anna: we are hearing now from christine lagarde. meeting we had recently during which the ecb decided to launch that strategy review. if monetary strategy review, to specific. it has been 16 years since the ecb conducted a monetary policy strategy review, and as we , in 2003 in december the world looked very different and many things have changed. these warrant the fact that the strategy of monetary policy review of the ecb. a structural changes have profoundly affected our environment, economic and other standpoints, and this will continue. more specifically in the field that is of concern to us, declining trend on the back of slowing productivity growth and an aging population, and the legacy of the financial crisis driven interest rates down. this low interest rates and low inflation environment has submitted we reduced the scope for the ecb and other central banks worldwide to ease monetary policy in the face of an economic downturn. structural challenges such as new threats to environmental sustainability, rapid digitalization,

christine lagarde says the outbreak adds a new layer of uncertainty. investor -- investors will watch. the end of the saga. the senate votes to acquit donald on charges that he abused his power and -- ♪ it is all about the banks today on "daybreak: europe." mold rate -- will mull raising capital to 60%. euros at 12% placement. this is all about capital coming through. in terms of dividend per share, a little bit larger than the march -- little bit lower than to 65.imate, 63 compared fourth-quarter loss. , less than what the market estimated. 835 million euros. estimated losses were 1.1 4 billion. nordea bank, the numbers have had. nejra: nordea bank reported net interest income for the fourth quarter that beat analyst estimate. 1.1 billion euros, which beat estimates of 1.08 billion euros. they show signs of making progress with an organization. let's get to the ceo of nordea on the phones us from helsinki. that number, what was behind that beat? where you helped by the interest rate environment? >> know, we were helped by higher activity which is led

ecb president christine lagarde s ability central bank' to ease policy in the next downturn. "elcome to "bloomberg daybreak on this thursday, february 6. summer earnings -- some earnings coming out this morning. fiat chrysler ebit coming bang in line with estimates, 2.1 2 billion euros. they see 2020 adjusted earnings above the range they had been looking for. they do see an increased ability uppede earnings, so they their guidance on that end. different story when it comes to gm and ford. also want to take a look at twitter. if you take a look at revenue, coming in better than estimated, over $1 billion. looking for a little bit shy of $1 billion. headline numbers, upping their guidance for the first quarter. the estimate was for about 800 aboutmillion -- for $862.9 million. beating by about $148 million. is down by about 0.1% in premarket. let's take a look at the broader market. on the one hand, you have warnings from jp morgan on risk. citigroup also calling potentially for complacency. s&p futures still grinding their way higher, up 0.4%. we did see another record close

it to be symmetric, inflation expectations, which is still anchored very low, also important, christine lagardellenging policymakers to think about government spending. francine: sure, but do you not need fiscal spending to actually do something big, use speak to german politicians, they come on the program, they say we are spending this much. atil germany actually spends lot of money that they have, can you really do anything by changing the inflation target? john: the issue you have, if you do achieve spending, whether it is germany, the dots, etc., whether it is fre -- the dutch, etc., whether it is france, it clamps it down the moment you turn the tabs on, then you are not working in concert. let's be clear, we talked about this in the past, it took a long time for europe to come together, but eventually, having looked at all the different options, it came to something, which was supportive of the banks, a comprehensive package that included the deals, so intervention works. francine: what is it too late? if you do the policies, have you missed it? john: this is the nature of the eurozone p

we just heard christine lagarde speak of the lower bound that we are at. ate on where -- on what negative interest rates are doing to continental europe. david: first, lagarde has been dealt a bad hand, in a sense, as she is stuck with the situation she inherited, and the question is how to get out of it. i believe there is a strong consensus at the lid -- at the political level that negative interest rates are responsible to a large extent for the discontent within the broader population for a feeling that we are no longer -- that the central banks are no longer in control of what is going on with monetary policy. anybody looking saying that i put money in my savings account and i lose, something is fundamentally wrong here. when i talk to my german relatives, they say what are you guys doing, you can't even get this right, we cannot even trust you. then back up to the political, creating pressure. i believe that this negative interest rate from here on out is not the policy tool of choice. the question is how to get out of it now. you cannot all of a sudd

. >> really interesting to see three of those top three ecb policymakers including christine lagardeng that even though we have low inflation when you look at the white line euros area inflation holding around 1.4%. core inflation at 1.1%. christine lagarde is reviewing a number of ecb policies including whether or not they should change that inflation target. all three of the key policymakers actually defended, sayingng philip lane negative interest rates are working and needed to revive inflation. this will also look at the non-core areas, including climate change, christine lagarde saying that to the european parliament as we continue to see stubbornly low inflation in the your area, including when you look at the swap forwards. nejra: thank you. janet, if we were already questioning the effectiveness of monetary policy in europe for coronavirus, that debate gets more heated now with unknown risks. >> absolutely. the outbreak of coronavirus has had an impact on europe that is not that big. the main impact is supply chain disruption and that will be more related to germany. 40% of

there is a broader point that christine lagarde is doing this review at the ecb.ants to make sure that the board gets along. things could pick up. if there are no tariffs from the u.s. on german cars. >> there are several factors. they sounded quite positive. the markets in the economy bounced back. that is the position they have taken so far. there is a whole new governing council. review will take most of their time this year. we are not expecting major changes. the consensus is there will be no changes. as far as the economy is concerned, the last quarter of 2019 was not good or the european economy. we had a backorder for italy, france. for france, it was more linked to the strikes. we will see what germany does. the results are coming up at the end of this week. francine: we will talk about german politics a little later in the program. next, the u.k. economy. francine: coronavirus deaths top 1000, growing by more than 100 in one day. investors overlook the economic impact, sending the s&p to another record high. stocks in europe join the rally. the corporate

christine lagarde unveils the ecb's 2020 report. a carmaker is set to unveil plans of to ask as many as 60,000 jobs. ♪ manus: welcome to "daybreak europe." we are on the road in abu dhabi. a lot of discussion here about what 2020 might hold. -- it has beenat frontloaded with a lot of risk. xi is using magical words about stimulus. good old-fashioned shovels in the ground traditional stimulus. re-manifestation of bubbles and leverage. nejra: good morning. perhaps that is why the equity market is taking the glass half-full approach, with u.s. stocks hitting more records yesterday. manus: indeed. i am having one of those magic moments on the road where i cannot hear you. i will go with it and go through my board. let's talk about what is happening with the currency markets. the yuan is strengthening. some people talking about 3.8% growth in the first quarter. the bottom line is, the global growth story. nejra: you are seeing futures in the green in the u.s. and europe. we could build on the record we had yesterday. japanese markets are

in terms of christine lagarde's comments, that is a material risk for asset classes more broadly.the outlook for most these banks is increasingly bearish. but if we do see a slowdown, their tools are rather limited. nejra: credit risk is at the lowest since the financial crisis. what is that telling you? >> that there is optimism in the markets. the big topic we are discussing is the coronavirus that unfortunately remains unknown. there are huge consequences at the human and economic level. job is to understand the economic consequences and the fact that credit spreads and equity markets are back to where they were precrisis. it shows investors are confident that growth consequent is would be limited, or alternatively, that monetary stimulus china has announced will mitigate the growth slowdown. my view is that it is a combination of those two. at thes more optimism speed of the acceleration is showing. speed we hear from experts implies that the number of infections is likely to peak. nejra: marcus stays with us. up next, we bring you all the latest on the news this morning. tidj

christine lagarde said they are not ready to do anything about it yet. scenes, one person said christine lagarde might be for pushing germany and other countries to open their wallets. that could be another reason is up today.ro most of the pressure has been on the fed. the markets are thinking this will force the fed's hand. move, butt want to especially now that the virus is in the u.s.. scarlet: we do have some earnings. beyond meet gave a full year net revenue forecast in fourth-quarter numbers that beat estimates. 20/20 revenue will be 400 $90 million to $510 million. analysts were looking for $485.7 yearon, so the full forecast beating the average estimate. 98 million dollars was the reported topline. nostalgia for beyond meet? very different vibe. joe: i'm curious. as this market continues to be volatile, people have their shopping list, asset classes, indices that attract them. is there anything you are watching that will rebound the fastest when this market does settle down? >> near-term, stocks with the dividend yields cushioning you on the way

ecb leader christine lagarde said the ecb is monitoring the outbreak carefully and will determine whetherause a long-lasting shock fears are calling for the fed to step in. a look at how soon that might happen >> pressure is growing on jay powell to react. coming from former fed officials, the president of course and especially markets. markets are pressing in a 68% of a rate cut as soon as march. a second cut now priced in with a 66% probability for june and a third cut with a 53% probability for september. saying she was concerned about a recession but that was not her base case. calling for immediate coordinated global rate cuts he said the reserve should lead the world to take immediate action the window to mitigate effects remain open but not for long >> speaking in mexico city today saying it would be premature to give any guidance on policy until it has more data it added that unless it is something it sees for adjustment, it will be required for the need jay powell faces a series of daunting places and whether cuts would do good at the moment in a supply cut to china. >> saying th

christine lagarde has this under review right now it the ecb.it stabilizes the banking system, then european banks come very attractive -- banks become very attractive. once that happens, we can see good price-performance and investment like the one you just described and many more. the penalty of the negative rate that went down to the retail depositor has essentially been neutralized back up to zero. we have to see because we have to watch it be implemented, but the early signs are positive. vonnie: you have some monetary policy experts on your team. saying the federal reserve will need to do in order to keep the economy stable and push inflation to where it is supposed to be while keeping things relatively cool internationally? david: we have that discussion internally all the time. the issues are these. we see the fed. it is in a pathway. we know they are likely to continue positive increasing sizes of their balance sheet into the summer. jay powell has alluded to that. the next question is, what is the composition of the assets? how much wi

investors and consumers right now but so far what we've heard from central bankers including christine lagarde here in frankfurt yesterday was that they don't really believe that this is going to be a long term economic problem and they're not really ready to step in with interest rate cuts so she's a lady and very for there for was another thing in singapore thank you. look at the effects the coronavirus is having on certain say is now officials calling off the geneva international motor show the biggest in the world it was a joke to begin next week but this was government has banned gatherings of a 1000 people more. the 1000000 people attended. but it is low cost airline easyjet says it's witnessed a significant softening of demand as a result of the bars the drop is primarily on flights in and out of its northern italian bases so far this year easyjet shares of folding more than 20 percent. and british airways says it's expecting a drop in profits this year to cancel flights on the back of the coronavirus flights to and from china italy singapore and south korea have been cancelled. the gro

elsewhere in germany, factory orders slump on the same day ecb president christine lagarde says the ecb has significantly reduced scope for action. is the central bank nearly out of ammunition? the year is taking a hit this euro is takinge a hit this afternoon. we are counting you down to the european close on "bloomberg markets." ♪ vonnie: lots of things going on in the market today. we had a first rate increase out of global monetary central banks today, with the check central czech centralhe bank increasing rates. the s&p 500 is rally and once again today. maybe rally is too strong a word, but it is up 0.2%. of forecasts for it to reach 3600 for the year. the 10 year yield at 1.65%, grinding higher. russia is holding out when it comes to it oil cut from opec. crude is in a holding pattern. of the earnings one notables, up 16% after beating on revenue and adding new users. guy: casper has just opened, the bed in a box company in the states. we saw a significant downgrade of the price into the ipo. they basically cut it in half. went out of the door at $12, now up someat $14.04, so 20%

christine lagarde indicating the virus is not yet in the stage of requiring a moving -- requiring ancb response. this is bloomberg. ♪ ♪ guy: from london, i'm guy johnson. vonnie: i'm vonnie quinn in new york. this is the european close on markets area we are back with daniel morris, with us in london. daniel, sets on futures may be rising 75 basis points to the year, but will the market do the fed's job for it to, in the sense we have low yields at least this week, and is the fed -- if the fed were to do that, is it even clear that would help things or the fed would be able for other reasons than just this drop in yields? daniel: i think the assumption is that the way the markets really should be viewing this is going to be a transitory shock to the economy. this is why you hear from the ecb, there should not be a knee-jerk reaction on coverage because this is in contrast to what happened last year when the fed were thinking about the medium-term impacts of higher tariffs and that justified for them cutting rates. there is a lot of parallels in terms of the chinese economy and u.s. e

president donald trump delivers the state of union address and we will hear from christine lagarde.re will be a u.s. payroll report. did it become a nonevent considering everything going on around us? >> almost everything has become a nonevent because we are tracking the coronavirus. it will still be an important data point. manufacturing will be an important data point. not trying to make a big deal of one week of numbers, but there is a coordination between pmi and manufacturing goals not being great. it is one more data point on a weakening manufacturing sector. anymore slowdown and job growth, it will affect the market. >> we have seen a leveling off and wage growth. it is not bad. if that continues and turns down, it will be a significant number. >> there is uncertainty around the market. job numbers will come in close and it will not be much of an issue. jonathan: rapidfire round. three quick questions, three quick answers. beginning with the coronavirus. the economic impact. will it be long-lasting? >> long-lasting. >> long-lasting. >> transitive. retest thean we september lo

christine lagarde spoke to european central bank presidentchristine lagarde spoke to parliament earlierthe domestic economy remains resilient and policymakers should be blamed for negative interest rates. >> this low-inflation environment has reduced the scope for the ecb and other central banks worldwide to ease monetary policy in the face of an economic downturn. >> surprisingly strong language, therefrom christine lagarde. the word significantly. to reduce scope for action. she said it is really time for governments to have the fiscal space, to use the fiscal space to support the economy. the message is that this is the next downturn we are talking about. not imminent threats, but there are imminent threats. she raised those. you talked about german factory orders, poor numbers for december, showing the worst isn't over for germany. also the coronavirus remains a threat to the global economy and therefore europe. >> bloomberg was first to report that russia is asking for more time before committing to an oil output cut that has been recommended by the opec plus group. the producers a

plus, president trump delivering the state of the union address hear from president christine lagardethursday the big one, coming up on thursday, u.s. payrolls report. did payrolls friday just become a little bit of a nonevent, considering everything that's going on around us? >> almost everything has become a nonevent because all we're is tracking the coronavirus. but it's still going to be an important data point. is going to be an important data point next week, given the fact that we had a chicago p.m.i. i'm not trying to make a big deal one of number, but it's coronationthe between chicago p.m.i. and manufacturing is not that great still, it's one more data point on a weakening manufacturing sector. slowdownt, any sort of in job growth, i think that the market is not going to take it favorably. >> i think wages are going to be big. it's still not bad, but seeing and ift to level off that continues, it turns down, that will be a significant number. very littlehere's uncertainty around the labor market, very little. that means the job number in pretty close and probably not much of

francine: when you look at the ecb and christine lagarde's biggest headache, is it just that?ck: if she can change one thing, that would be it. she would want more fiscal stimulus from the north which is germany and that would complement her monetary policy. it would be the right decision, i think. that is one thing if she could change that, that would be the thing. francine: what will we see from the ecb reviews? is that something you watch out for or is it tinkering at the margins? patrick: right now, i don't think there's going to be much changes. there won't be any shocking. the council did not really like the extension of qe. qe is going to stay. there is no growth in the economy. the longer this goes on, the more questionable the benefits of these policies will be. eventually, there will be a pushback against it but i don't think it is coming up soon. francine: do you see any value in europe or do you look to emerging markets? patrick: in europe, there is some value. what we have been biking europe is actually esg companies. aree are companies that trading at 20, 25 time

ism numbers, president trump delivering the state of the union address, and we hear from christine lagardesday. friday, the u.s. payrolls report. with me for a quick final thought, kathy jones, subadra rajappa, rob waldner. that friday, become a nonevent considering everything around us? subadra: almost everything has become a nonevent tracking the coronavirus. but it's, you know, it's still going to be an important data point. manufacturing will be important next week, given we had a weak chicago pmi. not trying to make a big deal of one week numbers, but it's kind of in a correlation of chicago pmi, and ism manufacturing is also not great. but still it's one more data point on the weak manufacturing sector. add to that any slowdown in job growth, the markets will not take that well. jonathan: kathy? kathy: yeah, i think wages will be the big one. we've seen a little leveling off in wage growth, but if that continues or turns down, that will be a significant number. jonathan: rob, quickly? rob: very little uncertainty around the labor market. jobs number comes in pretty close, not much of

italy,e more cases in 520 now, and we heard from the ecb president, christine lagarde, saying when itit may not require central-bank policy yet. the vice president of the central bank saying it is important not to overreact. lagarde saying, at this point, they do not see inflation having a long-lasting impact from this outbreak. this seems to echo what we heard from analysts and central bankers that perhaps monitoring policy is not the best solution. >> as we see a slowing in the infection rate in china, the who is saying this is a decisive point to fight to contain the epidemic elsewhere. yvonne: right, and it would be interesting to see what we see out of south korea. now, even the cases in south korea, the fresh cases, are surpassing what we are seeing in china. we saw about 300 or so today in china and we saw 505 cases out of south korea on thursday, which was the biggest daily spike that we saw from that country. the president, moon jae-in, has come under heavy fire over the government's response over this, and now, the opposition is now saying his incompetency is going to be the

we start in brussels, where christine lagarde, president of the european central bank, will appear beforeed from the european union. only an hour or so later, crew members from the international space station are due to touch down in kazakhstan. among them will be nasa astronaut christina koch, among them will be nasa who has just completed the longest ever single space—flight by a woman. later on in new york, president trump's special adviser, and son—in—law, jared kushner will present his middle east peace plan to the un security council. the proposals have been welcomed by the israelis and condemned by the palestinians. now it's time to get all the latest from the bbc sports ccentre. hello there. i'm tulsen tollett and this is your thursday sport briefing, where we start with the footballing news that tottenham came from behind to beat southampton 3—2 in their 4th round fa cup replay. lucas moura had levelled matters at 2—2 with 12 minutes remaining before son heung min earned and then scored the penalty that sees jose mourinho's team set up a last 16 clash against norwich city. we pla

christine lagarde pretty much saying nothing. the central bank in south korea, at the epicenter of this, does not cut interest rates. what do you think is holding them back? subadra: i am sympathetic to their position. they are in a very tough spot. this is a classic supply-side shock. it is hard to justify that monetary policy will really move the needle when it comes to providing stimulus. but the market is already pricing in for cuts. the one metric we track closely is the first fed funds contract. that has inverted. typically, any time it inverts beyond, say, 25 basis points, the fed has followed through and delivered a rate cut. now, that curve is a close to -50 basis points. it is almost certain that the fed might have to act, because, in the last three decades, any time that part of the curve has inverted, the fed has followed through and cut rates. jonathan: let's put it couple of these things together. when it comes to the efficacy, which you have touched on, do you think that is what is holding them back? the nature of

rupert: christine lagarde was sensibly very cautious.blem is raising expectations of ecb policy action. they have run out of options. what you will hear from christine lagarde with the politics of her agenda is squaring up to the european governments and saying it is time for governments to act. francine: when you look at the various -- is there anything the ecb can actually do? what do words do? if people fear, and this is the problem, it is not like a fancy pants economic crisis, it is like people don't want to go out and buy stuff. will we see cash flow directly from the ecb? carsten: no, talking about helicopter money, the ecb the could start a tltro and link it to current accounts, but we are not there yet. there is very little the ecb can do. it is not that lagarde can tell the public, go out and buy stuff, so all the ecb can do is caution financial markets, we are aware and monitoring the situation closely, and we are slightly more concerned than before. francine: this could become a consumer problem. rupert: it is not a financial

christine lagarde is head of the european central bank. she is not trained as an economist.central bank, there are women governors but not the head. like that you mentioned mary daly. i am in san francisco. she's at the san francisco fed. janetlso graduated yellen. any key takeaways from what the san francisco fed is doing to help promote -- promote these women that you have rarely seen other central banking systems? that, when you are talking about getting women to the top of management, we just need to increase the number of women at all levels of central banking so that more women who choose to compete for the top job are available to do so. i think that is the first step. the federal reserve system is very cognizant of this. i was at a conference of years where they wanted to learn about diversity in the economic profession. doing tohop we are promote women in professions. i think the federal reserve system is taking this on directly. i think that other central banks , i know that there's a joint conference between bank of england and the federal reserve system about the

and -- in a move similar to the long-term repo of the european central bank under mario draghi christine lagardeolicymakers are left with few options on stimulus. the coronavirus presents yet another challenge. she says the economy remains resilient, but global threats could undermine that. her warning came as a new data showed a huge fall in german factory orders, indicating the session is far from over. global news 24 hours a day, on air and on a quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm jessica summers. this is bloomberg. news out have breaking of china. they say the coronavirus death toll has risen to 600 36 and coronavirus confirmed cases climbing to 31,100 61. again, breaking news, china reporting 630 six deaths from the coronavirus outbreak. china, of course, ramping up its containment efforts while at the same time voicing strong objections to the mounting travel restrictions from other regions. our correspondent selina wang joins us. beijing carrying out its own containment measures but not happy with other countries not f

scarlet: christine lagarde, the president of the ecb, will be speaking at european parliament.r, she has been fairly cautious about what she has telegraphed. at some point, do you think she will start to go out on a limb and little bit more to push governments to start spending more and really taking some of the burden off monetary authority. think she has been sending that message that monetary policy alone is not enough. policyperiod of monetary -- it is much better if you have fiscal policy coming alongside. message probably going to remain core and she will be watching some other developments before she branches out on her own, i believe. romaine: that is dana peterson, citigroup global economist. breaking news. 6.5 million shares set to be offered up morgan shanley -- morgan stanley. the shares closed around $40 per ,hare coming up on this program the final. democratic candidates make their case in new hampshire but they don't have the state to themselves. my president trump decided to hold his own rally -- why the trump decided to hold his own rally in the granite state.

you hear calls from the ecb, from christine lagarde for more stimulus. you heard calls from draghi for that as well. i think market watchers are hoping that christine lagarde is going to be more successful in getting that out of berlin. this number might help them do it because of course, they want to avoid a recession. they did avoid a recession, but the finance minister says -- the economy minister, i should say, says that the coronavirus is an increasing threat to the german economy. we saw the first factory in carpe idled in the industry. it was not a german carmaker, but fiat chrysler has idled in serbia because of the coronavirus screwing up their supply chain and making it impossible for them to get any work done. that kind of thing can happen in germany, too. that is the kind of threat they need to fight against. this figure doesn't really help them to prepare for the beginning of a difficult 2020. alix: it's a great point. thank you. now we had to france, where renaud is moving to a reinsurer investors. the automaker's interim ceo says they have

christine lagarde is looking at it.ed to sustain growth, but they should to sting in their credit buying between green and brown bonds, and they shouldn't just buy bonds regardless. but this is up for grabs, so christine lagarde's ecb is currently doing a major strategic review. the markets are refocused on the inflation target, and this whole issue about climate change will really go forward on the inflation target itself. alix: when you look at the carbon tax, what is the direct relationship here? david: any economist would argue that there should be a substantial carbon tax to address climate change viviana: that hasn't -- to address climate change. that hasn't happened yet. that is where we could go. obviously in the u.k., we've got this target of no net emissions by 2050, which the government is trying to bring forward. this requires substantial investment by government and authorities to try to come up with alternatives. at the end of the day, it is going to be costly. that is the issue. i think there's more and m

there is optimism that christine lagarde, as the new head, is going to have a little bit more successgerman attitudes are changing a little bit about that, possibly getting a little more relaxed in terms of spending, and they do need to beef up the military, especially if they can count on the u.s. a lot less than they were able to previously. vonnie: matt miller in munich for that security conference for us, thank you. you can see he has wrapped up. it is a cool 44 degrees there right now. guy: for more on these markets, we are joined now by ubs global head of debt syndicate armin peter. if they actually put it on the screen, i might be able to read it. let me talk about where these markets are at the moment. we are in the situation where debt markets, equity markets, pretty much every market is on a tear at the moment. there seems to be disbelief that if coronavirus is a problem, then the pboc, the ecb, the boe, the fed, pre-much every central bank around the world is going to step up. is that a step too far? i think it is exactly with the market is currently thinking. have been loo

what should investors price for with christine lagarde saying there is no need for an ecb response, germanynuing -- germany considering stimulus? >> there will be a need for a response. potentially a disinflationary or deflationary shop when you have complex systems across so many different sectors, it doesn't bring every central bank into play. maybe not on interest rates because the interest rate on the deposit rate is -.5, but we will probably have to see some fairly innovative and unconventional measures brought in by the ecb. >> you wonder if that will take the euro down. the euro has actually gained this week. martin malone is staying with us. scott minard said the coronavirus is possibly the worst thing he has ever seen as a money manager. stocks could drop 30% to 40%. more on that next. this is bloomberg. ♪ [ fast-paced drumming ] [ fast-paced drumming ] nejra: good morning from bloomberg's european headquarters in the city of london. asia stocks following coronavirus fears. the s&p 500 saw its worst session since 2011 and the fastest stock market correction ever. $5 trillion in glo

europe on alert, christine lagarde welcomes the possibility of a fiscal boost in germany.aly battles the crisis, the prime minister is said to be underestimating the threat, condemning the french president today. ♪ nejra: welcome to "daybreak: europe." adjusted ebitda coming in at 2.40 8 billion euros. a little soft on that number. in terms of what else were looking at, 2020 sales up about 4% on an adjusted basis. outlookng the 2020 doesn't include the coronavirus impact. that's the cabbie out there. they haven't seem to give much guidance on the coronavirus impact at the moment. fourth quarter -- the estimate was 119, so that is a beat. was served in february and in terms of the settlement bayer isstate, continuing talks to find a settlement on glyphosate. the made headline coming in -- main headline coming in at miss. manus: we've been talking about the spread of coronavirus across the world. clarity coming through from the world health official who said the virus has been inflated due to testing errors. the local press is commenting. a little bit of clarity as the days

is substantial deterioration of the economy also in europe from that coronavirus outbreak and christine lagarde will perhaps face a tricky situation when the next policy meeting will be coming up in march only. but in march will clearly have a vision of how bad the impact might actually be also on the europe economy by that as well on the inflation expectations with that, back to you >> thank you so much for putting these ifo numbers into context for us >>> all right. let's give you the latest now on italy. italy has imposed a series of quarantine measures on ten towns after reporting a spike in coronavirus infections authorities have confirmed that a fourth person died from the virus overnight. there are 152 confirmed cases. the regions make up around 30% of italy's economic output while the affected towns are just south of the financial hub of milan. >>> eu economy commissioner says italy can deal with the coronavirus threat speaking to cnbc at a meeting of g20 finance ministers in riyadh, he said authorities in the country have the situation under control. >> there's absolutely no reason for

christine lagarde has made it very clear, following on from what mario draghi used to say, that we are basically out of ammunition. are we starting to hear that from the fed as well? peter: i don't think jay powell would agree with that. i think he would argue that forward guidance is signaling to the markets that you will k b -- that you will keep rates low for a long time and asset purchases, quantitative easing, could allow the fed to stimulate the economy if needed. tool.tes is not the main vonnie: michael, they talked about some other topics as well, including climate change. the fed chair calling it an emerging risk, which is interesting. also, what of the senators asked if china developed a digital currency, do we need to have our own. michael: it is interesting for the fed because something like that is going to happen, but how is it going to be used? right now, it is basically a tool for people doing black-market activities. no country is going to want to give up their sovereignty over their own money, so it is a question of how you go about building something that everybody i

christine lagarde said we are not on autopilot.es: she is doing quite a good job of buying time but the review, i don't think is going to achieve an awful lot because they don't want to go back to square one. and admit they were wrong all along. maybe in the margin we see a bit more symmetry but packing the economy with policy will be next to nothing. iain: the one thing that might be interesting from the rate standpoint, we talked about the fact they would be losing rates stopping the quantitative easing when they were looking boosting the size of support. may move rates first. there might be a slight difference. thank you both. let's focus on brexit in the future of scotland and the u.k.. let's go to brussels and to maria. maria: we are now joined by nicola sturgeon. thank you for being with us. the obvious question, brexit has happened and we are moving into the future. have you heard anything from the prime minister in terms of what he is thinking or hoping to get out of this question mark -- in aboris johnson very hard brexit

christine lagarde downplayed the prospects of an imminent ecb response to the coronavirus.s evans, who is not a voting member, he suggested the fed should significantly overshoot their target. some people interpreted that as maybe a cut before march, maybe at march. i interpret it as underscoring the fact that if our economy gets weaker and their greatest worry at the fed has been, you know, the inflation, we could be in serious trouble. >> even before this, before this virus scare, within the fed there was a growing belief they had to change their inflation targeting. so already, they are accommodative. already i think they are on the same page as donald trump when it comes to inflation. one other thing really quickly, i would like to mention. that is to me, the most bullish story of the last several weeks has been overlooked and that is bernie sanders probably will win the nomination, which means that not only will trump win re-election, i think the house could flip, the senate will definitely stay republican. that's a tremendously bullish story for the markets. charles:

basement quite yet, but it is beginning to have an effect after what we heard from powell and from christine lagardeat the central banks of the world don't have too much ammunition to fight a contraction, i think it will be important for the viewers to watch carefully. the more of this stuff that comes out that hints maybe we'll get a contraction that could seep into the united states, that could be a problem. >> the freight rates are something to watch what it could mean for inventories at least in the near to medium term art cashin, thanks for joining us today >> my pleasure >>> massive layoff, a restructuring of the c suite and a big loss of the quarter not enough to keep aurora cannabis down joining us is the executive chairman, interim ceo, michael singer thanks for time today. good morning >> thank you for having me >> we know about all the changes and not all of the trouble in the industry is obviously within your control but when you see production down 26, sales volume down 24, can it get worse from here? >> no. in fact, we announced our q2 results today but it was exactly in line with the

. >> i thought about you yesterday, yesterday or this morning, christine lagarde, central bank openlyg the idea maybe they don't have enough dry powder if you will to fight back when the next recession comes. this is something you said many times. what are your thought on that? despite her saying this, to your point, looks like central banks will continue to cut rates? >> they can continue to cut rates, charles. we have only so much to cut at this point. charles: going into numbers, you can go forever into the negative side? >> theoretically yes. that is quite un-american. i would hate to see us go down that path. powell is adamant that the fed is not considering negative interest rates. that helps me sleep at nights. they will continue to grow the balance sheet. i'm there with senator scott who wrote an open letter to jay powell, you have to stop growing the fed's balance sheet. you are mon advertising the national debt. charles: you wrote an op-ed talking about the fed and the housing market. one of my investment thesis for this year is a housing boom led by millenials. you're sayin

>> the message i am hearing is that this came from christine lagarde. banks have already done a lot. interest rates are already very low. is a limit to how much monetary policy can accomplish. anna: thank you so much. let's get a bloomberg business flash. is losing money again. a sign of continuing struggles. overall, the japanese conglomerate returned to profit. heineken's chief executive is leaving on a high note. he is stepping down after almost 15 years. she will be replaced by the current head of asian-pacific. arlos ghosn.uing c the fines may increase. charged with financial misconduct in 2018. he was to face trial before his ago.tic escape six weeks that is your bloomberg business flash. matt: thank you very much. bp'a new ceo delivers his vision for the company. us in ane speaking to exclusive interview at 5:30 p.m. u.k. time. , the access of london financial service terms to the eu is a big battleground. we will bearing the -- bring you the latest on that. this is bloomberg. ♪ matt: welcome back. we are 10 minutes into the trading session. alth

president ecb now, christine lagarde says a decade fighting crises left policymakers with few options as to stimulus. the coronavirus presents another challenge. the zone economy remains resilient, pluggable threats could undermine that. the morning came as new data showed a huge decline in german factory orders, indicating a recession there is far from over. and the democratic caucus in iowa is still undecided. the associated press news agency says it cannot declare a winner for monday's vote, 97% of precincts now having reported pete buttigieg leads pretty -- bernie sanders by less than .2 percentage points. the democratic national convention is now asking for the vote count to be rechecked to make sure it adds up correctly. global news, 24 hours a day on air and on quicktake by bloomberg, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. haslinda: thank you so much for that. as we speak, china officials are holding a briefing right now. senior officials from the central bank and finance ministry or holding a briefing a

slump is beginning to bounce higher, alsot modestly this is reflected in comments we saw from christine lagardeesterday when she said the year area yes,my remains resilient it faces continued headwinds, but ultimately, the outlook remains that we will see modest momentum through 2020. yes, data was weak, but maybe not focusing on that. anna: laura, thanks so much. interesting to see finn air reacting to the buyers as well. finn air saying it does not provide full-year revenue estimates due to the lack of visibility. up next, we take a look at stocks to watch. themeng with the beauty in the company releases earnings and guidance. we'll talk about the potential impact on the resignation -- of the resignation of tidjane thiam. we get your stocks to watch before trade bloomberg radio is available to you on your device or on dab digital and far beyond. this is bloomberg. ♪ anna: welcome back to the european open. we are minutes away from the start of the trading day and futures are looking negative. looking tots perhaps a little bit of downside. clearly, the coronavirus has been ongoing as a story o

but i don't think it's more difficult to buy some time christine lagarde is a fabulous leader i knew her old job while they're in the middle of a comprehensive review, the facts on the ground are changing quickly. >> i mentioned you because you rhetorically follow us all week long with the question of what does a quarter point have to do with stopping the pandemic kevin made his case. i don't know if you were able to listen to all of that, or where were you for the last half hour? >> this point is if central bankers all talk this weekend, come up with a concerted response to buy some time and a detente to just maybe put things on hold for a while to see exactly how this plays out that's your answer on what a quarter point would do would you like to push back on him that it actually wouldn't help >> joe, put it this way. i'm more skeptical about the effectiveness of this rate cut than i have been about others. and the reason is because i think about what level of interest rate would cause me to want to go to a concert and possibly get coronavirus the demand that would be stimulated fr

matt: christine lagarde also wants to see stimulus, mainly for her, it would be great to have it comef berlin. same with draghi. do you think we're going to see fiscal health come out of european governments, specifically the biggest? barret: that's an interesting point. and the eurozone is in a conundrum. the country that has the fiscal space to engage in ingressive -- aggressive political expansion don't have the will. but the ones with the will don't have the political space. that's the number one point. number two is the eurozone lacks the structural centralized policymaking tools in the way that the u.s., say, for example has. that's why the ecb has called for that to be established. matt: it's a great point. when i talk to all of schmaltz -- coal schultz, he says even if we do spend a lot of money, it doesn't really help other governments. it doesn't help other economies outside of germany. do you by that? barret: i buy that a bit. but the competency of european authorities with a national 30's, they are increased -- national authorities, they are increased on having this centra

christine lagarde is now insisting that she's an owl and that monetary policy can go anywhere from hereer marketseeing live, it seems to be a little bit hostage to external development at the moment. it really hasn't displayed that reaction that we've seen from the data. it makes sense because traders have been burned before in the euro, believing there is a revival in growth coming, only to be disappointed and met with an extension of ecb qe and all of that. they've been burned before. there is certainly a sense of caution, but still, it is a head scratcher as to why. marcus: the question is, what is your spirit animal? we've got owls, we've got bears. [laughter] alix: what is your spirit animal? marcus: surely the bulls. daniel: the question as to what has been going on with the euros, it is going to be growth or interest rates, but we don't want to forget trade. let's call monetary policy neutral. no one is doing anything, at least for now. see.r-term, we will that gets suspected trade, which is also, for now, not so much in the news, but that's where the risk is. trump decides every

matt: we heard a lot of people, including christine lagarde, ask for those countries that have fiscaluse it, and we continue to hear these calls repeatedly. does it frustrate you if you already think germany is doing that? it is amann: i think situation where you can repeat your argument and explain why you have a different view, and also highlight that we have a specific setting in the euro area where countries decided to share one monetary policy, but with independent fiscal policies , the responsibility for those is at the national level. it is a bit inconsistent in that framework to ask countries to spend for other countries, and the solution to that would be more fiscal integration for national fiscal responsibility. debate we have been used to hearing for a while. matt: would it be inappropriate for those countries that have the money to spend for those that don't? the calculations we have done here at the bank have highlighted that these are minimal. if you construct a bridge in germany, does it really benefit other countries to the extent warranted? i would say it is unlikely.