Concern spreads from italy to iran, but the World Health Organization says the outbreak is not yet considered a pandemic. The business case. Mastercard and United Airlines, the latest companies to issue profit warnings amid the operate. And, sticking to the script. Cleveland fed president Loretta Mester says the virus is a threat to the u. S. Economy, but does not justify a change in rates. Just under one hour away from the start of cash equity trading across europe and in the u. K. Lets take a look at futures after the big drop yesterday. We saw in some cases the biggest slide in european stocks since the brexit vote. As a result, we see a bounce in futures today. Maybe investors saying it is time to buy in the dip. You can see that dax futures are up 8 10 of 1 . U. S. Futures are also showing gains today after the biggest drop in two years on the s p and dow. You can see we swap over to u. S. Futures, they will be showing green arrows as well. Lets take a look at whats going on in terms of the economy here in germany. Eco go on your terminal. You will see the latest gdp stats for the largest economy in europe. Right now, we are looking at an notal gdp yearoveryear, seasonally adjusted growth of 0. 3 . The survey had penciled that in. In line with expectations. The same is true across the gdp data quarter over quarter. 0. 0 . Depending on how you look at it, at least it was not a decline but it did not line up with estimates. Anna absolutely. Very much as you are for the Fourth Quarter. As we talked about many times before, pretty backwards looking to see what is going on in the Fourth Quarter when you consider how far we have come with the coronavirus, impacts on china and now italy. Much to talk about when it comes to that German Growth story and we will do that. Lets have a look at where we are looking at. Matt, you have where the futures have us placed and they see some kind of rebound freak european equities and u. S. Equities. Some sort of bounce back. We did see losses in europe of around 4 yesterday. These were extensive losses and certainly were not expecting to see those losses recouped but there is some upside for european equities. Some of that coming through from the asian session. Japan playing catchup. That market was closed yesterday. Elsewhere in the asian equity session, down 1 but it excludes japan and things not looking quite as bad. That is part of the story when it comes to what is going on in equity markets. The World Health Organization saying this is not get a pandemic. More positive things being said about gilead and the vaccine they have. Also something coming out of japan as well. Coronavirus, for but attempts towards a vaccine. That is giving markets a reason to buy this dip. Do you have the stomach to buy this dip is the question will be asking. Movement in japanese fixed income as a result of the catchup being played because markets were closed yesterday. Brent price is up by over 1 . We do in conjunction with the bounce back we are seeing global equities, we see a little bit of a bounce back Energy Prices as well. Brent at 56. 89, 1 . Lets get to the market conversation right now. From bloomberg emerging markets team on the markets in singapore joins us now. If you with us. Do you think emergingmarket investors have the appetite to buy this dip of yesterday . Simon probably. What we generally find with these sorts of one off events, if you like, even if it is a largescale and kind of terrifying event, as long as policymakers act decisively and aggressively, stockmarkets can rebound. Even terrible events like after september 11, you saw equity markets restored to their previous levels within a few weeks. Thats likely to happen on this occasion. There are some very significant caveats, but that would be the base case. Matt where are the points . The question of the day is where are the value points for dip buyers . What are you hearing from clients . All right, simon, maybe cannot hear me. Maybe simon has lost his audio there for a moment, but we are going to get back with him from our mlive team. We are seeing headlines across, selling at 29. 5 stake. Just to bring our viewers this news. Arch capital, 10 euros . 70 a share. A little bit of m a this morning after it let its Global Markets chief go. So, we see them getting rid of a stake in holding 12. 2 as a financial participation. I want to bring you that as we try to get simon back. Right now, yeah . Out, i was going to point the insurance sector that you brought us. We have these out of london with prudential in the insurance space. We will talk a lot about Insurance Companies haps today. See if they can cut through the noise and overall market move surrounding coronavirus. Lets get the first word news with laura wright. Laura Harvey Weinstein has been convicted of rape and a criminal sexual act. Coming more than two years after allegations against the former hollywood titan sparked the metoo movement. He was acquitted of the most serious charges, including predatory sexual assault. He is due to be sentenced on march 11 and plans to appeal. U. K. Prime minister Boris Johnson is facing complaints of bad faith ahead of trade talks with the eu. The two sides are increasingly at odds, both accusing the other of backing away from past promises. Johnsons Spokesman Says regaining political independence from the eu will take priority, both in security and trade deals. Rhetoric between democratic candidate Bernie Sanders and Michael Bloomberg has escalated. Bloomberg criticize her sander gun control record and sanders suggesting bloomberg could not win a debate against President Trump. Sanderss favored in several super tuesday states where bloomberg will appear on the ballot for the first time. Michael bloomberg is the founder and majority owner of bloomberg lp, the Parent Company of bloomberg news. The coronavirus is a threat to the Economic Outlook with u. S. Fundamentals remaining strong, according to cleveland fed president Loretta Mester who spoke at the National Association for business economics in washington. Assess difficult to economic effects but this new source of uncertainty is something i will be carefully monitoring. Laura global news 24 hours a day on air and on quick take by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna, matt. Anna thanks very much, laura wright in london. Next, we will bring you the stocks we are watching at the start of trade. The big focus is going to be on the rebound in stockmarkets after yesterdays selloff. Exchange index dropped on monday amid a mounting coronavirus fears. A lot of that centered on whats going on in italy. Before the italian market dropped precipitously at the start of the trading day, down by 5. 4 at the end, the Greek Stock Market lost more than that. We will come back with that story. Bloomberg radio is live on your mobile device. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open. There 50 minutes away from start of cash Equities Trading across europe and the u. K. The stocks to watch from around the newsroom. We go to Annmarie Hordern looking at prudential. We are also covering greek stocks which had a pretty big drop. Lets kick it off with you. What is the story . Annmarie prudential has a new investor. Taking just under a 5 stake in prudential and they are pushing for changes. They think they should separate the u. S. And asian business. They say does not make sense. On top of that, they also want a pivot away from a strategy towards longterm value creation. We will keep an eye on that in london. Anna thanks. Can hear us. Filipe can you hear us . Give us the latest on the greek stock expectations. Well, i would like to point the recovery within greek shares. Yesterday, we saw a very strong pressure on the index. 2016 whene most since we had the brexit referendum happening. Close to 8. 5 . But then as we see the recovery in several markets today with many future contracts pointing to a green start. Today, i would like to highlight some of the banks that could be leaving their recovery. Nationallking about banks that fell between 10 and 15 percent. They could be those taking the leap for potential recovery within the greek market. This was the bestperforming market within major gauges tracked by bloomberg in 2019. It was trading as high as the peak levels in 2014 at the end of january this year. Anna thanks very much. Lots to think about as we approach the start of the trading day. Still 45 minutes to go. You can use the Bloomberg App if you want to get uptodate with the individual stocks and stories we have plenty more to talk about when it comes to coronavirus. We could see some interesting Corporate News into the european session so lets get to that now. The impact of the coronavirus is being felt worldwide by big business. Manus cranny joins us now. I saw a comment coming through from phillips moments ago suggesting it is too early for them. Negative impacts from the coronavirus in the First Quarter. Cannot quantify the magnitude and duration of that. All of these big Global Businesses are dealing with than you have been tracking a few of them. Manus that is a very pragmatic response. Even the red a mess there says says t Loretta Mester it is too early. If you think procter gamble, adidas, we are talking about the logistics in china. We are seeing a manifestation in the risks to cash flow. Mastercard have cut the revenue targets. Ted airlines has scrapped United Airlines has scrapped the 2020 profit target. Consumer confidence is decimated inside korea. The risk is that traveling of anxiety and logistics profitability in china has now entered europe, manifested itself in terms of the American Perspective on profitability and cash flow. Therein lies the point, cash flow. That decimate your profitability. I want to show you a piece of work which is what is the backstop to all of this . It is about policy reaction function from Central Banks. Martin malone sent this through. Here you go. 65 of the e. M. Has now had rate cuts. Seven more Central Banks are coming up and develop markets. You are looking at 80 of global gdp being backstopped by rate cuts at 50 basis points of fiscal easing. Doesuestion for markets is a 25 basis point cut have the same veracity, bang for your buck impact . Choose your word. As 2019. The conclusion from programming this morning is probably not. Matt all right, fantastic chart. Thank you for joining us. Manus cranny in dubai. Coming up, safety failures and bad luck fuel italys coronavirus upsurge. We will get all the latest from europes worsted nation, next. Remember, when you are traveling to work you can tune in on bloomberg radio. It is live on your mobile device anywhere in the world or on dab digital in the london area. This is bloomberg. Anna welcome back to the european open. 40 minutes to go into the start of the cash Equities Trading day. It could be a little bit of a bounce. A long will it last . Heres laura wright in london. Laura activist Investor Third Point has built a position in prudential. It will push for changes in the Company Including separating the u. S. And asian businesses. It also wants to pivot a tragedy from Dividend Growth to longterm value creation. Prudential says it looks forward to starting a dialogue. Hp will return 16 billion to shareholders by merrily through buybacks. It also plans to cut costs as it tries to rally investors against an unsolicited takeover bid. The hardware giant has raised its profit forecast first for fiscal 2020 but it will cost the company in adjusted profit for the current quarter. 500 million raised as part of a funding round. Valuing the london financial itm at 5. 5 billion, making one of europes most valuable fintech startups. The Company Plans to use it for product development. Apples china iphone sales drop in january according to ubs research. Demand for the product fell 28 compared to the previous month. And, februarys numbers are likely to be far worse. A figure declined than usual and came as the coronavirus began to spread. That is your Bloomberg Business flash. Matt, anna. Matt thanks very much for that, laura wright with your business flash. Joining us now is a european economist at ubs. Anna, clearly, the coronavirus clears have worsened in the past 24 hours. How do you see this playing out in terms of the Economic Impact . Yes, so we already saw first evidence of that supply Chain Disruption from the coronavirus n eurozone pmis. The outbreak in italy implies some risk with what has and so far an external supply shelf. It can be potentially more damaging in terms of the Economic Impacts. When it comes to quantifying the impacts, this remains quite tricky and we need to see how quickly the virus could be contained. What is clear by now already is in italy, the Services Sector and more specifically, the Tourism Industry are going to be affected quite a lot. The fact that the outbreak took place in the northern exposedf italy which is to suggest the impact is likely to spread into the Manufacturing Sector as well. Anna just a couple of bits of breaking news and we will get back to our conversation. That 171at net income million euros. More relevant to our conversation, a report and Italian Press talking about how italy may seek 2 billion euros to 4 billion euros on eu budget flex ability on the virus. Lets take a look at where we got to on european stock markets in terms of the selloff and put it into context, recent context. In this chart, you can see it up against the euro zone debt crisis, up against the brexit vote. Thisan see it does feature skill of the mood we saw. Do you think the italians are going to be successful in getting budget flexibility . Is that a path they should be pursuing . Anna t. i think thats where we are heading. I would expect quite a bit of support in terms of granting this flex ability for italy. We already saw some plans from reducelian government to delays in terms of consumer mortgages payments and payments for the companies. I think theres a comment understanding that some flex ability needs to be granted. Matt on the other hand, theyve had a problem with brussels on this issue in the past. Do you think the eu is willing general, especially to the peripheral nations that are affected, are they willing to give in more general more flex ability . How will they signal that . Anna t. the nature of this shock is different from any between italy and the eu. Given this time around, it is the domestic policy, there will be more flexibility from the eu side. In terms of the shape of how it will take form, it is tricky to say at this point but i think it will be in the form that eu is essentially going to look to some of the fiscal targets or fiscal numbers that italy planned. Anna lets be helpful. Spreadope it does not further, globally. It does not become the pandemic the who has said it is not yet. Lets be helpful for that but also think about what could happen. Do you see what kind of downside do you see for the eurozone economy if we see rights to travel between countries suspended and all of that kind of clampdown on human Economic Activity . Anna t. clearly, the eurozone economy is very interlinked in terms of its intro eurozone trade. We also see that when we look at the, for example, eurozone numbers from china. A lot of goods actually get imported in specific trade hubs and then they get redelivered or reexported within the euro zone. It is going to be quite painful in terms of potential economic damage. Matt you are going to stay with us. Our guest cohost for the hour. I want to go live to italy. The countrys government battling to cope as the caseload next collates to more than 200 escalates to more than 200. Large part of the economic engine in the north not stranded in a virtual lockdown. Joining us is our Senior Editor in italy from milan, jared. Tell us about the effects of this on the ground. Where do you see this . Is there a shutdown in chinatown . Quarantines of large swaths of land . What are the effects . Right, anna, why dont you try . Does not sound like you can hear me. Anna maybe we will give our colleagues in audio a little time to reestablish that connection. Thank you for joining us if you can hear us. Lets go back to you, anna. We talked a little bit about the impact we might see on the eurozone economy. What specific measures the you think italy should be considering . We heard a little bit about giving relief to mortgages and that kind of thing. What kind of specifics to we want to see quickly in terms of policy response . Anna t. the first policy response will clearly come from the government, the Monetary Policy. In that sense, i think the most important for the government is to sort of shield domestic consumption. Its going to be very tricky for travel do given the restrictions being introduced. I think some relief in terms of potential repayments in terms of loans, that seems to be more effective. That is something that china has already done as well. Anna we heard that from china. Anna, thank you very much. She stays with us. Next, German Companies cut spending in the Fourth Quarter as gdp stagnates even before the coronavirus outbreak. We will get more on the German Growth engine, next. This is bloomberg. Welcome back to bloomberg markets, this is the european open. We are 30 minutes away from the start of cash equity trading. Looking at futures gaining in europe, gaining in the u. S. , as well, but after big multiyear drops. We saw 3 and change drops. Berlin alongside anna edwards at our European Headquarters in london. German Companies Cut spending in the fourthquarter, leaving the euro zones largest economy struggling even before the coronavirus outbreak created a fresh threat to global growth. Business investment fell 0. 2 thisdp stagnated from quarter over the last. A weak end to the worst fullyear performance since 2013. Our guest is still with us. We did not see a contraction in the Fourth Quarter, but darn close. What do you think it is going to take to start up the German Economy in terms of growth again . Looking at the Fourth Quarter numbers, the 0 quarter on quarter growth for us was quite a disappointment. The date was tracking stronger growth. In december, we got a very weak set of data, including a significant drop in industrial production. Then when we looked at the details, we identified two factors that played a role. First is a very temporary nature, an unusually high number of bridge days in december, which essentially reduced to the number of working days in the month. Secondly, and this is what is going to matter for the outlook, weakness in terms of manufacturing production and also specifically in the car sector. There we think there was some frontloading in terms of car production ahead of the new much stricter co2 emissions of januaryn on 1st 2020. When we think about what is ahead for the German Economy, we think that sort of a combination of potential disruptions from the coronavirus and also structural headwinds for the car sector in general are going to be quite significant downside risk. Anna e. i have a chart that expectations. What is interesting here is this in conjunction with the q4 data. Showed some kind of uptick at the end of 2019. 2019ptick at the end of and we were trying to draw a line in the sand with the weakness of manufacturing. This predates a little bit the coronavirus impact. How exposed is germany . Data on semi finished products imported. Europe may not be as reliant as some other parts of the Global Economy in things from out of china, but what is your assessment of germany and the coronavirus . Anna t. we have already seen clear evidence of supply Chain Disruptions taking place. Even though both manufacturing and services headlining improved, when we dig deeper into the details, we see that almost half of increasing the manufacturing pmi was driven by delivery times. In normal times, that is a sign of strong demand, strong Economic Activity. Now, we see 90 of supply Chain Disruptions. Because of the way pmi is calculated, it was still a disappointing factor. In those terms, we already see clear evidence it is playing a role. Once again, in terms of of any facthow much it is going to have on growth, it way remains quite sticky it remains quite sticky. Matt germany has more financial firepower than other eu governments, more of a fiscal surplus, and more absolute cash to spend. Do you expect to berlin to come out with it . Generally, when we talk about fiscal stimulus in germany , we sort of distinguish between shortterm cyclical spending and longterm structural spending. The latter is something the German Government is already doing. Take for example the recent climate spending package or the announcement on more spending in terms of infrastructure projects. But this is not something that is going to significantly boost growth in the short term. Now, when we think about what is the trigger for the German Government to start spending more in terms of shortterm spending, we think that the labor market strength is going to be the key. Now, at this point, we already see some weakness at the regional level in terms of regional Unemployment Rate. The aggregate german Unemployment Rate still remains at alltime lows, we think the pressure for the government still remains quite low at this point. Anna e. and what changes that . Unemployment, i suppose. And then we come back to talk about the car sector, perhaps . Anna t. yes, we think this is all very interlinked. For us, the trigger for shortterm fiscal spending would be an increase in unemployment moreand we need to do detailed work in terms of regional unemployment. We already see some to caps and unemployment tick ups in unemployment in southern regions of germany, which are more manufacturing geared. We are also seeing it in northern regions of germany, which are less affected by the Manufacturing Sector. Matt all right, we are going to keep you with us for a little a europeanr, anna is economist at ubs. Talking us through what has caused incredible market turmoil over the last one he four hours. Coming up, paris over the last 24 hours. Coming up, paris forges ahead with fashion week despite concerns about the coronavirus. This is bloomberg. The e. welcome back to european open, 22 minutes to go to the start of the cash equity trading day. Tuesday is a little bit different than monday. We are expected to see a little bit of a bounce back, but we lost 4 in yesterdays session in europe. Lets get a first word news update. Thanks. Harvey weinstein has been convicted of rape and criminal sexual assault. The verdict coming more than two years after allegations against the hollywood titan sparked the metoo movement. He was acquitted of the most serious charges, including predatory sexual assault. He will be sentenced on march 11. Boris johnson is claiming facing complaints of bad faith in trade talks with the eu. The two sides are both at increasing odds. Regainingoke about political independence from the eu will take priority over a trade deal. Rhetoric between Bernie Sanders and Michael Bloomberg has escalated. Bloomberg criticizings sanders gun control record and sanders saying that bloomberg could not win a debate against President Trump. A reminder, Michael Bloomberg is the founder and majority owner of bloomberg lp, the Parent Company of bloomberg news. And the coronavirus is a threat to the Economic Outlook, but u. S. Fundamentals remain strong. That is according to the cleveland fed president. She spoke at the National Association for business economics in washington. At this point, it is difficult to assess the magnitude of the economic effects, but this new source of uncertainty is something i will be carefully monitoring. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Anna, matt. Anna e. thank you. The coronavirus has been the spotlight in the fashion industrys biggest month. Here is Annmarie Hordern. Annmarie some brands are even catwalkpause on the due to quarantine measures at the milan fashion week. Those that chose to forge ahead had to do so without the usual number of chinese models, buyers, and celebrities. Orders are key to promoting the trends in china, which is one of the industrys most important markets. Saw postsashion week by asian influencers fall 75 from 2019. China accounts for more than one third of luxury purchases. Due to the virus, the spending has ground to a halt. The next point is paris, where lvmh says the show must go on for now. We will have more updates throughout the week on fashion week. Matt thanks very much. Annmarie hordern there on fashion week. Joining us to discuss is Bloomberg Opinion columnist, andrea, let me ask you what you think about the effects of the coronavirus . Obviously, it has been tremendous on the luxury companies. Thats right. A note this morning. Sales andurt luxury sales will be down this year for thatirst time since 2016 global luxury sales have fallen. Anna e. and of course we are now focused on italy and the impact this is having on the ground. It is hard to overstate the relevance of italy still in the fashion industry and i suppose for luxury, this hurts two regions that matter so much. It hurts china and it hurts europe in terms of supply. Exactly. But the other thing to remember the travelingl on luxury chinese consumers agenda. You have spending at home, but you also have these high spenders that come from china to europe. It is going to be a double whammy. Produce hey cant they are having trouble producing this stuff, i imagine, as well, or is that not the case with luxury as they tend to try to make things in developed nations . That is not the case with luxury. Most luxury goods are made in europe. Not all, but most are made in europe. So that will be less of a worry. It is midmarket retailers that will make the bulk of their garments and accessories in china. Anna e. it remains something of a real supply chain story for others in the region. Thank you very much. Lets get back to the European Growth story or lack of it. Anna from ubs is still with us. Lets talk about what the ecb can do, should be doing here. You said that the first line of response and we are all looking to medical professionals to guide us on the medical line of response, but then there is the fiscal actors, the governments and what they choose to do, the relief they choose to give out or grant. But then there are monetary actors. To what extent can the ecb make a difference . Always the ecb has exercised the data for the euro zone as a whole, rather than favoring a specific state. It seems likely that the ecb will work under the assumption that it still remains an external supply shock, which is something that Monetary Policy cannot do much about. They are also likely to assume a vshaped impact on the economy. Under this scenario, it seems the threshold to provide Monetary Policy recommendations anna e. define a v from a government perspective . How quickly do things tick up . Until you start seeing infection numbers coming down, it seems difficult to work out how wide the base of the dip will be . So far, all the International Organizations theme that the peak of outbreak is going to be in q1. Now, clearly, there are some risks to this scenario. The baseline was that we are going to see a big dip in terms of Growth Numbers in q1 and then a very rapid recovery in the second quarter. The sidelines on of the g20 conference that there has to be fiscal spending, if there is not a vshaped recovery. But he says there still is monetary space. He probably has to say that, but how true is it . Anna t. you know, we think that the ecb is not fully maxed out, but it is getting close to it. There is still space for the ecb to cut policy rates further. That wes view is still are not close to the reversal rate. Then there is another option to ramp up asset purchases. In terms of how much of an impact it is going to have on the economy, that is the biggest question for us. Said howheard it bad do you think things have to likeefore we see something a geneva accord . Concertedlike true, monetary and fiscal policy . Anna t. well, the last time we saw coordination on the physical front from the European Countries was during the financial crisis. That is the indication that the threshold remains quite high. But again now the nature of the shock is quite different. At this point, it seems to be sort of concentrated specifically in italy, where the situation is getting much worse, but we cannot exclude if the outbreak spreads further into other euro zone countries that we might end up seeing coordinated action from the European Countries. Anna e. ok, thanks very much for joining us, anna. Talking about a range of subjects due to the European Growth story. Ubs says it prefers emerging markets. Find out the reason why. This is bloomberg. We are tracking it very carefully. We definitely see the effect. Our planes are not as full as what they would have been coming out of china. We know the economic steps are coming down the road. Still quite early to see the Economic Impact. Andverybody is on edge taking this seriously and the uncertainty around it. It does have an effect on our customers, which has an effect on our results. It is a problem for the entire world, not just a problem for china. Reflect about how we manage supply chains, so we can be more resilient in crisis. Matt those were some Global Business leaders speaking to bloomberg about the impact of the coronavirus outbreak so far, which has driven equity indexes globallynd change overnight and yesterday here in europe. Time for your morning call. Chinas relative success in kerman and in in containing the coronavirus outbreak has made ubs prefer emergingmarket stocks. Annmarie another note from the street on coronavirus. Ubs saying they prefer these em stocks. It is a lot to do with the fact that they think china did a relatively good job in containment, but they are also saying the recent declines in the msci asiapacific means they have nice entry points. In europe, they are unsure yet what it means for the Economic Impact on europe and they say it could be material risk for the first half. That is why they are thinking that em is likely better than europe, especially if europe was to do these very aggressive containment measures similar to china. That could mean a big hit on growth. What they do like though is the stayathome stocks. Thisg, commerce, i think makes a lot of sense, any of these food delivery companies. You have to stay at home, you are going to be ordering a lot of take out. Anna e. we certainly heard that from our colleagues over in hong kong. Thank you very much. A morning call related to coronavirus. We also bought you brought you the Mining Sector and beyond. That cranny brought us story earlier in. We heard from Airline Companies about the impact. The list goes on in terms of company speaking about what this is doing to their companies. Phillips is the latest, saying the impact of the coronavirus is affecting the demand for phillips consumer portfolio in the country. And it is also affecting the Global Supply chain. This is according to a statement coming through from the company. They cannot quantify the magnitude and duration given the fluidity of the situation continuing to monitor it. We will provide an update as appropriate. Guess you cant say anything when you dont know what to say, matt. That is going to be a question facing many businesses right now. Matt absolutely. Ive got one, and a mover one m a mover here. They have agreed to sell the remaining stake in a credit 520 million. Out 29. 5 . Pital will buy to put that in perspective, 10. 40 took it public at a share. It will keep a 12. 2 stake. Anna e. lets talk a little bit about prudential, and other of the stocks we are watching another of the stocks we are watching. It is all going to be about the rebound, the bounce from yesterday. But on the individual stock, prudential in focus. They have built a position in the u. K. Prudential. The plan to push for changes, including separating the u. S. And asia businesses. Will the market look favorably on this attempt to pull out some of the value in the various geographical units . The new yorkbased had fun run by Dan Loeb Hedge Fund run by dan loeb and we are looking at live pictures of President Trump and Narendra Modi heading to the podium. Yesterday, there was a lot of love being expressed by President Trump for the indian Prime Minister. Yesterday, when they spoke in a cricket stadium. Matt lets listen in. Donald trump about to start speaking, it looks like. Lets hear what he has to say. And the department of health and Human Services of the government of the United States of america. [indiscernible] the safety of medical products. Within the directorate, and terms of Health Services of the republic of india and the food and Drug Administration of the department of health and Human Services of the United States of america. And finally, a letter of cooperation between cooperation ited and exxon mobil [indiscernible] proceedings for the event. To begin, may i request the honorable Prime Minister of india give a statement to the press . [speaking foreign language] ladies and gentlemen, namaste. [speaking foreignlanguage] our historical welcome. [speaking foreign language] an historic welcome for President Trump yesterday will always be remembered. It became clear once that the relations between the United States and india are not just limited to the relations between two governments, they are peopledriven and they are peoplecentric. The mosttionship is Important Partnership of the 21st century and therefore today areident trump and i raising our partnership to the level of a comprehensive global strategic partnership. President trumps contribution in raising our relations to this level have been invaluable. Today, we discussions on a Productive Exchange every important aspect of our partnership, whether it is , Strategic Security energy partnership, technology cooperation, connectivity, trade relations, or people to people ties. Increasing defense and Security Cooperation between india and the United States is a very important aspect of our strategic partnership. Cooperation in defense equipment and platforms will enhance indias defense capabilities. Defense manufacturers are becoming a part of each others supply chains. Are doing the maximum training exercises today with u. S. Forces. In the last few years, there has unprecedented increase in interoperability between our armies. In the same way, we are also increasing our cooperation in the area of Homeland Security and fighting international crime. Todays take on Homeland Security will further strengthen this cooperation. We have also taken a decision today to further increase our efforts in order to supporters to hold supporters of terrorism responsible. President trump has given priority to the fight against the drugs and opioid crisis. Today, we have also agreed on a new mechanism Serious Problems such as drug trafficking, terrorism, and organized crime. The recently established Strategic Energy partnership has become Even Stronger and in this area, our mutual investment has grown. Become a very important source of oil and gas for india. Years,e last four [indiscernible] 20 million. Our core operation our cooperation finds itself improving. Of newly, in the area emerging technologies, india and has obtained ap new level in terms of innovation and enterprise. This has reinforced u. S. Companies leadership. The last three years whether [indiscernible] or a higher education. Over the last four or five years. Contributeds have 70 billion to the relationship that india has with the u. S. This is due to the policies and and i am fully confident that in the years to calm, this will further grow. As far as our bilateral trade is ministers have had very positive discussions. President trump and i come a we have also agreed that the Understanding Reached by our ministers well take us forward. Whether it is energy, civil aircraft or defense or higher education, over the last four or these four sectors have contributed 70 billion to the relationship between india and the u. S. A lot of this is due to the policies and the willingness of President Trump. And i am fully confident that in the years to come, this will further grow. As far as bilateral trade is concerned, our commerce ministers have had very positive discussions. President trump and i have agreed that the Understanding Reached by our commerce ministers will take it forward to good legal shape. Further we are confident that this will bring good results that will be in our mutual interest. Friends, corporation between india and the u. S. At the global our commonunded on Democratic Values and objectives. Especially in the Indo Pacific Region and other global commons. Both of our countries agree on the importance of sustainable and transferred funding in the development of connective infrastructure across the globe across the world. Also in the interests of the world at large. , the friendship between whether itu. S. Is as professionals or students. The indian dias brought into the u. S. Has contributed the most to these relations. These ambassadors of india are not only contributing to the u. S. Economy with their talent and hard work, they are also energizing the American Society with their Democratic Values and rich culture. I have requested President Trump that the contribution of our professionals in terms of Social Security should be discussed further within the framework of a totalization agreement. Of mutual interest to both of us. President trumps visit has inyed a historic role furthering our relationship in all of its dimensions. I wish to express my heartfelt thanks to President Trump for coming to india and for taking these relations to new heights. Thank you. [applause] president thank you very much and Prime Minister modi come of this has been an unforgettable visit. Unforgettable and extraordinary. It has been very wonderful to be with you. Thank you very much. Byania and i have been awed the majesty of india and the exceptional kindness and hospitality of the indian people. It was a profound expression when we arrived up strength and real love. Really, it was love. I think everyone saw that and witnessed that for themselves. The first lady and i also reflected on the memory of Mahatma Gandhi during a wonderful state banquet with the president at the president ial palace. I know Prime Minister modi will agree that this has been a very productive visit for both of our countries. Earlier today, we expanded our different squad with agreements for india to purchase more than 3 billion of advanced American Military equipment including apache and romeo helicopters, the finest in the world. These deals will enhance our military abilities. In our discussions, Prime Minister modi and i affirmed our countries commitment to protecting our citizens from radical islamic terrorism. The unitedort, states is also working productively with pakistan to confront terrorist who cooperate on its soil. Together, the Prime Minister and. Are reigniting the Initiative Since i took office, we have ministerialst quad meeting, i guess you would call it a meeting but it seems like so much more than that and expanded corporation on counterterrorism, cybersecurity, and Maritime Security to ensure a free and open indo pacific. As we deepen our partnership with india, we remember that our countries have been united by shared traditions of democracy and constitutions that protect freedoms, individual rights, and the rule of law. During our visit, we discussed the importance of a secure network and the need for this emerging technology to be a tool for freedom, prospect, progress, and prosperity and to not do anything where it could be conceded conceived as a conduit for. A safe, transparent, and accountable manner. A range is working with of partners including australia and japan to create the blue dot towork, a Major Initiative ensure countries around the world to have access to private sector led sustainable and trustworthy options for highquality Infrastructure Development and that is what is happening. Another major focus of my discussions with Prime Minister modi is forging bilateral economic relationships that are fair and reciprocal. Our teams have made tremendous progress on a comprehensive trade agreement and i am optimistic we can reach a deal that will be of great importance to both countries. Since i took office, u. S. Exports to india are up nearly 60 . And exports of high quality American Energy have grown by come at thank you very much, 500 . That is great. As india grows, so does its energy needs. Exxon mobil signed a deal to improve indias Natural Gas Distribution networks so the u. S. Can export even more lng to india. We are pleased to be joined by the chairman of exxon mobil and lng market development, alex. Thank you. Thank you very much. To buy very much, alex. Energy and of chart chemicals. Jillian. Thank you very much. That is a big deal. Right . Can you handle it . I think so. It is great. To further strengthen our economic ties, the United States is pleased to announce the finance corporation will be establishing a permanent presence right here. America is especially committed to working with india to improve development and empower women entrepreneurs. Ivanka why my daughter attended the Global Entrepreneurship summit to highlight womens economic empowerment. Ivanka, please. A great job you have done. Thank you very much. Thank you. Wgdpve since launched the initiative spearheading projects supporting women in the economy from new delhi to. In our meetings with the Prime Minister, we discussed and agreed to create a Counter Narcotics Working Group to confront the growing threat of illicit fentanyl and opioid production. We must rid our societies of these lethal, horrible poisons. We will rid our societies of these bad drugs pouring in. We havenister modi, made tremendous advances for our people over the past two days and working together, i know that our nations will continue to achieve new breakthroughs, unlock new potential and forge even brighter futures in the years to come. We think we are at a point where our relationship is so special with india, it has never been as good as it is now and i think that is because the leaders of each country we feel very strongly about each other and we have done something that is very unique and we have made some wonderful deals for each of our countries. We want to thank you and the entire nation of india for honoring the United States for its outstanding welcome and i am pleased to say that the u. S. India and partnership is now truly stronger than ever before. He is a tremendous friend and later, Prime Minister modi. We will not be taking questions now. I will be having a press conference at 5 00 p. M. And we will take 20 of questions. Thank you very much. Thank you, all for coming. [applause] and it ends with a hug. Their press conference there, no questions being taken but President Trump and Prime Minister modi making those speeches at the end of their meeting. The fifth meeting between the two gentlemen. The nature of the relationship beginning upgraded to a comprehensive strategic partnership. In terms of the market, there was a lot of talk about defense. The u. S. Defense companies will now provide india. Including helicopter sales. President trump went on to talk about secure 5g and everyone thinks about huawei when he talks about that. Profess Prime Minister modi talked about Energy Products moving from the u. S. To india. A lot for them to talk about. Modi talked about a big trade deal. Helicopter sales. And perhaps around axon. We will wait for the details. Manus i thought it was interesting that i President Trump talked about the importance of the 5g network, a secure 5g network and how it should not be a conduit of oppression and censorship. Clearly a dig at huawei. As european governments continue to push for or even purchase huawei equipment for their 5g networks. Clearly something the president feels strongly about as well as his relationship with modi saying they have strong feelings for each other and a friendship that he was pretty dramatic about. Saying the relationship with india has never been as good as it is now. Let us take a look 14 minutes into the session at how equity indexes are doing. But foreaction to this the most part in reaction to the drops we saw yesterday. The biggest drop in european stocks that we have seen in years yesterday and u. S. Stocks as well. A little bit of a bounce. In a lotown almost 4 of European Equity indexes yesterday so this 0. 5 gain does a realike a big risk on day after what we had yesterday. The stocks europe 600 as well as the ftse and the cac come each up about 0. 5 . Up next, we will talk italy as a coronavirus cases surge in that country. Main point ofthe concern for European Equity indexes. They have more than 200 cases there and seven deaths in italy. Some beginning to prompt real political questions. Also in germany as we see a number of candidates for the cdu Leadership Campaign starting to speak out today. We will cover all of that and more for you. This is bloomberg. Nejra welcome back to the european open. Europeans into your trading day. The italian market as a whole is flat. Elsewhere in europe, there is a bit of a rebound. We do see a flat picture coming through on the italian market. Bear in mind the extent of the losses yesterday, 4 loss. More than that in italy. The coronavirus upsurge has turned italy into the hardest hit european nation. The government is battling to cope as the caseload as glades to more than 200 with seven deaths. A large part of the countrys economic engine is in lockdown. Joining us now is salman ahmed from lombard odier. We are looking at the human toll of this which is unfolding in front of us. When you look at how to invest to protect wealth at this point, do you try to avoid exposure to the powerhouses of northern italy . Do you avoid supply chains connected to china . What is the strategy . At the highou look frequency numbers in china, the recovery is much too slow. Compared to two weeks ago, the view was way more optimistic. New cases are following in china but people are not returning to work as fast as was predicted. You see it in indicators like Traffic Congestion and steel demand. China is still running at 50 capacity. The critical question moving forward is how much will come back . The second issue is the global outbreak. One thing that is getting clear is to stop the virus, you have to shut down everything. That is what the market is focused on. Anything exposed to growth and supply chain coming out of china. Biting safe haven assets as we see these big drops across equity indices . I am about yesterday but are you still buy in bonds as we see yields go down to record lows are you still buy in gold as we see it climbed well above 1600 . Salman we started with gold in our portfolios as a diversifier. Even despite that, gold was supported the cousin of the lower rates picture. Fromwith the uncertainty the virus, we are keeping an emphasis on bonds, gold, and the u. S. Dollar to a certain extent as a hedge, a defense against the unknown and that connected to the virus. We will only shift our stance that there clear Global Demand becomes more clear. Terms of the safe haven assets, or those perceived as such, what i am wondering is do you think valuations there are getting stretched . Salman the question will come into play once we have a on the economic effects and the potential actions from Central Banks. A lot of the selloff yesterday was also a cry for help in my view. It is really pushing the key Central Banks, especially the fed, to come to the fore and cut rates. Willingness shows to cut, the question about valuation will come and a play. I think it is too early to say if these assets are becoming expensive or not. Anna how concerned are you about corporate debt . Upy companies were loading at the beginning of the year. , highyield companies jumped the most since 2018. We have seen what has happened in china. We have seen the speed with which companies that are heavily affected get into trouble. Salman i agree with you and i think this was a complete left field shock. Debt ratios are high and you are vulnerable to any shock that squeezes your cash flow. Take the china example as a template. What we are finding is that as the Chinese Government shut down your of the economy but Loan Obligations are still in place so either you shut down completely or you will have unintended consequences whereby these businesses can go out of business because they have to pay their loans even though they are not getting cash. That is the attribute of these highyield companies that are smaller that we have to be care about and we are thinking carefully about the high leverage and the fact that cash can go down. Matt we will keep you with us. Salman ahmed is chief investment strategist at lombard odier. Balancet cohost on this day at least in equity indexes because we are seeing them come act up a little bit. Not nearly to the levels that they dropped yesterday. Let us get to some of the individual movers. Im going to pick up there because we are seeing a bounce in basic resources. This sector was down more than 5 yesterday. Not a huge bounce but a little relief in the market. Yesterday, european equities had its worst day since the aftermath of a brexit. A stake oftaking just under 5 . They have some plants. They say the u. S. And asia should be split. Meggitt down 4 . Sounding the alarm on margins. Anna thank you very much, and marie. That spendinges and the Fourth Quarter leaving the economy struggling even before the coronavirus created a fresh threat to global growth. 0. 2 ess investment fell and gdp stagnated. Sincerst performance 2013. Your thoughts on germany and whether it can whether this storm. Salman as you mentioned, this the factor ofhave the coronavirus. Germany is a manufacturing hub and is very much exposed to the supply chain and china. It has two exposures. The First Quarter is going to look really bad for germany. We had a bounce back in q3 which fizzled out in q4. N spending are not coming back. I think it will be a tough time for germany and it is clear that easing is not helping. Matt and it is a terrible political time. Angela merkels power is getting drained each day. There is a leadership fight for the cdu. Ar producer went over to film speaker. There are now four candidates to k. Ke over leadership from a. K. After she failed spectacularly. Does that concern you . Salman one word for it now is it is a mess. It does concern us. The fact that how the fall of the leadership candidate came through and also it slows down the decisionmaking. The economy is under pressure and we do not have the full picture. Anna thank you, salman ahmed. He will stay with us on the program. Amid the corona virus outbreak, ubs says it prefers emerging markets over eurozone stocks. We get to that morning call, next. This is bloomberg. W . W . Uhiono anna welcome back to the european open. 30 minutes into your trading day and we are seeing a bit of a bounce in the European Equity markets. I am alongside matt miller in berlin. Storytake a look at the so far for equity indexes after the big almost 4 drops we saw yesterday. Across european indexes and in the u. S. As well. We see a little bit of a bounce today but it is fading fast. Than 0. 5 percent at one point and now we are only gaining about 0. 1 , 0. 2 . The groups moving, stoxx 600 index groups gaining this screen. On the grr you can see that real estate, travel, leisure are leading the pack. Only the automakers and the banks are losing. Now, oil and gas as well now. Coming down in terms of the equity index groups. Anna let us have a look at what is coming out of hong kong. Breaking data on export numbers. , a year on year figure. Of estimate was for a drop 3. 7 so it was much worse than expected. The in port numbers were also down but not quite as much. It seems both imports and exports, all of the business of global trade on both fronts, the hong kong number coming in worse than anticipated. The trade balance is worse than expected. Negative. 30. 6 billion hong kong dollars. The estimate was something around a third of that. I hear we are getting live pictures of the German Health minister right now holding a press conference over at the federal press conference center, the 39yearold throwing his hat in the ring to become the head k. Pulledu after a. K. Out or quit her position. Losing a little bit of power day by day as things here in germany politically are messy. Anothering to hear from candidate as well as after that, we are going to hear from another and there is yet another. There are now four candidates that is thrown their hats in the ring to become the next leader of the cdo which would mean typically also the next candidate for chancellor from the cdu in germany. Process has been moved up to april 25 at the Party Conference. That is when we will find out who the next boss is. We will keep you updated on this developing story as it plays out. It really has been a quickly moving lori, quickly developing story in berlin this morning. Let us get a bloomberg first word news. Leighann the spread of the coronavirus is deeply concerning but the outbreak is not get a pandemic according to the World Health Organization. The growing number of cases in italy is sparking new concern. 80,000. The South China Morning Post reporting hong kong is keeping its close its a schools closed until easter. Harvey weinstein has been convicted of rape. The verdict coming more than two years after he sparked the me too movement. He was not found guilty of predatory sexual assault, a more serious charge. Boris johnson is facing complaints of bad faith in talks with the eu. They are increasingly at odds. Says gainingkesman political independence from the eu will take priority over securing a trade deal. 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. This is bloomberg. Ubs Wealth Management prefers emergingmarket stocks over. On the other hand, it says there is now significant uncertainty in the eurozone with the emergence of a large number of cases in italy. Salman on med is still with us. Salman ahmed is still with us. You cantalk germany or pull out individual cases. You have interesting things to say about india and its resilience in the face of the outbreak in china the cousin of a lack of connectivity. Salman it is a blessing for them at the moment. India has had a tough time since 2018, a slow down. Coronavirus impact spreads out, what we are seeing lowert because india has conductivity with china on the supply chain, it is a relative winner. And oil is lower and india is a big importer of oil. Malaysia are coming out as winners compared to korea and taiwan. Matt where are you looking where are you most focused right now in terms of this . Mover story talks about italy as one of the places that spooked investors yesterday. Are you watching italy or korea more closely than china . Salman we are watchingsalman the pace of recovery in china and watching the workforce coming back to factories and offices. That is critical because that will help us assess what is happening with chinese growth. Andthe outbreak in korea the complete shutdown starting to happen in that country. And why italy is important is its direct proximity to other European Countries but also because italy has a lot of debt. The debt issue worries come back on the table. And it could lose its i. T. Rating. Ig rating. From theaking News Press Conference in germany. We have been talking about the Party Leadership here for the cdu campaign. The contest. O replace a. K. K i thought he was one of the people that wanted to run the cdu. He ran last time that is now saying that he will support another to be the chairman of the cdu. This is truly a surprise in german politics. This candidate who had been forcted to join the contest the german leadership of the cdu and really for the chancellorship position is now throwing his support behind another which is a Fascinating Development here. You we talked about germany before and you pointed out that it is kind of a mess and it certainly is. What do you think about the cdu can savethe itself and continue to run this country after Angela Merkel is done . I think the divisiveness and the fragmentation of politics and germany have been underway for work several years. More accelerated. That is one of the symptoms we are seeing at the moment. This is the worst time because the economic pressure is very high. From that sense, there is not a lot of positive coming through. Anna and what about the fiscal side of things . Have seen the green agenda and the focus on investment in infrastructure. You point out that the green focus in germany is not for you something that will be netnet stimulative. What is your assessment . Great it is a development that they are focusing on the Climate Change issue which is a big challenge. Macro look at the perspective, they are saying they will raise taxes as well. The macroom perspective, they are not adding any stimulus. They are taking from one hand and giving it to the other. If they really want stimulus growth, they have to go and spend without raising taxes. Matt it has been a pleasure having you with us today through all of the breaking news. Thank you for sticking with us. Ahmed is with lombard odier. You can tune in to catch more from him there if you are in london. Thisll continue to follow developing story here in terms of leadership in europes largest economy. He had been expected to be a candidate for the next cdu leader has thrown his support as a moderate and says it is important that the cdu not be divided by a leadership battle. He wants it to end quickly. Developing news story in germany. When we come back, we will talk more about the epicenter of the coronavirus outbreak in europe. What can governments do to combat contagion . What has italy done . And what has it failed to do . This is bloomberg. Matt welcome back to the european open. Into the minutes session and we are seeing equity indexes start to fall again. A had dropped more than 3 yesterday, the biggest drop in years for European Equity indexes and four u. S. Equity indexes as the 10 year yield drops to its lowest level of alltime. Now, we are seeing the dax, the fall. D the fts the ftse 100 is holding steady. The reason of course is the upsurge in the coronavirus in italy. Europes worst hit nation. The problems they say are a combination of bad luck and safety failures. The government is battling to cope as the caseload as glaze. They have seven deaths confirmed. Large parts of the country including the economic engine in the north is are stranded in a virtual lockdown. Joining us now is professor Martin Marshall. Chairman at the Royal College of general practitioners council. I listen to the media reports and people seem concerned, almost surprised regarding the human to human transition a clearly that is how it happens. If a person is standing next to someone that is sick at the dry don, theynd is sneeze can get the coronavirus, right . Prof. Martin marshall it is a virus like any other virus. It is infectious. It seems very infectious actually compared to others though its mortality rate is not as high as flu or other epidemics. It is infectious. Sneezing does not seem to be a big characteristic. But when people get a high fever and a cough or breathing difficulties and have been in contact with someone in a high risk part of the world, that is when we get concerned. Anna professor, good to see you this morning. Can you stop and influenza like five risk . This . Influenza like or do you just slow it down . Prof. Martin marshall we know we can slow it down. If you have rigorous methods of containment, it might be possible to stop it. In the u. K. , we seem to be doing a pretty good job. We had nine cases for several weeks and we can now have 13. It seems the measures we are taking in the u. K. Including , and selfontainment isolation, seem to be working. Whether we are stopping it, we do not know. How many cases do you need to see come how many generations of passing it on before containment has done as much as it can do and then it is about mitigation . Prof. Martin marshall we dont know. We know that it is quite infectious. We know that anyone that gets it on average gives it to 23 people. Super spreaders. At the moment come it does appear that isolation is keeping it contained. We do not know where it is going to go. It may turn into a pandemic. Matt what separates a pandemic orm the normal seasonal flu the coronavirus as we see right now . What makes something a pandemic . It isat happens when officially designated a pandemic in terms of fighting it . Prof. Martin marshall there is a street definition of pandemic but in practice, it means an Infectious Disease that is spreading in multiple parts of the world. That is when it is called a pandemic. Notworld the who has defined it as a pandemic yet. Relativelywithin a short period of time come it can be contained. When it is called a the who decides to define it as such, the implications are not insignificant in terms of what would happen. Individual countries in the u. K. For example, we make it an offense to transgress isolation. Last week. That is something individual countries can do whether we call it a pandemic or not. Anna what have we learned about what works with containment . We saw that incredibly rapid spread on the cruise ship. What do we know about containment and how it should be done well to enable us to have the most positive affect . Prof. Martin marshall it is quite simple and quite common sense. Simple hygiene. The coronavirus is sensitive to detergent and water. Important. Ashing is if you do have a cold, and if you have symptoms of coronavirus, they are more likely to be symptoms of a cold. If you get a cold, use disposable tissue and throw it away right away. Also, if you satisfy the grid tie your the criteria of getting the coronavirus, you need to be isolated. Anna what we learned from the crew ship is there must have for it to betice as bad as it was. Prof. Martin marshall i think that is possible. Is fact that everyone contained in such a tight place has also contributed to the spread as well. Matt professor, thank you for joining us. Professor Martin Marshall from the Royal College of general practitioners council. Up next, we bring you some of the movers including iag. Travel stocks are holding well. At least in todays session. This is bloomberg. Matt welcome back to the bloomberg markets. This is the european open. We are seeing the contest for cdu leadership be played out at a press conference here at the federal press conference hall. Getting thehet backing of spahn. He is on your left. Laschet in the middle. Spahn had run for cdu leadership. Two years ago and lost. He is now throwing his support behind laschet who is now recommending that spahn be the vice chairman. He is recommending that germany needs more europe. In 100ll probably not be percent agreement with another candidate who they will be running against at the Party Conference in april. We will continue to bring this breaking story. A very important one for Angela Merkels successor. Anna let us get an update on the stock stories we are following. Annmarie hordern has more. Annmarie the stocks that fared the worst yesterday including airlines are seeing some recovery. Iag up more than 2 . Travel and leisure also getting a bounce back. Renault down 2 . Auto and banks still under pressure because we do not know the Economic Impact yet. Down 12 . Why . The ceo and cfo resigning on the same day. Anna surprising to investors it would seem. Thank you, Annmarie Hordern. Let us get back to the overall markets where we are seeing a pretty flat picture. An interesting story. Our markets live macro strategist. An interesting 12 hours. At the start of the trading day, we were expecting a bounce which we got but now it is unwinding. Waiting for the u. S. , i guess. When we do see the kind of selloff like we saw yesterday, we tend to see some price action which at with investors coming back into the market. It is probably too soon to tell about the severity and duration of the coronavirus impact. Unlikely we could see a nearterm bounce back but we are right nowlight calm in the markets. A wait and see mode. Matt the volume more than doubled. Havethe european markets an effect on u. S. Markets as well, how important is it for indexes to hold or show a bounce . Slow ropean markets annmarie it will provide a gauge for sentiment today. If european equities trend higher, that would bode well for a strong u. S. Open. But if we look at the particular drivers, yesterday it was driven by the travel and leisure stocks predominately the airline stocks. They felt quite sharply. In todays price action, that is one of the leading sectors. There are already signs of some slight bounce back there. Itn we shift to the u. S. , was largely driven by energy and tech stocks. A slightly different story. We would expect to see a higher dip there as well. Anna laura, macro live strategist. We leave the program for you there. Is up next for you. European stocks relatively flat today after yesterdays drop. This is bloomberg. When you move homes, you move more than just yourself. Thats why xfinity has made taking your internet and tv with you a breeze. Really . Yup. You can transfer your Service Online in about a minute. You can do that . Yeah. And with twohour Service Appointment windows, its all on your schedule. Awesome. So while moving may still come with its share of headaches. No kidding. Were doing all we can to make moving simple, easy, awesome. Go to xfinity. Com moving to get started. Francine the morning after yesterdays coronavirus has driven a selloff, stocks are down again. United airlines withdraws its guidance. Demand for iphones in china plunge 28 . Fighting the infection, the White House Asks Congress for 2. 5 billion to battle the virus and work toward a vaccine. Good morning and welcome to bloomberg surveillance. I am francine lacqua