vonnie. vonnie: kailey leinz, thank you for that. of president trump's nominees for the federal reserve board of governors, judy shelton, is coming under fire. she faced criticism from republicans as well as democrats. here's a sample of comments from the senate banking committee hearing. >> in an emergency situation, i think the most important thing is to restore that -- >> would you recommend that we deficit spend dramatically? reluctantly, if it appears that there is stimulus potential in doing so, but -- >> that as a yes? that is a yes. vonnie: we are joined by bloomberg federal reserve reporter matt poser. what does a governor at the federal reserve do, and what are the qualifications? reporter: whereas the fed presidents rotate in and out of the committee every two years, the fed governors always have a vote, and also take on a lot of important responsibilities at the central bank at the national level, things like supervision and regulation, big picture design of the financial system types of things, as opposed to running a bi

vonnie: i am vonnie quinn and this is "bloomberg markets."c car maker is double this year. trying to figure out just how elon musk is doing this. joining us is david wells. it has been a phenomenal rally. what is behind this? david: tesla has answered a lot of questions in the last two barricades were poking calls on the tesla story. they said they could not make money or generate cash and they would have to go back to the markets for more cash to find elon musk's ambitions. they have been profitable to quarters in a row. profitable in the fourth quarter of last year. complained that elin could never hit production targets -- elo could never hitn production targets. elon thanks this will outsell all other vehicles combined. they were a year late at least with everything that came out with. they are starting to really operate this company. i think it has many sentiment change industrywide the age of electric asian is here -- electrification is here. i think there will be a big car pileup with these coming to market, but they capture the imagin

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn.uy: and from london, i am guy johnson. this is "bloomberg markets." theail doolittle, what are markets looking like? abigail: we are not seeing the rally that the bulls may have hoped for. in the u.s., the nasdaq is up .02%. yesterday, the dow and s&p 500 had the worst day in two years. the dow is down . 75%, a bearish reversal. in europe, bearish on the stoxx 600. in the 10 year yield down is down about three basis points. looking at the volatility through an overnight chart of the e-mini futures, and you, can see doing the asian session there was a nice rebound for stocks. negative around the open, higher, then lower. now they are about flat. the s&p 500 cash is flat well. there is reason to think that the s&p 500 has more work to the downside. the sellers will continue to take control. by buyers disappearing yesterday. on the bloomberg terminal, here is an interesting chart on the dow transport on bottom, below the 50 day moving average, jump a below the 200 day moving average yeste

vonnie: i'm vonnie quinn in new york.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. economy because of the coronavirus, but you should not -- at this point, we think what the market has priced and is

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn.: from london, i'm guy johnson. this is "bloomberg markets." let's check those markets now. bad day for the chinese markets, better day in europe and the united states. abigail doolittle, over to you. abigail: take a look at the u.s. the s&p 500 up 1.2 percent after falling nearly 2% on friday, the worst day in quite some time, and the worst week last week since august. the fears around what economic impact could be falling a bit. the dow transports has been down even more than the s&p 500, down on the year about 2%, but a little bit of a bounce back for that index. in europe we see gains. we have some big weakness for some of the asian markets. if we take a look at the shame -- the shanghai composite, the ont session that we had monday was january 23, and the lunar new year plus three days extended over the coronavirus, over this time, an official correction at the lows in the monday session for the shanghai composite, down the most since 2007, but right here the worst since 2015. we

vonnie: exactly. at what point do companies really need to start thinking about moving their supply chain, about putting in contingency plans and using those contingency plans? the chinartunately, trade issues had already gotten companies moving out of china to some degree. there are plants going to vietnam and malaysia and so forth. apple is talking about moving some work. there's question about some of their new products, likely a new low-end phone, their new 5g phones in the fall, do they have to move that? i think there's no question that this is going to accelerate that move of manufacturing out of china, which i think was going to continue long-term because of that philosophical difference, but now with the health questions, it probably will accelerate. guy: i'm curious as to your take on china. you are basically saying that apple is overexposed to china. is that what it boils down to? steven: well, they made a big bet on china. it has worked in their favor historically because they have been on

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn.: from london, i'm guy johnson. this is "bloomberg markets." let's check in on the market story with abigail doolittle. abigail: the story today is certainly risk on. the equity indexes around the world, lots of green on the screen. 0.4%, the nasdaq up 0.7%, the chip index up about 2% on hopes that the coronavirus situation in china, that tragedy, is not going to impact that supply chain for chips all that much. we also see the stoxx 600 in europe up, and during the asian session, the nikkei was especially strong in japan. as for what is beneath the seeace in the u.s., you can most sectors are higher, so investors are really going towards stocks. utilities, real estate, those are high dividend yielding stocks, so we will be talking a look at rates in a moment. when rates go higher, those dividends look less attractive. i was mentioning the strength for the technology and chips. there you see it with tech up 0.7%. helping the financials and hurting real estate and utilities, that is the

vonnie: thank you. with the economic fallout from the coronavirus outbreak, china's auto industry is feeling the impact. subsidiesmay extend for ev purchases beyond 2020 in an effort to revive sales. we are joined on the phone by tom orlik, chief economist of bloomberg economics. just another in the list of things that presumably, chinese officials are considering. tom: that's right. i think the signals coming out of china suggest the balance of concerns remains on containing the health risks from the virus and bringing the outbreak under control, but we are seeing more indications from china's policymakers that they also want to guard against a big drop in growth. saying thattburo they needed to ensure that demand at home and abroad remained robust. that is the backdrop of some early data. business surveys, korean export numbers showing alarming drop in china's growth in february. guy: i've just seen a headline coming up from the world health organization, which is now concerned about the virus increas

vonnie: thank you. programming reminder, bloomberg television will have special coverage of the new hamster primaries next tuesday, february 11th -- the new hampshire primaries next tuesday, february 11. this is bloomberg. ♪ ♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." for bloomberg first word news, here's ritika gupta. ritika: president trump poised to be acquitted in the senate impeachment trial today. the process began when the house launched a formal inquiry into the president's dealings with ukraine. a big victory for pete buttigieg and a big setback for joe biden. buttigieg maintain his lead in the iowa caucuses after a second batch of results were released. bernie sanders a close second. biden finished fourth behind elizabeth warren. he is trying to prove his ill at the ability against president trump -- prove his electability against president trump. a huge surprise in the adp employment figures for january. u.s.

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn.: this is bloomberg markets, i am guy johnson. democrats ripped into each other ahead of the south carolina primary, the main target was the frontrunner, bernie sanders. getot only is this a way to donald trump reelected, we have a house to worry about. we have a senate to worry about. >> i like bernie, we came in together, but i don't think this is the best person to lead the ticket. >> i dug in and did the work, and bernie trashed me for it. tracked muchasn't of anything. >> donald trump thinks it would be better if he's president and i do not think so. vladimir putin things that donald trump should be president and that's why russia is helping you get elected so that you lose to him. remind,i was -- just to mike bloomberg is the owner of bloomberg lc. let's get to south carolina, kevin cirilli is standing by. the verdict on who has the momentum right now coming out of the debate? then: i'm not sure trajectory has changed significantly since last night, senator sanders still poised t

vonnie quinn. guy: in london, i'm guy johnson by vonnie: we are in -- we are 30 minutes into the trading session. amount for the coronavirus. the 10 year yield is at an all-time low. every group in the s&p 500 is down. energy, car parts, tech. the index is down 2.5%. the 10 year yield creeping back up a basis point of two, but we the -- wethe close to were very, very close to the lows. selloff in crude oil as well. guy: absolutely. over here, stoxx 600, 595 stocks are lower. five or higher. that tells you about what we are seeing. the stoxx 600 down by 3.8%. i have to mention the volume is very, very substantial. some of the peripheral markets in italy trading down very, very sharply today. 5.5%.y ten-year is catching a bit with -48. daxie, let me show you the over here. a lot of people were short long. we are getting a squeeze when it comes to the b stocks. 73 -- 74% move of stocks. a huge gap higher. vonnie? vonnie: coronavirus concerns battling global markets at this hour. italy is at the epicen

vonnie: from new york, i'm vonnie quinn this is -- vonnie quinn. this is "bloomberg markets." guy.t's turn our attention to what is happening in turkey, and figure out exact a what is happening there. the turks have decided to ask the united states if they can have patriot missiles, which they will put on the southern border with syria. basically, this is to deter russian action in the italy province. . the history behind this is -- in the idlib province. the history behind this is very important. a defenseently bought system much to the annoyance of washington. let's go to istanbul to get the latest on this. ant is joiningr us. talk about how big a surprise this is. we have seen all of the issues surrounding the s4 hundred purchase, and then we get an issue where basically, the turks need the patriot missile system. this is a huge turnaround. onur: it certainly is. relations has been on the downhill since the decision to system the s400 missile from russia, and now turkey feels like it needs another missile defense system, this time from the u.s., to protect its troops from syrian

vonnie: stay with us.et's check where the markets sit right now. >> we are down and down hard when it comes to global equities . concerns about the spreading coronavirus and how it impacts growth is really weighing on risk assets right now. , it's worst day since august of 2019. the nasdaq especially a hard down, and europe not immune to thatain, the worst day for index since back in 2016. the superlatives go on and on. there is a lot of convection behind the selling volume right now, about 50% above the average, very broad based. we can see all 11 sectors are lower. the ones down the lease are the classic defenses. that really confirming the risk tone we are seeing. wti crawling back towards $50 of there'll amtech is underperforming, that goes for big tech and some conductors. the u.s. 10 year yield down about 10 basis points today, the lowest since back in june and about six basis points from the record low. that is putting a lot of pressure on that sector. vonnie: we have a lot more ahead here including

vonnie? vonnie: we are taking our cue from europe.he only place to look to see if risk is being a knowledge. gold futures at 1607. everywhere else, the stock market looks to be quite healthy. we are not seeing huge move in yield. crude oil up 2.3% onnews. let's dip into the s&p 500. it is interesting to see what companies are moving at higher. garmin is the best performer on earnings. the sox is up 2.4%. the nasdaq is up more than the s&p 500. the chip stops doing well, all higher in the sox index. resources in competition with other energy users to see who can up its dividend more and that is sending that stop a pirate -- that stock up higher. losses ine downside, the real estate sector, particularly in storage. experts say storage is the worst performer, but some of the other storage comforters -- companies lower by multiple percentage points. guy: let's turn to the tech sector and try to get detail on what is happening in brussels. the european commission unveiling its white paper on regulating big data and artificial intelligence.

vonnie: thank you. on that note, let's bring in cantor fitzgerald's peter cecchini. 13180 we past that 1. saw in 2016? >> i think we do. we were starting at lower levels than we did in 15, 16. in our outlook this year, we contemplated 1.25 on the 10-year even before the sinking we see from coronavirus. we thought that would be a second-half story based really on a roll over in fundamental economic data, which clearly has been pulled forward quite a bit by the coronavirus. 1.25 onnk we could see the 10-year. i think late in the year we could even see a bull steepener, if the fed is forced to cut more aggressively than people thought just weeks ago. vonnie: it is interesting what you said but i want to ask if this is an indication that there will already nerves among investors that this bull market was coming to a close, that it was more fragile than it seems on first glance. peter: i have been cautious for several months now. of the market rally has been one thing i've been stocksed about with four essen

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn.: from london, i'm guy johnson. this is "bloomberg markets." >> at trade deal with india could happen at the end of the year. president said the two leaders understand each other on these issues. michael bloomberg is hoping for a do over for the presidential the presidential debate tonight at his first debate last week, he was widely panned. bloomberg makes it clear he is turning his focus tonight to bernie sanders. bloomberg is the founder and majority owner of the parent company of a bloomberg news. harvey weinstein spent the night in custody here in new york. until he is sentenced next month we will be held for raping one woman and sexually assaulting another. his lawyers plan to appeal. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. what are the primary concerns of your clients beyond the coronavirus? >> we have started a few weeks ago valuations, and in particular the va

vonnie: i'm vonnie quinn in new york. climate change is the issue of our time.aunched bloomberg green on that note, using data and in-depth reporting to illustrate the scale of the challenge. focused on the issue of lithium-ion batteries used in electric vehicles. alix steel has details. the 20th century was the image of the internal combustion engine. the 21st century will belong to the battery. 2040, the majority of cars sold around the world balloon powered by batteries, they will make far more pollutants and gas guzzlers, but the elements used in batteries have their own challenges. lithium is a water guzzlers. if lithium prices stay low, it may not be worth the cost to mine. the industry would likely opt for the risk your method of pumping salt water underground to extract it a good nickel is used in lithium that are eyeing on cathodes, alarming electric vehicles travel faster and farther. but it is not clear whether minors in indonesia can keep a steady stream of nickel coming. and cobalt present in ethics problem. it helps keep the battery cool during cha

vonnie: indeed. i guess investors could see a move like that is a positive in the sense that the more mobilization there is, the more mike lee -- the more likely we are to put a stop to the spread of the coronavirus. let me get to the idea that china will start to honor its packed with the u.s. -- honor its pact with the u.s. on phase one. it is a positive sign, right, david? david: it is a positive sign that they will cut their tariffs in accordance with the agreement. there's a part of the agreement that allows them to open discussion if there is an extra ordinary event. there certainly is an extraordinary event. section seven of the trade agreement outlines the process. i do not know if there has been an official request made to the united states by china, but there's a lot of expectation it could be forthcoming. there was a bloomberg tech story on that very recently which described what may be coming. we think it will be coming closed if you have ports and no transportation, traffic congestion, f

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn.from london, i'm guy johnson. this is the european close on "bloomberg markets." let's check in on the bloomberg first word news. here with the details come according to the ho. courtney -- details, courtney donohoe. rose in: retail sales the fourth quarter. president trump maintains he has the legal right to intervene in criminal cases, but so far, he says he hasn't done so. that is a response to attorney general william barr's criticism. he said that the president's tweeting about justice department cases has made his job impossible. theie sanders' status as democratic residual front-runner has caused some jitters and congress. there are fears that it could turn off moderate voters that some democratic candidates need to be reelected. u.k. prime minister boris johnson has taken more control of the treasury, and that could lead to more generous, trump-style stimulus. chancellor quit as of the exchequer rather than give into johnson's demand that he fire his top advisers. global news 2

vonnie: from new york, i'm vonnie quinn.is the european close on "bloomberg markets." we are speaking with david page of axa. want to come back to the boeing news we had a few moments ago about a new software flaw being found. this coming out from the faa. but mainly, robert kaplan mentioned boeing, and said that economic growth might be 0.4% higher if it weren't for the boeing problem. we still don't know, and won't know for some time, what the impact of the coronavirus is. how concerned does that make you given that kaplan is a voting number this year? david: the boeing problem is something we have been aware of for some time. it is sort of encouraging to think that the fed is considering it along the same sort of magnitude. that is part of our forecast. we expect u.s. growth to slow this year to 1.6%, which is around trend. it is a little slower than the consensus. that story is pretty well digested and has given us a pretty clear theory of what it is going to do. as to where it goes, if we see it contained within china,

vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets."e with first word news is with a co-group that -- is ritika gupta. ritika: president trump poised for acquittal in the senate impeachment trial. it began when the house launched a formal inquiry into the president's dealing with ukraine. a big victory for pete buttigieg and a setback for joe biden. buttigieg maintained his lead in the iowa caucuses after a second batch of results were released. bernie sanders was a close second. biden finished force behind lisbeth warren -- finished fourth behind elizabeth warren. a huge surprise in the adp employment figures for january. the firm says u.s. companies january,,000 jobs in the most since 2015, and almost twice the average estimate. the government comes out with its january jobs report on friday. the u.s. trade deficit shrank in 2019 for the first time in six years. that reflects plunges in oil imports and shipment from china, and gives president trump some evidence he delivered on promises to reduce the gap. the annual deficit in goods a

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. london, i'm guy johnson. this is "bloomberg markets." let's check in on the bloomberg first word news. here with the details, ritika gupta. ritika: president trump has beat back a lawsuit that has to do with his washington hotel and other properties. the suit claimed the president violated the constitution emoluments clause by profiting from foreign government spending money at the hotel. at federal appeals court sent senatebers and the lacked the standing evidence to sue the president. more evidence of a durable labor market in the u.s. decembers's numbers were revised upward. unemployment rate rose. parts ofn drenching fire and drought stricken australia's east coast. it is causing some flooding in sydney and bringing relief to firefighters still dealing with dozens of blazes in new south wales. more than 40 fires are still burning in the state. 17 of them are not contained. the blazes have killed at least 33 people and destroyed more than 3000 homes. in germany, another sign that t

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn.ondon, i'm guy johnson. close" onhe european bloomberg markets. vonnie: time for the stock of the hour. here is viviana hurtado. viviana: our stock of the hour is legg mason. shares are surging. they are up almost 24% after they agreed to a buyout from rival franklin resources at a big premium. the deal valued at $4.5 billion. let's take a closer look at the stock price. $50 per share is the buyout price. that represents a 23% premium to friday share price. it also gets the stock back to 2008 levels. in 2008, the financial industry taking a hit, this included legg then which cratered after portfolio manager lost big on financial stocks. let's take a look at the industry contact of the merger. franklin and legg mason. it represents a move do combat trend toward indexing. b.i. writing that in the last decade passive style funds have taken in $1.6 trillion. $1.4have also lost trillion. if you were to look at the sp y, 300 $20 billion in assets under management. the combined firm will mana

this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn in new york.: i'm jon elrichman in toronto. fed officials expressing interest in digital currencies in recent days but some fear the volatility in bitcoin and other cryptocurrencies make them unpredictable forms of payment. a possible solution could be stable coin. a new class of crypto coin backed by reserve assets. -- welcome the man who introduced the first canadian dollar back stable coin. stable is the keyword here, to have the canadian dollar time to this asset. tell us more about how these stable coins work. we believe the capital markets are going to be significantly digitized in the future compared to today. the only way that can work is if we take all of the financial market instant -- infrastructures that exist in today's analog market and represent them in the digital market, but in a way that is well-regulated, reliable, adult. those mechanisms include exchanges, custodians, and include ways to exchange value. the canadian dollar stable coin we have launched is a mechanism to allow ca

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn.: from london, i am guy johnson. this is the european close on "bloomberg markets." let's check with first word news. viviana: the first major test for democratic president a whole full has turned into a technological disaster. the iowa democratic party will not release results from the caucuses until later today. in an attempt to modernize the system and make it more transparent, it melted down. only one mystery left and president trump's impeachment trial. whether any democrats will join senate republicans in a vote to clear him of the house's charges. that boat is set for tomorrow. one possible democratic goat is senator doug jones of alabama. he is running for reelection this year. the european union is rejecting president trump's proposal for securing peace in the middle east. israel'sexpressing concerns about annexing more palestinian land. the president's plan was welcomed by israeli prime minister benjamin netanyahu, but basestinian president aba dismissed it as nonsense. tesla

vonnie: thank you. comprehensive data check from kailey leinz. do remember the function gtv allows you to browse all of recent charts featured on bloomberg tv. you can catch up on key analysis and save your favorites for future reference. this is bloomberg. ♪ bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy, you have breaking news. guy: we are getting some decisions may be being made over at hsbc. now.is the reporting right mustier is inc talks about his future at unicredit. he could be potentially taken as early as today. just a little bit of background, took over at unicredit back in 2016, so he's been at the bank are quite some time, but a potentially big step up in terms of the challenge that hsbc would represent. we reported this yesterday, that this was a possibility. it now looks as if it is taking a further step forward in terms of the potential for this actually happening. mustier inat, jp talks over his future at unicredit. noel quinn is currently the interim ceo at hsbc,

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn.ondon, i'm guy johnson. this is "the european close" on bloomberg markets. vonnie: the italian opposition leader accusing the premier of underestimating the threat of the coronavirus outbreak. i is urging the government to earmark at least $11 billion in aid for those hit by the disease. maria tadeo is in rome. talk about this man of the north -- does he try to take advantage of this in some way? maria: that is the question. the reality is at this point italy is a focus of the coronavirus. more than 10 people dead. close to 400 cases that have been reported of the coronavirus. industrial powerhouse of the italian economy affected by the virus. , he can smellvini blood. he knows that from this could be political repercussions. he is saying it is clear the government has not managed this correctly. we went from having just a few cases a week ago to pushing almost 400 cases. to have the country become the focus point of the virus for europe. i spoke to him and asked him this and he said i

. ♪ vonnie: i am vonnie quinn. amanda: i am amanda lange. looking to "bloomberg markets."onnie: the roaring 2020's. a new decade starts on a higher note and wage gains are accelerating. equities hit the pause button. u.s. stocks fall after a four-day rally. the coronavirus presented new risk to the economic outlook. the cloud moment fresh fourth-quarter earnings. alphabet's ceo lays at her vision for the tech giant's future investments. our interview with her in the next half-hour. amanda: a quick check on the major averages. we are giving up some of the gains of recent sessions, snapping the winning streak here . likely to see the broad markets up on the week, and that includes the s&p 500. we do have the fed now factoring in coronavirus to global growth. the words new risk will get bandied about. we will talk about that coming up. you can see markets are weaker on the declining side. we are definitely seeing tech stocks showing leadership, but materials and energy are guiding lower. one reason is oil reaching $51 for wti. the 10-year, we are seeing that fall below 1.6%.

vonnie: from new york, i'm vonnie quinn. this is the european on bloomberg markets.- officially debuts after federated investors took a majority stake in a london-based fund manager and 2018. the new company now manages more than $550 billion in assets. joining us is jake christopher --ahue, the ceo congratulations to both of you gentlemen. this has been a long time in the works. chris, explain to us why this is a good deal for all. chris: thank you very much. it is a great deal for federated. we started talking in 2012. we had almost six years of cultural due diligence to find people who were consistent with our values, to find mandates and success in investment management, and international footprint, and a culture that would match up well. the esg and responsible investing was a critical ingredient as we saw that as the next step in investing in our future. vonnie: what is it like to see the melding happen? the deal is not fully done. there is a lot to do over the next couple of years, but essentially now you're on the new york stock exchange, therefore you exist.

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. london, i'm guy johnson. this is "bloomberg markets." let's check in with the bloomberg first word. here is viviana hurtado. viviana: the number of cases in by hubei province has soared 45% to almost 50,000. spikebrupt reversing the trend on the the coronavirus may be under control. the coronavirus is blamed for what is excited to be the first drop in oil demand in more than a decade. that is coming from the international energy agency. the iea says the virus is battering china's economy. it says at this stage, it is hard to be quiet about the impact. southwest airlines extending the absence of the 737 max from its schedule until after august 10. the airline says not having the max cost it millions in operating income last year. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. vonnie: thank you. bob faith is the ceo and founder of greystar. all told,

vonnie: we begin with fresh economic data. let's see where university of michigan sentiment is coming in. they came in at 101. the market is looking for 100.7. it is higher than last month. 114.8. conditions up to , 2.4%.s of inflation let's get to the markets because it is the seventh down day for global equities and the s&p 500 down 3.5%. a few stocks are higher including 3m which is the only down component which is higher right now. it fell off everywhere. speaking of the dow, it has been the worst selloff week for the dow than in any year since 2008. that is not just a week, that is in a whole year. any year since 2008. that will give you some idea. the tenure yield dropped down. at 117ff of its low waiting for the fed to speak. the vix up to 45. we thought we were high yesterday at 33, we are much higher than that now. crude oil continues to settle. we are just about $45 per barrel. gold is also selling off today. down 1.3%. the stoxx 600, 372 which is down by 4.5%. continuing in the german ten-year. i want to show you wh

vonnie: thank you.p next, we will be speaking with the executive vice president of the european commission, valdis dombrovskis. wendy of questions for the commissioner, including the impact of the coronavirus as well as the outlook for financial services across britain and the european union. this is bloomberg. ♪ ♪ live from new york, i am vonnie quinn. guy: from london i am guy johnson. this is the european close on "bloomberg markets." how hard with the eu economy hit by the coronavirus? markets are suggesting the impact could be substantial. european commission published its latest economic forecast, saying the outbreak is a key downside risk. joining us now, valdis dombrovskis. thank you very much for joining us. can you give us any idea at this point has to the risk of the coronavirus does pose to the european economy? as regards the outlook for european economy, european economy continues to gross our forecast for this year and next. expect up the number growth of -- expect economic growth of arou

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn.ondon, i'm guy johnson. this is european close on bloomberg markets. time for our stock of the hour. for a yacht hurtado is here with details. is here withrtado the details. viviana: our stock is canada goose. saying coronavirus is having a material impact. it is the latest retailer to cite loss china sales as a reason to/-- as a reason to slahs its 2020 outlook. chinese consumers are staying away from stores because of the coronavirus. look at the slash to guidance. previous fiscal year guidance was 20%. now it has been cut to 15%. is growth you can also see slashed. 58% of revenue is coming from non-canadian currencies. if we were to break out revenue by region, asia makes up 20% of the revenue. it is important to further drill down because the last quarter, revenue and asia double before the outbreak and that shows the region is a strong growth driver for the future. canada goose is just one of the stops taking a hit. if you were to look at other luxury brands, we have been reportin

vonnie: i'm vonnie quinn in new york.s week, we been focusing on the credit side of the global selloff. could a leveraged loans be the next part of the market to take a dip? joining us now is clear boston. how have they remained immune so far? that part of the market seems to be pretty immune. >> i think we are starting to see those cracks. we saw a leveraged loans take a bit of a tumble. a lot of the seller today is also concentrated in leveraged loan and high-yield credit. a lot of investor nervousness right now. when theycredits that stumble, they have more trouble making those interest payments. amanda: even before we had this threat of a pandemic, something that could really shut in the u.s. economy, we have people talking about these huge tranches of high-yield debt that could be downgraded. on the leverage side, we were talking about worries with covenants. the fear is an inability to repay. of the pile.e top so what is the actual fear level here, on worst-case in areas for economic downturn? we are seeingnow a lot

i'm vonnie quinn. guy: what a trading day it's turning out to be, i'm guy johnson, welcome to bloomberg markets. vonnie: we begin with fresh u.s. housing data, with home sales from january up by .2%, better than the estimated 3%. the previous month revised better, there was a slow down, these are context signs, but not closed upon. -- these are contracts signed but not closed upon. these are not taking away from today's market the s&p 500 is down 2%, about 40 stocks are high, and those have very fractional gains. if video -- a few idiosyncratic stories. there.st a bloodbath out the 10 year yield at 127. -- at 1.27. we hit the record low and we are sinking. aboutl speak to kumar where he thinks this could be. and to be vicks future curve is in backwardation. it's elevated right now at 32, getting into the danger zone. $46.40.e oil at the 10 year yield is actually off the chart. guy: off the chart is how these markets feel right now. i think the action is shifting, what we are seeing in germany is -75 fo

vonnie: from new york, i am vonnie quinn.n the heels of jay powell's testimony at the new hampshire primary, i sat down with harrison street co-founder christopher merrill. harrison street is an alternative real estate asset investment firm with $25 billion under management globally. christopher: for us regardless of the political environment, it is good long-term investment. vonnie: you raised another $1.6 billion last year -- more opportunities in the area. it feels like lps cannot give away enough capital. alternative real estate is one area where there are picking up yields. oriented?he value the u.s. or outside the u.s.? christopher: investors are concerned about the cycle. increases in allocations of real estate. investors are concerned about where we are the cycle. we are seeing an alternative segment, a lot of opportunities in the infrastructure space. we are investing more about what we're doing in public to private partnerships. we are seeing an increase in value from that standpoint. the nice thing is the value and

vonnie: he does have -- brought in this guy. vonnie: he does have a reputation for that.here's also scandal. is the lesson here that it is very hard to find a ceo of a bank contender that doesn't have a with of scandal -- have a whiff of scandal attached? litigationeems that is core to the business these days. mers was never implicated by the dutch regulators in this it islaundering thing, so probably something that seems to be happening in banking. i don't think this will be an issue for him running ubs going forward. guy: unicredit share price is down 2.5% right now on the news 's potential her in contention to take over at hsbc. is it a surprise that noel quinn is not a shoo-in for this job? why is his interim status still interim? jan-henrik: i would be interested in what hsbc share price is doing. e.a. -- imp your most hask john pierre mustier experience bringing a turbulent bank through change. it will be a massive overhaul, and mustier has a good track record at that. i think it would be bad news for unicredit, and i think it is definitely a surprise. i think the m

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn.from london, i'm guy johnson and this is the european close on bloomberg markets. oil stocks hammer this week. is trading at a dividend yield of -- percent. all of them are losing close to 20% of the value. is it too early to buy some of the most beaten up stocks in the market? guests, and steven, you have shell trading at 9%, that has to be incredibly attractive area downside looks enormous. buy at point does the reasonably rice as i'd kick in? bilal: we have been talking about the software. meaning and valuation of stock market -- probably not. didn'te some and they have the same impact. it's the number of cases that much lower. what you do know is that with bond yields, equity risk has risen relatively substantially. produce our capital market assumptions in december. when we did, u.s. 10% was 1.7 and now it is 1.2%. medium-term expectations will be 5% and 5.5%. that has not changed. we have an equity risk at 320% and that is about 4%. -- 3.8%, and that is about 4%. as an will view

vonnie: that's for sure. the bloomberg economic pub ability model for a recession has risen slightly for this year -- economic probability model for a recession has risen slightly for this year. we had an inversion of the three month-tenure yesterday -- three-month-10 year yesterday. would this be enough to make an adjustment to their interest-rate forecast? michael: he's going to go out of his way to not talk about interest rates and what the fed might do. he doesn't want to shake market perception because he doesn't know what might happen. it does look like we will have a quarter, butst most people anticipated that. unless there is some data to say that we need to react, he's going to avoid that and say we are keeping our options open. guy: anything on the repo? michael: there was a little bit in the testimony that was released this morning, but basically just a repeat of what they already said. this is not qe. we are just trying to build up a balance sheet to make the monetary policy operations more smooth

vonnie: deere surprising the streets, sales of 4% above estimates. essentially the u.s.mer in a better position than the street anticipated. how is the farmer stabilizing and why didn't the street see it? >> i think what deere is seeing is that there is optimism on the u.s.-china trade deal in these agricultural purchases will bring more farmers to the market. they have been on the sidelines because there was so much uncertainty, so how do you justify buying this expensive piece of equipment? the one caveat i will put in that is that deere in its statement did not mention the coronavirus, and it is still calling for flat equipment sales in china. the degree to which that shifts because of the coronavirus will be very interesting to watch. on the call they talked about how they are concerned about their supply chain and will spend $40 million to expedite so that they have the parts the need for international operations. ♪ abigail: you are watching "bloomberg best." i am abigail doolittle. this week, the imf called for a global rebound despite risks from the coronavirus ou

vonnie: beijing says u.s. health workers are welcome to come. the world health organization says nothing has actually been decided. rishaad: 63,000 cases now, the death toll up by 121. these inconsistencies in the numbers has led to a lot of questions being asked. we had some optimism a couple of days ago but that has receded somewhat. again, it is the economy suffering, people's bank of china, again saying they are going to underpin loan growth. also on a microeconomic level, companies such as fiat chrysler halting production in one of its plant in serbia, because they cannot get enough parts out of china. loretta: we now have new risk including the coronavirus. you have to take that into account when you are thinking about growth. right now i'm thinking of that is a risk. i expect that certainly in china, and perhaps in asia, the first quarter numbers are going to be weaker. there could be spill over to the u.s. economy as well in the first quarter. it remains to be seen by how much and for how long that will persist. in general, i am seeing t

vonnie dakotas and all without any driver intervention at them breaks the trailer to stable. as the vehicle combination. the staff the vehicle starts to swerve due to invasive action or some other maneuver so you need to hit the brakes immediately. the trailer braking gauges and celebrates the car and trailer. this reestablishes stability in a speed range that also guarantee is a sound level of safety. there is quite a range of modern day traction engines in the s.u.v. segment 1st up is a high riding wagon 90 cross country. i need optional extra here is a backup camera that helps to hitch a trailer. maximum topass 2.4 tons. the volvo doesn't come cheap however with prices in germany starting at $62000.00 euros. representing classic s.u.v.s is the same. ideal for family caravan trips. coupled with a very decent 2.4 tonne towing trailer capacity. also decent is the price $44000.00 euros so you can splash out on the caravan. if you want to launch your classic grievous boating style look no further than the maharani live on today with a 275 horsepower diesel this is our most powe

secretary says he is in south africa attending a doctor's appointment as a strange wife to follow its vonnie was shot dead near her home in 2017 the prime minister's 3rd wife messiah to bonnie has been charged with ordering to pillows murder she has denied any involvement the parliament had given prime minister to body until thursday to step down voting is under way in iran's parliamentary elections thousands of candidates mostly reformists and moderates have been barred from running around leaders who are calling for a high turnout. south korea has announced another spike in front of virus infections bringing the national total now to $204.00 so it's now the worst affected country outside china the government is imposing a merchant sea measures the u.n. is again calling for a halt and the violence in northern syria saying it could degenerate into a bloodbath there is spent and tense shelling between opposition and syrian government forces who are making their push for the last rebel held area to turkish troops were killed in a nurse strike on thursday turkey's president says he will not wit

he spoke with bloomberg vonnie quinn and guy johnson. >> you can't be a bank analyst without being aart-time tech analyst and this acquisition of morgan stanley buying e*trade is about digital brokerage and digital banking. i think it is a fair question, companybillion for a that is the stock market sensitive? this interest-rate sensitive at a time when you have peak retail investor engagement and high stock prices? we are not saying this is the bottom. acquisition, this a 10 pe company paying 15 times earnings for another company just for starters is not ideal. guy: i've heard a lot about the corporate stock prime business and the fact this is a fantastic business and undervalued at e*trade. does that argument not stack up? in the whole idea of revenue synergies. if a brokerage firm can get customers through a variety of ways, digital delivery, or through the workplace and to the extent morgan stanley has a broader suite of products, if you are an e*trade customer, you should say this is fantastic. i would love to be in e*trade customers even more right now ofause you have so much m

vonnie: u.k. and russia confirming their first cases of the coronavirus earlier today. the u.s. and japan advised citizens to avoid traveling to china. >> where counting -- we are counting nearly 10,000 people have been affected by this pathogen. over 200 people now have died. some say out of those 10,000, something like 1500 are severe cases. >> 14 provinces in china have extended that lunar new year holiday until the second week of february. that will be quite big. economists are saying this coronavirus could have a bigger dent to the economy than during the 2003 sars epidemic. scarlet: we clearly did not see anyone stepping in. even if you look at volumes, today across u.s. exchanges, more than 9 billion shares traded hands, the most of any date this year since august by far. this is putting us back in the days when we saw a pullback with more tariffs and trade being a real issue. kailey: still ahead on "bloomberg best," more on the fed's path forward. a conversation with vice chairman richard cleared up. plus, goldman sachs hosts its first investor day. its ceo says efficien

vonnie: that is gina martin adams in new york. now let's go to washington and wendy benjamin son. the spotlight last night was on michael bloomberg, the founder and majority owner of our parent company. where will it be tonight? wendy: the focus might continue to be a little bit on michael bloomberg. i do not think elizabeth warren will let up for a moment. she raised $7 million after the debate last week. i do think the field will turn to bernie sanders. he has now won the popular vote in iowa, he won new hampshire, he won in nevada. he is favored to win in california on super tuesday. he is doing well in south carolina, which has its primary on saturday. if there is a stop bernie movement, it will be on the stage tonight. david: it is something we have not seen yet. even though he was the front runner before, we have not seen them go after bernie sanders. do you think others will do what we have heard they want to do, which is turn the spotlight on bernie sanders. is it possible to get behind the movement? wendy: they may. i do not think they would consider it getting behind tha