r this edition of "dateline." i'm natalie morales. thank you for watching. [theme music] good morning welcome to "street signs." i'm joumanna bercetche >> and i'm julianna tatelbaum. these are your headlines a valentines day gift for investors. the stoxx 600 hits a record high after china surprises the market with a plan to cut tariffs on u.s. goods mixed performances for u.s. banks as they contend with negative interest rates. unicredit's loss not what they

expected >> we have to allege down the road and find our way back what we expect for this year, this is our guidance to maintain towards the issue. nokia cheers investors as they swing to a profit in the fourth quarter but chip maker qualcomm warns about the coronavirus disrupting the phone industry >> industrial orders in germany sink in december falling over 2% ecb president says the eurozone economy are showing signs of stabilization. good morning the number one story we are following. china has announced a surprise

cut in tariffs on u.s. goods beijing has said thousands of goods will be cut in half effective on valentines 14 the chinese yuan has jumped to a two-week high. we have come in from around that level we have been discussion. not a lot but still, it does tell you we have pulling back from some of those weaker 4re levels and from the scare of the onslaught of the coronavirus with the announcement that china will be cutting tariffs on u.s. goods. looking at the markets overnight, a lot of green on the wall here after yesterday's stronger session

we haven't quite rekrcoup rated the losses we are moving in that direction. certainly after the pboc liquidity, announcements overnight and unconfirmed reports, we are seeing stabilization. you can see the more active tech traded index is up hang seng in hong kong up 2.6% some specific names interesting to look at, some consumer goods products really soaring overnight on reports that there has been a scramble to get consumer goods from super markets. really interesting secondary effects being priced into the market in hong kong, you can see a

sweet of green, the nikkei up, the australisie up 1%. the kospi up nicely in the green. all of this has meant a nice handover for the european markets. ftse 100 back up above 7,500 up 20 points or 0.03% higher cac is up 0.6% renault in france up 4%. they have their earnings next week a strong performance in autos and auto parts this morning. the central dax seeing good gains. they've had very weak new orders come through

dropping 2.1% month-to-month in december so it is still pointing to a heavy manufacturing back drop despite the positive sentiment we are seeing. let me take you to one sector we are focused on basic resources has been closely interlinked. the focus today in europe up about 0.3% point down a little bit. let's not forget despite the positive news on the tariff side of things, there is still a lot of question marks about demand going forward. that has hit the demand for oil, we've been watching that as well looking at luxury names in france, kering down 0.02 other names are doing better today.

a mixed bag but generally the sectors that have some form of exposure are rebounding nicely overnight. >> thank you for the market update let's get out to ken wong on the phone joining us from singapore. it looks as though investors have taken a surprise move to cut tariffs on moves on valentines day what is your read here how much is this going to boost investor sentiment and how good is this? >> caller: we think overall, the chinese government will have to provide stimulus and back loglo. we think the first quarter gdp will go down to about 4% we expect to see recovery as we

approach the second quarter and on a lot of these specific policies that will be implemented going forward will really help especially on that side. there is a lot of sectors in china which is really impacted by now as a result of the coronavirus. >> on that note, should we think about this as a direct reaction. it has just come about three weeks after that trade truce >> yes, it will be part of it. i would expect to see different types of the stimulus implemented over the coming months in order to really see and prop up the economic growth the full year are we expecting to see the 6% gdp in china not likely

in order to reach that 5%, we are going to need to see quite a bit of improvement in terms of the economic activity as we approach the second quarter. china has been affected during the chinese new year holiday period, which normally counts for 10% of the quarter as a result of that period during last week, without activity there, there is a lot of ground for the various chinese to make out for that consumption during the first couple of weeks these last couple of weeks in particular. >> very clear on what you think will happen, i want to ask you, taking it back to phase one trade deal what do the announcements overnight mean for china's ability to reach those pledges a couple of weeks ago, saying it

is a bit of a stretch for china to begin with to cut goods by $200 billion back to the coronavirus, consumption getting hit, what does that mean do you think that will be problematic for u.s./china relations? >> caller: because of what is going on in china, expect it to slow down heavily. china has a lot more involvement in terms of their commitment with the u.s if there were going to be anything changing in terms of the commitment and so forth, that could have a bit of a backlash and have an impact between u.s. and china as a result, that is one of the reasons why we have had expected

especially more recently with china following through with commitments. in terms of what china is trying do this year >> can i ask you how you are playing this we've seen the rebound overnight. aussie has appreciated some what do you have a preference whether you are playing this in the commodities rebound? >> caller: we are looking for opportunities within the equity space, to be honest with you when we look at it and given the recent slow down, a lot of consumers especially the discretionary side has been hit as a result of the coronavirus we have seen the opportunities looking at the various sectors looking at macao where they are

closed the next two weeks. a lot of that has been priced in already. there was very little that would go into account anyway during this period. so having close yours of the casinos have a lot of that negative priced in we are starting to see a bit of a correction now and price recovery from the macao stock. those discretionary stocks that could see benefits over the coming months in china westart to see more policies stimulated and help stimulate the consumption growth in china in coming quarters ahead >> so ken, very clear then in the buying opportunity ken wong the death toll from the coronavirus has surged past 500

after a report of 73 new fatalities linked to the outbreak the number affected stands at 28,000 in japan, it is confirmed that 20 people on a cruise ship have tested positive. with 3,700 passengers and crew a cruise ship in hong kong has also been quarantined with three people infected as well. travel in china has plonged according to hopper. finding that prices for round trips have surged as well. a host of international corporates have warned about the impact of the coronavirus outbreak on their businesses a number have shut production

and others have closed stoors. we have siemens, qualcomm, disney tesla dips by more than 17%. after the electric carmaker said vehicle deliveries will be delayed due to the coronavirus outbreak meanwhile, a downgrade from a hold to a buy saying investors should way to purchase the stock. tesla shares accelerated by more than 20% on monday and more than 13% on tuesday volvo cars posted an 18% rise thanks to lower costs and increased sales that helped offset also recorded a 10% rise in 2019 as they got a boost from a strong performance in china and

u.s. suvs also did well outlining the impact of the coronavirus on his company >> it is basically a stand still. we have the normal shutdown for the new year right now, that is prolonged very few people out in shops, in streets and no one in factories, offices or businesses. everyone is staying home and avoiding crowds of people. all together, no cars sold no cars produced it will be a stand still around two weeks more than was planned. coming up on "street signs," reporting a rise of key capital ratio and looses reference to 2020 profitability target. we'll go to paris to break down the numbers after this break

at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond.

welcome back to the show sluggish demand saw growth over the summer remaining subdued with the coronaviru coronavirus, ongoing trade tensions ecb president says there are signs of growth. >> weighing on area growth to be sure, there are tentative signs of stabilization indicators have become slightly more optimistic as approaching on manufacturing business expectations have increased in five consecutive months through january on the highest levels in

18 months. >> trading higher after it beat fourth quarter revenue and boosted loan growth. so big spike today up 3.7% happy to say the ceo of the bank joins us down the line thank you for joining us this morning. i want to go back and ask you about the dividend policy. you have proposed a dividend of one euro i'm surprised that given the year 2019, your profits were only up 2% >> caller: good morning. thank you for having us. let me share the thoughts to your question but before that, i think we had a very good development in underlying business

we had sold last year the core banking activities in poland if you compare like to like this is a positive development which is not fully scene if we look at the numbers. the profit that we have is nice. one might even say there could be more. the dividend policy is in range of 20% to 50% of the income. we have also a very good ratio of 14% nevertheless, there is some good

consolidation to the market and we want to keep some capital reserves to be in the position to look at upcoming mergers. >> just to look at our point on the income, both high double digit numbers. those are numbers your competitors will be looking at very closely part of that, because you are able to generate those type of returns. are you worried about competition and the fact that other eurozone banks have been pushed down and others may be looking to further expansion into eastern europe as well now. >> we have quite a lot of competition in the markets i do not expect the newcomer will approach the market in our case, because the

portfolio we have. in the countries, the bank rate is at 2% or in the eastern markets substantially higher this makes banking more pleasant you've had a long-standing presence in russia where they are tied to the oil price where you have seen the price of oil drop how correlated is your portfolio in russia? is this a risk you are looking at for 2020? >> no. not at all we would consider the price for oil export is different than one might have expected. the biggest part of the price

volatility goes to the state anyhow i have to add to that, the big oil companies don't really need financing from banks like us we have built in the last couple of years a strong retail business the demand is very good and credit is really good. i feel we are less dependent on oil than one might expect. >> thank you for that. t . ing has posted a profit of $1.34 billion euros. increasing regulatory expenses their cfo said cost discipline

and diversification away helped offset those pressures >> the big drag is the negative interest rate in some of our markets like the netherlands, belgium and germany. we have across asset classes we have seen a change of asset mix where we are more consumer loans. we have seen diversification away from the eurozone into central europe, asia and other parts of the world where the interest curve remains positive. >> italy's biggest bank unicredit with a swungoff loss they are considering raising capital distribution to share holders to 50% of profits this

year elsewhere, societe generale boosted capital from asset sales. france's third largest bank also stated a new plan for share buybacks for 2020. they did drop any reference for the previous market and return on equity. >> to charlotte, capital has been an issue. i see they've made good progress and the potential for share buybacks give us some information on the quarter. >> reporter: that's right, they are trying to calm the fears of investors and that they are making a healthy balance sheet

there. you mentioned, the ratio there at 12% here going up. that was way above the target of 12% there. also at 50% payout ratio again, something to give the investors. they've announced the big overall investment banking over the year, cutting the jobs and you see it starting with the company saying in mixed income, revenues up as well as equities. they are making real progress, improving there. that's why the stock market is up this morning. they have positive shows in q 4. as you mentioned retail equity

was at 6.2%. way below the previous target that reiterated for 2020 that comes on the back of the competitor downgrading the equity target. the lower interest rate on the domestic business. i caught up with the deputy ceo and we talked about the monetary policy and whether he was hoping for a freeze while it was carrying on. take a listen. >> we would see the normalization but the consensus is that it will continue we need to be here at stake. so it is what we see so down the road, specific measures mitigate some part of

this policy. >> will you pass on negative rates to customers >> we already do for institutional clients. we have to debate for individuals. at some point, it will continue in the markets but we are sure it will never be done for the specific segments >> the deputy there talking about the low interest rate environment. i asked him about the reports that they have started its hunt for successor as a new ceo asking whether he was in the

race. >> as that is ready and clear. we have been concerned and we'll see what will be decide. >> the deputy ceo. their stock today in the green showing an improvement in their operating trends and sending the stock higher >> some positive results today for them a good performance in investment banking for the fourth quarter coming up, the spread of coronavirus has raised fears about the impact on oil demand opec officials are struggling to agree on a rpoe.esns details after the break.

well wicome back to "street signs. these are your headlines >> a valentines day gift

record high building on stock rallies in asia after china surprises the market with a plan to cut tariffs on u.s. goods mixed performances for u. banks. loss not as deep as expected but drops a key profitability target >> we have to allege down the road for the impact. what we expect this year on the key of 20% nokia cheers investors as they swing to a profit in the fourth quarter warning about the coronavirus disrupting the phone industry. orders dink in december as the economy is showing signs of

stabilization. >> indicators have become slightly more optimistic as the approach on manufacturing business expectations in 12 months time have increased in five consecutive months. >> markets have been in firm risk on mode in the last 24 hours seeing a boost and decline in energy markets as well. this is the picture this morning. we have brent back up. wti at 50 now. 51.40 is where we are at 1.3% stronger. for the year, wti is still down about 17%. we are still down about 20% from the highs we got to in january so we have seen a turnaround the last two days.

the second positive day in a row coming from the steep, steep declines since the big hit from the coronavirus. that is the big picture from the oil progress some of the companies here, for the most part, we are trading positive total is one we are seeing well taken by the markets that stock is up about 1.7%. despite them saying that the coronavirus could lead to a decrease of oil demand to 1 many ill -- 1 million barrels a day. net income remains stable despite falling crude prices total forecasts 2% to 4% oil production growth in 2020. an opec meeting will extend

to the fourth day as members disagree over the need for production cuts. in the response to the outbreak and impact on global growth. could take further action closely followed the market. >> great to speak with you we have the joint technical committee meeting right now to discuss this very issue. as a result, the expectations that they will cut further when

this recommendation goes further. we have oil prices on the back of this. the size of the cut suggested is in the order of about 500,000 barrels. we've had calls earlier that opec might blow the roof off here and go deeper than that one suggestion is that we'll see cuts about 1 million barrels plus and here weighing in on what needs to be done as a result of the loss from the coronavirus. >> i think about 500,000 barrels a day. i think if china is successful in containing the virus by march, then we estimate the demand to decline in china by 440,000 barrels a day year on year but there are ripple effects on other asian markets

that will likely flip into the negative territory in the first quarter. we'll see demand disruption likely that is the best case sken orrio if we assume the containment by early march. as y as. >> the demand we have seen has sent oil prices down double digits throughout the course of january. we have seen oil recovering from those recent lows. still nowhere near what it was at the end of last year. this technical committee will

likely see this cut. saudi arabia will be pushing to ensure this cut goes ahead russia has been more reserved preferring to extend the deal beyond the march deadline and over deepening cuts further. all of this leading to not much clarity to the oil market over the next couple of days. this is important to watch as they trickle out from the meeting later on today >> thank you for breaking it down for us. now, let's bring in the senior director to give us more insight on the energy markets. thank you for being with us this morning. even without the coronavirus, we are looking at oil markets being

very well supplied the demand destruction there with this outbreak >> opec needs to act this is what is pushing prices down the market expects opec to act and so prices may go down further. >> in terms of the impact you are estimating from the coronavirus, china accounts for 15% of global oil production and 70% is from the opec countries what are you estimating in terms of oil production. >> if we are talking about february, it could be as bad as a couple of million barrels per day of loss demand

talking in context of the full year, it could be up to several hundred thousand barrels per day which is pretty significant taken into account for the growth for the oil market was about 1.3 million oil barrels a day. >> what does that mean for phase one talks? one element was that china would pledge to buy up to $50 billion more of energy products from the u.s. and crude and other products it seems like they'll not be able to reach those targets. especially as you mentioned, the demand for this oil will subside in the next coming months leading to a surprise back home. >> certainly the things with this coronavirus situation could result in some kind of easing in relations

between china and u.s. i hope that countries will take into account the situation >> looking at the price of oil and following it closely started the year off with maximum geopolitical risk. do you think where the price of oil is right now accounts for both variables or is the market too pessimistic? >> i think there is a chance that the brent price in the range for the next several months i think at that level now, it needs prices in excess of 80 to balance the budgets

the second reason is responsiveness for u.s. shale production if oil prices fall below for some period of time, we will see the decreased activity still growing and will balance the market >> thank you for joining us today. shares in assa abloy are in the red the world's biggest lock and door maker added that biggest challenging area is britain. supply factories in china reopen next week. we'll go to our guest, the ceo i want to pick up on your

comments, vis-a-vis the uk >> caller: yes good morning it is related to all the uncertainty around brexit and what this will mean for the people in the uk, yes. >> it seems that you are still pointing to further uncertainties ahead. a lot of people are saying, look, with the relaxing of tensions, things look clear, you are beginning to see a pick up in momentum from a macro back drop and trading back drop, the outcome will be more positive this year. >> in the talks specifically about the uk, it is too early.

that will be clear on the conditions of brexit talking more in general about the world economy. we are late in the construction cycle. people early there will see that uptick early that's not the case for us >> talking about the fears you already were seeing the impact from that negative impact give us a sense of the impact you expect to see from the coronavirus. >> we are demanding the new strategy happy with the progress and you make that. we are more selective on which order we make for that margin.

there is a good chance for what we aim for that is a positive effect on margins. that is more where we will see midterm the full positive impact when it comes to coronavirus, i would say that is indeed open again beginning of next year the impact for the rest of the world given what we know today it has a negative effect on the local market where that has stand still the whole january. >> i want to ask, your share price reaction today has been disappointing. down more than 4%. what do you think investors are

missing? what should reassure them this is an equity story they should be buying into for 2020? >> ip investors should look at 2019 we believe we have a good year for solid organic growth that would be a record bottom line and cash flow 2019 was a very good year and we are working hard for 2020 another successful year. >> thank you for joining us this morning. don't go anywhere. we are going to shake a short break. the u.s. senate acquit president trump but not all republicans were on the same page. ♪

introducing a razor that works differently. the gillette skinguard has a guard between the blades that helps protect skin. the gillette skinguard.

welcome back to "street signs. president trump has officially been acquitted in the senate impeachment trial bringing the process to its anticipated end senators voted mostly along party lines. with one dissenter mitt romney arguing trump is guilty of an appalling abuse of the public trust tracie potts live from washington thanks for being with us talk us through the key implications of this decision to acquit president trump surely it emboldens him to continue pursuing his own interests. >> absolutely. his chief interest right now is

to be reelected. he becomes the first american president ever to be impeached and acquitted and seeking reelection we'll hear from the president in a few hours. it does give him momentum to go into the voting process this year leading up to the elections. him and mitt romney have a history. at one point, he considere romney for his team. romney ended up in congress and they have been at odds on issues ever since romney said he voted his conscience this emboldens the president and

the party. aside from mitt romney how this plays out for democrats, this is a huge loss for him. they have tried remove this president from office. now they have to regroup how do they deal with this in a way that doesn't hurt them politically? how do they move forward do they drop this or continue to try to push for invest gating the president's finances, taxes, conflict of interest and we are hearing for a subpoena for john bolton who never testified >> thank you for breaking it down for us. the u.s. trade deficit fell for the first time in six years in 2019 as the trump administration's trade war with china curbed imports but also weighed on exports falling to 1.7% to around $617

billion. the u.s. trade deficit with china was down nearly 18% compared to the year before. >> a pick up in service data saw the dollar hit a two-month high. the index for january came in at 55.5 following a return to expansion for u.s. manufacturing u.s. is expected to release latest payroll figures for january tomorrow a closely watched data point we'll be looking at tomorrow the president of the san francisco fed mary daily said the u.s. economy is in a strong position to any future storms or the spread of the coronavirus. >> we have taken last year three rate cuts that put accommodation into the system that made me --

i was supportive of those cuts that put our economy in a good position to weather the storm. if it gets worse or other things emerge, that could change the equation right now, putting the u.s. economy in a good place. >> bringing you news from air france who have come out and commented on the flight situation to china they have been working closely with national and international health authorities they've decided to extend suspending services to march 15, 2020 resuming air france flights to wuhan is scheduled for 29th of march, 2020. normal flight schedule will be resumed from march 29, 2020.

>> this is the first airline announcing resuming flights. so actually putting a number down >> that is a long time away. >> and continuing to monitor the situation. that is the announcement from air france >> a look at u.s. futures before we head out. you can see all the three majors are again higher this follows from yesterday's strong performance as well strong data and more to watch out for tomorrow that is it for "street signs" today. >> i'm joumanna bercetche. >> and i'm julianna tatelbaum. "worldwide exchange" is coming up next.

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

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

it is 5:00 at cnbc here is your "five@5." can nothing keep this market down china slashing tariffs on billions of dollars of u.s. imports sending asia surging tesla, another wild ride talk about a sleepy reception bauking at the public startup. and forget bitcoin some bankers are calling