[theme music] good morning, everybody. welcome to this brexit day special edition of "street signs. >> i'm joumanna bercetche. these are your headlines the countdown is on to brexit midnight tonight cet, the uk will leave the eu. we are just 15 hours away following a 53-year membership of the block the british government is due to

hold celebrations around the country to mark the day. brexit party meps are making a cheerful departure from the european parliament for the last time to the due of bag pipes and waiving leave umbrellas. hong kong shuts 30% of its bank branches after the w.h.o. declares a health emergency. amazon crutches fourth quarter expectations sending shares lightly higher on the back of record subscriptions and growth of its cloud business

so it has taken over three and a half years, many hours and debate, protests in central london in fact, protests in other cities in europe but finally a resolution between those who wanted to remain and those what wanted to leave. brexit will take place officially at midnight cet, 2300 hours gmt. what will actually change? the reality is, nothing. we will continue to live in the uk under eu rules. 11-month transition period falls into place uk members will immediately lose their seats in the european parliament and british leaders will no longer take part in uk

summits. today marks the end of the membership which came into effect january 1, 1973 members of the cabinet are set to gather in northern england before prime minister boris johnson delivers a special address at 2200 gmt. government buildings will be lit up in red, white and blue and union jack flags will mark the occasion a countdown cloak will be projected on to number 10 downing street as we pointed out a number of times, there will be no bong from big ben here. they were going to have a whit round. i think there was a funding campaign the reality is, that will not happen there will be other celebrations in other parts of the uk

>> it might be disappointing for some instead of focusing on the big bong, let's focus on the big picture. we have a cast across europe steve is in central london and julianna is the uk border and then joining us from brussels, as well. before we do, let me start with what we are expected to hear later today. brex brexit this is the dawn of a new era. johnson will call for unity and will describe brexit as a moment of real national renewal and change on the back of that, let's take a look at how the pound has been fairing this firm.

we are trading firmer. one of the reasons why we are seeing the uplift is the fact that they didn't do anything on the fed. they are keeping that modest tightening up $.3% since the referendum, the pound is about 10% weaker at one point, we were 20% weaker that is it for the pound let's get back to geoff. >> it reminds me of the day when we were encamped on the refer here in a tent around the referendum results as you recall, the forecast, the

polsters were telling us it would all be over. that david cameron's gamble paid off. it didn't turn out that way and we immediately saw that 10% plunge in sterling as those results started to trickle in to confirm that in fact the uk would be leaving the eu. it has taken three years to get to the point where we do have the formal exit. there has been a lot of demonstrations from both sides of the argument, most of which you've been somewhere in the middle of. >> it has been a real joy. the nature has been very, very good for 95% of people there have been a few extremist.

look at parliament square. it is empty. we've seen poll tax rise, brexit, trump, the country side alive. hundreds of thousands, millions of people over the years using this as the congregation point for and against issues over the years. but today, it is quite extraordinary. i do believe that is a story in it self that there is no one here i saw a chap with a eu stars blue and gold barret and another. buts that it three protesters i've been waiting for this for four years the fact of the matter is, after october's stunning

demonstrations and there were hundreds of thousands of familiar downing street to hear, they are gone. i think the uk general election in december took the wind out of the sails of both sides. the debate, the argument was done as soon as boris johnson got his big majority, the fact that he would get through the bill all of those i stood on the green over the years, it all became immaterial. look at big ben, this used to be called sir steven's tower. it's actually called the elizabeth tour and the bell it self is called big ben there will be no bong over brexit the crowd funding didn't work.

the trickle up will be running down downing street. churchill looking at this, a massive fan of the european union. the question is whether he was a pro uk in the eu or whether he saw the uk functioning outside of it as well. it is fascinating to watch others claiming churchill as their own. london is going. there are commuters gallore. i'm sure they would love this. look at the press. look at this bored group of

journalists. we are not seeing any protesters it may kick off later when everyone leaves work 2:30 p.m., a chap by the name of peter french he's not expecting tens of thousands. and after that, of course, from nigel later on, his brexit party. he's not allowed any fire works, not allowed his big bang bong, and no alcohol not sure that's the kind of party many of our viewers want to go to >> steve, you make the lack of protests very exciting there seems to be some what of brexit fatigue out there that is steve sedgwick in

westminster. britain is hoping to strike a deal with the block during the transition period, which ends december 31st. let's get to julianna in dover at one of the key trading ports. we are now entering this transition period for 11 months. nothing should change on the trading front but i wonder if the trade activity through dover has been impacted. what can you tell us >> reporter: thank you, joumanna this is right at the epicenter of the trade between the uk and eu 70% of traded goods come through dover. that is going to mean a whole lot here in the port of dover. as you mentioned, right now, it is really business as usual here for the remainder of the year,

things will continue as they have let's not forget we could be looking for a hard brexit scenario there have been estimates all over for what that could mean for trade volumes. what that could mean for dover itself, one of the problem areas is the potential of back log of traffic for the loris. 12 million passengers. you can see behind me, the road. this area gets congested easily. they imposed motor way barriers to control the flow of traffic and control the backlog here there is a logistics challenge and trade volume challenge that is a bigger question for the uk in terms of the scale here, the

european union account for 45% of the uk exports and over half of the imports this relationship is crucial a reminder here, despite all of the challenges that come, they voted 62% in favor of the uk leaving in 2016. i'll hand it back to you in the studio thank you. interesting to see how things will evolve there as she mentioned, dover is very much the epicenter of trading between the uk and the eu. a big factor moving to company news, electrolux shares lower after the group is warned about the coronavirus.

should chinese suppliers be affected further it is implementing a plan to mitigate any extended impact let's get out to the ceo of electrolux can you tell us more about the potential impact from coronavirus that seems to be part of your press statement earlier that investors are picking up from. there is concern it will hit the supply chain in the first quarter of this year >> caller: i think you know, a lot of factories -- chinese new year has been extended for one more week. i think that is manageable if that gets extended significantly, there are significant categories for us that are supplied mainly out of china like small appliances and such we wanted to highlight that. as of right now, we don't have

any specific information about further challenges >> just to ask you, what assumption are you working on -- i appreciate it is difficult at this point to ascertain how long the closures will go on for. do you think the supply chain could be affected one or two months or six months or the full year >> caller: again, it is very, very difficult to assess you know, we have many suppliers in china there are significant volumes coming out of there. if that gets extended, that will be a core responding impact week-to-week >> i wanted to ask you about the outlook, coronavirus aside, you did warn in your press statement that the business mix will be some what unfavorable for the

quarter and better for the latter half of the year. i would have thought with the relaxation with tensions between u.s. and china on the trade war, that would be positive for your business >> caller: right for us in the first half of the year, we have a major issue of the ramp up in north america with that vablt and adding additional costs as we come out of that, we expect results and improvement i agree that relaxation of the trade tensions are a positive. we welcome even further there. >> tell us about your pricing. >> caller: we were we were able to offset in terms of tariffs and raw material in terms of price it is hard work to do that it impacts the price for

consumers and our products eventually >> one final question for you. we are coming off strong earnings for amazon -- the reason i bring up amazon, they also are setting their eyes on smart homes. you see more technological companies wanting to venture into appliance makers. how are you viewing that do you feel the pressure is on from your perspective to tech up further to compete with these tech companies that are eyeing your space >> caller: we are extremely focused on providing great innovation to consumers. at the end of the day, we are experts in making great tasting food or care for their clothes additional technology will help us enhance those further just comparing to other tech companies, i think our deep confidence there will keep us ahead as we continue to drive

the technology as well >> all right thank you for joining us, the ceo with us. coming up on "street signs," clesworld health organization dear coronavirus a global health emergency more when we come back ♪ ♪

robinwithout the commission fees. so, you can start investing today wherever you are - even hanging with your dog. so, what are you waiting for? download now and get your first stock on us. robinhood. looking to get your business off to a fast start in the new year? it's go time! switch to comcast business and get fast internet on the nation's largest gig-speed network.

plus, complete reliability with 4g lte backup. and, cloud-based security to help protect the devices on your network. greenlight your business in 2020 with fast internet and voice for $64.90 per month. switch now and get a $100 prepaid card when you add comcast business securityedge. call today. comcast business. beyond fast. looking to get your business off to a fast start in the new year? it's go time! switch to comcast business and get fast internet on the nation's largest gig-speed network. plus, complete reliability with 4g lte backup. and, cloud-based security to help protect the devices on your network. greenlight your business in 2020 with fast internet and voice for $64.90 per month. switch now and get a $100 prepaid card when you add comcast business securityedge. call today. comcast business. beyond fast.

welcome back to "street signs. the world health organization has declared the coronavirus is a global health emergency. over 200 people have died in china and over 10,000 cases have been detected. the spread of the virus to 18 countries is the main reason behind the declaration the health chief praised china's response >> with respect to the outbreak, virus, sequence and shared it with the w.h.o. and the world is

very impressive and beyond words. so is china's commitment to transparency and supporting other countries. in many ways, china is actually setting a new standard for outbreak response and it is not an exaggeration. >> carrie lam's administration is making a statement and has urged residents to avoid traveling to main land china >> at international border control, there should be exit screening. we should reduce contact and give better protection to health care personnel and better communication. the governments will follow closely suggestions made by the w.h.o. in light of developments.

we will make necessary judgements to measures announced. >> let's see how coronavirus exposed stocks are fairing we've been following these sectors closely all week starting with the basic resources named. most are predominantly made in the uk trading on the back down about.04 to .05% kering and hermes are up airlines in focus. mixed picture but doing slightly better perhaps on back of the w.h.o. ruling that china are doing the right things certainly it has been a rough week for all of those sectors that are some what linked or

have exposure to travel on the main land as well. that is the picture for those stocks let's switch to fixed income we are seeing some what of a relief risk on selloff come through. the 10-year bund is around minus 40 today the 10-year italy with the vote split staying the same and pointing to further tightening in the future. that was a bit of hawkish catalyst 10-year u.s. we have trading around 1.57, higher on the session as well. following the w.h.o.

declaration, the state department has advised against travel to china. americans were urged to depart and told travel mains may be put into effect with little to no warning. a lot to discuss today let's start with coronavirus i'm reading so many different reports out there. i was just speaking to the ceo of an appliance maker who said there would be an adverse impact estimates like china gdp could be expected to drop to 5% in the first quarter. shave some gdp off the u.s. as well how are you thinking about this from a head standpoint >> in some sense, it is

important. generally markets look through these one off type shocks. all sorts of issues. i think it is highly unlikely. you think of the outbreaks we've had whether sars or bird flu or ebola. markets have to look straight through them and bounce back the spending is deferred you get a one quarter gdp hit and they look through these things >> eventually they do. there are sectors getting hit. the airlines sectors were hit. basic resources or luxury. when you think about your trading, are you looking to

redeploy cash away from anything that might have some sensitivity towards china? >> they create opportunities to get into stuff they are short lived and short term people have to health their portfolios and they health the position in individual names that hedging creates the down side and the opportunity i would see this as an opportunity to move money into things you want to move it into. >> one element that has popped up is the movement broken through the key psychological level around seven it appreciated and now we are coming off again do you think there is a risk, the chinese authorities response will lead to a breach of what they agreed on in phase one either on the currency side or

very strong support for some state-owned entities >> i think it is a temporarily thing. i think the market is thinking they need to price in a loosening to correct for the upset. they may need to price in a bit more of a cut there. i wouldn't read too much into these things they often correct themselves. >> is a slightly more positive take a lot of people are very worried out there. coming up on "street signs," we'll have more on brexit and the coronavirus after the break when i speak ttho e chair jim o'neill. stay with us

very good morning. welcome to this brexit day

special. you are watching "street signs." >> these are your headlines. we are in the final hours of the uk membership. the count down has begun hours now until the uk leaves the europon union following a 53-year membership in the block. holding celebrations around the country to mark the day. brexit party making a cheerful departure from the parliament for the last time to the tune of bag pipes and waiving umbrellas. hong kong shuts 30% of bank branches after the w.h.o. declares a health emergency. amazon crutches fourth

quarter expectation on the back of record prime subscriptions and growth of its cloud business it is brexit day but we are also following the outbreak of the coronavirus closely. i want to bring you comments now from the chief medical officer in england they are saying they have confirmed two cases in coronavirus in the uk. the chief medical officer says patients are receiving specialist medical care using tried and tested procedures to prevent further spread and the two patients are members of the same family. we have two confirmed cases of the coronavirus in the uk. we'll keep a close eye on the

story. now confirmed in the uk as well. >> let me take you to how european markets are fairing it is brexit day brexit will be happening at 11:00 p.m. tonight ftse 100, all eyes on that index. down 0.4% there. stocks that have exposure to china we have been talking about up at the top. worth mentioning, the ftse 100 is up about 16%. the cac around the flat line initial gdp came in shorter. keep in mind we are getting the broader numbers in about half an hour's time that will paint a picture of how the economy is

moving ftse mib down. the number one focus will be on the pound today trading stronger 1.3113 a lot of the uptick we have seen is on back of the slightly more hawkish bank of england. no cuts, no change and more tightening that has been given a floor. euro trading mildly weaker we do have those gdp numbers to watch out for. as for u.s. futures. a quick look at how things are fairing up here. we did have a turnaround with sentiment. very strong results out of the tech sector for amazon and microsoft. s&p andown are weaker today,

nasdaq a little higher on the back of the amazon blowout results. hsbc shares are lower after announcing 24 service outlet's in hong kong will be suspended until after february 3 after the authority announced between 20% to 30% of bank branches are expected to be temporarily closed due to concerns over the coronavirus. air france and klm have suspended flights to china the airline joins the like of lufthansa, virgin atlantic and british airways halting flights to the country amid concerns of employees being exposed to the virus. >> italy has halted all air traffic with china after rome confirmed two cases becoming the fourth european country to do so

following germany, france and finland and the uk with the first two cases in england as well italian prime minister announced two chinese tourists have tested positive for the disease 6,000 tourists were held on acrua cruise ship off the coast of italy. the ship's operator has revealed that the 54-year-old chinese woman was diagnosed with the common flu a lot of concern going around and spreading to europe. >> let's chat with jim o'neill over the phone i want to start out by asking you about coronavirus. i know in one of your previous jobs, you worked as an advisor to david cameron and you did a

lot of work on infectious diseases in your view, will this be enough to contain the spread of this virus >> my honest answer, i've got no idea i'm sure nobody else does. the w.h.o. and absolute truly specialist health bodies are making educated and informed guesses. from how i interpret them with my own knowledge and experience, i think there is a strong view the chinese are doing the best they can although they were probably a little bit late to acknowledge and recognize it but the problem is of course and linked to the core problem of

resistance there is no vaccine right now that can deal with coronavirus it won't be until probably the summer with horrid efforts from people around the world to try to find one. we have to hope with aggressive measures the chinese are doing to shut down wuhan and restrict chinese travel all over the world that this thing can be brought under control. otherwise it is very problematic. >> it is something the world is watching closely certainly, we are seeing economists advise downwards. speaking about economic growth, i want to ask you about the uk it is brexit day today yesterday, the bank of england put out the projection close to

1.1% much lower than what it was in previous years north of 2%, 2.5% do you think brexit has led to a permanent supply shock to the uk economy? >> caller: not necessarily i can understand why the bank has done it. many have been expecting this bounce for years in that sense, brexit is a convenient thing to cite as big as the brexit issue is and it is not a decision i think we should have taken but it is this is nowhere near the most important thing for the future of britain's productivity and there for its growth in the decade since the crisis, our productivity is down 20% from where it was before

-- >> all right it seems that we have lost jim o'neill. we'll try to get him back. the chair of chatham house fascinating comments there about what will actually drive uk growth at this point. one of the things we are quite good at is pomp and ceremony we saw a little bit of that. talking about the meps parading them outs out of the european parliament making the last reputation of the united kingdom within the eu. just one of the brexit day festivities. union jack colors lighting up

the square to highlight britain's formal departure the uk will continue to obey eu rules for the time being there is this 11-month transition period that will now take place as we reset our relationship here in the uk with the rest of continental europe and the eu let's get out to silvia in brussels for more on how that is going to happen. >> reporter: let's talk about fisheries. this is going to be one of the most controversial issues. let's understand why the european vessels are allowed to work in all of the european union. this means french fisherman can work in uk waters and vice versa. the problem emerging is that uk wants to end that reciprocal

access and that is raising concerns in many coastal towns across the eu. yesterday, i asked a representative from the european fisheries alliance he told me what are the specific concerns of irish fisherman as we head to the next phase. >> they are extremely concerned about this and have been since the vote for leaving was done in 2016 there is a big problem this applies to my european counter part as well we are dependent on access to uk waters for two main species which is mackerel and flounder our industry overall is 30% dependent on access to uk waters if the uk deny us access, coastal areas, which is 98% or

90% dependent on fishing would be decimated in a matter of years. we have been screamer from the roof tops and we've got some success from an irish point of view and eu as well that fisheries will not be isolated in the trade negotiations. >> the european union wants to talk about this at the same time of data privacy and others as well they want everything to be done at the same time for the time being, let me mention some practical changes here we saw some british lawmakers leaving parliament for the last time this morning. we are yet to see the union jack flag being removed from outside

the parliament later today to be put in one of the european museums in brussels. we are likely to hear from the european commissioner who will be addressing journalists and talking about the future of the european union let's see how the how future of the eu will look like with 27 members. irish prime minister is delivering a speech to outline the future after brexit. let's listen in. >> i'm ambitious about the future eu/uk relationship but we have to be realistic we need to start off on a firm and honest footing and that means a level playing field. this is very much in ireland's interest and that of the union as a whole

what does level playing field mean it means common minimum standards on worker's rights, health and safety, worker welfare, as well as product and food standards it has been the european norm minimum standards that rise over time and not fall. i think this morning is an opportunity for all of us to remember what europe stands for and where we go from here. the idea of europe has always been inspired by a spirit of optimism and a belief in a better future. europe allowed us in ireland to take our place in the world. today is bitter sweet for all of us who believe in the idea of a united europe. our sadness is tempered by what we have seen in the past three years. although the european union has been tested by the prize of pop

-- populism and others we have become more united we are grateful to member sta states i'm glad to see some eu ambassadors today. i hope you bring our words of thanks back to your capitals what we saw is prove positive. >> that is a speech on the day of brexit talking about mixed emotions now that uk will be formally leaving the eu as of 11:00 p.m. tonight let's get back out to jim o'neill who joins us over the phone. our line got cut but you were talking to us about the

productivity challenge you think is facing the uk economy i think where we left you is where we said we have seen 20% hit to this economy. what type of measures would you like to see to help get that number back up again especially now that more than ever, the uk is going to need a boost given that the trading relationship will change with the rest of the world. >> caller: relating it directly to the question with the bank, i'm a bit baffled that bank is even considered cutting the rates. weaver se we've seen clear evidence of the bounce of the economy. crucially related to this question and vet something else which is a major part of my life it looks very likely in the march budget, we'll get a fiscal

policy geared around specific measures to help the north of england in particular. areas which have the weakest opportunity in the uk and have not only been part of the core part but in decades before as complex and tricky as all of these things are for british people if the shock to the establishment of leaving the eu forces policymakers to deal with the skill education in the challenge in a much bigger way than we've done, then we might end up being able to get out of this mess we've created for ourselves. i'm surprised that the tone of the branch might be right about the trend of the economy being weaker i'm not sure now is the time to make that call >> coming back to what you were

saying talking about investment and connectivity to northern parts of the u.s initially behind it, costs going up, time line slipping, do we think the government should go ahead and push through given the mounting costs or are there other ways of creating productivity in this country >> caller: i think it is well-known i believe something called northern power house which is connecting closely connected geographic areas like liverpool and others between them it is a hugely important thing for having a permanent productivity producing impact on the north. that is the bit which is crucial. i think the way they'll have to develop is the second faphase wl

have to tie in to that that project won't directly boost productivity dramatically along with northern powerhouse it will. it has been going 10 years i don't see how the government could cancel it because no infrastructure investor or northern politicians will ever take anything any government said about big infrastructure projects going forward seriously. it is a lot of money but should be thought about as a hope for much in my view of these things. >> i would love to continue the conversation but i'm afraid we'll have to leave it there thank you for chatting with us on this historic day of the uk

leaving the eu coming up, amazon's gamble pays off what is behind the tech giant smashing expectations, after the break. aisle in stores everywhere. prevagen. healthier brain. better life. introducing a razor that works differently. the gillette skinguard has a guard between the blades that helps protect skin. the gillette skinguard.

beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network.

because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond.

>> well coming back to tcome ba. breaking news out of italy they declare state of emergency over the virus fears you talk about this being a potential buying opportunity in the market >> i think equities could provide opportunity. in that case, the reason for people to take profits has been the excuse has been the coronavirus. that worries people a bit. that creates an opportunity. the uk is very interesting the economy seems to be 5:0 celebrating. all the bad news is likely priced in. >> you like the uk market here >> i think it is interesting

someone said you've got to buy something and put it away for five years >> very interesting take thank you for your interventions the last half hour or so a quick look at european markets. stoxx 600 slightly above the flat line. ftse 100, a big day in the uk. today, that will come up shortly. at the bottom there, we have some of the names that have exposure to mainland china u.s. furutes are mixed "worldwide exchange" is coming up

looking to get your business off to a fast start in the new year? it's go time! switch to comcast business and get fast internet on the nation's largest gig-speed network. plus, complete reliability with 4g lte backup. and, cloud-based security to help protect the devices on your network.

greenlight your business in 2020 with fast internet and voice for $64.90 per month. switch now and get a $100 prepaid card when you add comcast business securityedge. call today. comcast business. beyond fast.

good morning it is 5:00 here is your "five@5." investors on edge as coronavirus fears weigh on wall street earnings delivered, amazon crushing expectations as jeff bezos's personal for opportunity swells the day has come, brexit is finally a reality. we are live in london. less than 72 hours t