And jeff bezos making a 10 billion pledge in a fight against Climate Change Worldwide Exchange begins right now. Good morning welcome to the show. Im brian chu in for Brian Sullivan today here is how the markets are looking for this Tuesday Morning after the markets were closed yesterday for the holiday. S p down by 15, dow down by 150 and nasdaq down by 18. Taking a look at the bond market down 1. 54 for 10year benchmark. Twoyear note yields a hair below 1. 4 right now lets go worldwide and look at whats happening with the asian trade you can see the shanghai composite. The nikkei in japan down there as well. A bit of a mixed picture in midday trade. Again, mostly red there. You can see the cac, the uk down as well. The ftse mib in italy in green so far china says there had been 1,900 cases and more the death toll sits at 9, 800 looking at a result of the Virus Outbreak moodys has lowered the growth forecast from 5. 8 due to lower import demand. Officials in macao announce dozens of casinos are set to reopen on thursday those facilities have been shut down since early this month. Hundreds ever americans who had been Cruise Ship Passengers finally arrive back in the United States including 14 people who tested positive for the virus. They arrived via charter flights to military bases in texas and california the passengers will be sent to appropriate places for continued isolation and care apple has announced it will not meet quarterly revenue forecast as a result of the con trained Worldwide Supply of iphone and demands those shares off 3. 5 in after hours trade. Arjun joins us with more what else is the tech giant saying regarding this particular guidance i remember, it was the same time last year when apple had another revenue warning. Are markets going to take this seriously . Thats right. Another black cloud over apple the company has pointed to a slower return to normal conditions than anticipated. It pointed 20 two factors 0 because of the extended Lunar New Year holiday there is no production happening. Those have only start to come back on line ramping up slowly and to give you a bit of context apple has about 650 thour workers. You can imagine how difficult that is the second issue is on the demand side. Youve seen apple come out and offer no new guidance as well. Arjun, as we talk about the notion that traders will be watching this closely. It wasnt that long ago since apple came out with a warning. Is this a case apple will recover quickly from disruptions . We have no idea how long this will last or how long until it is contained i think this is a very different situation. What you saw was apple come out with new devices with the iphone 11 and 11 pro max. Those have done very well in china. This coronavirus came out of nowhere. I think the market has been cautious for apple they are still very bullish given the rollout of 5g and bringing its own 5g devices. That will bring up the question of whether apple will bring the demand a lot of questions around this coronavirus Going Forward. Wall street coming out with reporters and analysts talking about the impact for sure. Arjun, thank you for the latest on that apple warning. Lets get a look at other top stories today with Frank Holland. Hsbc announces a major overall that will result in 35,000 job cuts. With a jump in pretax profit from last year well below analyst expectations. The bank also warned of pressure in the Asia Business because of the coronaVirus Outbreak pier 1 announced beginning chapp chapper chapter 11 proceedings they have talked to a number of businesses that could acquire them bezos announced a new environmentally focused fund the money will help back scientists, activists and any other effort to help protecting our planet thank you for those updates. Turning back to the markets now, im joined by chief economist at jefferys international apple, some real rubbermeetsthe road guidance is this what we can expect from businesses all over the world . I know nothing about apple but it is not surprising youll have Large Companies with complicated supply chains coming out of warnings. In terms of the global trade cycle, it is very different from when sars hit in 2003. Well see the world trade coming out of the dot com bubble bursting the situation now is is that world trade rolled over last year according to world trade organization, that fell further into the First Quarter of this year that points the direction of travel i would expect on the back of us and put brexit into the mix. More companies will be revisiting their models. Theyll be looking at their supply chains. We would expect to see the impact of the Global Supply Chain Management Going Forward in terms of the global gdp, it is not a major hit, we are watching developments closely. There had been so much brought up in uncertainty. You model these things how do you then put those into your model how do you know or predict knowing where the impact is going to happen . First you try and predict the impact on trade and repercussions then you have to look at the sort of policy response or expectation of the policy response. We are not expecting any response on the back of us and more of what we might be seeing right now. People are bringing them down around 25 to 50 basis points those are the in right ballpark. If you are any Manufacturing Company or service company, servicing with extensive supply chain links, youll be looking at your model. This will have more repercussions on trade for sure. When we come back on the show, Mark Zuckerberg meets with top officials amid increasing scrutiny what one top official is facing about proposal to reign in china fires the latest shot with ongoing dispute with the u. S. And better late than er. Ve another enters the streaming wars more when we return after this especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its the most open and secure public cloud for business. It can manage all your apps and data from anywhere. So it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. Without getting in your way. 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. Welcome back to the show Mark Zuckerberg is meeting with ski officials that could have an impact on his company and others calling on leaders to provide Tech Companies with more details on matters including data and privacy. Joining us live perfect brussels you sat down with the commissions executive Vice President about proposals and technology what did she say she said she has noticed a change in tone from facebook and other tech giants that they had realized that regulation is here to stay. When i asked whether she thinks whether facebook is facing other competition issues she said she is not aware of their strategy the other executive arm of the eu would face compafair competin potentially gaining takes in nokia and ericcson, players when it comes to 5g take a listen. In europe, we are neutral on ownership. You can be state owned or privately owned. What is important for us is that you act as a market operator and have a real Business Case for what you do. You have a competition policy in the eu leaving the door open for the take over for these two European Companies what else did chef to say overall . This could have real wide ranging implications around the entire industry. Absolutely. When asked about this debate, they are seeing a lot of focus particularly in the United States she said that this is a ve complicated situation. Do you break up and have two facebooks or two googles when it comes to the european mind, they made it very clear that there is a coming regulation she is presenting new rules on ai this will be a proposal in coming months. She could be looking at acquisitions that these companies have made in terms of european startups. When it comes to regulating Tech Companies, even if we are not talking about a breakup at this stage. Thank you very much still on deck, a look at stocks to watch including one company seeing shares slide after striking a multibillion rail deal that name when Worldwide Exchange returns after this announcer todays big number 533 million thats the current value of berkshi berkshi berkshires new position in kroger whether your beauty routine is 3 steps. Or 57, make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. A more secure diaper closure. There were babies involved. And they werent saying much. Thats what we do at 3m, we listen to people, even those who dont have a voice. We are people helping people. Find the best instructors in the world, and tie it all together with a worldclass software experience. We ended up creating, as you all know, so much more. Peloton is truly a category of one and were just getting started. Now, lets do this. Together, we are going further than we ever thought possible. Welcome back to the show times square only going to get busier not far from where squawk box is going to air. Lets look at other stocks on the move reportedly in talks to buy rivalry led. Legg mason has a market cap of millions shares of alstom are lower in european trading after agreeing to buy bombard ners rail for 6. 7 billion it would give alstom a leading share of the european rail market the Parent Company of holiday inn and plaza chains with a shortterm hit from the coronavirus, the Company Closed a third of hoe tens in china as of late january. Still to come, a new era of wework as a new ceo takes the helm Worldwide Exchange will be right back this is the age of expression. But shouldnt somebody be listening . So. Lets talk. Were built for hearing whats important to you, one to one. Edward jones. Its time for investing to feel individual. Because its tailored to you . Take the personal assessment and get matched with a proven weight loss plan. Find out which customized plan can make losing weight easier for you myww join today with the ww triple play thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines, mix in lines of unlimited, and switch it up at any time. All with millions of secure wifi hotspots and the best lte everywhere else. Its a different kind of wireless network, designed to save you money. Switch and save up to 400 a year on your wireless bill. And save even more when you say bring my own phone into your voice remote. Thats simple, easy, awesome. Click, call or visit a store today. A look at futures picture. The dow down about 130 points. Nasdaq down about 74 points. A slight improvement where it was at the top of the show coming up, well go live to beijing for the latest on the coronavirus as moodys cuts growth impact for china. And tom lee will break down the moves you need to make a mndore when Worldwide Exchange is back in just a moment. Sales tax, different pos systems in all seven countries. And online sales . Thats a whole other system. And different regulations. Therererealal eate e crits,s,. And we have no way to integrate all that . No. But bdo does. Peopopleho k kno knonow o. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Stocks set to kick off the new trading week with losses the death toll from the coronavirus continues to climb as china tries to reopen for business we are live from beijing and walmart set to report quarterly results. We are previewing those numbers in the second half hour of Worldwide Exchange as we start right now. Welcome back to the show, im brian chu for Dominic Sullivan today. The dow would open down by about 140 and the s p off by about 14 and nasdaq off by 76 taking a look at the bond market, we are seeing a slight down tick, 10year yields right now 1. 544 twoyear yield 1. 397 . Lets look at some of the top stories we are following Frank Holland is here with those. Some auto ynews theyve announced they will wind down sales and operations in australia and new zealand and also plans to exit thailand. In a bid to concentrate on higher Profit Margins like u. S. And china. China accusing u. S. Of hypocrisy over huawei after the embassador to germany said President Trump called and told him to make sure any nation that backs could jeopardize deals weighing new restrictions on china over chip making equipment. The white house is seeking to cut off chinas access to key Semiconductor Technology the move is aimed at slowing tech advancement but has the potential to disrupt supply makers and many u. S. Companies thats a big deal for sure. The latest on the coronaVirus Outbreak there have been 1,900 new cases and more than 98 more people have died bringing the total number of confirmed cases to 73,000 the death toll sits at nearly 1,900 at this stage. Moodys is warning that Economic Growth will slow citing weakened demand moodys has lowered the growth forecast gdp from 5. 8 to 5. 2 owe michelles in macao have announced dozens of casinos will reopen on thursday those facilities have been shut down since early this month. Hundreds of passenger oz a coronavirus striken you cruise ship have arrived back in the u. S. Including 14 people infected they have arrived at military bases in both texas and california the infected passengers will be sent to appropriate locations for continued isolation and care for more on the ongoing impact of the coronavirus, im joined by our guest we talked about the uncertainties here what exactly do we now know about what the real impact will be weeks or months down the line so the chance for controlling this outbreak and confining it to china isnt zero but it is pretty close at this point the number of confirmed cases, as you said, 73,000 in china, most in hubei but distributed to other provinces is probably really a fraction of the cases out there. We are likely to see this spread to other nations our chance of containment are now quite small. What exactly are the next steps either governments are taking or that markets and the economy take for the next step three things well monitor moving forward in terms of monitoring, well watch the number of cases that emerge you mentioned 1,900 new cases. That is fewer p err day than what we had seen before. It is not declining fast enough. The second thing is to watch for cases that have spread to other nations. Are they being contained there so far, yes. As you mentioned with these cruise ships and becoming harder to track, that might change. The third thing people are watching is the fatality the we are heading into unscharted territory this is playing out in some small way. What exactly is in bounds and what is off limits what are governments posed to be able to do and what should they stay away from governments will decide whether this is containment or mitigation i suspect we are very close to where governments decide on mitt indication you may see fewer travel restrictions you will see a lot of limitations in terms of trying to keep down the number of people who are sick. Reducing public gatherings, reducing the number of people who work in crowded places to work from home when people are stick, wash hands, cover your mouth, stay home youll see more restrictions in that regard. Well see a ramp up in preparing hospitals and diagnostic measures so when people get sick, we can reduce the bad outcomes from it there is no doubt, china is the epicenter and has taken the lead on this what exactly is the u. S. s role on this . Is there a leadership role the u. S. Can take in this instance absolutely. There is a delegate sent from the world health organization. The u. S. Has contributed to that team the u. S. Has since 2014 really invested in Global Health security so we have a leadership role to play with other countries. China is a middleincome country. This is taking place in some lesser financial countries watch out for that contributing to w. H. O. Efforts we need other countries to join us with that thank you really appreciate it migrate pleasure. The founder and ceo of Kkm Financial and cnbc contributor jeff, you heard what tom was saying about the impact policy wise, what is going to be the playbook given uncertainties around the coronavirus last week as we sit s p highs, we saw some interesting flows here we are seeing the flows in fixed income last year, we saw 25 billion flow in. What did we see also in flows to equity cats and dogs are living together as we are seeing assets being attracted to the equity market cats and dogs sleeping together but there is no mass hysteria how do you reconcile that . Is this a situation where there is no losing trade at the current moment, the lights are still on. The central bankers. Last year in 2019, we saw 50 of them ease. Once again, we are seeing a lot of liquidity they are trying to offset the potential effects. Our Federal Reserve continues to be accommodative that is illuminating the fact that it is still risk on well see the central bankers get over their skis. The areas getting a little affected well overcome any type of challenge out of this coronavirus outline. We touched on this. Trade tensions between the u. S. And china could be on the rise again. The Trump Administration is reportedly facing companies who use american chip to get a license before applying for 5g with huawei with china that has propertied a strong response does this mean, trade has become variable now certainly seems like we are over the hurdle. We got that phase one deal that really energized the market going into the end of 2019 we had a nice move forward i think this is part of the devil in the details of how it gets implemented the fact that you see areas get attracted we do know china has eased tariffs. They have reason to do so because of the Economic Impact of the coronavirus there does that mean we have on balance still an okay relationship for a phase two down the line . I think that is true. We look to a tug of war sealing out the details. The market is clearly still rejoicing that we have phase one in the rearview mirror. This is walmart now how big of a deal is walmart and a bell weather is it for the consumer here . The surprise of 2019 is how strong the consumer was in the United States. We are looking for earnings to come in 1. 84 that is a big deal if we see a beat on that, the Consumer Sentiment over the holidays really isnt moving that forward walmart, we have to understand that this will set the tone for the consumer for the rest of q1. The rest of your 19 gain, thank you very much. Always a pleasure for getting your thoughts. And coming up, Doug Mcmillon exclusively on sn. Why is tesla ceo calling the microsoft cofounder deelunrwl amming in return more coming up after this break. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. It is already working in citi s like tokyo. 5 43 a. M. Eastern. A live shot of washington, d. C. And the Capitol Building a lot of stuff happening there with regard to policy, taxation, upcoming election. Lets find out what else youll be talking about today with trending stories Frank Holland is back with those. Billionaires battling it out this is a great story. Well get to that first, well start with something that has been in the news a lot choice words for gates he added that he chose to purchase the porsche taquan. Tweeting in response, my conversations with gates had been underwelming to be honest. One billionaire going after another because he didnt buy his car model. Seems trivial to me. People want to get it out there vocally and publicly that, hey, im not into you. Are you into electric cars . Im a believer. I dont own one myself i would buy one if it were a little more affordable that and the charging stations always a question the impact of the coronavirus is being felt in the Entertainment Industry the latest james bond film, no time to die. Has scrapped plans for a chinese premier as many chinese cinemas remain closed. The james bond franchise has seen a lot of success. The last film grossed 84 million. I cannot wait for this movie to come out. I am a bond person i have been since i was a kid. This is presumably Daniel Craigs last outing as james bond you can imagine that bond film lovers will be coming out in droves i was never a big fan people say the redo of casino royal was the greatest of all time sim and sean connery him and daniel craig are up there. Christian bale best batman and daniel craig best 007. We agree. Now to the streaming wars. Red box taking a stab reporting Online Streaming Service through redbox android and ios apps. First tried with redbox instant and then redbox on demand. As a user and customer, i was like, this is news theyve been pitching streaming for a while now. You can go to a kiosk and see the story and certainly on your phone. I dont think the reentry got a lot of attention the redbox model has always been about price competition. It is so much cheaper. You wait a few extra weeks it is 1. 50 to 2, even on demand is 5 or 6 convenience when you can hit your remote and watch a movie. To the streaming wars to chicken sandwich it looks like 2020 may be the year of fish sandwich wars arbys taking a dig at m mcdonalds. They say bluntly stop eating filet of fish and eat our crispy fish sandwich. It is funny when i saw it in trending, i saw the first commercial last night. I saw that it was a mcdonalds filet of fish that got moved out of the way by regular fish and then cheddar fish sandwich it is a massive move this comes ahead of lent a lot of christians, catholic will be giving up meat at least one day. One day i was doing some googling. Why do you have a fish sandwich at a burger place . The whole idea was to boost sales on a friday. Fish sandwich wars, im a little skeptical. I think there are other food wars we can enjoy. I eat a lot of fish during lent in sports, the daytona 500 picking up where it left off on sunday when the race was postponed by rain. Edging out ryan by. 014 there. Like the super bowl of nascar. Also the fourth driver to win in backtoback years that was all very tempered by a scarey crash ryan newman gets bumped and goes spinning into the wall he rolls and flips shocking footage he is in serious condition but doctors say his injuries are not life threatening our prayers and thoughts go out to ryan and his family coming up, apples warning all about china. Thats coming up you can see off 3 and tom lee joins us on set. Well ask him how investors should be thinking about coronavirus, if at all you can watch or listen to us live, on the go, on the cnbc app. Worldwide exchange is back after this [ fastpaced drumming ] [ fastpaced drumming ] welcome back. Thats a live shot of new york city 30 rockefeller center. Hasnt been much of a winter here but still a great shot nonetheless. Time for the executive recap headlines. Apple warning it does not expect to meet quarterly revenue. The company cites delays as a result of the yus outbreak sitting near record highs. Not far from there Dairy Farmers agree to buy dean foods filed for chapter 11 protection in november. The deal must be approved by the Bankruptcy Court and higher bids could come in. Wework has a new ceo as of today. Real estate veteran will work closely with softbank chief and operating chairman to turn around the embattled real estate startup company. Big day at wework. Futures indicate the dow will open down about 120. That is an improvement im joined by tom lee. Cofounder and managing partner at advisors. Lets talk about the way markets have reacted it is amazing we are near record highs, bonds, yields moving lower. There seems to be no real losing trade despite coronavirus. Is it going to continue . I agreeme with you. It is a real surprise. There is a ripple we are seeing with apple i think the reason the u. S. Stocks have been resilient because it represents the Global Safety trade for now, it is a good, bestcase scenario the u. S. Stocks are underweighted globally now people are trying to buy the s p and there is not enough around how could the u. S. Markets be underweighted globally if there has been such a massive move you would think the percent allocation would have risen . I would say based on our conversations with our clients, they were betting on a mean reversion trade that outside the u. S. , stocks are cheap their pes are much lower, people went in expecting a mean reversion trade. Will that play out in 2020 it might eventually play out. Our recommendation was to overweight the u. S the visible Economic Resilience is greater in the u. S. Economic growth has been accelerating plus an election year. Woult the coronavirus, it was nonu. S. Trade developing. That is kind of reversing now. Apple shares pulling back 3 . Nvidia did the same thing. Traders are slhrugging it off. Why . It makes sense to see some impact unless the coronavirus allows the creation of a competitor to apple. Apple is still apple i wouldnt be a seller it makes sense to be shallow is there a thought process it will get resolved it is a question of when when it gets resolved, all of that slow down gets pushed right back to where it was before and even more so for the healthier economies, certainly. When you get slow downs like this, a lot of vulnerable businesses and economies enter Financial Stress i dont think it is like one month, two months and we are in the clear. Your duties involve watching cryptocurrencies as well bitcoin pushing towards 10,000 again. Is this a move that is sustainable. Should people be looking to get into it . I think bitcoin was up 90 last year. I think 2020 should do better. We have the geopolitical risk with the virus i think washington is less focused on crypto this year. Bitcoin back above is really a good sign. Do you have a target for the end of this year we dont. Once you break above 200, the average is around 197 always great to get your thoughts on bitcoin and coronavirus. Good to seeyou. Lets look at the futures now. With err seeing a week that will start with some decline. The nasdaq down by 64. That does it for Worldwide Exchange. Squawk box begins right now. Good morning, dow futures are dropping after apple warns is will miss revenue forecast because of the coronaVirus Outbreak walmart set to report any minute now well bring you numbers and reaction news that former mayor Michael Bloomberg has qualified for the debate tomorrow. It is tuesday, february 18, 2020 squawk box begins right now. Beautifully said. Good morning welcome. Already tuesday. Ill start with that it is not monday we have that going for us. Live from the nasdaq marketsite along with us wilford frost with us hes 67. Movie star good looks and smarts you definitely exaggerated my height there so you exaggerated everything else. What is your actual height . 64,
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