Than to postpone or move them. The modern olympics, which dates to 1896, have been canceled only during wartime. The driver of a tesla suv killed in a crash two years ago was playing a videogame on his own at the time. That is according to the National Transportation safety board. At a hearing today, the ntsb chairman said partially automated driving systems like teslas autopilot cannot drive themselves. Says, drivers continue to use them without paying attention. The family of the engineer is suing tesla. He died in the crash when the vehicle swerved and slammed into a concrete barrier. Global news 24 hours a day, onair, and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Shery shery live from bloomberd headquarters in new york, im shery ahn. Amanda live in toronto, im amanda lang. Shery here are the top stories we are following from around the world. No rest for the markets. Stocks coming off of their worst session in two years. Ands p 500 at session lows on track for its fourth straight day of losses. This amid worries the coronavirus will take a bigger toll on global growth. Mastercard and United Airlines joining a course of companies warning about the impact of the virus on their bottom line. Jamie dimon raising concerns about the effects of negative interest rate. We will bring you the highlights from jpmorgans investor day. Amanda lets get a quick check on the major averages. As you alluded, we are seeing another day of declines. Like they might be positive at the getgo, but there is plenty to chew on today that is causing negativity, including the cdc today saying the potential for an outbreak must be factored into the u. S. Across the board, the dow is the steepest, but the s p right behind it. Financials,rials, the three biggest decliners. The 10year yelled, 1. 3 today. This of course comes on those warnings. We are hearing from specific companies now about the vagueness of their outlook in the case of airlines. Mastercard getting into specifics. We will get into that. Even ecommerce is being affected. There was some good news at home. Check out the u. S. Housing market. This is the Case Schiller National home price index. We saw a surprising bit of strength in november. Also true of a 20city composite index. There is some good news on the housing front for americans. That may be good for some specific companies. Shery some good news also in the sector front. Since the start of the coronavirus, some sectors have held up. Technology, Consumer Discretionary stocks outperforming the other markets. When it comes to tech stocks, we have seen a gain of 3 since the concerns of the coronavirus started appearing in january. We have seen a big impact with semis falling more than 5 . We are seeing this continuing losses. Same thing with Consumer Discretionary stocks, Holding Onto Gains since midjanuary. Those are starting to fade a little bit. Cutting theiray threeweekold revenue forecast. We are seeing how Consumer Behavior is changing. You mentioned industrials and energy underperforming. That has been the case for the past month. Not surprising, as it is dependent on chinese demand. Seen oil demand globally wiped out, about 20 down since the coronavirus outbreak. Not surprisingly are seeing those sectors underperforming. Of course, it is new coronavirus cases that is causing the concern with the u. S. Cdc now saying americans may have to prepare for an outbreak of a more serious nature at home. Is standing by in hong kong with the latest. On,ooking at what is going we had donald trump saying earlier that he thought china was getting under troll. That, the chinese president saying we are doing all we can at the moment, and an effect, we are limiting the impact. Then we have the rollcall of countries which are now seeing fresh cases. We heard from iran, who has the biggest number of deaths outside of china. Austria, croatia, switzerland. On lockdown in the Spanish Island of tenor reef. South korea has 977 people affected. What are people doing . It is about containment. Turkey, the latest countries to impose sanctions in terms of flying to iran. Quarantiningis certain people coming from certain cities. Huge economic cost. See 1 trillion lost by the Global Economy as a result of this virus. That is where we are at the moment. Witheath toll now at 2706 80,500 people affected. Shery thank you for the latest on the outbreak. Right now we are seeing the markets moving. The 10year yield falling to a 1. 3171 . W a record low when it comes to 10 year treasury yields. We have seen the resume their push to a record low. This, as larry kudlow is speaking at the moment, saying the outbreak has been contained in the u. S. , there have been no supply disruptions resulting from the coronavirus. Lets discuss the outbreak and how this is affecting the markets with Evercore IsisSenior Marketing director, dennis debusschere. Key question right now with the 10year at a record low, is this the time to buy the dip, or are we heading toward something more serious . Dennis there are too many unknowns. We are dealing with a probability distribution that is hard to figure out. We dont know if things are contained in the u. S. , or anywhere. Two, the duration of the problem. In the early parts of this, it was simpler when a narrative was it was going to be contained to china. As long as Global Demand remained robust, you could assume some snap back. People are just waiting for it to show up on long island. I say that because i live there. Anywhere that is local. Shery im actually surprised it has not shown up yet. But it is spurting everywhere. Assuming inle are the market, which is why you are seeing what you are seeing. It will be here. Then the key is how the consumer reacts. Housing numbers have been strong, Consumer Confidence has been strong, on assignment is low. The bar for recession is high in the u. S. Unless the consumer retrench is. People are charged to figure out, as that comes to the u. S. , whether or not you agree with this but people seem to think it is a given will it lead to considerable consumer retracement . If that happens, recession risks go up. We will take the other side of this and focus on the fundamentals. I am not going to forecast how bad it will be, how the consumer will react. What i will tell you is the fundamental backdrop for the consumer is much better than heading into previous recessions. Conventional wisdom in times like this is you dont try to catch a falling knife. When you think about the potential for investors out there, standing by and waiting to see what happens is not a bad outcome if you have a 7, 10year horizon on your investment. If you dont, what are you recommending people think about . There are a lot of unknowns about this black swan event. What are you telling people about the loss of value in their portfolios . Dennis reacting is probably the worst decision. What you want to focus on is your core positions, the highest quality positions, the things that can weather the storm. I would not be reacting to moves in the markets. The uncertainty is so high, we dont know the probability distribution. I cannot discern anything from a 1. 3 percent 10year yield. That is a mistake. Youll be forced to people dont like this answer but youll be forced to own your volatility and your core names. Focus on Higher Quality names on a go forward basis. We are going to bring in luke kawa here, who always watches these things. We were talking about these specific warnings we are now getting. Interesting to hear larry kudlow say today that it is contained, supply chains have not benefit it, which seems a little ingenuous, when we have these are frontline businesses, airlines, travel industries. Give me your sense of black swan, a lot of unknowns but where this might go for specific corporations . Luke you have highlighted mastercard and united. Different stories and how the stocks are reacting. Mastercard, to their credit, said we are going to have nearly 10 year on year net revenue growth, which is nothing to sneeze at. What i found interesting about this was that they said, we still think we will be at the low end of our fullyear guidance, if this is only a First Quarter story. The fact that is not being withdrawn tells you a lot about what you need to know about what Corporate America expects in terms of the longevity, or the amount of this bounce back. The chart we have here shows you , yes, 2020 fiscal year earnings estimates are down, but this is a rather mild revision to see in the first part of the year, especially compared to previous years. Yield, about the 10year right now, if you talk about which places will see a bigger economic fallout from the coronavirus, pretty much everyone has europe and germany ahead of the u. S. Facing a bigger drop. What has happened since late january, when the markets have woken up to the risk . The tenyear treasury has dropped much more than the bund. How transparent would you say companies have been in reflecting the coronavirus threat . Dennis i would give them credit for being as transparent as they can be. They are operating with as much information as we are. I give them credit for being upfront about it. Havewhat we can tell, they been pretty transparent about the impact. It is going to be there. They know as little as we know. Amanda luke, what do you think . How much moreknow we could expect, but bringing it back to the fundamental picture, t, when housing is going up, americans are getting jobs, it is easy to feel confident about the u. S. Economy. You have some numbers released this morning that were pretty strong. That all seems pretty good. On the other hand, it seems like there should be some reaction showing up in 2020 earnings estimates to a greater degree than they have. That is the sort of damocles hanging over the market. All of the market rally that we had prior to this was based on expanding multiples, so it is not like the fundamental earnings picture was front and center to begin with. Dennis you will end up with more of a profit problem that economic problem. Profitbelieve that the problem will be relatively transitory, because demand will be firm, you expect a snap back. Shery thank you to both of you. Citi. Up, a shuffle at why the bank is moving around his Top Investment bankers. This is bloomberg. Amanda this is bloomberg markets. Im amanda lang in toronto. Shery im shery ahn in new york. Day on wall street from jpmorgan making its pitches on investor day, to barclays chairman being pressed by one of its shareholders. Sonali basak, plenty to talk about. Lets start with jamie dimon, given the 10year is at record lows. He thinks growth will be top in the next decade. Especially for one of americas biggest banks. That Interest Income will be pressured this year, will recover next year. The on the issues we are seeing in terms of headwinds for Interest Rates, jamie dimon says they are seeing competition in the Investment Banking and Lending Industries everywhere, from traditional banks as well as Technology Companies and private equity firms. He was not shy about saying he was ready to tackle that. Amanda changes at the top of citi. Focusinglike banks are on that highmargin business in the Investment Banking side. What do you make of the executive shuffle . Usually number four or five on our mergers and acquisitions table. The short answer to all of this change is there is a generational shift going on at citigroup, a lot of new people rising up. Their Financial Institutions group is important. We have seen the main leader move over to asia, another growth area or them. That means they have had to raise people under him up to lead the group. Citigroup has advised other banks before. Deutsche bank, for example. They also have somebody international helping to lead the business, the business of banking other banks. Shery the barclays ceo facing more pressure from an activist perspective. Edward bramson is the activist investor in barclays. He has not gotten a lot of what he wanted until now, but he is heading barclays ceo while he is down. A second look into the situation involving staley. This time they are looking into relationship with Jeffrey Epstein and whether he disclosed everything about his relationship with epstein. Lets see if bramson starts to push for specific changes. For now, he is just saying a lot of this disruption needs to end. Amanda sonali basak, thank you. Coming up, weve been talking about that record low in the u. S. 10year yield. Safety, seek safety, but what is the fallout from that . This is bloomberg. Shery this is bloomberg markets. Im shery ahn in new york. Amanda im amanda lang in toronto. Now hittingks session lows. The u. S. 10year has hit a record low. With us from princeton, new jersey is bloomberg jersey. Ences ira some forecast that is can go even lower if the worstcase scenario starts to unfold. I want to talk about what implications that has on the real world, including financials. Do you expect to see real weakness in financials, or is this a blip they can survive . I dont cover equities but presumably for financials, that interest margins may become cramped. Short Interest Rates are now significantly higher and a lot of the funding markets. Repurchase agreements, commercial paper yield is higher than they are in 10 and fiveyear yield, where banks make a lot of their loans. This is not a major surprise even what has happened over the past month, where treasury yields have fallen substantially. Are sorry toties catch up, you have a little bit of rotation out of equities and into fixed income assets, treasuries being the primary beneficiary of it. The financial crisis has several moments when we are close to the alltime lows. What happens after that level is reached . Ira what happens after you reach, you make new lows, or you bounce back. Wind up having clarity on how bad the economy will get globally, specifically in the u. S. , then treasury yields could edge their way lower. One thing that all of the angst and uncertainty with the coronavirus comes from the fact that you will not have higher Interest Rates and a lot of the developed markets anytime soon. This just makes that worse. Go . Here do you do you buy negative yielding assets in germany or japan, or any kind of yield a you can get and by u. S. Treasurys . Even though at record lows, they are still higher than home asset prices that you could get in those countries. The best house out of a bad neighborhood. Thank you so much for the latest on the 10year off on to record lows. Time for the Bloomberg Business flash. Home depot has rebounded from a string of disappointing results. The largest Home Improvement chain in the u. S. Reported fourthquarter results that beat estimates. Samestore sales did better than expected and the company is forecasting comparable sales growth up to 4 this year. Shares of drugmaker melon crops are soaring today. The company has agreed to pay 1. 4 billion to settle claims stemming from the opioid crisis. Some of their units will file for chapter 11 bankruptcy protections. Firmsh financial revolution has completed a funding round, valuing them at 5. 5 billion. It still has not turned a profit yet. Says they will focus on expansion and strive toward profitability. That is your business flash update. String really into crossborder interesting story here. Power grids on both sides of the u. S. And canada borders could cut their emissions by sharing electricity. One big beneficiary of new yorks push into greater transmission is quebec. A massive hydroelectric power house. You may know, as is the case in your country, a lot of the grids run northsouth, instead of eastwest. Instead of ontario benefiting, it will be new york. Shery similar to that integrated platform we have seen with windrich denmark, and norway, which has euros biggest hydroelectric system. Division is there, but with all of these things, there is the political willpower, and how legislation can be passed across borders. Always the issue, political will. Can showharts that we you, you can find on gtv on the bloomberg. Browse recent charts on television and catch up on key analysis. This is bloomberg. Mark i am Mark Crumpton with first word news. The centers for Disease Control and prevention is warning americans to prepare for their daily life to be disrupted by the coronavirus. The cdc says it is likely to include School Closings and the cancellation of Public Events and business meetings. The cdc says it is not a matter of if, but a question of when. The warning came hours after president trump, speaking in new delhi, india, china to these concerns, saying the virus is very well under control in the u. S