Made quickly and there was a disruption maersk warns the virus has public announcement toese that signature wantly warned and make it not look too abrupt. Visibility in 2020 after missing fullyear forecast and higher as they allow for a strong Fourth Quarter. Schweiss re sees red after a it wasnt really that bad. Full year falls short amid it was decent. Rising claims of man made and you are right, it was overtaken by ubs natural disasters. Posting a 1 billion share buy what youve seen has been the emphasis of getting the back air france warns coronavirus Investment Banking side working will wipe 200 million from its more efficiently what we are seeing here is the earnings and flight suspensions could cause a heavier impact board of directors perhaps sending shares lower turning their back or deemphasizing and saying we should look more at the bread and butter retail, banking business to pick up on that, big welcome to street signs. Investment announcements were made you have restructuring it is a very busy earnings day announcements in q3 as well. A host of major firms have this appointment that the i warned of the impact that they will see from the coronavirus t ing ceo really consolidates the fact that they are shifting their focus away from the outbreak air france, klm has warned of Investment Business that was typically quite heavy due to 200 million euro snider has warned of 300 safertype activities which were safer strong points of this million. And maersk the shipping company incoming ceo has seen fall amid the outbreak certainly as well. Bare in mind in the retail and a lot of warnings. Absolutely. Commercial side, those really interesting to see share price come from and a strong emphasis divergence on the back on lepding as well Air France Klm shares down more than 7 after warning about the i wouldnt just focus on the impact of the coronavirus. Transaction fee. The hammer that ing has been maersk warned of visibility in important component on that. 2020 but delivered shares up thank you for being with us this morning as a reminder, you can 2. 4 acore, with the reaction follow us on snider electric seeing a bounce twitter streetsignscnbc up 6. 6 . Tweet us directly. Those results beat expectations following closely cnbcjou and said the impact of coronavirus will be short term we spoke to the ceo earlier or cnbc julianna. He said that company will be able to handle the risk from the well look more at last virus. We say our best guess today nights debate after the break feeling sluggish or weighed down is around 300 million euro we believe we will be able to catch up what is missing in q 1 within the calendar year we see it more as a disruption we think we are able to catch up with what we have in china what we do in china is mostly for the chinese markets. Our teams are already working these past two weeks can be a sign your digestive system isnt working at its best. Given to china to work taking metamucil every day can help. Its psyllium fiber forms a gel especially on manufacturing to see the information improving that traps and removes the waste that weighs you down. Slowly but surely over the past it also helps lower cholesterol and slows sugar absorption, two weeks. Speaking of the coronavirus, promoting healthy blood sugar levels. The Eu Commission has said the so, start feeling lighter and more energetic coronavirus outbreak has thrown by taking metamucil every day. A rebound of the german, french take the metamucil twoweek challenge, lighten up. And italian economies into just take metamucil every day for two weeks. Doubt. Available at your local retailer. Saying he was, quote, not optimistic of a recovery chinese authorities have reported a new drop of infections 394 new cases on wednesday down from nearly 1,800 a day earlier. However, there has been another change in the way cases are reported south korea has now reported the countrys first death from the illness. The peoples bank of china is cutting its benchmark lending rate to soft enten the blow froe which of your devices are protected by daily security updates . Daily security updates. Daily . I dont know. The only thing. Coronavirus. Im struggling with this. And the economic effects on some providers you have to manually download updates to each device. Business activity and comcast business securityedge updates every 10 minutes manufacturing. To help keep your connected devices protected goldman sach believes markets against new ransomware, malware and phishing threats. Are underestimating the risk every 10 minutes feels pretty good. The risk of a quote, downward get secure, reliable internet and voice for an amazing price. Call today. Drive is high. Comcast business. Beyond fast. We warned a correction is probable lets see what paul jackson has to say about this. Global head of investment. What do you think of that view that the market is essentially being complacent and underestimating the impact i think it is different with the reaction in the bond market. The equity market and bond market has priced in something dramatic the equity market had a short reaction and recovered nicely. I think this is going to be a short, sharp episode by the end of the year. I would expect we would hardly notice more here and the cases welcome back to street internationally increase the signs. Lets talk u. S. Politics down market and buying in las vegas, last nights debate was like a heavy weight opportunity would be a big fight. Candidates came out swinging with newcomer to the stage with determiner if you want to bring in fx as Michael Bloomberg taking some of the heaviest shots well the fact that youve seen a the former mayor said he will plunge as well a midst the rally release tax returns in a few in stocks. Weeks. Fortunately, i make a lot of what does that say to investors . Money. We do business around the world. Is. It is telling us a lot of the pages will be in the thousands. Different investors with i cant go to turbo tax. The senator Elizabeth Warren different needs and rallied at targeted previous statements about women. Id like to talk about who we are running against. A billionaire who calls women fat broads and horse faced 1,600 suggests there is something dramatic going on and then the bond deals that might suggest they step in lesbians no im not talking about donald looking through the shortterm issues saying, yes, there is trump. Im talking about mayor clearly a hit to the chinese economy. Almost like a selfinflicted bloomberg. What is the take away in general from the perspective candidates hit. As snider said, that is likely last night couple of take aways. To be short term and by the end first, that Michael Bloomberg of the year, it will be out of has to be prepared for these the system attacks because his advertising equity markers will look through has gone largely unchallenged. That the bigger issue for the equity that is a completely different market is whether we get a dynamic. Another, Elizabeth Warren is rebound in Profit Growth trying to raise her poll numbers. She went in on bloomberg in less than five minutes and did not let up for the rest of the we need to rebound higher in order to feel comfortable. Evening. Most of her attacks were on we had a guest yesterday who bloomberg standing right next to said it will be a lot more her. She was going to shift focus and difficult to get a repeat performance as we had last year. Focus less on unity and focus on due to the fact that the rating what made her popular before we saw last year was on the back of valuations and not really which was sort of being the earnings we need to see earnings. Attack dog on the stage. Bernie sanders, the front runner we have a spanner in the works because of coronavirus here, facing some attacks of his we wont see normalization of own. Then joe Biden Companies until, say, the latter he wept in really needing a half of the year strong, solid performance. How does that make you position your portfolio and how willing is what we are hearing on the other end, mayor pete are you to look to the impact of stocks that are sound. Buttigieg and Amy Klobuchar first of all, i agree with clashed several times. That sentiment the strong returns we had some saying it was not the best particularly in risk assets. Night for Amy Klobuchar who had partly because in the beginning a Strong Performance after the of the year was very weak. New hampshire primary. The next contest in nevada will in 2018, it was a difficult determine where these candidates period we got a rebound from that go and where their standing is ahead of super tuesday when a plus the multiple expansion you lot of the delegation for super refer to gave us a very good tuesday will be decided. Year in a year where Profit Growth thank you lets look ahead now to the came down. Nevada kau cause taking place on i expected when i was doing my saturday the latino vote is crucial year ahead forecast that, yes, nevada has significant latino we would get a year that equity and real estate would get a better return and income population what are we looking fos saturd . We believe that would be the case with lower returns than we be on the lookout for the saw last year. With the coronavirus situation gives you a bit of pause for thought. I dont think come the end of exit polls there was a lot of talk at one the year, we would look back and say, boy, that made a big point about dreamers people who come to this country difference to the global economy. I dont think globally it would illegally at younger age and be a big deal. Stay here until they become thank you, paul adults clearly trying to reach out to global head of asset research. Those latino voters. If you want to get involved in thank you for joining us. The conversation lets recap the fed minutes find us at that came out yesterday and show that the Federal Reserve remains upbeat despite the concerns posed by the coronavirus twitter streetsignscnbc Air France Klm posts fed officials expect to keep rates at the current level for the foreseeable future as the earnings tetheanueruss those mbs afr e brk. U. S. Economy grows at a moderate pace investors are still pricing in one rate cut and expect it to happen by this summer. Our colleagues will be discussing the latest fed minutes with vice chairman Richard Clarida today at 14 30 cet. They wont the most exciting fed minutes but i think it is interesting that they are watching the coronavirus very, very closely but that the market is still pricing in an Interest Rate cut theyve said, look, we are happy with wear Interest Rates are the market wants them to cut rates to support markets, which is the same theme. That is the look ahead a quick look ahead for u. S. Futures. The hand overhasnover hasnt be positive that is it for street signs. Im joumanna bercetche. And im Julianna Tatelbaum. Worldwide exchange is coming up next. Can we go get some ice cream . Alright, we gotta stop here first. From smarter atms, to after hours video tellers comcast business is connecting thousands of banks to technology that turns everyday transactions into extraordinary experiences. Hi there. How are you . Do you have any lollipops in there . laughing no, sorry. Were helping all kinds of businesses go beyond customer expectations. How can we help you . Youre doing more to keep your body healthy for the future. Shouldnt your toothpaste do the same for your mouth . Future proof your whole mouth with new crest pro active defense. Its active Defense Technology neutralizes bacteria to shield against potential issues. Crest. Welcome back to the show. Lets look at how markets are fairing this morning quite a bit of red behind me for europe the handover from asia was slightly higher. The number of cases was lower. But we had further stimulus announced. Not so much the picture you can see today. The stoxx 600 is trading slightly on the back foot. Baring in mind that these indices have been doing very, very well. Today is a big day for earnings. We are parsing through a number of Companies Many siting the impact of the coronavirus on the potential lets talk about some of those individual forces so we can get a better idea of the breakdown the ftse is in the grain minors doing quite well today. Even lloyds bank despite a posting of profit is doing quite well a little green on the board. Cac just below the flat line snider electric is very close to the top with strong results out of the french industrials. So that is one that is driving performance there. Dax coming under pressure as well we are seeing pressure mainly in airlines this morning. Well talk about that shortly. Weve got lufthansa and as you can suspect, a coronavirus it is 5 00 at cnbc phenomenon ftse mib is down 0. 4 . Headquarters it is your five 5. Giving back some of the gains hitting the pause button they had to register in the last china takes new steps to help couple of sessions in terms of sectors, lets talk shore up its economy over that about it in detail coronavirus outbreak insurance is down 1. 2 as goldman sach issues its own household goods, another name warning over continued impact of the virus on the markets for luxury on the back foot. Call it the worst kept secret. Lets talk about industrial names. Snider electric is having an valuation down in a huge take impact there private retail deal. The minors seeing a rebound. Plus, no Construction Material as well. Banks as well as we have officially got a name for a successor ceo, the ing, ceo moving over there. This is the picture overall for europe starting slightly on the back foot this morning. Lets dive into the details of earnings. Starting with lloyds posting a 26 drop in the fullyear pretax profit that came in at 4. 6 billion it had to pay out billions to customers over miss sold payment protection elsewhere swiss re combined ratio, worsened to 108 despite posting the jump in the fullyear profit it blamed the slump on natural and man made disasters ensuring it is still on the forefront of adverse trends. Jewel yus bar regarding the football governing company fifa. It had already started implementing risk in response to the investigation. In spain, europes fourth Largest Telecom group. The key markets, spain, brazil, germany and britain all showed organic growth last year travel and leisure with accor reporting a fall the french owe tell group said Market Conditions in asia deteriorated the unrest in hong kong as transport strikes in france impacted the corporate customers. Accor ceo will be on cnbc today at 12 00 cet Air Franceklm expects to take a hit up to 200 million warning if flight suspensions to china are extended, that impact will be steeper. We are seeing a huge drop in the price of Air Franceklm shares it seems like they are being unfairly punished. Other companies that have come out today have survived. You are right the results themselves are in line with expectations q4 costs have gone down. Keeping those costs under control. In those trends here following the roll that came from the new ceo in late 2018 you are right, the potential impact is dominating today potentially by 150 to 200 Million Euros in the number of airlines that are exposed. Asia pacific is 20 . About 90 flights per week. One of the Main Partners is china eastern with a strong connection cto the region. Also cargo with an effect on the supply chain what about oil . The price has dropped a lot on the back of coronavirus as well. We know it is a key input. Surely that should buffer the impact there absolutely, it was th set foe course of 300 Million Euros. That should help offset a little bit. If it ends soon because for the moment flights stopped midmarch. For the moment, the figure given is if flights went longer. The impact would be greater. Not just for Air Franceklm thank you for breaking it down for us maersk has warned the 2020 results will be weighed down as a result of coronavirus as well. Reporting a net loss in the Fourth Quarter missing expectations you can see the stock is up 2 however maersk ceo cited weak trade growth you can see today, the Investor Community isrewarding maersk o this different from air france. Your take on maersk results, im surprised to see the stock up so si missing on some of their Earnings Guidance for q4 and warning of an impact ahead due to coronavirus first of all, Fourth Quarter results are slightly lower than expectations you saw a 20 increase in Fourth Quarter ahead of anticipated tariffs because the exposure would only be around 10 i estimate i think the reason why the stock is up is because of better than in 2020. 6 is better than where consensus was. The impact to Global Supply chains due to disruption in china has deteriorated we are hearing production is only slowly coming back on line at 50 that is left to unprecedented situation in the container shipping industry. Leading to only 50 of shipping being canceled the outlook for 2020 with an ebid the market had anticipated that could be a lot worse one thing that stuck out to me with regards to the 2020 guidance was around uncertain if is with regard to imo regulations as they try to prepare for meeting the new requirements due to the start of theier the new research and preparations are going in terms of the sector getting up to speed and meeting these new rules. The cleaner fuels happen and the market has been prepared for this for four years. But the price of these cleaner fuels are more expensive we have estimated it could lead to a 50 increase of fuel cost it will need to pass on to customers. One of the side effects of the disruption is that fuel prices have recently come down. That is providing some relief. It will be more of a path to go forward. We will bring up an important topic that was the trade war last year was impacted by the massive dropoff and trade volumes. Have markets completely forgot about the trade war now . The partial agreement between china and the u. S. Has been put behind us. Dont forget last year markets did extremely well in a year export growth widdled away and global gdp came down this year with the u. S. And china kind of coming to an agreement. The issue becomes whether europe comes into the site of the u. S. Election Campaign do you think those are picking up from last year . Surprising in that warning is that they were providing for the growth in the range of 1 to 3 , which is a good proxy. Up slightly faster than it was in 2019. The guidance is assuming that the negative hit seen due to coronavirus will be fully recovered later in the year, which is quite optimistic. After other sources claim it could be a negative impact thank you for joining us. Senior Research Analysts and paul jackson, global head of allocation from invesco. Thank you for your views state with us. Well talk about eu leaders preparing to lock horns over the next sevenyear project. Well be right back. Robinhood believes now is the time to do money. Without the Commission Fees and account minimums. So, you can start investing wherever you are even on the bus. Download now and get your first stock on us. Robinhood. Welcome back to street signs. Im Julianna Tatelbaum and im joumanna bercetche. These are your headlines Schneider Electric says the impact from coronavirus will be short term we will be able to catch up what is missing in q1 within the calendar year. We see it more as a disruption maersk warns the virus has signature wantly lowered visibility in 2020 trade goes higher looking to the Fourth Quarter air france warns the coronavirus could impact them and says further flight suspensions could cause a heavier impact Michael Bloomberg comes under attack over his history of race, women and taxes in the new york billionaires first appearance on the debate stage fortunately, i make a lot of money and appear all over the world. The pages will be in the thousands. I cant go to turbo tax. Okay we are just getting data out of the uk retail Sales Numbers have come in pretty strong 0. 8 perts for january versus decembers steep decline of 0. 5 that 0. 9 jump is higher than expectations the biggest monthly rise since last month on an annualized basis, uk Sales Numbers have come in at. 8 positive versus decembers number of. 9 positive compensating some what for the very, very weak december ex fuel control number has come in at 1. 2 year and year so even adjusting for fuel prices will be higher. Strong retail Sales Numbers after the Inflation Numbers we had after the bank of england not to cut rates as difficult as it is for january in the lead up was still from the december period the general election the massive moment in the general economy data points are crucial. Both have been strong. Lets check now on european markets. You can see they are red across the board. A pull back from yesterday when the stoxx 600 gained. 8 firm warnings are the focus. The key theme among all of the reporting companies today, Coronavirus Impact and shares have been reacting differently due to those uncertainties putting that all together, investors taking a more cautious approach to trade. Looking at the democratic primary debate with mayor bloomberg ki a debut on the stage. The markets all looking to open lower after hitting alltime highs yesterday. Eu leaders will hold talks over the budget for the next seven years with the german chancellor calling them, quote, difficult discussions. Pitting the frugle four against countries keen on spending, portugal, spain and greece sylvia sat down and asked what the prime concern should be for this upcoming budget the top priority will be the Climate Change we have already announced that 25 of our expenditures. This is only 90 only 6. 8 per is the administrative costs i think it is a very low share compared to the world budget very competitive number one is the digitalization the issue to invest more in our external relations when i looked at the latest proposal from the european council, i noticed there is a massive increase when it comes to european defense. Couldnt this actually hurt u. S. And eu relations given that President Trump has often said the eu is not spending enough in nato and now they are investing rather than giving that money to nato no. If hes carefully analyzing this, he should be more than happy because in a way of his critics and what we are doing for example. In europe, we have more than 160, 170 Different Military systems. The americans have around 40 we are aiming at stream lining this different systems in order to have a better economy of scale, to have a better procurement. Savings that can be used and by the way, it would save maintance cost in the future and constitutes to have better efficiency for more availability also joining us now from brussels with another interview. It seems like Climate Change and digitalization is still very much a focus for the eu going forward. Reporter ill address some of these issues with my next guest here in brussels lets look at the discussion leaders will have here today what is the biggest problem that it has for the next budget you have two groups. One group of countries that had decided the budget should not go over 1 . Other countries disagree the main problem is that the Council Speaks about 1 . There is a disconnect about what the budget is to do and this number what are the consequences of seeing countries like austria and netherlands calling themselves the net contributors and the frugle four. This is not the right argument also not true that they are losing money it is a net transfer across europe this funding has reasons to exist. Some of it tackles really joint problems it is normal that the budget transfers to other places when you are richer thats the whole point of a budget these contributors have a point when you say the eu funds are not being well allocated there are new priorities that need new funding dont they have a point when they say they cannot spend that much money they do and they dont. The last 20 years, the policy was reformed deeply with requirements also concentrating on eu policies this is not taking into account. Speaking in the 80s. Policies have changed. It is also the fault of the net contributors at their side of the pie. The new European Commission has ambitious plans. We know theyll be pushing for that at the submit mmit as well do you know the numbers there are enough to deliver when it comes to Climate Change . No. They are not enough. They need to reform to align it. Instead of discussing, is it 1 . This is not the main battle. The main battle is what it is for. Then you can decide how much is needed these talks are especially difficult this time around because the uk left the eu do you think the current 27 members will manage to fill the financial gap the uk left . The financial gap is a very small percentage of the eu because of the rebate thank you to thatcher. There for, the gap is not such a big issue. It is really about the contents. Do you want security borders . Do it. Dont discuss this sealing like this for the leaders, they need a c consensus. They need to be on the same side of the argument. After this, you need to get approval in parliament we know lawmakers want way more money. Do you think the parliament will actually say yes to the numbers on the table the parliament will be between the wall and the fire but i think this time the budget is so different, they will have to take a deep breath and think about it carefully you have all the major parties backing the decision all of them. It will be more difficult for the council to get through the budget being proposed now. It is too far away from the position thank you lets see what the leaders will do and decide when they meet here later today as you can see at this stage, there are two opposing camps lets see if one of them will actually win at this summit. The frugles and the spenders. We want to bring you a flash thats just come through from chinas hue way province theyve asked firms not to resume work before march 11 due to the coronavirus and uncertainties and the timing of recovery is still uncertain. Now we have commentary around chinas Hubei Province firms are being asked not to resume work before march 11. So firms will factor in what that means for corporate in that region ubs has appointed the next chief executive. The dutchman will take over in november the Financial Times reports he was approached months ago by ubs chairman but it was after decided the contract would not be extended. He was appointed ceo in november 2011 the swiss banks share price has fallen over the last year amid the low Interest Rate environment. His departure comes less than a week after his arrival thiam stepped down pleased to bring now, our guest who joins us on the line thank you for being with us. Weigh in what does this mean for ubs . Caller i think it is a choice that is rather surprising for ubs. Over the past few years, they have tried to get the banking in order and theyve played a key role in doing that appointing another retail bank where they have cut on commercial and Retail Banking, focusing more on the bread and butter retail and commercial banking, in retail in particular expanding outside in that line of business to capture more market share outside of that it is very interesting and i think probably the ing board of directors are kicking themselves with sort of a paid dispute back on the board where he was being underpaid due to other years that were not able to meet that, to that degree looking around to see what else was out there. As i understand, at ing, investing heavily in digital and bringing the bank forward into modern space do you think this is an indication of the kind of strategy and will that be welcomed by the community . Ubs is previously under the previous regime of Retail Banking Wealth Management space. I would say ubs is fairly well positioned there if you look at 75
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