mustier is out. does this shore up quinn a little more?that is the million-dollar question right now in london. as we reported, jean-pierre mustier says thanks, but no thanks. it is really a setback for hsbc. many analysts last week were saying that this guy ticks off a lot of boxes for the bank. he has asian experience, he led a similar turnaround at unicredit that hsbc is trying to do, cut a lot of jobs and cleaned up the balance sheet, and he was rewarded with gains. yet he wants to stay there. going tovid, is hsbc struggle to find an external candidate, given all the challenges of the banks? david: it does make you wonder. there have been a few others they have talked to, but nothing seems to work. we know that they had an internal candidate in quinn who was happy to take the job. he laid out this extensive overhaul plan on tuesday to cut a lot of jobs and combine a lot of units to cut costs, yet it did not go over that while. we know that stocks fell the most in a decade that day. so the board must be thinking, we had him in our back

mustier has emerged as a leading candidate for the top job at hsbc.rd remains undecided and is still considering candidates. hsbc said it could take until august to name a new boss. for the first time in history, the royal mint is launching an exchange traded product. we bring you that story on etf iq every friday. up, we have got your morning call next. this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." u.s. and european gauges have hit record highs in february. this week about goldman is warning markets have become too complacent. dani: this comes from peter oppenheimer who released a note clarifying his views. he things that stocks are going to have a correction to this is technically a debt of 10% or more. it is because investors are underestimating the impact of the coronavirus on earnings. he says even if this problem only affects china, there are a lot of spillover effects. iser all, global tourism 4.4% of global gdp. a drop that could cut earnings by 10% in europe, meeting earnings are negative in europe. he classifies this as a

mustier inat, jp talks over his future at unicredit.inn is currently the interim ceo at hsbc, and just put out a major restructuring plan, but still has that interim status attached to his business card right now. the decision on was ta -- on mustier could be taken as early as today. it would be fascinating to see whether we can get new surrounding that. we will come back to the story in a few minutes. in the meantime, let's get a first word news update. here's courtney donohoe. courtney: u.s. plans to sign a peace agreement with the taliban a week from tomorrow to end the war in afghanistan, america's logs ever. the deal -- america's longest ever. the deal is still contingent on a cease fire that begins at midnight. sees the coronavirus epidemic is being tentatively contained, but it hasn't reached a turning point yet. chinaomes from state run central television. they have adjusted the number of cases for the third time this month. that raises more questions about the reliability of the data. more than 75,000 people have come down with

jean pierre mustier has been the guy.ed his new, strategic plan through 2023 just in december. it would be very much a big of the direction they have been going. it has really been his own show. there really has not been a lot of other characters emerging that you could obviously say right now would be the first pick. matt: thanks very much. ross larson in rome on this story. know, aas viewers will predilection for the comp chart on the bloomberg. i think it is great because i can always look at a five-year snapshot of what a company has done. this is what unicredit's stop looks like with reinvested dividends in white over hsbc in orange. this makes the story even more interesting. they have certainly underperformed hsbc, which of underperformed the rest of the market. u.s. and european gauges have hit record highs in february in terms of equities. now, goldman sachs has warned that markets have become too complacent. dani: it is definitely one of the oddities of the market when we see investors flocking toward havens lik

. >>> coming up on "street signs," mustier says no to hsbc top bank job. more after the break do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. ♪ here's a razor that works differently. the gillette skinguard it has a guard between the blades that helps protect skin. the gillette skinguard. >>> welcome back to "street signs. well, i think it's fair to say coronavirus is top of mind for investors across the globe this morning. in the asian session, we saw stock markets pull back, in particular south korea you can see the kospi down nearly 4%. over the weekend south korea saw a spike in the number of new cases reported and investors there reacting accordingly the shanghai composite holding up a little better, down a third of a percentage point. overall, investors taking a much more cautious approach now to the coronavirus outbreak and the potential implications for the economy. l

it will be a massive overhaul, and mustier has a good track record at that. think it would be bad news for unicredit, and i think it is definitely a surprise. i think the market was definitely disappointed that hsbc, just a few days ago, didn't name a permanent new ceo. i think that was the biggest as whatman of the day. vonnie: bloomberg banking foerster,an-henrik thank you for joining us. guy: let's continue the conversation. mike bell, global market strategist at jp morgan asset management, joining us on set. we just talked about a whole bunch of banks. let me start with a broad banking question. people are looking for consolidation in europe. they are looking for a reason to buy european banking story. it is a high beta play on the european economy. is there a case for owning european banks at the moment? mike: i think it is a struggle. i think what the european banking system needs is consolidation, but there are still regulatory barriers preventing that taking place in a meaningful way. you have more regulatory allied bid, then -- regulatory alignment,

jumpy or mustier has pulled out of the race -- jean-pierre most -- johnjumpy or mustier mustier has pulledrace to be the new ceo. they have announced plans for a third major overall and a decade. coming up on the program, u.s. 30 year at a record low as the 10 year sinks to levels we haven't seen since 2016. how low can i go? youru are heading out into car, tune into bloomberg radio on sirius xm channel 119 and on the bloomberg business app. this is bloomberg. ♪ ♪ alix: time now for trader's take. joining me is marcus ashworth, bloomberg opinion columnist. tell me what you see? marcus: i think they are calling this tractor beam of lower rates around the world. europe is adding more qe, and arguably may be more. japan yields are falling negative as well. the german 30 year is below negative. yield?n happen to u.s. it has dragged down to zero because they are so cheap compared to the rest of the world on liquid markets. the yield curve is pricing in perhaps a series of more rate cuts coming. it is worrying that you've got this record low yield in 30 year, that we haven't quite hit that on th

jean pierre mustier says the biggest risk is rate staying lower for longer.e lacqua about the impact of the ecb policy, the italian banking center and possible m&a. jean pierre: whether the economy will remain weak or weaker, if the ecb cuts rates again, negative rates have a very negative impact on the profitability of banks. we think the ecb will normalize. have you had discussions with european central bank? do they understand the plight because of negative rates? jean pierre: in order to exchange, on the monetary side when they interact with us. it was on the regulatory side. been veryad has transparent about headwinds which i think is a plus for investors. they have better visibility. we should bring more capital into european banks. francine: does tiering work? jean pierre: it works a little bit, because it has a little bit impact of negative rates. i think negative rates in general is an issue which stays lower for longer. francine: what is your take on the e italian banking sector? sectorerre: i think the has made a lot of progress in the past few yea

infections for coronavirus top 40,000 per unicredit chief executive jean-pierre mustier tells us lowt rates are the biggest risks to his banks up business plan. good morning, good afternoon, good evening, everyone. this is "bloomberg surveillance." tom, the bombshell about an hour ago with angela merkel's heir apparent actually says she will step down from the leadership of the ceu -- from the cdu, that she will not run for chancellor in 2021, really making the race wide open and we are looking at some of the possible successors. tom: the wide open in ireland, in the new hampshire primaries, the political team -- i focus on the markets and em really gives way with oil on the cusp of $49 a barrel. francine: and for the moment saying they shan't meet. let's get to bloomberg first word news in new york city with viviana hurtado. viviana: we begin with a grim milestone for the coming of iris pretty global test -- the global -- for the coronavirus. china says the number of confirmed cases is more than 40,000. the number of deaths has hit 910. 50 more cases have been found it in all, 130 c

mustier has decided to remain at unicredit.said it could take until july two name a new leader. jp morgan is planning to enter the u.k. consumer banking market according to society you. sky reports the wall street bank is in talks with city regulators are about a -- obtaining the necessary approvals. back to the coronavirus and italy has become the outbreak's european epicenter. it is reporting 140 cases. the government is locking down an area of 50,000 people near milan. authorities have also canceled the carnival. the prime minister has been attacked for not defending the borders as conti chairs a marathon meeting in rome. to restart the ailing economy that has stalled. bureau chief for bloomberg joins us now. alexander, great to speak to you. why is this happening in italy? has there been a focus on establishing why the outbreak has gotten big so quickly? alexander: it is unclear how and why the virus has arrived in italy. an individual was in the withtal and not diagnosed the coronavirus which has contributed to it spreadin

alix: let's wrap it up with mustier she son coming to new --k -- with mustier she son with masayoshig to new york. sonali: they are still talking about this vision fund, and they know they will not raise as much as they initially wanted. remover that report that talked about them creating some sort of hedge fund-like vehicle. i'm sure some of the bankers will be in those meetings as well. he's worked closely with goldman and others. jp morgan had a huge place in the wework story. dash.worked with door alix: sonali basak, thank you very much. and in your off the beaten street, limited-edition oreos. you've probably heard of supreme, but it is not all hoodies and t-shirts. they teamed up with nabisco for a version of the cookie dyed red , with the logo stamped on going and it is now for $15,000 on ebay. talk about a return on your investment. they don't even look that good. i know, i'm sorry. i am clearly not a skater. coming up, could gold falter, or do we get to $1800? if you are jumping into your car, tune into bloomberg radio on sirius xm channel 119 and on the bloomberg business a

markets are waiting for his who is going to be running this bank and it looks like now jean-pierre mustieras a good shot. >> equity futures lower and treasury yields, economic impact creeping into the data, china reporting car sales dropping 92% in the first two weeks of february and japanese manufacturing's worst performance in seven years. europe appears resilient but supply ise surface, being impacted as factories in china shut down. >> we are seeing additional clusters and other parts of asia, not just china. we are seeing a surge in cases, another 52 in south korea. they have now 208 cases. japan has 727 cases and three deaths. continuedic impact is -- is continuing to rise. the international air transportation aviation association is seeing the likelihood of its first big revenue drop in 11 years, since the global financial crisis, because of diminished air travel. activityusiness shrinking in february for the first time since 2013, according to one measure, as coronavirus hits supply chains. >> is the first indication it we have seen of how the coronavirus is hitting the u.s. econom

jean-pierre mustier is said to have voted himself out of the running for the top position.d as the main external contender for the role against an interim ceo. >> it looks like he is not interested in the job. he informed the board on sunday, thanks but no thanks. it as to the uncertainty around hsbc and prolongs the search. he must seem like an ideal candidate. he turned things around at unicredit, cut a lot of jobs, cleaned up the balance sheet, and had some of the best returns in europe last year among other banks. he also has a lot of agent experience. hsbc wants to pave more towards asia. in many ways, he ticked a lot of boxes for them, but he's not interested, so the search continues. vonnie: the software giant behind turbotax says it is buying credit cards of about $7.1 billion in cash stock. are you worried about antitrust concerns, joe? joe: we are not concerned, because it is good for consumers. a choice for consumers, creates an environment and platform for more competition, more financial institutions will want to compete for the consumer's business, and the con