good morning welcome to "street signs." i'm joumanna bercetche and these are your headlines the shanghai composite closes at a one-year low after its worse session since 2015 fears over the coronavirusout break wipe more than $400 billion off broader chinese markets following the extended lunar new year the coronavirus death toll tops 360 with the first fatality reported outside china while

foreign countries step of evacuations and travel restrictions apple temporarily closes all of its stores in the country. the british prime minister boris johnson prepares to lay out his vision for a trade deal with europe. he is set to warn the uk won't be following eu rules as foreign secretary dominic raab says they hope for a canada style deal. >> standards are higher but we assure our eu friends and partners, we will not be insisting that they align with our rules as applies to the free trade deal with the uk that's not the way free trade deals are done globally. shares in julius baer fall sharply as they suffer 37% drop in net year profits. we'll talk to the ceo at 11:30 cet as they promise to ramp up cost cuts.

good morning welcome to "street signs." let's take you to chinese stock markets which plummeted amid the outbreak of the coronavirus which has infected more than 17,000 people. the shanghai composite closed at a one-year low after its worse session since 2015 over $400 billion in market value has been wiped off the mainland's indices in the first day of trade they have blamed a panic triggered by, quote, herd mentality and said the epidemic would not change the economy's long-term fundamentals let's get out to matt, who joins us from singapore. matt, i've got to say, what an opening session for chinese markets overnight. down more than 7% to 8%. talk to us about the response that we're seeing out of the

pboc and the chinese authorities trying to dispel some panic that's in the air. >> yeah. i'll just recap the price actions for you. as you mentioned, it was a particularly rough session the markets opening down by about 8% didn't recover at all. the china markets have been shut since the end of january, the 23rd of january for the lunar new year break it was the worst single day break for the shanghai composite since august 2015. barely moving to end by down 7.7% as you mentioned, 420 billion wiped off the market value the pboc injecting $1.3 billion into the market to cut 17 and 14-day reverse repo rates, which was a surprise the chinese central bank saying the impact from the virus will only have a temporary impact on the economy and the stock market plunge driven by some irrational factors, is what they're calling

it, or even panicked triggered by the herd effect this was the closing picture shenzhen down by more than 8%. the hong kong market moving higher up by 0.2 of 1% the likes of japan down more than 1%. australia, down by 1.3%. singapore off by 1.2%. the kospi recovered some declines and closed flat it's all about china and the eye-watering moves we saw in markets, down by 7.75% at the close of trade back over to you. >> absolutely, matt. we're seeing knock-on effects in some of the european sectors that have exposure to china as well let me talk you through what we're seeing in europe starting with some of the miners and a lot of those are actually based in the uk and ftse 100

a bit of a mixed bag we see glencore down 1%. luxury names very much in focus. lvmh down 0.4% no surprise there that the luxury stocks are also getting hit on back of the moves, both in china and hang congreong kong today we're seeing a spot of green in the travel companies, lufthansa up worth bearing in mind, even though travel has been hit, oil prices are significantly lower that is a key component. so, let me talk you through what is going on in oil because oil-producing nations will hold an emergency meeting to discuss the impact of the coronavirus on oil prices the opec and non-opec joint technical committee will

reportedly meet this week in vienna to decide whether to cut current output cuts beyond march or put deeper restrictions in place. this is the picture for brent and wti this morning you can see brent is down at $56. some heavy, heavy losses overnight. for the month of january, energy was the worst performing sector amongst all sectors in u.s. and europe looking at losses of about 15%. it's been a very heavy month for energy you can see that this morning as well no different. gold is coming off a bit to tie it back to what i was saying about the travelle and airline companies, the lower price is a margin from cost perspective, even though travel has been hit by the coronavirus outbreak ow, the death toll from th virus outbreak has risen to 362 with the philippines reporting the first fatality outside of china. over 17,000 cases of the infectious disease have been

confirmed globally and the u.s. administration has temporarily denied entry to foreign nationals who have recently traveled to china u.s. carriers, delta air lines, american airlines and united airlines have also suspended their services to china. industrial profits in china also fell for the first time in four years in 2019 as the manufacturing sector felt the brunt of the impact of the trade war with the u.s data showed profit declined 3.3% annually to $898 billion for 2019 meanwhile, factory activity grew at its slowest rate in five months during january, according to the private survey. the data does not take into account the full effects from the coronavirus outbreak already seeing weakness in the data and that's not even accounting for the virus let's bring in amanda carr, strategist let me take you to market reaction we've had in the last

hour steep decline as spelled out by matt in singapore. chinese he can we markets down 8% and the pboc and authorities are coming in and saying, no reason to panic long term this shouldn't derail the trajectory of china. do you share that view, the optimism that once this virus is contained china can come back as strong as it was before? >> well, that's a question of how long it lasts for. at the moment, if they're talking about peaking in february, basically we're talking about q1, a massive hit in terms of both consumption and the manufacturing side of the economy. because normally you'd expect, obviously, you know, the strength to your consumer brents after spring festival you get revamp in manufacturing and keys of how many orders are coming in it was meant to be better because of the easing of the trade war. obviously, this -- the shutdown has been extended. this means manufacturing pickup. the construction pick up isn't

going to happen in q1 so does it come down into q2 and do things start stabilizing? the pboc and the ndrc you're trying to stabilize expectations in terms of how long the virus lasts for -- >> it's unknown and nobody knows that and it's coming at a bad time for the chinese economy one question for you is a question about the actual arsenal in the tool kit the chinese authorities have here. you could also argue they spent a lot of their chips dealing with the trade war last year, all of the chip cuts, the injection of liquidity? are theyrunning out of options now that this black swan event occurred. >> fortunately, they did not go full-on stimulus some of the infrastructure was only up 4% last year they didn't go, you know, full like in 2008 last year in order to counter the trade war effect.

the economy was picking up the -- there was more infrastructure coming in there was month export orders coming in. we could have seen a little rebound as we came into the rest of the year and things were relatively stable. obviously now they have to move into much more sort of supportive measures. the risk is in terms of the private manufacturing side because they're the ones that have been hit bit trade war. they don't benefit so much from the stimulus package if they're also getting the shotdowns extended, cash flow is tight, maybe some support isn't going to come through to that level, then they're going to be the ones most at risk. it will be the private led industrial side of the economy, which will be hit the most and the rest can be supported in some way. >> you make an interesting point. i'm interested to hear your view on a company liabilities here because we have started to see yuan's appreciation. many of these companies do have foreign-denominated debt and the dollar

the dollar depreciates that poses a headwind is that a knock-on effect we should worry about in china, the depreciation of the yuan could lead to further number of defaults and deliktcys? >> the flash point is property sector because they have the highest proportion of u.s. dominated debt they tend to be most highly geared, in general if their sales and their construction activities don't start recovering and cash flows as we get into q2, the property market becomes one of the biggest risks. >> it was down 10% in sars, wasn't it? >> yes so, if people aren't buying the houses and the construction isn't starting again, then that's going -- this is when, if the virus continues, that will be the biggest risk point. >> another sector we watched closely in china is the auto sector

obviously, the chinese auto demand is something that has ramifications for the entire auto sector in the world we saw car sales drop 8% it was a weak year that was already down from the 2% from 2018 what does the coronavirus do in china, does it mean they'll stop now and later compensate in the year >> on the consumption side you can see that's probably likely to rebound more quickly, sort of afterwards because you don't have the drag on investment, you don't have the cash flow issues. if people aren't spending now, then once the virus passes, they can spend then as long as the money comes in what of the -- with the auto market, a big factor last year and in previous year was the deleveraging, the consumer financing under pressure that's beginning to make a reappearance some new companies setting up and some loosening actually, the auto sector is

potentially the one that could stabilize first. other sectors like private manufacturing and property market that may seat biggest hits. >> interesting points, miranda thank you for joining me on "street signs. miranda carr from haitong international. talking through implications on chinese sectors to watch out for. now, a second plane carrying british nationals from wuhan has arrived in the uk. passengers on the flight have been quarantined at a hospital along with more than 100 others who flew into britain late last week julianna is live from london is monitoring how the uk government has been responding so far just give us a breakdown of some of the measures that have been introduced as of yet to contain the spread of coronavirus in the uk >> reporter: good morning. firstly, let's take a look at what the uk government has done in response to the two confirmed cases of coronavirus here in the uk at the end of last week, two

people were tested positive for the coronavirus. that's 2 out of 266 people who were tested. these were two chinese nationals. one of whom who was a student at the university of york the uk government has taken these two people who tested positive to one of the high consequence infectious disease units in new castle. there are two units in england one is behind me, the royal free hospital, and the other is in newcastle. they're being treat there. there's the issue of those in wuhan to the united kingdom. the first round people were repat rated, 83 uk nationals returned to the uk and over the weekend a number more were returned to the uk on a french flight interesting cooperation among european nations to get those european out of wuhan. but more broadly, the uk has not taken as drastic a stance as other nations like the u.s., australia, new zealand they haven't completely closed

the borders to chinese nationals. they've gone with the w.h.o. recommendation to introduce more advanced screening measures at airports for those coming from china. the uk not as drastic as the u.s. and some of the other nations have been, but they are taking measures to control the situation. and every day at 2:00 p.m., we can expect to see an update from the uk's department of health and social care. we'll look forward to that update later this afternoon. >> excellent thank you for explaining it. we're all on high alert to see how the situation evolves. not just in the uk but everywhere. if you want to get involved in any of the discussion we had, whether it's talking about the movements we've had in chinese markets or the implications it could have on the global economy, tweet us. we are @streetsigncnbc or treat me directly @cnbcju. still to come, we find out how julius bair plans to trim

costs. we'll cross live to jeff in zurich also make sure to tune into our interview with the new ceo philipp rickenbacher

welcome back to "street signs. let me take you to some market price action we've had overnight because we had heavy, heavy declines in chinese he can we indees we were talking about earlier with the shanghai composite down 7% to 8% during the session. very strong session of declines as far as asian markets are concerned. other markets in asia did pare some losses toward the end of the session. the handover by the time we got to europe was ream you are seeing a bit of green on the board in the heat map in europe, bucking the trend from what we saw towards the end of last year. the stoxx 600 is up a quarter of a percentage point after a day of very heavy losses on friday for both european indices and wall street as well. so, a bit of green here.

and, of course, the major concerns that of the ramifications of coronavirus, what it means for global growth, industrial production. remember, we also had those industrial production numbers come out of china overnight as well, pointing to a disappointing number those haven't even accounted for the coronavirus impact still a lot of questions, a lot of uncertainty for the time being we're seeing a bit of a relief trade in europe stoxx 600 let's talk about individual markets and break it down further. ftse 100 in the uk up 33 points. in is the first day of trading for the ftse 100 since the uk has officially left the eu obviously, the next question now is the free trade agreements and whether or not we can get to free trade agreements in the next 11 months we'll have 11 months to talk about that the picture for the ftse 100 is up 0.5%. dax up 0.4%. cac up a similar amount and the italian index up 0.4 of a

percentage point as well the names underperforming, the sectors underperforming with exposure to china. miners, a lot are situn the uk, glencore, so that basket is about half a percentage point. oil and gas down a percentage point, no surprise given they have plunged brent at the lowest level in a year we have an emergency meeting coming up with opec to decide what to do on output cuts. auto down 0.1% tech sector up about 1%, so bucking the trend there. i want to take you to some bank and finance news julius baer shares are down after the company announced fresh midterm targets and cost cuts after seeing net profit t shareholders drop 37% in 2019.

the swiss lender and wealth manager says it plans to lower its cost/income ratio as part of a three-year strategy to recoup. jeff is in zurich. the reaction in julius baer shares down more than 4% tells you investors are not really buying into this strategy. also, worth bearing in mind that the profit was down almost 40% last year. yet again, the same issue is arising, that of profitability what can these asset managers do at this point to help boost profitability at a time of increased amount of competition in the space >> reporter: well, the problem is, as you know, you've been following the sector, most of these banks, as they're announcing ho-hum numbers are offering more jam tomorrow and i think this is the message that we're getting from julius baer obviously, there was a big impairment number in the earnings we saw for full year 2019

so, that explains some of that big headline net profit drop attributable to shareholders, that 40% you talked about, or 37% in reality but the bank is announcing some interesting new targets here one is 10% profit growth over the cycle per annum. they think they can do that by squeezing costs and focusing on efficiencies within the business they also want to use technology as a way of trying to offer new higher value product to existing clients. but i think what's interesting in the outlining of the new targets over the next three years is that they've set to one side that ambitious net new money number that traditionally we see these wealth managers go after as they signal to the market higher growth ambitions what julius baer is saying today is, look, we don't think that

going for higher net new money to achieve higher growth is actually the right strategy in an environment where there's so much competition and gross margin is likely to contract further if we don't take the skap scalpel to some of the cost side of the business so, i think the market, as you say, may not be buying into the broader strategy, although perhaps just a tough market day. but i think the overall message, which we've seen from all of the banks, that the broader environment is so competitive and challenged by these negative interest rates that it's better to focus on quality where you can find it. and i think that's the message that julius baer is trying get over i do have an interview coming up with philipp rickenbacher, the relatively new ceo i've just been in the presentation listening to the ambition it will be interesting to see what he has to say to us in a

one-on-one conversation. because, of course, there are some out there who will say by not pursuing growth at all costs they are rather running up the white flag right now >> i'm interested in what they have to say about the net new money target, jeff, because it echoes a question i put to the ceo of ubs not so long ago, a couple weeks back. said, we're a new aradigm. it seems the focus is on making the most of what they have and increasing margins, increasing profitability rather than going out there and exploring and trying to get that new business in what has become a very, very competitive domain i just want to take you to another point, jeff, that is on the cost-cutting front they have also pledged to keep their cost/income ratio low. they want to get it down to 61% from 70% have they given you any more color on how they'll get there and where those cost cuts are going to come from >> well, they talked a bit about

taking out another 300 positions. the question remains whether that is in the lower tooers of management or whether that comes after actu-- from the sharpened, some of the managers within the press conference, philipp rickenbacher was actually asked that question by one of the analysts about what that means for relationship managers and would that be an area where they would cease aggressive recruitment that's one space where costs have been driven up for the organization his message, no. we are still looking for the right people but you do get a sense that maybe compensation structures and amounts are going to have to change. but that's, perhaps, a reflection of what's going on across the broader industry. as you know, all of the banks are going down this road i think the real issue at the end of the day will be execution and that will determine, i think, whether the shareholders

are going to stay on board with some of these strategies it's all down to mr mr. rickenbacher to prove he is the right person for the job given that he is still relatively unknown by the markets. as i say, it will be interesting to see what he has to say when we have that conversation in a little while's time and work out whether this is the management team that can execute on this strategy and improve the overall return to shareholders whilst cutting the costs. back to you. >> really looking forward to that, jeff we'll be back out live in an hour's time. i just want to bring you some flashes we're getting out of hong kong. leader carrie lam here saying they announced the suspension of ten border crossings out of 13 with mainland china in a bid to curb the virus she also said the medical worker strike is extremely mean, that's

a quote, and putting patients at risk just to give you the context here, there are about -- there are hundreds of hospital workers in hong kong who have gone on strike, demanding that the border and those crossings be closed with china. so, obviously they have made those announcements to that effect they closed 10 out of 13, but then again, carrie lam is saying the strike the medical workers are going on is, quote, extremely mean. we will leave you, before we go to break, with another look at chinese markets, which have seen more than $400 billion wiped off in value just today. [♪]

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for dramatic skincare results, try olay. and now receive 25% off your purchase at olay.com brand power. helping you buy better. welcome back to "street signs. i'm joumanna bercetche these are your headlines the shanghai composite closes at a one-year low after its worst session since 2015 fears over the coronavirus outbreak wipe more than $400 billion off broader chinese markets following the extended lunar new year the coronavirus death toll tops

360 with the first death reported outside of hong kong while carrie lam announces 10 of 13 main border crossings will be closed. >> that would substantially reduce the flow of people further. as you see, we are acting very fast because we are monitoring the situation very closely >> british prime minister boris johnson prepares to lay out his vision for a trade deal with europe he is set to warn the uk won't be following eu rules as foreign secretary dominic raab says the government hopes for a canada style deal. >> our standards are higher, but we assure our eu friends and partners, we will not be insisting they align with our rules as the price of a free trade deal with the uk that's not the way free trade deals are done in the uk. shares in julius baer falls

as they suffer a 37% in full year net profit. we'll speak to the ceo philipp rickenbacher as the group promises to ramp up cost cuts. we are seeing some very big moves in overnight. let me just take you to the price actions. of course, these indices have been closed since the third week of january for lunar new year. they opened overnight. what an open it was. shanghai composite down almost 8% 230 points lower down 7.8% overall in the session. shenzhen down 8.4% this their worst session since 2015 it's taking the shanghai composite back to levels not seen since last year a lot of the gains on these indices have been wiped out in just the last 24 hours a patch of green on the board with the hang seng ending slightly positive on the day

up 0.2%. the hang seng had been open a little longer. that's the picture for chinese equities i want to take you to what's happening with the chinese currency, the yuan the dollar/rmb is up versus u.s. dollar offshore, similar amount but not as much weakening. to the tune of 0.3 of a percentage point we continue to see the chinese currency deappreciate in the face of risk-off and global rating of equities something worth keeping an eye on from a financial standpoint china's foreign ministry has accused the united states of creating and spreading panic around the coronavirus while not providing any substantive he help in fighting the outbreak beijing also criticized the u.s. ban on china, saying it is

unreasonable to prevent people from traveling across borders. the ministry said countries should, instead, have science-based responses to containing the outbreak. so, those are comments from the chinese foreign ministry a little earlier meanwhile, apple has announced it is closing all of its stores and corporate offices in china until february 9th in response to the virus outbreak the tech giant, which has 40 retail outlets in china, cited a quote abundance of caution based on the latest advice from leading health experts the company has not provided an update on how the epidemic has affected business in the chinese market overall specifically its production and supply chain as beijing has required many factories to stay closed until next week that's the picture for apple that stock was up 100% in 2019, but some headwinds likely coming up. hong kong's economy shrank by 0.4% in the fourth quarter, continuing the city's first

recession in a decade. months of anti-government protests and the u.s./china trade war hurt the xhi with full year gdp contracting by 1.2% we are seeing a definite economic impact. not just from the trade war but also coronavirus beginning to deepen some concerns there let's take a look at how u.s. futures are shaping up we had a negative session friday with wall street the indices down significantly, we had dow down about 600 points by the end of the session. today you can see there is a little life on the screen. s&p, dow, nasdaq all pointing to a better session with the better session in european equities as well. switching to the uk, the british prime minister boris johnson will lay out his vision for a trade deal with the european union in a speech this morning where he's expected to issue a warning. the uk will not adhere to brussels' rules. let's get out to vilam

we should be getting good outline, the contour of exactly what the uk is looking for out of this potential trade deal with the eu. we already had some hints from the foreign secretary over the weekend, didn't we >> reporter: yeah, that's right. dominic raab was essentially putting forward the british position when it domz thecomes e trade talks, accusing europeans of backsliding on previous commitments. here is how he outlined the british government's priority when it comes to these negotiations >> we have taken back control of our laws we're not going to have high alignment with the eu, but we want to cooperate and we expect the eu to follow through on their commitment to canada style free trade agreement that's what we're pursuing there's great opportunity for win-win. our regulation and standards are higher we can areassure our eu friends and partners, we will not be insisting they align with our

free trade rules to align uk that's not the way free trade deals are done >> reporter: so, the british government there calling for a canada-style free trade agreement. what that means, essentially is that they would like to see relatively frictionless trade as part of that agreement but they don't necessarily want to follow all the rules, regulations and standards that the eu typically imposes on its own members the europeans, as you might imagine, and the irish prime minister have said they do expect to see a level playing field. that's some of the language included in the political declaration of the withdrawal agreement that was agreed to late last year going forward, it seems like this will be the big clash over the next few months. once these talks kick off next month, it will be focused on how does the uk get access they want

and businesses are clamoring to at the same time avoiding the need to follow regulations put in place by brussels and also, of course, maintained by the european court of justice. >> very nicely put there it's a tradeoff essentially between alignment ansomething we talking about a lot in the next 11 months. i want to turn to some of the uk data we've had come out in the last few minutes strong manufacturing numbers manufacturing pmi coming in at 50 in january versus the weak number of december of 47.5 higher than the flash estimates. also the highest number since april. we are seeing some positive signs in the uk manufacturing sector pmi new orders at 51.2 versus december number of 46.4. the highest since april. some positive numbers coming through on the pmi manufacturing. british talent shortages are at a record high, according to freshmanpower research

they suggest 54% of companies report talent shortages with larger companies of over 250 employees struggling the most. what do workers want director of manpower group in the uk joins us for more on this topic. so, just give us a bit more detail about this report the takeaway is that there is an extreme uk talent shortage where is it showing up how is it showing up >> interestingly, in the uk, the overall talent shortage report is not as great as the global number of 54%. the uk is at 23% but the trend has accelerated in the last four or five years. we certainly see changing skills and emerging technology creating this challenge of trying to fill vacancies at the moment. >> what are the main sectors seeing the shortage? >> number one is skilled trade you can talk about the construction sector in that sense. number two -

>> skill trade is anything like mechanics -- >> electro, mechanical engineers, welders is another area which has been reported as a shortage number two is health care, and number three accounting and finance. the first two have typically been in the top three for years now but the accounting and finance is relatively new coming to the top three. >> can i ask how slowing immigration into this country from -- ever since the brexit referendum has factored into that and whether or not the reason why the shortage is emerging is because the people who were doing those jobs before are not coming into the country anymore? >> the shortage for the top two is most definitely been impacted by immigration whilst you've seen some increases from non-eu countries, there's been a decline coming from the eu countries. so, it will remain to be seen what comes out of the immigration policy across the next few months, coming out of

the government >> but it seems to me there's a mismatch between the pool of labor that's available versus the talent that is needed. so, what can you do to rectify the mismatch between the two and is it a function of reskilling and retraining existing workers so they become more equipped for this new type of work? >> a big focus is most definitely about building and growing your own talent. so, we're talking to employers about how they can nurture, create opportunities for people to educate themselves, expose themselves to new opportunities, build experience through on-the-job training as well. building is most definitely a big focus with 84% of employers saying they want to upskill, reskill their workforce these days. >> that's the big challenge, i think, going forward we have to leave it there. thank you very much for coming on the director of manpower group uk. the iowa caucuses in the u.s. kick off later today with the results of this first vote

likely to be hugely influential in deciding who becomes the democrat's nominee to take on president trump. we're joined live from iowa. can you explain to us the significance of iowa and how likely it is that whoever wins at this specific caucus will go on ultimately to clinch the nomination >> reporter: good morning to you. all eyes are on iowa this morning with the seven candidates who want to take on president trump in november. these caucuses are very unique, though, compared to other primaries in the democratic party because people physically have to put themselves in a corner or behind a group that signifying they are behind a certain candidate. 7:00 tonight, voters will do that they will have one opportunity to then realign themselves, so

to speak those numbers, there will be three numbers, three numbers that go out. it could be a very tight -- it's a tight race there will be numbers that could be confusing, but in the end, different campaigns will use these numbers to spin it in their direction as they go on to the primary in new hampshire. >> talk about some of the actual names. if you look at the latest polling, it actually suggests a big swing in the favor of bernie sanders in the last couple of weeks. can you talk us through what the latest polling suggests and who is looking like the leading candidates at this point >> reporter: there is a tight race at the top of this democratic field we know that joe biden, bernie sanders, pete buttigieg as well as elizabeth warren are all kind of locked in those leading numbers. the other three candidates, both yang, steyer and klobuchar are a little further back at this

point. the top names on this list, though, have kind of gone back and forth. they've traded places. tonight is going to speak volumes of what will happen in the country moving forward. >> let's just talk about moving forward as well. once iowa is over, i think the next focus is going to be on new hampshire. how will today's results have any impact whatsoever on the upcoming new hampshire caucus, if at all, if anything is there any read through from iowa to new hampshire? >> reporter: oh, i think you could definitely start to look at how many -- what kind of support people have and is if there is any way you can move forward as far as financial and fund-raising after these iowa caucuses you'll probably leave here wit at least four or five people going to that new hampshire primary with a whole lot of support. like i said earlier, they're going to be three numbers that come out of this caucus and so

campaigns can spin it any way moving forward you're probably not going to have one official coming out of this you'll have more like three or four who had a strong showing here and you can spin it any way you'd like come next week. >> indeed. very critical 24 hours coming up and big week for u.s. politics in general with the senate trial, too yen wendy, thank you for your time. for more on the iowa caucuses and why they're more crucial this time than ever before, check out cnbc.com. coming up on "street signs," the impeachment trial could be over more quickly than anticipated. find out what's in store for the senate proegceedings this week robinhood believes now is the time to do money.

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the iowa caucus is just one of the big u.s. political events we're following this week. the other is president trump's impeachment trial. the u.s. senate is widely expected to acquit mr. trump of impeachment charges.

nbc's jennifer johnson has more. >> reporter: with president trump all but guaranteed an acquittal in the republican-controlled senate this week, a new nbc news/"wall street journal" poll shows americans still divided. 46% of registered voters say the president should be removed from office 49% say he shouldn't a majority believe he did abuse his power and obstructed congress the president lashing out as democrats in a pre-super bowl enter have you on fox. >> i see the hatred, i see the -- they don't care about fairness they don't care about lying. >> reporter: a key republican who voted against hearing from witnesses, including john bolton, admits the president did pressure ukraine's leader to investigate joe biden. >> i think it was wrong. inappropriate is the way i'd say, improper, crossing the line, and then the only question left is, who decides what to do about that >> reporter: leaving it up to voters that same poll shows president trump trailing biden, bernie

sanders, elizabeth warren and mayor pete buttigieg in an election more than 270 days away some fellow republicans are criticizing their senate colleagues former gop new jersey governor tweeting, not calling witnesses shows that republicans have lost any moral compass. shame on you there's never been an impeachment trial where witnesses weren't called. >> i still think it's enormously important that the president was impeached because the country is moving away from its democratic ideals. >> reporter: democrats say the truth will continue to come out. the president will give his state of the union address tuesday in the house that impeached him and then senators will vote to likely acquit him wednesday. jennifer johnson, nbc news, washington from u.s. politics back to the story we've been following very, very closely, coronavirus. we are getting more flashes out of the hong kong leader, carrie lam. this just a short while ago as she announced they would be suspending ten border crossings out of 13 with mainland china in

a bid to curb the virus. also now just recently she has also said that they admit to a shortage of masks and says it cannot be solved in a short period of time it appears as though people are scrambling to buy face masks in hong kong. that's something that's come up in this press conference that the hong kong leader, carrie lam, has been giving also further quotes from the leader saying they cannot rule out further measures if the situation evolves. here referring to shutting down some of the border crossings ten out of 13 have been shut down i want to bring to your attention one other comment she made, vis-a-vis the medical worker strike. there are hundreds of medical workers in hong kong currently on strike now. she said that strike is, quote, extremely mean and putting patients at risk so, those are the comments coming out of hong kong. more broadly, we've seen a very,

very decline for chinese markets. let me take you to some of the price action we've had there shanghai composite down 7.7% shenzhen composite down 8.5% this is opening following an extended lunar new year. it wasn't supposed to be this long some of the moves is a function of playing catch-up. since then we've had a policy response out of chinese authorities, out of the pboc, looking to inject liquidity back into the markets and warning this will only have a temporary impact on the overall economy. saying people should not be panicking at this point. but that is the picture for china markets. very, very heavy session, indeed, for some of those blue chip names as well as the tech names. switching to currency as well we are seeing a continued depreciation in the rmb. back through that seven level. you may recall going into the phase one trade agreement with the united states, we saw an appreciation of the chinese

currency back through 7, lower than 7 there was an understanding between the two sides that china would keep control of its currency and not allow it to deappreciate too much. in light of the economic data, we've had the selloff in equities and, of course, the pressure as seen by investors wi withdrawing their cash we' the yuan is about 1.2% weaker on the session. as for europe, the read through to europe is pretty mixed. we started off on more positive footing. you can see in the last half hour, the stoxx 600 has dipped now only treading on water the stoxx 600 is basically around flat. we're down around 0.8 percentage points in the last week. in terms of the sector that got hit the most, no surprise, really, we're talking basic

resources. today is another day where that sector, the miners, down anything from 0.8%age point to a percentage point some banks are in focus as well given the earnings coming out. speaking of the financial sector and of banks, i want to take you to julius baer shares once again, which are down north of 4% after the company announced fresh midterm targets and cost cuts after seeing that profit to shareholders drop in 2019. the swiss lender and wealth manager says it plans to lower its cost/income ratio as part of a three-year strategy to recoup. stay tuned for our interview with the ceo in half an hour's time with the ceo of julius baer shares in airasia have plunged more than 10% after the uk's serious fraud office alleged airbus paid $50 million in bribes to malaysian authorities.

authorities are investigating because the carrier says it never made any purchase decisions based on the planemaker's sponsorship fresh allegations came as the aerospace giant reached a $4 billion settlement we're not going to leave without talking about this the kansas city chiefs have won their first super bowl in 51 years after a heroic comeback over the 49ers quarterback patrick mahomes led his team that was your super bowl roundup. we didn't mention the j. lo/shakira halftime. you can watch that online.

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. it is 5:00 a.m. at cnbc global headquarters. here is your five at 5 -- in the red. chinese stocks sinking on their first day of trading in more than a week as that country's government works to stem the selling. this as the death toll rises and the infection rate rises for the coronavirus. over the weekend, more companies and governments taking action to halt that spread back home, stock futures looking to claw back some of friday's massive losses as another busy week of earnings season goes on.

and on the