towards 500 as multiple cases of the infection are confirmed from japan to singapore. but asian equities continue to push ahead after u.s. stocks hit another record high. a tough year ahead. siemens sees sharp declines in declines in its energy business. they prepare for a shareholder meeting and a contract with an austrian coalminer. bnp paribas keeps pace with wall a 63% jump ing fixed income trading revenue. the cfo gave us his line on the impact of ecb tearing -- tiering. >> the impact is compensating for the effect of lower rates. there was also a negative impact. however, the other, earlier impacts from the summer did not have as much of an impact. matt: one hour away from the start of cash equity trading. let's take a look at what futures are showing us after the record high in new york rolled through asia. it is not doing much for europe. ftse, and capx, futures down -- cac futures down. you can see u.s. futures also showing some losses. .2%, asfutures are down are nasdaq and dow futures. anna: let's have a look at breaking news at the top of the hour. we have got numbers from vodafone. q3 organic sales revenue has beaten estimates. .07%, so it iss towards the range of estimates -- upper end of the range of estimates. huawei's position will be interesting. they are reiterating previous guidance. the focus on these numbers is on italy about turkey, africa, and huawei. , interesting to see what they are saying about their profitability. they are delivering a net profit of 15.1 danish krone. net income is at 8 billion compared to an estimate of 10 billion previously. so will that be seen as a bit of a pull downwards? we will see how the market chooses to focus on the data and guidance. let's turn to the gmm. it will give us a good, global picture. the singapore market is moving higher. the asian equity session is looking positive. two days in a row, we have seen gains as investors try to work out whether we are going to see ,imited damage to the economy whether some of that reduced demand might just be delayed. interesting to see moves in fx markets. currencies,e asian the central bank or monetary authority is talking about room for easing. that has to be part of the conversation as we look at asia because of the coronavirus and what central banks are doing about this. let's get to the markets. mark cudmore is with us from singapore. it's interesting to see the markets try to draw a line here. tomorrow -- it will be two weeks since we've seen the strong measures taken by chinese authorities. if we don't see infection rates coming down, is there a risk the market has to focus in on the coronavirus? mark: i'm not so sure. there are two things to take into account. one is the fact that many have been obsessed with this incubation period. the guidance is that the incubation tends to be shorter. issuek this is an ongoing and we should not get caught up in single dates. everyone knows that the stats on the infections are just completely unreliable. they are underreported and lots of factors like into that. the way that traders analyze the situation is by looking at the stats. we are currently seeing a mortality rate that could change. ratio ofeing a officially-recovered patients at a ratio of 28-1. so it is overall not looking particularly threatening. the infections are still over 7000 and quite high, but not that threatening. traders are beginning to see this is not much of a pandemic threat. it is hard for traders to go on but the pandemic threat is fading very rapidly. the health issue is one we have been talking about. the economic issue is another. are you seeing any impact on the real economy in china? mark: of course we are going to see that impact. there will be positive impacts will be stimulate economy, but overall, the people in their thats not going out, spending does not compensate. they do not get their hair cut twice when they get better or eat out extra times. uph tourism, they don't make for those holidays. it's not until there's a hit to a manufacturing sector was something like that where we step up duction after, so absolutely this will be feeding through for months and the impact is very real. anna: let me ask you about .omething completely different it ties into where we are on the risk spectrum. the question is, is the tesla search a good or bad omen for risk? we have these comments suggesting it is a bottle -- bubble but there are people who love and people who loathe this. where do we stand on what this means for risk? showing aink it is structural vulnerability. tesla added $40 billion of market cap today's -- in two days. the ideas a mockery of that we have got efficient markets and shows a problem in the market with structural liquidity. but it is just a crack, not an immediate threat. it is a very minor threat compared to other markets. another company, volkswagen, sword 320% in two days. it shows that teslas growth is really irrelevant. were getting market makers and hedge funds pulling out of the market rapidly and we were losing liquidity. this tesla surge is a crack in the market not a short-term threat at all. , bloomberg'sdmore mliv managing editor out of singapore. a tough year ahead for siemens. the german industrial giant says a market slump that caused it to miss analyst estimates is set to continue. we are live outside of siemens headquarters in munich. and meanwhile, the tesla shorts are getting absolutely destroyed day after day. one hedge funds loads up on credit and default swaps. we speak with the cio. but up next, we speak to ken gold at kappa after they report earnings for the full year. this is bloomberg. ♪ matt: welcome back, this is the european open. 47 minutes away from the start of cash trading. let's get your stocks to watch. annmarie hordern is looking at novo nordisk, tom is covering adidas, and dani burger is focusing on bnp paribas. annmarie: the biggest maker of diabetes drugs is projecting growth, saying it will go at a constant pace of 1-5%. that is modest growth and has helped, but the pressure will continue for 2020. these drugs come with a lot of pricing pressure, especially with the u.s.. with the elections ongoing, that will be a hot topic. tell us about adidas and this read across from nike. >> adidas and kuma might both decline because they said the coronavirus could have a material impact on material operations. it is the first big sportswear maker to predict such a large effect from the epidemic. everyone else has said it is too early to say. both adidas and kuma are called down this morning. matt: thanks very much. tell us the story of bnp paribas. bnp clocking in a 60% gain. itt not only beats peers but is in line with the huge gain we saw from u.s. giants like goldman sachs. -- pare pervak targets back targets, though it is still somewhat ambitious given the interest-rate environments. committed to spending 50% of their dividend ratio in cash. anna: thank you very much. you can get the latest on the on yourand others bloomberg. kappa is up after reporting results. they missed estimates, but says 2020 has quote started well. joining us is the chief financial officer. good to speak to you. get your assessment of the growth prospects. e-commerce has been a driver for the business aired to what extent does that continue to be a driver? ken: we see increasing demand for our products. in a world where the consumer is pushing towards biodegradable, i think we see very structural changes in our business. e-commerce or the waste cents, -- sense, we see maybe not in the initial stage, certainly a key driver. clearly, you see some disruption in the trade war from the u.s. and china. i wonder if the trade war is adding to those problems. ken: i think it is a little bit early. anna: the energy business. ken: is a continuation. it something we focus on. 11% for the total year is a good, strong message. rating, we were at the top and. but at the end of last year, we borrowed and the economics is not there necessarily. we've no material certainties until 2024 so we are comfortable. ,ut the more capital allocation we take a look at the cap structure. but the balance sheet is in great strengths and coming from a history where we are much higher level than that. anna: is investment grade something you are actively working towards? ken: it is a place would like to land. we love the flex ability of where we are and that space. the lack of economics between ratings and lung money, at the moment we keep it under consideration but not necessarily something we conceive in the short-term. matt: i have to ask you about the trade issues. you have brexit as well and smurfit kappa has thousands of locations around europe. now?u have to make changes considering that the world is moving, in some ways, against globalization. productsrally, our move less than 300 kilometers from the place they are produced. wallpaper travels long boxes travel short. long,le paper travels boxes travel short. our business is quite local. the uk's 7% of our overall group, but as an island economy, it is well insulated. similar to latin america, we are across the region but mostly in the borders of the countries. so there are low impacts from cross-border tariffs. customers tend to be quite local. what sort of conversations do you have with investors around climate change and commitment there? i wonder which lens investors see through. company thatt as a can help toward sustainability goals or one that threatens them ? ken: we have a product that is by nature sustainable. but our goal is always to reduce the impact of the environment aired -- environment. we have brought down our missions and have further targets by 2030, so i think we see our business in two ways. as an investor, we are very sustainable. anna: sustainable in the sense that you are growing more trees produce more paper products. ken: there is co2, but we are ever increasing -- decreasing. we will have stress targets of another 20% on top of that. matt: can, thanks so much for joining us. ken, thank you so much for joining us. kappa talking to us about the end of your profits. ps a bad quarter after worrying about the future. we get the latest from their headquarters in munich. and if you're headed to work, tune in to bloomberg radio. this is bloomberg. ♪ anna: welcome back to the european open. we are getting breaking news out of the wind energy business. revenue coming in above estimates. in terms of the adjusted ebit margin, they are saving that for 2020. there is a lot of focus on profitability in the sector. will be speaking shortly to vest vestas about whether high profitability and low margins future a thing for the as well as focusing on wind turbines. the full-year number is one billion euros on the nose. matt? matt: let's get to the siemens story. giantrman industrial warns a market slump is likely to continue due to a steep decline in the automotive machine building and energy businesses. the results come on the same day that annual shareholders are is schedulede ceo to face more pressure from environmental activists. coal mines are very unpopular in this environment. our reporter who covers the company joined us on the phone from outside siemens headquarters in munich. siemens has been able to depend on one division propping up others. what has changed? >> you are right. the conglomerate used to be able to prop up earnings by saying you got energy weakness and something like health care makes up for that or the other way around. now, there's more of a slump happening in germany and the world. you have got this ongoing energy weakness with gas and power and you had a big loss last week. set of one division propping up another, all divisions are dragging down earnings right now and it's mostly macro stuff, but some of them aren't. anna: we were looking at pictures of protest activity taking place, climate activists having their say about what they think. demands at these protests? >> it has been an ongoing topic. the protesters are trying to stop the supply of rail equipment to the carmichael coal mine in australia. they have been asking this since december. they said they would look at it and then the company decided to go ahead with the contract. obviously activists weren't happy with that and are stepping up demand. they're sending activists to speak as part of the shareholder meeting. matt: i think those protests are just getting started now so we are going to check back in with you after a while. next, the man betting against tesla, even as stock in the electric car maker sores. -- soares. bets on piling into drops in the bond prices. we will speak with the cio of asgard credit. matt: welcome back to bloomberg markets. we have had some negative results and a couple of profit warnings from some pretty big companies. you are seeing futures down across the board. let's take a look at what you should be watching out for. argentina's finance minister meets imf managing director -- meets the imf managing director at the vatican. they'll discuss the record credit line. continues after bnp paribas this morning. from many more. anna: decisions coming up from various central banks as well. we heard from the thai central bank as well as brazil and poland. in the states, we get adp jobs. u.s. trade balance is coming ahead of the jobs of word a little later. tesla has extended its search with the share price up over 100% this year. the electric vehicle maker now has a market value greater than bw fiat, chrysler, and combined. -- vw combines. -- combined. let's speak to someone who has been buying credit default swaps. , where he is daniel is the cio at asgard credit fund. big of a position do you have on tesla. how big a bet are you putting on this. daniel: we have 23% of our portfolio short in tesla. it's interesting, everyone has an opinion about tesla. the markets are very segmented. the stock could be good in the credit could be bad. sometimes, the markets are priced back urgently. we think the stock has increased quite a lot. credit in tesla has become quite expensive. we are taking on long positions in other names and then shorting more expensive names. shorter tesla credit at the moment is not very risky. matt: can you explain the mechanics of this trade? you are saying to short tesla but are you long cds? how does the trade look? daniel: that's a good question. if you want to short tesla at the moment, it is risky. we are short on the cds on tesla. the cds on the capital part of the structure, there is limited upside potential and holding at these levels. especially the creditor is very tight. yes, welly speaking, have bought cds but we would not recommend shorting convertible bond see your. -- here. anna: what is the catalyst to make money here? the catalyst is that we are expressing a positive view on the market. we have picked for five companies where we are taking a good position. but to avoid becoming too long risk in the sector, we have also chosen a couple of names to take the other side of that balance. in the credit markets, they are and probably less positive on some of the european thoughrt polluters, even if you look at these companies, they have a stable cash flow. their credit spread is actually wider and we think it is a mispricing of the market but not necessarily in the stock market. matt: and you are long on freesia. reporters putr out a fantastic story on tesla that lays out the theories in the market for why this stock has rallied as if it were bitcoin. them, one, or chief among people are calling it a short squeeze. i wonder if that is possible. others are saying it is the profits they have been reporting. that it's the new factory in china that seems to have come off without a hitch. hand we have heard people actually talking about -- he understands this valuation and he laments the fact volkswagen is not seen as a tech company, like tesla. you think the reason is for the really incredible rally tesla shares -- in tesla shares? daniel: the issue with the stock is the tesla outcomes are very binary. think, theestors electric vehicle is for the future, but it is not necessarily battery driven. but if the standard is to become battery driven, then tesla has a huge upside in stock but the credit won't notice because it is already trading tightly. there is a risk to the business model. there could be other technologies supporting electric vehicles. -- we do yet know yet not know yet. it could be fuels or other technology. anna: thanks, daniel. interesting to speak with you daniel, asgard credit funds cio cio, joining us with his positioning around tesla. up next, buttigieg takes the lead. we get delayed results from the iowa caucus. we are working our way towards final results. bloomberg radio is live live under digital device. -- on your digital device. this is number -- bloomberg. ♪ matt: this is the european open. 20 minutes to go until the start of cash trading. bnp has outpaced the gains of wall street rivals in the fourth quarter. the french bank posted a nearly 63% jump in fixed income trading revenue after a rebound in rates. we spoke with the lender's cfo in paris. >> the results for civ is basically a continuation of what we saw in the year. let's just picture the year. line, itok at the top was up 5% on the back of continued commercial life. particularly on civ, we continued strengthening our customer relationships leading to market share increases. if you look at metrics, civ in europe is the third bank in a global space of other banks. so if you look at the so-called in all's, we delivered of our entities. other two,y on the international financial services remain. bankingook at private we are number one in europe and in private markets. that is basically the nutshell of what is. >> let's look at the civ in particular. 62.5%, equity services are of sharply as well -- up sharply as well. if you look at what has bnp paribas been doing, it has the capabilities to do industrial aspects but also data products. the bank has capital to serve the clients and it has that intimacy to really serve with excellence. we see is that we capture market share on all of those domains. forex, there was a bit of a rebound because last year was not that much weaker. but all three, the bank is doing well because it is well-positioned. that was the bnp paribas ceo. let's get a first word news update. >> the death toll from china's coronavirus is nearing 500. the number of cases is almost 25,000. the world health organization is saying it has not yet shown much sign of mutation or pandemic. the bulk of cases remain in china, sparking optimism that it will be limited. disney's push into streaming is off to a swift start. soared and sword -- can challenge netflix in its credit market. but disney's third quarter profits fell partly down. saudi arabia's push for oil production cuts has run into more resistance from russia. curb 500,000 barrels a day to prop up oil prices but russia has continued to push back. these discussions come as the coronavirus is continuing to hit oil demand in china. and for the first time ever, amazon has closed with a valuation above $1 trillion. they surged into the 13 digit club but always failed to stay above through the close. the milestone also adds to the wealth of jeff bezos, already the world's richest man. billion. worth $127 global news, 24 hours a day on air, on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. anna: on the eve of his likely , donald trump touted the great american comeback. >> america's fortunes are on the rise and america's future is blazing bright. the years of economic decay are over. [applause] markedut partisan snubs the evening, with trump ignoring nancy pelosi's handshake, and as you can see here, polluters the ripping up a copy of the speech after he had finished littering it -- delivering it. in iowa, we are getting delayed results from the race to become the democratic candidate. pete buttigieg is in the lead after bernie sanders after 70% of precincts reported. we are working our way towards the final number. it is a blow for joe biden. joining us with analysis is stephanie kelly, senior political economist at aberdeen. what is the significance of the results of iowa? iowa, it's never the case that they have 70 delegates they will make a mark. it's much more political signaling. , it hasthat in the past tended to be advantageous to candidates if they can well in iowa and new hampshire. it tends to be a good signal for how they will perform in the future. topfact that buttigieg came actually shake things up because expectations were that hyden biden would do- well. buttigieg do in new hampshire? they are way out east, but they have the same kind of eclectic mix of rural areas and far-left. think that new hampshire is more of a try for buttigieg, and as you pointed out, it is kind of sanders town. he has been consistently strong in new hampshire aired buttigieg has had moments of popularity, but i was quite a while ago. it's interesting, because just as iowa can be a surprise, new hampshire can be relatively unreliable. for me, it is not so much of a question of new hampshire, but can buttigieg, head of biden? they are jostling in this moderate lane in the same weight sanders and warren are jostling in the aggressive lane -- progressive lane. he is going to struggle to get to a diverse state like south carolina. isa: what kind of damage going to be done to the democrats? i was reading joe biden might be quite happy about this. the mass over the voting might take more of the headlines than the actual outcome. what are other implications? traditionally, we talk about how if you do well in iowa, you can bounce forwards. but initial commentary has focused on the idea that maybe it is so noisy, people discount it. tainted.s kind of you need to look at either way. say i people look and think the issue is around data at the central processing house. the democratic party has been clear they don't think there are issues with the actual data. the question is whether buttigieg can take advantage of the big headlines and make it into a story of coming up with waiting and finally proof. normally, in new york, they say gridlock is good for markets. when washington gets nothing done, wall street is happy. a 49% approval rating, only 7% of democrats think he is doing a good job. which to me, is shocking already , but still low. what you think of the incredible divide in the u.s.? stephanie: we have seen that kind of polarization building. looking back the data, we have seen that. this has been building a long time there is a tendency to treat president trump as a lightning rod but i think it is representative of what is already going on. this kind of polarized environment needs we are in a situation where we have on the one hand, president trump with low regulation and low taxes but an unpredictable trade policy approach versus a democratic candidate who would be pulled to the left on key sectors of regulation. clearly, that is going to worry investors. it is from the frying pan into the fire in terms of things investors will worry about. anna: thank you very much. we should mention that when we discussed democratic candidates michael bloomberg is also standing for that nomination. up next, we will bring you stocks you should be watching out for. lenders -- scenes sees profits slump as lending takes its toll. this is bloomberg. ♪ anna: welcome back. 7:52 here in london. just eight minutes ago until the start of equity trading. it looks like we will be seeing more weakness at the start of the trading day. let's get a business flash with leigh-ann gerrans. >> nike says the coronavirus will have a material impact on china's sales. it has closed about half of the stores in the country and those that remain open are operating with reduced hours. nike is the first company to feel a big impact from the outbreak. most major companies have said it is too soon to tell. ryan has been told to drop advertising claiming it is europe's greenest carrier. a watchdog says it is unsubstantiated and based on old data. ryanair says it has provided information toupport thease and that the claims are based on its young fuel-efficient fleet and high occupancy levels. tesla's advances over 100%. the shares continue the search, rising 30% in just two days. it gives the carmaker a general value of several other carmakers combined. no other stock has grown even a quarter as much so far in 2020. that is your bloomberg business flash. matt: thank you very much. outbreak,oronavirus yields neared a 10 year low. but here with your morning call is dani burger. from ahis calls technical strategist at bank of america. he says yields will meet a new record low that will happen in the first half of 2020. att of what he is looking here is just the momentum of treasuries. bites, yields coming back a , but he thinks those levels will attract investors and the momentum is not going to last. from a macro impact, there are plenty of catalyst, despite the fact that we came into 2020 looking like some of the risks might be over. but china growth is a whole thing on its own, as well as just any sort of u.s. election risks. so look out for record lows in those yields. anna: just like our conversation yesterday, lots of factors pushing down on those yields. let's have a word about one stock we were talking about. imperial brands abandoned its forecast. they are writing down the inventory due to a ban in the united states. keep an eye on that sector. european equity markets are set to open up informant. in four minutes. anna: a minutes ago until the start of cash equity trading. the death toll from the coronavirus climbs toward 4500. european and u.s. futures fall after yesterday's wall street gains. a sharp decline in profits, blaming auto businesses. paribas keeps pace with wall street peers. matt: we are looking at futures that indicate a lower open this morning after a few different profit warnings and disappointing earnings from some of the most heavily weighted companies like siemens. we could see a drop in futures on the dax, 0.3%, a drop in futures by more than 0.5%, it looks to be a risk obsession. we will have a look at where they open, the ftse 100 down by 0.2%. no big moves in the pound. the ftse 100 opening to the downside, off a strong performance in the u.s. yesterday, the nasdaq touching a new all-time high. a negative session in europe in contrast to asia, they are gearing up for a second day of gains. the chinese markets reopened. in europe are we focused on coronavirus or trying to put that in the rearview mirror and get a handle on the economic damage? or are we focused on the earnings season. euros stocks a little weaker. stories, interesting takes on the earnings season. is the market going to focus on what we heard out of bnp? focus on the siemens story itself. the guidance to the downside, if you are focused on coronavirus or the earnings picture, there seems reasons to sell this morning. anna: absolutely, and it is not th, 370 stocksd down, 201 gaining. if you look at the companies on the winning side of the ledger, afterordisk gaining 1% its 2020 operating growth 1% to 5%. novo nordisk sees profit gains. some of the other pharmaceuticals are rising. take a look at the downside, you see imperial brands down more than 5%. that is one of the companies with a profit warning today. we also had a profit warning from dansk a bank, but -- danske there andnestle is up siemens as well, down 1.7%. three is one of the top companies on the stoxx 600 that awayle to take more points from the index. european markets are being assess down as investors further efforts to contain the coronavirus. the markets with laura cooper in london. are we seeing drops today because of misses on earnings, or is the coronavirus coming back to take away gains we have seen over the last couple of sessions? laura: it is about coronavirus fears. we have seen this broad risk on sentiment yesterday driving a robust rally. i think the reality is beginning to sink in that yes, we are going to see a significant hit to economic growth and that is bubbling back. anna: interesting that we saw the asian session make gains, and the european session is weaker. are we mismatched because of the closer of the chinese equity market? laura: maybe that is true to a certain extent, but we did see a strong performance in the early part of the asian session, but that started to unwind. that could reflect profit-taking. there could be some focus on earnings, but those profit warnings are focused around the coronavirus fears and the uncertainty that lies ahead because we do not know how it will play out. anna: some interesting conversation with mark cudmore, he was saying he does not think we will go back to focus on coronavirus, but the market has its head around this. once we get to tomorrow or the end of the week, whether the market will be focused on rates coming down. i guess we do not know. are you on the same page as mark? laura: i am on the same page as mark, it is hard to look through the numbers coming out, but when traders are focusing on the decline and daily growth rate, it is falling sharply, the mortality rate does remain low, and the economic hit, we are not seeing it in the data. over time the hit to the services sector which is large relative to where it was a couple of decades ago, we will not see a bounce back and economic activity. at this stage, if we see a greater it, that is not priced in. aboutare you concerned european earnings? u.s. earnings are holding up quite well, and analysts did not reduce their forecast in the last couple of weeks as they could we do. europe today does not look so good. read too much not into the near-term earnings reports from the broader market perspective because we have seen a decoupling from earnings driving market sentiment, and it will be about the bigger macro picture joining european markets, especially when we get economic data later today with the pmi services figures that are likely to show a modest recovery economic activity in europe, which does feel to point to bright spots. that should play out into corporate through the year. anna: thank you very much, laura cooper. let's get a bloomberg business flash. >> siemens is warning of a tough year ahead as the market slump is set to continue after quarterly profits missed estimates due to a steep decline in it auto and energy business. it faces pressure from shareholders. b.n.p. paribas is keeping pace with its wall street rivals as it posed a 63% jump in fixed income revenue, fixed income revenue jumped to 800 million euros in the final months of the year. it places bnp ahead of deutsche bank and ubs. >> we have the capital and the intimacy to serve the customers. what you can see is you capture market share. on forex there was a rebound because last year, but on all three the bank is doing well as it is positioned to do it on capital. >> danske bank is committing $60 million to finance green investments, more than double the current amount. denmark's biggest lender continues to grapple with the fallout of a money-laundering scandal. investors are waiting to learn how much the lender is facing in fines. profits are expected to fall this year. that is your bloomberg business flash. anna: coming up, we speak with jessica r. alsford -- we speak henrik andersen. this is bloomberg. ♪ matt: welcome back to "bloomberg markets: european open." we are 11 minutes into the session and looking at losses of in germany.to 0.3% the death toll of the withavirus is nearing 500 24,500 cases confirmed as outbreak continues to spread. the world health organization says the virus has not shown much mutation or caused a pandemic. it added the bulk of cases remain in china's hubei province. the u.s. is preparing for what it sees as an impending pandemic. ford have all , and somestep breweries in carlsberg would have to be closed. tournament what do we know about the size fromcope of the fallout fighting the coronavirus? there are a couple of things to keep in mind, number one as you noted, companies other year-end results are clearly impacts,out effects, actions they are taking, exactly what they should be doing. secondly, there is no doubt first-quarter earnings, whether broadly across markets or specific to these companies are going to be impacted, but it is the reasonable thing to keep a longer-term point of view. this will pass, and the trendline does not change. types of companies will be more impacted than others. those in travel, technology first because of missed trips and supply chain and demand will be important. the third is energy. you have a significant curtailment in energy demand happening in china. that clearly has ramifications to the oil prices and the oil majors across europe. this is a really useful tool for looking at the vigil companies and where the news ,ocus is around coronavirus where that is focusing on individual company names. we have apple, and cathay pacific, and companies that manufacture in china. then you also find energy stocks , and health care. doubt, that page is pretty cool because it is full of notes on impact. within health care, the key thing is to consider you will offerompanies that may potential avenues of solution, we do nott instance see a lot of upside because a lot of this will be given away because it is the right thing to do. that aremanufacturers small within the grand scheme of things and hard for an investor to participate with. matt: i will give you a shameless plug, this is a fantastic source and i click on the automatic dashboard because i am interested, but it is helpful at work. i have learned 50% of bmw, daimler, and volkswagen's cash flow comes from china. it is a hundred billion dollar market for carmakers, and michael dean has a piece saying for german automakers this is the most difficult. tim: you are absolutely right, and i should have mentioned those, it is an industry that not only has a supply chain issue but a demand issue as it thinks about china. volkswagen is a global automaker not just european automaker with the most exposure. they have a market share lead in china. this will be a near-term hiccup. of producesndpoint versus service companies, production companies have a chance of recouping business. you did not buy it now but you will buy it next week or next month, you will make that purchase. going back to the service concept, if i am a casino or iag, thathink about is lost business that is never coming back. what you can consider in terms of production versus service companies. anna: i am looking at which , luxuryhave done badly is down 3.5%. oil and gas and autos of the biggest losing sector for europe in the last month. craighead, bloomberg intelligence. vrus combines the map with some frome charts and analysis the bloomberg intelligence team. up next, we will bring you stocks on the move. this is bloomberg. ♪ anna: welcome back to the european open, european equity markets are on the back foot as the coronavirus and concern around global growth links to that, or is it the earnings story? let's get some stock stories. annmarie: i am looking at .arnings and the coronavirus one of the biggest gainers on the stoxx 600, a record high, they are a parent company of communication devices, and they met expectations. 9% asal brand down nearly they see a forecast for banning's -- for earnings growth. carnival down more than 3%, everything to do with coronavirus. a princess cruise outside the port of japan is telling a tv station that 10 passengers tested positive for the coronavirus. matt: wow. that is interesting stuff with the carnival cruise lines. power, highernd revenue for the year for vestas. they see twice 20 income between 14 billion euros and 15 billion euros. joining us from denmark on the phone is henrik andersen, president / ceo, vestas wind systems. what do you think is disappointing investors, because it sounds like great news and at shares downe we see 2.5%. commentingill avoid on swings in the share price. with the yearut at the high-end of activity in turnover. as you appreciate, in q3 we were entering the busiest activity quarter in the history of the business, and on behalf of the team it is an acknowledgment of saying everyone polled together and delivered honor promises for the fourth quarter. i am proud of what the team has done. we can see we are coming into 2020 where we look at our 14dance, we will see between billion and 15 billion euros, and i say keep perspective because when we enter 2018 we had around 10 billion euros, and now we are at 40% to 50% higher in an industry that is supported by the move toward renewables. anna: the support of their for the industry, i see in terms of the ebit margin you are year,sting 40's 9% this -- 49% this year. this is a business for profitability has been under pressure for the sector, it is high-volume but low-margin. how did that evolve? henrik: you will appreciate we , we three areas, onshore are in service and offshore. it requiresthing, enormous discipline operationally, expanding in this way but running projects of our magnitude. andut enormous discipline how we execute each project, and that goes through the value chain. and we did not, see in 2019 our supply chain disturbed a few times through the year due to a change in tariffs or restrictions on import-export, that is a year we have to make a lot of adjustments. some of those are continuing in 2020, but we try very hard every day to work as diligent as we can to circumvent these challenges. repnd it's a bad in journey for some reason i am not sure about. people from the left and right seem to be increasingly against wind turbines being erected. why is that, and can you change public opinion? henrik: i think we work with all our stakeholders, and it is a challenge to comment on groups because we just intake2019 with a record of gigawatts, and we are indicating to everyone we are confident coming into 2020. debateow there will be a how we do our renewable solution, but that is up against the need and demand for putting renewable solutions in, and i wonder over time we tend to see these meet somewhere and find for putting the right solution in place. i am not worried about that, but it will take some time. anna: thank you very much. henrik andersen, president / ceo, vestas wind systems, the company reporting numbers today. another company reporting is siemens, they have a warning about the future. this is bloomberg. ♪ sometimes your small screen is your big screen. and with the xfinity stream app, which is free with your service, you can take a spin through on demand shows, or stream live tv. download your dvr'd shows and movies on the fly. even record from right where you are. whether you're travelling around the country or around the house, keep what you watch with you. download the xfinity stream app and watch all the shows you love. beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. matt: welcome back to the european open. anna: i will read this bit, because it says i am anna edwards. matt cannot you take us what we have seen. matt: i have been known to make mistakes like that in the past, but not today. i'm matt miller in berlin. let's take a look at the stories for equities. this is the broader index of the stoxx 600. you can see it is barely moving at all. right now, it is down. it's a pretty even split in terms of the industry groups. technology is the leading group. materials and media following it up there. on the downside, you have got household goods, so consumer staples, oil and gas, and food and beverage. but it is a pretty evenly spaced markets at i think the movers are the individual corporate stories. it's not one of those days where all ships rise with the tide. let's get over to first word news. trumpthe u.s., president has struck a triumphant tone. he is placing his bids for reelection squarely on the strength of the u.s. economy. >> america's fortunes are on the rise and america's future is blazing bright. decay areof economic over. >> it was a deeply partisan affair. back onident turned his a nancy pelosi as she offered to shake his hand. when the speech was over, she ripped up her transcript of the speech. intial results from iowa are and the early leader is pete buttigieg, the former mayor of south bend, indiana. he is just ahead of bernie sanders. it follows a 20 hour delay of the results. said "wef the company ."el really terrible saudi arabia once curbs of at least $500,000 -- 500,000 barrels a day but russia has continued to push back. the discussions, as the coronavirus continues to hit oil demand in china. global news, 24 hours a day on air, on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. anna, matt?mberg. anna: leigh-ann gerrans there with your first word news. has warned a market slump is set to continue after quarterly profits already missed estimates due to a steep decline . the results come on the same day of the shareholder meeting where the cfo is facing even more pressure from environmental activists. our reporter who covers the company joins us from outside headquarters. , tell us exactly -- give us a sense of the protests, first off. morning. protests have started small they are going to be picking up steam. protesters are waiting at the entrance, where shareholders are entering. the plan is probably for a climate protest today. they have said they are willing to go as long as it takes for siemens to hear their message, which is that they want siemens to step out the contract for the coal mine in australia. what about the numbers we have heard today the other part of the story. the share price is down over 2% in the wake of those numbers. like there isok much good news today. inbers were generally week the energy business is still suffering from a large breakdown. and windrenewables power business site lost last week and gas turbines are up. orders are not as affected and industrial automation is not doing that well either. across the board, a earnings quarter for the company -- a week earnings quarter for the company. anna: oliver sacks, joining us from munich. clearly, climate protests are part of the story today. let's talk about sustainability and sustainability research. jessica is the head of sustainability research and conversation.ur i wonder if you can help us. we talk a lot about various sectors of the economy and a lot about esg. wonder -- we get wonder what gets included in an story.ay -- an esg companies,o gas extraction businesses, though they are not oil companies. locals might say they are better than private jets. what is the latest conversation around what gets included? >> sure. i think you have got the crucial point that it means different things to different people. we really see a spectrum of different approaches. even when focusing from the value creation perspective, you cannot help but get some of these decisions,. point -- decisions going on. exactly tear point, some investors want to be investing in the whole market but companies that are more sustainable than their peers. anna: so this company is better than that company even if the entire sector might not be great. >> absolutely, and it really comes down to personal preference. that's why we see a diversity after -- out there. wonder if there's anything a company can do to not split in these funds. picture of protesters lined up outside of siemens because they're building a and yet -- coal mine siemens shares are included in all of the biggest esg etf's. >> sure, and i think there are a couple of comments to make. can be a, there minimum amount of revenue that needs to be exposed in order to be excluded. it very much comes down to definition. in some funds, there is a focus on fossil fuels and that's where to oil and gasd and may be excluded. anna: we have seen share price is jumping. let me ask you about some of the technologies are relying on. you did a report around 2050 and the paris agreement. do we have all of the technologies we need? is it just a question of price? that 60% of global emissions comes on energy. technologiess of which can help take carbon out of the system. renewables, carbon capture, and biofuels. some of them, we think the economics has improved so much they make sense today from a commercial perspective. renewables is a good example of that. on the auto side cannot regulation has really pushed autos from the combustion engine to the ev. technologies, they are commercially viable from a technology perspective, yet at the moment, it is hard from an economics perspective. siemenst me point out, had jumped at the start of trade but by producer point yet it is down by 1%. matt: are there any signs of a bubble in this market? bernstein pointed out that esg companies in europe had higher valuations and esg companies in the u.s.. is greta having an effect on european investors? >> i have been covering the space for over seven years. where's back in 2012, it was primarily european investors i was speaking to, it has gone global. are the broad topics of an esg. climate and carbon are not just a topic of sustainability funds but it is mainstream investors who are having to incorporate this into how they invest and think about certain sectors. so, no, don't think it is restricted to europe. anna: jessica offered, head of sustainability research at morgan stanley. coming up, caucus chaos. we bring you what you need to know about the iowa caucuses next. this is bloomberg. ♪ matt: welcome back to the european open. feed ofetting a live hong kong chief executive carrie lam. she is holding a briefing on the coronavirus and has decided to go out in public without her mask on. i'm not saying it's related, but at the same time, we see european stocks turning around from losses and rise up to gains across the board. there you have it. those two things are probably disconnected. is what you need to know today. the ceo whose app through the iowa caucuses into disarray has apologized annmarie hordern is here with the details on the debacle. says "we feel really terrible." that is our results are still coming in after his app broke down. he says the problem first became apparent at 6:45 p.m.. he said it was not a glitch in the app itself, the problem was the way in which it was transmitting data. by 9 p.m., the issues delayed of the official result, leading to lots of confusion and chaos. blow, it also raised questions about the integrity of the entire process. ceo said the., the bug was discovered and fixed. at that point, it was successfully able to transmit data. yet we are still waiting on 100% of all of the votes. we have about 71% of precincts --ting which show p2 judge pete buttigieg leading. he has had an extraordinary ride. second is bernie sanders. anna: thanks very much. bloomberg's annmarie hordern with a look at what went right and wrong iowa -- in iowa. let's carry on with derek wallbank. as we are still waiting for results, we have 70% of the results. it does look like a good result for buttigieg, but what else is significant for you? is unquestionably a good night for pete buttigieg, regardless of how this turns out. it's not a great night for joe biden. not a great night for elizabeth warren. it puts a lot more pressure on those two going forward. particularly warren, since she is in neighboring massachusetts now, you have got a lot of questions about joe biden, who was once considered the dominant front-runner. calendar,ng at the saying when is he going to win? it does shake up the race a little bit. we saw a market move after iowa came in with bank stocks because the best that this uncertainty might be bad for the field and good for child. get people too try and figure out how to play this in a market perspective. matt: i think it's fascinating that biden does not even come third in iowa, of all places. he has got that salt of the earth character that you think would win out those farmers. buttigieg, whose name people cannot pronounce, comes in and steals the show. what a drama. also, the whole process is complex to begin with. then you hire a company called shadow, by the way. where fast not assign, i don't know what is. for thea black eye caucuses and democrats? last time the dnc got hacked, it turned out they were trying to actively help one candidate over another. now they have a voting process that is destroyed by a company called shadow. >> yeah, i think there are echoes of the obamacare with that happened and then the big signature piece of legislation was this health care law. he tried to get people to sign up and the website did not work. all of a sudden everybody just sit there and says, this is a disaster there. democrats got killed in the upcoming election. it may be is not going to be that serious because nobody else votes like iowa after iowa, but you're right, it was a complete debacle. that we still don't have the full results is ridiculous and kind of unprecedented. enough, doestingly have a history of voting for young guys with funny names. for barack obama and they do have a history of that. anna: derek, thanks so much. we talked about the race a few times during the program. markets in europe, we got the stoxx 600 turning tail. u.s.w a real uptick in futures and european stocks. stocks in europe are up by .7%. the ftse is up and the cac and dax are up. u.s. futures also pointing hire. .5 and u.s. futures pointing hired by higher by .5%. up next, the coronavirus impacts. a guest joins us on this program. this is bloomberg. ♪ matt: welcome back to the european open. we are almost one hour into the trading session. a prettyeen interesting turnaround. we had futures down both here and in the u.s.. we opened up down for the first 30 minutes of the session, looking at losses of one quarter percent to one third of a percent and now we have seen a turnaround to the point where .66%.x is now up almost after the record highs yesterday and the gains we saw in asia, europe now joins the global rally and posts some green arrows. pace with gains and outpaced its competitors on wall street in terms of fixed income trading. the french bank posted a near 63% drum and revenue after a rebound in rates. we spoke to the cfo in paris. the results for civ is a continuation of what we saw in the year. let me picture very quickly the year. the bank clock in solid results. on the what was up 5% back of continued commercial drive. , we continued the strengthening of our gusts -- customer relationships, particularly of the corporate and institutional side. metric,ue look at the this is the third bank in a global space of other banks so if you look very quickly, we discovered on costs, operating jobs and all entities and common equity. p rapidly on the other two, financial services remained above 7%. domestic markets were resilient in lower interest rates as well. that was the nutshell of what is. >> let's look at civ in particular. 62.5% equitye of services also up sharply as well can you actually maintain this performance in 2020? >> if you look at what we have been doing well, it is that we have the capabilities to do industrials but also data products. we have the capital to serve the product -- clients and we have the intimacy to serve customers. what you see is that we capture market share. credit onexample, credit, there on was a difference, but we are positioned to do well on capital and systems. anna: that was the bnp paribas cfo. around one hour ago, we got this uptick in risk appetite for equity markets. u.s. futures went higher. this came at the same time that u.k. research on the coronavirus was announced. it might have been that that pushed risk appetite higher this morning. matt: for carrie lam showing up at a press conference without her mask. i think it was a huge statement for the woman who banned people from in hong kong from wearing masks, then shut up on stage later with one. now, she feels safe enough to leave it at home and we see stocks turnaround. that's it for the european open. will burke surveillance is next -- bloomberg surveillance is next. t. francine: the coronavirus death toll climbs toward 500. president trump tells congress the u.s. economy is on a tear, and the iowa caucus, pete buttigieg maintained his lead. b.n.p. paribas posts a jump in revenue. good morning, good afternoon, good evening depending on where you are in the world. i am fr

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