that's all for this edition of "dateline." i'm natalie morales. thank you for watching. [music playing] good moorngd welcome to "street signs. i'm joumanna bercetche >> i'm willem marx we are in london and here are your headlines >> barclays warn it will be tough to return on equity in 2020 ceo is being invest gated for ties with jeffery epstein.

shares of credit suisse and more after his resignation the results are better than forecast sending shares sharply higher airbus shares open in the red after the group's bribery settlement eat into profit despite 2019 orders and deliveries we speak to the ceo later on today on cnbc. >> it has been a very busy day for earnings across the board. bank earnings are front and center with three financial groups releasing full year numbers. starting with barclays

the bank will be tough market conditions a profit of 3.26 billion pounds. earnings rose in part thanks to a 17% performance. results have been overshadowed by ceo links to jeffery epstein who committed suicide while awaiting trial on sex trafficking charges. they said he had not had contact with epstein since becoming ceo. after reports that stayly visited epstein in prison. credit suisse posted a surge with thebest bottom line

performance since 2010 the figure came in short of expectations keeping fresh on the shares and pre-market trade. as thiam completes his final days as ceo. he hailed the impact of the restructuring he undertook in 2019 he said the bank will stay committed to the previously announced strategy commerce bank shares are higher after the german lender posted a smaller than expected loss in the fourth quarter restructuring and higher taxes weighed down the bank in the fourth quarter we have reaction if you want to drill into detail the outlook is comforting. what more can you tell us? >> one of the big reasons the stock is trading up, in that

press release, pawning at a potentially higher return on equity for the bank. that return is now 4% for 2023 it is not at all like the return on equity target which regulated. looking today as saying they are kind of optimistic they could also achieve some what higher return on equity perhaps 5% he was eluding to earlier. that is one of the reasons why he might get propertibility for the bank sooner than later also saying that progressing to the strategy 5.0 faster than expected if you look at the numbers, the underlying revenue are also not too bad. we have net interest and net commission income up compared to

previously the quarter in 2018 despite the still negative interest rate, the bank manages to increase the underlying profitability at the same time the lender is relying on retail banking. that is the market here, very contested. the markets are super low and it is geared to the economy and call it corporate clients. it remains to see what will happen and whether the economy will decelerate further during the course of this year and that will have an effect on the loan

book as well the picture makes but the shares are up on slightly good news on the outlook. the shares itself are only up by 5% nothing compared to deutsche bank who is among the best performer in the german dax. i should mention i'm going to speak with the cfo at 12:30 local time, so cet she is incoming. i'll discuss the outlook for the lender at 12:30 cet here on cnbc back to you. >> we look forward to that joining us around the desk, antonio and patrick. let me start with you, antonio

how helpful or unhelpful is the widening banking sector in germany that is trying to maintain its role in very traditional banking transactions >> i would say it is very unhelpful. most of the banks are not for profit and don't care too much about return on profits. margins are very low and they are not going to get better anytime soon commerce banks are most interest rate centered bank the new ecb policy is dragging the returns down we also had recent kmomcommentso ecb center where 4% target was unacceptable and it was posing a risk in terms of financial risk

in germany there is not much they can do to be honest. restructuring costs are high in germany. reducing staff, requiring to take day one restructuring costs in the multiple run off that you can expect in the future >> one thing they could do is start passing off negative rates to their customer. this is a european banking rate issue. surely that does possess some upside to their margins? >> we have seen some banks start to do that actually. especially with corporate customers. for retail, it has been a more discreet move. a few banks have started charging the fees on the account balance over 1,000 it has to be a coordinated move. if you are the first to move in,

you risk losing clients. it has to be a industry response >> how fragile are they and how are policymakers testing that? >> they are pretty fragile but we'll know soon thanks to a new test that will incorporate a lower interest rate. the first time ever theeba is stress testing for an invested yield curve in the long run. it is going to shore up under stress test results. i suspect it will be really bad and on the top priority

regulators. >> i'll switch you today how much do you think that is on the regulation and suggestion that there was ties to jeffery epstein. was that expected? >> those regulations were not expected at all. the results were not that bad. actually, it was a positive beat on capital and a beat on revenue. the weak area is still cost controls they have to bring the cost to income ratio down. they had guided it at a 10% 2020 target however, they didn't release new targets. they are still committed to new ones the results themselves are encouraging. >> we know you can't comment on individual stocks. one of the potential solutions to the challenges is

consolidation. we've seen that. as an investor, do you see that as a path to profitability to these kind of stocks >> the front runner is always the u.s. a lot of the money centers are going up because of that profitability. i think more broader in terms of what we are hearing about, the stoxx 600, the european index is trading at record highs. it is mainly tech and europe is mainly financials. within that, banks are trading at three-month highs if you spreeak to one of the mao hedge funds in london, they have been seen with the banks the cap three have taken a 3% stake in a major bank.

suddenly this fooinancial oppression is causing a real surge. greece is lending at 3%. 4%, money begets money, as it were in terms of book to bill, i think they are about 1.4 times they are not expensive the stocks are all rallying on the basis it is the old economy. it is that old adage it is not who you are. it is who you are not. people don't want to play the u.s. expensive tax, they are coming to buy a lot of the banks in europe. >> interesting you say that, i want to take your take on what

patrick just said. equally the business model is very different you hear the likes of the big swiss banks who have completely revamped their models and moved away from risk rated assets towards the steadier income stream type of business. shouldn't there be an associated recall recalibrated business. essentially wealth management banks now. >> if you want to find this table dividend and high income scream, you'll have to look for diversified financial institutions those who have asset managers,

insurance and banking institutions european investment banks have left a lot of market shares to the american competitors the bank is a business of skill. you can't achieve a good return without massive scale in global markets. so it is almost a lost business for european banks it would have to be more like utilities. that's how you should approach them they'll really value names now >> it is important to mention these banks that were heavily regulated and were slightly different. the europeans suddenly realize they don't need that they need strong banks for its

economy. important for the economy is to have strong banks. they are getting less regulated now. that should help them coming forward. >> certainly, that is much needed we'll leave it here. a return to investment thank you for joining us patrick, stay with us. if you want to get involved in our conversation, you can tweet us @streetsignscnbc. coming up, the latest on the coronavirus deaths and new coronavirus deaths and new cases. ♪ don't just plan to retire.

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welcome back we've been talking about bank earnings day it is also earnings day for credit suisse. this is the outgoing ceo

presenting the full results that came out a couple of hours ago for the full year, they say pretax income did come in up roughly 69% from where it was a year ago so solid results for the full year as a whole but as it emerged, the ceo will be stepping down. the incoming ceo will start tomorrow as he was engulfed in a spy scandal last summer. these are the last comments we'll be getting from mr. thiam. switching to the markets more broadly, you can see a lot of red on the heat map we've got the stoxx 600 down about 0.5. much of the decline is weaker

reaction before we get into sectors let's talk about the individual forces here. trading on the back foot leading declines down north of 1% remember the ftse is a mining, basic forces heavy index any sector with sources close to china trading on the back foot down 0.6%. industrials getting hit there. we have the cac down about 0.4 can you see the picture is slightly more mixed. we have defenses outperforming defense utilities right at the bottom any sector that has expose your is down. oil and gas struggling with the oil complex in spot terms

trading down 1%. mostly led by weakness in credit suisse and barclays this morning. credit suisse is up north of 4.5% points. more earnings. zurich insurance posted a 16% rise in 2019 operating profits, which came in above $5 billion net profits were the highest in a decade the swiss insurer has plans to beat all of its target thanks to bigger business, lower v volatility >> it is difficult to read today what the coronavirus will bring to us over the year.

so far, the impact is minimal. we don't see the impact through the year yes, the travel will be canceled but that will not impact our accounts in 2020 in significant way. most impact will be on the gdp and what will happen on the western economies as a china result of the coronavirus. shares of nestle are lower the maker of kitkat and nescafe

said it is too early to know the impact of the coronavirus. >> and beating estimates, the group cut its full year profit guidance due to concerns over the impact of the coronavirus in china, its second largest market pernod expects the outbreak to affect the third quarter performance. we'll take to the chairman this afternoon. >> the chinese proof is has reported a record rise 242 people died on wednesday alone. the highest percentage increase. they are now including suspected cases rather than clinically

diagnosed patients this allows more patients to receive treatment but now the number has risen to higher than 44,000 >> organizers of mwc canceled. the heavy weights such as eric son, cisco, facebook and amazon had previously canceled their participation. patrick is still with us i wanted to bring in comments from steve mnuchin yesterday he said there had been no impact on the u.s. economy. do you think u.s. investors are taking that as a bit of a green light? >> it is interesting that the revenues in the states are still predicted t

predicted to grow 5% there is a 95% predicted revenue. you are looking at the european revenues coming down it is quite interesting that all this worry about the virus, people have been rushing to the u.s. rather than anywhere else in the world it is a safe harbor. the u.s. is being seen as a safe haven. the trouble is the impact and the first quarter. you have two big tech companies reporting. i don't think it is being framed properly just yet. the national association of small businesses said business is booming in the last month some of the international companies that have supply lines might be more difficult but the

u.s. is relatively contained at the moment if you are right, you should get performance at this time of the year i do agree with that statement >> it is either the inflows that go into the stock market the u.s. is a closed economy relatively the consumer is still doing very, very well. the outlook is positive. does that make you want to have more expose your other than that that could get hit >> that's a great question a lot of the big businesses, not only are they facing regulation, the tech companies the nasdaq is up 10% this year to my earlier point about banks

banks are trading near all-time highs. so people are switching out of the high tech stocks to more sick call stocks we look at futures and it shows that rates are not coming down i do think some of the smaller companies do look interesting. valuations at the later part of the market would favor them. >> so sickit does look attracti. coming up, we'll speak to the ceo of ams about the impact of factory close yours across china amid the virus outbreak. stay with us ♪

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barclays' shares and discussing the ce o's ties to jeffery epstein. it is too late for thiam who is presenting his last time as ceo. dragging commerce bank to a net loss results are better than forecast that sends shares sharply higher airbus shares open in the red after the bribery settlement eats into profit despite solid 2019 orders and deliveries we'll be speaking to the ceo later oncnbc

you can see a lotte of red on the board the hand over isn't so pretty. we saw a pickup of the number of reported cases in the china region being watched closely by the market we did see some reaction it is super thursday we've had plenty of earnings come out of the banking sector, tech sector food and beverage. that is one of the reasons why we are getting red across the board. we have barclays and credit suisse down about 2% nestle as well you can see ftse 100 in the uk the biggest performer leading declines down about 1% this is a basic resources heavy

index. a lot of stocks are under pressure ahead of the chinese equity overnight any sector that has exposure is also hit auto is right at the bottom of the cac and dax. the industrial also outperforming. i want to turn your attention to foreign exchange we continue to see strength in the dollar that is manifested against the counter part continuing the downward trend. something to keep an eye on. we can see strength of the yen cable in the uk shy of 1.30 as well it has been difficult to

breakthrough that 1.30 mark. that is the theme as the dollar breaks ground and the u.s. stock market continues to break ground the three majors today seen opening weaker but yet again record highs for the dow and nasdaq those indices really trade like teflon making a fresh record close. looking ahead, we have the cpi and record claims to watch out for. ams has warned a disruption. this all comes after ams posted better than expected fourth quarter results. alex from ams joins us now you've got no physical facilities in china but a lot of

businesses in your industry, you rely on supply chains. how reliant on china is your supply chain and how reliant on your customers when it comes to selling to customers in china? >> the situation, as we see it, we gave a guidance of $480 million for the quarter. we did not see an impact from the coronavirus. we are less concerned about demand or manufacturing ability. we are working closely on supplier base in china for raw materials. we are still very confident that we don't have a meaningful negative impact on our business. >> are they finding it difficult? >> it is not easy. they are going back to work now. if nothing negatively happens, china has to act negatively, we

are not concerned about this it is a challenging situation. we are managing this professionally on top of that, to deliver those numbers. >> i want to ask about the consumption side of thing. in your earnings, one of the reasons cited was strong demand for the smartphone iphone 11, with very strong sales and how you supply apple going forward, how is the demand especially given that china is a core business base >> normally you don't change the

position >> tying that to the general manufacturing glut day after day, people are talking about the manufacturing decline. just from a pure macrostandpoint, how is the year shapg up for you >> of course this has an impact. as i mentioned, i think it is more a delay of consumption. as long as the supply chain is managed well, i think we can go through this very easily >> working in the not so distant future can you walk us through your confidence on that >> the main reason we don't see any road blocks is that we are

buying a company which their portfolio is complimentary with ours there is no major overlap there. >> will that be a sticking point in your balance sheet? >> no. sclusing this position we went down from about 5 last year to 1.3 end of 2019. we have significant election of our balance sheet. we feel comfortable that within two years, we are going back to two, which is a healthy situation. our cash flow is very strong last quarter, q4, adjusted ebid

margin adjusted year-on year. very strong growth and cash flow we feel confident to manage the situation. >> offshore cash flow is not bad either my understanding is that you need 75% of the shareholders to green light that what is your plan b? >> i don't have a plan b i am very confident we'll get this done. there is a very, very strong chance we'll get this over to the finish line. >> thank you to the ceo of ams shares in orange are higher. france's biggest telecom operator got a boost from

operations in france, africa and middle east. thyssenkrupp shares are up after reporting a loss ever 164 million euros. it is currently focused on the sale of the elevator division and the john going process has proven to be very competitive. airbus swung to a 1.36 billion net loss from a profit from 2018 the bottom line was hit by a multibillion settlement in an international corruption charge. here with our guest to talk about the highlights we saw a bit of a reaction to

the stock. we've recovered some ground. you would think from the outside that airbus would be doing better given the situation the major competitor had found themselves in. >> two reasons for it, one is the penalties. so 3.66 billion euros there. that was a bit less than expected that was not too bad news. that has been going on for years in the investigation it takes a little bit of that uncertainty away to mention on the military side of airbus, they mention revised expert resumptions that is impacting the bottom

line next year, they expect 7.5 billion euros and lower than expected at 880. you could say it takes a long time for a company like airbus to move that in and take some time they have an eight-year backlog with 7,000 orders. it is impossible to respond immediately. they have found moving production to the narrow body jets which is the market where they are operating and the narrow 320 is operating, which is the best seller of airbus they will try to ramp up production of that plane also announced buying a segment where they can improve the

production where they couldn't invest the cash. they now own 75% of that business positioning themselves for the future to try to respond to the gap on the back of this going crisis >> i wanted to ask you, you see these two giants of aerospace manufacturing struggling at the moment if you look at their customer base, they are having a torrid time dealing with coronavirus. are there other sectors out there that because of coronavirus you think are particularly toxic >> good question the markets are trading at record highs the markets are trading at that high you've got relief there. i can't mention names but we've

talked about aerospace this morning. companies have been taking out large loans to pay small suppliers. even though you would have thought they would be impacted, suppliers are holding out pretty well in terms of impacts in the u.s., you've hardly seen any illusion to that so far in the earnings nobody knows it's a big question mark in terms of the impact, the market is straight through it. it is off today. my point is once again, people are looking at the u.s. safe harbor and money is coming because of all of these issues the bottom line, the u.s. is

basically the safe place to put money because globally it has been seen. >> i want to bring it back to his point. people have been investing in companies where the outlook is bright they completed deliveries for 2019 what is the outlook for 2020 is that too conservative >> they delivered 863 planes in 2019 the first target was 880 and 890 that they had to down grade to 860. they beat their target so now the target for 2020 is 820. that is a bit below expectation. it was closer to 900 there was an argument from the ceo that they tried to lower

expectations and produce less but better and reduce technical problems they want to address issues that they've had and address issues of course we have delays in the assembly line in china that just reopened in china. all of these things they want to address and deliver ahead of the target that is set for 880 for 2020 >> something we'll ask the ceo who will be with us for an interview to discuss the latest earnings i want to take you back to the press conference we were watching that was delivered by the incoming ceo who has a plan to change the division setup of the group. a lot of questions about the set

up of the group and if there will be changes. >> ought to be based on the surplus capital. this is why we confirm our financial position for 2020 as stipulated last december including an rt of 10% the last few weeks and months were not easy for all of us. it is now time to look forward and shape the future of our company. i feel privileged to work for credit suisse, particularly for having been at the bank for over 20 years we have a strong corporate culture that is based on swiss reliability, international financing expert he's, entrepreneurship, teamwork, responsibility, integrity and

trust. we encourage an open dialogue among our almost 50,000 employees worldwide. consequently, it's our goal to continue to engage with our colleagues with a goal to further intensify such incertainninternal exchange of ideas. over the coming months, i will be in close contact with external share holders, analysts, regulators and you, the media representatives. we are looking forward to an acting dialogue and working with you. thank you. with this, i would like to hand back to dominic. >> this is the new incoming ceo of credit suisse giving remarks.

a strong earnings for 2019 strong performance bottom line of 69% for the bank. a lot of reshuffling at the top. that announcement was made last week we heard him say he is opening a new page also important as he said they are not anticipating any new strategy going forward coming up, ali baba earnings said to be impacted by the coronavirus.

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welcome back to the show alibaba is due to report earnings will rise to $2.20. the results could be

overshadowed by coronavirus concerns and disruptions to supply chains. >> you are not going to see any coronavirus impact in the december numbers but the market will be looking to the quarter for march now. let me layout alibaba's exposer here they rely on consumer spending and they don't know what kind of a hit that might take. hard to quantify it right now. that is where the market will be asking questions there could be positives as people go to work and others are staying at home, that could be the bottom line ooly baba has brought in measures to help boost the

platform pumping logistics and offering lower cost loans analysts are expecting a .6% impact it could be an impact on the platform if it is lowering fees, that could be a boost to the short-term impact. >> remarkable performance of the stock last year. outperforming amazon quick one, softbank had a stake, roughly 25% in alibaba, their active share holder are pressuring them to reduce that stake. >> the market soft bank doesn't really reflect the values. they want huge buy backs they hope that they will sell that 150 billion shake

he has been reluctant to that. we've seen the pressure it has brought in the past. softbank has found it difficult. this has been the result it might have to turn to eventually >> we've been brushing over the u.s. market but tech specifically, you mentioned you think now is the time for investors to rotate out of tech. does that apply to broader tech companies like alibaba as well >> i think so. we still like the group but given what we feel about the side, we might be at that precise point now.

>> from your conversations you are having with people, do you get the sense that there has been inclination to reduce the holdings >> the tech strategist spoke to a lot of the hedge funds the other reason is regulation i think people are very worried about big tech >> thank you for joining us. arjun, as ever for braeaking dow all things tech. that is it for us today. i'm joumanna bercetche >> and i'm willem marx "worldwide exchange" is coming up

when it comes to your business internet, which is more important? ♪ ♪ okay, i wish i didn't have to choose. like the more i think about it, the more i want to jump to each room. what if i said you can have it all?

♪ ♪ comcast business gives you connectivity that goes beyond. that's what we want! that's speed, reliability, and security, all from one provider. touchdown! get started with internet and voice for an amazing price. call today. comcast business. beyond fast.

it is 5:00 here is your "five@5." retreating from records. over fears from the coronavirus loom the number affected and the death toll seeing a sharp surge overnight. we'll have a live report in a moment the debate continues over bernie sanders and front-runner status what it could mean ranking the world's top brands according to how you feel about them

and the fried chicke