Nejra che risch nejra cehic in london. Futures turning negative. We are positive in the Asian Session but that could have been a technical bounce with the s p futures dropping below the 30 day rsi. Looks like we could see another day of losses. , down threeyield basis points. Two year yield a three year low. Lasthit that record low friday. Pricedh gloom is being and the Global Pandemic. The yen has been strengthening for days. Losses below 50 a barrel. Bob iger is stepping aside in a surprise shakeup. The as executive chairman through 2021. He takes over the immediately. Chapin we have someone we know very well. The thing ive really taken away from bob igers legacy is get the content right and Everything Else follows. Senator Bernie Sanders felt the burden of his frontrunner status of the latest democratic debate. All six rivals delivering attacks. Their aim, stalling his momentum. Another focus of attacks, Michael Bloomberg. This after spending more than 500 million on advertising. Mr. Bloomberg is the founder and majority owner of bloomberg lp, the Parent Company of bloomberg news. We end with growing violence in indias capital after right wing hindi groups begin attacking mostly muslim protesters protesting against the countrys new religion based citizenship law. Police have been ordered to shoot rioters on site. Its the worst violence in delhi in three decades. Global news 24 hours a day on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im viviana, this is bloomberg. Nejra thank you so much. Lets get to our top story. The u. S. Centers for Disease Control and prevention warns americans to prepare for potential coronavirus outbreak at home will mounting cases are the globe spark concern the outbreak is widening. The embattled government with giveaways as the city struggles to stabilize the economy. Bringg us for hong kong great to have you with us. What hong kong is doing it with the latest from south korea. Also with the outbreak of the virus today in a budget speech indicated a fiscal deficit which could see the economy see it back to back annual recession in 2020 and the gdp for the First Quarter would be rather bad even as the they push fiscal policy to over drag. Bloomberg economics calculates age 18 and above with that package that will add about one percentage point to gdp growth, that stimulus is unlikely to help the economy move out of a slump. Else are we are expecting policymakers and south korea as l to push her efforts the government is seeking more on the get Market Impact of the virus outbreak. European stocks in the red again this morning. Longest losing streak since last summer after further losses in asia and the worst two day slide. Me its the bond market we need to focus on the moment before we get to the equity market with a 10 year yield. Itting a record low yesterday is it Global Pandemic in the fed steps in . Im not sure where at that yet. There is a flux quality, thats why bonds are making such good ground. I dont think the markets are saying its a pandemic, i just think its a natural reaction to respond to the equity market. From my perspective it is the equity market which is a barometer rather than the bond market. Nejra the other way i was looking at it is the past couple of days, the hit to equities is the markets waking up to with the bond market has been pricing since the start of the year and starting to question whether we get a recovery. I agree with you in the sense that the equity market has been far too slow to pick up on the potentially potential impact of the coronavirus. Last week ms. A record high. About, i think one is the impact of coronavirus. Ways aret to which the valued. Of come on here and said market look a bit choppy. When you look, the coronavirus ,s proved to be that shock depends on the nature of the recovery. The simple truth is the markets for now and his money pours out will start to see it affect the market. 500 belowsaw the s p the 50 and 100 day moving average. How much more of a drawdown to be get . Peter we just dont now. Selloff a lot more readily than you might imagine at this stage. If you look at the fundamental , filled to the data with regards to infection. At the moment it is slow. We should be careful. Maybe this is as far as we go. If you track the market against the reputation, at some point the market will snap back. Nejra giving you said money will flow of equities into the bond market, designing their close to finding the floor for the 10 year yield. If got bank of america saying we will certainly get to 125 by june. Peter we could do. I think we will get there sooner because itsater likely that will be over the course of march and possibly into april. Will we hear from a different town in the fed in march . Peter may be moderately. I think the fed will say there clearly risks and the risks are the moment wildly external bring at the moment risks are external. We look at the u. S. Economy remains in great shape. As not yet time to take pause in the action. Many nejra weve talked equities and bonds and commodities, the more from peter dixon throughout the show. Coming up on surveillance we take a look at some of the companies that have warned about the coronavirus. Asy warned of a hit as much 420 million. Plus super returns, we are live and speak to the cofounder and cochairman of the Carlyle Group. That exclusive interview is coming up shortly. This is bloomberg. Bloomberg. Nejra european equities deep in ,he red down for a fifth day just over an hour into the trading day lets check in on your stock movers. Were hearing from executors across the industry about what the coronavirus will mean for their business. Impacty it sees negative due to the fact many bars and restaurants up enclosed across china. Warning of significant uncertainty. A lot has to do with them putting Growth Products on hold especially due to the impact of the supply chain and they are cutting their outlook as chinese water cells being hit and infant formula in china. Lets look at how these three are moving based on this fresh news. Nearly 1. 5 . N danone is slightly higher but year today they are actually under pressure. We have been seeing these fears circulator weeks about what the impact is going to be not as the Global Economy but individual corporate patent nejra coming up, super returns. Can the private Equity Industry continue to deliver for investors. We are live in berlin to speak to the cofounder and cochairman of the Carlyle Group trade group. This is bloomberg. Nejra this is bloomberg surveillance. s get a look at the peter, i see a bit of conundrum with dxy. We havent gotten to 100 yet. You look at the the dollar has also rolled over. Why is the safe haven of all safe havens where a lot of people peter recently its been the the yen and swiss franc and buying dollars, highyield yield and dollars. That perhaps gave the impression there was a safe haven trade. May use it to funding trade. What we are seeing now is the reversion of the safe haven couldover and above, we just be seeing a change in market behavior. Nejra some breaking news to get to. Italys coronavirus cases rising. We are getting update after update about the spread of coronavirus around the world. Beenats what you see has the explanation for the dollar has rolled over little bit, what happens from here . Does weakness continue or the receipt read Surge Research surge back above 100. Peter i suspect you will still get continued dollar weakness. I think over the course of the longerterm i would inspect the dollar to turn around a bit. As we said before we just dont know where that is. Where then would you be advising investors to put their money now is the ultimate safe haven, is it gold, the yen, its not done that well. Over the past three days it seems and strength. The japanese recession is been cited for the yen. Obviously they can have the avoid a little bit. A little bit of gold for sure in some cash. It will come a point fairly soon , the shanghai compass it and then rebounded very sharply. The collapse happened over the course of nine sessions so it could well be if you get something similar thats the point at which investors will step back in. Nejra bloody if earnings take a hit . Peter they will what if earnings take a hit . Peter they well. You dont is early by the longterm would suggest a pickup and you will see stocks get out. Stay with us. Ill we have more to discuss including perhaps what Commodity Prices markets are pricing. More investors look to private equity for convert for returns. While the u. S. Is still the biggest market for these deals, europe has seen rapid growth in recent years. Worm over to berlin delighted to say David Rubenstein is with us. Great to have you with us on the show. Thanks for joining us. What the mood like this year . David the mood is reasonably good. The coronavirus is some the people are talking about but people recognize its probably transitory in their mood is good because people recognize the private equity is still very popular and returns are pretty good soil think the mood is pretty good. Nejra the hit equity markets have taken in the past few days because of the concerns around coronavirus, is that can prevent some opportunities to private equity . David we never want to take advantage of Something Like that in an inappropriate way. Theres no doubt when youre investing in public equities they go down dramatically, private equities when youre holding them a private way dont tend to go down as much that way because we dont mark the market every single day. On the other hand i do think people recognize that this will probably be in time a chance to buy some things in an appropriate way. They dont have enough information to really know. Nejra if the equity market price for a deeper correction here should there be a deep correction . David the markets have been fairly emollient. The markets were up a bow most 30 last year. Its hard to keep going up 30 every year. In fact there is no history of the stock market going up 30 every year. At some point there will be a slowdown, you might call it a correction but i dont think it is likely or least most expert something you will see it as much this year as it did last year. In president ial election years stock market a fairly good so i wouldnt expect to decline. In the meantime private equity sitting on records amount of cash of the start of the year. How hard is a defined opportunities right now. Is it to find opportunities right now . David its not easy and thats why we get paid reasonably well to do it. You have to find opportunities that are fairly unique, but for trillion dollars which is the amount you have which is the amount invested or available in socalled drive pattern, that is insignificant relative to this total amount of publicly markets so 4 is really what we have available equity compared to the Public Market so its not that large amount of money in that context. Nejra in the conversations you are having where does private Equity Investors see some of the best opportunity right now either in sectors a geographically . Attractivethat are would be health care. As the population of the world gets wealthier, the more and more people Want Better Health care. So when i was younger and working at the white house with present carter, the gdp the United States devoted to health care was 7 , today its 18 or 19 . More opportunities in health care as people live longer the need more health care. Thats a big part of the economy and where opportunities are. But in the emerging markets as well. What you are seeing is they want to live longer and if they can afford Better Things is the middle class is becoming bigger you are seeing more and more opportunities for health care. Another is food. As people get wealthier, they recognize to live longer you need Better Health care but also eating well is important so people are investing more in healthy food and things thatll make them perhaps live longer so thats a very important thing. New kinds of food but also Food Distribution and also access to food which is delivering the kinds of services which make it more available. Nejra what kind of reception are you getting in europe and in germany where you are now . Our companies respective to private and investment many years ago probably 20 years or so ago there was a famous statement saying private equity people werent so wonderful. That has gone away anything private equity is now respected in germany and i think germany is a very attractive place to invest. You find very wellmade products here. The attractive things about German Companies is they make products that are respected all over the world into a lot of exporting. The German Economy is at some problems of late because the trade with china going down a bit, the exports from germany to china have gone down a bit. Economy is not doing as well as they would like to do. I think thats probably a temporary phenomenon that some point the German Economy will get in better shape but right now those slowdown of the export market has hurt germany more than any other single country. On the other hand its a good buying opportunity because prices are lower than they were before. Nejra is the credit market causing you concern . The credit market david the credit markets are interesting in the sense that interest is a very low. In the United States we expect them to say relatively low, the fed chairman does not expect Interest Rates i believe he said publicly to go up this year. He hasnt committed to do that. The markets have built in another expectation of about a 25 basis points rate cut sometime this year and while the fed hasnt committed to that thats what markets are suggesting might happen. In europe the ecb is committed to low Interest Rates as well. The head of the ecb has made it clear you cant lower Interest Rates much more and so to similar the european economy and German Economy you probably have to rely on fiscal moves which means more spending by governments as opposed to Interest Rates lowering. Nejra David Rubenstein, thank you so much. This is bloomberg green nejra the selloff continues. Another down day in europe after a wipeout and wall street. U. S. 10 year yield plums record lows. Muchutbreak could slash is is 500 million in sales. Dozens of companies flag mounting disruption. Disney departure. Bob iger hands over the reins to park chief. He will become executive chairman. This is bloomberg surveillance. We are assessing the reaction across markets the threat of coronavirus. European corporate debt risk jumping to a high on coronavirus. Red afteres in the they were in the green in the asia section session. The 10 year yield fairly steady after hitting that low. France saying it found three new cases of coronavirus and one dead. Lets get to the bloomberg first word news. A surprise shakeup at disney. Bob iger is stepping aside. The theme park chief is becoming the head of the worlds biggest Entertainment Company. Mr. Iger stays on his executor chairman through 2021. We have someone that not only ,nows the company very well including fox and resorts, he is also someone we know very well. I intend to double down on the same strategies bob has established 15 years ago that served us so well. One thing at take away from his legacy is get the content right and Everything Else kind of followed suit. To the latest democratic debate. Senator Bernie Sanders feeling the burden of his frontrunner status. All six rivals delivering attacks aimed to stall his momentum. Another focus of attack come Michael Bloomberg whos been rising in national polls. This after spending more than 500 million on advertising. Mr. Bloomberg is the founder and majority owner of bloomberg lp, the Parent Company of bloomberg news. Rio tinto refuses to set targets for reducing in missions of its iron ore customers. Its taken a stance on an issue fighting the National Resource industry. Instead rio focusing on its own operations. To be carbonnt neutral over the next five years and to make that happen its promising to spend 1 billion. We end with diageo. They will review sales by much three and 25 million pounds. This after bars and restaurants are shutting parts of china. The company saying its hard to estimate how long the downturn will last but its expected improvement later in the fiscal year. Global news 24 hours a day on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Nejra thank you so much. Lets focus on coronavirus and Latin America. Within the last hours a minute sao paulo has Parliament Early tested positive for the virus. The case be the first infection in the region. Lets discuss the wider economic picture with shelley, senior director and cohead of america Sovereign Rating station. Peter dixon is still with us. Welcome to the show, great to see you. 10 year treasury yield extending its slide, right now we sit on a 1. 3 to handle. What does that mean for someone wanting to invest in Latin American debt . The search for yield will be there and thats helpful for emerging mar