that's all it mattered. that's all for this edition of "dateline." i'm natalie morales. thank you for watching. [music playing] welcome to "street signs." i'm joumanna bercetche >> and i'm julianna tatelbaum. these are your headlines another 65 coronavirus deaths push the fatalities towards 500. hong kong shuts two cruise terminals and putting visitors from the main land into quarantine >> missing a third quarter

forecast weak performance confirms the energy is right to spinoff the division chip makers on top of the forecast and confirming full-year guidance saying it is too early to tell how much the virus outbreak will impact earnings. >> in the market and providing liquidity. our business is very dynamic with he can manage that which comes in the short term like that >> america's blue chips take stock. shares plunge and the carmakers warn of virus-related shutdown disney says it will take a $75 million hit. >> in shanghai, the business has been very strong it is a shame we had to shut down but this is a big concern

to us as well. we have thousands of people that work for us in that area of the world. good morning again, everyone we welcome. the number one story we've been keeping track of is that of the death toll from the coronavirus. that has climbed now to 492. almost 25,000 cases have been confirmed globally the hong kong chief executive says the number of confirmed cases in the city has reached 21 lam has said any visitors from mainland china must visit the kwa quarantine fo quarantine for 14 days a number of business giants have commented as part of their

earnings releases. starting with siemens who says it is comfortable with the forecast despite the risk it possesses. moving on to abb saying they will likely see an impact given the significant presence in china which can is their second largest market worldwide disney has warned it will take $175 million hit after being forced to shut down the parks in hong kong and shanghai ford says it is too early to tell what the implications will be but the company is keeping a close eye on its supply chain. and nike says the epidemic will have a, quote, material impact on its china operations as it closed half of its stores in the country.

various companies coming out with announcements of how this is impacting their business and supply chains as well. >> a few more. french motor way and airline operator vinci says it is impossible to quantify the impact of the coronavirus on air traffic. the ceo of international airlines group believes the impact on global air travel demand will be marginal. american and united will suspend flights to hong kong following the first related virus death in the territory. in japan, 10 cases have been confirmed on a cruise ship there are 3,700 people on board. >> matt, can you tell us how markets are fairing today. it seems there is a relief rally despite as you mentioned still

more deaths from coronavirus >> absolutely right. despite the fact that there are more cases, another strong day again, on the back of the stabilization for the china markets. strong gains for the likes of japan up more than 1%. remember, we had a strong day yesterday coming off those highs around a third of one percent. the shanghai composite positive. another strong performance up by a quarter of one percent coming through from china to offset the coronavirus that could include cuts to the triple a. china may down grade the growth forecast in the spread of the virus. that death toll was at 490 there. we are seeing gains in the china

markets. that's why it is flowing through. mf macao gaming stocks with the likely closure of casinos that happened at midnight last night. that goes for casinos and theaters they would have been empty for the next little while anyway with no visitors so investors are actually positive that they are closing their doors for two weeks. a relief rally we are seeing across the asian market which have now shut up shop for this wednesday. >> let's check out european markets here this is some what of a weak

opening. optimism in the last 15 or 20 minutes perhaps surrounding the number of cases of coronavirus and the potential of coming up with a cure. this is something in early stages we are still investigating the the response out of various pharmaceutical companies we have seen significant turn around in sentiment. the ftse 100 up about half a percentage point cac up, germany leading up about 0.7 as well. we've seen good reaction particularly in the tech sector. the semiconductor company in germany up about 4%. strong hand joeover from the u.. there is green on the board too. i want to bring in the director

and cio of direct investment from our conversation, i get the sense that the community is split on the economic impact of the coronavirus. half of the people we talk to think this is a temporarily set back others think we'll see a more chronic, lasting impact not just on the chinese economy but the global economy because this time around, china really doesn't have the stimulus for their economy. >> i think the former of those i think that is the mainstream view is the one that makes the most sense very few of us are experts in epidemics or viruss. we have to look at numbers in the fact that there is a slow down in the number of cases and

is encouraging the market today. in terms of the stimulus, they have thrown a lot of money into the system this week we shouldn't underestimate the ability to do that i would argue that the chinese have been trying to avoid stimulating the economy towards the back end of last year. they probably do have room to do that >> how strong is the feedback loop if you look at what they've announced, they've announced 1.2 trillion yuan. will that make a difference to credit lending or is it just a means of stabilizing the markets? >> i think it is a means of stabilizing and in the short term until they can get back to

working normally you are seeing a lot of the economy that are shut down western companies and the impact this will have from theme parksa do downturnes sense these factories are still there. people will want to go back to work at that point, things will start to improve i think that is the mainstream view no question this has had a big impact you shut down the second largest economy in the world, a lot of it, that will have an impact for sure >> we also saw a reaction in the currency, a weakening in response to the liquidity injection. do you anticipate that weakness to persist

if it does, it is hard to ignore that in the contest of trade solutions between u.s. and china. >> i would think in the near term, common sense would be applied here as part of this attempt to get through the difficulty, you would have thought they would let that go. certainly, if they stay above seven to pick a number in a couple of month's time, then, yes, that brings up the currency manipulation there is one we are watching closely. in terms of the rally we've seen come together, how much of that is tied to rate expectations we saw rates adjust to price in more easing. to what extent does that support the markets here

>> i certainly think that is helping. we ended q4 thinking we were going to have this great reflation trade. now we are saying, hang on a minute, we need to see the fed come and actually cut rates as well as do liquidity injections on their own it probably means it is helpful for the market if you do start to see signs of the economy picking up, that has implications for the market and for the leadership that you finally get a rotation into the cyclical and value stocks. the market is probably going to carry on, i would argue, getting

narrower and narrower in terms of technology. we've seen some specific stock examples that it is getting extremely narrow i'm not sure how healthy that is but in the short term, that keeps the market going >> going from strength to strength bill, we'll pick up the conversation in the next segment. >> director and cio from waverton investment. you can tweet us directly to get involved in the conversation rseooming up, we'll speak to la c next. (janine) ghostbusters!...

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welcome back to "street signs. siemens shares reported lower than expected earnings also facing share holders amid protests associated with a coal

mine in australia. we'll go to moonic what is your take on the results and what is the scene like in term of the protests >> reporter: first of all, the results were kind of disappointing. especially if you look at the digital business which is more or less their future that was lower than expected also why the shares are dragged down lower all in all, the overall picture didn't look that bad profitability of all of the program return is not where they want to be the future of siemens is in a weak spot currently. i know as you were saying and it has emptied a bit but it was full of climate activists. moments ago, they started and

moved into the venue people are protesting against the involvement with that controversial mine project in australia. overall, there is a huge demand that corporate are starting to be more climate friendly you can see the beginning of a trend, if you want to have it like that. just remember the letter from larry fink of black rock was calling for more asg friendly investment and to only put money in companies that are actually friendly to the environment. that might be the first sign of share holder activist as we are seeing here taking place there is a lot of pressure where he has more or less mishandled that situation sayin look at th

of the project, we are talking about $18 million u.s. dollar. a lot of pressure. he said there might be some roads of distrust or mistrust because of the handling of that mine project and communication to all back to you. >> thank you for breaking it down for us. on to another swiss company today, abb has managed to beat expectations despite head winds in the automotive machine markets. posting a 3% rise helped by better margins the company expects the operation margin to show improvement in 2020, particularly elect indication business in health care, novo nordisk

expects slower growth. shares are higher this morning to the tune of about 2%. joining us now from no novo nordisk you are still looking for a slower growth rate does this come down to pricing pressure >> we have seen a strong momentum if you look at international race all geographies outside the u.s. grew we see a very strong growth. i'm very optimistic in how we came out of 2019 and momentum we'll have in 2020 where we'll

rollout the portfolio. i'm very optimistic for 2020 >> i just want to ask you something else you've introduced a tablet to offset the pressure. do you think that this is the way insulin is moving going forward to circumvent traditional pricing products like coming out with alternative products like these tablets? >> you are right we have patent windows where we can recoup our innovation. as you mention, this tablet is the first time ever to make a large molecule available in a tablet get it into the stomach and into

the blood to reduce blood glucose. this is a benefit for patients who are used to injecting themselves so that is breakthrough innovation for us. >> thank you for that detail interesting topic indeed esg has become an increasingly important topic. i'm curious in your space in health care where pricing is a massive issue. investors don't like to see the margin hit at the same time, it's clearly a social issue if people can't afford high drug prices. do you think your share holders look at the pricing from the perspective of esg >> yes important topic for us it is written into our by laws that we need to run our company based on being financial

sustainable, environmentally and socially sustainable in terms of our employees but also our patients we serve making sure we have affordable medicine is important. in the u.s., we have as of this january, launched an enhanced affordability program. so you can buy a month's worth of insulin for $99 we have an option where anyone in need can go in and get quickly access to insur to insun more needs to be done for those who fall through the cracks. it is one of the issues in the

u.s. presidential campaigns. >> sir, i have to ask you, being the ceo of one of the largest health care companies in the world, how are you monitoring the coronavirus and are you confident your peers or yourself can come up with a remedy? >> it is great to be in a industry where we can work on this we are not active in this space but i know my peers are. we focus now to ensure that patients that rely on products such as insulin will have access we have local manufacturing in china. we supply china from china we have enough inventory to do that the longer term future for the chinese is uncertain for all

in the short, medium term, we feel comfortable to be it for our patients >> thank you for your thoughts, sish the ceo of novo nordisk. bnp paribas rose over 28% to 1.85 billion euros let's get to charlotte it looks like they had a big quarter. big beat and good capital formation. tell us more why do you think the stock is not reacting well this morning >> reporter: you are right quarter-on quarter, it was beating forecast on revenues, it was up 11%

net profit up 28% at 1.85 euros. all was driven by the cib division up 62.5% even equities as well which has been struggling a little more. as i mentioned, positive effects in the three operating divisions. a three to one ratio they reached a 12% target for the first time they mentioned operating expenses up by 4% because of the impact of transformation costs there on track to meet the targets. as you have seen, they have d n downgraded the return for 2020 they say the revenue in domestic markets should decrease in 2020.

the domestic market make about a third of their revenues. the lower interest rate are being difficult to navigate. we talked about the french business take a listen. >> there is a good business drive. that's what we see all the other things are there and are to be managed. the main point is the low interest rate. that is the one we are to continue to address focusing more on fees and the cross overwith auto parts with the group. >> do you see this starting to affect the top line for the business or when do you see it start to move in >> we are very pleased with the collaboration we have. the phasing in of these takes

time normally, one would assume this will be up to steam in 2021. we are very pleased with how the interaction is going >> that was the cfo, the first french bank to report earnings we'll have more reporting tomorrow morning we'll see how the investment banking industry is doing with a strong fourth quarter. a bit more caution on the domestic markets >> thank you for the break down. stay with us coming on "street signs" with myself and julianna and the ceo of waiverton and we'll hear from infinton ceo in a few moments

welcome back to "street signs. i'm julianna tatelbaum >> and i'm joumanna bercetche. these are your headlines stocks are higher after several indications of progress fighting the coronavirus

a british scientist says he's made a breakthrough with the vaccine. and ford warns of virus-related shut down. disney will take a $175 million hit. >> in shanghai, business has been really strong it is a shame we had to shut down but obviously, this is a big concern. siemens shares slide with a 30% drop in operating profit the ceo says weak performance at its energy unit confirms the company is ripe to spin off the division a snubbed handshake and

torn-up speak as the u.s. leader spoke about growth in a campaign-style speech. >> his my election, the stock market has soared, transcending anything anyone believed was possible this was a record. let's take a look at what we are in for in terms of the u.s. market open. wall street had a strong day yesterday. s&p, dow and nasdaq all rallying that tech-heavy nasdaq rallying. look at the board at another positive start the dow looking at a triple digit rise at the open no doubt, the indication that we are on the brink of a breakthrough of a remedy for the

coronavirus perhaps recording sentiment. take a look at the european market the cac is up, the dax is up we are looking at gains across the board there. the support coming in part from the significant breakthrough that is reportedly in the works in terms of a vaccine for coronavirus. we've got a number of corporate earnings in focus which have provided a boost as well let's take a look at the different sectors. travel and leisure really strong there. 1.9% higher. within that, airlines are trading 4% higher. iag almost 5%. seeing a strong price action in airlines space basic resources, the china-affected sector is up. infinion is trading on top

the german chip maker reported revenue that met forecast during what is traditionally seen as a weak first quarter segment margin rose by over 15%. they said it expects to complete the $10 billion acquisition. the ceo spoke about the coronavirus damage >> it is one sight overlaid by the chinese new year on the other side, we do not know when business is coming back to work we expect none of the companies will reemerge on the 10th.

we don't know how this detail will be. we see that china will be issued across the market to provide liquidity. one push over the other. >> could it have an impact on your business going forward? >> it could have we are prepared on the other side where business is very dynamic. it comes on the short term like that we do not expect it will have a long-term effect >> also said he expects innovation in auto space to focus more on self--driving rather than elect indication >> we do not expect the growth in number of cars throughout the year we put our growth on three major factors.

there are two drivers. the driver assistance and the elect indication of the drive train. normally we say 50% comes from general and 50% from the other two. especially the assistant driver systems are things that are currently strong interestingly enough, electrification are weak we have seen this dropping significantly. that is not kicking in so strongly yet >> when are you expecting that to kick in the whole world is talking about the electrified future >> we believe it is coming europe depends on the spending behavior we have not seen the perspective. due to the regulation, we expect

that in the second half year, effective to the end market, we will see more significant demand coming up, which will effect us earlier. we expect it to be a step and not to forget china is still the biggest bucket and europe has to catch up with that tesla continues the market rise shares jumped nearly 14% in yesterday's session on top of a near 20% rise the day before the biggest one-day rally in six years. the move came on the back of a number of upgrades elon musk's stake is now worth $30 billion. ceo rod baron is bullish and says the automaker has the potential to make $1 trillion in revenue. >> this year, tesla will do have

the potential of $1 trillion in 10 years you are looking at the very start. this could be one of the largest companies in the whole world >> meanwhile, shares of shrank after suffering 1.7 billion net loss in the fourth quarter the cfo added it does not include the potential impact of the coronavirus. they are undergoing a massive overall taking half of a total of $1 billion on charges they expected to take looking to media, disney streaming service was overshadowed by its guidance monther than 28 million users

signed up helping quarterly earnings beat forecast amid strong demand for the star wars fran chie franchise. disney has seen parks business hit with the hong kong coronavirus outbreak speaking about the impact the company is already feeling >> at this point, our parks in hong kong and shanghai are shut down and we don't know for how long without knowing how long, it is difficult to tell. we are saying something about the parks business in hong kong because what is going on on the ground in hong kong has had an impact and had an impact in the quarter. in shanghai, the business there has been really strong it is a shame we had to shut down but obviously, this is a big concern. we have thousands of people that

work for us. we have concerns for them and for the world and the people of china, of course it is hard to be very specific without knowing how long this could last >> arjun joins us with more. bill is still with us as well. yesterday, we had an analyst come on and said expectations for total subscribers in disney plus is 20 million we got 21 million paying subscribers and yet the market is still not happy what is it that didn't satisfy investor appetites here? >> a couple of other things. disney had guided that in 2024, they would have 60 million subscribers. there wasn't much guidance there is a concern over the coronavirus. there is a real economic impact

this quarter expecting a $175 billion hit. they had to shut the park in shanghai and hong kong it's unclear when this coronavirus situation clears up. for now, that was a real concern and uncertainty going forward. >> interesting to see in the last couple of days, you are seeing investors pick on other companies in a hit to the business disney is one, ford is another one. early on, you were telling us that aside, this type of market, we should see the proper outperformance going forward >> if you are going to get a rebound, yes if the extra stimulus provided in china and the u.s. to get through this slow period, if that could lead to a really powerful snap back and if

investors start to see that as a signal, we'll get stronger growth and have a rotation in the market you could start to see some of those value stocks get better. it is too early to say if that will happen but is one potential outcome. >> if you look at the market more broadly, where do you see opportunity here it is more attractive than the u.s. trading 15 times versus in the u.s. at 18 times both are pretty lofty. >> we have looked at europe from a top down perspective if you start to see a pick up in growth, particularly if china recovers from this that will be positive to how global investors look at europe. that will be the play on china

i think at the moment, that will probably be the focus that will drive the market higher. there is a valuation discount and certain areas within europe where you would expect to see a lot of world class companies you would expect to see them do better you tend to get that cyclical strength >> thank you for weighing in arjun, thank you for breaking down the numbers for us. a push in south africa has helped voda fone rising 0.8% and core earnings of up to 15 billion euros. v t ceo said the group remained challenging. and danske bank shares remains lower.

a number of authorities of the branch adding that the timing of the outcome is uncertain they expect lower profit as they reported a net profit of 500 danish krono stay tuned for more from them. coming up, president trump talks up the economy as he delivers a state of the union address overshadowed bipartisan politics stay with us do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere.

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welcome back well pete buttigieg has taken an early lead after delayed results from the iowa caucus put him out in front of his rivals

he managed to ink out a slim lead over bernie sanders elizabeth warren secured the third spot with former vice president joe biden rounding out a disappointing performance in fourth place also in washington, president trump seemed to revel in the disarray calling the delay a mitigated disaster he addressed the country in his state of the union touting successes claiming a reversal of quote, universal decline he avoided the subject of impeachment all together and focused on success including the recent trade deal. >> one of the biggest promises i made to the american people was to relace the disaterous nafta

trade deal in fact, unfair trade is probably one of the biggest reasons i decided to run for president. i promised to impose tariffs for decades, china has taken advantage of the united states now we have changed that at the same time, we have perhaps the best relationship we have ever had with china including president xi they respect what we've done because they could never really believe they were able to get away with what they were doing year after year, decade, after decade without someone in our country stepping up and saying that's enough. >> the u.s. leader also chalked up economic pir form ans as the

major theme of the address >> the years of economic decay are over the days of our country being used, taken advantage of and even scored by other nations are long behind us since my election, u.s. stock markets have soared 70% adding more than $12 trillion to our nation's wedalth, transcending anything anyone has done this is something the world looks up to and admire >> tensions between trump and house speaker boiled over. he decline canned to shake her hand when she tore up his speech the house speaker hit back by

ripping up her copy of his speech behind her back pelosi said tearing the speech up was the courteous thing to do saying the hatred of the u.s. leader blinded her to the repulsive behavior getting back to our guest. pretty dramatic events yesterday, the events with the state of the union, impeachment trial and the iowa caucus. how much does all of this mean to you >> in the market, they think this is helping donald trump

he was probably right on enthusiasm of what the stock market has done. from that point of view, it is understandable it was a good day given the debacle in iowa. >> saying as long as it is the trump/buttigieg race, if it is sanders or warren, that changes. >> i think that is right the only other person who had a good day yesterday is mike bloomberg by not being in iowa bloomberg is in the race partly because he thinks that traditional moderate wing of the party is not being well served by the mayor or joe biden. yesterday was a good day for the mayor.

it is one he has to follow up on i think bloomberg is in the mix here if it is between bloomberg and trump and buttigieg and trump, you are right. sanders has a lot of money, a lot of supporters. he's probably going to win new hampshire. he's going to be in the race for a while. at some point, could cause a little concern in the market the party feels as though sanders was out dodone in 2016 the rules helped with the caucus he's in for the long haul. >> i want to bring it back to the u.s. economy

certainly, there is one indicator that is boding to the signs of a recession all of these traditional metrics, should we brush them off now. >> i think that is pronounced and the expectations of where short-term interest rates are going. they've shifted in terms of the fed funds future market which looks at the expectations. now a 97% cut by july. that is a big shift from where we were a month ago. there probably is some pressure to help keep things moving along. the other thing is the profit outlook. the other indicator is the

national income profitability. profit in cash not just made from the s&p 500 but by the tens of thousands private companies in the united states those companies peeked five years ago. you need to see a pick up in profitability. we need to see profits picking up to justify the stock market and to keep the economy. at some point, the labor market has weakened >> thank you, director and cio of waiverton investment management that is it for "street signs." i'm joumanna bercetche >> and i'm julianna tatelbaum. "worldwide exchange" is up next.

it is 5:00 at cnbc here is your "five@5." we are on record watch stocks regaining lost ground as the risk on trade is back in vogue. wuhan warning. a growing list of companies sounding the alarm over the coronavirus and risk to their bottom lines >> slamming on the brakes. shares of ford take a nose dive. a sobering tone with some investors. te