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 to super bowl

liv. it is friday, january 31, 2020 "worldwide exchange" begins right now. good morning and welcome i'm in for brian sullivan. joumanna bercetche joins us from london >> that's right, the numbers have come through 0.1% slightly below the consensus bringing the grow growth some of the information is out of italy down minus 0.3% france down as well.

we don't have the german gdp number yet we are seeing a little softness in european equity the stoxx 600 has dipped below the flat line. that is a full picture there a big day in the uk however with brexit day all the focus has been on ftse 100. the fourth quarter gdp reading don't give a lot of comfort. >> thank you for those numbers our stock futures in the u.s. are shaping up a bit of deceleration in the dow indicating a lower open by 130 after the dow staged a late-day rally yesterday. the major averages are on pace for the fifth positive month in a row. a quick check on the bond market to see how things are shaking

out there. higher today at 1.56%. a check on asia as mainland china remains closed we have seen some movement india trading down japanese nikkei higher amazon shares are climbing after market and pre-market here this morning after crushing expectations for the fourth quarter. the company surging above $1 trillion key numbers include cloud, much faster growing prime memberships topping 150 million. jeff bezos network takes up another $13.2 to more than $129

billion. arjun ch arjun kharpal joins us now >> reporter: they went in saying, look, we are doing more on investing and shipping numbers. we have seen numbers strongly. even though the costs associated to shipping did jump up. the margins didn't fall as much as the market expected moving on to the cloud business. web services, revenue is up 34%. there is a slow down beating market expectation despite expectation from microsoft and others even though it is 11% to 12% of revenue, it counts for 66% of the company's overall profits. it really is the cash cow. in another part of the business, you saw the ad business jump up

plus 41% revenue growth. it looks like amazon firing on all sicylanders. ibm ceo rometty to step down arjun, what can you tell us about this news. >> she oversaw ibm in a difficult time made cloud services a priority under her tenure, the share price was down they struggled in this new age of cloud computing with microsoft and amazon taking over looking at the new ceo, he is from cloud computing at ibm

giving us a sense of where they are looking. he has to figure out where ibm is going to fit in this landscape and where they can find new technology and where they need to cut their losses and exit those are the tasks as arvind takes over ibm >> and this is not happening until april 6. she is sticking around in a chairman role. >> that's right. that is important. she's got that experience and been in the job a number of years. i think the two of them together could help moving foreas they navigate this tricky time in the tech landscape right now >> got it. i think mr. krishna has something like 13 or 15 patents. sounds like a smart guy. wall street is looking ahead to another busy week of

earnings more than 80 s&p companies will be reporting coronavirus fears continues to be an overhang the death toll rises to over 200. the state department is urging americans to avoid travel to china. the inflection in the u.s. up in the u.s. to six cases. earlier today, the uk confirmed its first cases. this could shave 4% from the first quarter gdp growth going to our guest from goldman. shaving off 0.4% from first quarter gdp. what do you make of that estimate do you think this could hang around a little longer than perhaps initially thought? >> i think it is extremely

difficult to guess at the moment the extent how the virus will impact growth. to the extent it spreads and impacts consumer confidence. we saw the data in the last week or so actually picking up. the fundamentals will be okay. we are watching the data to see whether any of that changes based on this outbreak >> we did get up dated numbers of growth up 2.1%. that was the slowest case in three years. do you think we are heading towards slower growth? >> two good pieces of news we've seen that pick up in consumer confidence i mentioned the nonmanufacturing part has picked up quite a bit reducing that risk of slow down that was

looking more like a risk three or four months ago we are still not seeing a material re5:0 celebration our focus will be on the ism manufacturing and whether we get a further sign of pick up there and whether that is starting to re5:0 celebrate. it seems like trade may be a truce. this is 2020, it is an election year the iowa caucus is around the corner polls seem to indicate bernie sanders is getting more and more poll leading, at least is this something markets should be concerned about because many

of the his ideas don't line up necessarily with the free capitalist thinking. >> i think were you to have a candidate that could have policies that could shake the market it is relatively unlikely that they would have the full backing of democrat congress and they might struggle to push through some of those policies that could shake the market and keeping the market relatively healthy at the moment. were that assumption shaken, things could be more tricky. at the moment, we think it is unlikely democrats will take the house and the senate >> stick with us when we come back, we are live in london where after years of waiting, the uk is finally set

to leave the european union. tesla continues to put ford and general motors to shame when it comes to share price and why the energy bulls are out in full force. a very busy hour still ahead "worldwide exchange" will be right back with more than 85 years of experience over multiple market cycles. with portfolio managers who are encouraged to do what's right over what's popular. focused on helping me achieve my investors' unique goals. can i find an investment firm that gets long term the way i do? with capital group, i can. talk to your advisor or consultant for investment risks and information.

the day has arrived.

the uk set to leave in 13 hours from now after years of voting, debates and protests come to a head today. steve sedgwick is live in london >> reporter: despite the hundreds of thousands of people we've seen on the streets over the years, actually, it is very calm here. the day has come limited amount of support for the eu and brexiters there will be a couple of parties later on i don't know organizers are expecting that much. you can see big ben looking pretty forlorn there was a campaign to get crowd funding together for big bang bong on brexit. it never happened. there was supposed to be a big

party. no fire works are allowed. we've got remainers here saying we'll be back. parliament has seen bigger demonstrations over the year the trump baby blimp being flown here we have sam here with these amazing apples union side and eos which is the goddess of dawn. frankly, the day has actually come those hugs hundreds of thousands of demonstrators we saw in october and over the election in december, apart from this wonderful crowd of about 100 tourists around me, i'm going to eat my apple >> thank you

i love all of that a lot of symbolism a lot of action over the years a couple of prime ministers and boris johnson, what is his plans for today? >> what happened was, he promised to take more up north to northern england which on the election night crumbled. in one of the first places to declare brexit in 2016 was a place in the northeast of england where it feels it needed a new impetus. boris johnson is having an away day in sundland where he will take a message to the nation

then down in downing street, he'll have a climb as well i'm told the red, white and blue will be portrayed and the symbolism will go on that is around 11:00 p.m >> very big day. steve, thank you for running through all of that with us. jpmorgan asset manager is still with us. as we bring it back home to the u.s., what is key for u.s. investors to understand about what brexit really means when we are talking about the economies and all of these nations and here our trade deal with the uk? >> the most important thing to understand is that this evening, nothing will really change because the uk enters into a

transition period now, the practical trade arrangements will remain the same as they try to create a new trade arrangement. the practical end will be near the end of 2020 when the period comes to an end rather than today. >> if nothing significant happens now, what is the next tent pole for what investors should be watching for when things will markedly change? >> i think what you have seen over the last month or so is that various points have picked up you've seen surveys and measures of the housing market picking up it does seem like we are seeing a pick up across the uk at the moment you are also going to get fiscal

spending the government will be spending more across a decade that has dragged on uk growth all else equal, the economy should be propped up a little bit over the coming months in terms of where we go from here, it will come down to what the trade negotiations lead to can we maintain alignment for manufacturing and services and remain freon trade >> a lot of questions still. i'm sure we'll have you back to talk about this as it progresses still on deck, super bowl fever has arrived. we'll be live in miami with the latest >> announcer: today's big number, $115.5 billion that's how much tesla's market cap grew to yesterday making it

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rewards pushing up operating costs by 14% shares are down more than 2% >> amgen expects earnings to come in below to estimates partly because of the deal to take in 20% of a chinese drug maker. shares are down almost 4%. shares of western digital are spiking today. reporting better than expected second quarter results helped but i am proving prices for memory chips western digital shares are higher by 5% still to come, this could be the tip of the iceberg for stock already up more than 18% the new face in the driver's seat at aston martin

more when we return.

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when we come back, wrapping up a wild week for wall street the dow is lower by 153. nasdaq lower by 15 and alt-meat hits miami to hear their thoughts on the plant-based craze. >> you'd be surprised that we

have some big d linemen that are vegan. >> i have never partaken >> i guess it is personal preference it is pretty good. >> i'm 315 pounds. that's not what i'm about. >> it is interesting in the chemicals and the way they make the meat >> if it is overprocessed, i'm probably not going to touch it >> i don't know the research taste wise, it wasn't too bad. >> vegan life is not for me. i raise cattle so that would be a mortal sin.

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investors look to wrap up a wild week of trading in the face of the coronavirus fears shares of amazon soar. and we are going to miami. the second half of "worldwide exchange" rolls on welcome back i'm courtney reagan. we are mixed the dow jones pointing to a

lower open near 180 points nasdaq lightly higher thanks to amazon yesterday, erasing a nearly 200-point loss in mid-day trading. on pace for the fifth positive month in a row the 10-year 1.556% the 2-year, 1.355% japan trading higher hong kong slightly higher in trade. we'll see what is happening in europe the uk is preparing to leave the eu tonight at 11:00 p.m. local time in the uk the ftse 100 down. france is down about half a percent and germany off 0.4% this friday morning.

we'll look at other top stories this morning kate rogers is here with more. a california judge has ordered johnson&johnson to pay $344 million over the lawsuit involving the pelvic mesh. kamala harris has accused them of deceptively marketing the procedure as a safe procedure. they will appeal the decision. volkswagen is looking to take over navistar. they already own a 17% stake and will carefully review this proposal american airlines and mechanics union have struck a contract deal covering more than 30,000 maintenance and service group employees.

union members must still approve that deal. the american airlines pilots union sues to stop china flights for exposing its members to the virus. >> a lot going on there. coronavirus fears do continue to be a major overhang on the markets the death toll has climbed past 200 overnight. the state department is urging americans to avoid flights to china. the infection rate in the u.s. is up to a total of six. and in the uk, two family members have tested positive eunice yoon joins us now from beijing. >> reporter: what you are seeing behind me is unusual

i'm at the beijing train station. it is almost entirely empty. this is unusual on a normal day. but during the lunar new year holiday, it is unprecedented they are implementing measures to try to stop the virus for those of us living in china, wearing a mask is standard practice it is not a government requirement outside of wuhan but nearly everyone has one on because they are fearful of catching the disease today was supposed to be the first day back after the new year holiday but the government extended the holiday so most shops are closed finding fresh produce is a challenge. because of the outbreak, people are eating at home and hording, so it is worse masks are hard to come by.

i was hear the other day and found three for $31. now there aren't any i have been looking for hand sanitizer over a week. the store clerk doesn't know when there will be more. >> this is the entrance to my apartment complex. more and more places are setting up barricades and temperature checks this is the entrance to the cnbc area my temperature is a little on the low side but normal. if i had a fever, he would report me to the authorities >> just living here, you get a sense of the impact. goldman was the latest to put out new numbers where they are revising downwards their estimates from 5.9% growth to

5.5% and they believe the u.s. economy will see an impact on the first quarter but they expect to see a rebound in the u.s. so you shouldn't have too much of a drag on the u.s. economy for the full year. >> very interesting to see inside those shops and the real day-to-day life and shortages of fresh produce, hand sanitizer and masks. it has probably been about a week since china said they were going to build a new hospital. what can you tell us about the progress >> there has been progress made. they have been airing a time lapse of the construction. there have been reports that the second hospital is being built more quickly than the first. nothing is completed yet

expectation is that next week, the hospitals will be built and ready to ease the shortage of beds in wuhan. >> eunice, thank you have a good weekend. let's talk more about the potential financial impact of the coronavirus outbreak i understand you previously worked with the department of health and human services. right now, what is going on in your mind as this virus continues to spread? >> i'll say having to work with many emergencies, i'm thank ffu i'm not there now. they are actively working 14, 16 hour days. the important thing is that the chinese government provide information to the u.s. that they need. we need to know the exact number of people that have gotten the

virus and have passed away from it we need to get the scientific data to know if it really does spread when someone has no symptoms and when someone is supposedly no longer showing symptoms, can the virus spread >> now, you are taking a step further when you see these outbreaks and what it means. goldman sach is putting out a number thinking it will shave 0.4% off the gdp >> what do you think of that number >> i think it is too early to know how significant the impact is going to be people are probably underappreciating how bad this is in china. during sars, the cdc travel advisory lasted three months

telling people not to go to china unless they really had to. this is not down one day this is going to impact earnings over this quarter. >> sars happened in 2002, 2003 the global economy is even more interconnected this could be bigger now than when we saw before >> i think we don't fully appreciate how bad this is in china. the u.s. is the global public health leader. i have confidence in the department and the people leading it now no need to race out and get masks. i think this is even bigger of a concern that we have heard we are following a developing story this morning in that ibm ceo rometty will be

stepping down. the stock popping on the news in extended trading up now more than 3.5%. to earnings, shares of amazon getting a big pop. smashing expectation in the gain surging for the first time in after hours trading. jeff bezos net worth grew bringing it up to add $13.2 billion. let's focus on the retail side of it.

this did appear to pay some dividends. >> we had a shorter holiday season they realize they need those items in a fast as possible manner you see them taking sure early and then late because we think of those fast shipping times >> curious your thoughts on grocery. it seems it has taken time to get off the ground if you look at the physical store sales, which is mostly whole foods, that was actually down you think going forward, grocery will be pivotal? why? >> part of it is the fact that fresh is now free for prime. that's why you saw on line grocery orders go up we do wonder if delivery caused

some difficulties. ultimately with grocery such a big part of the u.s. economy, amazon needs this afternoon to work to sustain their growth >> we talked about how amazon was putting up impressive revenue but not profitability. everyone said, no. they will turn that on when they need to. they've turned that on is that a blip to show what they need to but it may not be a continuing trend or is that something that could be sustained here for amazon? >> i think having covered amazon for a while, there will be ebs and flows. what that quarter does show,

when it is as strong as it was, those margins are powerful clearly expect a more moderate first quarter. >> i would be remiss if i didn't ask you about aws. still very impressive even as you see a company like microsoft growing its gains in the cloud >> there is clearly a trend towards cloud and amazon being a leader in the space. the growth you saw in the quarter, certainly plays some concerns that others may have given the intense competitive environment. >> i think the growth is lifting all of those >> thank you coming up, energy under

pressure again some investors are still making bullish calls on the sector. the count down is on before the big game between the chiefs and 49ers. talking to one of the nfl's most recognizable names coming up next on cnbc, we are talking gronk beach. check it out for a confidant feeling in your oral health, stop imagining, start acting. the unparalleled landscape of park city, or the famed peaks of whistler, you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tracking ship skis delivers, hassle free. ship ahead and go catch those first tracks on fresh snow.

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we are less than 72 hours away from one of the biggest sporting events. nasdaq still holding on to a slight positive gain we are going to get down to eric who joins us from miami. you've been talking to a lot of players about managing money, investments. what have they been telling you? >> reporter: we are here in miami. the super bowl is just two days

away what this week is is not just about the game but the business of sports, the business of celebrity. you've got all these events like players like rob gronk miami brings that together he's got this big event coming up tomorrow called gronk beach one of many ways how athletes are using their celebrities. if you are gronk, you are known for being a party animal and a fun guy. we talked about how do you balance that image with maybe sponsors that don't fit with your values? >> i've done that before it gets hectic i was young. at that age, you really don't know when you are in your 20s. you are just trying to take it in for the money that's not what it is all about. i want to stick to things i

truly believe in >> obviously gronkowski has been smart with his money we've seen him on shark tank where he's pitching his brother's investment and he's doing the cbc thing. he's allowed to be picky because he was smart with his money. >> i saved when i was playing and saved the majority because i wanted to be set when i was all done with football that's the case. hosting parties, you canmake a little bit there but i saved a majority of my money so things are good don't have to worry about that category, which is cool. >> we are seeing more players actually not on super bowl

teams. other guys like gronk who are pitching things or service >> i was going to ask you there, are they making money because they get paid to show up and host a party >> right he's got a licensing deal. it is called gronk's beach he gets money. people are paying hundreds for vip access he's there six hours it is a way to use his name. last year, it was shaq this year, it is gronk they do these things around the country for different events this is just one of the events saquon doing a visa thing. even if you are not playing, these find a way to cash in. >> others have highlighted sort of the problem in the past with

players not being as smart with their money while they are playing. it seems like maybe some of that tide is turning. there is more awareness early on to make smart decisions because it doesn't last forever. thank you for being with us. i know you'llhave a fun day today. on deck, the latest on the coronavirus including more companies cracking down on employee travel to china we continue to watch the futures as the dow losses intensify. with err down 178 points nasdaq is slightly higher by about 9.5 points you can always watch us veli on the go on the cnbc app we are back in in a moment there's a bridge. between chaos and wonder, there's a bridge. there from the beginning to where we stand today.

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time for the executive

recap. headlines you need in 60 seconds. shares of one medical company debuting under the ticker onem debuting at $14 per share. shares of aston martin surging once it was announced stroll will take a stake in the company. the company has been working to raise funds after a sales drop put pressure on its finances chevron is asking staff to postpone any nonessential travel adding that employees will need to get approval for any china travel deemed business critical. shares are higher early going. investors capping off a wild

week for oil still below $53 a barrel it has fallen more than $2 a barrel energy remains the worst performing sector. down this month. not keeping some investors from making bold calls in the space >> as long as oil is above 50, there is a lot of money to be made as well as in the mid-stream space >> we are going off the charts take a look at this chart showing historical patterns in west texas crude this is seasonal and how oil tends to trade through the course of the year it tends to tank in january, which is where we are. >> you can move congo and others here from where they were. those are powerful names in the

commodity market >> what does this mean for investors? numbers are due out in a few hours. both in 52-week lows equity analyst on oil and gas. thank you for joining us this morning. energy seems like a sector that has been left behind when almost everything else has done well. in general, what is your outlook for 2020 for the energy sector >> i think the first half of 2020 is going to continue to be fairly rough the oil market is oversupplied we do see that correcting in the back half of the year we are caution and defensive in the names that we choose for 2020 in general.

chef ron being one of those does this have anything to do with the rise of the esg trading and people that are hesitant on investing. it is certainly playing a role i do cover u.s. and european stocks for european, esg is a bigger issue. what it comes down to, financial results haven't been that great. esg can be an excuse if they are not performing financially >> you said there are some names you like with some caution what are some of those >> chevron is on the list in terms of free cash flow being returned to share holders. they had a nice increase

announced this week. we also like bp in europe. the company we think is at a deflection point being able to return more caption share holders. >> if you think the beginning of 2020 could still be a little pressure for some of these names? >> we are looking back to the fourth quarter which is a tough quarter for refining and chemicals. exxon has more exposure to those. we think it is going to be tough forexon. chevron is not looking in it either looking forward for these companies continuing to lower cost structure and be

disciplined. focusing on getting more back to the share holders. >> we talk so much about the implication for oil prices i know you are focusing more on equity names the coronavirus outbreak has put fear on the market are you worried about that and how it ends up flowing through to the equity names? >> yes, of course we are even before we knew about the contagious, there was concerns i would say the potential demand is about 200,000 barrels a day that makes the market looser libya is at very low levels right now. the market has been rightly

focused on demand recovery that gets worse as a result. >> thank you for joining us here on "worldwide exchange." we'll send it over with a quick check on the future. "squawk box" begins right now. good morning do not travel to china u.s. state department issues a new warning as confirmed cases of the wuhan virus crosses 2,000. rometty stepping down from ibm. amazon soaring after shattering expectations. it is friday, january 31, 2020 "squawk box" begins right now.

good morning we are live from nasdaq marketsite in time square. i'm becky quick. you are going to see some red on the s&p and dow. dow down by 155 points yesterday, we were looking at the dow down by as much as 220 markets managed to rally and close higher for the day dow was up 124 points at the end of the session however, it is thelast day of january. the weakest start we've seen in a while they do remain poised to post their