a massive retail deal reportedl in the making. and history in the making. at the 92nd academy awards it is is monday, february 10, 2020 "worldwide exchange" begins right now. snshgsz ♪ pk. good morning i'm dominic chu in for brian sullivan we had history at the oscars last night where south korea's "parasite" took top honors for a picture in a field that included quentin tarantino and martin sco sco scorsce. congratulations to "parasite" but i'm intrigued what that movie is all about here is how stock futures are looking this monday morning. we have movement to the downside ever so slightly 61 points is the implied open on the dow to the down side of these futures moves. the s&p off by five points and the nasdaq down by eight we had triple digit moves yesterday in the dow -- or or friday to the downside we'll see if that carries over into today's trading the bond market a big focus. we're seeing a slight downtick to yields, ever so slight. two-year note yield, 1.93% let us go worldwide. we'll check the early trade in europe seeing red as well all pretty much down, in line 1.5% some nordic markets in the green, but for the most part, red across the european continent. let's check out asia it was a bit mixed as well the shanghai composite was actually positive, but the hang seng in hong kong move to the downside and half percentage point to move down that brings us to our top story this earning month china is set to start getting back to work though businesses across the country remain closed today despite the government's efforts to restart the economy after extended holiday break over the coronavirus 910 people are now dead, making the outbreak deadlier than the sars epidemic in 2003. more than 40,000 worldwide are also infected. the ripple effects across the business landscape are continuing as well factories operated by foxconn, china's largest employer and apple contractor, remain closed after chinese authorities reportedly rejected its proposal to resume operations, citing fears over that outbreak now, this as e-commerce giant alibaba said it's extending its holiday break through february 16th, or perhaps even later. ali airbnb will suspend its bookings in beijing through the rest of february citing the outbreak for coronavirus is a concern and kia motors says it's suspending production at south korean plants due to parts shortages linked to the outbreak so, what does this all mean? our own eunice yoon is monitoring the situation live in beijing. as we talk about the movements for supply chain, technology and industrial manufacturing seems to be the most impacted. is that right? >> yeah, that's right. but a lot of factories in various entries are being impacted a lot today was supposed to bethe da when all of china was supposed to go back to work for most, that didn't happen what the companies are grappling with appears to be an uncoordinated restrictions as well as requirements that vary from province to province and city to city at the end of the day are leading to a lot of factories e being closed for the manufacturing power house guangdong province the factories are required to quarantine workers coming from other areas and also to source enough masks and goggles for every single worker. so, it's only after they meet these requirements that the factories then would have to try to get approval from the local authorities to reopen. also, some localities are changing their productions date. certain districts within guangdong are urging a delay zhejiang and in henan, where one much foxconn major apple phone factories is, they are delaying until february 24th. it's a really mixed bag in terms of the picture of what's happening around the country that said, some factories did reopen today i talked with ford they said today they reopened their plants in chongqing and guanzhou tesla reopened today that was covered a lot in the state press. in fact, the state press was showing how staff was being bussed into the shanghai factory and that each staffer was taking up one row and all of them, of course, were wearing masks i think, dom, what this really shows us is it's going to a lot more time -- at what point china gets back to normal. >> back to normal. it's safe to say it's not going to happen any time soon given the trajectory of the coronavirus outbreak there's also a sense right now that the people's bank of china stands ready and willing to do whatever it takes. not to steal a mario drahgi term, but they will do whatever they have to to keep the economy stable any chatter, any commentary as to whether they would add more liquidity to the system? >> as you said, the central bank made it quite clear that they are ready and prepared to try to support the economy. if that means stimulus in terms of liquidity, it's likely they would do so. beijing authorities have said they allocated $10 billion for the prevention and control of this coronavirus there's a lot of money being thrown at this problem from the top authorities because they want to get a handle on the situation because they can understand, as we all well know, the economic fallout and potential impact it could have around the world. >> eunice yoon live from beijing with the coronavirus. markets are back to pre-coronavirus levels after last week's 3% rally for the s&p 500. i'm joined by ceo chantiqua investors. have investors factored in the lasting effect of this swri russ and if so, it doesn't seem like they're that worried. >> if you compare coronavirus to sars on the impact of the chinese economy, you have to expect the impact could be larger at a time when chinese growth is slower when sars hit, chinese factories were significantly faster. if you have factories shut down, if you have travel that's effectively been, you know, contained and quarantines in various ways, cruise ships quarantines r that will have an impact and that will have follow-on impacts to other markets. anybody who's manufacturing in china, anybody importing from china. quite frankly, all of the commodity markets that support all of this. >> so, let's assume there will be some kind of an impact, that the markets are not pricing this in where exactly where the rubber meet the road? where will the most impact be felt what parts of the market, is it macro? is it treasuries, gold, currencies, or specific stocks, industries in the market that get hit hardest? >> the parts of the market that get hardest are already getting hit. you've already seen oil take a tumble on the idea that chinese demand is going to be significantly lower. industrial metals have had a massive impact in the last week on the back of this news and they were already in a weak space. energy companies that were supposed to have a big bounce this year just can't seem to get their feet under them. so, you're already seeing significant impact i think the place we haven't seen any impact is the tech space. growth continues to power forward even in sort of these mixed times in the s&p so i think that's probably the place where it's not really very well valued you still have highly valued companies in the tech space that have significant lingages to this. >> the latest there. technology could be a big impact we'll watch the oil markets swp. thank you very much. we appreciate your thoughts here when we come back on the show, a major retail deal reportedly in the making we have the exclusive, exclusive report coming up plus, history made across the atlantic and boeing had a major role to play a good story there and then later on, breaking down the data with fidelity. what their findings and data show and what it could mean for your portfolio or 401(k) a very busy hour still ahead when "worldwide exchange" returns. ♪ yes i'm stuck in the middle with you, ♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's the most open and secure public cloud for business. it can manage all your apps and data from anywhere. so it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. without getting in your way. ♪ ♪ high protein low sugar tastes great! high protein low sugar so good! high protein low sugar mmmm, birthday cake! and try pure protein delicious protein shakes that's a live shot of chicago, illinois, where it's 4:13 a.m. central time windy there in the windy city. welcome back to the show let's get a look at some of the other top stories we're following this morning kate rogers is here with those kate, there's a lot of news today. >> a lot of news today good monday morning, dom china is warning france against treating huawei differently from its european competitors when it comes to future 5g equipment contracts. in a statement released over the weekend the chinese embassy in paris warned a different treaty would be blatant discrimination and disguise protectionism the justice department is closing its anti-trust investigation into ford, honda, bmw and volkswagen, saying it sees no evidence of collusion among the companies in connection to a july agreement with the four automakers and california for stricter tail pipe emissions the trump administration had said the state can set its oe emission standards. and l brands is selling victoria's secret to sycamore partners in a deal that could be announced early this week. no word on what leadership role l brands ceo would be under. he has been under criticism for his close ties to jeffrey epstein. l brands also owns stronger performing bath and body works a lot on the victoria's secret and the investigation into the company's culture. >> perhaps listeners didn't see that the premarket move on l brands is up about 6% for those l brands shares. we would point out from a context actual point of view, if you look over the last -- the year-to-date period is up 30% but still down 12% over the course of the past one year or 12-month period. there are a lot of investor worries about the future of l brands >> not to be forgotten, bath & body works is doing well we talk about victoria's secret doing well but that part is doing well kate rogers, thank you very much. 20 years ago today, we take a look back at the rise and fall of one of the dot-com era's darlings and ask if history is doomed to repeat itself. you remember that sock puppet? 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every time it takes care of something for us, we celebrate. how often does that... got it. servicenow -the smarter way to workflow. welcome back to "worldwide exchange." let's get a check on our other headlines with phillip mena. >> good monday morning to you. democrats are lacing up this morning for a final sprint across the granite state with just 24 hours left to win over voters in new hampshire, the presidential hopefuls are campaigning around the clock for the nation's first primary according to "the boston globe's" final tracking poll released overnight, bernie sanders has a commanding lead at 27% support. pete buttigieg is in second at 19%, amy klobuchar surging to third after a strong debate performance on friday night. nasa's solar orbiter launched off from cape canaveral. this is another quest in the secrets to unlock the sun. the goal is to send back the first images of the sun's north and south poles. and feast your eyes on one of nature's wonders. a waterfall defying gravity by flowing in reverse you can see the winds whipping water up and over those hills. this happening in sydney, australia. it's caused by a trifecta of strong winds, torrential rain and flooding dom, back to you. >> stunning footage for sure great video. thank you very much for that update. straight ahead on the show, we are live in our nation's capital with the latest budget figures from the white house plus, instant market reactions to those numbers and why a new version of "back to the future" is going viral with a little help from elon musk. yes, elon musk later on, breaking down the data with fidelity, insight and analysis you won't find anywhere else all of that coming right up. man: can i find an investment firm that has a truly long-term view? 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>> as you said, the white house will release its natural budget today. and 4.8 trillion is not the only big number the white house is projecting the economy will grow at an average rate of 3% for the next 15 years that is almost double the forecast from the nonpartisan congressional budget office. it's expecting growth to clock in at 1.6 or 1.7%. the key difference is the trump administration's budget makes three big assumptions. first, that that's another big tax cut. the white house says a $1.4 trillion placeholder in its budget for what could eventually become tax cuts 2.0. second, it assumes interest rates remain low despite the stronger economy and, third, the administration is proposing $4.4 trillion in spending reductions over a decade with half of that coming to changes to popular social safety net programs they say the spending cuts coupled with the rosy forecast will allow it to eventually eliminate our trillion dollar deficit. even the trump administration says that can't happen in a decade the cbo takes 15 years. >> we've seen some initial numbers. what are the points that could be the most contentious with regard to how it will play out with lawmakers in washington, d.c. >> well, certainly the president's border wall has been one of the issues that has led to a government shutdown in the past this budget the president is also going to be looking for $2 billion in order to build the border wall. that could be a poison pill with any negotiations in the future broadly, this budget, the amount that the president is expecting to spend on discretionary programs, that number is less than the amount the president agreed to with democrats just last year. democrats are already saying that the president is reneging on his promise we know it's not a working policy document but it does tell you where the president's priorities are heading into this election year. >> the latest with the budget talks and budget proposal being put out there by president trump. let's get more reaction to president trump's new budget proposal joining me, tim seymour, also a cnbc contributor and "fast money" trader. let's talk about the budget. >> good morning. >> good morning, tim you saw some of the reports. you've seen ylan's story what exactly does wall street -- what exactly do exists think is the actual benefit or drawback from the potential budget proposals? >> talking about 3% gdp for the next 15 years is pretty extraordinary because the greatest economy of all time has never printed 3% under this administration so if you think about the world we live in today, the reality is maybe this isn't germane to long-term tax discussion but gdp rates are being cut to the united states, even though it's significantly lower from the rest of the world. the global economy is going to be 1.3% in q1. we know the headwind from coronavirus. i think the reality is projecting out gdp in the context of talking about that $1.4 billion tax cut holder is a very important dynamic for wall street it's a very important dynamic for thinking about the markets and the construct in the current administration into a political season when the market hasn't priced in anyone but trump at this incident positive i think this is more fuel for at least the current environment where with the fed sitting where they are and the administration sitting where they are, it's wall street positive. >> $1.4 trillion reserved for tax skuts a big deal we'll see if that can jump start any part of the economy at this stage. another big story for investsers is the coronavirus china is attempting to get back to work in some way, although some businesses remain closed despite the government's efforts to restart commerce and industry following that that extended lunar new year holiday sources say foxconn's factory in shenzhen remains closed after chinese authorities rejected its request to resume operations foxconn, a key manufacturer in the supply chain for apple so, is the economic impact not just on china but the world perhaps being understated if the technology and industrial supply chain cannot get back up to speed in a short amount of time? >> right that's the question. what are we talking about? i think the status quo has a dramatic rebound by mar