Exchange begins right now zb morning im Contessa Brewer in for Brian Sullivan we begin with breaking news on European Union gdp figures Joumanna Bercetche is with us. We just got the eurozone gdp numbers coming in at 0. 1 rise for the quarter that equates to a 0. 9 jump for the year so still above that 0 flat line detail on individual countries a lot of focus on german gdp coming in at 0 , so essentially stag nating but no recession year on year translated to 0. 4 for germany. France grew at 0. 9 , the uk at 1. 1 , the u. S. 2. 3 . So still very weak compared to other g10 nations. We are not seeing a huge reaction in markets. We are still ending the week on a positive tone. It has been a good couple of days the eurozone stoxx 600 going from record close to fresh record close in determine any, up 0. 2 , in line with the forecast gdp thats it for our eurozone gdp summup here is how stock futures are setting up after yesterdays more than 128point loss for the dow. S p futures are up 8 points, the dow up in the positive and nasdaq setting up for a green open as well looking at treasuries, you are seeing the 10year down to 1. 592 on a yield lets get to asia, shares seeing a record second week of gains. The japanese nikkei is off the hang seng, hang seng and kospi are off. The country reporting a sharp uptick in the number of confirmed coronavirus cases and deaths overnight rahel solomon joins us with more good morning. So the coronavirus outbreak showing no signs now of peeking with authorities today reporting more than 5,000 new cases and more than 120 new reported deaths. Adding more than 1,700 Health Workers had been infected with six of them having died as of tuesday. The minister issuing a new warning saying his countrys economy could slip into recession due to the virus already worse than sa are everyone s add that to corporate earnings Royal Caribbeans has canceled 18 cruises and joined carnival that warned its earnings would be hit. At this point, it is like, who is not impacted . I also think that now it has gone beyond china because of what we are seeing in these rising cases as well Health Officials are using that and predicting that the United States will follow suit with what we are seeing in singapore and how that plays out as these companies will be pivotal as we go to the Second Quarter lets get back to the markets. Right now, u. S. Stocks are pulling back from record highs investors are tracking potential fallout from the coronavirus major averages are still on pace for the second straight positive week lets bring in the managing director at tjm and cnbc contributor. At this point, we have seen so many analysts trying to game out coronavirus and its impact yet every company that comes out. We saw it yesterday with nvidia predicting 100 million impact to the bottom line how are you thinking about coronavirus and how it affects your in investments today . If you caught me three weeks ago, i would have said this is going to be a major impact and the uncertainty would drive the market down. A couple of things one, i think we can expect china to throw a lot of stimulus at the issue. T the dollar has rallied, stocks have rallied there might be a global thirst this is hugely a global problem. If every central bank is going to throw money at the property, it will end up as the cleanest shirt to use a met for we see the headlines come out. Cooler heads prevail, it seems like the stock market rallies with the dollar, the 10year and the gold how much of an arsenal does it have right now. It has lowered rates we saw them trying to ease back on repo yesterday. We saw how the markets reacted from that turning from green to red. How much of a back stock is there . I think if you heard jay powell speak on tuesday, he sounded unconcerned. The market, i dont think really believes it. The market has plenty left they can do the qe and knock the 10year down to zero there is still points between u. S. And germany, they have plenty to go they have anything other than asset prices my job is to look at equity markets and think about what will happen in the future. It could support the stock market and not the economic condition. You talked about this thirst for u. S. Dollar backed equities. What about gold now. It climbed the chart you are predicting 1,600 yes on the short term. I think it could go higher than that as well im looking to add longs in that the fed will come to the rescue. I think at the end of the day as we go forward, people realize that our rates cant really go up that high global rates are anchored low. Between the two, if we fear the fed will come back in and be dovish, i think there will be a thirst for nonfiat currencies in coin and even bitcoin can do well too but im looking at gold we are looking at oil at 51. 50, brant is at 56. 41 what do you think the impact is globally if demand is slumping globally because of coronavirus . I think it is and will continue to do so. We are seeing that push pull the push with Global Demand and the pull of potential of opec to jaw bone Prices Higher talking about production cuts. The confirmation for me will be when brent traits 52, maybe 52. 5 jim, thank you. Have a great friday. Great weekend. Thank you when we come back, apple trying to get its retail game in china back after a nearly twoweek countrywide shut down. And why shares of nissan are tumbling to 10. 5year lows and one money manager takes a i swipe at wework and the, quote, debacle of investment. A busy hour when Worldwide Exchange returns. 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I hope you have hot plans for valentines it is cold there 3 degrees with winds picking up to 15 miles an hour. I am not meteorologist but occasionally i play one on tv. Apple says business must go on reopening five Retail Locations today with limited hours, roughly two weeks after shutting down locations over virus concerns lets bring in tim lesko how can apple even game out when it is ready to start getting back into business they are opening some stores with limited hours what good does that do it is going to game out what is going on with the coronavirus. You have china changing the way they are diagnosing. So the numbers are starting to scare people a bit if you think about how large china is and how localized this is, it does make sense to be Opening Stores in other areas where commerce is starting again. People need to leave their homes. Maybe Something Like an iphone is uniquely qualified will succeed when people are trying to shelter in place to avoid contact. There is some need for the phone. So you think that the sales are coming, it is just a matter of when and not if. We know foxconn was ready to jump back into business and the government said wait, slow down there. It has slowly come back on line. How does apple try to manage those issues i think thats what apple has been good at the supply chain does the manufacturing from everything to the parts to the shipping. Apple can shift assembly to places like india and brazil where foxconn has set up other Assembly Lines this is a situation where it is not going to hurt apple but other cell manufacturers and Service Providers and also the wearable apple is pretty good at moving the supply chain around. Over the long haul, thats what apple is really good at. Citi sent out a note that said each week, no sales in china is a reduction of about 1. 3 how sustainable is that for apple . Is it a blip on the radar. When you have north of 200 billion on the Balance Sheet, it is not going to impact them being able 20 being able to do what they do. If you look at the cruise business or airline business, when somebody doesnt fly or fill that hotel room, you never get that purchase back when someone delays the purchase of their iphone to next month, it just delays that sale tell me how you are thinking about apple shares right now in a way, the market is trying to discount six months from now it may be that the coronavirus never gets fully corrected in the stock price of apple certainly, if you look at China Business as a whole, you can see maybe a 10 top line reduction that is not the end of the world for a Balance Sheet like apple as i said, it is just a delay in demand, not a disruption of demand thank you for joining us. 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Servicenow the smarter way to workflow. 19 minutes past the hour Nissan Motors is off 9. 5 , more than a 10year low as the automaker splashed its forecast. Nissan also will not pay a dividend sales dropped 18 where its once popular models have fallen out of favor nvidia has reported better than expected results above analysts estimates shares are rising as is it expects 100 million sales hit the guidance for the quarter was above expectations, you can see shares up. Pintrest is falling on reports that facebook has launched an app that looks very similar. The app called hobby lets users organize photos of projects and hobbies into themed collections. Pintrest is off on that news and potential competition. Still to come, a legal win for jeff bezos and co against the government the coronavirus and the impact on the phase one trade deal. Rks iscuss what it means for maetand a possible phase two when Worldwide Exchange returns. It begins by being privately owned. 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Right now, it looks like we are shaping up for a positive open on all three indices. Now the s p 500 indicated to open up. The dow jones opening up 53 and the nasdaq looking like it will open up 33 looking to the yield on the treasury the 10year is down to 1. 595 in terms of yield asian markets really lifting we have the nikkei down a half a percent. The hang seng and shanghai composite are in positive territory closing up about a third of a percent lets see what is happening in the early trade in europe where weve seen mostly flattish response to those gdp numbers. The ftse and the dax both in positive territory again, just a mild muted response to the flat line gdp numbers in europe. Rahel joins us with more. Amazon has landed quite a big victory in the dispute over microsoft being awarded the 10 billion defense contract a judge has ordered work to stop on the jedi contract microsoft was set to begin work on the project this month. Theyve criticized the ruling. T. Rowe price taking a swipe at the Office Space Provider calling it debacle and terrible. The invest in wework dropped 74 leading up to september of last year finally, huawei is slamming charges against the company. The chinese Tech Department says the charges of stealing trade secrets are an attempt to damage its image. Trump administration is filing for an extension the saga between huawei continues. Never ending. Sticking with china, the country reporting a sharp uptick in cases and deaths overnight another Company Issues a new warning surrounding the outbreak eunice yoon joins us now from beijing. What is the fallout here Royal Caribbean is warning of trouble ahead for the year it canceled 18 cruises set to sail in Southeast Asia saying that move cuts shares by 65 cents. If it has to pull the rest of its sailings scheduled for april, that would knowledge another 55 cents from its eps. This comes as singapores Prime Minister said he couldnt rule out a recession. He said singapore is bracing for what is called significant hit with flights cut to a third in a place very dependent on trade and tourism. Because of the virusout break, there are a lot of economists that say that could reach as much as 100 million in beijing, business is attempting to get back to normal apple opened five beijing stores with limited hours of seven instead of 12. Using the same prevention and control measures everybody funneled through one entrance and through Health Checks there was a lot of traffic but not what you would expect for an afternoon of valentines in china. Is there any anticipation how long the ramp might take to normal business . No. I think it is really unclear because the numbers are unclear. The efforts by the government to try to stamp out the virus is also unclear people want to go back i think there would be pent up demand a lot of people in the store saying they needed to repair their gadgets or they wanted to buy new things because they just dont feel safe yet, we dont know about the timing of it all thank you for the great reporting there. Amid the joongoingout reak, the phase one trade deal is set to go into effect today. Roberto brian suggesting the the virus could reduce u. S. Purchases this year. And Steven Mnuchin echoed that sentiment during testimony our biggest focus is implementing phase one that to a certain extent has slowed down given the virus, as expected i think the good news, phase two, we have the entire phase two chapters dealt with. We may roll them out as phase two, a, b, c, d. It doesnt necessarily have to be a big bang. Im joined by my guests good to see both of you today. Tina, it is not just agricultural purchases, china has made huge commitments in terms of oil weve already seen demand slumping is there any chance they can keep up with commitments ahead of this massive outbreak we have to be prepared for a slow down as we heard from secretary mnuchin in terms of how this deal would be implemented. The extent to which the coronavirus is not something who is in anybodys 2020 forecast and now has the potential to be significant negative trigger both for supply chains and the Global Economy should tell us a lot. They have really pushed this trade deal off the front pages give me a sense of how you put phase one into perspective going into effect today and how you push out going to a phase two . Coronavirus really takes a lot of the impetus off there is a lot that has to happen with phase one. We are finishing the deal, pushing it into effect now we are not talking implementation or china. It