Quarantine as the virus continues to spread further into europ europe the biggest buyout in europe since 2007 you can see entirely red as this selloff continues from the u. S. To asia and europe this morning. Lets look at the individual markets to see the losses. You can see the ftse 100 down. 4. 25 down in germany the cac down 3. 8 . Italy more than 3 lower lets look at individual sectors to see travel and leisure down almost 5 basic resources. Places like china are selling off. Technology stocks are down more than 4. 5 . In the u. S. , we saw extraordinary circumstances. Closing 4. 4 4. 6 for the nasdaq these were extraordinary times one of the fastest in history. If we look at the volatility across the markets you are seeing the vix five points higher. Coming from wednesday, rising through that period. If we look ahead through that days trading. You can see all three of mothos major markets. The dow jones currently with an expected open down more than 600 points one of the reasons investors are getting concerned. Saying it would be a, quote, fatal mistake for countries to assume they wont be affected. Calling for action in a bid to prevent further infection. It is not a time for year. Germany ga germany gau germany quarantined a town where 14 people came down with the virus. It takes the total number to 20. Total number in the country of germany to around 40 the number of confirmed coronavirus cases has topped 82,000 world wide with cases outside china now accounting for three quarters of new infections nigeria has reported the first cases and iran, south korea and italy still continuing to rise the head of Chinas Health hailed the governments efforts there and forecast that virus would be contained by spring translator the situation overseas has changed and we need to Pay Attention to it however china is necessary because it was discovered in china. We predict it will be controlled by the end of april at the latest we made the prediction because of the strong measures taken by the government and the mass participation. Im joined now by Inspector General of chamber of commerce and let me start with you, this started in china, we dont yet have hard data we should get some this weekend. How much information do you think those pmi numbers will come out and what this has meant for businesses on the ground this is the first set of leading indicators the first signal of how much disruption this meant for the Economic Activity in china i would expect to see not a very good number. Economists were looking to the extent of production any Economic Activity could be disrupted. From the Lunar New Year to the whole month of february around the likelihood of continued disruptions would have remained. This set of data is important. Given the market conditions, maybe people will be looking for this to become the official disruptions will mean further policy action. We have seen a lot over how historic these market moves have been this period of time since this virus broke out, how does it say what is different over the last five or six weeks over previous periods of unrest. Certainly, people will see this compared to sars. I would say the extent of disruption would be beyond sars. Not only have we seen or been ready for the slow down. Also the impact china has for the rest of the economy is much greater compared to 2002, 2003 i would really compare the Market Reaction to the crisis. The actual fundamental disruptions will be even greater because it is not only a demand size shock the disruption to china and Economic Growth will be yet to be seen. I think people have been under estimated the impact people thought this would be china focused or asia focused but this is likely to be a globalfocused story we know a little about the Economic Impact on china which sectors globally will be the most affected by this . About the role of china particularly the global economy. It has doubled you are seeing the spread. It is also responsible for 40 of Global Growth in terms of sectors around supply chain manufacturing we are seeing disruption around areas like trade transaction and finance because people are not in the office to process transactions we were talking about Food Production risks chinese farmers getting to the consumers as an issue. Markets are not available. There are interesting impacts here around acceleration in e commerce we saw this in 2008. The consumer patterns dramatically changed in that period and already happening with other pressures around Climate Change and will this accelerate in the future will be something to watch. You represent one of the largest business groups in the world. It is clear sectors like auto, tech and manufacturing will be affected like this geographically, where are your members expressing the pain is the worst . I think you are seeing that it is the same areas the big concern is china thats where the biggest impact is by far and around the asia region we are starting to see impacts in europe. Financial services with the cities being impacted there. We are watching it closely First Priority has to be around containment. Longer term, this is not the first Health Crisis weve had of this kind of nature. What more do we need to do to build resilience to react faster and quicker. They will happen globalization will not go away we are highly connected. Every single continent was touched within a week of the outbreak that says a lot about the movements and interaction and relationships are. What do we need to do to get those dealt with whether food standards or welfare standards and building mechanisms not just from the government but the private sector there too you mention the government. Others stepping up saying they will support industry in their country. Is that something your members would like to see across the economy, do they have specific ideas about how it would work . Is it funds . Is it physical support providing delayed payments it is hard to say businesses will welcome support from governments there is an interesting survey from the chinese that run out of cash within a month. The Small Company level, supply chains are operating on small margins. Support will be a priority that will be a welcome and have some support that is required will be important if we are going to stem the decline in profits and losses and everything else. Thank you the chief china economists from icb in china will stay with us going to emily in hong kong. What are we seeing through the course of the day then a dismal day as we wrap up the day in trade following losses in the u. S. The biggest oneday loss in history for u. S. Putting them all in connection territory. We have a number of asian markets also in correction the nikkei, the kospi, hang seng, asx 200, singapore, thai all in correction following the big tumble the nikkei 225 falling it did come through at 21,000. The shenzhen composite with a pull back. Shanghai co shangh shanghai composite down. In korea falling over 2,000 putting it at a sixmonth low as the number of cases in korea or outside of china jumping more than the number of cases confirmed in china that sending jitters through the asian market hong kong market, we are at correction territory, down about 2. 5 on the day. 26,129 all in latest reaction to the coronavirus outbreak i got a chance to sit down with the secretary today and asked him whether or not the losses in the market is an overreaction. This is what he had to say the outbreak of the coronavirus caught everybody by surprise initially in china but now the situation in china seem to have been contained but somehow this spread, so Going Forward in terms of supply chain and Consumer Spending may be affected. In hong kong, we have been trying very hard to fight this disease. Our economy has been hard hit. Thats why there have been measures to stimulate and relief the burden on our people you released the budget it will take a few months for the applications to be ready it will be summer before the funds actually reach hong kong residents. There is a percentage of the 7 million residents that dont live in hong kong and wont be spending to stimulate the economy. What do you say to those the Immigration Department when they maintain the record of hong kong holders, they do not distinguish whether these people are living in hong kong, overseas or neighboring cities if we are going to insure tut measures to try to find out, to address administratively, that may have an impact and getting the money to the hands of the people thats why this time, lets dont make such an extension and encourage people to come back and visit their friends and spend their money there. We have been hearing the feedback from the people this is something that perhaps we may look further into it. The initial thinking put it this way, the overriding objective is to implement the system as quickly as possible. The Hong Kong Financial secretary issuing a monitor stimulus package with 120 billion and 60 billion from last year to help hong kong get through the social incidents we have been enduring the last nine months coupled with the coronavirus outbreak these many packages together should help to stimulate the economy and should help boost gdp by as much as 3 the forecast this year is a decline between 1. 5 gdp to a growth of half a percent if a stimulus works, we should see growth it will take some time for cash to be handed out to residents. In this time, well be watching closely to see what happens. The hang seng closing out at 26,129 in a very down day across asia thank you coming up on this show, coronavirus fears are crippling plans for commodities. Now taking significant steps to stem the price slump please stay with us. 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Welcome back we are continuing to monitor the latest reactions we have some now from the swiss government banning any event larger than 1,000 people saying smaller events across the country need to seek approval in individual regions before they can proceed. All largescale events look to expand because of the spread elsewhere, saudi arabia looking for cuts scrambling to stem the slump in oil prices officials from kuwait, uae and russia looking to cut the production prices on track for the biggest weekly drop when you are looking at oil in more than four years if we look at the price elsewhere in the commodities sector, you can see it has bounced back over the last few days and weeks to talk about that, im happy to say we are joined by an analyst. Tyler, let me ask you about what is going on here weve heard so much about lower Consumer Spending, what is the demand side for materials like iron ore look like there there has been a real shift following the impact and the shout down has caused the demand side to fall we are looking at the lower levels as china starts to get back to work now you cant shut down the blast furnace. They need to shut down the steel. We are seeing a build up of steel inventories. We would expect them to continue to build so this pushes profitability down this would like to drag down demand which is why we are concerned about prices what can authorities in beijing do to convene. What we are seeing is realizing that we are moving back towards more normal activity and have more down side than having lockdowns for extended periods of time at least for the economies sake underlying changes you see will take some time to come through our other concern is that china consumed a billion tons of steel last year, china is consuming a bit more than maybe they should be at this point of their Economic Growth. With potential hits to confidence and backfilling, there will be more work to do in the second half. If you are working on a construction site in china, that construction will halt as the quarantine measures, travel restrictions in china will loosen as the numbers start to look more positive because they are dying and getting infected do you have the insight and ability of workers to get into work according to what it looks like clearly from the production side, a lot of the labor forces dependent on Migrant Workers this is the key, they are told not to return to work and places in cities and prolong their Lunar New Year holidays. The shut down of transportation also impacted that figures are showing, s. O. E. , state owned enterprises are getting back to work others like sme, smaller private sectors are getting back to full production probably Migrant Workers not being able to get back to work and some even put off by the current situation. The longer the prolonged period impacts the economy and the spill over on the economy, the more likely the Migrant Workers look elsewhere for work. Looking for Digital Technology and work this is why my biggest concern is on unemployment if tomorrows pmi data shows the unemployment sub index showing signs of people getting back to work and layoffs happening, this will cause panic in china and boost further thought about how else will we ensure unemployment doesnt happen at a big scale. The last couple of days because of the way markets have priced in the last cut that has been incredibly strong in recent history, what has that meant and what could it mean if that continues to weaken that would be a saving grace here from what we can gather, it has been a move in positioning around the euro in a large part. We have seen emerging currencies where a lot of these have been falling. There has been an offset there a weaker dollar would help in terms of cost. And putting less pressure on them a large majority of the consumption. Coming up on the show, in the midst of a global selloff, well see what would be the largest buyout this year more after this break. [ ] think you need to buy expensive skincare products to see dramatic results . Try olay skin care. Just one jar of microsculpting cream has the hydrating power of 5 jars of a prestige cream, which helps plump skin cells and visibly smooth wrinkles. While new olay retinol24. Provides visibly smoother, brighter skin. For dramatic skincare results, try olay. And now receive 25 off your purchase at olay. Com brand power. Helping you buy better. Welcome back to street signs. Continental correction the stoxx 600 continues the selloff as the dow plunges and markets head for the worse week since the financial crisis travel and leisure stocks lead the decline after it issued a profit warning the dollar continues to slide as investors pile into the yen and money markets put pressure on the fed and price in at least three rate cuts for 2020 a german town faces quarantine switzerland bans large events as the virus spreads into europe. You can see the selloff, the dax more than 5 down. Ftse mib approaching a 4 drop the euro is stronger against the dollar you can see the dollar weakness here weaker against the yen and bound looking to the swiss frank and the yen. More from number 10 downing street in london about walking away if we look at u. S. Futures, really significant to see quite how much it looks like the dow will be opening lower after those extraordinarily few days of drops there already one of our major stories here is is that Thyssenkrupp Group will sell the elevator unit for 17. 2 billion euros highlighting the growing buying power. Joining us live from frankfurt we knew this was coming. We didnt know how big this deal would be it was a rumor that it would be the biggest deal from europe. I guess still from the upside as kwef seen rally 5 that positive news in the short term because they will turn down the debt pile. They have at least 16 euro of bet that needs to be trimmed down they have not enough equity and cash flow. We see thyssenkrupp as a huge restructuring case this he were trying the strategies in recent years last year, they tried to merge their steel business this didnt get through approval this was a big hit to the overall strategy we have the management overhaul and the new ceo is trying to concentrate thyssenkrupp back to its roots to the steel that can be sold off apart from the steel business the elevator unit could attract so much interest industry groups, there is criticism that in the end, private equity got the deal done and not the finish elevator maker, which would have made perfect sense but rumors are suggesting or sources are suggesting that this deal didnt come through because there might be regulatory hurdles to overcome and thyssenkrupp needs cash now they dont want to wait. What is next, they will see more as asset sales from them. We are seeing an end of an era short term, it is positive that they are getting that deal done with a higher than expected price tag. Back to you. Lets switch back to asia as the Global Market continues to sell off. Im happy to say more now with what happened in japan in particular. The nikkei index down as the selloff continued amid heightened coronavirus fears following an overnight plunge in the u. S. Market hitting a sixmonth low slicing 10 off the index. Investors piled into the yen against the dollar driving the japanese currency up 1 . Japanese Prime Minister abe took drastic action to contain the outbreak announcing the closure of all Public Schools starting next monday. This has triggered panic amid working parents as they scramble to find child care or ways to work from home abe said this was motivated as well to keep the 2020 olympics this summer on track tokyo disney parks operator announced that tokyo disney and sea will close in march along with the request to not hold big events for two weeks the first time the parks closed since 2011 after the massive tsunami and earthquake hit japan. It seems there will be Significant Impact felt in the days ahead back to you. Thank you so much u. S. Markets have undergone corrections 26 times before this week those have averaged 13. 7 in declines over a period of four months and required another four months to recover. The chief Investment Officer is quite positive about the potential for the markets to recover in that time frame if you take a view from where we are, i dont see the trend between buying at 1. 27 or buying the blue chip stock even if that was to go to 1 , it might go you may point to 2 return you get that on the deaf dend stock. That also means buy backs. It is also one rate done by corporates as well the only earnings that would come through would end up doing better where do you buy equity and bond return of course you are not going to get it you would deal with the volatility there are various things to look at taking years to research for hiv and then sars. One will come through. You will see signs of coordination on a government level coming up now. How unusual is the current combination on the market . Gold rising slightly. Youve seen three days below the treasury youve got these massive plunges how does this compare to the combination of factors then . What this means for u. S. Election if coronavirus is to get worse, you can imagine Sanders Campaign lets say that insurance rises and on the other side, he will play for china his whole plan is Free Health Care for everyone. You say that, the economist making the point talking about the idea that if this virus spreads. If people without insurance cant afford to be tested or treated, for the reaction for people to know how well it will go we are saying that could be a scenario many are working out. Youve seen a containment in china that is working well talking about the fed and money markets pricing in the possibility of a rate cut in march. Will the fed cooperate or worry about the rate cuts at the end of the year . This is about sentiment you do everything to shore up the confidence in the market that leads to the second round and third round that would be worse. They will go ahead and do it this was clear, you had this in 2010, 2011 you had correction q2, q3 i think you will get the fed to act again. Thank you for being with us this morning the chief Investment Officer the owner of British Airway iag says it cannot offer any guidance for the year but does expect to take a hit the canceled rules to china will impact growth and likely to cut shorthaul flights to europe implementing the costcutting measures operating at 6 , due in part to a pilots strike rolls royce offering a loss due to the loss of the trent 1,000 engine also flagged the coronavirus and called it a macrorisk that will impact air travel in return. The German Company said the virus heightened uncertainty munich renet profit on the back of major catastrophes we saw around the world but still beat estimates. A key metric in that Insurance Business jumped 5 to 12. 5 billion euros sayings saying it is on track to meet profits in 2020. Facebook will cancel the conference that attracted 5,000 people last year scheduled to be held may 5 and 6 in california microsoft still scheduled to hold its own conference in may but has withdrawn from a gaming conference for next month. Air b b, the home sharing market potential candidate is looking to expand its offerings. My colleague has more details. Coronavirus could impact more anticipated ipos. Air b b raises fears the global footprint has grown to 7 million listings in 2 million countries. 2 Million People on average stay in air b bs each night. In a statement, the 31 billion startup is focusing on how to best support stake holders shares of potential comps, comparable companies, have slid 20 and 40 over the last week as they face cancellations and weigh the future impact. All of this does not bode well for the ipo. Companies want to inject more certainty and put their best forward. That is looking increasingly difficult. Noting that valuations have contracted that will impact the calculus for air b b. Discussing large and other plans being put on ice doordash says it can wait in the wings as long as it wants or that it needs to raise capital coming on the show, Christine Lagarde plays down fears and says the infection is being monitored carefully. Well have more about that after this break welcome back to street signs. We are continuing to cover and monitor government responses to the coronavirus outbreak we have a statement now from the chief medical officer here in england saying there are two new cases of covid19 passed on from iran they are being treated in london and we have a confirmed case in wales bringing the total across the uk to 19 with 17 of those cases here in england. The dow jones looking to open 600 points down after several days of extraordinary losses others looking to open soft. Ecb leader Christine Lagarde said the ecb is monitoring the outbreak carefully and will determine whether it will cause a longlasting shock fears are calling for the fed to step in. A look at how soon that might happen pressure is growing on jay powell to react. Coming from former fed officials, the president of course and especially markets. Markets are pressing in a 68 of a rate cut as soon as march. A second cut now priced in with a 66 probability for june and a third cut with a 53 probability for september. Saying she was concerned about a recession but that was not her base case. Calling for immediate coordinated global rate cuts he said the reserve should lead the world to take immediate action the window to mitigate effects remain open but not for long speaking in mexico city today saying it would be premature to give any guidance on policy until it has more data it added that unless it is something it sees for adjustment, it will be required for the need jay powell faces a series of daunting places and whether cuts would do good at the moment in a supply cut to china. Saying the chief Investment Officer is with me here. We are talking about what the coronavirus outbreak could mean for the u. S. Talking about the campaign, the man that supports the universal health care. Weve heard from the president this morning talking about his efforts to stem the outbreak in the United States and he still feels hes being blamed for the fact that it has spread there. Does this become a huge political football in countries like the u. S. . Is that helpful when you are an investor looking at the situation . We shouldnt be surprised i dont think europe will fall down the same line hes worried this will affect his chances. Sanders is getting ahead in the poll his policy is antifracing and Free Health Care that is going to be seen as very antimarket. America has a history of fighting communism either you will have democrats come around and seen that with sanders becoming president it is too early to say you never discount when you do investment, you think in terms of probability. When the debate comes in, trump will look back at things in russia and all that he played that i wouldnt be too worried. Of course, the picture and everything, when you have the conversation, the millennials exit poll said 37 , 38 wouldnt mind or rather like. I think that is worrying i do have a sense maybe in coming years, america will have a bout of socialism to get rid of this thought. Given the height and the size of their yield now how are you positioning yourself around this outbreak you have a space for a bond and you need to buy. If you buy u. S. Treasury and the government has told you, they will be basing the government. Lending the government on 2 per year my view, you buy u. S. Stock. It is not. This is a global one you have seen the picture on the screen it would never work. It was at that time the president that stepped up. I dont think rate cut is one of the means. It has to be government response and coming together using fiscal response, if need be it is a confidencebuilding measure. It is far less even in america, those numbers are higher there is a perception that those could go bigger. You had a good rally that gives you another reason. You had election and it seems sanders could be the nominee by next tuesday i dont think it is just about virus. Thank you so much chief Investment Officer when you look at the markets in the u. S. , they are back to early levels they had hit back in october. Lets take a look at the markets in europe. A lot in red down 4 at this stage. If you look at the individual indices, you can see where that pain is being felt the most. It looks like germany is down 4. 5 still down 4 . Similar story in paris the ftse mib is down 3. 4 . You can see all of those trading well into the red this morning we look at u. S. Futures, you can see a very negative start to the day. Thats it for todays show, Worldwide Exchange is up next. A Global Market route. Markets suffering the biggest loss ever. Stocks on track for the worse week since 2008 financial crisis it is february 28, 2020, friday. Worldwide exchange begins right now. Good morning welcome to the show. Joining me on set for th