Clearly, coronavirus is not impacting future sales all that much at the moment. , data as well, storage center, those kind of chips doing well. That is having a halo effect on some other chips. A couple of them are lower as well. There is some treasury buying along with the equities bounce, so we have to take note of that. 7 . 10 year yield at 1. 5 we got Consumer Confidence data above 100 today from the university of michigan. Preliminary february data increasing, and revisions to december. That said, retail sales didnt exactly reflect increased confidence. They were pretty stagnant, if not a little disappointing. Guy here in europe, stocks heading back to flat. We bounced off session lows. Volume is ok. We are going into a long weekend in the United States. Do you want to carry positions over that weekend . Eurodollar positive, but only just. Data out of germany pretty weak today. While we are seeing some commodities trading higher today, you always want to Pay Attention to what is happening with copper, trading down another 0. 6 . Lets focus on the coronavirus and the impact it is having on the auto sector. Fiat chrysler plans to Halt Operations at a plant in serbia due to a lack of parts from china. Renaults interim ceo told bloomberg they may be forced to close additional plants. We had to close our plant in bussan, korea. Damphere with insight is locations on the Global Economy, joining us from hong kong is Sophie Kamaruddin, and matt security at the munich conference with more on germanys stagnating economy. Sophie, what is happening in china . We are increasingly seeing higher and higher numbers. We are also learning that beijing is now telling people returning home that they need to stay in their homes for 14 days. The chinese dont see any let up in this story. Sophie china will want to ramp up quarantine measures, and as you pointed out, we got the latest reports regarding cases on the mainland, and there were some inconsistencies in the data , which has sparked some confusion. The big jump we saw in hubei today,as a oneoff, but china did lower the hubei reported cases by more than 1000, why also while also trimming the nationwide death told by more than 100, citing double counting and those numbers. Aside from wuhan, there is a call for other cities and will bake for other cities in Hubei Province to step up measures. Medical staff have been affected , more than 1700 medical workers on the mainland have been infected by the coronavirus as of february 11. As you point out, beijing looking to quarantine people returning to the city for two weeks, according to local media reports. Vonnie phase one goes into effect today as well. Obviously, china is relying on its own economic data. What is the amount of stimulus that will be needed to offset any Coronavirus Impact . Sophie weve already had much expectation regarding what the pboc may do to pump liquidity into the system. Expectations for further rrr cuts. We had the politburo citing the emphasis on stimulating the economy, boosting domestic demand. Theres going to be a lot of emphasis around this, especially when there are signs that factories on the mainland may be slow to restart. Power demand in coastal regions hasnt quite picked up yet, but we may see a boost for output after the first quarter, so we will be looking out for that. Thank youndeed very much, indeed. Vonnie the latest out of germany shows the country enter 2020 with a declining thisacturing, and coronavirus threat. Joining us from the Munich Security Conference is bloombergs matt miller. At least the conference went ahead, unlike the conference that is not going to go ahead. What are investors saying . Matt a much bigger event has been canceled and the world conference. You have rugby being postponed, the formula one race that has been postponed in shanghai. That really is affecting a lot of things, especially closer to asia. , evenjust heard from guy carmakers in europe are having to shut down plants because their supply chains have been because of stopped this coronavirus. In terms of the German Economy, we heard from the Economic Ministry today that risks to the German Economy are even greater due to the coronavirus, and he German Economy ground basically to a halt in the last quarter. It flatlined quarter over quarter, although yearoveryear, there was still a little bit of growth. Youve got this coronavirus, youve got a slowdown in the auto industry, youve got the brexit issue, as well as a possible trade issue with the u. S. If President Trump turns against the eu in terms of the trade war. Oft is kind of the theme this Munich Security Conference this year. Westre using the term the u. S. Because of turning its back on nato, on its european allies, acting more isolationist and protectionist. The talk here is about what europe would do, what the rest of the world would do if the u. S. Retreats further. For example, germany supposed to pay 2 of gdp into nato. It doesnt really get very close to that. One of the points brought up here is if nato and europe split, that 2 is going to seem like a very small number in hindsight. Guy back to the economy, any sense at this point that things arent going to improve . This was meant to be the year that europe saw some better data , but the data we saw today was precoronavirus. What are economists saying about how big a hit the coronavirus could mean for the German Economy . Matt the concern about coronavirus is a serious one, and economists and government ministers really arent saying much. As you know, they want to take a wait and see approach. They think there is too much uncertainty to make an assessment right now. The one bright spot i noted in this mornings report is one of the reasons for the weaker growth in the last quarter was that the government was at spending as much. As you know, the ecb has been trying to get berlin to spend more for some time now. There is optimism that christine lagarde, as the new head, is going to have a little bit more success. German attitudes are changing a little bit about that, possibly getting a little more relaxed in terms of spending, and they do need to beef up the military, especially if they can count on the u. S. A lot less than they were able to previously. Vonnie matt miller in munich for that security conference for us, thank you. You can see he has wrapped up. It is a cool 44 degrees there right now. Guy for more on these markets, we are joined now by ubs global head of Debt Syndicate armin peter. If they actually put it on the screen, i might be able to read it. Let me talk about where these markets are at the moment. We are in the situation where debt markets, equity markets, pretty much every market is on a tear at the moment. There seems to be disbelief that if coronavirus is a problem, then the pboc, the ecb, the boe, the fed, premuch every central bank around the world is going to step up. Is that a step too far . I think it is exactly with the market is currently thinking. Have been looking through all of the challenges we just heard from a market perspective. All markets are rallying. If the Central Banks step in once the data is coming through, it would confirm all of the fear it is discounting right now. For now it is speculation, so lets wait for the data. I am pretty sure the Central Banks will be there, but that means right now, liquidity goes into the market. Guy it is amazing. If you look at the funds, you wouldnt have expected the start of the year that we are having right now. In any of these Asset Classes. You specialize in debt. You must be trying to figure out how sustainable this is. The credit market cant keep going like this. Armin you are absolutely right. At christmas time when you are pitching for the business to come in the first quarter, the first question was it has been such a fantastic year in 2019. What is to come in 2020 . The first question everyone asks is more about where yields are going. Now you are sitting on record issuance volume. Investors are investing the cash they had, 25 billion this week only, and we are at 750 billion of issuance your to date. This is a Record Number across all Asset Classes you can think of. It is too good to be true. Come . when did the turn it felt like we were looking for for many of our guests, and it hasnt come. Where is the wave of fallen angels we will rating for . Armin honestly, those fallen angels i think is probably right now exactly what investors are looking for. Hunting more or less where the yield is remaining. It is why you see global government yields continue to be record lows out of that asian investors. You see european investors buying em debt. Scramblingryone is to find that last reach for opportunity in the market and yield. Vonnie how do you do that when 10 year yield is below 2 right greeces 10 year yield is below 1 right now . Money we continue to make with a negative yields. The concern has been how to make ,oney with a negative yields yet returns we havent dreamed of for type sometime that for quite some time. Greece might be a buy. Guy we have some fantastic charts on that one. Thank you very much for sticking with us. Armin peter, ubs global head of Debt Syndicate, is going to stick with us. Vonnie lets get a check on Global Markets more broadly now with kailey leinz. We are looking at a very mixed picture today. You have the continued overhang of the coronavirus into potential growth implications. Some uninspiring retail sales data in the u. S. And some stronger corporate earnings. The net result is emerging markets flat, the s p 500 the ftse 100 still the under performer, down by about 0. 6 . I want to focus on the s p 500 and whether or not it may roll over as we continue on in the session. In 2020 havear been not very kind to equity investors. On average, on friday we have fallen 0. 6 , by far the worst performance of any day of the week. We have been down three fridays in a row, five of six this year. An interesting pattern to watch. We will see if the s p can hold onto the gains we are seeing so far. Wti is higher by the better part of 1 today, and is actually its fourth consecutive day of gains. That is the longest winning streak this year and the best week since back in december. We are back near 52 a barrel. Oil bore the brunt of selling amid coronavirus fears because of the impact it could have on demand, but investors are rolling back those trades a little bit. As for what that means for the broader commodity complex, we are seeing a bit of a rebound. The bloomberg commodity spot index is off the lows of about two weeks ago, the low for a year. Vonnie kailey leinz, thank you for that. Much appreciated. Is at 5949 in your bloomberg chart library. Remover, the function remember, the function gtv allows you to browse all of the charts featured on bloomberg tv. Catch up on analysis and save your favorites for future reference. 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. Lets check in on the bloomberg first word news. Here with the details come according to the ho. Courtney details, courtney donohoe. Rose in retail sales the fourth quarter. President trump maintains he has the legal right to intervene in criminal cases, but so far, he says he hasnt done so. That is a response to attorney general William Barrs criticism. He said that the president s tweeting about Justice Department cases has made his job impossible. Theie sanders status as democratic residual frontrunner has caused some jitters and congress. There are fears that it could turn off moderate voters that some Democratic Candidates need to be reelected. U. K. Prime minister Boris Johnson has taken more control of the treasury, and that could lead to more generous, trumpstyle stimulus. Chancellor quit as of the exchequer rather than give into johnsons demand that he fire his top advisers. 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. Im courtney donohoe. This is bloomberg. Vonnie thank you. We are back now with armin peter, ubs global head of Debt Syndicate. What is the next centralbank action that will have a significant market impact, and where does it come from . Armin did next centralbank that has a meeting that really relates to the european markets is the ecb, but i think they will wait and see, as we heard earlier on. Afterwards, we have the fomc again. I think the next change in the ubs, wef strategies at believe we see a cut in the u. S. I think that would be material for the market. Vonnie that would be against consensus at the moment for the next fomc meeting to produce a cut. What would make you say that . Do you also believe that, given the data we had come a preliminary confidence above 100 and retail sales that were in terrible . Armin you are right. The latest data from this week are probably somewhat contradicting argue for the time being. s tangiblevirus proof that this will be a challenge. It can come to the fact that the slowdown wil come through finally. We are looking at a world that is talking about negative rates, so why not the u. S. Following lower . Notnecessarily like it necessarily negative, but lower. It is a sign for the Global Market that yields are not rising. Guy lets talk a little more about the ecb. Bips. I hear is 30 that would take the ecb down about as far as it can go. Do you think [no audio] armin i think again, data coming through first before we are actually going to do something. I dont the qui are going to see a cut in march. Probably more april. Guy a hear what you say about the effect. We are now pushing on a piece of string and it come to the liquidity story, to a certain extent when it comes to rates. Our people talking in the credit markets in your world about the fact that the ecb has come back into the market, or increased its size in the market by a significant order of magnitude. Is the ecb going to step up by significantly more credit . Armin they could. They already do. This rally is carried by technical factors, so if they would do even more, it can only actually accelerate the rally. End, thisthink in the is why investors continue to all comfortable across Asset Classes, including debt, where we have the types of credit indices and spreads to continue buying. Clearly, there is appetite still, and the freds are still attractive enough. What kind of and the spreads still attractive enough. Armin we see the m a activity coming back. We see issuance coming to the market. See the tech sector very active, yet we have seen the car industry as well with successful transactions in the european markets. I wouldnt pick out one particular sector or one particular area. It is really, for the time being, everyone. What is true, i think issuers see the attractiveness of the current levels and are bringing planes forward. Guy the lvmh story was up till he sensational the other day. Thank you for stopping by. Armin peter, ubs global head of Debt Syndicate. This is bloomberg. Guy from london, im guy johnson. Vonnie from new york, im vonnie quinn. This is the european close on. Loomberg markets it is time for a look at some of the biggest business stories in the news right now. Google may be on the verge of a major change in its relationship with news organizations. According to dow jones, google is negotiating about paying for content that would be used in a premium news product. Dividendas slashed its and posted its first net loss in a decade. French automaker sales declined, plus income from its japanese partner nissan plunged. Renaults full year operating in palm operating income dropped at a worse rate than expected at 30 . That is your Bloomberg Business flash. Guy as we come into the close, the ftse 100 for most of the afternoon has gone down. The dax envy the dax and the cac were in positive territory, but we are now beginning to fade. Ftse down, cac down by 0. 3 . The european close is coming up very shortly. We will run through all the details, not only today, but of the week. This is bloomberg. Guy 30 seconds until the end of regular trading in europe. Most of the markets have bounced off of their earlier lows they are still down. The dax is flat, the cac 40 down. 3 . Real laggard has been the ftse 100. Names like hsbc and at row seneca and astrazeneca are knocking the market. We faded midafternoon. We tried to climb off of the earlier low. We have not done it that successfully. Volume is low but it is a long weekend. , monday, youle want to hold the risk with the coronavirus . I was fascinated by the travel and leisure. The airline sector, even the crew sector has done reasonably well. Look at what is happening with this statement, particularly the airlines. Technology has done ok. Only one sector over last five days. That is oil and gas. Today a little bit more rosy. Defensives are not doing well. These are names like nestle. The utility sector continues to be a standout performer. The bond like proxy story, rollbacks rbs the royal bank of scotland, changing its name. Is it a game change . A lot of us are jolted by the association of rbs with the financial crisis. Does changing it in that way change things . The new boss will slim the business down and she will refocus it and turned it away from some of the Capital Markets operation. The stock down hard. The coronavirus is having an impact on astrazeneca. Trade is down 4. 35 . There the recovery people are hoping for will be deferred by the coronavirus. Astra a big drag on the ftse 100. That is european close. Vonnie we are seeing buying inequities and that will give you an idea of the flips in the market. There are continued jitters over the coronavirus. Is offering, u. S. What china will accept. We do not know yet what kind of response will come from the chinese authorities. The monetary authorities and the fiscal authority.