it is 5:00 at cnbc here is your "five@5." stocks are looking to rebound after the dow notched the third losing day in a row yesterday. markets getting a little relief here as the number of cases of coronavirus appear to be slowing down we are live with the latest details. new safety concerns from boeings 737 jets after debris is found in the fuel tanks.

>> nike looking to shuffleci a protest from its owna fundraiser it is wednesday, february 19, 2020 "worldwide exchange" begins right now. good morning i'm dominic chu in for brian sullivan stock futures indicating a positive open after the dow fell for a third consecutive day on that big revenue warning from apple. that dow would open positively by 57 points, the nasdaq up around 30. the yield on 10-year benchmark ticking slightly to the down side, 1.551%

two-year benchmark, 1.414% there. let's go worldwide moving over to china's return t% hang seng and hong kong up about a half% and a third a percent. it is relatively green there on the screen very much a positive trade in the european session, at least so far sno the daily number of infections in china has dipped the overall death toll crosses the 2,000 mark

reporting the lowest daily rise in cases officials in hong kong have announced a new death from from the virus as well. in the united states, a single case has been confirmed in california that patient has been isolated a second patient is under investigation. both had been previously quarantined on the diamond cruise ship in japan any passengers were crew are prohibited from returning to the u.s. for the next 14 days. they are in the process of disembarking if they test negative general motors, fiat and toyota are reopening factories or restarting production in china

following factory shutdowns. going to eunice yoon overnight, the bank of shanghai has announced a number of actions to help companies with the coronavirus. >> the chinese government has been directing local officials to assist any company struggling with this crisis the china units of unilever and 3m have apparently qualified for slow interest rate loans they have ban circulating lists some with up to 200 names on them companies can put themselves or nominate themselves. it looks as though the priority is to get companies that produce medical supplies and basic

necessities. all of this comes as the chinese government continues to clamp down and try to rule out the spread hubei is trying to sweep for purchases of fever and cough medicine anyone caught selling to buyers need to make sure that they identify who those buyers are or they could get punished. >> it seems like they are trying to keep tabs on this eunice, we are following developments of china kicking three wall street journal reporters out of the country over an opinion piece they penned what is behind that move we know the chinese are very, serious of clamping down on

editorial comment they don't approve of >> absolutely. they didn't pen the editorial. it has nothing to do with these three wall street reporters based here in beijing. the foreign ministry said this editorial that was written in the editorial page the wall street journal has been clarifying has nothing do with their news team, this editorial described china as the sick man of asia. the foreign ministry said that is racist and comes as the u.s. just overnight had designated five chinese state news organization as arms of the chinese state. we are seeing a lot of censorship here that is ramping up during this outbreak.

i have heard it is getting worse and it is getting hard for them to work remotely, which is kind of an issue since they can't work in the office >> thank you, eunice let's get a look at other top stories today. frank holland has those. >> huawei back in the news considering further legal options after the federal judge dismissed a lawsuit of a further ban on the company the law that prohibited u.s. agencies from doing business with the giant the u.s. argued they could use equipment for spying and the lawyer said they illegally barred them from her rights >> softbank to borrow up to

$4.5 billion after management took an estimated $3 billion stake in softbank and called for $20 billion in stock buybacks. shares of bed bath&beyond to invest the company will also spend $400 million in upgrading stores. testing various strategies that consist of slashing inventory and adding more signage. >> that company having lost a quarter of its market value. back to the markets now. i'm joined by daniel morris, senior strategist. he joins us now. we've heard different updates. the markets largely here in the united states and perhaps elsewhere, shrugging things off

is this something we can glaze over because it's a short-term phenomenon >> you'd feel more comfortable about that view if you saw the same message and you don't if there was no medium-term impact, you would expect treasury yields to be close tr o 1.8 before all of this started you do have this disconnect between the two markets. we get these, it is up to which one you think with equities. treasury yield reflect a more optimistic view. concern that we don't really have the uncertainty we would like to have about how soon this is going to be ending. >> over the past few weeks, we've focused a lot more on the

corporate earnings picture we would say that drives the overall stocks more focused on macroconcerns. is the earnings picture here still supportive of stock valuations at current levels >> i think the current answer is yes and no on the sidelines, in u.s. and europe, i would argue this should put more focus on earnings companies should be able to support that that modest

earnings growth is valuable in the tech sector. probably should and will continue to see that come in above expectations indicating what we had with the coronavirus. that is a risk >> saying the market is elevated right now. on a relative basis it is given previous years what do you consider to be a more fair value, valuation basis for it or otherwise on the current market >> the average is about 15.5 we are near 19 you hear the argument that because of quantitativ quantita

it is still about 15.5 times you haven't actually had a higher than average post than before when you look at how it is different this time, you start to get a little nervous. that said, there are two ways you could get a normalized pe. it grows into the multiple i would say at best, you should have modest expectations for returns for the rest of the year if anything, the downside risk outlook. >> thank you for that. when we come back, the european union preparing to unveil plans to reign in u.s. technology firms. plus google's parent company pulls the plug on one of its moon shot projects

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welcome back to the show 5:15 a.m. eastern time lawmakers there worried about what is happening with the election cycle coming up and big

technology it is not just in washington, d.c., the european union is set to unveil plans to bolster plans by reigning in u.s. tech giants like facebook, amazon and more joining us live from brussels. these proposals are set to be unveiled shortly what can we expect on the crack down of big tech >> reporter: we are expecting the commission to announce a new data strategy as well as to open the debate about artificial intelligence we should expect legislation in a few month's time today, we are waiting on an indication of which areas in particular the eu will be looking at regulating when it comes to the big tech firms. let's see how u.s. officials and

big tech firms will react to these efforts from the european union. let's not forget how it happens from the data privacy laws that serve on tougher regulation in other parts of the world the same could happen now when it comes to ai >> what comes interms of the your yan union on that front and otherwise. we can expect them to look at previous acquisitions. i asked yesterday, the head of the policy here in the eu if she was considering doing the same she did say the commission is looking at ways they could go

direct when it comes to smaller acquisitions, dom. >> thank you from brussels still ahead, a look at stocks to watch including one e commerce company whose shares are plunging after an earnings miss. a very big mystery chart there >> announcer: today's big number ld,603.60, the price an ounce of go settled on tuesday. the commodity's highest level in about seven years. legendary terrain in telluride,

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welcome back let's get a check on some of the stocks on the move this morning, herbalife is higher warning the coronavirus could have a material effect on its business this year and will update its guidance. china a big part of its revenue in 2019. >> diamondback energy reporting a loss revenues jumped 34%. shares up about 2% pre-market. shares of groupon, the company's fourth quarter

earnings and revenues missing forecast announcing a reverse stock split and will also stop selling goods or merchandize due to what it calls a fiercely competitive and irrational retail landscape. under severe pressure this morning. still on deck, the coronavirus outbreak not just hurdles for major companies. kate rogers here with how small businesses are feeling production pains in china. all of that when "worldwide exchange" returns after this keeping me from the things i love to do. talk to your doctor, and call 844-214-2424.

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welcome back that's a live shot of times square things are picking up a little bit with traffic we are just about half an hour away from "squawk box. let's check on other top headlines with phillip mena live in new york news room not far from times square with the latest there >> not far at all. can a slick multi-million ad blitz add to success on the debate stage michael bloomberg will face his rivals for the first time. he has said for the first time he would sell his company if

elect elected president. the debate begins at 9:00 p.m. tonight. >> attorney general william barr admits he's thought about calling it quits he reportedly told people close to the president he considered resigning over trump's tweets over the investigation the attorney general has no plans to resign. there have been growing plans for calls for his resignation. in new york, jury deliberations continue in the case of harvey weinstein he's pleaded not guilty to five felony accounts of sexual assault. if convicted, he could face life in prison. back to you. >> thank you for those updates still to come, the latest on the coronavirus including the new dire figures from adidas and the outbreak it is having on its

business especially in china and new details surrounding safety and the boeing 737 max jet as if they needed more concerns. we'll return after this.

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production companies for u.s. companies big and small. we are talking to the head of one trade group and the challenges they are facing and spacex looks to take men to the heavens and expand the space tourism program. the second half of "worldwide exchange" begins right now welcome back to the show here is how your money and investments look stock futures indicating an open the dow would open by about 70 points if these futures hold the s&p would be up by about 7 points nasdaq up about 35

short shorter duration bonds moving slightly higher 1.41%. 10-year note yields 1.553%. a slight down tick there a positive look. the nikkei closed up nearly 1% the hang seng up by a half a percent. let's spin over to what is happening with european trade. it has been generally positive it remains that way now. the cac and the ftse 100, the dax, all up between one half to three quarters at this stage frank holland has more >> nike news including a new chief operating and financial officer. current cfo will take the ceo

job. consumer company has faced scrutiny over allegations of doping among elite group and skpla skpl claims of gender boeing facing claims of debris ally financial to pay cardworks for $2.7 billion to the coronavirus outbreak, the daily number of infections has actually dipped. the death toll has now crossed the 2,000 mark reporting the lowest daily rice

with more than 1,700 new cases officials in hong kong have announced a new death there from the virus. a single case has been confirmed in california. the patient there being isolated while a second patient with symptoms is under investigation. both had previously been under quarantine on the diamond princess cruise ship in japan. prohibiting any passenger or crew from returning to the u.s. for at least 14 days saying those passengers will begin the process of disembarking if they test negative adidas says business in the greater china region had dropped by 85% year over year with the coronavirus resulting in store close you'res and customers visiting the main outlet's especially during the key

holiday. small businesses who keep less inventory on hand may be hit even harder. for those who import from china, the factory closures mean supplies are dwindling kate rogers talked with two business owners trying to protect themselves >> reporter: as the number of coronavirus cases continues to rise u.s. businesses are awaiting factory reopenings omg accessories is a lifestyle brand for kids made in a factory outside of wuhan. ceo ann harper stocked up ahead of the lunar new year and has enough to carry her through back to school. >> i do communicate every day with my overseas partner

we are day-to-day following up we are hopeful that they will find a solution. >> owner of kindly, an outdoor products has learned to stock extra ahead of the holidays. he has three month's supply on hand, he's eager to put in his next order of backpack coolers which is the best seller on amazon >> i contacted my manufacturer today. their factories are closed right now because the virus is out there pretty well. >> reporter: at a time when optimism is near record highs. the group says the global impact of coronavirus is a threat to that small business sentiment. something they continue to monitor. >> is there a case small

business owners are looking at a certain tis they look at inventory and production, how far can they forecast? >> for these two, they've been doing business in china for some time and new to plan ahead for the new year anna said she is okay through back to school she sells 300,000 of those backpacks per month. they know to stockpile and they hope factories reopen in a few weeks. hers set to open this friday you don't really know. you do insulate as much as you can. you couldn't plan for something like this. >> how easy is it to shift supply chains. companies are saying we are going to move to vietnam or cambodia you can't do that overnight? >> you can't both of them looked elsewhere due to the trade war

that came before this. it made them look at supply chain and other options but it takes years to do that those who have shifted had started and may be a little more protected but are still impacted >> stick around here major corporations struggling to contain the impact a cnbc analysis found nearly 20% of s&p 500 companies say the outbreak will impact revenues or profits. that list includes retail heavy weights like apple, nike, starbucks, estee lauder, underarmor let's bring in ceo of american apparel and footwear nike and underarmor there. supply chains are a key focus, how much are industry groups and companies there trying to adjust or trying to shift

>> coronavirus is reminding us what we already know we are very interdependent we sell a lot in china but also produce a lot in china and around the world we use and push in china as long as the coronavirus crisis persists, this will be a real problem causing a lot of concern for a lot of our members. >> companies are trying to forecast what it is going to be like how much of this is about a supply chain issue how much of a concern, if you will, about a loss of demand in china, adidas sales are down 80% in the region. the biggest concern is making sure workers are safe. you you are seeing factories taking a long time before they start back up again. factories are making sure they follow all of the rules making

sure they have enough masks. if you've got 5,000 people working for you. that's 5,000 per day, 30 days. all of that on hand before you open back up again making sure your workers are safe is job one. make sure you've shipped a lot of goods out everyone knows this happens, every year, you stock up before the new year to get shipped out. when you come out, you are looking at the next season to get up and running as quickly as possible >> you mentioned the reliance in china on manufacturing talking to small business owners they did explore other options have businesses shifted supply chains and tried to be more reliant on places outside of china? >> the trade war accelerated that

the coronavirus will accelerate that even more that is something people are looking at >> i spoke to the ceo of one apparel company who has a large-sized operation for sourcing in china. he said, it is not easy to just move your supply chain relationships are there, control issues are there they've been set up for decades. how difficult will this be to get ramped up to the same level of production and efficiency as was there before >> you are right this is the point we kept making during the trade war is that it takes time to move supply chains it takes months or years for these partnerships to unwind and establish. this will take a long period of time more and more companies are realizing the more diversified they are, the better they can

survive this this is something we are looking at the big question is how long is this going to take we are going to see this last a couple of weeks or months. how long will it take before i can replenish in china even? a lot of stores there have winter merchandize it is going to be spring how do you get those stores equipped >> i cover a lot of the restaurants and saying if you don't go out to eat or drink, that is a missed opportunity for them do you look at any brands and say they are better insulated? do you go out and do this once this is all over are there some brands better positioned than others >> a great question. brands are trying to figure out different scenarios that will position them better you mentioned the trade war.

the trade war gave companies a lot of opportunity to develop these war rooms to figure out different scenarios. a lot of it is information we don't know how long will these last >> before we let you go, there is a number of folks who want to see from a policy standpoint what can be done from the u.s. side of things. >> the first thing we do is tell administration to reduce the tariffs. we are still paying 25% on the backpacks in that report we saw earlier 7.5% on most clothing, half of our footwear that is an extra cost we don't

need to be paying right now. job one, get rid of the tariffs. these extra penalties that are really attacks on american consumers. >> thank you very much of course, kate rogers, great reporting as always. thank you for that coming up, protecting the planet one coffee at a time. why mcdonalds and starbucks want you to return your cups and what they plan to do th story and otp orwi ehae"eadlines when "wlddexcng comes back after this mmm... good. so i've spent my life developing technology to help the visually impaired. we are so good. we built a guide that uses ibm watson... to help the blind. it is already working in cities like tokyo.

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stay two nights and get a free night for your next stay. one night, two nights, free night. book now at bestwestern.com. >> welcome back to the show. that is a live shot of 30 rock in midtown just a little ways from what is happening in times square. winter in new york is a fabulous thing. let's find out what you'll be talking about today with

trending stories frank holland is here with those. trending, space travel all kinds of stuff >> this story is out of this world. check this out trips to space that could be a reality sooner than expected spacex announcing it is partnering with space adventures to send up to four people up to o orbit to take place in 2021 or 2022 to take place on a modified aircraft it will circle the earth several times. i'm in a thing like this, you don't know if it will continue being offered. if you have a chance to go to space, you got to go >> i'm a risk taker. i don't know that i would be one

of the first persons to go up in a space craft. >> bunge cord, no. a billion dollar business, 100%. >> i've jumped out of a plane before but i don't know about space. >> i don't trust a cord but the billion dollar investment. i trust that speaking of the earth and saving it, mcdonalds and starbucks funding pilot programs at two shops equipped with smart cups for tracking customers will dispose at specific collection sites where they will be collected, cleaned and reused >> i kind of like this but i am concerned about the sanitary element.

you cannot control what that reacce reaccept al has been through or done >> we use reusable items all the time silverware, glasses. it is pretty easy to clean these and get them back to you >> as long as the supply chain goes through that particular restaurant at one point that is accountable, i'm okay with that. if people bring their own, i get a little weirded out a bit >> usually you and i are on the same page. we are on the opposite spectrum. >> i agree plastic waste is a huge issue >> anything about sustainability is going to be popular and it is good for the planet. a little scandal here, lebron james is weighing on the

houston astros cheating scandal. i know i don't play baseball but i do play sports i know if i learned someone cheated and it cost me the title. listen here, commissioners following the decision to not strip the astros of their title despite the scandal. >> the reason why, if you are not an astros player and this is not about those that fell victim pretty much every player has been speaking out in force about how disgusted they are in this whole thing. >> i've heard them i get it modern day baseball was built on

cheating if it wasn't for them, i don't know if they'd get salaries or if teams would exist baseball has a lot of foundation in cheating. whether gum on the bat or pine tar, it is part of the game. >> some of those but using video cameras to steel signs and signal people, that's different, right is. >> what is worse, performance enhancing or stealing signs? >> they've already enforced performance -- we could go on all day. >> hopefully tomorrow, we'll circle back. coming up, softbank is borrowing about $4.5 billion we'll tell you why futures are pointing to a positive open on wall street you can see the dow open up about 60 points, s&p by about six and nasdaq about 30.

you can watch listen or watch live othn e go with the cnbc app. "worldwide exchange" is back in just a moment. can we go get some ice cream? alright, we gotta stop here first. ♪ ♪ from smarter atms, to after hours video tellers ♪ ♪ comcast business is connecting thousands of banks to technology that turns everyday transactions into extraordinary experiences. hi there. how are you? do you have any lollipops in there? (laughing) no, sorry. we're helping all kinds of businesses go beyond customer expectations.

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welcome back a couple of analysts calls tesla shares up 7% pre-market. this helped along rising the price to $928 from $729. they expect them to achieve the same increase in storage in electric vehicles. upgraded and shares up 1.5% pre-market headlines you need in 60

seconds. softbank plans to borrow $4.5 billion the loan will be used to boost its cash on hand struggled to find outside investors for the vision fund. active investor has called on the company to increase stock buy backs. alphabet is cutting to its company. ceo is under pressure to stem losses from companies, quote/unquote other bets including self--driving cars and balloons that provide internet service. a group of oracle employees are calling on founder to cancel a rally for president trump.

they say elthe support misrepresents the company's diverse views. stocks closed well off the low of the day and the nasdaq inked out a gain fed minutes which will be closely watched amid rising concerns of growth joining me now, head of fixed income thank you for joining us let's talk about whether or not this is important right now. the overall picture for interest rates. what is it telling us about the current state of affairs we've seen that flight and rates move lower we haven't seen that move to credit markets when we saw and heard the headlines, we saw equity sell

off taking that quality. month to date, we've seen that come back to credit markets while rates stay low >> what is driving that and what is moving people back to the other markets with the risk out there? >> we saw a big move to cash last year. we saw significant buy of high grade. three of those weeks would crack the top five in terms of demand. a couple of different factors in terms of credit. the u.s. economic back drop. people are more comfortable in a low-yield environment. we are seeing that flight to quality spill over to credit the other component at play is we know there is a zero bound policy in order to capture that

term >> you mention the high-quality stuff. we are seeing a similar story play out in the high yield is it okay to say people are safe to go out on the risk given high yield and where treasuries are right now. >> we've been a little more cautious through november, high yield really underperformed. the overall thinking is if you can't get your cooperations right now, how are you going to get it in the down turn. for those facing problems, we've seen this fall off the cliff we've been dialing it in we've seen the same recovery and yield but we are a little more cautious >> how much of that asset price

rise that we've seen are due to policies of the fed. european central bank. other central banks as well. is it fair or not to say that these are the primary driving force? >> they've been significant influencer as we push liquidity into the system as well as the growth profile as we put on the financial stability hat of the fed, they are thoughtful about what that means and what system stability looks like we are watching coming out of the minutes today is what some of those uncertainties are and how they'll continue to monitor the inflation prices we'll see going forward. >> before we let you go, where would you be putting money to work in that fixed income market >> we are comfortable with the carry trade. we think you have to be a little

more diversified we are looking at unis and mortgages and to compliment some of our credit risk exposures >> please come back for more on this >> thank you stock futures indicating a positive open. "squawk box" picks that up and begins right now growth in new confirmed coronavirus cases slowing but now new questions about transparency democratic candidates l ves and mike bloomberg's first appearance from the debate stage. speaking of poll sicks, oracle chairman facing a protest from his own employees over a political fundraiser details straight ahead on wednesday, february 19, 2020 "squawk box" begins right now.

>> good morning. welcome to "squawk box." live from stage, star of stage and screen, kelly evans. are you still doing the exchange later? >> are you >> i have. >> i am. tried to keep the seat warn. >> kelly evans, star of the exchange here today because becky is off. you have a long day. >> it is not that long >> liz young probably has a longer day >> i have to go to dallas. >> really? >> you are directing strategy at bn