start with 5g. the i think the big names are poised daily limit of the yuan weakens stillwell, but we will at a key level over the dollar. thephilippines reports figure out the full weight to support the speed of the 5g growth. sylvia jablonski of first fatality outside china of the wuhan virus. in the iowa democratic party direxion, thank you for joining gathers to choose its preference for u.s. presidential nominee, us. make sure to join us from the iowa caucus. the first major contest of the 2020 primary election season. coming up, we speak to the welcome to "bloomberg daybreak" chairman and founder of one of the biggest private equity firm in europe, guy hands of terra this monday morning, february 3. firma. if you have a bloomberg i'm romaine bostick, alongside sonali vasek. terminal, check out tv . alix steel -- alongside sonali you can watch us online, check basak. out our charts and graphics, interact with us directly. go to tv under terminal. alix is on assignment. sonali: interesting day, with click around and see what we've been talking about. romaine: is that our debate about shakira and j. lo? china down as much as it is. [laughter] romaine: investors have had to vincent: this is bloomberg -- sonali: this is bloomberg. sit by and watch the fallout of the coronavirus take shape. sonali: 90% of stocks down there ♪

limit. romaine: we saw them pretty much straight out of the gate. some of those losses did tempora er ale bit -- did temp little bit. sonali: u.s. futures still up, so at least the u.s. markets are shaking some of this off. romaine: we can csb futures up -- we can see s&p futures up about 0.5%. the end of the month basically erasing all the gains of the year on stocks. the 10 year yield was the big story of last week, really last month, hovering right now at about 1.54%. sonali: brent crude down. we have demand down in china quite a bit, so not surprising to see a drop in the price there. romaine: take a look at euro-dollar here, $1.1062. seeing a little bit of a decline today despite some relatively upbeat numbers only pmi level

out of italy and france, as well as spain. when you took a look at your vincent: -- romaine: now for the versus pound, a bit of a different story. you're seeing a bit more of a bounce there. time now for the global bloomberg first take. exchange, where we bring you joining us right now, vincent today's market moving news from around the world, from hong cignarella, voice of the bloomberg macro squawk, and kong, brussels, frankfurt, and des moines, iowa. sylvia jablonski, managing we are going to start with china. director of referee asset to coronavirus stole rising management and etf's of rafferty 362 -- he coronavirus death toll asset management and etf rising to 306 to two. joining us this stephen engle. strategist -- of rafferty asset what is the word on the ground? management and etf strategist. stephen: the numbers definitely the china thing is jumped over the weekend. 361, possibly-- really interesting. the market has been closed since the 23rd. there was probably some level of 362 deaths. liquidity crunch there. we saw shanghai indices down the number of cases sword to more than 17 -- of cases soared about 7%, 8%. this could be hopefully the bottom, and hopefully these are to more than 17,000. discounts. the united states reporting at

least 11 cases of the it remains to be seen what coronavirus. happens over the next few days. the numbers are not i think a lot of it is about to astronomical, but they are be priced in this week, and then rising still, showing that investors might look at there's still a lot of effort to be done to contain, as well as opportunities for buying on the ♪ cope with the virus, especially discount, names like tech, romaine: this is -- viviana: at the epicenter of wuhan and mcdonald's, all of these big companies affected by this. this is "bloomberg daybreak." hubei province. vincent: i think there will be this comes as hong kong today opportunities, but i'm not sure we are there yet. decided to close most of its border checkpoints with the mainland. ryanair posting its profit outlook for the season. 10 of the 13 border checkpoints will be closed to try and a medical journal did a study contain. into spec that 70,000 -- study it is a very sensitive issue ryanair says it does expect to here. and expect that 70,000 people in get its first boeing 737 max in of course, hong kong as part of china, and the economy relies a wuhan of been affected. september or october. lot on the trade across the i think we are seeing classic border. any cost savings won't be realized until next year. underreporting from china, and however, a number of medical that is why we see professionals here today started discontinuation of the numbers the former world comp ceo who went to prison died. getting bumped up every day in a back in the 1990's, he turned a five-day strike because they wanted the chief executive to geometrical progression. worldcom into the second largest close all of the borders. she would not do that, but they folks i talked to think it is are trying to limit the damage. going to take another two to long-distance provider. in china the coping and three weeks to play out, but he was sentenced to 25 years in prison. there will be opportunities. he was released in december for containment continues as the tony crescenzi from pimco said first of these field hospitals medical reasons after serving it best. more than 13 years. opens up in wuhan. bernie ebbers was 78. some businesses will be 1000 beds, run by the people's

devastated, and some will be delayed. credit suisse investor david liberation army. travel is going to be if you had plans within the next started taking patients as of haro says he's more than 100% ceond ceo t john thiem -- today. sonali: thank you so much. couple of months, you're china markets have reopened probably not going to change that up. after the lunar your closures tidjane thiame. and holiday extension from the other businesses, manufacturing, tech is a great opportunity. coronavirus outbreak. that is going to come back in a is deputy chairman at joining us now from hong kong is hurry, but there is still time to go. rishaad salamat, anchor of one of credit suisse's top sonali: i wanted to latch onto "bloomberg markets: asia." what sylvia was saying. investors. that is your bloomberg business how much far down can we go? flash. romaine: all right. what can we expect in terms of these declines? what other names can be exposed let's go now to the alternative are we expecting a significant here? continuation? seena: it remains to be investment conference in london. rishaad: well, we don't know. guy johnson is standing by right it was a situation where we had when is this contained in what is the truth about how this is now the chairman of one of the biggest pe firms in europe, guy catch-up. contained. what they are saying now is that hands of terra firma. some called it carnage. coronavirus versus sars, you guy? have 2% of people resulting in guy: thank you very much indeed. stocks on that market fatalities versus about 10%. as you say, we are joined now by found themselves in positive they are saying overall, it is a territory. lesser impact, which leads to guy hands from terra firma. nice to see you. 3257 equities headed in a thanks for spending time with us. this morning and the u.k., the southern direction, and most of reports that it will be contained a little bit sooner. political narrative dominated by them, 90%, were there limit so what else will be hit? the speech the prime minister has delivered on the future for

i think starbucks is a huge the u.k. in the post-brexit down, down by 10% or more. name. world. we've also seen a similar speech you have people staying inside. all of this is looked at by the delivered by michel barnier. government over the weekend. what is your assessment of how the pboc put in some moves to the economic landscape is going provide liquidity. i think it will be everything to change, and you see we are talking about open market from china retail, china opportunities in the u.k.? guy h: i think there are technology in the u.s., consumer peopleons that engender beginning to be opportunities in the u.k. discretionary types of names. do have some economic activity. the reality of brexit's there what's interesting to me about this is we've been waiting for are going to be winners and but this gives you an idea of the market to pull back. losers, which the government has the magnitude of all of this. part of it felt like it might be admitted. the demand side of the equation the chicago pmi number. the question is how big the is where the problem is. winners and losers will be. we did have some of the big as a result, we have a story at my concern is if europe decides and thenl names that they are going to have all the moment going around from orulation tied to the u.k. people familiar with the coronavirus on top of it, but situation that china may lower its growth projections for the it is not come to happen, so in we've been looking for a reason other words, they say we are not first quarter, if not behold to buy back in increased year. positions. just going to talk about fisheries, but also the service normally, growth projections come out in march. the bears have been expecting a industry. we may well see a decline. pullback, so anyway, it is a completelyld be because of this, bloomberg market that has been priced for economics suggesting we would perfection, and some of the disastrous because you look at see 4.5% growth in this leading sectors are pulling back the gdp part of the economy, particular quarter. and offering discounts. vincent: what about the service exported to europe, it this is really hurting at the commodity it -- romaine: what moment. would be devastating for the u.k.. mainland travel during the lunar new year was down 73%. about the commodities market? guy j: how is this affecting fall ofn macau a 78% we seen a loss in consumption in your thinking?

guy h: we are being very careful china. visitors from the mainland into the world's biggest gambling hub. brent could potentially drop when it comes to certain assets. that's where they make their below $50 a barrel. london would be the big loser. what do we make of some of the money, and it's the biggest time of the year, so it is going to moves we have seen? hurt. what can the government do about vincent: the interesting thing it? about commodities is the firms -- frankly, reflection with the s&p. we have to hear what they have to say about that. it certainly does seem as though we will talk about this a little in trader's take. further stimulus measures are in one of the things that has the offing. romaine: rishaad going to stay always been a reasonable on top of that. correlation is commodity prices it is local, and the big concern our thanks to him from hong to the s&p, and it stands to to us is whether the european kong. over to europe, your area reason as commodity prices do court is going to be willing to well, earnings do well, and you enforce english law. -- to europe,cou guy j: do you see it being able expect the global economy to be well. as commodity prices fall, you worthy u.k. finance have to wait to see a catch-up euroarea -- to europe, game. one of the great industry to work out, how easy positions potentially is with area manufacturing showing signs this divergence, the correlation would it be for business to go to move onto the has to come back at some point of recovery. what are we looking at today? if it is demand driven, not reporter: you could argue that supply driven. some perhaps in the next week or after the very bad numbers from the fourth quarter growth, today two, opec+ may be getting continent? how straightforward would that be in your mind? guy h: i think it would be very together to try and cut back we started the week on a positive note. production, lift that price higher. quick. that is not necessarily going to it is not going to happen in 12 pmi numbers for the months, but it could certainly be good for global economic happen within five years. growth because if you have a slowdown in demand for reasons manufacturing sector showed that we are closer to the point where it is a very easy thing for the europeans to do.

of the virus, and then you they say europeans want to contraction for the jacked the price up, actually could make the situation worse. borrow and things. manufacturing has been really sonali: what do we make of this they have to borrow under eu battered by different aspect law, not you kayla. news we have this morning about over the last few years. -- not u.k. law. they seem to be closer to ending china considering lowering their economic growth? the contraction. what impact does that have on guy j: if the regulatory pmiaw the manufacturing the larger global economy? sylvia: china is the second, divergence wasn't that great, actually showing the best values look like performance since april, so that third biggest contributor to the is good news. global economy, so i think it has a big impact. at this moment? we are seeing that the output is i think this is a difference guy h: there are opportunities stabilizing. between now and sars, that china there's a stabilization also in in the u.k. even if it didn't is a big contributor to the global economy. happen smoothly. orders, and stocks in factory it remains to be seen how long food prices will definitely go up. this goes on, but we are you could, depending on what the floors are also going down. forecasting gdp 6% plus. theof this suggests that u.k. does with the rest of the world, have a real without the phase one would reestablishment food simply bece market says there are dream shoots of the recovery, or some really drive the chinese markets forward, and i think that the sides of green shoots for the impact of this essentially slows manufacturing. won't get the cheaper food from europe. obviously, all of that would be positive news. down china growth, and it could however, there is a big fly in be sub 5%, a little scary. the ointment, which is obviously we lost the entire tomato business when we went to the the situation in china and with but it is probably not the 6% european union. the coronavirus. gdp number. all of a sudden, you've got a i always try to look at the chance to start growing them locally.

, this is the impact, optimistic side of things, and i however, that depends on the think we will probably see a trade deals the u.k. does with one of the key factors, and the rest of the world. first quarter on u.s. names, but companies in euro are already the risk is we end up doing trade deals with the rest of the world, which allows us to take flagging the impact that this perhaps buying opportunities. vincent: again, one thing we in goods which are very cheap situation in wuhan could have from the rest of the world. we can't export the goods which really need to be careful of, for the production because, for example, companies such as we have a huge hatted value on carmakers in france like peugeot 2003, social media wasn't such a into europe -- a huge added big deal. 2020, it is. or renault are producing in the value on into europe, and get a lot of this hysteria going the best of both worlds. , the 2% death rate with region, and the situation in most of the time, i am only china and how the coronavirus spreads could affect growth for investing in europe at the moment and not the u.k.. this virus, it is a virus. tips some extent -- not the u.k. manufacturing here in the region. sonali: thank you. now thatrn to the u.k. to some extent, i'm being defensive. 10,000 people died of the flu in guy j: does 2020 bring capital 2019. has officially left the eu. this is not at that level, and it most likely will not be that raising? focus now is what happens on very focused trade. level as you see china cracking u.k. prime minister boris down. johnson says he won't undermine it will expand further, but the eu. here's what he had to say. there will be opportunities. on doing deal by deal. pm johnson: i am going to lay just let it play out. we don't have to have a lot of romaine: you also have to worry capital into we do -- of capital one myth to rest. what they do to contain this, until we do a deal we like. we will not engage in some whether that has potential economic ramifications and if you've got a $10 billion fund whether it weighs on sentiment. cutthroat race to the bottom. we will have to keep in i am not to invest, you've got to get it to work. --you are just sitting there eu to not leaving the for sure. our thinks to vincent cignarella.

our thinks to sylvia jablonski. undermine european standards. we could have last year done you are staying with us. you can find all of the charts four deals, and in the end, we will not engage in any kind didn't do any of them. guy j: why not? we just used and more by running stunting, whether commercial gtv on your bloomberg we were talking off-camera about terminal. esg. browse all of the recent how much of that come of those features and even save the charts. deals you didn't do come over or environmental. down to esg concerns? sonali: joining us is that.then, look at guy h: half of them were. lovely shot over the city of new bloomberg's maria tadeo in brussels. they didn't fit into the we know boris johnson was light york. from new york, this is bloomberg. criteria that are investors ♪ would have been happy with on an esg basis. on the details, so what does he want in terms of a trade deal coming out of all of this? maria: his trade deal needs to frankly, i wouldn't have been happy having my name associated be done before the end of the with them either. they could have been very air. profitable. they just didn't fit into what otherwise, the eu will have to we think a private equity firm needs to do. trade with the u.k. on the video ,rom an economic point of view terms -- on wto terms. yes, maybe today you buy it at the prime minister said the u.k. seven times, but maybe it is will be fine and will prosper. five years because no one wants the market was moved by those to touch that particular type of comments. business. we saw the pound move lower. is quite a part of now we have seen a much more conciliatory boris johnson saying you have to trust me. your thinking in terms of the the eu and the u.k. can do very deals you're doing. good business. we don't want to undercut anyone have a meeting each

here, and we are going to be week where we float the deals we good neighbors. the problem if you listen to are looking at. that speech is there was zero largely isn't the detail. this is not what the europeans want at this stage because they make it clear the more you move deal we want to do economically, away from eu regulations and but a deal we feel has the right fit. standards, the more difficult it will be to get this trade deal that is really largely about esg. done, in particular in record i would say 50% of the deals time, because it's got to be that come through that process ready before the end of the get rejected on reputational year. reasons. today we are seeing the two guy j: just to circle back to sides setting out the tone, the deal by deal funding you are doing at the moment, if brexit but it is not clear. this is going to be a very bumpy -- if a deal with the eu were to negotiation. romaine: our thanks there to be resolved on amicable terms and the u.k. were to move forward, do you think the bloomberg's maria tadeo. attitude towards fundraising, let's turn to the u.s., and particularly iowa. you changing money, would change it is the first major contest of as well? the 2020 primary election how much is brexit to blame for season, the iowa caucus. your current strategy towards the latest polls show that fundraising? ay h: i don't see it as bernie sanders has taken a lead in iowa. joining us is david westin, host negative. of "balance of power," as well i think it is actually a positive because we can focus on individual deals. if you are doing a fund, you as "wall street week." have to run a portfolio, and it

tell me about elizabeth warren, is a different process. who seems to be slipping in the latest polls. i think i'm and better david: that's exactly right. investor than a fund manager. the polls have really shown four i put up at least 10% of every deal, and some as much as 50%. candidates clustered at the top, so it is hard to know, but my personal focus is really what indications are bernie sanders may have the momentum. is the return on that going to be. elizabeth warren may be slipping in momentum. i'm actually quite pleased to bidenis suggestion that not be doing fund management at this point. may be slipping, so people will be watching that tonight very closely. sometimes, necessity is the we have different locations mother of invention. where people will be talking to i think where we've got two is a one another about the candidates, not just voting. ♪ good place. after an initial vote, if your viviana: you're watching what i think it will make a big candidate doesn't get 15%, you have to make another vote. "bloomberg daybreak." difference on is the fact that we are stuck between deals in we begin with a takeover that voters will make actual the u.k. again. will create the world's decisions about candidates. fourth-largest largest payment services provider. world line agreeing to buy it is not so many of the another french company. delegates going to the convention, but it is the first $8.6ffer values them at such institutions look at the one. then we move on to new hampshire u.k. and say, there's too much risk. even if it goes wrong 20% of the eight days from now and find out what happens with the two billion. in the past year, company shares time come on an individual deal, have more than doubled. experienced real 20% is too much to take. guy j: i'm interested to get candidates from adjacent states, elizabeth warren and bernie sanders. estate executives can turn your view on what is happening around struggling startup. with the global economy. coronavirus is a feature of the in between, we have the state of the union address, and we vote

ceo, formerly new landscape we are all trying to on whether we should evict the understand. the chief executive of far outside china president from the white house. sonali: thank you so much for brookville property partners joining us from iowa. group. has not reacted that violently, wework is controlled by softbank but house your perspective on be sure to stay with bloomberg for complete coverage of the iowa caucus. , committing billions to wework how an event like this could we will bring you special change the narrative for the any rescue plan. coverage starting at 10:00 p.m. job cuts on the way a julius baer. macro economic outlook for the eastern, live from des moines. global economy, which at the the swiss private bank will another story we have been moment looks fairly mixed? talking about this morning, it eliminate 300 positions. the risk, which is what its goal is a leaner business was a thriller last night at the super bowl. with better profit margins after the kansas city chiefs came from missing its goal for last year. julius baer dropped its target behind to beat the san francisco the chinese evident divide, is 49ers 31-20. for net new money. that it could mutate. 21-10 midwayailed that is your bloomberg business , 1919 toke spanish flu flash sonali: thank you -- through the third quarter. business flash. sonali: thank you, viviana. 1929, they talk about 50 million chief quarterback patrick romaine: a leaner business. people dying. mahomes was the game mvp. that is one estimate. where have we heard that before? that could mean another $7 sonali: does the market have the this isn't going to have -- this million a year in endorsement revenue. coming up, we have more on your capacity to pick up these job is going to have an effect that cuts? where these people go? smaller thanmally romaine: we seen with other morning trade and analysis on the markets in today's first take. that, but could mutate into this is bloomberg. ♪ banks, the get rid of a certain something, which would be very segment of jobs and then hire a different. bunch of tech guys who they yes, plagues and pestilence are think might be the future. sonali: julius baer might seem a risk come about the moment, specific, but i do want to isaac this is not going to have

remind people that wealth a big effect -- i think this is management was a growth area on not going to have a big effect. guy j: we will see. wall street. for them to be cutting here, what does this mean for the guy hands, thank you very much. other wealth managers? romaine: thanks, guy. romaine: there's a lot of that is bloomberg's guy johnson speaking with terra firma competition out there, so maybe this is what they need to do to stay competitive. coming up on this program, iowa founder guy hands. voters are heading to the polls, kicking off the primary election season. coming up next, the trader's take. we will have more for what it if you are jumping into your means for markets, as well as car, tune into bloomberg radio the hedging. all of that and more coming up heard across the u.s. on sirius next. xm, channel 119, and on the from new york, this is bloomberg. ♪ bloomberg business app. -- can see tom ferrer there you can see jon ferro there. this is bloomberg. ♪

♪ romaine:romaine: time now for our trader's take, the most family-friendly segment on this program. joining us is vincent cignarella, voice of the bloomberg audio sqawk. you can listen to vincent on the bloomberg by typing squa . what's going on?

vincent: totally family-friendly if i'm right, but if you are not making money, it is not family friendly. this is an interesting correlation. we spoke about this earlier. where earnings go, where stocks go, commodity prices tend to follow. it is not a far-fetched conclusion. as global growth does well, commodities tend to go up, as well as earnings and stock market. we see a big break now in this correlation between crude futures on the s&p. the reality of the situation is this will re-sync as the world comes back together. when things are dysfunctional, this breaks. whether it be because of the romaine: this is "bloomberg daybreak." situation with opec and supply or demand, at this point a i'm romaine bostick, in today demand issue, the s&p has come for alix steel, whose out on assignment. down a couple of percent. we have seen an 18%, 19% drop in in the market on the u.s. side, we are seeing a bit of a bounce crude futures. coming off of a pretty somber the play of the virus is to play end to the month of january for the correlations to come back u.s. stocks, which pretty much again. that's the safest way to do it. romaine: coming up here on this erased all of their gains for

the year. s&p futures and dow futures both program, jim paulsen of the in the green today, looking to leuthold group, chief investment strategist. extend those gains as we head towards the open. he's going to join us. from new york, this is stoxx 600 in europe pretty much bloomberg. ♪ flat. concerns in china have been contained to china. if we flip up the board, we can see a little bit more of a breakdown of what has been transpiring here. take a look at the yuan. .e did break past a key level pretty calm in the treasury markets. we had a significant amount of buying last week. 1.54 percent is now your 10 year yield. we will see that a little later. crude oil a big story heading into this week. a lot of call for a drop in demand because of the concerns about the coronavirus and the potential economic fallout. nymex crude right now, $51.66.

lme copperopper -- holding a little below that 6000 level. we will wait and see how the coronavirus is contained and what the impact is on economic growth. sonali: now let's get an update on headlines outside the business world. vienna hurtado is here with first word news. viviana: we begin with the coronavirus. the outbreak has china rethinking growth plans. beijing is valuating whether the target for growth should be lowered. of theber of cases disease in china have now soared past 17,000. or than 360 people have died. outside of china, the philippines reporting the first death. republicans on capitol hill preparing to acquit president trump. senator lamar alexander ukrainet

said voters must decide the president'sa new polls has berns will win tonight's iowa caucuses, the first real test fo emerson college poll has sanders at 28%, joe biden at 21%. pete buttigieg and elizabeth warren are in a virtual tie for third place. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. romaine: thanks, viviana. for more on 2020 and potential election risk, still with us is sylvia jablonski. the iowa caucus is today. it looks like bernie sanders may come away for the erie, at least in iowa. what that bodes for the broader election process, we will have to see. do you think the voter is concerned about what the outcome of that might be? sylvia: i think a lot of the

market risk is priced in for the next election. when you have a strong market, you tend to have a lot of support for the current office. issues withrtainly this particular president, but i think that a strong market, full expansion, growing gdp, a lot of ♪ it might feel priced in. romaine: but you have a president right now that, despite some of the concerns about his behavior, is widely sonali: welcome to "bloomberg viewed as relatively positive for markets, at least with daybreak" on this monday, regards to asset prices, with february 3. regards to deregulation, and you withonali basak, in have democratic candidates, at least two of the big frontrunners, borah and sanders, romaine bostick. proposing relatively massive alix steel is on assignment. he wants to talk about the super changes to the u.s. economy that bowl. i want to talk about politics. something could be a negative in the short term. romaine: that is the big news of sylvia: as far as corporate the day. sonali: i will go with it. america and the stock market i was watching shakira, but we goes, i think if we had a shifting candidacy and we had a will go with the baby peanut. romaine: i hear there isromaine: new office, it would impact something going on in iowa. sonali: we are very excited corporations, so the new tax about the caucuses.

warren loses her plans would probably go away. the regulation would probably tighten. it is the classic republican moment them here, this is one of versus democrat policies that get imposed. the biggest upsets we could see in the democrat party. if we had to switch, we would see an impact to some of the romaine: here are some of the top stories you need to know at sectors that have been leading this hour. --the world is digital sleep markets. sonali: we have the iowa caucuses tonight. what are we looking for? is dangerously underprepared for sylvia: i think we are looking a global pandemic. for too long, the world has to see what the sentiment is operated on a cycle of panic and neglect. romaine: the death toll from the among democrats, particularly in iowa, whether it is leaning corunna vices -- from the towards a more progressive candidate or more of the coronavirus rises. >> china may actually lower its mainstream candidate like joe biden that could be slightly more in line with markets, and growth projections for the first quarter, if not for the whole year. the sort of less tax impositions this is really hurting. mainline travel at the biggest on corporations and the wealthy. i think what comes out will be time of the year was down 17%. romaine: fears lead to a the sentiment from the democratic party. sonali: you said something widespread selloff for the earlier about how the markets mainland. were priced to perfection and markets reopen after more than a people were looking for any sign week. of trouble. so what can go wrong between now pm johnson: we will not engage and november? sylvia: a lot could go wrong, in some cut race to the bottom. and it might have nothing to do

with the election or everything -- some cutthroat race to the to do with the election. bottom. we are not leaving the eu to number one.olitics undermine european standards. romaine: british prime minister last year, what was a tariff war with china, and then what was boris johnson may threaten to almost a real war with iran. walk away from trade we will have to see how geopolitics plays a role in this negotiations with the european union. >> trade needs to be done by the end of the year. year's market, but if we have otherwise, they will have to stability, if we got a phase two trade deal, what is going on trade on wto terms. this is really the pressure, but with the coronavirus now, and my over the weekend, we had the prime minister say if there is mind, it is also something to think about. does this give u no deal, that is fine. romaine: the pound wiping out last week's advance. impetus for phase two? sen. sanders: you are part of an because the chinese economy unprecedented, unique movement. really needs that. romaine: iowa democrats head to if we get positive results on that, the market might keep the polls. going up. romaine: we had the head of the 1861 different locations. cboe here a couple of weeks it outcome a and he talked about how -- a couple of weeks ago, and he talked about how he hadn't seen these levels on the o ke second choice. vix since 2016. it is the first time we will we had a lot of activity in the , particularlyace have actual votersonabout candi. romaine: bernie sanders sees a

surge in polling while elizabeth when elizabeth warren was doing warren slides. well for some time. that has come down a little bit, the kansas city chiefs came from but do you start to look at health care as being sort of the behind to win their's first super bowl in 50 years, 31-20. wildcard as far as what the market is expecting? i would consider that a let's take a quick look at what potential hedge. is happening in the markets. s&p futures are moving a little some people are looking for gold, utilities, treasuries that but higher, coming off of what was a pretty somber end to the think those type of asset month of january and last week classes, but health care is a light cycle -- is a late cycle as concerns of the coronavirus whipped through markets. performer. the issue with health care's things pretty much quiet in the .reasury market cost. it is too extensive for people to consume health care. on the flipside, it is an investment opportunity because we have 72 million aging baby boomers. we are the biggest consumer of health care in the world. there's massive m&a activity. there's a list of approvals and abovecrude holding right preapprovals like never before among the biggest biotech $56. euro-dollar, interesting move companies. here. i think they are poised to grow, $1.1065, moving slightly lower

regardless of if costs come despite encouraging signs with down. we are still going to continue that pmi data. to consume. let's turn now to what is the demand is there. happening with china. that gives you an opportunity to the china stock market reopened after the extended lunar new year holiday. look at pharmaceuticals, biotech we saw a pretty big wave of and health care. sonali: what does technology selling, some of the biggest we play into the story here? have seen in years. the one sliding 1 -- then valuations are still writing higher. at what point does that stop, and given how much they are on sliding 1%. joining us from hong kong is the s&p, how much are we rishaad salamat. give us a sense of what is depending on the? happening. rishaad: the worst drop in 41 -- how much are we dependent on them? months for chinese equities. sylvia: what is happening in we are talking about six dots on china, i think those names are the csi 300. stocks, majority, 3257 going to pull back in the short term. given that we had two of these , i the $1 trillion club of 4000.wn, out think that they are on sale 90% of those, limit down. right now. isple are fearful of what there's no reason to think that just given the earnings and the likely to happen. results that they came out with we have chinese officials

the mothers no reason to think telling us privately that we that they don't have room to could be seeing a revision down grow for the next couple of months. romaine: we just had your calls in growth. on the screen. everything is on the taebaek the one of them was on ai. moment. a lot of folks looking to see what the next big thing is going to be in tech. what do you find attractive in -- everything is on the table at there, and what type of the moment. this is also echoed by some of investments would you recommend? sylvia: artificial intelligence the research done by economists that say it could be worse than sars, when 2% was shaved off the is a big thing, and it touches every sector. chinese economy. how it could affect driverless cars, advancements in the medical field, growth in the rest of the world. forman sachs is projecting gaming, growth with robots in percent of growth being shaved factory centers which help -- is projecting 0.4% of growth contribute to gdp in countries being shaved. when sars hit china, the chinese that have an aging population, and help to grow in countries like china that have a massive economy contributed about 3% to 4% of global gdp. thinkmiddle-class, so i now we are talking about 17%. what can they do about it is the ai is the millennial trade of next question over the weekend. the future. it is the tech for the next decade. romaine: using the benefits of the pboc coming out with two that or the opportunities there, types of reversal repurchase, are these going to be in new

companies or the big cap tech companies that are going to looking at 10 basis points on dominate this, like alphabet or amazon? .he seven day ad 14 day repos sylvia: i think it is both. in, and it will but this is perhaps just tinkering at the margins. look at the oil consumption story we had an exclusive on earlier. what we had was 20% consumption falling out. that tells you it is about demand. how do you address the demand side of things? monetary policy may take some time to channel through. it is going to hurt the economy, and not just china, but it could have repercussions globally speaking, too. sonali: you started to get to the point that china was already taking some corrective actions. what can we expect in terms of more corrective actions from china in order to stabilize the situation here? rishaad: weare -- are talking different things. banks didn't have to set

aside quite as much and deposit insurance. that is something they. . could do. in hong kong, they could unveil some stimulus measures. the trade war, the street protests, and now the third whammy which is this. at the moment, this part of the world is getting more and more intertwined. in effect, a lot of countries around here, and that is what people are addressing. china itself could perhaps challenge its 3% deficit rule here as well. they could spend more. can they spend their way out of trouble? this is the big question. and where would the money go, and what it actually have the necessary impact? sonali: thank you so much for joining us. joining us now for more from minneapolis is jim paulsen, leuthold group chief investment strategist. think you for joining us. chinae the issues herein

affecting the way that you see the u.s. markets right now? jim: well, i am no pandemic expert. be verythis could serious. who knows for sure? i do think that the way these things normally run is they do not last for years typically. this is creating a major downward stock for china and asia in general, a sub shock at this point for the whole world, but maybe it is just going to be a one quarter event. the market can look through that . perhaps looking beyond that, once people come out of their cocoon if this thing does start to ease at some point, spending might catch up quite quickly and

the balance of the year. -- as opposed to going into this in a weak position. romaine: maybe you could talk some more about some of that strength we actually got some pmi data out of europe this morning that seems to suggest there's a little bit of a rebound in italy, spain, france, and elsewhere. do you think it is going to be resilient enough to overcome concerns about the coronavirus? jim: i kind of do. i lean more that way.

we have a lot of stimulus in the pipe that has been showing positive results, no we are going to get more with this resolved. growthink that economic with earnings is pretty good. i think this is going to be more like a one quarter shock to economic growth, particularly in that,but probably beyond if it gets better again and goes back to some of the fundament of trends that have been improving. is really looking good. the zoo survey there is way up, and that has been a good leading indicator. even in china, we had improvement in the manufacturing pmi's there, above the $50 area. certainly this is going to take a hit. it could get worse. as i say, i'm not an expert there. i also think if you look at some

of the past episodes, this is probably a temporary phenomenon, and the fundamentals will come back into play later this year. sonali: futures are up slightly, and as you say, we've had pretty good earnings data so far. when you look at the market right now, what is your big worry here? what can really upset this uptick we are having in the s&p right now? certainly the biggest worry is the coronavirus. if it persists much longer than they have in the past, that could certainly be bad and would escalate fears even further. , wei think that more likely had the market that was extended . it was getting a little out over its skis. this has got checked that sentiment, no doubt about it. pe in thek at forward

u.s., that has come down about one full point. it is trading no different than it was in the summer of 2016. we are going to bring more policy support. i would look at this as adding to take advantage of the fear that is currently here. romaine: let's go back a week when we got those gdp numbers out of the u.s. there was a lot of concern about the slowdown in business investment. i'm wondering what your take is on this in regards to the type of spending we have been seeing or not seeing. jim: there's great concern about his business confidence i think that has been overblown a little bit. what i've looked at in the investment equation, i've divided two parts, new era investment and old era.

there's just a complete divergence between those two trends. old era, manufacturing, industrial equipment, transportation equipment has definitely rolled over and hasn't grown much in this entire recovery. expanding quite markedly since 2016. it just went up in the latest gdp report. that explain the lot. it explains why productivity picked up here in recent quarters. over the last couple of years, would supposedly we've had no investment, i think it is because of new era spending strong. it also explains why technology stocks continue to outperform because spending in that area continues to remain strong. i'm less worried that investment is shutting down. i thing it is more just a watershed shift from old-style investing to new style investing that is happening. romaine: jim, you are going to stick with us here.

coming up, we are going to talk more about earnings halfway through the u.s. earnings season. alphabet is the next big report, coming up after the bell. we will take a look at those earnings, coming up next. this is bloomberg. ♪

♪ sonali: about half the companies on the s&p are already out with earnings. google is the next big name to watch. throughout the week, we will have disney, gm, ford, twitter, uber. leuthold group's jim paulsen is still with us. what are your expectations on what they can bring to the table and what that means as we close out the faang's? don't follow

individual companies real closely in the reports, but you look at this group, and certainly for overall so far, they've been posting up pretty impressive results. i guess i've been most drawn by the faang sales growth that's been going on. topline growth continues to be really strong. there's every indication that google alphabet is going to continue to come through with some pretty decent numbers again. as i say, i think these companies, i realize the values are high. sometimes you've got to hold your nose if you're in them. certainly, the growth in the economy is becoming more and more driven by these areas. they are just hitting this sweet spot where more and more activity is coming, and there's little sign that that is easing up. i expect fairly good results. romaine: when you talk about

holding your nose with regards to valuations, a lot of people look at even the out performers here and say you are still taking a pretty big gamble on future growth, presuming that the economy stays healthy and these companies stay healthy. is there any point when you look at the broader market valuations and say to yourself, enough is enough? jim: well, there's no doubt that valuations are high. ofare also in the 11th year recovery, so we are later in this cycle, but we also have some really odd things happening this late in the cycle. record low yields across the globe, including in the united states, massive policy support, bond yields low, a fed that has cut the rates, quantitative easing, fiscal stimulus. that just doesn't happen when you are at full employment like we are. we've got a pickup in labor force participation rate this

late in the cycle. we've got a rise in productivity the last couple of years. we've got a surge in household formation. we've got extraordinarily strong consumer balance sheets that shouldn't be this strong late in the cycle. we've got the opportunity to recover the manufacturing sector after recessing for the last couple of years. i'm giving it a little longer. i would like to see some pressure on the stock market. that would be like higher rates or reduction in monetary growth, tighter fiscal policy. maybe some inflation pressure before i'm going to get real negative. i do think you stay with overweights in technology and still this cycle ends -- technology until this cycle ends, but i would move away from the popular faang names and look at some small cap tech names doing just as well, but aren't nearly as popular. sonali: interesting. we had really good numbers come out for the faang's.

another big name reporting this week is gm. how do you feel about the auto sector overall? jim: well, the more cyclical names are going to have tough a reporting season just because we know there's been a manufacturing recession going on. we are just sort of exiting out of that, so they are going to have more disappointments, more sour outlooks after what they experienced last year. i think at the margin, they probably saw some improvement in the fourth quarter with general numbers improving here. i think you're going to see comments from gm and companies like them that are picking up that the world economy is maybe looking a little better looking into 2020. i think we will have a earnings numbers that still aren't that great, but may be outlook is improving. romaine: what about the consumer side of the equation? at,ever sector you look it still comes down to consumer

spending. jim: that has been very good. the consumer with 3.5% unemployment, ongoing job creation, extraordinarily low mortgage rates. you can see they are getting more aggressive in housing activity. confidence levels of consumer comfort, the bloomberg index is almost at record highs. they are not being ravaged by inflation or interest rates or tight money. i think it is an amazingly good story. the problem a little bit is moremer stocks are early cycle. i'm not a big advocate of the more defensive consumer staples. i would be more of an advocate of some of the consumer discretionary areas that have had a nice pullback since the middle of last year on those two areas. romaine: jim, you are going to stick with us. we are going to have much more coming up on the program. from new york, this is

bloomberg. ♪

viviana: this is "bloomberg daybreak." we begin with a takeover that will create the world's fourth-largest payment services provider. world line agreeing to buy another french company that values the company at $8.6 billion. in the past year, the company's shares have almost doubled. julius baer will eliminate 300 positions. it's gold is a leaner business with better profit margins. goal missing its profit last year, julius baer dropping its target for net new money. whether bank will continue with its buybacks. jp morgan spending most of its profits on buybacks, almost $60 billion. last month, the bank said if the stock keeps rising, it would

consider hermitage to buybacks. sonali: thank you. -- would consider alternatives to buybacks. sonali: thank you. it is a timely question by "the wall street journal." on earnings day, tom keene brought it up to me. what is jamie dimon going to do buying this stock this high? romaine: we've seen the buyback frenzy die back a little bit, and that seems to be linked to valuations. you have a company now that's current pe is around 13, slightly above the industry, so it is not wildly overvalued. but you figure dimon has to be sitting down with the finance people and saying, what is really responsible at this point? sonali: if it is a high-class problem, guess what? if it starts to feed over to other banks, we have goldman sachs with their new plans in place. is there enough net capital for them to buy back shares? romaine: they've given back a

lot to investors, so they could go back to the dividend or put more weight on the others of the equation if buying back shares becomes a little too much. sonali: my favorite day of the year, the bank stress tests. [laughter] romaine: learning so much here. coming, iowa voters head to the polls, kicking off the primary season. we will have more on what those results mean for markets and the hedge and for 2020 election risk. you see joe biden there, amy klobuchar, the whole gang. from new york, this is bloomberg. ♪

romaine: welcome to "bloomberg daybreak." i am romaine bostick in for alix steel. let's get a check on where the market stand. s&p futures starting to pick up a little bit of steam. they were up .4%. closer to as we get the start of u.s. cash trading. dow jones futures also higher, up .6%. you see what is going on in europe. the stoxx 600 was flat for most of the day. they are moving deeper into the brain, up .2%. all of this on the backdrop of what happened in china.

8%.csi 300 falling your 10 year yield still holding at 1.55. not a lot of activity in the treasury market. a lot of those bids ease from what we saw at the end of last week. holding at yuan seven. crude, which was down more, paring some of those losses. copper, up .7%. we came off a string of bad days. nine or 10 down days at the end of the month. a lot of concerns being reflected about global growth in those base metals. let's turn to a big story going on in the u.s.. that is the presidential election and the selection of a democratic candidate. the iowa caucus kicks off today. this would be the first major state to make its choice for who

it wants to see as the presidential nominee for the democratic party. we want to bring in david westin , the host of balance of power and the host of "wall street week." he is in des moines, iowa. give us an update. david: a lot of excitement in iowa. i winds take this very seriously. there the first ones to have voters make some choices. that will heap in -- that will happen later this afternoon as democratic voters express their preference for president. it is not like voting in a primary. they going talk with one another and persuade one another. any candidate does that -- any candidate that does not get 15% of the vote is out and that candidate supporters have to pick another candidate. i wins take this very seriously. sonali: what we walk away with tomorrow? we see bernie in the lead. what is the big take away we are

looking for? david: it is all about momentum and the perception of who is on top and who is not on top. there are relatively few delegates chosen by iowa, it is about 1% of the total delegates, but this is the first time out, and there is something of a bifurcation, there are four candidates aiming for the top with amy klobuchar little bit behind. they are divided into moderates and progressives. bernie sanders and elizabeth warren being the progressives. joe biden and pete buttigieg being the moderates. part of the question is what does the democratic party want? do they want to big change? were they want to stay the middle and have a better chance of beating donald trump? romaine: we know iowa has been a decider of who ends up getting the nomination in the past. jimmy carter one of the more famous examples. to these caucuses still hold

that type of power it used to? david: is a great question, and i think we will find out the answer over the next few weeks and months. traditionally, iowa has been important for democratic candidates for president. if you go through history, you have to go back to 1992 to find someone who got the nomination that did not when i wept. this time is different because you have at least four candidates who are viable. they all have money. we do not know whether this time it is different. historically, iowa, particular for the democrats, has been important if you want to get the nomination. what may be just as important is who takes forth. if you have joe biden elizabeth warren come and forth, it will take -- it will raise real questions for their campaign going forward. romaine: those caucuses kick off at 7:00 iowa time, 8:00 new york time. you can tune into our coverage

on bloomberg television at 10:00 new york time, where we will have the results from the iowa caucus with david westin and the rest of our political team. havei: meanwhile we democratic presidential candidate tom steyer who thinks low unemployment is not a signal of a strong economy and says wages are too low to support most americans. he spoke to david westin and here's what he had to say. >> that is why want to be the nominee. what you are saying is not true. is it a strong economy if it is growing but all of the income goes to the richest americans? david: real american -- real wages are going up. tom: you are saying we have loan employment. people cannot afford to live on the wages this economy producers. -- this economy produces. if you look at what is going on, this president gave the biggest tax cut in history to the richest americans in the biggest corporation.

we have a regressive tax structure. rich people pay a lower percentage of their income in taxes than working people. that is unjust. the biggest corporations have an average tax rate of 11%. that is a crazy low number. the fact of the matter is this is a president who is running an economy for the people at mar-a-lago, and the working americans are getting left behind. he said in his second term he will balance the budget that he blew up with his tax cut for rich people by going after entitlements, namely health care spending. this is a guy who has been terrible for working americans. romaine: let's take -- david: let's take all of that at face value. the democrats have a communication problem. if you look at pulling on the economy, democrats give trump credit for the economy. that is why want to be the candidate. whoever is going to win -- mr.

trump is running on the economy. he says that every single day. two nights ago he was in des moines and he said if i do not win your farms will go to hell. not any logic or reason behind that. he has been a terrible president for farmers. terrible with his trade war and his waivers for oil refiners. a terrible president for iowa farmers. westin that was david with democratic presidential candidate tom steyer. still with us is jim polson. jim, how are you factoring in the market risk when it comes to the u.s. presidential election? is this a factor in how you are taking a look at markets? jim: for the most part, there will be headline risks that will create volatility as the polls go up and down across the candidates, markets will react. i do not know if that will be lasting. what is most concerning to me and i think most investors is

less about who gets the presidency than if one party or the other gets try power, both , that and the white house will change and stuff will happen. things will get past. in some sense, i like the division of power and some group lock -- and some gridlock because that means the free market economy manages the director of where the country goes more sore the -- more so than washington. if one be most concerned party seems like they're going to win all three houses. that would be something i would pay more attention to. outside of that, i am less concerned about who gets the presidency if there is a division of power. romaine: when we talk about the makeup of washington, that is a good point about the three

branches of government being controlled by one party. to think it is too early foreclose our china position ahead of what might happen in november? jim: i think so. i think we will get a lot of stuff coming down the pipe. until we get the two candidates we will go with, there will be a lot of volatility. these things can be volatile. we might have big surprises out of left field. i am from minnesota and i still wonder if amy klobuchar could make a bigger showing in iowa or maybe she joins up with joe biden or something like that. there are a lot of wild possibilities. i would not get too excited on a portfolio. i try to stay more focused on what is happening in the economy that i would about who is leading the polls. romaine: who did you have last night? the chiefs or the 49ers? jim: i am happy for andy reid and the chiefs but i am a disgruntled viking fan and i was

already mad at the 49ers for beating up on us so i was rooting for the kansas city chiefs. romaine: i am sure the vikings will get their day unless they come up against my chicago bears. jim paulsen, thank you very much. let's get an update on what is making headlines outside the business world. viviana hurtado is here. viviana: there is always next year for redemption and the 49ers. we continue with the coronavirus outbreak. it has china rethinking its growth plans. bloomberg has learned beijing is evaluating its target for growth should be lower. it is part of a broader review of how the government's plan will be affected by the virus. the number of cases of the disease in china has soared past 17,000. more than 350 people have died. outside of china, the philippines reporting the first death. later this week republicans on capitol hill are prepared to acquit resident donald trump. one of them is senator lamar alexander. he says the president did cross

a line when he withheld aid to ukraine, but says the voters must decide the president's fate. the vote to acquit is set for wednesday, the day after the state of the union. a new poll says bernie sanders will win tonight's iowa caucus. the emerson college poll has sanders at 20%, joe biden at 21%, pete buttigieg and elizabeth warren are in a tie for third. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am viviana hurtado. this is bloomberg. romaine? inaine: coming up, the slump natural gas prices and its impact on individual church spending. we will hear from the baker hughes ceo. for all of you who have bloomberg terminals, interact with all of the charts we use on the program using the function gtv . you can browse recent charts featured on bloomberg tv, and

keep all of the charts for future reference. from new york and worldwide, this is bloomberg. ♪

viviana: this is "bloomberg daybreak." i'm viviana hurtado with your bloomberg business flash. airegin with romaine posting a profit for its winter season lucrative last-minute bookings over the christmas and new year's holidays boosting europe's biggest budget airline. not expects it does to get its first boeing 737 max until september or october. any cost savings will not be realized until next year. the former worldcom ceo who went to prison died. in the 1990's, bernie evers

turned worldcom into the second-biggest long-distance provider but also presided over an $11 billion accounting fraud. he was sentenced to 25 years in prison. in december he was released for medical reasons after serving 13 years. he was 78. credit suisse investor david harris says he is 100% behind the ceo. there is a power struggle at the swiss bank between the ceo and the chairman. i am viviana hurtado. that is your bloomberg business flash. has put natural gas prices under pressure in the past year. it is leading to speculation that investment in new lng facilities will slow after hitting a high and 2019. alix steel spoke with the baker hughes ceo on the impact low prices have on capital spending. lorenzo: pricing is extremely

low at this stage. a long-terme, from perspective, these are large investments in these projects do not get impacted by short-term views on spot pricing. if the spot pricing continues to be low, what you're seeing is a movement more toward the brownfield project. longer-term, if you look at the forecast for the lng demand between 550 and six earned million tons, you need these projects to go through. these projects take a number of years through initiation to being executed. we feel good about the long term. alix: do you still feel we are not at key gas id and the second wave will get a hard time getting funding because of the low natural gas prices? lorenzo: spot pricing remains low. you will see a shift toward the brownfield. they are in a position where the foundation is already in place. alix: how does the shift affect

you guys? lorenzo: we are fortunate we are established within the brownfield as well as the greenfield. lng is a place where our turbines play well. we continue to support our customers. i think you have to separate greenfield, where you have the north america greenfield and also expansion projects happening internationally. you have mozambique, you have qatar, all of these will happen. it is a question of timing. let's say a range of 25 to 30 million tons per year would be the low end case for 2020. alix: is there a natural gas price that scares you? lorenzo: no. natural gas pricing will be low. the good thing is there is an abundance of gas. alix: this is how you have differentiated yourself from a schlumberger or halliburton. it feels like investors are not .iving you credit

what you do about that? lorenzo: our focus is we love our portfolio. as you correctly say, the breath of our portfolio, the fact that we are in lng and also offshore and onshore services and digital solutions gives us an array of capability that none of the competition has. we have to stay focused on what we do best. that is execute the control. the markets will recognize and give us credit over time. what about selling a commoditized product lines? lorenzo: we continue to look at our portfolio. we had a call with earnings. we will continue to look at our portfolio. we are focused on returns and will make the right decision where returns are highest. alix: do you feel that is more urgent so you can get more credit for your digital and lng business? lorenzo: we have made portfolio moves in the past.

we'll continue to evaluate that portfolio. alix: are you happy or are you active? lorenzo: we will look at where the returns are and we will continue to evaluate where we need higher returns. we have done it before. we will continue to do it. no change in the strategy and the way in which we've executed in the past. alix: in your last earnings digital showed more income then equipment. will it become bigger than oilfield equipment. you ever see that turning where you are a digital company and you do some oil services stuff? lorenzo: you actually go hand-in-hand. if you look at our portfolio, the good thing is if there are interactions. oilfield equipment has digital capability, and you will see an enablement of increased productivity as you go offshore. you will look at some of the capabilities we have to diagnose problems earlier, during which we gather the gaeta -- gather the data. you are just listening

to lorenzo simonelli, the baker hughes ceo speaking with alix steel. an interesting conversation. we have seen this onslaught of new paths on the market. export projects in the u.s. and australia and that puts downward pressure on gas prices, lng specifically. he does not seem too concerned. short of saying there was going to be a lot of asset sales, and alix steel did push on that question, the question baker hughes id its peers start cell asset, who are the buyers? romaine: you wonder how the weather plays. natural gas is a tricky thing. did you notice poxon tommy phil did not see his shadow, so that means an early end to the winter. sonali: 50 degrees new york today. romaine: wonderful. that is good. sonali: speaking of climate

change, the good question burning over everybody alix is talking to is where does big oil fit as the world starts to back more climate change? futures coming up, s&p holding. we saw shares in china down 8%. s&p futures up .5%. we will look at key resistance levels up next in today's technically speaking. if you're jumping in your car, tune into bloomberg radio heard across the u.s. on sirius xm channel 119 and on the bloomberg business app. there is tom keene, back in the bloomberg radio booth. from new york, this is bloomberg. ♪

romaine: time for technically speaking. we are here with bill maloney, the chartered market technician and the voice of bloomberg equity squad. he joins us right now. you can listen to bill on the bloomberg by typing in squa . let's start with shanghai. bill: shanghai reopened overnight. was down as 8%. looking at a five-year chart,

maybe we are at a support level. to 2016ports unexpected to 2018 lows. maybe some support around 2000. 2600 to 2400 may be a short-term support in shanghai. sonali: i know you are looking at copper next. it is rising a little bit, especially relative to involve. what does poppers rise say? rise say?es coppers bill: it had 12 straight days of losses and is now up 1.9%. 246 to 256 support zone. to 217.fails, it 236 246 to 256 looks to be pre-good support. romaine: everyone is paying a lot of attention to copper. we are talking about the s&p 500

, s&p futures, and what we have been seeing. they are resilient overnight. a lot of folks were expecting pain given what we saw in china, but that held up. bill: s&p futures up around 20. aroundnce today will be 3259, but, and holding 30 to 24 is your initial support level. romaine: bill maloney, always love his charts. you can check him out on the bloomberg terminal. that doesn't it for bloomberg daybreak: americas. we did not mess it up. i hope alix steel is proud of us. coming up, the open with jonathan ferro. one of his guests is troy gayeski, sky bridge capital. this is bloomberg. ♪ amazon prime video is on xfinity x1.

so when you say words like, "show me best of prime video" into this, you'll see awesome stuff like this. discover prime originals like, the emmy award winning the marvelous mrs. maisel, tom clancy's jack ryan, and the man in the high castle. all in the same place as your live tv. it's all included with your amazon prime membership. that's how xfinity makes tv... simple. easy. awesome. ♪ i'm feeing good right now [ fast-paced drumming ]

jonathan: from new york city for our audience worldwide. i'm jonathan ferro. "the countdown to the open" starts right now. ♪ jonathan: china lashing out at the united states for "overreacting." to the markets opening biggest selloff since 2015. attention turning to the iowa caucuses. bernie sanders leading the way. here is your monday morning price action. equity futures advance 18 points on the s&p 1.54 on the u.s. 10 year.

zero negative. euro-dollar 1.1063. let's begin with the big issue. is this the opportunity to get back in? >> a pretty exciting opportunity for investors. >> this is the catching folding -- >> to get into the market. >> access from developed markets and asian markets. >> it is time to go shopping. >> we do not know how cheap they are.