welcome to "street signs." these are your headlines $300 billion is wiped off the stocks as the selling intensified in europe. luxury and travel stocks bear the brunt of the decline while investors scramble to find safety in gold and treasuries. italian authorities scramble to control the spread of the worst virus outbreak outside of asia eu economy minister tells cnbc

he believes authorities are in control. >> there is reason to have confidence in institutions and italian authorities. european union is perfectly confident on what the italians are doing. but i repeat, there is no reason for panic. and in an exclusive interview at the g20 in saudi arabia, u.s. treasury secretary steven mnuchin tells me it's too early to determine the impact of coronavirus on the economy >> in terms of the economic issues, it's tough to have strong predictions on the economic issues without being able to predict the health outcome. so i think we're going to need another three or four weeks to see how the virus reacts namaste, trump the u.s. president addresses a 100,000-strong crowd as he kicks off his state visit to india hailing the country's economic potential and touting a trade

pact >> we will be making very, very major among the biggest ever made trade deals we are in the early stages of discussion for an incredible trade agreement to reduce barriers of investment between the united states and india. well, a very warm welcome to "street signs. i want to kick off the show by bringing you some data out of germany, fresh numbers just hitting the tape that is the business climate index which has come in strong for the month of february. the business climate index came in at 96.1 that was ahead of forecasts of 95.3 the current conditions index came in at 98.9 for the month of february, also ahead of expectations for 98.6. so both those components coming in strong for january. they did revise the numbers for current conditions the january figure revised to

99.2 the business climate index revised to 96. the commentary coming out of germany's ifo, the economy seems not to be affected by coronavirus. interesting to hear that, of course, relative to what we've heard from german corporates and corporates across europe throughout this reporting season of course this is early days, but it is noteworthy that this data has come in stronger than the market expected. in particular after last friday's pmi data came in stronger than they were expecting for the most part. but the question, of course, will the markets put a lot of emphasis on this data given it is still very early days terms of coronavirus now, let's get out to my colleague annettea viceback who covers the german economy. contextualize these data points for us the ifo numbers coming in stronger than expects, pmis

stronger than the market expected but is this an optimistic encouraging signal for the german economy >> reporter: well, actually one has to take that as it is. it's not a leading indicator as such that the questioners will take some time ago so the cutoff date, i'm not really sure about it but it would have to be a week or so ago when the coronavirus was still different. now with it moving faster and we see that it has contained also in europe, i guess the outlook for the german economy will worsen given our dependence on foreign trade. but to, perhaps, get a bit more context here, january was recreating especially for the service sector this might have changed now as well a bit

then towards the end of january, the mood kind of lifted again that the economy could actually do better than previously expected so in general we are still having a more or less industrial recession in germany you also look at the component of the ifo that looks into the different sectors of the economy. they look into the industry sector, service sector, trade sector for many months the industry sector was in contraction. and i guess this is still holding true for this month's ifo reading. i guess it is pretty much a surprise, an upside surprise we have the business climate as you were saying stronger than reuters poll and also the expectation component comes in quite a bit stronger than people had expected and the current condition was more or less with what reuters is expecting or the poll is

expecting. so i guess, well, it's early day to say the economy is regaining traction we had some early signs, but the coronavirus outbreak also now in europe could actually be very much damaging to the german economy as well. and also given all the disrupti disruption the supply chain is facing i've just read another analysis it's most likely only in march when the german economy or the european economy will really feel the brunt from that coronavirus impact on the economy in asia. and most likely also in germany. i think we just can't judge the impact as of now >> i think the big question here for the german economy that nsters are all asking is if we do see this deterioration in the data come through, will this prompt more of a fiscal policy

response from german authorities? what are you hearing around this topic? the worst the data gets, does that increase the chance we see more fiscal spend come through >> well, actually i think the discussion has started that we might get something. i guess the ministry of finance which is under the helm of the social data, they are preparing some sort of package if that will be a big bang package, that remains to be seen clearly i think the mantra or the rule which we're having here in germany for many years is still intact that unless the labor market really deteriorates, we'll not see a lot of fiscal spending and deterioration from that balance rule which is also enshrined in our constitution that to be fair it's not just something they can just change because the economy is doing a little worse. but having said that, i guess

there will be some more spending also perhaps under the name of climate change and climate change package so there could be some support from the state for the economy, but don't expect, like, a big bang approach. i guess it's more interesting what the ecb might actually do if the economy turns south now with a big step. because the ecb should and has to act in case there is substantial deterioration of the economy also in europe from that coronavirus outbreak and christine lagarde will perhaps face a tricky situation when the next policy meeting will be coming up in march only. but in march will clearly have a vision of how bad the impact might actually be also on the europe economy by that as well on the inflation expectations with that, back to you

>> thank you so much for putting these ifo numbers into context for us all right. let's give you the latest now on italy. italy has imposed a series of quarantine measures on ten towns after reporting a spike in coronavirus infections authorities have confirmed that a fourth person died from the virus overnight. there are 152 confirmed cases. the regions make up around 30% of italy's economic output while the affected towns are just south of the financial hub of milan. eu economy commissioner says italy can deal with the coronavirus threat speaking to cnbc at a meeting of g20 finance ministers in riyadh, he said authorities in the country have the situation under control. >> there's absolutely no reason for panic. there is reason for solidarity for the two victims that we have

for coronavirus in these weeks two victims. and then there is reason to have confidence in institutions and italian authorities. they know the situation. they are taking the good measures so the european union is perfectly confident on what the italians are doing, but i repeat, there is no reason for panic. and the situation is very matter of concern for the spread, but i repeat, we had only two victims. this is the contradiction of this but demonstrating to be rather less lethal than previous one. but anyway, it's to the health authorities to establish what has been done and the european

union is -- continues in contact with italian authorities and full confidence of their decisions. >> well, you heard there from the eu economy commission their there is no reason to panic despite this outbreak in italy but markets are taking a very cautious approach this morning a massive selloff underway across the major regions here in europe italy, no surprise leading the way lower. the ftse down 4% on the back of this spike in cases in italy and the quarantine measures in place now from the italian authorities to try to control the outbreak south korea and iran also making headlines with a spike in the number of coronavirus cases coming up. the dak trading 3.5% lower major selloff across europe this morning. in terms of sectors, the airlines, the luxury sector, and autos, basic resources all taking a pretty big hit this

morning. travel measure down 5% if you look at some of the individual movers, easy jet stepping lower this morning. easy jet down more than 11%. so investors seem to be really changing their tune. we were asking last week were investors being complacent about the risk of coronavirus. now it feels as though the fear of the coronavirus epidemic turning into a global pandemic are taking hold and investors are reassessing their portfolios in these stocks not only exposed to china but the regions now being affected outside of china and the broader china region in asia let's get out to claudia pensotti who joins us from milan, right in the epicenter of where this italian outbreak is taking place walk us through the latest of the northern region of italy and the policy response we've seen from the italian authorities

>> yes well, to start off with the area being affected, there is a lockdown on about ten towns. it's about a ten kilometer area south of -- southeast of milan the measures that have been put into place seem to be comforting somewhat you can see also by the reaction that the markets are having, we pretty much opened up what we expected to open seeing the italian market down in line with the other european indices. in terms of what measures have been put into place, first of all there's been a lot of coordination on the national level, regional level, and city level. so all these authorities are cooperating very well. the measures are basically the important thing that schools have been closed, universities have been closed and in the piedmont region as well

it's being requested that people try not to meet in groups. bars are being closed from 6:00 in the evening until 6:00 in the morning. so clubs, public places. the cathedral in milan is closed milan's biggest theater is also closed you're seeing gyms closing but you are still seeing public transportation working obviously more traffic because people are trying to use public transportation less. people are still going around and going about their business trying to not get into panic mode over the weekend, of course, you did see the obvious concerns coming up for families and for people scrambling to get food supplies just in case a lockdown situation were to happen, in fact, in the middle of the city. so of course food running out, supplies running out, hand sanitizers, masks, pasta, bread. you know, all of these supplies

obviously running very low e-commerce being difficult to get. it's obviously been a big pressure on the system if you are trying to use e-commerce it's been difficult to get things sent home so you are seeing this is because we're at the this becaur at the very beginning. people, probably because we are accustomed to the idea of what can happen with the virus, seeing what happened in china, people are being very careful about trying to pay attention and do as they are told in order to try not to get to that lockdown situation as you did note at the beginning of our conversation is there is one more death that has been announced. now we're at four. the number of total cases hasn't been specified in the last hour, but it is still around -- last number was 152 they will be sending officials to italy there's a meeting scheduled between the prime minister and the civil protection agency today at 11:00, so in about 45

minutes. we'll get more information about what the authorities are planning to do lastly, of course, the economic impact the gdp, of course, in this area is about 30% of total italian gdp, so disruption to supply chain, disruption to business here we have seen events being cancelled like fairs milan is an international center for fairs. the eyeglass fair has been canceled it was to begin in a few days. so, the length and the depth the impact of this will have will be the question that's what we'll be watching. it remains an unpredictable situation. i guess we could say you're not seeing panic as of yet, but clearly milan is coming to terms with the fa account that this region, this area is now the biggest cluster of this virus in

europe the days going forward will not be easy. >> claudia, thank you for fleshing it out for us, helping us understand the situation on the ground over in milan that was claudia pensotti with us on the phone. coming up on "street signs," mustier says no to hsbc top bank job. more after the break do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

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welcome back to "street signs. well, i think it's fair to say coronavirus is top of mind for investors across the globe this morning. in the asian session, we saw stock markets pull back, in particular south korea you can see the kospi down nearly 4%. over the weekend south korea saw a spike in the number of new cases reported and investors there reacting accordingly the shanghai composite holding up a little better, down a third of a percentage point. overall, investors taking a much more cautious approach now to the coronavirus outbreak and the potential implications for the economy. let's take a look at u.s. futures, what we're expecting to see there.

the dow is looking at a 700-point drop at the open, so major pullback expected for wall street just as a reminder, we did see u.s. indices pull back last week breaking a two-week win streak but losses this morning expected much, much more severe on what's on the back of a severe trading session in europe. let's take a look at volatility, what the vix is telling us the vix spiking to 23 this morning. the 22.5 earlier on was the highest level since august 15th, so you can see that we are expecting quite a volatile session to come together today across the globe and no doubt what is giving investors a particular caution is what's gone on in italy over the weekend with the spike in the number of coronavirus cases in the northern parts of that country. on that note, let me bring in lorenzo codogno. thank you for joining me this

morning. >> thank you >> let's kick off with the actual -- the geography of where the outbreaks have taken place in italy the two main outbreak areas are relatively rural what does it mean and what do we know about why the outbreak happened in two parts italy that are not hubs for the flow of international visitors and is that what's triggering such worry across europe now across europe >> that is part of the problem, i would say, because it's not completely clear what was the origin of that outbreak. certainly the two areas outside major cities, so it's not central, so to speak, so you wonder why it has happened there. some say we have discovered the outbreak in these areas and the number of reported cases have

increased sharply because we tested the population in that area, so you weather whether the disease is in other areas but we haven't tested these other areas so i think it's a bit of a concern, yeah. >> in terms of the policy response, lorenzo, we heard from pala suggesting there's no need to panic, we heard there's a clear will from governments to react if the coronavirus outbreak persists, but how much can policy actually do to stem a downturn of this nature? >> first of all, the policy reaction by the government seems to be appropriate and relatively timely, i would say. although it was not set at the beginning to stop the contagion. this is in terms it of the reaction in terms of health and security in terms of the policy reaction

to support the economy, the problem is that this is mainly a supply side story. in other words, leaving aside some disruption in tourism and the economic activity due to a collapse of demand, the main problem is really related to the supply chain so, this can definitely disrupt the supply chain globally and specifically in some areas and there's not much both fiscal and monetary policy can do to restore supply side stories. >> lorenzo, in terms of the potential impact on the italian economy, the economy was already in a very fragile state, stagnating, teetering on the brink of recession do you think this tips italy into recession in the quarters to come? >> i think it's very likely. keep in mind that although, again, the outbreak was in a relatively small areas, these areas are very close to big

cities and now there are reported cases throughout northern italy. today throughout northern italy schools, oouruniversities, most oftentimes are closed and major events have been canceled. significantly it will cause disruptions and reduce economic activity only the two regions involved where there has been a clear reaction accounts for one-third italy's gdp. you can imagine, you know, that the -- inevitably a week of closure will be felt in gdp numbers. >> lorenzo, appreciate you joining me this morning to weigh in on what is a dynamic situation in italy >> let's take a look at

safehavens, where investors have been putting their money on the dollar trading on the back foot of the yen the japanese currency acting as a safehaven for investors. the dollar trading a little stronger than the swiss franc, up 20 bases points i want to bring in david to weigh in on this morning's market moves and, more broadly, how we should think about investing. the dollar has been a safehaven of choice for investors throughout the course of this coronavirus outbreak is that where they should put it in something more comfortable to ride this out? >> that's one of the directions. a lot of that has been on the back of u.s. treasuries because it's not just the dollar, it's the treasuries that have been very safe. we're seeing a lot of money coming out of equity and into more long-term, stable type investments like bonds so, the dollar has obviously been one that has been really strong for us, but you saw that

the yen is up a little bit today but we're seeing a lot of coronavirus in japan people are really struggling right now. you look at the equity market this morning it's down across the board and dramatically down. so people are looking for safehavens and it's a tough find. >> dramatic is the best way to describe the selloff we're seeing this morning. over the last couple of weeks, markets have held up relatively well equities trading at record high across europe and the u.s. is europe a turning point, are we going to see a change in the narrative about the way narratives are i think thissing about coronavirus? >> yes but i think it's been more than just italy south korea has been a big push, too. i have friends in south korea. i used to live where the outbreak has come out. i've been talking to people over there. they've canceled churches, they canceled work, they canceled people leaving their homes and i think that south korea is

far enough away that a lot of times we don't think about that and the significant number of cases there. combine that with italy, i'm flying to southern france in a few hours, it's close to the italian border i have a little worry so i wonder if i should be taking precautions for myself as i look at traveling that slows down everything we've seen airlines down today a lot is because people like myself really don't know if they want to get on an airplane and go somewhere i think it's spreading enough right now and it's getting out of control i saw an article this morning about they possibly might have to cancel olympics in japan. this is a big thing. and it is growing fast and i don't think we can underestimate the impacts right now. over the weekend it has blown up, even though we've seen a lot of cases and there's been a lot of stuff going on, as it's spread around the globe and not just a case here or there, but all of a sudden there are these blossoms, it has really made a

big impact. >> i think for the most part investors are been expecting a v-shaped recovery, some are expecting a u-shaped recovery. is that the correct shape to think about and we're going to see a further downward trend before we see the upturn >> yeah, it seems more like a kliff right now, doesn't it? >> we're going to see a pretty sharp selloff. we have a lot of clients doing business internationally and we get a good feel of what currency looks like one thing we're seeing is a lot of our clients are struggling with the supply chain out of china and not only for finished goods but for products they use in manufacturing items outside of the united states that being said, we're seeing a lot more economic activity in places like mexico that have not had a lot of impacts by the coronavirus.

big manufacturing base and they have a lot of capability out of mexico we're seeing some of the -- -- some movements that direction where we're seeing more money moving towards mexico and a lowering of interest rates to try to stimulate their economic activity as well. >> very interesting. not a total lose/lose when you think when - >> it depends on where you're at in the world. >> david, appreciate your thoughts this morning. david pierce, capital markets. we'll squeeze in a quick break. coming up on "street signs," g-20 finance leaders warn about the pose of the rick of coronavirus. we'll head to riyadh with more after the break. equities stand 3.4% lower for the stoxx 600.

welcome back to "street signs. i'm julianna tatelbaum these are your headlines $300 billion is wiped off the stoxx 600 as the selloff intensifies in europe. luxury and travel stocks bear

the brunt of the decline while investors scramble to find safety in gold and treasuries. italian authorities scramble to stem the spread of coronavirus outside of asia, quarantining northern towns. they believe authorities are in control. >> there is reason to have confidence in institutions and italian authorities, european union is perfectly confident on what the italians are doing, but i repeat there is no reason for panic. >> german business confidence arises in february as the ifo beats expectations the economy seems unaffected by the coronavirus. and namaste trump. the u.s. president addresses a 100,000 strong crowd as he kicks off his state visit to india, handling his country's economic potential and touting a trade

pact. >> we will be making very, very major, among the biggest ever made, trade deals. we are in the early stages of discussion for an incredible trade agreement to reduce barriers of investment between the united states and india. well, i think it's fair to say a substantial selloff is under way here in europe the dax down 3.8%. in italy, the ftse leading the way lower. that means the benchmark is down 4.3% this amounts to more than $300 billion worth of losses shaved off the european stock market this morning investors taking a much more cautious note to trade than they have over the last few weeks as the outbreak in italy has really raised concern alongside the outbreak spikes in

cases in iran and investors adjusting their portfolio and trade strategies accordingly the stoxx 600 did pull back last week as did u.s. indices but nothing like the scale of the pullback we're seeing this morning. let's take a look at where this money is going it's clearly coming off the table in terms of risk and equities and, for the most part, going into bond and gold and the dollars. here's a look at ten-yearyield across europe this morning the german tentati-year trading down the gilt is trading at 0.5%. in france the ten-year trading at negative 0.26%. a very clear risk-off trade coming through this morning. let's take a look at sectors, where investors are pulling their money from red across the board no sector is escaping the pullback this morning. the best performers are down 2%.

if you let that sink in, telecoms, utilities, media, key safehaven sectors are still seeing losses this morning the big hits coming in travel and leisure, down 5.6% autos, technology, oil and gas and banks all down more than 4%. massive losses coming through for europe this morning. fairly indiscriminate in terms of selling off but the more cyclical sectors are taking the brunt of the hit let's take a look at the individual stocks in the green, these here a every other stock trading below the flat line this morning. the airlines taking the brunt of the hit. ez share is down 12%

airlines seeing a massive change in direction wti down 3.5%. brent down 3.6%. despite the. know in oil and the benefit that would pose to the airlines it's very much offset by the downturn in demand expected for the airline industry gold, meanwhile, proving the safe haven of choice for investors, one of the safehavens, up 2.7% to 1687. let's take a look at u.s. futures. they are expected to -- u.s. futures are pointing to a very weak open for wall street. the dow jones looking at more than 700 life point drop at the open this negative sentiment stemming from the rise in reported cases of coronavirus over the weekend, expected to filter through to the u.s. g-20 financial leaders have warned the coronavirus outbreak could pose a serious risk to

global growth. ministers and central bankers agreed after a week in riyadh agreed to take action if the spread intensifies let's get straight to hadley from riyadh. walk us through what you heard from these financial leaders in riyadh around the impact of coronavirus. >> good morning, that's absolutely right and reflects the very rapid pace of the story. just 24 hours ago i had a chance to speak to u.s. treasury secretary steven mnuchin i asked him about the impact of coronavirus, i asked him how worried he was in terms of u.s. economy, potentially for the u.s. elections, whether or not the economic growth we've seen under the trump presidency will be able to hold until november 4th and what that could mean for the president. listen in specifically to what he said about coronavirus. >> no question this has been a topic of discussion here, as it should be, because this is a human issue that's impacting lots of places, including china

and other areas around the world. i would say in terms of the economic issues, it's tough to have strong predictions on the economic issues without being able to predict the health outcome. i think we're going to need another three or four weeks to see how the virus reacts until we have good statistical data. although the rate the virus spreads at is quite significant, the mortality rate is quite small. it's something we're monitoring carefully. i think one of the discussions we're having here is the country should be prepared, but i think we're at a point where it's too early to either say this is very concerning or not concerning. >> no doubt, you have a backup plan in your mind in terms of a fiscal response there, even just for a few weeks. >> no question about it. that's the message we have to the other countries and there's an agreement on that >> when you think about what

happens next with regards to china, obviously the last time we met we were sitting in doha and you announced phase one completion with the trade deal, that would have put you and your team in china in december. do you believe the chinese government knew about this danger >> i don't i think the chinese government reacted much quicker than they have in previous situations. we couldn't be more pleased we completed phase one. we also passed now the u.s./mexico/canada agreement in our congress both of these are quite significant to us economically the focus on the china deal was always implementing phase one. the good news is we're getting a lot of work done on that in the implementation phase and there's no question that china's major focus is now controlling the virus. and the approach of phase two will definitely slow down a little bit. >> we do understand chinese officials were aware of what was happening in wuhan in early december you don't believe they put you and your team in danger? >> no, i don't

>> it's a tough one for anyone sitting behind that kind of treasury desk, but at the end of the day, i thought it was interesting this was an announcement coming a week after when i was sitting at the munich security council, speaking to the managing director of imf, i said is it a downward to growth, she said we don't want to say anything to spook the markets. eight days later we're talking ten bases points in terms of that outlook, half a percent on china and steven mnuchin telling me we're looking at this in a two to three-week scenario we're trying to figure out what this will look like in a few days the momentum, the pace, the market moves over the last 24 hours since i sat down with him moving very, very rapidly. this is going to be cause for pause if you think about this in the political context. as you remember, the conventional wisdom so far has been that if that economy in the united states is still holding strong by november 4th, that puts the president in a very

good chance for re-election. one wonders what this is going to look like in the coming weeks. >> thank you for bringing us the latest from the riyadh -- the meeting of financial leaders in riyadh we now have a few fresh comments from steven mnuchin following hadley's interview with him. the u.s. treasury secretary this morning saying he does not expect material impact of coronavirus impact on phase one u.s./china trade deal. he says the impact on u.s./china trade could change, though, as the situation develops they'll have a better assessment in the next few weeks. so, he is saying at the moment, does not expect a material impact on u.s./china relations but they're monitoring the situation and we could have a better sense in the next few weeks. adding to the commentary hadley got for us in riyadh this weekend. well, talking bank krooel change, plenty of it the last couple of weeks. unicredit ceo jean pierre mustier has ruled himself out of

taking the reins of rival bank hsbc he was thought to be the ceo of the bank since august when they ousted john flynn. unicredit announced mustier is staying with the bank and fully committed to executing their new strategy hsbc is led by interim ceo, who is also contender for the permanent top job. in financial news, barclays has started its search for replacement for ceo staley they say staley is planning to leave by end of next year. he could stand down at the company's annual meeting in may 2021 sources close to the bank told the ft that the hunt for his successor intensified after uk regulators launched an investigation into his ties with late financier jeffrey epstein. we're going to squeeze in a break now, but coming up on the

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welcome back to the program. president trump addressed a crowd of 100,000 as he kicked off his official state visit in ind india. the america president spoke glowly of asia's biggest southeastern asia economy. we're live in new delhi. break it down for us what can we expect out of president trump's visit to india? >> reporter: well, a lot is on the table and up for discussion. thanks very much for that. i want to outline the key

takeaways from the addresses of president trump as well as prime minister modi that you were highlighting it was a big event now, of course, right now as we speak, president trump is on his way to visit the taj mahal president trump outlined trade, strategic partnership and scientific research. he spoke about how we're inspired, the two countries are inspired by a long-term vision, not short-term gains saying a lot, actually, with those words. also spoke about how india and u.s. are natural partners. not just in the indo-pacific because a lot of people think this engagement and this event has to do with enhancement cooperation and beefing up maritime security in and around the indian ocean and the indo-pacific region to counterbalance china's rising influence. so kind of managing expectations there, saying, look, this is a

long-term partnership and it's not just about indo-pacific. he spoke about how he believes the two countries can work together, bringing more peace and progress to the world. after he finished president trump spoke about how he will do a fantastic trade. he actually talked about that, i was reminded of the kind of approach he had taken to doing phase one deal with china. pretty much using the same words. we'll do a fantastic trade deal. but prime minister modi is a tough negotiator again, saying a lot there. finalized, a $3 billion deal in the area of defense and military hardware supplies, which again we expected. we're expecting some announcement with regard to energy cooperation as well we have the u.s. energy secretary in delhi right now, so they could be something coming out on that front, too culturally, i want to add, this is my final point, but cultural and traditionally he lauded india for the kind of

contribution bollywood films have made to the u.s. and cricket is a loved sport worldwide and india has produced first-class cricketers many are saying this is his way of getting closer to india and indians as he reaches out to that community that is, by the way, striving in the u.s. he wants to reach out to them and connect to them through this event. back to you. >> thank you for breaking it all down for us. makes me want to go out and watch a bollywood film after this. let's talk u.s. politics now. bernie sanders has cemented his status as democratic front-runner after a resounding victory in the nevada caucus the race is far from over with south carolina primary super tuesday just around the corner julie another man, teaching

fellow joins me around the desk for me thank you for being with me. bernie sanders didn't just win in nevada, but he won big. what does this mean for his prospects of winning the overall nomination >> you said it this was a huge victory for sanders in terms of the percentable by which he won by and also the fact he was able to show that he could really diversify his base nevada was the first state we had that had a non-white population voting. showed great diverse with union and nonunion families and this gives him a lot of momentum going forward for south carolina, but especially super tuesday. >> south carolina is crucial for joe biden, who has been underperforming. he did better in nevada than in the previous two contests but a lot hinges on this do you think south carolina is make it or break it for joe biden? what are the parameters we should be thinking about

>> for biden's campaign they're seeing south carolina as a must win. biden had disappointing results in new hampshire and iowa. he really needs to come out strong in south carolina his campaign has been promoting south carolina as a fire wall. he has polled there. he's doing well with certain demographics there but his lead has lessened quite significantly. he's leading in the polls but only by three to five percentage points >> bloomberg made his debut on the stage last week with his performance in the nevada caucus, most would agree it was an unconvincing performance. debating is not his strong point. what can we expect this time around because we have another key debate coming up on tuesday? >> that's right. bloomberg had a tough debate last week. not the way he wanted to debut he won't be on the ballot this saturday still in south carolina but will be on the ballot next week in super tuesday. he really needs a strong showing

tomorrow in the debate to carry on with the momentum he's gotten from his ads in the super tuesday states. >> bringing it back to bernie sanders, given the momentum behind him, i think everybody is asking about his electability versus president trump should he be on the ticket in the general election established democrats don't seem to want him on the ticket. do you think if it comes to him, they will coalesce and support him as the leader of the democratic party and what do you think voters will do if he's on the ticket >> this is a big question for democrats moving forward what nevada showed is bernie sanders will have a lot of momentum and there's a very strong likelihood that he will be the candidate and have the nomination in terms of electability, that's certainly been a concern for more established democrats there's been recent polls just from this week that does show sanders leading against trump in the head-to-head general elections by six percentage points for the popular vote and

having a edge over key states in michigan those concerns about electability, everyone will be watching the polls to see how that plays out in terms of the democratic party moving forward, there needs to be a reckoning after super tuesday with the direction this nomination is going to go. if sanders is the likely nominee, needing to find a strategy to unify around him, kind of stop the hand-wringing and find a message they can get around. >> all right a lot to watch this week thank you very much for breaking it down, setting the stage for us julie another man, teaching fellow in politics and international relations at ul. let's take a look at trading markets. a major selloff under way across the regions in europe led to the downside by the ftse over in italy, that index down by 4%. the dax down 3.5% alongside the

cac 40 and ftse 100. fears around the coronavirus turning into a global pandemic seems to be driving trade this morning. this comes after a steep selloff overnight in south korea, in particular, which saw a spike in the number of reported cases in that region. let's take a look at sectors. we are seeing the brunt of the selloff being borne by travel and leisure, bake resources, auto, oil and gas. those cyclical sectors telecom, utilities and media holding up better but still down more than 2% a quick look at u.s. futures the dow looking at more than a 700-point drop at the open that is it for today's show. i'm julianna tatelbaum thanks for watching. "worldwide ehae"s nt.xcng iupex

it is 5:00 a.m. at cnbc global headquarters. fears spread over the coronavirus once again take center stage gold and treasuries in rally mode as investors flee to safe haven assets oil prices also sliding today. it is monday, february 24, 2020. the dow will open by about 700 points and "worldwide exchange" begins right now