have been your conversations the past week with your employees and your distribution centers in china? what preeminent measures -- preventative measures are you taking? >> our number one concern is our

associates in china and we are live of what the government has advised, keeping her office is closed, asking our associates not to travel and not to engage at the moment with all of their various stakeholders in order to protect themselves from this current situation. in terms of our supply chain, what we see right now is very stable situation. we have stocks for all of our key medicines. most of our key suppliers are far away from the center of this particular outbreak. so we feel very good. the key is to closely monitor the situation. it is very fast evolving. >> i want you to put your white coat on. you are a medical doctor. the world health organization decided not to declare this a health emergency. do you think think that is going to change? >> again, it is very hard to predict. when you look of the cases right now, they are predominately in china. you do not see a sustained spread outside of china in other geographies. lookingwhat the who is

at, is this contained to a single geography within china or is this really a situation where we see sustained person-to-person spread outside of china? and i think the data is what is going to drive the decision. >> just finally on this, the vaccine -- they pop up. how does the pharma industry make this lucrative? >> this is a long story that goes back decades, even back in 1997 with the h5-n1, sars, h-1n1, mers, these viruses keep popping up. the challenge is when we pop up we have a big response and you see firms trying to develop new technologies. then when the viruses start to go down and the cases go down, interest. loses the challenge is how do you maintain that capacity and innovation power in between the outbreaks? we still have not solved that as a society. yousef: let's get back to the market action.

asian stocks at a seven-week low. led by the index in taiwan, down ng evidence isowi coming through that this is disrupting china's. economy plenty more ahead. this is bloomberg. ♪ everyone uses their phone differently.

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>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates or its employees. >> the following is a paid presentation brought to you by rare collectibles tv. ♪ host: in a letter dated back to september 27, 1904, to the secretary of treasury, president theodore roosevelt wrote a short two-sentence letter, in typical theodore roosevelt bravado style. "my dear secretary shaw, i think our coinage is artistically of atrocious hideousness.