like this happening again. that's all for this edition of "dateline." i'm natalie morales. thank you for watching. [music playing] good morning welcome to "street signs." i'm joumanna bercetche >> and i'm julianna tatelbaum. these are your headlines >> european equities join the relief as chinese losses rebound. but risk remain as the coronavirus death toll tops more than 420 and more than 20,000 cases are confirmed. bp with profit around 26%. telling us it is too early to

assess the impact of the virus outbreak >> coronavirus is really driving the price down of brent, that could take 300,000 to 500,000 down that could still leave it healthy. investors find fault with alphabet tesla enjoys a 20% spike with shares making their biggest one-day gain in six years. >> democratic candidates voice their outrage as results of the iowa caucus is delayed but pete buttigieg speaks out that he believes he is leading th

>> tonight a> i want to take yo marketce reaction we had it is a sharp contrast from 24 hours ago. yesterday, we had steep declines in the chinese index shanghai composite up. still hasn't fully recoup rated from monday when these indices were down about 8% and moving i the right direction. liquidity injection helped relief fears hang seng, you can see up about 1.2% worth mentioning that the first death on back of the coronavirus has been recorded overnight. clearly the market is keeping a

close eye on the virus and its effect and global economics as well europe again, this is in line with price action we had yesterday. it was a strong day for the stoxx 600. strong gains in the ftse up about 1.5% the dax up about 1% as well. we are getting some good moves in the chemicals and industrial names there. you can see the cac is also up a good momentum in the start of the session today much the sectors are rebounding nicely. this is the picture for u.s. futures. we had a good close for wall street again with the tech sector nasdaq leading the charge very, very strong performance in tesla. that stock up 20%. a weaker performance in

alphabet that is something the market will be watching out for yesterday, we had the strong manufacturing numbers which helped propel these numbers higher you can see going into the session later, you can see the numbers pointing higher. we are watching and closely waiting for the results of the iowa caucuses that has been delayed until the end of the session. a delay from the political side of things in the u.s hong kong has confirmed its first fatality from the coronavirus outbreak, the second death outside of mainland china. the overall death toll has risen to 427 the victim had a preexisting chronic illness and had visited wuhan in the last month. the chinese president xi

jinping has described this a test and has launched a people's war of prevention. >> the director general has repeated the recommendation that travel bans are unnecessary saying the chance of the virus going outside of china is very low. moody's says the coronavirus outbreak will hurt china economy by curbing consumption there could be significant fall in revenue and profit for several months despite concerns, moody's says beijing has the financial means to absorb the impact of the virus. let's get to our colleague who joins us from singapore. a rebound coming together, break down the detail for us what is happening. >> a much better day after the

8% selloff we see a lot of strong performances with the exception of new zealand the kospi up 1.8%. singapore stronger we saw gains for australia up about 0.4% central bank leaving rates on hold it was all about china and hong kong you have a nice rebound. we have some way of improving those. that market up 1.8%. despite the number of coronavirus cases. increasing to beyond 427 in the death toll we saw the hong kong market up by 1.2%. the first recorded case of a death in that city and outside

of mainland china. the hang seng moving higher. we did get retail sales numbers down more when it came volume as well we are seeing a fair bit of down side is the macao game stock this is to halt the spread of the virus with the ceo saying a shutdown might be necessary. they'll be meeting later today to discuss that. steep falls in the order of about 2% across this space one of the big sectors we were watching a better sector than yesterday back to you. central bankers are watching coronavirus. the president of the atlantic federal reserve says the threat of coronavirus has not changed his outlook for the year traders begin pricing in another

fed rate cut by the summer market jitters prompted by the illness. adding that last year's three cuts provided, quote, a lot of stimulus where the economy was making it more resilient. we have a look at the potential impact >> the coronavirus dominates the headlines, it's one of the major challenges that could depress growth in the first half of the year and markets believe could bring the fed back to play big down grades to the economy and the u.s. tariffs u.s. and the world face substantial even though some came off still manufacturing and global weakness some siegns of stabilization several fractions say it could

shave several tens off the gdp china's bank with a large liquidity injection and some believe the fed could cut as well ubs writes, quote, we believe that the softness will ultimately drive the fomc to call rates the growth of 0.6% in the u.s. this quarter and next. morgan stanley is more upbeat. they wrote, while the coronavirus does imply some downside, it does not derate recovery >> the bearish through for now with a 70% chance of a rate cut in september and now greater than 50% probability of a cut in september. switching to other corporate

news in europe op, bp posts a profit beat on the back of weaker oil and gas prices bp has completed $1.5 bill yan share buyback program. coming the final day of bob dudly's reign as ceo saying the spread of the coronavirus could cut oil demand >> what we are looking at now, it is about 1.3 million barrels a day. roughly what we've seen today. last year, was below 900,000 barrels a day. so actually 19 was quite a bit of destruction off the prices. this year, coming in around 1.2 million barrels a day.

we think coronavirus and what has happened the last few weeks, that could take 300,000 to 500,000 barrels down leaving demand healthy around 700,000 barrels a day. i think all roads will lead to what opec will do to rebalance the system to get back to $60 to $65 a barrel >> you've been around a long time >> lovely way of putting it. >> you are about to step away from the role. you've been there for a while. you were around for sars measures this time are different where you are seeing airlines not flying in and out and shut downs of major cities. are different are these from what we saw in 2003. >> what we saw then was a similar prompt reaction at the front end.

i think it is too soon to say what the actual outcome will be. if opec roll their cuts through to the end of the year, that will make up the balance that we can see today. we are going to squeeze in a quick break. coming up on "street signs," spelling an out. ouphabet unveils you tube and cld services we'll break down the numbers next try olay skin care. just one jar of micro-sculpting cream has the hydrating power of 5 jars of a prestige cream, which helps plump skin cells and visibly smooth wrinkles. while new olay retinol24... provides visibly smoother, brighter skin. for dramatic skincare results, try olay. and now receive 25% off your purchase at olay.com brand power. helping you buy better.

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welcome back to "street signs," alphabet shares has dropped after the tech company posted the slowest growth in five years missing estimates arjun, break it down for us. >> let's kick off with the top line numbers here on the eps front, alphabet beat with $15.35 versus $12.53 estimates. on the revenue number is where they missed expectations there were quite a few concerns

with this report in particular relating to this big section here that is around its advertising that's where we saw the slow down of growth even facebook when it came these numbers. youtube advertising where it made up to 12% of that ad total less than what the market was expecting. given the fact that alphabet and google have talked so much about how they've given out those numbers going into the report as well >> this is what really dragged on revenues including the hardware division. we saw significant slow down there. one of the big positives was google cloud revenues were up 53%

very strong growth amazon's cloud business was about four times the size of google a lot of catching up to do but promising that its growth is moving quickly we look toward this alphabet business a few head wins. one is regulation. facing the anti-trust probe around search and android mobil operating system platform. >> that will be a big head wind black cloud over this cloud in 2020 the big question is can this company return to the growth numbers we've seen in the past back to you. >> thank you for breaking down those alphabet numbers let me give you a teaser of what is to come tesla shares skyrocketed

the u.s. battery business, a key supplier posted the profit and jumped on the strong earnings. yesterday's move marked the biggest single-day move in the stock since 2013 started with a bullish call which hiked $$808. tesla shares are up. thanks to ramp up in production at the shanghai factory. italy's banks are preparing to sell off their high-risk debt capitalizing on demand for high-risk bonds. that is according to reuters they are expected to issue their cocoa bonds. expecting the cleanup efforts will be reflected in full year earnings which kick off today.

let's bring in our guest, head of fixed income. thank you for joining us this morning. let's pick up on the back of that story around the cocoa issuance expected to come from italian banks. we've seen a big appetite. do you think that's justified? >> it comes at the end of a long process of restructuring if you look at the exposure, they are in a much better shape. the sector has been in much better shape with exposure over the last three months. this morning, we saw an upgrade by the big american bank with he see a lot of people in the trend. economy is improving, regulatory

tightening is over but not going to get anymore negative than that we see a lot of factors. italy is one of the weakest nations in europe. so it is sometimes the weakest link in banking, we see a lot of improvement and there is a reason for the increased apr appetite for investors >> one of the key head winds but still growth is very lack luster in the italian economy is there reason to be bullish? >> growth has been zero the last six years or so. italian banks have learned how to survive they've been making money for

the last 10 years. so there is a way out. it has been expensive and a lot of money paid by share holders it wasn't a very good decade for bank investors in general. >> i remember when you made that call on "street signs. you came on very bullish you got a lot of push back so congratulations on your call. >> thank you >> i want to ask you going forward and to answer julianna's question on the consolidation side of things, are you expecting to see more this year out of italian banks and there would be smaller banks at this point? >> that's right. we will see consolidation.

on part of the two banks which is a strange animal, the rest saw $3 billion or less we are talking small caps. yes, we will see consolidation after the cleanup is over and will rule in the next few days we might see more movement there. but again, there is a big regulator push back. m&a in european banks is difficult and expensive. you will not only pay the price of the bank you are purchasing but also for the additional assets that is really a big hurdle for a lot of banks >> we'll leave it there. we have earnings to watch out for later for anyone following the sector stay tuned for that. head of fixed income

>> the bank of japan governor has warned that the impacts of the coronavirus on the japanese economy may be big thanks to presence in japan. another warning as we bring in the chief economists we had comments from moody's earlier which i thought were interesting. they were warning the outbreak will hurt consumption and have credit implications. i think that point is very, very interesting. many peopleare focused on the economic hit but let's not remember that china is a lot more indebited today >> absolutely. the coronavirus outbreak comes at a very bad time for china not only growth has slowed down significantly and they were struggling to get it going to even stabilize it but this year

was going to be the crunch time for trying to sort out china's very large bad dead problem on our estimates. credit are likely to amount to 20% of gdp so what we are seeing is much more severe shutdown, unprecedented shutdown for the province and wuhan in response to this. the impact will be much bigger than sars. >> have you put out a number do you have an estimate? many are saying we could end up with annualized growth of 4% first quarter. >> to answer this question, i have to tell you we've been calculating our growth numbers for china since 2005 we have our own way of seeing what growth is on our number, growth average,

quarterly analyzed just over 3% in the second half of last year. when we estimate what the impact will be like, even on the assumption that it will be a repeat of sars, which i think it will be worse, we could get into a technical recession in china >> according to your numbers, not the official publishing numbers? >> yes we found out, they tend to be more in line with the policy action than the flat lining official number no one believes. >> let's leave the economic impact aside for a moment. the chinese had some interesting comments and came out swinging against the united states for effectively closing their borders to people coming in from china. there have been reports from china asking for leniency when

it comes to pledges in the phase one trade deal how are you thinking about the political fall outfrom the coronavirus? >> i think the important question is to look at what is going on inside china. there certainly is a virus it certainly has raised some concern. what i observe is that the reaction in china originally to the threat of the virus given it is much more infectious. this viral outbreak would be a very opportune time. it is not helping china/u.s.

relations for a variety of reasons. we have a strategic, all-encompassing clash between aspiring power and existing power. >> thank you for that. also coming up on "street signs," confusion as results from the democratic caucus are delay delayed. we'll be live from iowa in a few moments.

welcome back to "street signs. i'm julianna tatelbaum >> and i'm joumanna bercetche. these are your headlines >> european equities joining the relief rally after a rebound risks remain as the coronavirus death toll tops 420 and more than 20,000 cases are confirmed. bp investors cheer a fourth quarter beat despite at profit

falling on crude prices. it is too early to assess the prices from the coronavirus outbreak >> coronavirus, that is driving the price down, that could take 300,000 to 500,000 barrels investors find the fault with alphabet. tesla enjoys a 20% spike with shares making their biggest one-day gain in six years. democratic are outraged with the delay of the results of the iowa caucus. the democratic party of iowa

says the results of its caucus will be released later today after a new reporting system led to serious delays in counting the result chair of the group said the issue was not due to a hack. adding the party is manually verifying the data to ensure accuracy joining us right in the heart of it all from iowa how much of a disaster is this >> quite a mess, i would say after all of the hype and leadup to the beginning of the 2020 election, this is certainly not the end any democrat here would have predicted it was a strange evening as the hours passed, the candidates and media waited for

those highly anticipated numbers. after several hours passed, senator amy klobuchar was the first to come out and declare her own victory. she announced full steam ahead with her campaign. all of the other candidates followed suit giving some sort of previctory, victory speech. meanwhile, you've got the state democratic party here cram belling. they came out and said they had found inconsistencies in the reporting and blaming the delay on this new app presecurities were using to relay the results. they are having to verify all of the votes the good old fashioned way. the old fashioned paper trail. legal council for the biden campaign sent a strong letter saying, quote, we expect a full

explanation of the quality control methods before the release of results they are hope rg that will happen at some point today in the meantime, all of the candidates here have gone on back to new hampshire for the primary that is starting there a week from today. back to you. >> thank you for that, wendy with the latest. the iowa caucus rounds out the political try fek kau unfolding in the u.s senators prepare to make their final case whether he should be convicted or acquitted in his impeachment trial. >> for the first time in the impeachment trial, senators are giving their take with all eyes on a few centrists like red

state democrat who he did introduce a measure to censure him. >> condemning his unacceptable behavior >> moderate republican lisa measu merkowski with this strong rebuke >> the president's behavior was shameful and wrong >> if you find that house has proved its case and still quote to acquit, your name will be tied to his with a cord of steel and for all of history >> president trump's lawyers urging senators to let voters decide his future. >> reject these articles of impeachment. it is the right thing for our country. the president has done nothing wrong.

>> with the republican party certain to acquit. the only question now is how many senators would cross party lines. more clues come tomorrow before casting their final votes into history. they had hoped to acquit one day earlier before the state of the union speech tomorrow night. let's get out to the head of political risk at ihs market i what to take you back to iowa. i inspect at some point today we'll get the results of the iowa caucus. do you think the leading four contenders talking about biden, warren, buttigieg and sanders, could be at risk or if it will be business as usual >> i think it will be interesting to see how this comes out. certainly like mayor pete, he was hoping for a big bump here

that gets muted a little bit because he will not have a big speech that comes out of this. i think he'll be okay. sanders will look at this. really the ones we are looking at is biden. it looks like we don't have any confirmed results right now. there is a possibility he'll finish fourth in new hampshire leading up to the next few primaries. not so great for him >> something to watch. i was interested to read that winner of the iowa caucus, only ends up with 41 votes out of the north of 1,900 needed overall. as a percentage, it is actually quite small. why is iowa so significant for the race is it all about momentum from here >> exactly the number of delegates here is

min scho small. it is the idea of getting their face in front of voters. they start to gain momentum. saying before with mayor pete, a lot of americans don't even know who he is, all of a sudden, he wins or comes in second and that propels him in new hampshire >> what many have described as chaos. how does this weigh on the party as a whole >> it doesn't look good. it is hard to argue. republicans will say, if you can't handle a caucus, how can you handle the government. i think they are going to take a short-term hit other issues will be in play most of the time, you look at

the campaign, it is a referendum on the president >> switching gears to the impeachment trial. the prevailing view is that prurm will be acquitted. they won't be surprised by that in the outcome here. they thought the process would be worth it. was it worth it for the democrats to go through this process? >> that's a great question ultimately at the end of the day, it looks as though donald trump's poll numbers went up through this process now they've gown down 1 to 2%. i don't know about the overall impact but it does make a difference the democrats felt compelled to do something to respect the wishes of their base maybe not so sure.

>> the flip side of that, what does it tell you about the state of the republican party? you only had two republican senators opt to bring in witnesses. has the republican party become a party of president trump >> for the moist part, we have found senators opposed to president trump have found themselves in his crosshairs they've found it better to be with the president it will be interesting to see what happens with the issue of censure. for the most part, as we have seen, this is really the party of trump >> we'll leave it there, john raines julianna will spell out how mark

e ets are fairing this morning >> in light of the events in the u.s. the iowa caucus, impeachment hearing and state of the union address later today, wall street higher nasdaq higher. we are in forex tended gains today with the dow looking at a triple-digit rise. more than 300 points we are looking at gains from wall street following a strong warning in europe. let's take a look at the major indices. the dax is up, the cac is up uk stocks, we are looking at green across the board here. this is from a rebound in china. difficult for mainland chinese stocks as investors woke up in

terms of trading today, it is a very, very different picture as investors pause for breath in europe, adding for modest gains. let's take a look at 4 x markets. the pound stabilizing. take a look at the euro. a slight bit of weakness but no change we are noting the dollar index advancing. nearly two hours into the session this morning also coming up on "street signs," disney is set to release the first earnings report since the launch of the streaming service. we'll preview the results in a few moments. ♪

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alphabet shares dipped after the tech giant posted slower than reported growth but beat on

the bottom line. josh lipton has more >> delivering a mixed report eps of $15.35 versus expectations of $12.53 the top line came in light $46.08 billion versus forecast of $46.94 billion. a quick call with reporters was asked about that top line risk and reasons for that challenges maybe investors and analysts didn't see coming she said, listen, they are happy with the growth and pleased with the cloud momentum she did note that hardware sold well over the holidays but was prepared for a stronger report and tough comps there. news in this report, they did make disclosures they broke out the search

business 17% there. very strong, she said rate of growth she broke out youtube ad revenues and their cloud business in 2019 telling reporters that ended with $10 billion annualized run rate and broke down cloud revenue for the quarter. their rivals in the cloud, amazon and microsoft they do not break out azure revenue but think they did about $4.8 billion we talk total costs and expenses where are they spending money. they continue to invest in long-term opportunities. we know one of those is cloud computing, hiring sales people, equipment and building out data centers.

tess lue shares skyrocketed on monday after the panasonic posted their largest property. tess lue shares are now up 300% since last summer. thanks to better than expected earnings and a ramp up of production at the shanghai production facility. we asked about the reasons behind tess lue's surge. >> we have published a report that says the evidence shows the opposite, ceos that embrace sustain blt now will optimize properties not going to happen overnight but they need to start now to secure the next decade >> we promised you arjun would be back with us. let's talk tesla now what has changed to justify this

rise >> a few things that have been going on first the q 4 earnings report. this is something share holders have been hoping for they would be able to deliver 500,000 cars this year as well the strong demand on the model x and s and the model 3 as well. there is also the china factor tesla began to assemble model 3s in china many feel they are scratching the surface in china right now >> at davos, we spoke to the ceo of volkswagen. he was saying they want to turn

the traditional car company into a tech company you look at these valuations and see tess lue has the valuation higher than any one of those carmakers, the german carmakers that have been in the industry years and years. you can understand why the pressure is on them. but at the end of the day, they produce a lot less cars. can those valuations be justified from a good standpoint >> i compared the tesla story to what happened in bitcoin a couple of years ago. more about the story people believe in bitcoin and think it is the future of money. many believe in tesla. it is not just about the cars but the technology that it brings with it being at the forefront of driverless cars.

val that tesla is a longer term story. the risk is that they have to justify this they are able to deliver sustainable growth that will be the challenge here. >> and that profitability is key. >> thank you for breaking it down for us. a busy day, busy week. we have a wealth of stories on tesla and elon musk on our website. find out why analysts have piled in to rise their price targets and how to get hired at the company. what factor won't hold you back. interesting, you want to check that out more on that coming up throughout the day

disney will be reporting quarterly aroundings saying they'll come in at about $20 milli $20 million compared to $15 million a quarter ago. this coming out the quarter that they launched the streaming service. investors want to get more color. the only number we can go on is that 10 million they managed to accumulate at the launch how much market share do you think they've actively gained? >> sure. our data from our consumer service showed there in q 4, 2019 in the u.s., there was a 12% weakening for disney plus.

that is directional. it gives guidance to where they are compared to netflix of 53% also twice as high as hbo now which is 6% in the same survey considering it is a new service come to market considering that this is a traditional media business transitioning to becoming a streaming service, it is a strong start >> they'll meet the expectations and announce that they will have 20 million subscribers i would be greatly surprised if that is not the case >> in terms of their other business, this has been their big push in direct to consumer and streaming that was anticipated. is there a risk of the traditional model.

abc, and traditional disney channel that people will turn those off and harm them some what >> yes and no. first, you are right the value proposition is compelling for a streaming option the price point of $4.99, the access to the robust library of content are appealing. that will have a negative impact on the more traditional soide of business but the reality is that the world is moving towards streaming. you can ignore that or recognize the need to adapt to where the market is going.

that is what disney are doing to their credit >> looking at one of the biggest head winds of today, the coronavirus. how big of an impact is this we've seen the disney china shut down >> disney is not immune to what is happening to businesses that have a strong china focus. this impact on disney for the greater china region has predated the current challenges. they announced the impact of the hong kong and the theme park

business a bigger driver of revenue of tv and the thread to the consumer that has an impact the reality is that this is a transitional thing >> thank you for joining us, cofounder and research director at midia research. our colleagues will speak with bob iger coming up at 22:00 cet tonight. that wraps up the show for us today i'm joumanna bercetche >> and i'm julianna tatelbaum. "worldwide exchange" is coming up next. [ fast-paced drumming ]

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it is 5:00 at cnbc global headquarters and this is your "five@5. investors shake off the growing threat of the coronavirus. to infinity and beyond, tesla shares are surging something they have not done since 2013 taking an entire sector on the ride >> delays in des moines as the first contest of the