Affect business and Consumer Sentiment and Investor Sentiment. A chorus of asian bankers saying theyll take action and the bank of china also places easing china sectors and auto sales plummet. U. S. Futures turn higher after joe biden takes texas. California is still too close to call as the former Vice President gets into the super tuesday spirit it is a good night and seems to be getting even better. They dont call it super tuesday for nothing. We have a very busy show talking about everything from super tuesday from that surprise rate cut for the month of february, we have the final Services Numbers that came in at 52. 6 versus the flash estimate of 52. 8 the final Services Number lower than the estimate. As for the composite number for february, 51. 6 this data is now beginning to look outdated given the extent of the slow down given manufacturing and supply chain and coronavirus. The impact will show up in march. Worth baring in mind that we did fleetingly start to see European Data mod rate. That is going to change. European markets have been trading for about an hour now. After the feds rate cut failed to stem declines and asian stocks closed out a mixed session. Sector wise, no clear trend emerging first, lets take note of what we actually saw from the fed the central bank slashed key lending rate to a 1. 125 saying the coronavirus outbreak possesses evolving risk and the lower rate will help to maintain maximum employment and price stability. The president of the cleveland fed was speaking to cnbc earlier this morning and was asked if a rate cut is the right way to tackle the coronavirus outbreak it is an evolving situation once the virus got to u. S. Soil, we saw a lot of businesses pulling back on travel, people limiting social interpretations, certainly the markets are reevaluating their forecast. It is a rapidly developing situation. Things happen quickly. The uncertainty around it was something we took into account when thinking about the outlook going forward. Usually when we see the volatility over the markets, what Central Banks do, they make sure they have enough funding so that there is an orderly function you ensure you are going to use the tools as appropriate it sounds like you are fully on board with the decision made. What was the debate around whether it was 25 or 50 like when you are going to be this kind of action, you want it to be decisive. So 50 seemed like the right thing to do. This is a supply shock certainly lowering Interest Rates will not get people to start traveling, social interpretations will not be changed by this Interest Rate. That can easily manifest itself if uncertainty continues i was fully on board with it in the realm of or the context that this could really affect business and Consumer Sentiment and Investor Sentiment so easing Financial Decisions seemed like the right thing to do we had a midcycle adjustment. How do we put this into context now . Remember, we are always willing and able to move rates when we think it is appropriate. We saw what was happening and are always looking at the outlook. For the fed and for Central Banks, we look at the media run outlook. That suggested that this was the appropriate move at the time this could be a cutting cycle now . We go into every meeting. We dont prejudge i am not prejudging when i go into the meeting. Four times a year, they do a new forecast and well be releasing those. Youve been saying, you are fundamentally pretty strong. And you do believe for the medium prospect. Was this move done, a, to con the markets or given uncertainty . It really is in my interpretation of why i supported this it is looking at that outlook there is still a lot of uncertainty about the course of the virus. There is already a reduction of activity and travel at least in the first half of the year this is really a response to the economy and outlook. So it wasnt about the market that had gone into the free fall even though it had been around a while, we havent seen it often . You have to take note you dont respond to market volatility per se, if investors pulled back, that affects Business Sentiment and consumers. There is a signaling about the reevaluation about the outlook on the part of the investors were you disappointed about that reaction that you didnt get that shock and awe response . You have to let it play out a bit linger i think this is a time of everyone being uncertain about things as a central banker, you have to do what is proper. You take those actions in that context. We dont target the markets. Our mandate is given by Congress Going forward, we continue to use that as our guide post that was fed Voting Member speaking a short while ago talking to the rational of that surprise cut speaking of which, the cut has raised questions over what actions other Central Banks will take Central Banks are doing what makes sense but we are all talking to each other. Our action represents what we think is the right policy for us in our particular context. Markets are eagerly awaiting action we can talk about the respective regions. Talking about the cut and indication that pboc will look to ease or introduce further easing measures. What is the lay of the land there . The messaging we got from the Chinese Central Bank is that we will be there to cushion the negative impact of coronavirus they sounded like they were more worried about sort of going back to. 0 in terms of the leverage they were going through, singling out the property sector saying they are going to single out that growth. Perhaps they are not going to go for that rate cut. Boci securities 401 says they are not going to go for that k50i kind of cut but perhaps more targeted shortterm loans. Making things easier to get the loans to ride out the difficult times. In the meantime, we had the market reaction. We have the chinese currency ending the session at a sixweek high despite the plunge in China Services for the month of february it goes to show how there is so much betting being pushed by chinese authorities but at the same time not the rate cut like we got from the federal reserve. High expectations in terms of what they can do lets talk about central europe. We know they had that special conference call. Saying they discussed operational issues but the response was not on the agenda they have reiterated the regular press conference and meeting will take place next week. It feels as though, the prospect of an intermittent cut will be a result of the meeting and look at the 10basis point cut now. Thats exactly right. Market is pricing in some 87 rate cut and to the deposit rate question is whether this will be a rate cut it is known that ecb is preparing some sort of targeted loan scheme especially to low to medium size enter priz it is a big layoff of the system of the smes, small to Medium Size Enterprises those that can become demand side shocks and their financing conditions are not as good of the Big Companies that can easily cap the markets that is reportedly in the making new liquidity measures on top of that, we might get some more understanding as of next week what ecb thinks the coronavirus is going to do to the eurozone economy the question is whether the coronavirus will be factored in that estimate and whether well see policy in action or if it is anticipation of the deterioration of the data the fed has done just yesterday. It is the first big test for christine and how she can operate as a crisis manager at the top of the ecb not just talking politics the ownness and action from them as soon as next week, in case the market is not panicking in the meantime with that, back to you lets get a look at european markets that have been open just about an hour. European equities are extending gains. Dax up 60 and cac up about 60 and in italy, the ftse mib up about 0. 2 the question in europe circulating around markets is will the ecb follow suit will the eob follow suit all of that filtering through on the trading session this morning. Lets look at yields dropping below the 1 mark thats the 10year with a new low. In europe, we are around multimonth lows and trading around 0. 94 looking at u. S. Futures stock surging in the immediate after math and then sentiment turned sour and ended lower. You can see according to the implied opens, we are in for a positive start yesterday was also a super tuesday, which yielded a surprisingly positive result for joe biden. Lets bring in the Group Economist from capital economics. Bit of a surprise. Do you think the move was warranted . I think they are trying to get on the front foot. If you look at the activity, clearly what they are reacting to is the sit wage that q2 will be weaker as the virus sweeps through the global and u. S. Economy and heading off some of the financial strains starting to emerge. This is a very different environment. This is a supply induced down shock. This is not like 2008 so they are having to respond in a different way and get on the front foot, i think. We had loretta on who said exactly the same thing this is a shock. The fed are using all their chips a little too prematurely there are analysts out there expecting more cuts from the fed what do they do if an actual recession strikes . They could be depending on how this virus spreads with the u. S. And the response like that. There is still plenty more they could do they could do yield curve control. Wed get the complete morphing and ghelicopter drops i just want to bring attention back to the 10year, the new alltime slow, what are the chances we see yields go negative in the u. S. Theyve come down from 1 to close to 3 . It is clear that they could go a lot further. They argued with the basis points, given the moves weve seen the past three or four years it would require a meaningful down turn it would require a signal from the fed that they would cut Interest Rates and do quantity tative easing. On the Positive Side of things lower Interest Rates are attractive in the Housing Market do you think well see a boom on the Positive Side of this move maybe in time look at what happened in china the virus evolved in different ways in terms of how the government or the consumer responded. In china, property sales have collapsed simply because there are no house viewings. If you are on a lockdown, you dont go on house view we start to see the first signs of activity start to recover if the u. S. Follows a similar path to go to a soft period followed by the pick up if lower rates start to feed through. Well leave it there. The Group Economist. Later today, our colleagues will speak with the imf director about that firstline interview at 17 30 cet the italian outlook grew but ldiusthea coronavirus outbrk. Wel scs at next. 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. sensei beautiful. But support the leg when i started cobra kai, the lack of control over my business made me a little intense. But now i practice a different philosophy. 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The World Health Organization has warned that the mortality rate from covid19 stands at 3. 9 they have asked for a raise of production of medical supplies they say this is unchartered territory for Health Workers but believes containment is possible the focus shifts to global containment. South korea contributing to the nearly 50,000 worldwide. Ukraine, argentina and chile reported their first cases and germany saw the number rise to 240. Italy has dropped to 0. 1 . The q4 number beat the expectations it does not bode well for the country that has become the european epicenter of the outbreak getting back to neil how vulnerable is the italian Banking System at this stage clearly, the big issue here is what we learned from2008 you get problems in one bank and that quickly spreads to another. Given what we know since then a few times in northern italy has been shut down i suspect well have a contraction this year. Do you think the response so far has been correct they are one of the first to come out with the fiscal package given that most are skeptical about the gdp here is that the right response i think they are. You start with the premise that it is a supply that will start to bleed into demand typically 9 to 18 months, if you target it, you are given tax breaks and support to local health care thats the kind of thing and the scenario you are spending. Perhaps well get more of that thank you for joining us stay with us dont hit the panic button just yet. Those words from the u. S. Chamber of commerce leader here on cnbc. Welcome back to street signs. Im Julianna Tatelbaum and im Joumanna Bercetche. These are your headlines european equities find more cheer from the fed than the dow with the first rate cut telling cnbc why she supported the mover move when you are going to do this kind of action, you need it to be a decisive action, so 50 seemed like the right thing to do a chorus of bankers joining the bank of china also pledges further easing chinas further sector posts the worst season ever. And auto sales slump joe biden takes texas according to nbc projections california is still too close to call as the former Vice President gets into the super tuesday spirit it is a good day and it seems to be getting even better. They dont call it super tuesday for nothing. Lets get a check on how european markets are in a sharp contrast, we have all of the majors trading positive still before the close and all of these would end up in the green. Some of these were brushing off by yesterday and what a down day it was its handover from asian markets are mixed. Looking at what the bank of england will do next there is about 20 basis points priced in in attornterms of a ct coming there is a meeting coming in march. Ecb as weve been discussing, we have that meeting coming next week we have about 90 of a 10basis cut priced in so the markets here are trading on expectation of policy rather than things announced already. Ftse mib seeing recovery today as well. What a day we had for yields particularly in the u. S. Breaking through 1 there. You can see we are trading around 95 basis points we continue to rally coming off a little bit this morning, overall the theme has been an extreme flight to quality. This 50 basis point move was unexpected we saw a lot of money pouring in at the front end rallying north of 15 to 20 basis points so very, very sharp moves there. You can see the european mixed income is supported. Trading down at 35 basis points. Baking in expectations of Global Growth slow down going further and picking up a bit of speed. We have italian yield at exactly the 10year note and seeing some support. Switching to currencies, we saw dollar on the back foot yesterday. Some of that weakness given up this morning euro trading on the back foot slightly weaker, 1. 1160. Drar versus yen, the dollar is firmer to the tune of. 3 . The swiss safe haven trading stronger against the dollar this morning. The theme has been the dollar regaining some ground despite some of the weakness over the last week. Certainly with more easing coming out of the fed, saying the dollar could trade on the back foot in the coming months as for u. S. Futures, we are seeing a turnaround in sentiment. It looks as though the dow will open up higher, about twothirds compensating for the losses in yesterdays session. Also seen opening up hire, s p as well. The stablization the fed is looking for is showing up in equity markets not so much the case for fixed income we are talking about. An amazon employee in seattle has testified positive for coronavirus. The first case for the online retailer the company said they are supporting the employee who is in quarantine. Two employees in italy have been tested positive and are in kwaun teen foxconn shut factories and almost all production in the region due to the virus. Foxconn said more than half of the Seasonal Workers have returned to work a warning that production slow down has boosted revenue pleased to bring in our next guest, executive Vice President and head of International Affairs in commerce to weigh in on business around the world thank you for being with us. Earlier this morning, the fed Voting Member thought once the virus hit us soil, we would see businesses pull back on travel and people limit social activities what is your sense about how the community is dealing with the virus and the risk first, this is a Public Health crisis. What started off in china has now reached outside of china we still only have 92,000 cases. I dont want to make light of that at all. We want to be based on fact and not panic and fear we want to focus on what procedures we can take to make sure we are helping out the Public Health and you see more and more collaboration in terms of diagnosed testing and vaccines also, seeing the private is the aek tore take steps in order to prevent travel to some of the areas of northern italy and china. We also need to maintain a sense ofcalm we need to be prudent about it but there are risks we are looking at in the system does it look like. I think weve gotten better over the last few weeks. The white house is in charge of this weve seen a lot more outreach at the fed and state level the fact that cdc has said to the state and federal government, look, work with the private sector and academic institutions and work on testing to make sure we are doing all we can around the country so we are not inhibited. They are taking guidelines from Public Health authorities and we are instituting them and yesterday, there has been criticism from the cdc for not acting quickly enough. At first, they were faulty it took a while to create new testing kits it is difficult in the u. S. Now for anyone to get tested the number of reported cases are clearly in the direction of being much lower than they should be due to the lack of testing going on we still only have 100 plus cases in the United States i dont want to make light of that those people impacted, we are concerned about. No question, we need to expand testing in the United States we have seen signs of movement to incorporate academic institutions it cant be resolved through the federal government they need to deploy the state and work effectively youve seen that, ibm has offered Clinical Development services youve seen that with Pharma Companies stepping up to the plate. They are talking about working closely with the white house to try to get the vaccine to the market you are seeing that with the relief efforts you are seeing from fedex, dhl, ups and others like amazon. I think you are seeing a more robust effort. You are seeing that from public agencies and we need the data. Looking at china, which was the epicenter of all of this there are signs that activity is beginning to mod rate again. Slowly activity and factories like foxconn are returning back to prior levels. Things are moving back but clearly in order to get there, authorities would have to impose the measures theyve said, look, we are happy to shout down the economy for a month to make sure this disease doesnt spread further than it has even though it is going to cause significant hit to our economy, what lessons does the china model give to the rest of us china was slow. I was there midjanuary, there was no knowledge of what was going on it was slow out of the gate. They took some measures with with wuhan in particular you are seeing slow response to getting kids back to school. You are seeing factories up and running. Clearly at 50 in most cases others are talking full production in late march well see, well have to watch whether this is a spike of cases when you do have that factory. Youll have more people together now in groups. In restaurants and back in activity well have to watch to see the spike. More information, more transparency and data you share not just at the Central Government level, the more ability that provinces can take action without having to wait days from the federal government that is true not just in china but in europe and the United States that is one of the big lessons they will all take from here the executive vp and head of internation International Affairs. Saudi arabia and other opec members will try to get russia to join them to top out prices opec and nonopec producers will meet in vienna due to the fears, attendance will be stripped to a bare minimum and journalists will be banned coming up, a twohorse race. Joe biden wins big on super tuesday, the biggest prize of the nightreportedly goes to Bernie Sanders well break that down in just a few minutes. Youre doing more to keep your body healthy for the future. Shouldnt your toothpaste do the same for your mouth . Future proof your whole mouth with new crest pro active defense. Its active Defense Technology neutralizes bacteria to shield against potential issues. Crest. Welcome back to street signs. Joe biden had a strong showing the former Vice President winning nine states, including texas. Bernie sanders is leading in california, which will be the biggest prize of the night nbc news has not yet declared sanders the winner it was a disappointing night for Mike Bloomberg he plans to reassess if he should stay in the race. In california, joe biden pointed to his resurgence. It is still early but things are looking awful, awful good. We may have been knocked down, counted out, left behind, this is your campaign [ applause ] just a few days ago, the press and the pundants declared the campaign dead. We were told when we got to super tuesday it would be other. Bernie sanders is confident about winning the nomination we are going to win the democratic nomination. [ applause ] and we are going to defeat the most dangerous president in the history of this country. We are going to defeat trump because we are putting together an unprecedented grassroots, multigenerational, Multiracial Movement a lot to discuss. Lets bring in jared bernstein, the senior fellow. Going into super tuesday, Bernie Sanders was the clear front runner not so much the case anymore huge momentum behind joe biden now . Do you still see the case to secure or is the momentum so strong that it makes it very difficult at this point . The momentum behind biden is very strong right now. The race goes into delegate rich states in the midwestern part of the country where he could have a an edge. The race isnt over. Down to two front runners to Bernie Sanders with a lot of support from key groups. Well slug it out with a more moderate and a socialist going for revolution stay with us, i want to bring in another voice the economist that is also in the studio talking about the momentum joe biden has it was only a couple of weeks ago when people were writing him off. South carolina was huge for him. What do you point this change in momentum what happened that all of a sudden, joe biden emerged as the front runner and key candidate here it is very clear that South Carolina win, which was a huge win did something really big in terms of turning around the momentum with both of the coverage and in texas for the center candidate that played really bad tli for bloomberg for voters to choose someone who could win in november and biden seems to be the one. Is it fair to call it a twohorse race at this stage sure, i think the big reading for super tuesday are the following. The first, Mike Bloomberg, i think it will be difficult to residence respect his campaign the second, warren underperformed dramatically, including in a state where she should have won big. We need to go beyond that this one won this state and sanders won california because it is not a winner takes all type system in texas, biden is winning but the delegate count is more on that. Just talking about Elizabeth Warren here. She lost her home state of massachusetts. Are you skpoeexpecting those voo go to sanders . Or to be split the ideology would suggest that her supporters would gho to sanders. Biden never even campaigned there, so that is the upset of the night. More of a strategic race of who she will throw her delegates to. It is not the type of slam dunk we would expect of weve heard voters say we are really interested in sanders and his progressive wing and saying biden is the one that could probably beat trump. If it starts to look to people like, the primary goal of democrats getting donald trump out of the white house meter served by biden. That might be the mindset. I was reading that coronavirus is featured as a calculus how might that affect the nomination that is an interesting conversation as to what their plans are to offset the plans here. Warren is out with a plan already because that is her plan i think a lot more about those plans involving some sort of tax cuts and checks by those hit by the economic and Health Impact thank you for weighing in philip, thank you as well for joining us we have been talking about central bank the last 24 hours also just want to bring some headlines we are getting out of south korea. They are considering the bank of korea is considering outright purchases of treasury bonds, so that is the latest we are getting. All eyes will be on further measures not just bank of korea but the pboc as well this is the picture of the markets where you are seeing relief dow opening up five points, perhaps yesterday waa s day to forget thats it for us. Im Joumanna Bercetche and im Julianna Tatelbaum. Tv just keeps getting better. How you watch it does too. This is xfinity x1. Featuring the Emmy Awardwinning voice remote. Streaming Services Without changing passwords and input. Live sports with realtime stats and scores. Access to the most 4k content. And your movies and shows to go. The best tv experience is the best tv value. Xfinity x1. Simple. Easy. Awesome. Xfinity. The future of awesome. It is 5k and here is your five 5. Wall streets wild ride continues for a 10th straight session after jay powell delivered the first emergency Interest Rate cut since the great financial crisis now that 50basis point cut could be the first action as investors look north of the border today all of this on the coronavirus as i