that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [theme music] a warm welcome, everybody. this is "street signs. >> these are your headlines. european equity markets and the coronavirus put the region on track for the worst quarterly declines in 18 years >> shell rising over 5% as u.s. and russia agree to talks to bring calm to crude markets.

>> super markets spree grocery sales as british shoppers spend more to stock up amid the lockdown l'oreal looses ground after the french group scraps its guidance and warned that coronavirus will have a bigger impact that previously expected. china's factory activity has restarted and apparently rebounded in march after disruption was disrupted bit virus outbreak the pmi has risen to 52. anything above 50 is expansion the number in february came in at a record low of 35.7.

highly significant but much better than expected analysts had been forecasting a contraction. we'll get to emily report we are seeing the hong kong market close out a session on a tuesday with positive gains. with the form of the official pmi for march. the hang seng index closing up 1.4% at 23,503. the latest pmi for march better than expected with a 17-point jump to 52

back into expansionary territory coming off a record low in february coming out quick to say that they are cautioning that the readings do not dignal a stabilization but comes off a very low base. that is something that they are cautioning about the nonmanufacturing number is 52.3 in february, 29.6, you put these two together, a composite number of 53. similar to that in the private sector, we'll get a reading tomorrow morning hong kong time. february's reading was 40.3. so in contractionry territory. we are looking for a number of 45.8 we'll see whether or not it does a big jump when we talk about manufacturing, we look to h

hon hai. they are a big supplier to apple. the 2019 record card dropping to $3.8 billion this is a third-year decline revenues were all-time record high of $177 billion the company said they had revolved the production shortage the company had to get everything back on line and back at capacity now diversifying outside of china investing $25 million into vietnam and india as these two will become regional manufacturing hubs for hon hai as well. closing down under $70 per

share. back to you. thank you, emily we are just hanging out here for numbers to come through from huawei it is fascinating what emily was saying there even though that pmi number looks terrific, it doesn't actually reflect underlying activity per se. merely the fact that factories are beginning to retool and workers are going back to the factories. in that sense, it is a positive but doesn't tell you an awful lot about this stage in the chinese economy. >> on huawei, we've got the results now for huawei they say revenue through the middle east and africa grew 0.0 for 2019 falling 13.9%. a pretty big step back there in terms of cash flow, huawei

says 2019 cash flow for operating activities was up. they came up 19% for the full year at $858 billion yuan. let's take a listen to what he has to say >> an increase of over 13% huawei has pursued and maintained a capital structure the overall capital remains stable the the research is fundamental to huawei. every year, we invest more than 10% in research and development.

rarchd d in 2019 was $131.7 billion or $18.9 u.s. dollars. accounting for 15.3% of annual revenue. over the past years, r&d investment exceeded 600. we have more than 96 r&d staff globally making up more than a total of head count. huawei has been respecting the intellectual rights. >> that is the rotating chairman speaking of the results that they just delivered. let's get to arjun, what is your

takeaway from these results? >> reporter: you had revenue up and net profit came up about $9 billion to 5.65% rise which contrasted more than 25% rise and 28% rise in 2017 significant slowdown on the profit side. i caught up with the rotating chairman there you heard he revealed that the results were in line with some of the projections but ultimately missed internal targets. the final target for the year was what huawei was projecting back in february 2019. however when the year was going good, they decided that those intern th internal projections would rise.

in may, those had been thrown on the entity list that restricted the access including google's operating system that was a huge hit and essentially led to a $12 billion revenue shortfall for the year where most of that came from is the consumer division. over $10 million came from the sho shortfall of the consumer division let's listen to what he had to say. >> translator: huawei's 2019 results were basically in line with our initial expectations but missed our initial targets we missed those set in 2019 which was 858 billion yuan

in april, we realized our business were growing fast we adjusted and raised our target to $135 billion u.s. dollars. as you know, huawei was put on the entity list. we didn't adjust afterwards. we didn't meet our revised targets which was $135 billion we were short by $12 billion this was the result of the u.s. sanctions. what is encouraging, despite the challenge, we achieved pretty good results from our hard work and support from business partners >> the reason i'm talking about the consumer division, it has become the largest revenue that was the networking. those remain pretty robust and

huawei was doubling down on the china market nearly three out of five phones were sold out of china that showed you the focus it put on the chinese market after the blacklisting talking about the coronavirus here where you saw businesses shut, factories shut a lot of manufacturing for its network and equipment does happen here in china i spoke about the impact from the coronavirus. it is a bitterly to tell what the impact will be this year given it will spread to the rest of the world he feels short term, the company could deal with it you could see some significant fallout. let's listen to what he has to say. >> our production has fully

recovered. if the coronavirus pandemic drags on and can't be contained globally we are bound to run into difficulties over the long run supplies across the world have daily briefs to us their ability to keep production going is crucial to huawei we have taken measures to help suppliers and disrupt productions. >> on the whole, you'll find huawei pretty happy given how tough a year but 2020 is not going to be easy you have the cfo facing extradition on trial in canada and the u.s. continuing to put them on the blacklist and the trump administration likely to ramp up pressure on the chinese

technology giant throughout the rest of the year >> thank you for that from southern china let's talk about the european central bank here. some comments coming through from visco he says the ecb is ready to raise the size of asset purchases, change the composition. just a couple of lines to reinforce the sense that everything is on the stable when it comes to the ecb providing support. if you want to get involved in the conversation, follow us on twitter at "street signs" cnbc and get directly at geoff

and to me at juliana we'd love to hear about what you are doing at home. this black swan that it is being described as our next guest. the cio of rothchild believes the virus fits the category of a black swan more when we come back did you know prilosec otc can stop frequent heartburn

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welcome back to "street signs. european markets are extending gains this morning, quite a large session coming here. the cac up 2.6%. in italy, the ftse mib up 3.4. some green shoots now with the number of new cases coming

through. the country is on look down now through easter we could have some encouraging signals there. ftse 100 up more than 2% a few sectors are in focus this morning. every sector is trading higher let's look at the banks. deutsche bank is trading higher. we are seeing gains for some of the uk banks barclays is up as well ecb has advised banks to withdraw their dividends and buybacks and they have a responsibility to support the economy throughout this crisis we are getting announcements from the number of lenders travel and leisure is a strong sector air france is up

we have seen massive moves in these travel names airlines at the top performing very well. the accommodation part holding up not quite as well but green across the sector here autos in focus overnight, we had better than expected data on the manufacturing front. official data for march that came in after that plummet we saw the month previous investors looking at the month with a bit of caution. the reopening is providing support. autos being one of them. the likes of the fca, daimler and bmw all trading up shell says it will write down up to $800 million due to a sharp drop of oil prices the energy giant doesn't expect the virus outbreak to impact

demand over q1 it added liquidity remaining strong and had access to $40 million of incredible funds. the swiss bank may reign in bonuses. they will decide on the 2020 dividend proposal despite calls for swiss authorities for lenders to suspend payouts commerzbank will suspend due to active around the coronavirus. the recommendation that lender suspend dividends until at least october. fitch has cut its rating to triple b while putting deutsche bar bank on a negative outlook

l'oreal has suspended its 2020 guidance. what can you tell us about what they have told the markets today. it is rare to see l'oreal trading towards the bottom of the stoxx 600. a negative sursurprise >> you are right the negative growth we have seen is luxury in asia pacific. that is two segments under pressure from the luxury front we have seen, carrying and revising their guidance and would be impacted 10 to 20% and asia pacific has been a great driver it was up 30% last year. they make about a third of their revenue there. sales are very much impacted since the beginning of that

year when i spoke to the ceo in february saying, with the previous epidemic, sars or mers. they had a quick rebound this has turned into a global pandemic more than half of the sales come with shops closed in the region, the impact could be wider. the revision coming from l'oreal. they have invested heavily in commerce they have a big boost in online sales and are helping to offset sales on the high streets where there was a slowdown from shoppers e commerce was at 50%. they are hoping this would offset a little bit the impact there. expected to see a bit of a gradual recovery that would help

to offset the shutdowns in europe and north america that has been one of the good drivers for l'oreal. they are hoping see this mitigated. this division from l'oreal sending the shares at the bottom of the cac this morning. >> thank you let's refocus here on some of the oil prices that we've seen moving off the back of news of fresh talks, perhaps these oil prices bouncing off 18-year lows on news that president trump and putin held a call to discuss further talks over how to stabilize crude markets following the recent declines that alongside some of the news from shell about the lack of impact around first quarter demand helping with the bounce

here we are pleased to have with us gill prince. he believes the coronavirus is a black swan event that could impact markets for an extended period of time but also sees some opportunity here. he is the cio of edmund reasonablechild. how do you analyze when is the right time to reenter markets if you are currently not stocking a losing trade >> we've seen a black swan it has led to a panic, actually and from there, we've seen some relief rally, technical in nature where investors have the responsibility to reassess the holdings maybe we'll see the rebalancing and bargain hunting.

there are, yes, some opportunities into the market for the brave investors that can see through the valley, i would say? >> when we talk about the opportunities in the market, the dividends are under conversation they are under pressure to withdraw we talk about banks, aerospace and others how do we welcome those. melrose shares up. talking that it is positive and warns off shares of could have vent breeches but on the other hand it draws investors in the first place. >> we have the strategy of looking for high-yielding stocks today, we need to be more than ever, very selective on the companies we select.

the dividend itself is not enough we need to look at the balance sheet and what makes a true quality company. typically, you should focus on the companies that have recurrent cash flows and reserves that can navigate through that difficult environment. >> you talk about in your notes about how this crisis presents opportunities for companies to implement esg, the real topic this year. it has proven to be for companies that lose ground when it comes to esg and comes under fire the way they are handling the s part, the social aspect. adidas and the ability to freeze rent payments. do you see the ability to see tides shift and break out when they have an opportunity to really show their true colors?

>> i think the current evens are quite positive in general. when you look at the performance of funds, it has been resilient. those have led to select quality companies and to avoid some sectors that have been hit the hardest like airlines, energy and autos. so, yes. i believe that esg would want to have portfolios and should benefit from the situation when we select the esg companies, it is very difficult to avoid or to differentiate between two esg companies and probably the kind of situation will help us make that differentiation.

>> let me ask you about products we've seen etfs suspended because there isn't the underlying liquidity justifying to continue to trade the product. a lot seem to be having some issues around pricing. for those who thought they were quite racy and sexy before this crisis, you've got all these three times short oil products and so on. where do you think we go in terms of these products once we come through the other end will they remain popular or do we see people trying to hunt out a good old fashioned fund manager. >> definitely, there is place that will have a preference for active managers. that kind of situation, they could be more reactive and should see the opportunities provided they are of true

benchmarks for etfs, it is based on the index. actually, there is a lot of sophisticated etfs they carry more weight than we think. there is still a place for etf after all of that for sure simple etfs or the liquid underlying, there is still place or demand for that that is still perfectly right, i would think. >> thank you for that. coming up, the clash over corona bonds continue. sheaing shared debt instruments would take too long to create.

good morning you are watching "street signs." >> these are your headlines.

>> let's get into the markets. we have a big bump here. the u.s. futures extending gains. steep losses in march amid the coronavirus crisis putting europe on track for the worst quarterly declines in 18 years oil and gas stocks lead. u.s. and russia agreed to talks to bring calm to crude markets and discuss saudi arabia's increase to production huawei as trade and technology tensions weigh on the technology giant telling cnbc the virus outbreak is a major threat to its outlook. >> translator: the coronavirus drags on and cannot be contained globally and some suppliers stop production, we are bound to run into difficulties over the long

run. l'oreal loses ground after the group warns the coronavirus will have a bigger impact than previously expected. >> let's kick off this hour. this is the february retail sales data down 46.7% volume from a year earlier. retail sales by value down 44% from a year earlier. the government in hong kong says the year on year fall widened sharply in february and was the steepest for a single month on record the numbers were already weak as a result of the ongoing

protests but a lot of people have been in quarantine from the end of chinese new year, the end of january. you won't see a great deal of improvement coming from march, even though we are seeing people back on the streets and some of the dim sum restaurants back open so that is a blessing. >> it is even if it is at half capacity green across the board there. the dax leading the way again. the key outperformer yesterday when the stoxx 600 grew 1.6% higher we are seeing those gains extended that positive movement continuing with every sector trading in the green in europe travel and leisure, the key outperformer this morning. significant bounceback in airlines oil and gas as well.

that sector up 4.4%. >> the u.s. saw strong gains in all indices. we are looking at decent numbers with the dow with a 180-point rise at the open if those numbers hold like we've seen, if those levels hold, we'll see positive mow men momentum putting that on the gain for the dow and the s&p 500 as well. >> the latest statistics, the cases has risen to 782,000, the death toll has climbed to more than 37,000. the u.s. has suffered the deadliest day of the pandemic yet with deaths increasing to over 3,000 cases in spain have surpassed those in china the spanish government has

tightened restrictions to stem the spread china also saw a rise in new infections reversing four straight days of declines. france has recorded the highest death toll as patients have flown to germany 418 patients died at the hospital bringing the total number of lives lost to more than 3,000 it is believed that number will peak later this week italy has extended the strict lockdown measures to a least easter any easing of the lockdown would happen gradually arguing that the country is at the most acute out break they suffered 840 deaths in the last 24 hours but reported a decline in the number of new cases. getting to claudy pensotti

perhaps a little bit of an encouraging signal when we look at the number of new cases emerging >> caller: after many weeks, very difficult and bad news coming out of italy, this could be the first sign that helps other countries lagging behind italy. to get an idea of where they are headed on the positive side. there is an end in sight the case zero is expected to be in the middle of may, that is still far off. the cabinet will meet to try to decide when they can start reducing containment measures that could be as early as after easter where you could start to see workers go back to the factories and the plants getting back to work which could be a positive decline the markets applauding that as well you are seeing the ftse mib outperforming. there will be a lot of caution

on how and when to get everyone back into their normal lives it would take a while before we get there. in the meantime, the signals are positive as we do get those numbers declining as new cases are coming out every day you are getting a ray of sunshine here in italy in the midst of this difficult crisis back to you for now. thank you for joining us on the latest we are all watching closely and hope that good news continues out of italy >> the head of the european stability mechanism has said the joint debt instruments would take at leet a year. saying the so-called corona bond would be a complex and time consuming way to support economies. according to him, the exiting

institutions including the bailout funds he leads would provide quick relief to countries with overburdened health care systems and ailing businesses nine countries including france, italy and spain have supported the idea of corona bonds for a sense of how business is fairing in this environment, john denton joins us, chairman of international chamber of commerce karen will jump in on the conversation 45 million in several countries represent your membership. what feedback are you geding about how difficult this current environment is >> thank you to be frank, the feedback is pretty specific. this is a massive shock to the economy. we have see a collapse of

consumption and we are seeing a wipeout on a global basis having contact with colleagues in icc's and it is different in terms of intensity. there is a huge challenge just to stay in business at this point in time. they account for 90% of most gdps and 80% of employment we are turning our attention to support those now. it is a shock to the real economy. a number are still playing by the playbooks to the global crisis this is fundamentally different. it is a health crisis. we need to help the economy and get policymakers supporting the economy dramatically and quickly. sos or save our smes and

specific actions it is tough out there, friends it is tough. >> we've had significant announcements from governments around the world who have pledged money and said it would be made available to small businesses and to employees. is there a sense that that money is not getting through >> not fast enough you can imagine in sophisticated economies, like switzerland, it's operating like a swiss clock. it is much more staggered. i'm surprised this global campaign is necessary. i would imagine in some other sophisticated economies, this wouldn't be necessary. this is taking up an enormous amount of time for people filling in the forms and those

receiving the forms. we need a better mechanism some of the models being used are typical to transport where are particularly focused today on enabling merging economies. some of the governments do not have capacity to provide stimulus packages. we saw in australia, plus 10%. in india only 1% of gdp. we have been worrying about economies in sub sahara africa they just do not have the capacity we are turning to britain and to see if we can help them deliver without conditionality that will require them using unconventional tools going through playbook mechanisms will not get us there.

we have to find ways of untaping this flow of funds right now already in bangladesh, we are seeing something like 3 million workers lose their jobs because of the collapse of the garment industry stepping in to work with new and unusual partners to help linking up with the business 20 to get off the call this morning with the apex business advisory council and they are happy to do so my sense is a lot of good intentions we need to make sure the application is real and we can help create new mechanisms to provide support to not just smes but billions of workers that rely on those. how do we get these workers in a situation where they have funds

available? >> john, in the icc's open letter to g20 leaders, you express the importance of maintaining a base level of activity how important is technology in achieving that >> absolutely. in fact one of the important lessons from, i think, this particular real economy crisis is that the inertia that surrounded the trading world needs to be arrested and arrested quickly what you are seeing is paralysis by paper moving things that requires physical presentation can't happen people are not in their offices and people cannot present the papers you are seeing a paralysis in trade for example. what we are actually doing

ourselves is enabling an immediate and speedy transfer of transformation of legal documents to support that. we are calling on the specific call to the g 20 trade leaders we've drawn particular attention to this as well. in our campaign, we are looking at how we can use digital tools. that will be an enormous enabler of supply chain and getting the services to supply chain functioning. at the moment, there are very few economies that have taken the step of recognizing e documentation to support trade we think that is a fundamental i've been in conversations with the singapore government, which is one of the most advanced economies to see if we can use that and use the singapore example to globalize that. that is really important i'm glad you drew attention to

that >> john, i'll question you a little further then. do technology companies need to do more to support businesses whether they are based in silicon valley, shenzhen or here in europe? >> i'm impressed with the speed technology companies are bringing new solutions as i said before, business as usual won't get us there what i'm finding is that particularly in terms of delivering support takeup has been fantastic we are reaching out to entrepreneurship in asia, is stan bull and finalizing one in lebanon. the digital platform will be the

way. actually for individual citizens that want to build livelihoods one of the first initiatives brought in to the icc. that is enabling us to operate virtually with the support of a digital platform it is encouraging how players are standing up. we need governments to shift their frameworks this constant refrain that we'll get there in the end to support the environment. it is not good enough. we need to actually push this harder right now that is one of the aims in our initiatives. we launched with the trade ministers. what we are doing today with our sme campaign >> you mentioned some of the difficulties with emerging economies with getting help. but within the developed world,

in terms of the bank's role here and being the conduit which companies can access are they doing a good job to ensure the funds get to the companies and households who need it? >> there are two elements here loca locat locatal -- locatal and developmental banks. the big imfs realize here. they've already put in place and enabled the banking world to operate. just looking at the discussion this morning where one will come to the development about that. the big issue is how do they support the economy and actually understanding better if they'll release those and make them available for emerging

markets. we don't want them to emerge like out of the real economy we are thinking about how should we support that. calling from the imf to see they are critical to the real economy. we have a follow-up follow it will be incredibly important. for developing banks so the inner american development bank, they are very real there are new mechanisms available. we do need to in a way experiment with those and utilize them and talk to local players. where chambers of commerce are so important for a lot of these banks and players. talk to them about how to access the real economy that's all part of our campaign today. >> a lot of moving parts and

critical players thank you for joining us this morning. karen joining us from home as well she'll be with us after the break talking tech and benefits of more people working from home amid the coronavirus paernd. we'll have more next

welcome back, everybody. you are watching "street signs." a bit of possible good news for iranians they have announced that they have managed to send medical supplies to iran from europe without breaching american sanctions around the use of the dollar they've used a special fund which means they don't have to use dollars. at least some medical supplies are getting into iran at the moment >> microsoft shares over 7% higher after the company revealed a surge in demand for on line services in part because

a large part of the work force is working from home karen, talk us through the opportunity for microsoft here >> microsoft, the big driver for the dow, s&p and nasdaq yesterday. a huge focus in recent times on the cloud service. now what we are seeing is the cloud service products the likes of microsoft teams gain momentum. updated from the weekend that they have seen a surge, particularly in italy and updating on the back of what they have seen from coronavirus. you've had many lockdowns there first. 75% increase of teams calling and monthly meetings in italy where social distancing and shelter in place orders have been enforced. the company reporting 44 million

users, up about 12 million in one week as well the surge there smooth as many went live. you had problems with microsoft teams. also surging other orders like skype and other orders on the service. you are maximizing the potential to the products. so it is making the best of pandemic times we'll leave you with a quick look at u.s. futures that is it for today's show. i'm julianna tatelbaum and "worldwide exchange" is coming up next. these days you need faster internet that does all you

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breaking news, stocks trying to string together a two-day win streak as wall street eyes the end of the worst quarter since 1987 as the number of coronavirus cases in the u.s. continues to surge prompting washington to move another major round of stimulus. russia and the u.s. look to stabilize the market in the mist