china italy singapore and south korea have been canceled normally be a holding company the international airlines group would expect to forecast profits at this time of year but that's not currently possible it's because the duration and potential effects of the coronavirus crisis remain unclear. when now to an unexpected turn of events and long running diesel emissions scandal the german comic who says it's struck a compensation deal with domestic consumer groups representing hundreds of thousands of diesel car owners deceived by v.w. the details will follow over the course of the day the deal effect around $400000.00 customers earlier this month initial negotiations between the 2 sides broke down with both groups blaming each other. post brick said to trade negotiations are set to begin next week the e.u. says a deal is possible if both sides agree to stick to promises made in the run up to brics it brussels hopes to preserve a level playing field of standards and regulations across the continent but london has indicated it may not play ball because it's better to have no deal than to compromise that

in a 10 percent correction could become a 20 percent bear market very quickly shares of international airlines group was among the worst performing large cap stocks with british airways and iberia losing nearly 9 percent of the. years of anglo german travel group they also fell about 9 percent let's move over to south america where the evil vest but in brazil was also down this week markets actually reopened after the annual carneval celebration the plunging numbers stocks dropped more than 7 percent on wednesday recording their worst one day percentage fall since may of 2017 and mexico the b.m.v. is also down as mexico central bank cut 2020 growth forecasts for the entire year we'll see what happens there and here in the united states the s. and p. 500 the new york stock exchange and the nasdaq are all down now we've been talking about this all week this isn't just the worst decline since the 2008 financial crisis it is the fastest ever 10 percent drop or oil prices drop more than 2 percent with bring crude setting at its lowest level since december of 2018 the technology sector is down 12 percent

the ceo of international airlines group believes the impact on global air travel demand will be marginal. american and united will suspend flights to hong kong following the first related virus death in the territory. in japan, 10 cases have been confirmed on a cruise ship there are 3,700 people on board. >> matt, can you tell us how markets are fairing today. it seems there is a relief rally despite as you mentioned still more deaths from coronavirus >> absolutely right. despite the fact that there are more cases, another strong day again, on the back of the stabilization for the china markets. strong gains for the likes of japan up more than 1%. remember, we had a strong day yesterday coming off those highs around a third of one percent. the shanghai composite positive. another strong performance up by a quarter of one percent coming through from china to offset the coronavirus that could include cuts to the triple a. china may down grade the growth forecast in the spread of the virus. that death toll was at 490 there. we are seeing gains in the china markets. that's why it is flowing

the middle eastern carrier now owns just over a quarter of shares in international airlines group, whichues to support its strategy. if you're looking for a copy of the daily telegraph to read on the train, you won't find it at whsmith. the retailer has stopped selling the newspaper at its 120 train station stores in a row over its share of the price. the telegraph raised its price from £2 to £2.50 but will not increase the share of the price that it pays to retailers. the federation of independent retailers says it's disappointing at a time when newsagents are under financial pressure. and metro bank has appointed dan frumkin as its new chief executive. he'd been doing thejob in the interim since the newcomer bank's founder vernon hill and former chief craig donaldson resigned over a major accounting error. the new boss says the bank has, "robust foundations and real "potential to shake up british banking." investor sentiment in general has been boosted by a decline in the number of new cases of the coronavirus. you can see that bourne out by the ftse100 here in london, up by not .7%. h

. >> international airlines group which owns the likes of british airlines down the most today on the news that the extra runway at heathrow is not going to be built. so that's a double whammy for them down sharply. >>> still to come, vice chairman krishna guha is coming up in a few moments time we are down 800 points again on the dow, 3% in percentage terms pretty much for the dow and the s&p. nasdaq down 2.3%. >> 33 minutes left to go here are the three things driving the action the major averages falling into correction territory as the global outbreak of coronavirus gross. goldman sachs warning that companies may generate zero and oil prices and treasury prices falling sharply on all of those fears. >> let's send it over to mike. >> we're going to pick up on the point about goldman sachs's call it really would be the second flat year in a row this is gold man's chart on its previous expectation for the path of earnings, 174 for s&p 500 earnings for this year was the previous estimate. now downgrading that to 165. what does that mean for valuation? well, down here, we actually met

traffic that's what everybody is focused on right now >> also the bread and butter for international airlines group why they're down 24% for the week mike, these guys are suddenly very cheap >> yeah. certainly absolutely cheap if they're anywhere near. the great operating leverage they enjoy when planes are full and everyone's busy. and businesses are spending. it's just running in reverse right now. so i think it's a difficult place to step in if you want to say i want to bet on a comeback. how many big companies are really just starting to say we're curtailing business travel right now. and so that's going to be an overhang >> we also don't know what it's going to look like in this country and therefore we don't know what the decisions of consumers are going to be. right now domestic travel is fine >> for now >> it's a very difficult decision to make right now especially because i know many corporations are really telling their employees, you know, ixnay on the international travel. but it also becomes the fear of the consumer too does the consumer get scared to get on an airplane >> we've got se

airlines basically has no international presence. a little bit, whatever, puerto rico, that's it. this is the market saying people are going to be nervous about congregating in groups and doing things where they might spend money. >> so we've never contemplated this dynamic in this country, at least not in my lifetime as has been pointed out here, we have a case where this is typically a contained geographic event. consumer confidence has been critical to this market. the other side of this, though, when the fed starts to say and there's been quotes over the last couple days, essentially we're ready to respond or we're watching, what can the fed do at this point it gets to something we also talk about on this show for a long time. to me the fed's comments sound a lot like the boj who has been flailing in the wind for many years here you're right, brian, to point out the domestic element of that selloff. i think airlines, multinational ones, i think the entire airline space is being sold for that reason >> guys, we've got to move on. we'll get back to this macro discussion we have to turn to the other big breaking story of the evening. a rather shocking move bob ige

airlines. blocking countries are .assengers also the department of homeland security is directing groups from china to one of seven international airports. of course, equity markets return for the first time since the lunar new year break. what are we expecting to see? selina: every market has had a chance to react to the coronavirus except for china and they want to make sure they call nerves and try to contain any signs of a selloff. they had ruled out a slew of targeted measures, so the central bank is providing $21 million of liquidity for the market. on saturday they also said they would increase lending to the whole economy. and then they would relent, and this is after last week, china's biggest bank at the center of the outbreak. but really these measures have been targeted to address the immediate market and economic concerns. they are expecting this to have a more protracted impact. people are not going out and spending. and that may be impacted by the extension of the lunar new year holiday. and they do not want investors to react irrationally and they are asking investors to look rationally at the concerns here. pau

outbreak according to the international air transport association, the virus's impact on demand will cost airlines globally more than $29 billion, mostly in the asia pacific region the groupse airlines will lose some $12.8 billion in revenue because of the outbreak. the price of jet fuel is under pressure because of the outbreak >> when we return, morgan stanley igniting banking takeover buzz with its deal for e-trade. jim bullard is here today and he's going to talk about the state of the banks check out coca-cola, the company out with a statement today estimating that the impact of the coronavirus on its earnings, it says it's going to look at the virus cutting current quarter earnings by one to two cents a share. however, they add they still expect to achieve full year targets. right now the stock is down 7 cents. "squawk box" will be right back. , boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's the most open and secure public cloud for business. it can manage all your apps and data from anywhere. so it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. wit