Covid19 throws the banks. It will be harder to hit that in 2020 we see the beginning of a Global Economic impact. Wpp shares plunge after the british media group plunge from a sales slow down and warns that 2020 will be flat despite the Company Delivering a solid set of numbers cfo tells me they are monitoring the situation in china with coronavirus. We dont see a slow down. We see a postponing or delays. We dont see a slow down in growth in china compared to 2019 urs futures pointing to a sharp open a california resident has contracted covid but does not know how the patient constituted. This could be the first time persontoperson transmission occurred in united states. For the first time, more new cases were reported outside china than inside. Norway, pakistan, italy and koran. Croatia, spain and barach also reported new cases looking at the stoxx 600 essentially flat the main benchmark now 1. 8 lower. 2. 2 investors pairing back losses and introducing more stabilization. The number of new cases outside china now outnumbering those inside china clearly driving concern about how far this outbreak will spread lets look at sek torz we are seeing red across every region the dax about 1. 7 lower and in italy remaining the epicenter of the maybe outbreak outside of the asia region the ftse mib 1. 7 . As you can see, red across the board in europe. Let me give you a look at sectors. Red across the board in terms of sectors as well. Those defensive parts of the market much better, resilient performance. Travel and leisure, the clear underperformer a look at the key names and more steep losses for airlines. Easy jet shares down steeper losses earlier on. Investors clearly weighing in for travel stocks. On the back of a warning from booking holdings about how coronavirus will impact q1 sales. Lets get out to matt taylor to look at how the asian markets closed hi there, things are a little better here in asia. The china market is managing to close in positive territory. Often they walk to the beat of their own drug shanghai composite off hang seng off by 0. 3 . We did see a weaker picture. Japan, the underperformer today as we continue to see the spread of the virus outside of china. We are seeing weakness we are seeing continued strengthening of the japanese yen. Not really helping the market. Take a look at south korea this is a focal point. We are expecting a cut where we had a surprise that was ready the kospi weaker by about 1 most out there in the market were tipping that 25 basis point cut to bring rates to a low. Halting it one more time to see the impact of the virus. Back to you. Thank you for running us through those details. Standard charter reported a 26 rise but missed the forecast the firm said it would take longer to achieve the target thanks to the impact of coronavirus and weakness in hong kong ceo bill winters explained how the bank achieved the time line. Our Income Growth target was 5 to 7 it will be harder to hit that in 2020 given the impact. What the exact impact is, very difficult to tell. People have been revising their forecast as we can see outbreaks in different parts of the world. We see the beginning of a Global Economic impact. Very difficult to estimate we had a good start to the year. Up until today, weve had a good start. We are happy with that we can see the impact is going to kick in in march to april and may. Well see whether it extends to the second half of the year. The discussion comes in now there was a discussion in g 20 that more global measures would be required. What weve seen is a sweep of infection rates across the globe. Youd have to assume there is some sort of response. That has the potential to depress Profit Margins it does Interest Rates are very, very low. Thats an extraordinary low level and more than we expected a year ago thats what is necessary right now to make sure the markets continue to function it isity right action for banks to be taking if Interest Rates remain at a low level, it remains lower. That means we have to focus on other things we need to do i think weve demonstrated things we can manage our expenses and capital. Third, we can grow income in a number of cases. Including in hong kong and china. We are growing income. We have levers we can pull if things turn out different. Bringing you fresh news around the uk. Two further patients have tested positive for coronavirus which was passed on in italy this brings the total number of cases in the uk to 15 of coronavirus. These are fresh details coming out now. We will bring you more information. They have been able to link these back to italy. These two new cases reported back so in the uk, the number stands at 15. Bringing you information around the bank space. Bringing in our guest to weigh in from Standard Charter we heard from bill winters this morning. Saying coronavirus and hong kong head winds expected to be transtorry but it will take longer to see targets. Shares are down this morning what do you pin that weakness to i think the miss was there. The small miss the reaction in asia is not that bad. I think investors are really scared we do agree with mr. Winters we see this as a buying opportunity. Another bank with exposure to asia is cheap. The reality is, unfortunately, weve been asking companies for a couple of weeks, what will be the impact of coronavirus. The profit warnings we are hearing today, yesterday and the last few days are the first signs that the company are giving to investors about the impact of coronavirus. It is very irly stages for us to model and understand the impact. What does that mean if you are looking at the sector. Do you weight and just see how this pans out or do you buy the dip . How do you gauge the timing of this i dont do market timing. We are Value Investors when you see a bank like Standard Charter which is down 30 for the year it is already on your Shopping List why you should stop buying. The problem is that we think is a very bad strain of flu so by Summer Season should be lower or taper off there should be hesitations. We understand the ebs and flow the real problem, we start the year with a very expensive market our reaction before the virus was moving to cash we have a lot of cash parked our perception is that the market was exactly taken on too much risk for the level of pricing for the market thats the first problem the second is you want to stay safe at this point in time we are looking at banks in which we find the stable business. When you go to the investor companies, much more leverage and refinancing. Maybe one of two quarters will have the impact. Theyll have a lot of impact with a lot of leverage you look at the fundamentals today. Are they controlling costs in a way that you see is appropriate. Do you think that they are building a business that will be sustainable markable and successful i think with cost will be a good news. So the efficiency of cost and income across all the board and business, they put a lot of emphasis during the presentation this is a good sign that the bank is a result of a turnaround, the fiveyear turn around results are coming out of this so longer term are happy they are accepting the growth target a bit further in future all the banks are doing this investors are prepared to accept this news. Across the board, do you think that cost control is working . Is it happening enough and is it working to their advantage i think it is look at italy. We had a lot of problem with coast control. Employees are more protected than others but it is working. The government has given a little help in terms of Pension Reforms to offer employees a kind of indirect incentive to leave early. So that is working also in italy. It is very good sign for the government thank you for sharing your thoughts with us lets turn to bayer who post posted profit rise on 10 . It is facing lawsuits on claims the weed killing causes cancer plaintiffs have grown from 43,000 to almost 53,000. Bayer has been a remarkable story. Con sue magt the con sue matingy tan toe case the ceo stays in place now for investors, the question is what kind of pressure is he facing and how close is bayer to finding the settlement what will the ultimate cost be to these thousands of cases of roundup. The size of that settlement continues to grow and gets more and more difficult for analysts to predict how big it will be in the end. Interesting, the chairman stepping down. In a sense, it is a type of House Cleaning does that do enough for investors to rebuild confidence that company is moving past this i think the confidence is crucial here working backwards for certain Share Holders. If they are unable to get share prices further there is the idea of agro and pharma coming up, warning of a challenging environment in china. That is coming up after this break. 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 welcome back lafargeholcim has posted a rose and posted of a challenging environment in china our colleague joins us live from the Swiss Stock Exchange these look like strong results but not all areas seem to be delivering absolutely. In terms of what theyve achieved here. Theyve beaten all their targets. This has become a strong net income number. There are areas that still need a little additional work europe has been fine, u. S. Has been fine. Latin america has been soft with weakening in the u. S. And africa china is the story everybody is focused on when i spoke to the cfo, those were the questions what would be the impact of coronavirus and is there already some impact from Slower Growth trends we dont see any slow down. We see a postponing, we see delays we dont see a growth compared to 2019. In terms of current supply into the chinese market, do you see coronavirus having some meaningful impact . Meaningful impact, i would not say that because q1 is a low quarter anyway if we assume it is happening in may, it might have some postponing or impacting. This is difficult to predict very complicated to predict at this stage that seems to be a critical issue. Youve delivered and overdelivered. As you look for the 2020 targets, youve set out. How much visibility do you have given when you are talking about an early stage globally. With regard the earnings of 2020, it is very much too difficult to predict on the results. We should first recognize we have now with our 2019 results achieved a new level of performance. We have achieved a new level of organization, a new structure of cost that is leaner. All of this is put in place. We have a new operating model with a new level of debt ongoing cash generations is set for 40 . Yes, we are getting there. It is done this is a new level of financial performance. We are going to continue to perform. About the return, we are driving constantly the increase of profitability. Yes, look at what we achieved. We gained and are above our Market Capital we want to achieve that as soon as we can. Youve done a terrific job bringing down the net debt in the business this brings that down, given that youve got there and overachieved on the target you set for yourself, what does that mean do you see scope now for more m a and acquisitions in 2020 we have reached a leverage of 1. 4 times. This is a new level of financial strength we have executed on the pillar strategy and in a record time. If you think of 2017, we were one time higher so yes, we will continue the bottom and continue with what makes sense. There you go. Let me wrap up the European Business was good for 2019 and continuing for being okay for 2020 i want to focus for a moment on the uk the uk was a bit of an issue and perhaps from the construction delays that is back and is beginning to show better trends interesting to make that point as we wait and watch to see what will happen in these negotiations back to you guys in the studio i want to bring you some flashes from the Norway Wealth fund ceo managing assets of 1. 1 trillion. Massively important. Saying the risk posed by coronavirus is hard to analyze, difficult to act on this we are just observing. He said this is not an opportunity to be Counter Cyclical we do not see an opportunity to act. These are very long term investors and investments. Interesting comments coming up on the show, the drinks tur sour. Ab inbev warns of more losses ahead. With sofi, get your credit cards right by consolidating your Credit Card Debt into one monthly payment. And get your Interest Rate right so you can save big. Get a nofee personal loan up to 100k. Welcome to street signs. European equities sink deeper to the red after the u. S. Identifies the first unexplained transmission of coronavirus in america. The number of uk cases rises to 15 Standard Charter posts a 26 jump saying the unrest in hong kong and outbreak throws the bank key time lines into question our Income Growth target is 5 to 7 . It is going to be hard tore hit that in 2020 we see the beginning of a Global Economic impact rather than a China Hong Kong impact. Ab inbev warns and the drinks giant misses expectations and makes a cautious forecast for 2020 wpp shares plunge after the british media group posts slow down but does not show the extent of the virus impact. European markets have been trading about an hour and a half every region below the flat line we have bounced off the lows hit this morning we have a higher number of new cases being reported outside of china compared to within china we had confirmation that two new cases have been confirmed in the uk bringing the total number of cases here in the uk to 15 very closely watching other European Countries this morning. Crucially in the uk, those two cases have been linked back to italy. Italian markets trading down 1. 6. Italy remains the epicenter of the virus in europe. Stronger bid for the japanese. The pound a touch stronger versus the dollar around the 1. 29 mark. Looking at the futures. The dow posting the fifth negative session in the low. Now looking at those futures we are looking at future trade in wall street relative to what weve seen earlier in the week. You mentioned the uk cases. Switzerland authorities have announced, the total number there has risen to four. Germany bracing itself for a rise after a couple there tested positive the German Health minister said the country should prepare for an outbreak. Translator we are at the beginning of an epidemic in germany, the latest cases are a further sign of this the strains are virtually untraceable. It is questionable whether our previous strategy will continue to work. Im becoming more and more convinced that the probability that this outbreak will pass germany by will not occur. Ive asked the Health Ministers of the german states today to update the countrys existing pandemic plans and prepare for a possible implementation. Companies expect the coronavirus to impact earnings Standard Charter warned it will no longer meet its return of the target by 10 next year. Drinks maker ab inbev says this will take out 10 of profits and diageo says it will hit millions danone and others state. Lufthansa have cut costs riotinto expects disruptions peugeot says all will be affected i understand part of your job is to help companies with ties to the region decide how to adjust business to the response and other incidents in that region what have you been seeing about adjusting supply chains and getting their factories in order. We issued the white paper to assess how Many Companies are impacted we have seen 51,000 companies sourced from the region in china. We looked at the tourist how Many Companies have a supplier you who have a supplier from china we are working on the update more regions are being impacted. There is a small town in northern italy, 15,000 people. Not very big but that small town in italy, hosts a manufacturer that supplies the likes of peugeot, renault, bmw given the nature of the virus and how it has spread, from a supply chain perspective how are you advising clients to deal with supply chains. I know you had a great chart showing alternative supply options how are they predicting this unpredictable nature . Those companies that knew about it having the advantage. Our customers are forced to map the supply chain risks are elevated they were elevated because of trade wars and protectionism now it is even more critical to know who your suppliers are and where they are sourcing from you cant rely on Different Companies to switch suppliers. That comes at a cost if you are prepared, it is easier for you the uk will hit the next supply chain year after year. The uk companies should look into that regardless of how coronavirus develops if you had imagined a graph and then on the other access, the economic impact, how significant is the outbreak . Is it an increase . Is it something you can see a Straight Line core relation . It is an upward trend the longer that crisis continues, the trickier it will get for companies to keep supply chains that will take four to five weeks until the container arrives in the port. Did will be increasingly difficult especially if that situation in italy spreads, possibly impacting milan, the Financial Hub of the country things are deteriorated. Wevedown gra weve downgraded china, singapore, japan, hong kong, italy. Weve revised gdp. It is very difficult for companies. Thousands of people being killed by this virus you talk about a downgrade for projections. 1 globally . Could it get far worse that is a question for biologists we are adjusting that we are looking into australia. There are huge risks because it is a commodity exporter. The longer the situation continues, the bigger the risk some countries are already struggling germany stagnated. Japan contracted more than 6 . Posted the weakest growth in years. And on top of that, you get the krugs. Several countries including japan and italy are at risk. Looking at your notes, over 90 of businesses with direct impact are headquartered in the united states. So the u. S. Is vulnerable. Mexico is a viable alternative for a lot of the key supply chains here. How much does mexico stand to gain if you could switch the players quickly, mexico would be an option especially based in the u. S. Because of geography. But we have the problem of the trade wars overall, the u. S. Is impacted by the coronavirus outbreak in china now spreading to south korea and italy. More and more countries are impacted and growth will be slashed. Thank you for being with Us Marriott International says the coronavirus will drive the fee down as this disrupts travel and occupancy rates. The impact cannot be estimated echoed by booking holdings which released a lower than expected guidance for q1. Apple putting out production by travel restrictions they say quarantines and factory shut downs at key partners such as foxconn means that iphone production is halter for the time being we have more details reporter a big issue for investors is the coronavirus outbreak and how that is affecting Business Apple had to about draw guidance for the quarter and how it is affecting stores and factories Share Holders didnt ask about that he ultimately believes that out break will be short term tim cook says it will remain a dynamic situation. We do know now apple has reopened 34 of 42 stores seven nominees to the board were approved ernst and young was ratified the share holder proposals were not approved we will be speaking to mopot they said it will miss Third Quarter revenue. Applying to personal computing unity responsible for windows operating system microsoft says they are returning to normal at a slower pace than anticipated. We are watching some live pictures of mark carney speaking his new portfolio will be toe kw focused on cliechl at change hes saying, given the scare of rising climates, 2020 must be a year of action where everybody is in. That includes the worlds leading financial center, quote, to manage associated risk. Disclosures of climate risk must become comprehensive Climate Risk Management must become informed and go mainstream weve seen that to some extend with announcements from firms like black rock. It will be interesting to see if other investors follow suit closely. Also Central Banks and their review of the framework. They are going to take Climate Change into consideration deciding how much they want to weigh in to steer the debate it is not universally clear as to how involved Central Banks should be in this. This is mark carney speaking at the agenda event talking about importance of Climate Change policies hearing that Central Banks need to devote attention as we were talking about. Well take a quick break now. Coming up, a tough ride for as continue martin as the carmaker losses deepen and the cfo announces he is stepping down. The numbers after the break. 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. Weve been monitoring a press conference in rome with the Italian Health minister. Talking about the fact that patients are recovering in italy at the moment. Hes warning to listen only to the government and not to spread false information. That is a big concern at the moment, trying to avoid creating panic but clearly the lockdown in northern italy is of great concern to businesses and people in that region well continue to monitor that lets get back to Corporate News this morning wpp shares are lower after the advertiser reported. Targeting a flat 2020 and warned guidance on the year ahead without impact to the outbreak remaining the share. Aston martin announces the departure of its leader. It suffered some disruption due to the coronavirus outbreak but expects supply to be secured at least until march. Ab inbev has received a greater than expected drop falling 5. 5 against the Market Forecast of a 1. 9 drop. The Senior Research analyst joins us now in the studio what is this company doing wrong in your view they are struggling with growth a year ago, the market was obsessed about the debt. That debt is coming down another challenges growth. Many other key markets with key latin american markets like brazil are drulging they have a exposure. That doesnt make it easy you have profits coming from emerging markets all of these put pressure on the top line and also on costs i was looking through results. The u. S. Stood out to me that seems to be due to the rise in popularity of hard seltzer. In your view, is this a trend here to stay is it going to sprend to other markets . I think it is hire to stay. A lot of that is driven by a carb obsession is in the u. S. But less important in other countries. When you look at the share price against other markets, it is not done as well. The 2. 5 organic growth, heineken was posting 5. 5 until that happens, it is probably dead money. Of course coronavirus is largely in to focus. Has this changed your view for 2020 for 2020, yes weve seen this in the market with sars. If you look to 2021, it doesnt really have an impact. But short term, it is going to hurt a brief flash here from french president saying, we have in front of us a crisis, an epidemic on the way. Going back to ab inbev, they have a big presence in china they have a huge facility in wuhan itself they are warning about 170 million in lost profits. How much worse do you think this could be for their sales and market share if facilities are depending on wuhan wuhan is one of many breweries in china they can pick up production from other breweries. Wuhan itself is not significant problem. At a group level, it is relatively manageable. The bigger threat is as the virus has already spread to south korea. Thats another 2 perce of profs thank you for being with us from european beverages. Lets take a look at the heat map we are now about two hours into the european trading session the main benchmark is 1. 8 lower following stabilization yesterday proving short lived as investors weigh up the outbreak turning into a pull blown pandemic we are seeing red across the region ftse mib down 1. 9 ftse 100 down 1. 7 this morning. Confirmation the total tally for the uk now stands at 15 with two new cases being confirmed this morning. Looking at u. S. Futures. We are in a negative trade the dow looking at 182point drop on pace for the worse week since 2008 thats it for the show thank you for watching. Worldwide exchange is up next. Good morning oh no, here comes the neighbor probably to brag about how amazing his Xfinity Customer Service is. Im mike, im so busy. Good thing xfinity has twohour appointment windows. They have night and weekend appointments too. Hes here. Bill . Karolyn . Nope no, just a couple of rocks. Download the my account app to manage your appointments making todays Xfinity Customer Service simple, easy, awesome. Ill pass. Markets in turmoil the dow on pace for the worse week since the great financial crisis as pandemic fears over the coronavirus continue to spread as of now, every continent except antarctica have cases of the viruss President Trump taken to the podium to ease concerns of the disease. I think the stock market will recover. The economy is ver