presidents have been saying over the last couple of days, most recently dallas fed president robert kaplan. semiannualhe monetary policy released today. anything that doesn't come up will be addressed next week in jay powell's testimony on capitol hill tuesday and wednesday. just some of the headlines, the coronavirus may lead to disruption spilling into the global economy. foreign political and economic develop and pose a risk to the united states. the global slowdown in trade and manufacturing is nearing an end. i think those are the three major headlines from this semiannual report. let's check u.s. markets now because they have been dominated by the nonfarm heroes report today, and maybe some earnings -- nonfarm payroll report today, and maybe some earnings. the s&p 500 is down 0.4%. the dow is down 0.75% right now. there's only four components in the dow higher. itself is the worst performer. , 98.53ger dollar today for the dollar index today. the 10 year yield is 1.58%. guy: you could maybe get the idea that there is a greater potential for it to cut, which in theory, could be good for stocks. but may be actually, this is something different. here in europe, let's take a look at what the situation looks like. we are down when it comes to the stock market. the fed is talking about the manufacturing story bottoming out. you ain't seeing that in germany right now. industrial production data certainly not pointing to that sense of stabilization. germany potentially on the edge once again of recession. we are seeing a bid when it comes to the greek bond markets. for those who witnessed the epic rise in greek bonds, we are now flirting with greek bonds going sub 1% when it comes to the 10 year. let's talk about the semiannual monetary report, plus that german data. patrick armstrong, kurumi wealth wealth cio,mi joining us now. patrick: the u.s. economy is driven by the u.s. consumer. they are fully employed, getting wage growth. 1.9% of the u.s. economy is driven by the u.s. consumer, so you have to have something that really disrupts consumption. guy: coronavirus. could that be the story that ends up ultimately disrupting that picture? patrick: it is a wildcard. right now it is not having any impact on the u.s. consumer. it would have to continue for a number of weeks to really move out of china. right now it is terrible news for china, hong kong. for it to get to the u.s., i think you would have to cielo more spread. i think we are seeing so many things. today i had to send in email saying if i have been to do china. you see hand sanitizer everywhere. the first two weeks, it spread very quickly. you might be seeing some signs of stabilization. i am obviously not an expert in viruses by any means, but these things do tend to pass. how concerned does it make you when we see headlines out of the fed saying things like this? if china saw significant distress, it could build globally. the virus may lead to disruption spilling into the global economy. if china has to downgrade its growth forecast to something like 4.5% from 6%, that would seem to be significant distress, no? patrick: definitely for the chinese economy. you have to thing about what the chinese economy's impact is on the u.s. economy. u.s. exports raw materials that china manufactures with. you have seen copper and oil prices hit hard. you have seen a resilient equity market in the united states and he developed world. that is probably fairly justifiable as well. if china take a hit, the u.s. consumer, i am not shows were -- i am not so sure that coronavirus will have an impact. it might even be a bit of a boost with lower costs. vonnie: ok. so if all of that is to be taken into account, then perception is what matters. if the fed comes out and says coronavirus is under control, it doesn't appear there were massive spillovers, then does everybody suddenly get exuberant again and affect the market that way? patrick: exuberant is maybe what we are in right now. we have seen bonds rally in, equities rallying, gold rallying. people are nervous that you cut safe havens going up as well, but it is a sign that it is liquidity. it is not about fear, not about greed. it is about liquidity. that has been the driver over the last 18 months in markets. the fed has been increasing its balance sheet. it is pushing people into assets, pushing people away from cash. everything is rising right now. guy: does that make you nervous or not? patrick: i'm nervous about it. i am a reluctant bull right now. you've got very lofty valuations in the united states. u.s. equities are buying companies trading at 26 times earnings. these are companies that big premiumhave right now. regulations and demand push-up demand for products, but also shareholders. you see so much demand from pension funds who want to own it, being forced to own it. you have maybe even the foundations for a speculative bubble in esg right now. guy: is tesla the precursor to that? patrick: it could be because that is definitely part of it. it is not the only thing on tesla, but it is part of that sustainability. they liked the aspect of owning a tesla, of owning the stock. they like to talk about it. it pushes things beyond the fun a mental's -- the fundamentals. guy: i read somewhere today that tesla needs to have the volume of volkswagen and the margins of apple to justify the current valuation. patrick: if it is only a car company. if it is licensing out its automatic driving and things like that, there are other streams that tesla could monetize. guy: patrick, stick with us. patrick armstrong droning us from plurimi wealth. vonnie: equities are headed lower. let's get why with kailey leinz. kailey: it seems that strong jobs in the u.s. were not enough to support risk assets today as concerns about the coronavirus really put a damper on the rally we have seen. the s&p headed lower for the first day in five. the dow down by about 180 points. in europe, the stoxx 600 lower by about 0.5%. if we happen to the terminal at gtv and take a look at the nasdaq 100 and s&p 500, the s&p on pace for its best week since june, the nasdaq for its best since november 2018. when you look at the moment to him indicator on the bottom panel, we are not an overbought territory despite the rapid run-up we have seen this week. we are still below key levels on those indices, which could suggest we will see more gains to come. we have some stocks moving lower today, one of which is take-two, the videogame company. the fourth quarter forecasts really disappointing. on they pinning blame coronavirus, saying it significantly impacted its business in china. that stuck down by about 4%. wynn resorts as well, lower by more than 4%. the company losing $2.5 million a day because of the macau shutdown related to the coronavirus. finally, norwegian cruise lines lower by the better part of 5%. docked inat a ship new jersey is showing signs of coronavirus. the commodity complex, after a very brief rebound, is lower again today. copper futures now down around $255, and that is weighing on freeport mcmoran. six10 year yield lower by basis points. vonnie: thank you. coming up, our conversation with author thomas piketty. what he is proposing to do to tackle income inequality. this is bloomberg. ♪ ♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." let's get the bloomberg first word news with courtney donohoe. moreney: in new jersey, than two dozen passengers who recently traveled were china looking for symptoms of the coronavirus. four are being evaluated in the hospital. president trump has be back a lawsuit that has to do with his washington hotel and other properties. the suit claimed the president violated a clause of the constitution by profiting from foreign government spending at a hotel. for federal appeals court says the numbers of the house and senate like the standing to sue the president. there was a heated phone call between president trump and british prime minister boris johnson. bloomberg has learned the president berated johnson in a dispute over china's huawei technology. president trump spent months trying to persuade the u.k. not to allow huawei to help build 5g networks there. he wasn't happy that johnson defied his demands. democratic presidential hopeful pete buttigieg and bernie sanders will meet fates to face on the debate stage tonight in new hampshire. their virtual tie in the iowa caucus sets them up as co-frontrunners in the all-important new hampshire race. joe biden and elizabeth warren are likely to go on the offensive. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe. this is bloomberg. guy: let's get back to that big story, the shakeup at credit suisse. ceo tidjane thiam ousted after a power struggle with the company's chairman. associates of harris told bloomberg he doesn't think the move goes far enough. david: for now, the chairman should be replaced. the chairman should be replaced. if he really cares about the organization, if he really cared about credit suisse, he would step down as chair. guy: david had been a big supporter of tidjane thiam. is our us from zurich correspondent who covers the swiss banks for bloomberg. reporter: this was a bit of a shock, i would say, how quickly things moved. we did know there was some tension between the ceo tidjane thiam and the chairman, errs roeher -- chairman, urs ner. we learned there has been an escalation of tensions coming from the fallout of the spying scandals that had plagued credit suisse since september. vonnie: what exactly happened here? did blackrock win out over the hedge funds who may be most focused on shorter-term gains? ision: i think a lot of this stemming from just how people are supporting the ceo or the chairman. when we go back to the start of all of this with the spying scandals, i think a lot of international versus local investors and shareholders had different views of how the scandal was handled and who should be held responsible. at first, both were exonerated, but as more cases came out, there was a bit of a rift between whether someone should have been held responsible, and i think in this last week we have seen those international shareholders, david herro, for example, come in support of the ceo who had really saved the has seen the board some mistrust start to develop between the board and the management team, so it has come to this conclusion where, for them, it was absolutely necessary for a change in management. guy: let's talk about the guy that is going to replace tidjane thiam. very through and through swiss. does that indicate at all, in any way, that this is a bank that is retreating from its international footprint? can i read anything into his appointment about future strategy? marion: that has been a big question from analysts, investors. i don't think we should be reading into it that way. i think that they are very much sticking to a strategy of international wealth management. i think analysts and investors have been very supportive of that strategy. the chairman himself has been supportive of that turnaround to thiam putt turnaround in place. i would expect gottstein to follow through with that strategy. guy: thank you indeed. er joining usrmey from zurich. vonnie: with us still is patrick armstrong, plurimi wealth cio. would you start to be interested in them now that there is such a shakeup? patrick: we like bank bonds more than bank equities. in the past, we have owned bank equities, but you are getting similar yield on the bonds, but much more likelihood you're getting paid. banks are being punished by negative interest rates. when i was more optimistic on the bank equities, i was expect and the ecb to normalize interest rates. that was a plan we thought might happen last year, but clearly on the wrong side of that one. guy: utilities are the best performer in europe this year. can we get away from this defensive bias built into these markets at the moment? patrick: very hard. if you are a bond investor in europe, you've got to look for alternatives. if you look for low risk, you've got utilities, you've got real estate stocks, bond proxies are attracting a lot of money. very expensive, but maybe justifiably so given the background of central bank policy. anything that gets you a bit of a yield is going to attract capital right now. guy: we greatly appreciate it. patrick armstrong, plurimi wealth cio. withg up, our conversation london school of economics professor thomas piketty. this is bloomberg. ♪ ♪ guy: from london, i'm guy johnson. vonnie: in new york, i'm vonnie quinn this is the european close on "bloomberg markets." guy: the economist thomas piketty's last book drew the world's attention to the problem of growing inequality. , "capital andbook ideology," he proposes a solution. he joins us now. is that true? thomas: that's an interesting summary. it is a very readable book. easy to read. guy: can i just show everybody? it's a big book. thomas: but there are so many things we do every day that are not so useful. i think reading books and this kind of book is useful. i think people can draw a different conclusion. the first book is about the history of inequality in a very large set of society. my previous book was very much on western europe, north america. this talks about the evolution of inequality in india and brazil, latin america, china. it takes a much more global perspective, which i think is necessary if we want to understand the challenges of today. guy: it a much more per local book -- much more political book. it basically talks about removing wealth from the rich and delivering it to the poor, not to the poorer parts of giving the money at 25, providing a minimum wage around 60% of the average. this is a big wealth transfer into are talking about. you're talking about taking a lot of money away from the rich and distribute get to the rest of society. thomas: keep cool. guy: i'm cool. thomas: this is the story of our economic prosperity during the 20th century. it came from a huge reduction of inequality. if you look at the past century, but we have seen is enormous reduction of inequality that has ,een achieved through education through progressive taxation, and indeed, the experience whereby in the u.s., starting in the 1920's and 1930's well until 1980 -- guy: and then you get reagan. thomas: the top income tax rate in the u.s. was, on average, 82%. it did not destroy american capitalism. what i do in this book is to try to bring a lot of historical evidence showing that in fact, it worked pretty well to reduce inequality but also invest in public infrastructure and education, which delivered more economic prosperity. there was a discourse in the 1980's by reagan saying we are going to reduce the tax rate, and this is going to stability more innovation. this could have been right, but 30 years later, but we have seen is a growth rate in the u.s. after the reagan term, today, you have lots of people in the middle and lower social, groups who feel that globalization has not been working very well for them, and now they turn to nativist solutions. building a ball .ith mexican workers this is very frightening to me because this is not going to solve the problem. you have seen rising inequality and not gross performance. so what works better in the. of time -- in the period of time? i don't ask you to agree with me about everything, but just to have a look at the book and the .istorical evidence vonnie: i might suggest one expropriation might be another persons redistribution. can i ask you about the president's trade policies? he might say he is involved in this trade war with china in order to distribute wealth from chinese labor back to u.s. labor. is that an outcome? thomas: if you wanted to redistribute, he should first disclose his own income tax return, explain how you will stop paying more tax. this is a president who wanted to repeal the estate tax. i don't think this kind of policy is going to reduce inequality. donald trump is not too much interested in history and historical evidence, and i am not too optimistic about him .eading this book but i've tried to make some distance with the current political debate and look at history. not reallyo me is the way to reduce inequality. i believe more in income tax, wealth tax, and importantly, investment in education, public infrastructure. you cannot get prosperity just out of a few billionaires or a few public universities doing very well in the united states. you need a much more inclusive growth and investment if you want to rebound and to have a longer sustainability of u.s. economic growth and world economic growth more generally. vonnie: in the race for the democratic nomination, we have basically two tracks of people which would broadly be considered more centrist and more left, but to the rest of the world, the left of social democrats and others may not even be considered that radical. if you look at isla and the iowa caucuses, you see that bernie sanders and pete buttigieg were neck and neck. what does that sit just about the u.s. voter and whether they are voting their own interest? thomas: well, there is clearly a lot of hesitation among u.s. voters, but it is striking to see that with the votes for sanders and warren, you have almost half of the electorate supporting a program of redistribution with a proposal to create a federal tax on billionaires in the u.s. and net wealth of more than $50 million in the u.s. you have an increasing minimum wage and invest in public universities. you did not have these proposals even four years ago. i had a public meeting in boston with elizabeth warren. at the time, the progressive wealth tax was something she was not explicitly proposing, and neither sanders was proposing this. changing, partly as a response to the description of growing inequality that needs a response. you cannot continue business as usual. there's one possibility, which is to control the movement of people, to control immigration. this is the trump way, the brexit way. you build a wall. and there is the other solution, which is to control capital a bit more, to control the circulation of investment and ask for the recirculation of capital and investment. a more equitable tax system. i think this is by and large a theer way not only to curb rise of inequality, but also if we think of the limit challenge and plummet change more. we need international solutions the nationalist retreat and identity politics that trump and boris johnson are promoting is not going to help the big challenge we will solve. i'm trying to promote an international solution to the problem. at the same time, you have to change the way globalization is organized. you cannot continue business as prices,llowing following brexit following the shock that will come from -- propertydo you obtain rights where you are looking at a situation with a wealth tax that goes wrong way. you are looking at asset deterioration in prices once you start to go down this road. ultimately, how do you maintain property rights if you're going down that road and a long way down that road? century,uring the 20th we had a progressive tax system, 80% to 90%, wealth in the united states, but the property right system was functioning perfectly growingthe economy was faster than anything we had since the 1980's. it can work. the problem is access to more people, to education, to property, i talk about how you right to all. population0% of the reads very little. i show that by using progressive items forn finance all at 20,000 euros at the age of 25. it is not complete equality. zeroe who used to receive will now receive 120,000 euros. received one billion will receive 160,000 euros. i think all children can have economic projects to create companies. this is one way to change the distribution of profits in society. it benefits the overall growth and dynamism you have in society. society,st educated you need a broad participation to the economy and for this access to property together with access to education is absolutely fundamental. guy: you're not talking about big government. this is redistribution to the population. thomas: to the population, absolutely. if you want to administer an education system, this needs to be well organized with proper organization. as far as wealth and property is concerned, i do not the government to step in. most of the wealth has to be private. it has to be more equally distributed. i want everyone to access private property and i think this is what we need to get a more vibrant economy. idea that someone has made a someoneat the age of 30 to keep all the power at age 50, 70, 90, and have all voting decisions. guy: talking about anyone in particular? thomas: i think we live in a world where many people have lots of ideas and you do not want to concentrate the decision-making power in a small number of godlike billionaires. they are nice and good people, but there are lots of nice and good people. you need circulation if you want to get the economy going. vonnie: does any society have to several of the things that would like, good conditions for its laborers and good gdp growth and sustainability and a deficit that is not crippling? can a society have all of those things? thomas: to some extent, yes. i am not talking about complete equality. i think with the label of inequality we have to date we can have reduction of inequality and more growth. it is also important if we want sustainable growth, to change the way we measure growth. in the book i tried to use national income as a source of gdp as an indicator of progress. the big difference is national income is equal to gdp, capital income going abroad but also my capitalption of resources. if you take 100 billion euros and put it on the ground, you get 100 million euros in gdp but zero national income because you continue the stock you already have. pressure onrease earth to make life unbearable, if you take the price you are taking a negative national income than positive gdp. depending on how you measure growth and how economic decisions and policy conditions are indicators, you can have a different definition of what we do. yes, looking at the distribution of national income -- guy: thanks for stopping by to see us at bloomberg. thomas piketty, political economic and author. his new book is "capital and ideology." we will go from thomas piketty to the president. president trump: we will see what happens. i said it was a terrible thing when she ripped up the speech. first of all is an official document. it is illegal what she did. she broke the law. i have not been asked the question other than a lot of people that viewed it cannot believe she did it. i thought it was terrible, i thought it was very disrespectful to the contrary. i got very high marks on the speech. i did not know she did it until i was walking out and some of the congressmen and women were saying can you believe what she did. i did not know she did it. >> [inaudible] pres. trump: i think there is a lot of evil on that side. they have gone totally crazy. i have got lots done, more than anyone has gotten done in three years by far. they are not constructive people. [inaudible] work withp: i do democrats, i work with everybody. they say trump derangement syndrome, they have a bad case of it. that was on display the other night when she ripped up the speech. that was terrible. it was so disrespectful to our country actually very illegal what she did. >> [inaudible] pres. trump: i gave the answer. >> [inaudible] does the administration intend to go after adam schiff? pres. trump: we just came out with fantastic jobs numbers, i think it was 230,000 or thereabouts, which was much higher than projected. jobs continue to be great, our country continues to do great. i am now going to north carolina, some of you may be are coming. the jobs report just came out. it is great. >> [inaudible] pres. trump: no. these people are their own people. i am not their boss. i do not think they have done anything as far as i know. it is sad what happened with the bidens, and it is also sad how he is doing, how he is doing in the polls. now i understand the votes are fried in iowa. they cannot even take a simple tabulation. yet they are telling you how to run the country and how to run health care. i think they fried their votes. think of all the money the democrats sent, and the votes are fried. they have no idea who one. they have no idea. i will tell you who one on the republican side. they accounted for every single vote, and it was a lot of votes, it was a record-setting number of votes. trump won. threat,s the bigger pete buttigieg or bernie sanders? threat,s the bigger pete buttigieg or bernie sanders? pres. trump: they are essentially tied. they cannot keep tabulation of thereabouts. everybody is a threat. i view everybody as a threat. i even view john as a threat. you never know. >> are you concerned china is covering up the spread of coronavirus? pres. trump: no. china is working very hard. i had a good talk with president xi and we talked about the coronavirus. they are working hard and i think they are doing a professional job. they are in touch with the world health organization, cdc also. we are working together. world health is working with them. the cdc is working with them. i had a great conversation last night with president xi. it is a tough situation, i think they are doing a good job. there you concerned about intentional attack on the global economy? pres. trump: i think china will do a very good job. >> [inaudible] pres. trump: they should, because it was a hoax. that is a very good question. should they expunge the impeachment in the house? they should, because it was a total political hoax. countryo you unify the in this moment? pres. trump: you know what will unify the country? all you have to do is look at our crowds and look at our support. what unifies it is the great success. our country today is more successful than it has ever been. that unifies the country. >> [inaudible] president trump making remarks just a short time ago as he departs the white house for an event in north carolina. buttigieg,ut pete the democratic nomination process, and of course iowa. guy? guy: let's find out what else is going on. the president touching many of the issues we've been focusing on with the bloomberg first word news. courtney donohoe. courtney: more evidence of a durable labor market in the u.s.. this is a better-than-expected 225,000 jobs in january. the december numbers were revised upward. isnwhile the employment rate still close to the lowest mark in half a century. pete buttigieg and bernie sanders will meet face-to-face on the debate stage this evening in manchester, new hampshire. their virtual tie in the iowa caucus set them up as co-frontrunners in the all-important delegate race. joe biden and elizabeth warren likely to go on the offensive after disappointing performances in iowa. heavy rain trenching parts of the fire and drought stricken australian east coast, causing some flooding in sydney and bringing relief to firefighters still dealing with dozens of blazes in new south wales. 17 of the fires are not contained. the blazes have killed at least 33 people and destroyed 3000 homes. in germany, another sign the manufacturing slump is not over. industrial production resumed its decline in december. it fell 3.5%, the most since the global financial crisis. germany has been battered by trade tensions and brexit. plus the challenge posed by climate change has involved the auto industry. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am courtney donohoe. this is bloomberg. guy? guy: thank you very much, indeed. we are through the auction, which flew the day, through the week. let's take a look at how the majors have settled in europe. these are the main market stories. the cac 40 outperforming some of the french banks. some of the oil stocks and some of the luxury stops not performing well. the cac 40 only down .1%. half a percent through the ftse 100, half a percent through the dax. this is what the session look like. these are some of the individual names that were in focus today. credit suisse finish the day higher. -- is amazing, talking about taking stakes in nokia in the united states. interesting to see how nokia and ericsson traded on the back of that. a down day for norsk hydro. we are watching closely what is happening with the global economy. norsk hydro trading down 12% in the middle space. we'll carry on the coverage in the top of the hour on bloomberg radio on dab digital radio. you can find the cable show in the london area. jonathan ferro is in new york. i will be joining him in london. this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. guy: from london, i'm guy johnson. this is european close on bloomberg markets. time for our stock of the hour. for a yacht hurtado is here with details. is here withrtado the details. viviana: our stock is canada goose. saying coronavirus is having a material impact. it is the latest retailer to cite loss china sales as a reason to/-- as a reason to slahs its 2020 outlook. chinese consumers are staying away from stores because of the coronavirus. look at the slash to guidance. previous fiscal year guidance was 20%. now it has been cut to 15%. is growth you can also see slashed. 58% of revenue is coming from non-canadian currencies. if we were to break out revenue by region, asia makes up 20% of the revenue. it is important to further drill down because the last quarter, revenue and asia double before the outbreak and that shows the region is a strong growth driver for the future. canada goose is just one of the stops taking a hit. if you were to look at other luxury brands, we have been reporting on bloomberg that burberry slashed its forecast because of the virus and 15 of the 16 s&p apparel index are falling. major -- loses a major group of customers because of travel restrictions. it is not just e-commerce, and not just in china, but major european and american shopping destinations. that is your stock of the hour. vonnie: time pure latest bloomberg business flash. a look at some of the biggest business stories. it is the battle of the exercise bikes. soulcycle's owner is getting funding from private equity firms so it can take on pelto n. the term is not disclosed, but equinox plans to increase just introduce a soulcycle bike which would be a direct challenge to peleton. that is about five times as much as the hfr index global index gain. shakeup at ford after disappointing forecast. tim farley will become chief operating officer. the other president is retiring after 19 years with ford. poul singerestor has a new target. bloomberg has learned elliott management has a stake in japan's softbank group. softbank is one of the world's most undervalued companies. shares were up 8% in tokyo. that is your latest bloomberg business flash. coming up, is our global battle of the charts. this is bloomberg. ♪ guy: it is time for our global battle the charts. you can see the charts on bloomberg running gtv . kicking things off is jessica summers. jessica: i want to take a look at the weakness we are seeing in the oil market because of the coronavirus. we are looking at brent spread. you can see it's april contract is trading at a $.35 discount to its may contract. that is the deepest in more than a year. the effect of this is quite interesting. what we are hearing from traders is that usually this market structure will make it profitable to store crude etsy, but right -- just door crude at sea, but right now it is so small it is not enabling them to cover costs. if this does deepen, we will see more floating storage. vonnie: jessica, great chart. guy, you're up. guy: let's talk about payrolls, phillips curve, inflation. the markets are not ready for inflation -- you can understand why. take a look at the preferred measure of inflation that is used by the fed. that is pce. that is the yellow line. it is down at 1.6 cents. through,ee wage growth and we are seeing a strong employment picture. at some point you could argue the phillips curve will come off its deathbed and start to revive itself and start to generate headline inflation, because other measures of inflation at the moment are pointing to a stronger story. they are not massively stronger, but at least there is an upward trajectory, particularly when it comes to cpi in the united states, which we are starting to pick up. the other one i was think about paying attention to his u.s. cpi. this is urban cpi x food and inflation. that is north of 2%, around 2.3%. keep an eye on inflation. it is something can griffin is arguing you should pay attention to. it is slow right now, but if you look at what is happening with deglobalization, if you look at what is happening with the story surrounding unemployment in the united states, and that is having potential to generate inflation. it is certainly worth paying attention to. it is very low right now -- will it stay there? lee ainslie of maverick, the big hedge fund manager was also saying something similar earlier this week. it is one of the thing that cups him -- that keeps him up at night. in this case, it is a tough one. since we did have an oil winner yesterday, i think i'm going to award the battle of the charts to guy johnson. guy: thank you very much. vonnie: very strong running outperformance with jessica. well done. coming up in the u.s., "balance of power" with david westin. he will be speaking with presidential democratic nomination seeker tom steyer ahead of the new hampshire primary. that is coming up in "balance of power." we are off our lows but nevertheless it is a down friday for u.s. equities. this is bloomberg. ♪ david: from bloomberg world headquarters in new york to our tv and radio audiences worldwide, i am david westin. welcome to "balance of power," where the world of politics meets the world of business. we will start today with the coronavirus, something the fed said presents a new risk for u.s. economic outlook. they put that in their semiannual report to congress released just over now or go. we turn to our colleague reporting from hong kong. give us the latest. how big of risk is this for the economy? sophie: the fed did note downside risks to the u.s. economy have eased. it became the latest central back to flag the effects of the krona -- of the coronavirus on the u.s. economy. this is the sheer size of china's economy. in 2020 chinese gdp is said to account for 17% of global gdp. we have seen several economists lower their forecast for the u.s. with many maintaining a trade. also the