quarter hit gdp. the important thing is we have to get cash-strapped companies through this period. >> david, really appreciate your thoughts stay with us more conversation coming up. david owen, chief economist jeffries international. italy unveils a stimulus package. we'll discuss the details after the break. can we go get some ice cream? alright, we gotta stop here first. ♪ ♪ good morning. welcome to "street signs." from smarter atms, to after hours video tellers >> i'm julianna tatelbaum. ♪ ♪ comcast business is connecting thousands of banks to technology >> i'm joumanna bercetche. that turns everyday transactions into extraordinary experiences. >> stocks bounce back while u.s. futures point to a higher open hi there. how are you? do you have any lollipops in there? as bets on coordinated central bank action. (laughing) no, sorry. chinese equities shrug off we're helping all kinds of businesses go beyond customer expectations. how can we help you? contraction in manufacturing in dealing with our finances really haunted me.ttle cranky. thankfully, i got quickbooks,

mainland china in february markets need to be calm about the coronavirus outbreak. and a live bookkeeper's helping customize it for our business. >> we need to go back into the (live bookkeeper) you're all set up! facts and the figures and based (janine) great! on that decide (vo) get set up right with a live bookkeeper with intuit quickbooks. the international air transport says the endemic will slash global airline profits by $1.5 billion thisyear. french finance minister bruno will have a bigger impact on markets than previously thought. good morning, everybody. lots to get through today. i want to bring you data we're getting out of the eurozone. probably a little outdated given everything going on with coronavirus but the february

final pmi came in at 4.2, the final numbers versus the flash estimate of 49.1 slightly higher than the initial estimate for eurozone pmi numbers. worth mentioning, none of this data would have taken into consideration any of the impact from coronavirus most of the data was collected before february 21st even though there were signs things were beginning to stabilize in the eurozone, pmi manufacturing numbers headed in the right direction. i have a feeling the march numbers are going to be a lot worse than what we got for february right now that is the picture for the eurozone pmi manufacturing numbers. meanwhile, u.s. futures are sharply higher as investors like the coordinated response on central banks on the back of last week's steep selloff and wall street's worst selloff

since 2008 they have stepped in to stabilize the market if coronavirus continues to rattle investors. julianna will give us a full breakdown of what's going on in markets. >> european markets are on the mend this morning. the stoxx 600 trading 1.5% welcome back to "street signs. some news out of north korea higher the stoxx 600 ended 12% lower, they say they will chatter one flight to aloe foreigners to worst performance since october 2008 central banks in focus while leave amid coronavirus outbreak. investors make bets around the the flight for foreigners will stimulus we could see come through from central banks depart on march 6th and wi around the world overnight we saw data overchina that's word out from north korea doing their bit for coronavirus. on the manufacturing but this is obviously a couple we saw record low output from of hours after doing multiple china. missile launches a few hours from the fed, the ecb and ago. we'll keep an eye on the

central banks more broadly geopolitical developments out of we are seeing a rally in north korea as well. back to to europe, italy european markets we're seeing a little pullback announced a 3.6 billion euro from the earlier highs seen this stimulus package to limit the morning. 1.59% is the number right now. economic fallout from taking a look at the different coronavirus. the economy minister said the measures will include tax credits for companies that have regions, the dax, the german suffered a 25% in fall in index up 1.15. revenues as well as additional funds for the country's health german's economy minister said service. opposition lawmakers say the they must not allow the virus measures don't go far enough the leader of the far right party has demanded at least 20 affect them. the ftse mib down 0.65 after billion euros in additional spending as ever, the story has become politicized. claudia joins us more from stimulus was injected to milan. tell us more about this package unveiled, italy being one of the mitigate the impact of the virus on the economy overall green for the regions in first to come out with europe let's take a look at the sectors, what the breakdown looks like coronavirus package. >> this package, it's too early at one point we saw green for to tell if it will be enough but every sector mixed picture. 3.6 billion euro stimulus for travel and leisure, auto, banks trading in the red tax credits for companies lose

oil and gas, the clear at least 25% of their revenues outperformer that sector is up 2.7% alongside a bounce in brent and wti. further tax cuts in addition to 4% higher. chinese factor activity payments for mortgage payments and decisions that had been made suffered its sharpest fall in to at least sustain the red zone february as the coronavirus outbreak hit the world's second and extra cash for the health system because that is where the biggest economy. money needs to go in order to the manufacturing pmi slump to help prevent the limit of help id lowest reading since it was first launched this weekend showed the health system can give we've gone from 152 cases seven manufacturing activity shrank at days ago to 1,577. fastest ever pace. chinese stock markets have 83 people have healed. shrugged off the dismal reading. 34 are lost their lives. i have to say, i'm a little keep in mind that 40% of the surprised to see how well people that do contract the chinese markets are performing in light of the really dismal coronavirus end up needing medical help that's what the authorities are data we got. trying to step in to solve manufacturing pmi 37 over the it's not so much the risk of getting the virus as much as the weekend, services number at fact there's a higher chance

29.6 i didn't even realize we could you'll need medical help get a 20 handle for these pmi in order to try to curb the number of people trying to access these hospital numbers. >> that's exactly what i was facilities, they're trying to saying all this morning limit people's movement to try and reduce the number of it's really what's going to contagion. once again this week, this is happen post covid-19 the first monday morning, second as you were talking about at the monday of these measures that top of the show, central banks will be there for the market and limit people's movement that is in place as you can see, of course our chinese forces a takeback market has been affected by message to, you know, their that the italian market is in hearts, i guess because we have, negative territory with the of course, infrastructure names barn really popping on a day like banks taking the hardest hit it's too early to tell whether this, especially on the back of that package will be enough. clearly the situation is china's national development difficult but people seem to be commission, you know, talking about at this point speedy reacting with calm and work even infrastructure project pickups from home if not allowed to go into their offices i think really about china, coming back to normalcy at some back to you. point and picking up the pieces, shifting to france, the pursuing all these infrastructure projects. that can, perhaps, explain the louvre decided to close its

strong gains we saw especially doors. confirmed cases hit 130 over the when it comes to property names and steel makers as well weekend. the closing was announced after when we talk about some paris banned all indoor public infrastructure names, especially gatherings of 5,000 people following an exceptional defense in the shenzhen area, they were limit up counsel meeting chaired by president macron himself. chinese currency ending the day at a three-week high against the french president bruno greenback popping by close to lemaire expected a drop of 1.1%. 3.5% against the greenback as well in the meantime, as we are he says it's too early to seeing the markets betting on, of course, this big pickup in provide fresh estimates. economic activity down the road charlotte, you've been following the developments in france and stimulus hopes out there, talk us through some measures there are, of course, the voices announced by france as well. >> there was a cabinet meeting talking about how china goes back to, you know, factories, over the weekend and they announced measures of banning public gatherings of 5,000 their offices, there could be people or more in confined pickup in confirmed coronavirus cases as well. something we need to bear in spaces mind, on top of that, of course, advised people not to travel the spillover effect in the abroad if possible regional economy as well as the global one in the meantime, i do want to marathon in paris had been

talk about hong kong specific canceled, 44,000 people. the largest book fair in paris story over the last hour or so january retail sales numbers was canceled while continuing to contract trade fair with 25,000 visitors down 21.4% later in march has been of course, this is a city that canceled all of these things are happening. is not seeing a lot of shopping paris fashion week is still going as usual because -- well, not just about a few side events were canceled coronavirus but also because of but fashion week going as usual. the months long anti-government protests and the month of february could actually see some >> the show must go on. >> exactly worse numbers down the road. it's a bit of confusion and we something we need to brace ourselves for. see the louvre closed yesterday back to you. >> certainly something we'll be and today still closed discussing on "street signs" in tomorrow museums are closed on 20 minutes time. thank you for the breakdown of tuesday in france. what's going on in china there's a bit of confusion from the w.h.o. director general the public and a bit of anxiety. has told cnbc that markets should calm down >> lemaire was talking about a global or at least coordinated despite the organization raising government response. the global coronavirus alert do you think we're getting to the point of eurozone money? hadley, you conducted that

interview. one thing they stopped short of raising it to the level of >> it's one thing putting cash pandemic do you think that's because they have an awareness if they would and helicopter money raining raise it to that level of over the economy, so the first thing is much more of a fiscal pandemic, it would raise extra response what the italians have done is exceptionally sensible but a fear in the markets. step only in that direction. >> it was a fascinating you think about the hits gdp in conversation and quite wide rife ranging. the sense i got from him is he the second quart quarter for much of europe could be 1%, 5% still does not know and the data does not suggest we're on the threshold of that pandemic but he did say the window of containing this virus is it's helpful but not enough and narrowing and he is concerned about it needs to be coordinated. he also spoke to the clarity, we need i much more coordinated frankly, he was getting from various nations or potentially the lack of clarity when we talk about a country like iran, the response >> are you expecting anything out of this ecb meeting on the w.h.o. will be sending a team stimulus front into iran to meet with >> it's quite possible she has to talk about liquidity officials. so many questions about and talk about -- they can reporting on iran versus what stretch the envelope and buy the state media is saying the number of deaths, those bank bonds, that's possible. in terms of other measures, it's infected lots of questions about what the

chinese knew and when they knew more about fiscal policy, i it i asked him about the united think. >> thank you david owens, charlotte as well states, is u.s. president donald trump doing enough when it comes thank you for breaking down to coronavirus what's happening in france. he said each state needs be stay with us doing what they can. coming up in the show, we're he said that about italy as going to talk about hong kong well listen in to what he said retail dropping. i can lean on people, specifically about the markets >> we need to focus concerns an and that for me is what teamwork is all about. you can't do everything yourself. worries what we should be but we should calm down and work. you need someone to guide you and help you make those tough decisions, and stigma should be avoided, that's morgan stanley. which we're seeing and which is dangerous. they're industry leaders, but the most important thing is this virus is everybody's enemy. they want to do it the right way. everybody's enemy. as human beings, we should stand i'm really excited to be part of the morgan stanley team. in unison. i'm justin rose. discriminating and stigma is the we are morgan stanley. worst. it's more dangerous than the virus itself thank you. >> so, in terms of that -- the w.h.o. has said this should be a reality check for governments globally do you believe global financial

markets need a reality check given what you've just said about fear and panic >> yes, global markets, yes, everybody, by the way. they should calm down and try to see the reality. as you said, reality check facts, figures and, you know, decide based on that we need to continue to be rational you know, irrationality doesn't help we need to go back to the facts and figures and based on that we'll decide >> so, the w.h.o. director-general saying markets need a reality check, they need to focus on facts and figures, they need to be more rationale at the same point he was frankly unwilling or unable to tell me what's the threshold for pandemic what could be the signal we've gotten past the point of no return he also mentioned within that framework again and again is we need to avoid media hysteria

on that stage, member of the world food program, humanitarian, refugee agencies, and folks that deal with humanitarian crisis on a daily basis. i got disgruntlement that coronavirus was taking so much away from palestinian, refugees, burkina faso, these areas they've been working to get donations from different governments. i said, if you have a coronavirus out of control, the governments will have to be supporting efforts to combat that effort and it will take away funds and time and focus away from the issues you're here to talk about. they said, yes, it's deeply concern given the crisis facing the world today. >> no doubt. one thing i want to point out is it looks like the markets are listening to w.h.o. director-general because

everything is trading in the green. >> we'll take what we can get. >> thank you for the coverage out of the middle east let's bring in jeffrdavid owen this is coming at a time when welcome back to "street the world was set back by trade signs. i'm julianna tatelbaum >> i'm joumanna bercetche. wars we were just beginning to turn a these are your headlines new page european stocks rally bouncing back from the worst week while looked like green chutes emerging we've seen the numbers over the u.s. futures point to a higher weekend in china if that's a taste of what's to open while investors bet on come for europe, feels like we are on the precipice of a coordinated central bank action. recession here, doesn't it chinese equities closed >> we can go back and look at the history of pandemics, though higher shrugging off mainland not as defined it's very localized, very activity in manufacturing. focused, happens over once or >> rationalitity doesn't help. two quarters and then you get a we need to go back into the recovery we're seeing the effects come facts and the figures. based on that we decide. through on the chinese data and we expect that to happen in >> lufthansa cuts flights to italy, south korea and hong kong europe in q2. while the international air

transportation system says the what we know from history if pandemic will slash prices by they do widespread school $1.5 million this year. closures, people don't move around, we don't see the hit as bruno lemaire says the virus greater. policy makers need to provide will have more of an impact than liquidity, cash injection to get through this hump. previously thought cash-strapped companies running out of cash, et cetera that's where the focus needs to be we had italians coming out with the a package. companies may need debt relief, tax relief, et cetera and the we've got the uk pmi numbers banking system may need help once we get through the second quarter we're assuming growth coming through we had earlier zone earlier this rebounds that's the history of pandemics morning. uk factors feeling the effects over the histories. >> let's dive deeper into the of the coronavirus spread. different policy options the pmi came in 4.7 from the no you mention the stimulus package that through change level of january. slitsly higher than the month how do you think about the previous that's the highest since april targeted fiscal efforts versus but slightly weaker than flash monetarying easing >> at the end of the day it's a

government decision to provide point. that is a healthy expansionary cash, a central bank decision. for the central bank if they file small, medium size territory. this is for the month of enterprises need cash, that's a february so somewhat backward fiscal decision. that's where its that to be. looking. >> similar situation for those eurozone pmi numbers we had earlier. let's look at europe an markets we're convinced the fed will cut it's a full suite of green by 50 bips, we don't know what friday we had stoxx 600 end 3.5 he'll do it. as i say, we have to look percentage points lower for the through the currents, you know, week most of these indices were down. widespread worries quite rationally by the end of the day, i think we are gaining ground but not the hit will only be on one quarter. policymakers will be banking on fully k fully recoup rating. that >> there's even talk of the fed going as much as 50 basis points some chatter going that far and fo the eu and uk are beginning cutting rates that aggressively. >> they were talking about 50 official talks about the future trading relationship this week, bips before coronavirus. so there are about 100 uk >> my question is the pushback lawmakers headed to brussels negotiations will start and continue until thursday. that's something to keep an eye

on from a political perspective. is markets are not as efficient dax in germany, up about 80 dealing with supply shock as demand shock points was doing earlier. so far the reaction and the has pared some gains in the last effect has been limited to supply we don't know whether or not it's going to start affecting half hour. cac up 1.3%. demands. we announced some measures by that's the calculus the feds the french government to help contain coronavirus, including needs to make. >> i think the u.s. is different banning meetings of more than from europe. 5,000 people and various other measures as well u.s., people are much more the big one we were looking at obsessed about the level of the is the ftse and the italian stock market and it matters much more for corporate index surprising after in europe and italy, stock attempting to up open up in the market value for large companies isn't the issue. green now slightly down. after opening a gdp package over at the end of the day, i can the weekend to help deal with understand why the fed would cut the effects of the coronavirus and lend tax credits to companies that were seeing a rates, maybe more questions about easing, and the ecb sharp contraction in their meeting, by the way, happens in march before the fed revenue. we have seen stimulus measures that is interesting. announced out of italy, the i think most of the -- most of biggest out of eurozone

the discussion at the central bank level will be more about countries. italian banks are the ones liquidity needs than qe itself tradesing on the backs this morning. perhaps some liquidity concerns given the lending that is done through smaller companies that would be exposed let's talk about foreign exchange as well you can see a bit of a mixed bag. the euro trading stronger versus the dollar this morning. versus euro the dollar is trading slightly on the back foot up through 1.10. we have made up some ground. the dollar trading on the back foot we are seeing dollar/yen flight to quality go into yen, the safe haven currency the pound is trading on the back foot down about 0.4 of a percentage point safe haven going into the swiss franc. a bit of a mixed bag but we're seeing a continuation of money

going into foreign exchange safe havens not so much the theme for equities as wea've been discussing let's look at how u.s. futures will shape up on today's trading session. you can see that the three majors, s&p down, nasdaq, are all seen opening up in the green. dow up north of 300 points nasdaq up 100 points it's been a roller coaster session even overnight for u.s. futures. it was a sharp decline for futures opening last night with the recovery in asian equities we're seeing u.s. markets turn around as well. let's talk about the asian session. matt joins us for a look at what's been going on there >> hi there. asian markets broadly in the money despite that woeful news out of china on the manufacturing front for february china markets up around 3% on stimulus hopes after we got that

contraction in pmi we'll see authorities pump more stimulus into the economy australia is interesting, even though we might see more stimulus out of china, possible cut there. the official pmi we're watching. 35.7 the biggest fall we've seen on record in february down from 15 in january and at a record low at that level the private sector falling sharply as well. >> thank you for bringing us the latest on the asian markets. this morning hong kong's retail came in falling 21.4% due to coronavirus the epidemic has brought tourism to a stand still and weakened an already weakened environment due to protests. we're joined now by phone.

thank you for being with us. some dismal numbers out of hong kong on the retail front this is obviously the -- a continuation of a very weak trend in hong kong will the retail sector be hit harder than it was during the sars outbreak? >> well, indeed. it's already been hit harder and it will trn to be hit harder the reason is simple hong kong has expanded two and a half times since 2003. with 15% of employment, much more than was the case then. basically this is -- and we see the data has not been as hard as we imagine it's only taken a little of that month we're seeing but february

will be worse, indeed. >> we've now seen from hong kong authorities they are going ahead with essentially this helicopter money, dolling out over $15 billion in cash to politic gate the impact of coronavirus. how impactful will these measures be giving residents around $1300 in their pocket >> frankly speaking, i don't think this is the way to make people go to the store or buy online very simple reason is they may just save that money that is actually -- that would already be a good outcome. why? because the worst outcome would be for them to just transfer that money elsewhere, as you can imagine. people don't want to spend if you're lucky, they will keep the money in their account, which won't help the economy if you're lucky, you see that as

an outflow, which would obviously put pressure on the hong kong dollar so, the best thing -- in my opinion, you just have to keep this money slowly but steadily to make sure that it's being used for consumption especially for consumption of what is most affected, which is not everything consumption of staples is not at minus 20 if you look at restaurants or basically consumer durables, especially luxury goods, those are collapsing i think that this helicopter money is impactful to carry out as a stimulus package but not very effective. >> right i want you to talk me through what you think is going on from a liquidity perspective. that helicopter money is targeted as consumption but you hear about retailers losing a lot of cash flows.

similar situation for the property sector as well. is there talk there's going to be an actual credit crunch or liquidity crisis of some sort in hong kong if the situation continues for the medium term? >> yeah. it's a very good question. indeed, because hong kong is across the currency board, the liquidity in the system depends on the amount of in flows versus outflows there's not much they can do basically putting paper back and forth. it's not used very regularly let a -- you know, that's something that we're very far from now at the current juncture, you want to avoid a high -- i mean, high cost of funding for companies. liquidity needs to be in the system

so, any measure that encouraging outflows is not a good measure that's why i go back to the point that you need to target the stimulus for people to spend and not to bring the money outside of hong kong you're absolutely right that it might be one of the measures where you could target it better and make sure it remains low so the cost of funding remaireis moderate >> thank you for your thoughts today. so, we've been talking about the weakness in hong kong retail sales but it has been a very heavy trading week for markets a lot of the money went into sach havens. let's take a look at our safe. haven board this morning we're seeing a rebound in gold, up 1.5%. surprisingly gold came off in the session on friday despite some of the weakness we saw in equities dollar/yen, we are seeing

inflows into yen and the swiss frank. the ten-year note in the u.s. rallying this morning. briefly touched through 1.04%. that's the lowest level ever in overnight trading before coming off. a bid for safe haven here. let's bring in ali, investment director from gam do you think this is an environment where you're better off as an invest sticking to safe havens whether it's currency or fixed income or even gold though friday was a bit of case in point to the opposite but just stay out of stock markets for the time being until we get further clarification on how things are going with the virus? >> i think -- i think it's important to remember what happened last year and the context in which markets came into this kind of unexpected event. last year was a fantastic year for stock prices want such a great year for corporate earnings multiples expanded in europe --

asia as well as in the u.s and as a natural function of people following markets, it meant there was fully invested people in january, which i think is why equities were so -- proved so vulnerable last week to this news safe havens, though -- gold also had a good year last year. the most important safe haven or perceived safe haven is government bonds and specifically u.s. government bonds. i would say that now -- i think the ten-year yield is 1.10%. there's no real return on major government bond markets, given the considerably lower number than u.s. inflation. i would suggest looking over the next three to five years, that would not be a place to put your money. the difference this massive slowdown in economic activity

we're seeing now because of the virus. pricing how much difference is a tough job. it's not surprising that people are choosing to put some of the money in cash in the meantime. >> you sit on the sidelines and wait to get involved again at a better buying opportunity. it's all about the timing here, though, because some people talk about the potential for v-shaped recovery if things get under control. others talk about u-shape. now it looks like we might be in an l-shaped situation where things don't pick up to the extent they were going to pick up before because of some long-term effects, supply and demand >> well, i think staying on the sidelines is difficult for many of us. you know, i run global and u.s. long equity portfolios we always have to be to some reasonable degree invested i think there's -- trying to time events like this is, in my opinion and experience, not enormously worth while activity. we look at valuations and how

much they changed and where we get a chance to buy good companies materially at better prices, we do it i think that's because we have the privilege and opportunity of looking longer term. overpaying for safety can be a dangerous strategy over time >> we'll leave it there and pick up the conversation in our next segment. >> we have fresh news out of russia, out of the kremlin, specifically turkey in focus after the weekend after turkey struck a couple of syrian planes and airport and the kremlin speaking out saying russian military has told turkey it cannot guarantee the safety of turkish planes over syria's region the kremlin says russia hopes russian journalists working in turkey will not face problems from authorities there the stats on syria from russia remains unchanged. it wants turkish/russian

agreement to uphold the kremlin and russia oil companies have exchanged views before the opec meeting in vienna. those are fresh comments coming out of the kremlin after this weekend's developments around syria. president and ceo will step down from notice could yeah after more than a decade at the helm he'll be replaced by current ceo of energy group fortham. nokia fourth quarter earnings beat expectation but the company warns profit will come under pressure as 5g costs ramp up. a former governor says the central bank is bringing a knife to a gun fight as they scramble to contain the coronavirus's impact on maetrks. ut being a scientist at 3m is that

i'm part of a community of problem solvers. we make ideas grow. from an everyday solution... to one that can take on a bigger challenge. we are solving problems that improve lives.

(sensei) a live bookkeeper toquickbooks for me.tomize on a bigger challenge. (live bookkeeper) okay, you're all set up. (sensei) thanks! that was my business gi, this one's casual. (vo) get set up right with a live bookkeeper with intuit quickbooks. doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.

welcome back let's talk u.s. politics

former vice president joe biden was the big winner in south carolina primary that will likely shape the next phase of presidential race pete buttigieg has dropped out of the democratic presidential race the former indiana mayor made the announcement last night. despite having early success in iowa and new hampshire he had a poor showing in the south carolina primary. meanwhile, the u.s. has announced new measures in response to the coronavirus as the country recorded its second death over the weekend washington has extended its travel ban on iran to exclude restrictions on anyone who has recently visited the country president trump also said he will be meeting with pharmaceutical companies today to talk about a possible vaccine.

over the weekend president trump attempted to calm nerves over the virus spread stateside. >> we have taken the most aggressive actions to confront the coronavirus. they are the most aggressive taken by any country and we're the number one travel destination anywhere in the world yet we have far fewer cases of the disease than even countries with much less travel or much less population. >> we heard the president there saying the u.s. has taken some aggressive measures to help combat the spread of coronavirus. what exactly measures have the u.s. taken at this point and what more can we expect to see out of the administration in coming weeks >> reporter: sure. first we were already screening people before they got on a plane headed to the u.s. from high-risk area and now the president wants to add another

screening here once they land in the united states, given we've seen some people get sick on the plane. obviously, that's a closed environment where that virus is -- could possibly spread. rescreening here in the united states the cdc, centers for disease control, no you on the ground trying to figure out how some people contracted the disease. some are clearly travel-related, some are community contact related with those who traveled but others they simply don't know so they're trying to figure that out there have been 150,000 test kits ordered for this virus. half of them are ready they expect to be testing more than the 3,600 they've tested so far. we've also had our second death in the united states, a nursing home patient in washington state. we're seeing new cases crop up on the east coast in new york, in rhode island. both of those new cases, i should say, in those states are

travel related again, they're trying to pinpoint that and also present unnecessary fears. the federal government saying the rifsk for the average american is low but we're already seeing a run on masks in some places. people using face masks. that's a concern that health care professionals may not be able to find them when they need them. >> it's an issue worldwide, not just in the u.s. thank you for that report from washington quick look at u.s. futures after a heavy week of trading last week with majors down about 1 ga rate for the week we're seeing a bounce in wti, up 2% after not seeing lows since december 2015. we have the opec meeting coming up this week a lot of anticipation ahead of that meeting and what opec plus

could do to curb production further. let's join ali looking at sector performance, the financials are coming under a great deal of pressure the italian banks in particular are down 5%, 6% in some cases. more broadly, banks are underperforming. in italy's case, how much is around credit risks? >> the move in the bank is explained why europe will shrink in the first half of the year. in accounting rules mean provisions have to go up which is direct read through from that income we know uni credit which has been given permission to buy by

credit if though have to take greater provisions on the basis the economy is not doing well. i think the banks are -- as has been the pattern for the last decade, find themselves in an unfortunate position. >> what about assets managers, obviously under a great deal of pressure when we look at equity performance but also the credit risk here. how vulnerable are asset managers in europe >> well, that's interesting. i'm not sure -- other than the fact that actually portfolios are going to be less than 10%, i'm not sure asset managers is the place to look. i don't think that relates -- that's a secular trend >> any hedges you're looking at at this point? >> no -- long duration

businesses will quite possibly be revalued higher given the lower level of long-term interest rates so, we're -- we don't do hedging. coming out of this, higher quality businesses may find themselves with greater premium than was the case previously >> thank you very much that is it for our show today. "worldwide exchange" is coming up next.

it is 5:00 a.m. at cnbc global headquarters. here's your five at 5:00 -- stocks are in rally mode after closing out their greatest financial crisis week. dow futures swinging more than 900 points to the upside on hopes central bankers around the world will step in at some point. this as goldman sachs is out with another bombshell note saying jay powell will act sooner rather than later plus, two more airlines making chan change