Exchange begins right now zb morning im Contessa Brewer in for Brian Sullivan we begin with breaking news on European Union gdp figures Joumanna Bercetche is with us. We just got the eurozone gdp numbers coming in at 0. 1 rise for the quarter that equates to a 0. 9 jump for the year so still above that 0 flat line detail on individual countries a lot of focus on german gdp coming in at 0 , so essentially stag nating but no recession year on year translated to 0. 4 for germany. France grew at 0. 9 , the uk at 1. 1 , the u. S. 2. 3 . So still very weak compared to other g10 nations. We are not seeing a huge reaction in markets. We are still ending the week on a positive tone. It has been a good couple of days the eurozone stoxx 600 going from record close to fresh record close in determine any, up 0. 2 , in line with the forecast gdp thats it for our eurozone gdp summup here is how stock futures are setting up after yesterdays more than 128point loss for the dow. S p futures are up 8 points, the dow up in the positive and nasdaq setting up for a green open as well looking at treasuries, you are seeing the 10year down to 1. 592 on a yield lets get to asia, shares seeing a record second week of gains. The japanese nikkei is off the hang seng, hang seng and kospi are off. The country reporting a sharp uptick in the number of confirmed coronavirus cases and deaths overnight rahel solomon joins us with more good morning. So the coronavirus outbreak showing no signs now of peeking with authorities today reporting more than 5,000 new cases and more than 120 new reported deaths. Adding more than 1,700 Health Workers had been infected with six of them having died as of tuesday. The minister issuing a new warning saying his countrys economy could slip into recession due to the virus already worse than sa are everyone s add that to corporate earnings Royal Caribbeans has canceled 18 cruises and joined carnival that warned its earnings would be hit. At this point, it is like, who is not impacted . I also think that now it has gone beyond china because of what we are seeing in these rising cases as well Health Officials are using that and predicting that the United States will follow suit with what we are seeing in singapore and how that plays out as these companies will be pivotal as we go to the Second Quarter lets get back to the markets. Right now, u. S. Stocks are pulling back from record highs investors are tracking potential fallout from the coronavirus major averages are still on pace for the second straight positive week lets bring in the managing director at tjm and cnbc contributor. At this point, we have seen so many analysts trying to game out coronavirus and its impact yet every company that comes out. We saw it yesterday with nvidia predicting 100 million impact to the bottom line how are you thinking about coronavirus and how it affects your in investments today . If you caught me three weeks ago, i would have said this is going to be a major impact and the uncertainty would drive the market down. A couple of things one, i think we can expect china to throw a lot of stimulus at the issue. T the dollar has rallied, stocks have rallied there might be a global thirst this is hugely a global problem. If every central bank is going to throw money at the property, it will end up as the cleanest shirt to use a met for we see the headlines come out. Cooler heads prevail, it seems like the stock market rallies with the dollar, the 10year and the gold how much of an arsenal does it have right now. It has lowered rates we saw them trying to ease back on repo yesterday. We saw how the markets reacted from that turning from green to red. How much of a back stock is there . I think if you heard jay powell speak on tuesday, he sounded unconcerned. The market, i dont think really believes it. The market has plenty left they can do the qe and knock the 10year down to zero there is still points between u. S. And germany, they have plenty to go they have anything other than asset prices my job is to look at equity markets and think about what will happen in the future. It could support the stock market and not the economic condition. You talked about this thirst for u. S. Dollar backed equities. What about gold now. It climbed the chart you are predicting 1,600 yes on the short term. I think it could go higher than that as well im looking to add longs in that the fed will come to the rescue. I think at the end of the day as we go forward, people realize that our rates cant really go up that high global rates are anchored low. Between the two, if we fear the fed will come back in and be dovish, i think there will be a thirst for nonfiat currencies in coin and even bitcoin can do well too but im looking at gold we are looking at oil at 51. 50, brant is at 56. 41 what do you think the impact is globally if demand is slumping globally because of coronavirus . I think it is and will continue to do so. We are seeing that push pull the push with Global Demand and the pull of potential of opec to jaw bone Prices Higher talking about production cuts. The confirmation for me will be when brent traits 52, maybe 52. 5 jim, thank you. Have a great friday. Great weekend. Thank you when we come back, apple trying to get its retail game in china back after a nearly twoweek countrywide shut down. And why shares of nissan are tumbling to 10. 5year lows and one money manager takes a i swipe at wework and the, quote, debacle of investment. A busy hour when Worldwide Exchange returns. 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I hope you have hot plans for valentines it is cold there 3 degrees with winds picking up to 15 miles an hour. I am not meteorologist but occasionally i play one on tv. Apple says business must go on reopening five Retail Locations today with limited hours, roughly two weeks after shutting down locations over virus concerns lets bring in tim lesko how can apple even game out when it is ready to start getting back into business they are opening some stores with limited hours what good does that do it is going to game out what is going on with the coronavirus. You have china changing the way they are diagnosing. So the numbers are starting to scare people a bit if you think about how large china is and how localized this is, it does make sense to be Opening Stores in other areas where commerce is starting again. People need to leave their homes. Maybe Something Like an iphone is uniquely qualified will succeed when people are trying to shelter in place to avoid contact. There is some need for the phone. So you think that the sales are coming, it is just a matter of when and not if. We know foxconn was ready to jump back into business and the government said wait, slow down there. It has slowly come back on line. How does apple try to manage those issues i think thats what apple has been good at the supply chain does the manufacturing from everything to the parts to the shipping. Apple can shift assembly to places like india and brazil where foxconn has set up other Assembly Lines this is a situation where it is not going to hurt apple but other cell manufacturers and Service Providers and also the wearable apple is pretty good at moving the supply chain around. Over the long haul, thats what apple is really good at. Citi sent out a note that said each week, no sales in china is a reduction of about 1. 3 how sustainable is that for apple . Is it a blip on the radar. When you have north of 200 billion on the Balance Sheet, it is not going to impact them being able 20 being able to do what they do. If you look at the cruise business or airline business, when somebody doesnt fly or fill that hotel room, you never get that purchase back when someone delays the purchase of their iphone to next month, it just delays that sale tell me how you are thinking about apple shares right now in a way, the market is trying to discount six months from now it may be that the coronavirus never gets fully corrected in the stock price of apple certainly, if you look at China Business as a whole, you can see maybe a 10 top line reduction that is not the end of the world for a Balance Sheet like apple as i said, it is just a delay in demand, not a disruption of demand thank you for joining us. Still on deck, talk about puppy love the record amount people are willing to spend on their pets for valentines day announcer todays big number, 149. 6 billion thats how much market cap the S P Semiconductors and equipment has gained dont just plan to retire. Plan to live. An annuity helps cover your essential monthly expenses, so youre free to live the life you want. Find out how an annuity can give you Lifetime Income at protectedincome. Org can give you Lifetime Income the amount of Student Loan Debt i have im embarrassed to even say i felt like i was going to spend my whole adult life paying this off thanks to sofi, i can see the light at the end of the tunnel as of 12pm today, i am debt free we have no debt, we dont owe anybody anything, and its fantastic every time it takes care of something for us, we celebrate. How often does that. Got it. Servicenow the smarter way to workflow. 19 minutes past the hour Nissan Motors is off 9. 5 , more than a 10year low as the automaker splashed its forecast. Nissan also will not pay a dividend sales dropped 18 where its once popular models have fallen out of favor nvidia has reported better than expected results above analysts estimates shares are rising as is it expects 100 million sales hit the guidance for the quarter was above expectations, you can see shares up. Pintrest is falling on reports that facebook has launched an app that looks very similar. The app called hobby lets users organize photos of projects and hobbies into themed collections. Pintrest is off on that news and potential competition. Still to come, a legal win for jeff bezos and co against the government the coronavirus and the impact on the phase one trade deal. Rks iscuss what it means for maetand a possible phase two when Worldwide Exchange returns. It begins by being privately owned. 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There you can see the futures in the green the s p baly s p barely in the n strong words from huawei in the fight ait agnsthe white house. Details when Worldwide Exchange returns. Legendary terrain in telluride, the unparalleled landscape of park city, or the famed peaks of whistler, youve faced the hassle of lugging your gear through the airport. With ship skis, youre just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. With unrivaled pricing, real time tracking ship skis delivers, hassle free. Ship ahead and go catch those first tracks on fresh snow. Ship skis. Your skis. Delivered. The coronavirus shows no sign of peeking as china reports thousands new cases. We are live with the latest. T rowe price taking a dig at wework the second half of Worldwide Exchange starts right now welcome back im Contessa Brewer in for Brian Sullivan happy valentines day to you. Right now, it looks like we are shaping up for a positive open on all three indices. Now the s p 500 indicated to open up. The dow jones opening up 53 and the nasdaq looking like it will open up 33 looking to the yield on the treasury the 10year is down to 1. 595 in terms of yield asian markets really lifting we have the nikkei down a half a percent. The hang seng and shanghai composite are in positive territory closing up about a third of a percent lets see what is happening in the early trade in europe where weve seen mostly flattish response to those gdp numbers. The ftse and the dax both in positive territory again, just a mild muted response to the flat line gdp numbers in europe. Rahel joins us with more. Amazon has landed quite a big victory in the dispute over microsoft being awarded the 10 billion defense contract a judge has ordered work to stop on the jedi contract microsoft was set to begin work on the project this month. Theyve criticized the ruling. T. Rowe price taking a swipe at the Office Space Provider calling it debacle and terrible. The invest in wework dropped 74 leading up to september of last year finally, huawei is slamming charges against the company. The chinese Tech Department says the charges of stealing trade secrets are an attempt to damage its image. Trump administration is filing for an extension the saga between huawei continues. Never ending. Sticking with china, the country reporting a sharp uptick in cases and deaths overnight another Company Issues a new warning surrounding the outbreak eunice yoon joins us now from beijing. What is the fallout here Royal Caribbean is warning of trouble ahead for the year it canceled 18 cruises set to sail in Southeast Asia saying that move cuts shares by 65 cents. If it has to pull the rest of its sailings scheduled for april, that would knowledge another 55 cents from its eps. This comes as singapores Prime Minister said he couldnt rule out a recession. He said singapore is bracing for what is called significant hit with flights cut to a third in a place very dependent on trade and tourism. Because of the virusout break, there are a lot of economists that say that could reach as much as 100 million in beijing, business is attempting to get back to normal apple opened five beijing stores with limited hours of seven instead of 12. Using the same prevention and control measures everybody funneled through one entrance and through Health Checks there was a lot of traffic but not what you would expect for an afternoon of valentines in china. Is there any anticipation how long the ramp might take to normal business . No. I think it is really unclear because the numbers are unclear. The efforts by the government to try to stamp out the virus is also unclear people want to go back i think there would be pent up demand a lot of people in the store saying they needed to repair their gadgets or they wanted to buy new things because they just dont feel safe yet, we dont know about the timing of it all thank you for the great reporting there. Amid the joongoingout reak, the phase one trade deal is set to go into effect today. Roberto brian suggesting the the virus could reduce u. S. Purchases this year. And Steven Mnuchin echoed that sentiment during testimony our biggest focus is implementing phase one that to a certain extent has slowed down given the virus, as expected i think the good news, phase two, we have the entire phase two chapters dealt with. We may roll them out as phase two, a, b, c, d. It doesnt necessarily have to be a big bang. Im joined by my guests good to see both of you today. Tina, it is not just agricultural purchases, china has made huge commitments in terms of oil weve already seen demand slumping is there any chance they can keep up with commitments ahead of this massive outbreak we have to be prepared for a slow down as we heard from secretary mnuchin in terms of how this deal would be implemented. The extent to which the coronavirus is not something who is in anybodys 2020 forecast and now has the potential to be significant negative trigger both for supply chains and the Global Economy should tell us a lot. They have really pushed this trade deal off the front pages give me a sense of how you put phase one into perspective going into effect today and how you push out going to a phase two . Coronavirus really takes a lot of the impetus off there is a lot that has to happen with phase one. We are finishing the deal, pushing it into effect now we are not talking implementation or china. It is not just purchases it is intellectual property, forced Technology Transfer seeing if china will make a progress there we are hearing a lot of rhetoric that phase two would be rolled out not in a huge hurry. The president has said that. Mnuchin has said hes not in a huge hurry here. I dont expect phase two or at least the totality of phase two given the economic standpoint. There is not a lot of pressure to get it done we are seeing the caucuses and the primary play out you have Bernie Sanders winning new hampshire. How does that factor in . What does it mean if Bernie Sanders continues. Hes as antifree trade as the president has been i actually think the question will be at the beginning of a u. S. Economic slow down really hurts President Trumps chances for a second term. Certainly, there have been longstanding worries about a hard left nominee and even suggestions that i talk to that a nomination of bernie or Elizabeth Warren could in it selfby a trigger for a slow down but that was precoronavirus my answer based on looking at previous preelection periods like this is that for the slow down to hurt President Trump significantly, it would have to start very soon and very very sharp. On the flip side, does that boost the chances of a warren or a sanders . I dont think so it is interesting that you say a sharp slowdown might boost chances, yet, what weve seen as ive been on the ground, you go out and talk to farmers who are losing farms due to tariffs. It was not enough to change their support for President Trump . They still support trump. That speaks to polarization. You are not going to get people crossing the aisle over a 1 or 2 point growth slow down in politics and the way it affects markets and investments . Let me jump in. Farmers have to deal with some challenges on the other hand, in this battle over china and trade, a lot of people who may be hurt about it still recognize there are real issues at play and talking about american property and particularly intellectual property, which is the backbone of this economy. We are talking about a government that does not play by the rules. I think the president has bought a lot of good will there even though we are talking about slow down, it has been incredibly strong from a labor market, wage perspective it is the best weve seen in a decade giving a lot of good will and trends we are seeing going into 2020 is there a chance coronavirus does what even the trade war wasnt doing in terms of convincing manufacturers to move supplies and chains out of china . I think this is a real issue. Wilber ross alluded to last week and got some heat but the truth is hes making a good point. We are having this decoupling conversation when p it comes to u. S. Supply chains in china. One more reason why American Companies will look at china and say what is my real total risk here it is not just Political Risk but risk that can bleed into issues like health if you are an american company, you say, wait a second, im doing something in the u. S. That eliminates that risk and allows me to serve my customers this is a real issue i think coronavirus will play into it. Finally, are there any other big risks looming for you other than coronavirus well coronavirus is still the black Swan Building on what briean said. I think it is a massive test of chinese leadership, especially coming on the back of hong kong protests the ability to maintain control and to keep the confidence of the people is very much at stake here in terms of other black swans, i think blow back of the assassination this year over the Iranian Military figure is still something to contend with and reigniting those tensions. Im also concerned in an uptick of refugee flows out of syria via turkey, if turkey decides to open those gates that triggered a lot of instability here and in europe tina, brian, i appreciate your presence today. Dont forget to watch cnbc special coverage of the outbreak tonight at 7 00 p. M. Eastern coming up, more on coronavirus and the cash crunch at the casino capital of the world. Ma macao is facing a big wallup and how much people will spend on valentines on their true love, their fur babies do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Dont just plan to retire. Plan to live. An annuity helps cover your essential monthly expenses, so youre free to live the life you want. Find out how an annuity can give you Lifetime Income at protectedincome. Org results come about two months after the companys ceo and cfo resigned leaving daytoday operations in the hands of gary dillar refocusing on core operations. Shares are up in Fourth Quarter trading. The maker of streaming device benefitting from the launch of disney plus and apple tv plus. Dont miss an interview with roku ceo today shares of yelp falling today more local advertisers chose to shift their spending from the Holiday Season into the new year yelp shares off. A special valentines day trending i dressed for valentines. Clearly olive is the new red people are expected to spend 1. 7 billion on their pets today. Up 17 from a decade ago saying more than one in four people will give their pets a valentines day gift. With the offering Consumer Spending roughly 12 per pet not breaking the bank. Overall spending a record 27 million. I recognize this dog. Dont we have sound on this. Shes talking to me. Her name is olive. When you are talking about valentines day and loving your pet. That is my true love. How much did you spend on teddy . I havent spent anything yet, i have time. Happy valentines day everyone. Billboard put together a list of top love songs of all time using the chart to create the ranking. Song hz to have the word love. How deep is your love. I will make love to you. Boys to men. And endless love. I sang that at a wedding and got paid for it. That was a long time ago happy valentines day. You too on deck, shares of smile direct facing loss raising concern about the companys product. A reminder for you you can always watch or listen on the go or on the app, occasionally, youll hear us singing and then getting in trouble for it Worldwide Exchange back in a moment when it comes to your business internet, which is more important . Okay, i wish i didnt have to choose. Like the more i think about it, the more i want to jump to each room. What if i said you can have it all . Comcast business gives you connectivity that goes beyond. Thats what we want thats speed, reliability, and security, all from one provider. Touchdown get started with internet and voice for an amazing price. Call today. Comcast business. Beyond fast. Shares of nissan at a 10year low in japan the company says u. S. Sales fallen 18 it wont pay a dividend. Wren ult set a lower operating goal for 2020 shares down almost 10 . Smile direct club under pressure that customers are reporting the aligners are causing pain problems Better Business bureau has reported more than 1,800 complaints including broken teeth and nerve damage Mark Zuckerberg accepts he may have to pay more tax overseas expected to address frustration by how much Tech Companies are taxed in europe. The coronavirus has all but closed the casino capital in the world, macao casinos were ordered to close betting for 41 days. We are 15 days now three u. S. Companies there las vegas sands, Wynne Resorts and mgm resorts. Melco there as well. Stock prices are down but have recovered off the lows casinos are bleeding money wynne is spending about 2. 5 million a day on fixed costs, mostly salaries mgm daily costs 1. 5 million banning tourists from other places like the philippines. The u. S. Is barring anyone who has been to china in the last two weeks from entering the u. S. It is a blow to las vegas. The pimpact is so severe. It has withdrawn Financial Guidance for 2020. Caller we look to calendar year 2020, we expect certain head winds that are unpredictable within a reasonable range of accuracy we are currently navigating an extremely fluid environment with the coronavirus which we are taking very seriously. Joining me now, analyst and director covering gaming, lodging and leisure. You have a lot going on on your plate today . We do aside as you mentioned what we cover in global leisure. Talk to me about what is happening and what has warned the risk of coronavirus puts into question credit worthiness questions about Wynne Resorts. They have to 345ik those warnings, when you sit down and look at those, they are both well capitalized when you look at 2. 5 million a day, looking at las vegas sands, they are positioned to withstand what we expect to be confined to just the First Quarter are you worried about putting on an expectation to the limit since theo outbreak continues. As a stock picker, we worry every day. There is always something to worry about and yes, we certainly do the information weve read and the research with sars in the past it will be confined to the First Quarter. How much of an impact do you there is, 65 . Taken it down to 60 across the board specifically in macao. We heard from wynne we got a lot more detail that far east declined, mgm said more than 100 million year over year in 2019. Now we have this ban on china visitors what does that do in las vegas the business in las vegas has been in decline for a number of years. It is just not a focus of theirs it has been brought to bear and brought to the forefront of the coronavirus. Weve seen these numbers down in vegas for years now. I want to ask you about more in vegas now we saw the Congress Cancel this Big Convention in spain and barcelona. There were highprofile vendors and exhibitors that pulled out amazon, nokia and others they shut down the whole thing could we start to see the impact to the allimportant Convention Business in las vegas . We could. This could impact the economy throughout the year. Our expectation particularly in china, there is going to be financial stimulus that helps that market snap back. Hilton and marriott have glob glob global exposure. The earnings exposure is small. In wyndhams case, about 2. 5 it is not a major earnings impact they are much more u. S. Focused unless there is an joongoing impact and Business Travel, if there is an impact on Business Travel, yes . Yes and hilton is 70 or so Business Travel so, yes, global Business Travel would impact earnings on a broader basis. David katz, thank you forgetting up early. Take a look at the futures, the dow right now is in positive territory. You can see we are up about 58, 59 points. S p futures up 9 and nasdaq up 39 points. Im joined by chief strategist it is great to see you this morning. The market seems to be looking to a lot of bad news that everybody has been focused on if you want to look to the like likely suspects. Anybody with high exposure to china. A loss is a loss forever for other Companies Like apple, an iphone loss today is likely to comeback in the latter half of the year. We heard from nvidia, who is expecting 100 million impact. Still its guidance beat expectations we heard from alibaba that said this is a black swan event black swan is a big word. Thats what the ceo called it tell me about if there is this impact, how soon do you expect a recovery markets are already looking for the recovery it is a 14 trillion economy right now, the coronavirus is not my top three list of things im worried about. Im worried that the estimate divisions have come down a year ago, we were looking for earnings now we are down. The elephant in the room is the election at this point nobody is really focused on that the word socialism doesnt play well in stocks youll see a push back in health care and big tech. Interest rates . It is really important. Asset classes compete for your dollar just like Everything Else as long as that stays low, stocks have the bigger asset class. Give me the valentines day strategy broadly speaking, most of the sectors look good to me. The challenge i have is that the energy sector, it has been good money after bad. It hasnt done anything. The second is health care. To some of those points i made, if Bernie Sanders is the nominee, medicare for all will be a focal point ten seconds, are there places you want to be that you are not . Im almost everywhere else. Technology is number two that does it for us at Worldwide Exchange. Squawk box begins right now. Good morning coronavirus numbers surge. And some Cruise Ship Passengers were allowed to disembark. Live report from beijing ahead pintrest shares falling as facebook quietly rolled out a copycat app. Viral video sparking debate about the right to recline i want your input on it. Squawk box begins right now. Good morning welcome to squawk box on cnbc. We are live from the marketsite in times square. Happy valentines day no red but some green. Dow indicated up about 60 points, s p indicated up about 10 points and the nasdaq about 38 this comes after a slight pull back yesterday the market was down. S p off by 5. 5 and s p by 13 so there was declined and well see how things shake out today youll see th