In services, we saw our first contraction, and that has put jitters into the market, not least of which, into the treasury market. We saw the 30 year yield hit a record low190 1. 90 and change. Guy this is what is happening in europe. Stocks are down. You are seeing around the world. The fear is definitely there when it comes to what is happening with the coronavirus. The data out of united states. Has comen tenyear back to unchanged right now. We are seeing a bigger reaction on the u. S. Curve, but curves are flattening, and that is a factor. The pmi data in europe was actually ok today. What you have seen as a result is the u. S. Pmi data has been a significant squeeze in eurodollar. Onedollar now trading at 1. 0854ight cents at now. Vonnie lets get to bloombergs Sophie Kamaruddin. She joins us from hong kong. What is the latest . What are authorities telling their citizens . Sophie we saw some revisions upward. Hubei province upping its count for the past two days, increasing confirmed infections and 775, which has raised the count to 62,080 eight. Nationwide, china provides its five prisonsclude in three provinces. Shandong in particular, those numbers were flagged as concerns by the who, along with it pick pickmbers we have seen for in numbers we have seen for iran. Uae, italy, and israel also confirmed more infections. As to what china is telling its citizens, we had commentary from policy makers this week indicating they will provide more support, monetary and fiscal support, and that juncture citing a politburo saying it does not see a turning point in the outbreak. Guy can i take you back to the news on shandong, the region the double uhf cited . This is a coastal the region cited . This is a coastal region, so it probably has greater links to the rest of the world. Sophie there was a concern that there would be a pickup inside hubei province, so by highlighting the increase in shandong, there is an economic angle here to consider when it comes to sectors that could be orected, along with activity consumption in that region. So far, we have seen that there has been lackluster energy demand, indicating that the economy has not restarted to the point that chinese authorities would like. Bloomberg economics saying that the economy is running at just about 60 capacity right now. Vonnie Sophie Kamaruddin, it seems like we all need a little more patience. Thank you for that. Guy we are also just getting news that there will be a 5. 1 magnitude earthquake in southern xinjiang, china, something potentially worth keeping eye on. Lets talk about other data from around the world having an impact on the economy right now. In europe, pmi data seem to suggest the economic recovery is still on track. However, the headwinds are certainly growing. This is what the ecb chief economist philip lane had to say on the impact of coronavirus. The big forecasting headache is the virus, but in the base case where it is concentrated in the first weeks and months of 2020, this does not particularly have implications for the key mediumterm element of our forecast, which is what drives our Monetary Policy assessment. Monetary policy assessment. Guy he spoke to bloomberg a little earlier on. Going us now, patrick armstrong, chief Investment Officer at plurimi wealth. What is your gut feeling at the moment about what is happening here . The market is starting tos starting to get more jittery. We are struggling to understand the economic impact. Philip lane referencing the headwind. We are seeing more Companies Come out and talk about it. Of us your assessment of where the market is and where you think the story is developing. Patrick i think treasuries are probably a bit too pessimistic right now. They are pricing in structural stagnation, recession. I think it will be a big hit to hong kong, australia, may be all of asia. I dont think western consumers are going to be hit particularly hard. There is supply chain disruption, but i dont think Consumption Habits and the west have been changed as of yet. China, you can expect a big hit to the q1 economy. You will see a big hit to earnings. Retail companies in china will have earnings decimated. To bedont think it translated into a western recession. I think 30 year bonds right now are saying structural stagnation. Love, we like, we dont but given the alternatives, we are still invested in stocks. We have a pretty neutral allocation towards equities. We are overweight japanese equities. That is one area we see some value. Old airbus and bought pharmaceuticals. Japanan oncology play in on earnings. Equities are expensive on any measure you look at pretty much, except when you compare them to bonds. Hard to find alternatives. Weve got 7 weight in gold. Weve now got some platinum. You talked about palladium. I would switch away from palladium to platinum right now given the prices. Vonnie how low do yields go . Does it take out any fear that the fed might have to move in the First Quarter or two given the coronavirus . Patrick it is hard to say with yields right now. People feel safe in 30 year yields, and they are as long as yields are dropping, but they are very volatile. If you get any rebound in yields, there is significant capital loss. It is riskfree if you hold it to maturity, but if we get past this phase where theres a lot of risk spreading, if we get into q2 and theres not a huge amount of western economic 1. 9 of theds below 30 year are too low. I still think the fed is on hold for this year. That is their base case now, unless you see u. S. Consumption being hit. I dont see why the fed has to cut rates. Vonnie where is the dichotomy . Records if at stocks are at records and bonds are also at records, which outlook is correct . Patrick i dont even know what it is. It is liquidity. For march 1, gold is up 23 . The s p 500 is up 24 . 20 year Duration Bonds are up 24 as well. Everything is rising on exact same amount. Every investor is flushed with liquidity and has to find a place to put it. All boats are rising based on liquidity, even though they are very divergent Asset Classes that should be driven by different macro factors. Guy where is the liquidity coming from . At some point, the fed is going to turn the top off when it comes to bill buying. Patrick thats part of it. If you have no cost of borrowing, you can put that money to work in markets, investing, and that is true of investors, of Companies Buying back shares. Zero rates are liquidity. Guy liquidity driven events tend to end quite badly. Patrick they do, all at once. You dont see it coming. For me, i characterize this as a liquidity driven rally. Guy you are comfortable right now . Patrick ive got gold because i think monetization of debt is the endgame for the western world, basically. If youve got low Interest Rates we are not able to get away from, liquidity wont always be there, but i think there will be inflation created at some point. Equities have moved into regions which are at record valuations, so japan is trading in the 40th, 50th percentile. The s p is at the 100th percentile by most measures we look at. Guy patrick, stick around. Vonnie lets get a check now on global markets. For that, we get to kailey leinz. Kailey it is a decidedly risk off friday. Investors rushing out of equities and into safe haven assets amid growing fears on the coronavirus and weak data in the u. S. , with the first pmi contraction since 2013. That took the dow down by about 220 points, the s p 500 off by 1 , and the nasdaq down by about 1. 3 . Stocks lower in europe as well, but potentially more notable action today is in the bond market, with the 30 year dropping to a record low amid virus concerns and that data. If we take a look at breakeven rates, it signals that bonds may be concerned much more further down the line. If you look at the breakeven, that is the lowest since 2016, but the yellow line is the 10year, which has dropped even below that. Youre seeing a tightening of that 30 year rate as well, so that signals that there are growth concerns may just be on the First Quarter. Finally, for some equity movers, take a look some stocks getting hit the hardest. Among them are the semiconductors. The sox index is down by about 2. 25 . Every stock is lower, a broad chip selloff. Amd down by about 3. 8 . Western digital down by 3. 5 . These names are all highly vulnerable in china in terms of supply chain and as major end markets. I want to point out airlines as well. You have the International Air transport agency saying it expects a decline in traffic for the First Time Since 2011, about 4. 7 shaved off that forecast because of the impact of the coronavirus on travel. That is sending u. S. Airlines lower. The biggest laggard, American Airlines group, but you have delta and united down as well. Vonnie thank you. A comprehensive data check from kailey leinz. Do remember the function gtv allows you to browse all of recent charts featured on bloomberg tv. You can catch up on key analysis and save your favorites for future reference. This is bloomberg. Bloomberg. Vonnie live from new york, im vonnie quinn. Guy, you have breaking news. Guy we are getting some decisions may be being made over at hsbc. Now. Is the reporting right mustier is inc talks about his future at unicredit. He could be potentially taken as early as today. Just a little bit of background, took over at unicredit back in 2016, so hes been at the bank are quite some time, but a potentially big step up in terms of the challenge that hsbc would represent. We reported this yesterday, that this was a possibility. It now looks as if it is taking a further step forward in terms of the potential for this actually happening. Mustier inat, jp talks over his future at unicredit. Noel quinn is currently the interim ceo at hsbc, and just put out a major restructuring plan, but still has that interim status attached to his Business Card right now. The decision on was ta on mustier could be taken as early as today. It would be fascinating to see whether we can get new surrounding that. We will come back to the story in a few minutes. In the meantime, lets get a first word news update. Heres courtney donohoe. Courtney u. S. Plans to sign a Peace Agreement with the taliban a week from tomorrow to end the war in afghanistan, americas logs ever. The deal americas longest ever. The deal is still contingent on a cease fire that begins at midnight. Sees the coronavirus epidemic is being tentatively contained, but it hasnt reached a turning point yet. Chinaomes from state run central television. They have adjusted the number of cases for the third time this month. That raises more questions about the reliability of the data. More than 75,000 people have come down with the disease there. Bloomberg has learned wells fargo is set to pay billions to end investigations into customer abuses. Federal officials man out today that the bank will be fined 3 billion to put an end to scandals that led to billions of dollars in operating losses, and to the departure of two wells fargo ceos. President Trumps Campaign ads will take over the u2 homepage on election day and the few days before the youtube homepage on election day and a few days before. The top spot on youtube is like a super bowl tv ad. 3 4 of u. S. Adults say they use the site. 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. Donohoe. Ney this is bloomberg. Vonnie thank you. We are back now with patrick armstrong, chief Investment Officer at plurimi wealth. Obviously, just getting the news jp most e. A. Iscredits jp mustier talking about his status, and talks for the job at hsbc. Buy . Ome of these a patrick we dont like European Bank equities right now. It is a play weve had on in the past, when we expect in the ecb to get Interest Rates toward zero. Theres no sign of that. We dont expect that for many quarters to come. Negative Interest Rate margins are very difficult for the banks to overcome, so europe is over banked. Maybe theres some tentative signs of m a, which may be a catalyst, but it think it is too early to move into the banks. Vonnie what would happen if we did see some shifting around, or is it just a structural problem, and it doesnt matter who heads up any of these banks . Tores no structural answer the existential crisis facing European Banks until there is a paneuropean support network for them. Patrick the European Banking union, there is steps toward that. M a, if it was allowed to reduce jobs, that would be very good news for the banks. The revenue for a European Bank is so small to the revenue per employee of a u. S. Or even canadian bank. You need a lot of redundancies and layoffs and mergers that can facilitate that. Im not sure if there is the political will to allow that this point. Banks arent in a great situation. I dont know if they are in a dire situation either. Guy at the other end of the , there are sotrum crazy valuations right now, the gross argument is so stretched. The curve is flat. Do you see any change in that relationship . Patrick it is hard to see. Growth versus value changes when we get higher Interest Rates were a bear market. It is very hard to see because Interest Rates are so strong right now. If you are owning big cap tech, you are making money. If you are a defensive dividend player, youre making money. They have both gone to extreme valuations at both end. Extreme valuations is going to come at a risk, but theres a lot of inertia. Guy but you say you think the bond markets are stretched right now. Patrick ive been a bond bear in the past, but they are pricing in structural stagnation right now, and i dont think we are there by any means. When you get higher bonds, you should short those sectors because they are extremely valued. But i would wait for the bonds to start to move and see a bit of the movement in the bonds before reget out of the sectors right now before we get out of the sectors right now. If you want any yield, you are a negative yield in europe or junk ords with 2. 5 percent yield, you are into equities that are not cyclical and getting a yield above that. But if you look at them on earnings, that is where they are very stretched. Vonnie you said you like gold. Where would you hold gold . Right in the mid 1600s now. How much more runway is there . Patrick if we get back into trade wars, gold is a great hedge against competitive devaluation of currencies. That is not the theme right now. There is no opportunity cost to hold gold, so while Interest Rates are negative in europe, it is less of a cost to own gold then it is to own cash right now. I think it is a great geopolitical hedge, that theres always going to be demand for gold when there is uncertainty in the world. I dont like bond yields where they are right now, so i prefer gold doesnt come with negative Interest Rates in europe. Platinum is where i have been putting my money recently. Platinum is much cheaper. I think youve got a pretty good link to gold over the longterm as a value of the inflation hedge that might be coming at some point. It is going to be a switch beneficiary from palladium on catalytic converter demand. In e. M. E. A. Are you looking . We were having a conversation earlier on on maybe there is a pause that were looking at emea, and are now waiting to dive deeper into see how strong the coronavirus will last. Patrick we like bonds from emerging markets still right now, inflation linked bonds. You are getting real yields of 3 to 4 above inflation on a lot of emerging market bonds right now. That is one area where we are comfortable to get the carry. Emerging Market Growth is going to be hit hard with coronavirus in asia, but longterm, theres not going to be significant impact. When you get paid significant premium like that, im happy to take the shortterm risk. Guy enjoy the rest of your friday, patrick. Think you for stopping by to cs here at bloomberg. Patrick armstrong, chief Investment Officer at plurimi wealth. This is bloomberg. Vonnie checking u. S. Markets, it is long bond yields we are the dowat closely, but jones industrial average down 0. 75 , the s p down 0. 9 . It is pretty risk off. All of that money very likely going into treasuries and gold. 1650 range. Guy we are covering positions into a weekend. Who knows what is going to happen at this point . European stocks certainly at session lows. 0. 6 for the ftse. Next down even more. Cac down 0. 7 . European close is next. This is bloomberg. Guy 30 seconds until the end of regular trading in europe. A negative week for european equities. That is the picture. The French Market down reasonably hard, as is the italian market. London as well. We are seeing some of the iberian stocks not doing quite so badly. We were in positive territory. That was a catalyst to the downside. The pmi data was a catalyst to the downside. Down. 6 . Not at session lows but close to session lows. Individual markets breakdown like this. It is pretty consistent. You are not seeing a great deal of divergence in europe. The ftse, dax, and cac 40. Number oft with a warnings. We will talk about those in a moment. The cac 40 down. 6 . Lets turn our attention to what is happening with the grr, the sector story. Youre getting rotation into those superexpensive defensive names. Utilities are up. 5 . Real estate trading pretty well. Health care down 2 . Money rotating towards that. Money rotating out of the equity markets. That is the broadbrush story. The car sector is down hard. You are also seeing some of the miners down. Oil and gas trading lower. Daimler is down. The oil and gas sector down, names like bp. Banks are trading down. Text down, and does techs down, industrials down. Food and beverage down as well. Let show you some names. 436 . Dit down we will talk up 4. 36 . Daimler warning on diesel and coronavirus. The stop down 3. 25 . Pearson continues to struggle in the united states. It is a huge owner of educational assets. It is much more focused. That focus is not paying off. Down for. 5 . 4. 5 . down we are off ofie our lows. The fact that we are down at all is interesting. May be more interesting is the treasuries, where we are seeing the long bond yield at a record low. It was likely earlier on in the session. The socks down almost 2 and we have nymex crude down 1. 25 . It is risk off everywhere. Gold higher, the vix higher, everything you might think of in terms of a risk asset is lower. The safety assets are higher. The yen has had a huge week. Lets moved individual stocks. Individual stories. Deere is coming out with earnings that definitely showed a different picture in the farming sector in america than the street had expected. Upt is sending that stock to a 9 gain, pretty phenomenal even though john deere did not say what it thinks the Coronavirus Impact will be on American Farmers throughout the rest of the year. Some of the companies that benefit from Higher Commodity Prices have been doing well like newmont. Kroger up 1. 6 . We will get to the story later on. Amazon is moving another one of its suppliers, walmart. Suppliers saying the grocery delivery businesses are not cutting it in terms of margins. See, varied companies at the lower end of things. Hasbro which has a lot to do with china, will be looking for a lot of parts out of china for its toys, to the likes of charles schwab, down on the news yesterday of Morgan Stanley buying e trade. Guy lets get back to the story we were talking about a few moments ago, a developing story. Talksicredit boss is in about his future at the italian bank as he contends for the top job at hsbc. Know . O we there are many moving parts in this story. Definitely emerging as the leading candidate for the top job. Presenting the strategic plan, it seems like it looks like the february candidate and we understand there are many moving parts, but we understand he is talking about his future at unicredit as we talk. Vonnie it is an awkward situation because we know no quinn has been interim ceo. Bloomberg had reported move ca was in these talks. Once the wind got out of the talks, it all came out. Not get the top job at hsbc, is he still out at unicredit . Stefania that is a good question. We will see what happens in the next few days. There are many moving parts. He is a candidate for the top job because of rbcs costcutting and what has been done at unicredit. We will see in the upcoming days. Guy what kind of light does this paint hsbc in . , and a an interim ceo couple of days later we get news it could be a completely different ceo that ends up carrying that and we do not know what his plans will be looking like. Hsbcnia that is why showed price reduction following. [indiscernible] if the new ceo will have new ideas or new projects for the bank. The continuity would be interrupted. [indiscernible] obviously a big change. The previous are coming from inside. Could also be a positive development for the banks. Watchinge will be closely over the next few hours to see what happens. The markets are closed in europe and just about settled. Guy lets turn back to the coronavirus. Hows it affecting the Global Shipping industry and how quickly will the shipping industry bounce back once the virus is under control . This is what the ceo of the worlds biggest container line told bloomberg. Peak inuld be set for a the absolute number infected within the next two weeks. If that were to be the case we march andct hea weak then a sharp rebound in april and may. There are still a lot of uncertainties out there. Guy a vshaped recovery, a rebound in april. Joining us is jefferies analyst and has a merck buy rating on the company. Is the out the optimistic perspective . David we were surprised by the volume immersed put out of 1 to a range 3 . Volume is currently very weak. That corresponds to 50 of capacity to europe. They think in volume terms it will be recovered. It would imply an acceleration compared to the growth we saw last year by 1. 4 . Held back by the trade dispute between the u. S. And china. Well below the growth in global gdp. The impact from earnings will be much larger. It might not be such a big impact. The impact on the earnings will be more pronounced that maersk was guiding yesterday for operating profit in a range from 5 billion to 6 billion. That compares to our initial estimates at the beginning of the year before the coronavirus outbreak of 6 million. You could argue that because of the coronavirus outbreak and the toative impact, could be up 1 billion impacting earnings by 17 compared to where we were originally. Guy i was looking at some of the numbers. The container shipping rates have come down sharply. What is your intelligence telling you about what the situation is in chinese ports . The rates have held up better than expected. Normally after chinese new year, based on our historic data, we see a 30 drop in the container rates from early february until the middle of march, followed by recovery in the start of spring. This time around, weve only seen a modest decline of 7 last week. This morning the latest rates were published, only down 2 . Still looking at container frame rate 7 ahead of last year. This is partly a reflection of the new fuel regulations. Of januaryplace as 1, which is still a lot more expensive than the traditional fuel. I think so far with regards to the rate settlements, things look reasonably ok. I think that is partly caused by the fact there is unprecedented idling of capacity. That is offsetting the impact. That is also having a costeffective and that is what you see in the guidance good vonnie that is what i was going to at the guidance. That is what i was going to ask you about. This idling, this capacity. What are the other reasons why capacity is so idle . David two main reasons. One is the seasonal weakness you see after the chinese new year. Rsk has said they have filed idle an additional 50 sailings to what they do normally. The second sector is [indiscernible] canhe container line install a scrubber on their vessel and then continue sailing using the high sulfur fuel, which is currently priced at only three on the dollar, where is the low sulfur fuel is priced at up to almost twice as expensive. Delayed. Are as a result, you have long rating times, not enough qualified stock, not enough yard Space Available for the retrofits and they are taking twice as long as planned. That is leading to substantial capacity out of service offsetting the negative impact on freight rates. David how long to these storm meantime,t and in the does anybody else benefit, even other transports . Difficult to say. Arerding to maersk, we seeing a recovery in the second quarter. A recovery in demand which could also lead to catchup of demand from what has been missed in the First Quarter. I think immersed i think maersk indicated they are prepared to increase capacity to meet the higher demand in april. Seeing all kinds of initiatives being launched of installing air lifts between the u. S. And china to keep supply chains moving. There is some sense of urgency that demand will recover. Guy im hearing people going to china and coming back with suitcases of the elements they need to put into machines that are so critical to it being completed. Thank you for stopping by. Jefferies analyst david kerstens. Lets check where the european stocks have finished. We bounce off session lows in europe. Just a little dip lower. Off session lows. That probably was a positive. The cac 40, the ftse, and the dax, all finishing a negative territory. Down on the week. Well carry on the coverage and bloomberg radio. Jonathan ferro new york, i will be in london, the cable show on dab digital radio. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is the european close on bloomberg markets. Time for our stock of the hour. Universalking about shares viviana our shock of the hour is iphone display maker universal. A 10 y maker could take hit because of disruptions caused by coronavirus. Lets take a look this morning. To0 Sales Outlook cut by 40 50 million. Another thing to look at is the revenue could miss consensus by 7 and four q eps lower. The virus could cut sales after the Company Raised its capacity. All of this coming on the heels of apples own sales cut. We talked about the blockchain disruption. It is not all negative. Despite the cut, sales are still expected to grow. The company just invested in increasing its capacity. That points investors to look at margins for the rest of 2020. If we were to look at universal display customers, it is a supplier to apple. It sells pricey screens to apples suppliers, lg and samsung. They get passed on. Apple uses universal screens only in its higher xl. Analytics company writes that smartphone production will see lowered output of any quarter within the past five years due to the obstructions caused by the coronavirus. That is your stock of the hour. Guy . Guy thank you very much, indeed. Viviana hurtado. Vonnie lets head to brussels where European Union budget talks continue after an allnight session. Joining us is maria tadeo. Any sign of progress . Maria there are signs of progress. This has been another marathon summit. To give you context, we are looking at the european budget for the next seven years, looking at one trillion euros at stake. How is the money going to be used in who will pay for this . Adding to the tensions is the fact that the United Kingdom has left the eu, and the money the u. K. Would put on the table, around 60 billion euros has also left the table. There is division between member states, some that were not going to contribute more than 1 over Gross National income. Other countries say that is not enough. The debate is how you fill the gap left by the u. K. . Do you go for spending cuts already put more money to work. At this point we understand there is our proposal perhaps saying we could stick closely to the 1 or move it to 1. 05 or 1. 06 . Minimal changes, but that could do the trick. It is unclear whether we will get a deal or not. It is crucial, because this is the budget for the European Union. This is the money assigned to prop up policy in europe and it is one trillion euros. A lot of money. Guy it is a lot of money across relatively, probably not a lot of money. It has a big impact on the lessdeveloped parts of the region. If we do not get a deal, what happens . Maria you are right to point that out. We are seeing huge divisions between the north and the south east countries, countries that pay others. You also have the west and the east. The eastern europeans concerned about climate change, about the green new deal, what that would do to their economy. They are very dependent on coal. If we get a deal, the focus will be on the detail. What will be this used for . Is it agriculture . Is it something thats plays well with emmanuel macrons electorate is it something that plays well with emmanuel macrons electorate. They want to see europe is serious about putting money to work. We are perhaps closer to fiscal stimulus. We will not see major increases in anything. If you are hoping we would get a real fiscal stimulus package, we will have to wait. Europeans are arguing to cut back. Vonnie maria tadeo in brussels, our thanks to you. This is bloomberg. When it comes to using data, everyone is different. Which is why Xfinity Mobile created a different kind of wireless network. One that saves you money by letting you design your own data giving you more choice and control compared to other top wireless carriers. Now you can choose unlimited, shared data, or mix lines of each and switch any line, anytime. No one else lets you do that. Design your own data with Xfinity Mobile. Its wireless reimagined. Simple. Easy. Awesome. Guy from london, im guy johnson. Vonnie this is european close on bloomberg markets. A treat at 9 00 new york time. Bloomberg Television Premieres changen the brink of it is a look at the path to electric vehicle mass adoption. Alix steel takes us through a history of the market. Century early as the 19 , many cars were already electric and appearing in newspaper ads like this one in pittsburgh. In 1908, and report introduces the gas powered model t, and until 1927 ford would perfect the Assembly Line and build 15 million model t cars. It will not be until the mid1960s we start seeing electric cars come back, mostly concept models. In the late 1990s the world gets its glimpse of hybrids, among them the toyota prius, which rolls into dealerships in 2000. Three years later tesla forms and in 2008 the Company Debuts the roadster, followed by the model s, model 3, and more. The nissan becomes the best ev in 2010 and china becomes the biggest ev market ever. Andstors include jack ma warren buffett. Vonnie alix steel joins us now for a low bit more on what to expect. That was a very teasing glimpse of what we might anticipate tonight. A fun story. Alix we put it together in that way because evs are nothing new. There is a question in the market as to why now. We see a full adoption. The more you dig, the more interesting it gets. They may be flashy cars, but the problem is the carmaker having a difficult time making money while they have a go at building these. It is still entirely supported by governments all around the world so they will not be floating on their own. There are lots of different components. There will be winners and losers. Nobody knows where that is, so we did a deep dive into all of that. Guy we assume evs are environmentally sound. Are they . Alix yeah, no. How about that . Transportation is a huge emitter of co2. You need to fix it to reduce the carbon in the environment. The problem is the stuff you used to make the evs can be dirty. Water, uses a ton of cobalt is mind in the battery, it is mind in a very unsound place. Nickel has a lot of problems when you produce it. There also conditions week three cycling the battery. Once the battery is done, what do you do with it . It is not a blackandwhite cut and dry issue which is why it is so interesting. Vonnie interesting we are seeing china saying it might extend subsidies because of the coronavirus. Maybe not just because of the coronavirus. What companies are winning . What countries are winning. Alix china is winning. Norway is winning. In terms of companies, it is all about tesla. Others cannot get it done. Vonnie i cannot wait for the special. Alix stay awake. Vonnie 9 00 new york time, should be easy. Guy, you will have to stay awake. It is hosted by alix steel. That is 9 00 new york time and repeated over the weekend. Powerup, balance of with david westin. A preview of the nevada kpop is is tomorrow. This is bloomberg a preview of the nevada caucuses tomorrow. 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. On the brief today, Sophie Kamaruddin and hong kong on the mounting human and economic toll of the coronavirus. Maria tadeo in brussels on the eu budget talks, and bill faries u. S. Shington on the inching toward a peace deal with the taliban. Lets start with Sophie Kamaruddin and hong kong. There are different numbers. We have the sense of the numbers or the methodology . Sophie this shift in numbers revising its case counts again. For includes right up made february 19. Also revised its february numbers pushing the confirmed case numbers above 60 the above 63,000. Clusters discovered in chinas thirdbiggest province, which the Central Government says will be investigated