that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [music playing] good morning welcome to "street signs." i'm joumanna bercetche >> and i'm julianna tatelbaum. >> back with a vengeance the dow posted the biggest point gain ever with minors and tech stocks leading >> europeans and financials also in the green after the world's top central bank said they are ready to counter act >> president trump takes another swipe at the fed

travel and leisure recover after ryanrare continue to slash capacity and bmw ceo adds his company is operating as normal >> on the supply chains, we don't see any large disrupts. >> a warm welcome to "street signs. global finance ministers discussing a possible coordination to the responseof coronavirus. listening to the call at 7:00 a.m. eastern led by steven

mnuchin and jerome powell. while the group is drafting a statement on countering the economic impact, it does not specifically call for coordinated interest rate cuts nevertheless, european markets are surging following wall street's lead yesterday. you can see the dax and the main benchmark up 2%. in italy, the mib facing a strong recovery up 2%. yesterday, we saw italy underperform, in particular the italian banking sector on concerns of the virus weighing sentiment there. the impact this could have on bank balance sheets. we are seeing strong gains across the european session. you can see we have green across every single sector. chemicals leading the way higher

financial services up 2.7, real estate, health care, technology. a mixed picture as to what is leading. a wide-spread change here. let's look at airlines that has born the brunt lufthansa is up 6%, ryanair up klm up sizeable gains in the airlines space, which is interesting given that they have suffered strongly as investors have tried to weigh what the coronavirus means for the outlook in europe. looking at tech stocks we saw apple shares rally 9% now you can see the tech space in europe. asml up 3.5% strong rebound in tech this

morning. let's take a look at european banks. i mentioned the pull back in italian banks. this morning, we are seeing wide-spread gains in the banking space including those italian banks. despite the fact that there are concerns, investors putting a lot of weigh on what they could say later on today unicredit up 2%. and san paolo up more than 2%. >> looking at the dow that ended up more than 5% higher very strong gains. that is the best day in 11 years for the dow in percentage gains. the level 1,294. kicked off the commentary today.

let's look at the asian markets. the shanghai composite up and a lot of the strength we saw come through on wall street did filter through to the asian session. overall green for asian markets as well let's talk about why a vow to take appropriate and targeted measures and stop the eurozone from falling into a recession. the statement by ecb president lagarde follows a series of announcements from leading banks. fed chairman jerome powell said the u.s. would acts as appropriate to support the economy. and the bank of england vowed to work with promises

the chorus of promises has cooled the concern as we are speaking, president christine lagarde is chairing a meeting, an extraordinary one given the circumstances. looking at what is priced in there is about eight basis points priced in suggesting there is not much fire power left what can they do here? >> if you look through the statement, it is clear the focus is on liquidity on the rate cut across is more about talking

together and each and every central bank can do to time-out what is seen on the market for the ecb, it is not about cutting rates but fighting liquidity here we have other instruments available where they could inject the financial markets that regain the trust in the system that is not about to collapse that is not the only thing the ecb can do now what they can do about the virus, they can do a lot clearly, that is in the definition to restore the broken supply chain they can counter demand shocks and enhance demand for loans for small to medium sized enterprise that are currently hard hit and by all suppliers

really at the end of the food chain, so to say to give you, perhaps, more of a thinking of what the hawks might think, here is a quote from the president that i spoke to on friday and what he thinks the central bank can do against the fight against the coronavirus. >> it is important to note that the policy is already very accommodative. >> in a sense, it's abundant, interest rates are low to some extent, this is already providing insurance. we have to look carefully on the root causes and the different effects of the spreading of the virus. are we talking about negative supply or demand effects this will determine what the

inflation forecast and if you look at negative supply shocks, they can raise prices and the reaction of the policy that is at the current moment not clear. i said in the press conference, i don't see any immediate need for action >> in other words, the rate cut is highly unlikely when p it comes to the policy action this week like a crisis answer. we most likely get more liquidity early on currently, the executive board of the ecb is meeting if they were to decide on more action and to have an extra ordinary board meeting. this could be done by telephone, if not done in person. then we have the call among the g7 nations one thing is concern that they

have woken up to the crisis mode of the market that needs to be done something to reassure financial markets that it is not a foregone conclusion that we fall into recession worldwide. i think that is the main purpose now of the central bank to reboost confidence in the markets that we don't have self-fulfilling prophecy that the markets are dragging into the economy of course having a very sober or very bad sentiment about how the world economy can go currently executive board is meeting and most likely we hear from the governing council at some point and then the all important policy meeting next week but they don't want to put too much pressure on that meeting that we might not see a lot of rate cut changes from the ecb very soon. back to you.

>> so much to watch out for. the question is whether the market will be satisfied with just liquidity measures and no interest rate cut. talking about central banks, let's switch and talk about another one. the rba has custody basis points to soften the impact of the coronavirus. matt taylor is live from singapore. so the first of the corona cutters outside of china >> right we've had two here in the asia pacific session. we did see the currency move higher despite the cut, cutting rates to a new low we have been told we could see a surprise cut the rba says the coronavirus has clouded the short-term outlook

on the economy when it comes to tourism education. once the virus is contained, it says the economy will return malaysia central bank cutting taking its benchmark rate to 2.5%, which is the lowest level in about 10 years. we did see a fair bit of green new zealand was the best performer today. australia about.75% higher we were doing better causing a little disappointment out there that we didn't get 50 basis points japan was trading higher, then we saw a lot of money around the japanese yen pressure on the market, lower at the close, at one point, 2.2%. >> thank you for bringing us the latest from the asia session president trump has praised the

reserve bank of australia move as using it as another opportunity to criticize the u.s. reserve the leader tweeted, quote, that it was sad that he could not followed lead and that jerome powell called it from day one. going to our guest this morning, markets are surging this hour. in your view, how much can central bank support actually provide a cushion here and is this the right one >> i think it was expected after what we saw last week. the move in the u.s. was quite strong but so was the down move last week. i think central banks, we have to be cognizant. they cannot do much about the falling, the outbreak of the

coronavirus. what they can do and what is important is to make sure liquidity is ample and goes in the system what you don't want and we are watching closely in the market, you don't want those tight conditions which would create trouble and head winds for the real economy >> when we talk about rate cuts, the focus here seems to be on liquidity more than rate cuts. you have president trump calling attention to the rba how effective does a rate become versus an individual stand alone rate cut >> i think you will see the markets. what they expect is the liquidity and what people will focus on is the fiscal stimulus. you have a call from french finance minister talking about coordinated stimulus that would be powerful in the short term, not much can

happen until you have this containment and the sense of the worse of the virus outbreak is behind us. we are not there yet, if you look at the uk and the u.s numbers are still very low in italy, numbers want from one case to more in two weeks. we should expect the same for france and maybe other countries, uk and the u.s. we have to be patient. if this is synchronized, that is positive for the markets >> looking at what is prized in and the discussion we had with the ecb core respondent. 50 basis points. the language out of the central bankers is that they want to lean in more on the liquidity

side of things perhaps providing more liquidity in the operations in the u.s isn't that inevitable that markets will be disappointed >> what is very tricky is that no one really knows what the outbreak will be because it is still ongoing. we don't know, so yes, you are right. the rate market is pricing a very aggressive rate cut in the u.s. by the end of the year. if that needs to be reprized, it doesn't mean you will have a massive shock on the equity. that will be proportionate to what others do, you could have less potential reprizing on the market >> thank you for your thoughts stay with us more to discuss after the break. >> to learn more about how the

virus is already impacting the economy. check out the op-ed, italy, the "sick man of europe tries to administer its own medicine. angered by the government's decision to force through a controversial pension overhaul

welcome back to the show nashville's fire department is responding to reports of 40 structure crashes following a tornado in the area. we'll be keeping an eye on developments early reports suggested that a fuel tank explosion and planes were on fire at the public airport at nashville we'll monitor that situation back to the news in europe, the french union expected to hold a series of discussions today regarding the pension

reforms. europe will struggle to tackle the economic fall out also seeing a disruption of the flow of goods as the area shuts off some of the borders. to our guest joining us, it sounds like you expect things to get worse? >> yes p. wh, when we look at k, china, we think things will get worse and will likely cause more economic disruption. >> so the big talk today is about the cut or the stimulus. what is the point of stimulating if people are physically not going to work and factories are operating at 50% capacity? >> i don't know, to be honest. it will create short-term good news but this is a severe

disruption that will likely last we expect if we get rate cuts and fiscal stimulus here and there, which we are skeptical to get in large amount, this is a health crisis and it is unlikely to calm the situation. >> one of the interesting developments is the country that has the highest number of cases is italy italy is also one of the weakest countries economically right now. how concerned are you that this could be the straw that breaks the camels back, so to speak when it comes to finances, yes, it is a worry. it comes to the eu to be lenient. they are not going to launch a deficit procedure.

we have been warning about a possible debt crisis given the weakness in u.s. corporate bonds. the trigger that could be raising the next financial crisis is a slump in growth. we could see an un-ralphing of bonds. it is a dense global growth, that is a big concern we are having >> looking at the political implications from the outbreak she's concluded that this could have a positive impact on political relations and a positive impact on the uk, eu relations. what is your take here >> it is a little difficult, if you think about the trade negotiation that is starting now. i kind of feel we have lost momentum compared to last year it has to start the stance taken

by the uk fairly, fairly hard. we have to see if the outbreak is going to make things better between the two parts. i'm not sure what it will do in the background that will not be as much in the headlines, so maybe it is for the better and i'm going to want to give up on the red lines because there is a health crisis in europe >> that is going to have consequences for the uk and europe >> the irony is that this just happened on the heels of another euro group meeting they wanted to agree on a seven-year budget. couldn't come to agreement all of a sudden, we are talking coordinated response where was that intention last week it was just a few weeks ago, we

were talking about the budget. they couldn't agree on anything. >> absolutely. the point here, what we know about the eu, it reacts when there is real crisis i do think there is a political upside from all of this. i agree the tensions from the uk and the eu without the coronavirus are extreme. and it is not going to be a positive outcome i do think trade tensions are likely going to subside because of the health crisis we are facing there is a political upside, that will also manifest itself by the time the eu meets again on the budget. they'll realize they've made the show and will move on. >> what is left in the ecb's tool kit that could give markets comfort here >> i don't think there is much

left they are not going to have significant impact the whole thing about appointing lagarde is the political fire power. she is going to step up the pressure on the countries and stimulus that is where we are headed to >> thank you to our guests we'll be back and we'll leave you with a shot of how energy is faring and we'll be right back

welcome back to "street signs. i'm julianna tatelbaum >> and i'm joumanna bercetche. these are your headlines >> european stock markets rebound sharply with minors and tech stocks leading the rally. european financials also firmly in the green after the top central banks say they are ready to counter act the outbreak president trump praises the rate

cut taking another swipe at the fed. travel and leisure recover after ryanair continues to slash flights. and bmw ceo is keeping a close eye. >> we don't see any large interruptions yet but we are monitoring closely we'll see what will happen but currently, all of your plants are operating. we are just getting some data out of the uk construction data. that has come in at 52.6 this is a big jump versus 48.4 in january we got the manufacturing pmis

for february slightly weaker than the slash we have these construction numbers coming out showing uk builders have returned to growth after the election that is the latest in terms of uk data. >> you've got to see how much that strength will last. especially on the strength of the coronavirus. let's talk about markets, a lot of green on the board. trading nicely in the green after a lack luster session. the land over from wall street, very strong. the biggest jump for the dow we have ftse 100 just above 6,800. about 2.2% firmer. we have news about measures that they will be reducing and recommending for people to do.

keep an eye on that. in germany, we have the dax up about 2.6% we're seeing companies that got beat down and recovering some travel names, lufthansa is staging some rebound industrials trading as well. cac is up and italy is very much focused on the ftse mib yesterday. it was one of the few spots of red on the board italy has reported the highest number of cases in the eurozone. it is a concern for the sme-based economy. we are seeing the rebound and some of the italian names that got hit are recovering names like unicredit are up.

some stabilization for european markets. let's talk about currency markets here it is a big day when it comes to coordinated actions and expectations we have the g7 call taking place. also an executive board meeting being tabled right now by ecb president lagarde. keep an eye out on the measures that could potentially be announced and could be very significant. euro, we have trading slightly on the back foot the ecd did release a statement saying we are ready to use all measures let's look at that in a few hour's time. dollar/yen, we have a slight spot the pound we have trading slightly firmer versus the zl .

dollar let me talk central banks. super tuesday not just for the politics you can see that overall in light of the equity come back, fixed income is coming off the 10-year is off about 10 basis points it was trading firmer yesterday. yesterday, when we were talking about italian banks coming under pressure, the spread widening. we are seeing a come back for the bond yields. guild selling off a little bit the treasury is now back at 1.15 thinking yesterday morning that the 10-year note briefly noted the all-time low breaking over 0.14 so we've come back a lot off

optimism amid that all-important g7 call. looking at futures that are pointing to the moderate start seeing things open up about 40 points higher and nasdaq up after a stellar day yesterday with those markets really jumping north of 4% or 5%. we'll see whether that momentum and if investors are quite nervous about what p wiwill hap this afternoon >> porch has unveiled the latest version of the 911 series. they planned to release the car at the geneva motor show but that was canceled amid concern for the coronavirus. on the line with us, i know it must be disappointing to see the

flagship event canceled over the coronavirus concerns share with us some details around the launch of the new series and give us a sense of how business is going more broadly for you? >> good morning. oliver blume from the porsche design center. we are here working on the design rather than being in geneva we appreciate the steps they've taken and we think safety first. we are flexible to organize here at porsche central in germany. >> what impact has this had on your business. perhaps trivial on things such

as supply chains >> first of all, we closed all of our dealerships in february in china it has sales impact. we are now opening porsche center in china. we'll see a better situation in march. looking to our supply chain, it is still stable. we are doing daily monitoring on our supply chain >> can you talk to us more broadly about the demand outlook you have pencilled in for 2020 it is not just the supply chain but also demand for vehicles this year. in this type of environment, there was a slow down in demand. how do you see things transpiring particularly in europe this year >> i think it is too early to

say what situation will we have at the end of the year we have to wait how will be the coronavirus limited in the next week and that's our hope in europe, we have still a stable situation we think step by step, watching what will happen in the different areas of the world >> the day is very exciting. there is a new 9/11 comi11 comie market i'm surprised it is electric i am a little surprised. >> for us, it is very important our product strategy we are going for a mix of traditional engines and modern electric cars.

last year, we launch the our full electric vehicle. different areas of the world are developing at a different speed. the 911 stands for our brand >> speaking of the electric vehicles, the pioneer tesla climbed eight spots in rankings. you guys hold a top spot so still a ways off. how much of a threat do you see tesla to your business >> i have a lot of respect of what elon musk and tesla are doing. it is innovated. they give a big push to the

sector porsche isn't worried about the competition. we love competition. we come from the race track. when we start to design our first electric car, our challenge was to build a car you can drive like the 911 when you look at taycan, it drives like a porsche. going live to governor carney he says the bank of england will ensure all necessary plans with the coronavirus. they will take all necessary steps to support the economy

the bank of england has also said they have spoken with the new finance minister on coronavirus and are in frequent contact. let's take a listen now. >> over the next five years, one of the main challenges will be, i quote, ultimately exit from unconventional monetary policy and here we are with rates higher and no sign of the draw on the horizon are you disappointed that has not achieved velocity and what the decision for that might be >> i would say -- thank you for your opening comments first. the disappointment is that the global economy remains in a relatively low growth, certainly low inflation ee kwequal.

they've had to achieve the inflation target there are major structural forces that have kept the rate of interest, in other words, the rate of interest that the economy would operate at full capacity absent shocks, of course, there are never situations where there are not shocks the longer termed forces around demographics and the changing economy, lower productivity. those factors have he weighed on the rate in addition for most of that period, we have had two additional shorter term factors.

the sustained period of fiscal production and lending against that for a period, a very elevated degree of uncertainty associated with determining our future full relationship with the european union. it has been appropriate to keep the bank rate low. the committee made a judgement early on about, my testimony was in february 2013 first to this committee before i took on this position in our february 2014 policy report or then called inflation report and our judgement. subsequently developed and reinforced that we expected this rate to remain low for a period of time and hence there is guidance around limited and

gradual rate increases when and if they came one of the things that bares consideration is that inflation outcome, so we have kept rates very low, following the referendum, we have provided stimuluses the combination of all of that has helped keep the economy at the rate of equal, the rate has been cut in half real wages have started to increase average inflation outcomes over the whole of that period is about 1.7% which reinforces -- so i'm not talking about any specific policy but the overall stance policy has been broadly in the right direction. you can argue it has been a

little tight on average. it validates the judgement on the rates and as we sit here today, it remains the view and i share it that they are likely to remain low for some period of time >> what would you say are the main successes and failures during the policy and do you think we are in position at a moment where interest rates are so low with such limited ability to take them ever lower that monetary policies wouldn't do as much as you would like it to do and how much of a challenge is that >> i think if i can speak of things that have worked well and are important, i would emphasize something that changed upon my

arrival, which is the collar indication to note that in exceptional circumstances, we should deploy some uncertainty there was one example given there which was returning inflation to target because of the stability reasons. remember back in 2013, the policy committee was new macro policy was relatively untested there was a school of thought that the monetary policy would play an important role in achieving the outcomes if you wish, we could come to talk about the role of the fpc i think it has proven its level. >> those are comments from the outgoing governor of bank of england mark carney discussing the situation, if they do get

worse. they are in contact with g7, g20 and the finance minister we should be on alert to see if the bank of england acts on further measures stay with us on the show we'll see a show of force. joe biden gets several key esy r ements ahead of supe tudaand his show down with senator bernie sanders we'll be right back. just one jar of micro-sculpting cream has the hydrating power of 5 jars of a prestige cream, which helps plump skin cells and visibly smooth wrinkles. while new olay retinol24... provides visibly smoother, brighter skin. for dramatic skincare results, try olay. and now receive 25% off your purchase at olay.com brand power. helping you buy better.

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welcome back to the show, one of the biggest days of the democratic race is upon us super tuesday where voters will head to the polls today. california and texas have the most numbers up for grabs. the magic number to secure the delegation are 1,191 talk to us about how we had two leaders pull out yesterday, pete buttigieg and amy klobuchar. >> they both endorsed joe biden.

he also picked up another endorsement from another candidate. that gives him momentum where these 14 states will be deciding this is nearly 40% of the delegations. bernie sanders is the one to beat as you see here, some of those candidates are not throwing their support his way. they don't think bernie sanders can beat donald trump. you are starting to see the middle of the democratic party, the more moderate side of th party coal es behind joe biden bernie sanders says he is not concerned about that he is going into this as the front runner given what happened last time, election security is a big thing as well. keeping an eye on things here.

here is the delegate count so far. you can see sanders has the lead but that can schang after millions of people start voting today. >> thank you for breaking it down for us. we look forward to your coverage to get those results let's bring in lindsay newman, fellow researcher. talking about how the moderates are coalescing around joe biden. we still have elizabeth warren in the race even though they doesn't have a clear path. why do you think she is still in the race >> interesting, if you talk to supporters, they seem to think she does still have a path right now, the biggest haul of delegates any day of the race, i'm expecting to see mixed

results. half to sanders and half to biden. they think if they get to a contested convention, she's the middle ground. >> lillian, will markets start to pay attention more now on super tuesday, there is a turning point? >> i think it is still early but what has changed is that we have heading to a more challenged convention and primary i had a question, do you think it is plausible that biden, if no one gets a majority in terms of delegates do you see super delegates playing a role that was really criticized do you see that as plausible

going around >> the dnc has changed some of the rules. so super delegates do exist. sanders was quite critical if there is a brokered convention, which means the first vote doesn't turn up a clear winner, then and only then super delegates can vote right now, we are thinking of a contested convention where there is no clear candidate going into the race we are not yet released with information on the first round >> what about support on the first round. you've got biden around the center and super progressive bernie sanders on the left it is unclear whether supporters on the left and do you think that could be a problem as we enter into the formal election

>> they are in struggle for direction and leadership we are seeing that i'm expecting more of it after today where i'm expecting states around vermont and maine and the liberal west that could go to sanders and more of the south, so virginia perhaps going to biden, north carolina, alabama going to biden we are seeing a real divide. it is an open question whether they'll be able to come together and whether the turnout will go for a biden candidacy. we have to remember, president trump has 80% approval in the republican party in an enormous war chest, they have to be concerned whether they are at disadvantage >> thank you for joining us. thank you both for joining us on

the show today mark carney is currently speaking and said interest rates are likely to remain low for some period of time without question we have less policy room than historically he said we would not go to negative interest rates. speaking on a day when central banks are firmly in focus for investors ahead of that conference expected from finance ministers. that meeting firmly in focus and has been a real support for global markets >> you have to wonder if the bank of england won't go into negative rates >> that's it for us. "worldwidexcng iupex ehae"s nt.

it is 5:00 at cnbc here is your "five@5." mixed messages policymakers sending investors on a very wild ride. as wall street is coming off its best day in more than a decade but can that hold. one winner is buying apple surging nearly 10% but supply chain struggles still there. google, facebook and more are standing down from