[music playing] that's all for this edition of "dateline." i'm natalie morales. thank you for watching. [music playing] welcome to "street signs." i'll willem marx >> and i'm julianna tatelbaum. these are your headlines the stoxx 600 hits a record high rally to the top of the german market offsetting boeing delays and concerns about the coronavirus. seeing the bright side daimler shares rallied we hear from the ceo later on

kansas and monday claire shares resume trading after sharper numbers in china plunge 80% amid the coronavirus outbreak and deutsche telecom shares surge when a judge confirms the merger between sprint and viacom the move expected to be announced today. as you can see behind me, european markets have started out on strong footing. green across the board we are seeing some of these stronger gains from earlier this morning paired back. stoxx 600 trading 0.6% after hitting a record high. this comes after a modestly

positive session in asia as well as a strong session inwall street yesterday, the s&p 500 and nasdaq post record highs investors are taking comfort we are seeing supportive moves in terms of equities it is not just in terms of the macrobut also corporate inflow what we are getting from the impact of the coronavirus and earnings overall let's kick off with sectors. green across the board telecoms, luxury we have autos, food and bev. >> that sector trading 15 basis points higher in auto. let's get to the single stocks this is interesting this morning.

very much about the news flow. tui news shares comes after they lifted the bottom end of their guidance a strong holiday demand impacted with the grounding of the boeing 737 max jets viac reports of the judge confirming the sprint merger. and a warning due to weakness of light truck market and ams came out saying sales are expected to slow in q 1 and that's not including the impact of the coronavirus a large number of corporates

investors are taking note of this morning >> officials in mainland china have identified nearly two and a half thousand people infected. 103 people died in a single day. pushing the total death toll above 1,000. the government has fired several at the head of this case the most senior officials to lose their jobs during the health emergency a major think tank says the virus could knock 1 percentage

point off the net for the year the man credited with discovering sars has spoken out. an advisor to the chinese government and says the outbreak may peek later this month and plateau and he said china needs a stronger, more powerful disease center and has called for an international early detection notification for these seizes >> the idea of this number of cases plateauing later this month could provide some support for some of the base cases out there for a lot of houses. still a lot of uncertainty the name of the game is really getting a lot of commentary and doing studies out there. remember, the doctor adding that containment measures in wuhan,

the epicenter of the virus outbreak are necessary this is positive news saying this situation in some of the provinces is improving new diagnosises are declining as well we do have world health organizations advanced team of medical experts in beijing the capital city of china trying to lay the groundwork they say for an international effort to fight the spread of the virus as well as we talk about the market implications and as you have pointed out, city with projection of the forecast and to add for that. for the whole year of 2020, the headline number is likely to be 5.3% of gdp growth for china certainly a new reality we need to brace ourselves for against the back drop.

i want to talk about the supply chain. foxconn is one of the major companies we do watch for for an impact on inphoiphone sales and apple. maybe they got permission to resume production but a lot of workers cannot make their way back to work and the factories >> you mention there that estimates have been coming down for china gdp growth estimates this year. to what extent are experts expecting that to come back later aided by spending and stimulus from beijing? >> if you look at the markets, it is surprising how we have the coronavirus concerns on one side but the markets are staying afloat we often say it is the hopes of

a china stimulus and perhaps the pbocs and the authorities that say we have ample policy room to inject liquidity perhaps they've got that room but how much can they go the inflation numbers we got to, does that throw cold water over this prospect because their room is quite limited at this point they got inflation concerns. maybe they don't have that much room for policymakers. sure, a lot of houses do say that q1 will be painful but the rest of the year, things will get made up. how much of a makeup is there to do and will they come back to china or will they make that

long-term decision of taking those business activities elsewhere? that's really the key point at this point some of the companies in south korea especially when it comes to the auto chain, they are looking for alternative suppliers for the parts they need what if they stick for these new suppliers in other regions >> thank you for that. a difficult balancing act for china. earlier today, the president of the eu chamber of commerce in china gave cnbc his take as authorities look to combat the coronavirus. >> caller: the chinese officials are busy at home, so how much time do they have to take care of an investment agreement i was in brussels last week, that's why i'm presently in germany in order to meet the

discussion that said all meetings are canceled. because i came from china. the parliament and others coming out of china i say to the ambassador to europe and officials that could meet in brussels do have video conferences. don't just wait for physical appearance make sure the communication goes on >> let's bring in our first guest this morning thank you for being with us. if we look around at markets, we are seeing record highs in the u.s. europe and stoxx 600 hitting a record high. investors seem to be shrugging off the concerns is this reaction the right one >> i think it is there is a risk no one wants to

think about. the wisdom is correct here, which is this will have an impact on the economy, the chinese economy, it is temporary. you might even get stronger growth even in the absence of stimulus in the back half of the year what is interesting is what is permanent, structural and what is temporary i think most is temporary and that's why the market is shrugging it off >> when we look at the differences and potential of companies moving supply chains, what sectors present the best opportunities here >> we heard auto a moment ago. the whole technology supply chain, apple has major components come out of asia. you've already seen a trend of

sole source compliance vietnam is now a cheaper place to go. causing companies to think about duel sources for companies as well >> this is a trend and i think the coronavirus already adds to what is happening. >> what does that mean for that trend? where do you go looking for opportunity? >> i'm focused on western companies. this gets to esg and sustainability have you thought about the sustainability of your supply chain? do they have alternate locations? is your in ven torry sufficient to withstand something like this when something happens out of the blue, you are not ready for it having duel sources and being

thoughtful about the supply chain. focusing on western and i want to see companies with thoughtful supply chain management? >> you've seen in europe and the u.s., who has worked with that trend you are identifying? >> i don't want to get into individual company names but silicon valley has thought this through. one of the reasons you've seen so much, these companies are global enterprises that have thought through these issues >> we'll leave it there now and bring you more details on the coronavirus on global supply chains at 10:30 cet when we speak to nicole peng coming up, coronavirus is

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welcome back tui said the grounding of the 737 max continues to weigh on its profits. the delays could cost up to 245 million euros but expects those costs to be offset by strong demand of holiday and flights particularly from the uk mitchelin warns of 2020 operating dip. this does not incorporate any potential impact from the coronavirus. they did report a rise in 2019 operating income to more than 3 billion euros. down about 3.4%.

one of the worse performers in europe this morning. montclair has warned that foot traffic at the store in china has fallen below 80% impact from the coronavirus has been serious but insisteso beatg the worst performers on the stoxx 600. ams reported fourth quarte e they examine the impact of the coronavirus. the group does not own any factories in china but does rely on supply chains in the region a judge will clear the way

for sprint and t-mobile to merge. they are confident the judge will rule in favor in the move sending shares in sprint 60% higher t-mobile is the third largest wireless carrier and has been waiting almost two years for a judge to decid what does it say about the m&a landscape on the other side of the atlantic >> m&a has been dormant. telecom is regional. when you have more tha it becomy competitive. this would take the u.s. from a four-player market to a three-player market. so it is arguably good for the market it allows for a period of investment spending ahead of 5g

ro rollout. >> talking about investor perception of value. do you think there is too much compared to europe we like too 1939, japan was 15% of the world market level. tech stocks at the end of 1999 these end of decade markers can be interesting the u.s. is 63% of global developed market cap that seems high to me if you

look at valuations in europe, it is better. >> you talk about time travel and that makes me think about auto sector. you need to be able to look past the next few years we've heard about daimler as they try to reign in costs it feels like u.s. investors are willing to invest in california and see them suffer losses but they are not willing to do the same for the german incumbent. is there an opportunity there. >> german automakers are great brands

the difference between those and tesla is, tesla is a company they don't have any legacy issues, incouple ban si issues it is often the newcomer that wins the day i do think the german automakers are in a good position investing heavily in driverless and autonomous driving uk chancellor is reportedly looking to ease fears of a brexit fallout by demanding permanent equivalent trade revealing the opening position after seeing aphoto taken by a long-lens camera of the documents being carried into downing street on monday publishing an article in which he outlined the demands and

stressing the goal to drive international standards in the sector dan is at the summit give us a sense of the conversations you are having over this topic and more >> we are live here at the summit in abu dhabi. i asked whether or not this next phase of brexit uncertainty is something investors should be concerned about and whether or not there is an investment opportunity here listen in. >> it is something we have to hon ter and think about. the reality is, not just the next three months, before the end of the year before a deal needs to be done i'm of the opinion iter if anybody can do a deal, boris can do a deal. you need to make sure you can

walk away from things, in my view i believe the uk will be able to thrive in this environment there is a longer term value forcing your counter parties around the world >> you helped to fund boris johnson. any advise for him >> i think boris doesn't need my advice he's pretty well positioned to do that. if you look at what happened the end of last year, he was able to make a deal out of the eu and the european commission. >> optimistic for outlook on those talks. also asked about the impact of

the coronavirus, which has really been hurting industries and companies around the world 40,000 people now suffering from that virus, 1,000 have been killed he says the move is still risk on while we see the short down turn, it will not be the outlook for 2020 and some of the years of the coronavirus will abate over the next coming weeks back to you. >> thank you for joining us. dan murphy live in abu dhabi as ever, one individual photographer working outside of downing street caught the detail ofthe negotiations coming up, daimler slashed earnings more than half. the ceo said cost-cutting

measures will be ramped up

welcome to "street signs." i'm julianna tatelbaum >> and i'm willem marxs. >> europe stoxx 600 hits a record high following u.s. and asian equities higher. tui on top of the german market helping to offset boeing-related delays and concerns about the coronavirus. seeing the bright side daimler shares rallied despite the quarterly loss we hear from the ceo later on cnbc montclair shares resume trading following a sharp fall as sharper numbers plunge 80% amid the coronavirus outbreak. >> and shares plunge as judge

rules for the merger with sprint and t-mobile more expected to be announced later today. we have got some numbers uk gdp coming in 0.0% for the quarterly number looking at 2019 gdp growth rate. 1.4% slightly higher than 2018 of 1.3% in line with the expectation for that number. looking at some details here, service outlook up 0.3%. slightly higher. on an annual basis that is slightly up. another sign service is not performing that badly. the manufacturing outlook coming

in at 0.3 of the month for the year, negative 2.5%. that's the manufacturing outlook for the uk for the month the ftse 100 about 0.7% higher this morning. we have seen a pretty decent bid come together for the cyclical china sensitive names. after a record close on wall street for the nasdaq and s&p 500. for now, investors shrugging off the potential negative impact of the coronavirus. individual corporate stories taking focus with a number of earnings released coming through. pretty wide divergence in terms of the best and worse

performers bringing you through the pound moves. just under the 130 mark over here the euro is trading about five basis points higher. so slightly firmer for the dollar, the federal reserve chair will be key as he gives his testimony on the outlook. i mentioned a strong day for wall street. those will continue for the s&p, the dow. amazon hit a new all-time high after hours, we saw that massive rally in sprint shares all of those things to keep an eye on daimler has cut the dividend to just 90 cents a share.

the carmaker posted record deliveries for mercedes vehicles legal expenses weighed heavily they need to attack its cost base harder after issuing five profit downgrades in 19 months not something investors will take too well. we are seeing reaction this morning. what is going on at this company? >> like all automakers, daimler is facing the challenge of investing in technology and the future they have to also deliver quarterly numbers. as we were discussing, the german players, they don't have the luxury of being a fresh pioneer, newcomer like tesla will do.

the issue is that they can't get it right they keep coming out with updated guidance five in the last 19 months, four since may when we include things lower than the market expected >> what i wonder is what role will they play in the markets. whether that gives some of the u.s. automakers a bit of an advantage. you talk about targets for electric vehicles where you've heard from the uk. what does that mean for these firms? >> it gives u.s. players like tesla an advantage we have seen when it comes to stricter emission standards that tesla teamed up and they were able to use the carbon credits

to meet their requirements they have an advantage but the question is will these incumbents be able to catch up >> later today, we'll be talking to daimler's chair of the board of management that's at 13:15. meanwhile, randstad said quarterly income was 167 million euros compared to 197 million from last year highlighting the weakness of the german market. >> we do see stabilization but at a decline that's why we had to take out 300 of our own people, our own consultants to operate at a lower cost level

we don't expect this to bounce back in the first half of the year we need to weather that storm, we think >> separately, the chief executive of hong kong has urged people to stay in doors. the government is examining how the virus is spreading by looking at drainage pipes in one area and according to reuters, the world's largest electronic maker resumed production >> apple investors are focused on foxconn and for good reason reports suggest that it factory is back open for business but that only 10% of workers have returned this plant is described as the

most critical iphone production sight located only a couple hundred miles from the epicenter in wuhan another important plant in shenzhen is coming back on line to a key consumer for the company operating 42 stores there. those stores account for about 10% of greater china revenue beyond apple, what does this mean for semis analysts estimate that china is responsible for 30% of chip sales and perhaps 30% of semiconsumption. let's bring in the vice president for mobility at the technology markets from canalys. thank you for being with us from hong kong.

first, if you could outline what is happening right now in terms of tech related factory closures and then in the tier one cities? >> caller: the outbreak has forced government to put very strict restrictions. the businesses somehow seem to work they are putting a lot of different rules across different province insome province, the outbreak is more serious. we are working on much more and it makes it difficult to predict how fast the factories in different province will be able to get all their workers back to the factory and resume the

production >> you have made some predictions and adjusted them as of late, what are you expecting in terms of impact in terms of shipments on smartphones and pcs? >> we are expecti >> caller: we are expecting a very bad q1. we are expecting china down about 50% year-on year it will be about double digit decline in china market alone. this revised expectation and production because impact will be delayed given uncertainty

about workers' comping back to work first, the retail sector, that is shut down and making it difficult to see where that is going to on the level. >> the companies that produce these. the bricks and mortar companies. >> caller: the outbreak is impacting the retail sector a lot of regional governments are asking people not to go out. not go out for jobbing and buying groceries for them and

the family you'll find that much less foot traffic and the consumer demand. we are going to see people coming back to work. in terms of traffic in different major cities and we need to closely absorb restrictions letting people -- encouraging people to go out and and do more shopping we don't expect that in the next one to two weeks >> thank you for that from hong kong if you have any views for what coronavirus means for you, the

region, get in touch on twitter or directly. @cnbcstreetsigns coming up. the white house reveals the planned budget proposal but it faces fierce when it comes to using data,

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the trump administration has unveiled a $4.8 trillion proposal with plans to cuts like health insurance and student loan assistant and increased spending on border enforcement democrats have promised to reject the plan. more details from washington, d.c. features rosie economic operation that the average rate will grow at 3%.

almost double the forecast, expecting growth to clock in at 1.6 to 1.7%. the budget makes three big assumptions. first, that there's another big tax cut. the white house has $1.4 trillion place holder of what could become tax cuts 2.0 and assumes interest rates remain low and third proposing $4.4 trilli $4.4 trillion in spending cuts over a decade. half coming from social safety net changes and 5% cut in discretionary spending already, the administration is facing political blow back the democratic chairman said congress will stand firm against this president's broken promises and disregard for the human cost

of his destructive policies. think of it as more of an election year wish list than a reality. the u.s. campaign trail now turning to new hampshire as voting gets under way. this comes a week after the confusion in iowa produced no clear winner the latest poll shows bernie sanders leads the current pack of candidates in new hampshire the race new hampshire has shifted to a sprint cross-examinationing the state making the final pitch on the eve of the nation's primary. joined in new england by the man they want to replace >> we are going to depeat the radical socialist democrats. we are going to win new

hampshire in a landslide >> touching onni issues like the economy, and the border. >> they are all fighting each other. >> there has been some sparing on the campaign trail. >> we have a president in the white house that is divider and chief. >> the president of the united states thinks we're suckers. >> when it comes to their mission here >> we are going to defeat the most dangerous president in the history of america, donald trump. >> the fight now is focused on new hampshire. jay gray, nbc news, manchester, mu new hampshire.

going to our guest how much does this compare to 2016 are things different >> i think it is pretty much the same debate but the stakes are greater and the whole situation is intensified we've had four years of the trump administration and the fact that the democratic national committee was accused and found guilty of sabotaging bernie sanders, it will be more difficult to do it again within the democrats about what kind of parties their voters would like and proposals and so on that would contrast sharply

also with the trump administration on budget plans >> on that note about what democratic voters seem to want, we had no clear winner from the iowa caucus, no democratic candidate won the backing of more than 25% of the vote. what does that mean, come november when the democrats are going up against president trump? >> that is a big question. it is a bitter early to say. the question is can a socialist candidate beat president trump

>> isn't that the only criteria that matters, in a sense, is the ability to beat trump in a head to head? they've done that match upas a hypothetical what their policies are, are irrelevant, aren't they? >> that is very interesting as well on one hand, correct in a recent interview, hillary clinton had to be pushed very hard to say she would support bernie sanders it is very much big money donations and a large part of the attitude towards where the u.s. is going. i'm not sure that they would be great disappointment if sanders

were to lose from that perspective in november. >> i wouldn't say there would be a unified party. we've got mike bloomberg in the wings waiting for super tuesday. they could emerge as a dark horse from his billion dollar budget there is a lot of stuff going on on the right that still has to be clarified >> what about the right of america in terms of the political right. president trump, clearly the incumbent candidate. are there clear factors you think could support his candidacy and areas that could hinder >> the base and strategy he's adopted from the day he was elected and ran. one is keep your base very

happy. they are very happy with the tax on the far left and on imoperation. on the other hand, he benefitted in 2016 from slicing away at the democratic candidate hillary clinton by going to detroit back churches sand saying look around you, what p hhas a democratic py done for you he can't stand on that ticket on sanders because he's not blemished by that kind of report president trump may have galvanized his base but also probably everybody who opposes it they are highly motivated to turn out to vote it is how all of this plays out over the next 10 months to make this so interesting.

>>. >> thank you for joining us. visiting professor we talked about this earlier, the photo of a paper that talked about the proposal of the trade agreement we've heard from the man now leading the uk task force on those trade negotiations saying there will be no general open-end open-ended ongoing equivalence you can see him giving an address on the whole range of issues for the city of london, that is significant development. let's touch on deutsche telecom where shares are stronger after the wall street

journal and new york times has said a judge has cleared the way for the merger of sprint and t-mobile sinding shares of sprint more than 60% higher. t-mobile is the third largest u.s. carrier and has been waiting almost two years for a judge to decide if they can move forward with the $25 billion merger with sprint shares of slack fell the messaging platform issued an 8 k filing after saying the company scored the biggest customer deal that ibm decided to deploy its software to all employees. slack had to clarify it had been a long-standing client and would

not update the financial guidance a number of single stocks on the move let's look at u.s. futures where we are in for a positive start to trade all three major indices are flashing in the green following a record dayi yesterday for the s&p 500. that's it for today. i'm julianna tatelbaum >> and i'm willem marx "worldwide exchange" is coming up next.

it is 5:00 at cnbc global headquarters here is your "five@5." stocks back on rally mode. still on risk from the coronavirus. retail is rising alert we have some names to watch coming up. breaking news in the telecom space hasshares of sprint surging. china responding to allegations of cyber theft surroindiunding a 2017