make no assumptions. christine lagarde tells bloomberg that as the ecb works on its strategic review, policy is still very much up for debate. look at the facts. let's look at how the economy evolves. that is how we do. we need to be fact driven, clear in our communication. i am saying today, do not assume. interview from that throughout the program, and on containment, china's death toll rises to 25 from the coronavirus. the government expands its lockdown to 30 million people. a population larger than that of australia. r is said to be holding discussions for all of its roundup claims for $10 billion. just under one hour away from the start of cash equity trading throughout europe and in the u.k. take a look first off that where we see futures trading. right now, looking at some pretty decent gains. the dax futures are up .8%. captain ftse futures -- cac and ftse futures up. away from theiles new york stock exchange last day of trading for the week, we do see gains on that. s&p and dow jones futures. looks set to be a risk-on session on this friday. anna: indeed. interesting to see that after we have seen a fairly drifting session in asia. a lot of markets on half-day. china and south korea closed for the whole day because of the lunar new year holiday and into next week and we have trading in hong kong and singapore, so there is less volume than you would normally anticipate, but we have been drifting through the asian session. no surprise when we think about what we haven't have not heard from the who. eventually deciding this is not a global health emergency. not yet at least. this is something more localized. market participants focused on what is going on with the coronavirus. will it stabilize over the weekend? have it. no big moves after christine lagarde's statement yesterday. some movement as a result of that but nothing too dramatic this morning. lacqua,eague, francine speaking to christine lagarde. she said that would be ridiculous. that is what we got in these markets. a little bit of upside for equity indices globally but essentially a drifting session coming to the asian markets. let's get back to davos for the final day of the world economic forum 2020, bringing together world leaders, policymakers, and executives. inentioned france -- france to christine lagarde. she joins us as well as haslinda amin. are delighted to talk about the future of the industry. recognized faces of the carmakers. the chief officer of volkswagen. early morning, braving the cold. you were here. you met with president trump at a dinner and his team at a time where we still worry that he will impose tariffs on carmakers , especially german ones what was the discussion like? >> we still worry. i think it was a possibility. i had a chance to talk to the administration, secretary ambassador lighthizer was there, and we did a lot to prepare. we invested heavily to adopt to the new regulations. doubling up capacities. we soon will put all the machinery there to ramp up production for a new electric vehicle for the united states. doing what we can to avoid tariffs. haslinda: president trump left davos saying tariffs are still out. committed and serious about it. i think the administration is happy with what we are doing. francine: committed to tariffs? herbert: it's very difficult to read president trump, but he stated he is still not happy with europe. haslinda: when you look at your biggest concern, market decline in china or tariffs? herbert: 2020 for the automotive industry will be a very difficult year because the markets are basically flared. we see slight growth in some of the markets. in europe, we have to comply with the three targets. ourave to make sure that electric vehicles make their way . we are well prepared and optimistic. a lot of new products. yearll be a very demanding for that industry. >> a very interesting time for the auto industry. take a look at tesla market values. i mean, how do you explain why investors are putting money in a company like tesla, which is not making money at, compared to a company like volkswagen? you are making money. herbert: the market devaluation tells you something about the future. no future expectations. tesla is having a product which basically describes the future of the auto industry. fully connected electric car. about thehe valuation future car. i think tesla is paving the way there. it is modeling something new for the industry. i think we are close to follow. and so, we are quite optimistic. tesla keep the pace with and also at some stage probably overtake them. the question, eventually, who will win in this space? traditional carmakers like yourself, tesla, or players like google? herbert: i would take tesla more seriously than google. peers, someom our very competitive companies like toyota. i think it will be -- the company which adopts fastest and also which has enough scale in the new world to win that race. francine: what are you doing to win the race? herbert: wrapping up our software capabilities, buying companies, building up new skills. we are heavily investing in ev .v.'s, battery sales. haslinda: in terms of stricter emissions, what are you doing? the sense out there would be gas powered. that would be the future. where do you stand on that? herbert: the future will be electric. now, thisy clear train is moving, gaining speed, gaining momentum, so we are preparing. we will see a car which is emission free, will become very safe. we will probably spend more time in a car than today, so cars would be very convenient. my view is that the car will be .he most precious haslinda: what could hinder the effort? herbert: nothing can. francine: there must be a piece of technology which would make it better? herbert: a lot of technologies. the auto industry was always about the broad variety of technologies but the new thing is to have it fully integrated on the internet so loads of data being uploaded from the car to the internet and then downloaded and that makes the car really innovative, convenient, and that makes a big change. that is something new. i want to see if there is an update. the change of pace, the change of progress to electric cars, but also to driverless car's, is it going to be quicker than we think or less quick? arbert: 2020 will be breakthrough year for electric cars because also legislation is demanding basically a percentage of electric cars in europe and in china, later than the united states. be decisive should years. haslinda: volkswagen said it wants to be carbon neutral. the question is, how much will that cost you? changing.he world is many people are talking here about the cost, but at the end, if you look at the figures, renewable energy is already as cheap as a carbon-based energy, and new technology is really stepping in, so the world will be different, but the world will still have exciting product. it will be worthwhile. haslinda: could you put a price to it, how much it would cost you? you have more than 122 factories around the world. herbert: we are continually investing. we are one of the biggest investors and we put a lot of money behind r&d. but we changed it to more new technologies. let's say focus more. i think we can go. francine: how does the merger change the landscape for you significantly? herbert: francine: not to him -- herbert: not dramatically. the industry is consolidating over the last 100 years or so, so it is a continuous process. scale methods in the future because software becomes so important. and so, i think it is a good move for the french colleagues. it is important they get a real important footprint in the united states, so they will become more competitive. >> would you be interested in consolidating? herbert: we are big enough. 10 million cars. and we have a relatively good footprint. very strong in china. strong in europe. a lot of room for improvement in the united states, where we are focusing. that is why we are investing. it makes sense for us to invest in the united states. we feel with our size and brands, we have think the right brands. we are well prepared for the change to come. francine: thank you so much for giving us a little bit of your time here in davos. anna, back to you. there will be plenty more from haslinda and i throughout the day. matt: looking forward to it. i want to bring you some headlines we are getting on the coronavirus right now out of singapore. found twothat it has more people infected with the coronavirus. it says both people were residents from wuhan. of course, that city of 11 million people has been, in effect, blockaded or quarantined. singapore says the total suspected cases of the coronavirus there have risen to 28. we know now that about 800 people are affected. 25 reported to have died. we are going to continue to update you on that. anna: let's tell you what's coming up on the program. we will bring you our interview with christine lagarde. caughtleagues in davos up with the ecb president a-day after announcements after the strategy review and some important guidance on what markets should or should not focus on. we will hear from the self-described towel of scent -- owl of central banking. this is bloomberg. ♪ matt: welcome back to bloomberg markets. this is the european open. we are 45 minutes away from the start of cash in equities trading. solid green arrows in terms of european equity index futures right now. you see gains in u.s. futures as well. this friday could be a risk on day. bloomberg first word news with lower right in london. china's virus is not a global problem yet. the world health organization decided against declaring the new coronavirus outbreak a worldwide health emergency. it has jumped to 25. 10 chinese cities and restricting travel. the outbreak will not impact credit ratings. wildfires in australia are set to push the rising global co2 levels to a record. willrecent updates say it release 900 million tons of carbon dioxide into the same as allthe global aircraft. atomic scientists cited the rising nuclear threat and a lack of action on climate change. they move the clock to 100 seconds to midnight, a 20 second advance. the clock has been maintained since 1947. 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. this is bloomberg. anna: thank you very much. christine lagarde says investors should not assume that current monetary policy is on autopilot. she spoke to francine lacqua at davos a day after announcing a review of the ecb's inflation goal and policy tools. >> if markets are interested in what happens in the next 12 months, they should not pay too much attention to the strategy review because we are conducting two separate exercises here. we will have our monetary policy ,ssessment and review as usual every six weeks. we will get together, look at the numbers, look at the markets, look at the views of the citizens in terms of inflation expectations, and we decide whether things should be way or another. that will be conducted irrespective of the strategy review. think watch out because things change. and we might have different signals, and we might reconsider. we might. i do not know at this point in time. what i know for sure is that it will be two different exercises and a strategy review will be on its own on a standalone basis and will progress because we are looking at what we do in the future, not what we do next week or in may or in july. overine: don't interpret to quickly? christine: we always over interpret. i told them on day one, do not over interpret. we will say what we can say. some people are disappointed that we have not said much more yesterday, but a strategy review starts here, finishes there, and you cannot hear say what you are going to do their -- here say what you are going to do there. learn from other countries around the world in the process. the fed is undergoing the same exercise. we need to take time to reach out to the parliament, to academics, to people, to those who are interested in these issues, to hear the voices, to understand what their views are. we will listen to markets as well, but they are one of the voices we will listen to. francine: economists believe monetary policy at the ecb will be on autopilot. is that a mistake? christine: to those who think that is autopilot, that is ridiculous. there is a forward guidance, which is a, which is setting a very clear timetable that is factor dependent, but let's look at the facts. let's look at how the economy evolves. we need to be fact driven. we need to be clear in our communication, and we will be. i am saying today, do not assume it will be on autopilot. francine: yesterday, you talked about negative rates. is there a point where we -- the side effects of negative rates means you need to scale it back? christine: we will be looking at the side effects as part of the strategy review. there is no question about that. we need to be attentive to that. financial stability is not our first driver of concern and consideration, but we will have to look at it, of course. don't forget that we need to have a banking sector in the year or area that acts as a good channel of transmission. matt: that was ecb president christine lagarde speaking with minutes at davos just ago. china expands its travel therictions as new cases of coronavirus emerge, and the death toll continues to climb, now 30 million people under quarantine. and when you are traveling to work, tune into bloomberg radio, live on your mobile device and dab digital radio in the london area. tune in for the latest. this is bloomberg. ♪ anna: welcome back to the european open. we have 35 minutes or so to go until the start of cash equities trading in europe. futures suggest we will see some movement to the upside. tech results from intel up. nasdaq futures. that part of the narrative as well of course as focusing on a lackluster session, drifting session through the asian markets as we try to get a handle on just how serious the coronavirus really is. china is rushing to contain the coronavirus, which has killed 25 people. the country has expanded travel restrictions to 10 cities, affecting 30 million people as new cases continue to emerge, but the world health organization -- a global health emergency. the time.not it is too early to consider this event is a public emergency of international concern. joined by tomow mackenzie, anchor of the china open on bloomberg tv. he is in beijing for us. tom, what is the extent of the virus now? give us the size and scope of this, and how is it impacting the country ahead of what is a really important holiday period? tom: this is really the equivalent of the evening before thanksgiving or christmas. it is meant to be a time of joy, but there is a deep-seated anxiety. you only need to scratch the surface to get a sense of how concerned people are. you look at the numbers you want to break down. so far, 25 deaths at least. there is 1000 suspected cases. 830 confirmed cases. we know it has spread well beyond the epicenter, wuhan, the capital of -- province. there are places across china, many of the provinces and countries like the u.s. and south korea and thailand. they have locks down the city of wuhan, a city of 11 million people, and then they restricted the travel on nine other cities in that province. about 30y, talking million people. there are serious questions about whether this is too little, too late, whether these measures will be effective, because millions of people would have been traveling from these cities prior to the restrictions put in place. we are holding our breaths to see the extent of the impact of this virus as these numbers are tripped across the country in the region. matt: christmas and thanksgiving are holidays where people spend a lot of money on travel, spend a lot of money on food, restaurants, hotels. how much damage has this done to the economy in china? christine: -- tom: that is the key concern because consumption and services, that is a much bigger driver of the chinese economy than anything like manufacturing, which accounts for less than 40% of gdp. services and consumption is what it is all about. anecdotal examples, disneyland in shanghai, they are closing that. that is a huge province with cities like shenzhen. they are closing all the cinemas. macau is potentially looking at closing all the casinos there. report saying you could see, if there is a drop of 10% in terms of consumption, that could lead to a cut in gdp of 1.2%, so it is significant. anna: tom mackenzie joining us there with the size and scope from beijing. next up, we will speak to the access ceo. that interview from davos, next. this is bloomberg. ♪ matt: welcome back to the european market open, we are a half hour from cash equities trading in europe. equity index futures are gaining significantly, it is the last trading day of the week and dax futures up their appointed percent. let's get the bloomberg -- futures up 0.8%. billion --p of $10 the chemical giant is setting aside $8 billion to resolve cases and $2 billion for future claims. by declining to comment under the terms of negotiation, 85,000 suits may come within the month. malera of the all-white board may be coming to an end. goldman sachs will not do business with companies if they lack a director who is the male or diverse. women onachs has four its 11 member board. awardedmon has been $31.5 million in compensation that includes $25 million of stock. million in cash. he has run the company since the end of 2005. they sell record profits for the second year in a row. anna: thank you very much. we are back to davos, the bringing together world leaders, policymakers and company executives. one of those joins bloomberg's haslinda amin. haslinda: with me is thomas buberl, ceo, axa. coronavirus has spread beyond wuhan, from an industry perspective, how do you view it? thomas: this is the new norm because we see more viruses popping up due to climate change because viruses do travel. we have to deal with it, and when you look at the response in wuhan, it was very professional and detected early. it was condemned early on, and we were involved a lot. towas a good opportunity show to our customers that we are there and we can help in a normal situation. haslinda: has the world learned from the sars outbreak? was learned in emergency situations but forget when they have gone. we need to remind ourselves the environment is changing, it is getting warmer everywhere and therefore new viruses will pop up. -- theorward the end indication on health is something we need to understand better. haslinda: australia is a case in catastrophes. how is the industry evolving to take that into account? you see more true natural catastrophes, but the pattern is not clear yet. if you go back to last year there were more smaller ones. if you go back further there were fewer big ones. the patterns are not clear other than we had more of them. the insurance industry is looking at this because it is a bigger burden in terms of loss. we try to help our customers do better with prevention. globally, the majority of these catastrophes are not even insured. $130 billion is the protection gap of people suffering not being insured, and that is a problem. haslinda: i want to look at the bushfires in australia. we had a conversation yesterday, and it was said that it is tommy early to estimate a cost. is there a way how much this will cost australia? very difficult to say, when it comes to your exposure it is clear what your exposure is, but if you look at the total thesure you will have noninsured part which is the majority. therefore it is difficult to estimate. when you look at the imprecations on australia from the bushfires and beyond, the consequences on the economy will be tremendous. haslinda: wil