It was an unusual decision. Kailey democrats unite sen. Sanders we are going to unite together. Kailey a Cabinet Reshuffle in the u. K. Takes a startling turn. Not someone walking out on the job. Kailey an exit interview with the outgoing Credit Suisse ceo tidjane thiam. Tidjane the true legacy comes after we leave. Kailey it is all straight ahead on bloomberg best. Hello and welcome. I am kailey leinz, and this is bloomberg best. Your weekly review of the most important Business News, analysis, and interviews from Bloomberg Television around the world. Lets start with a day by day look at the top headlines. We began with a familiar focus, assessing the spread of the coronavirus outbreak and measures to blunt its impact. The global death toll from the coronavirus has now topped 900. Hubei province posted the most fatalities for one day. Medical experts from the w. H. O. Heading to the epicenter of the disease with the agencys chief expressing concern over the spread of the virus among those with no chinese travel history. Youre seeing a cluster of new cases in france, spain, and the u. K. They all appear to have links to a french ski resort where the affected people had contact with a british man that had returned from a conference in singapore, where he is expected to have contracted the coronavirus. That raises fears of a super spreader event. The Chinese Government is going full speed ahead in terms of trying to contain this. They say they have spent already 4. 5 billion of the 10 billion they have pledged to try to contain the outbreak. Haidi special measures to combat the coronavirus outbreak with the first batch of free lending funds to start today. What is the intended effect and who does it go to . Enda it is an emergency member by the pboc and what they want to do is to get nine banks to speed up the lending process to companies that need cash most. Those companies that are being most hit by the impact of the coronavirus. It is another one of these cases where we are not talking yet about all out stimulus, but it adds onto the narrative they have shifted from worried about too much debt and are now focusing on growth stabilization. They have taken steps to shore up Financial Markets and this is one of their micro steps to get money into the real economy. Kailey it is now official. Tmobile has approval for its takeover of sprint. A regular monthly Subscriber Base of 80 million, in the same league as at t. Jennifer it was an unusual decision, because rather than taking each of the companys defenses to what was perceived as an anticompetitive deal, based on their combined market shares, and based on what we call the hh index, commonly used to assess a merger, no defense on its own met the test that is set forth in the department of justice guidelines. What this judge did instead, is said, if you take them all and put them together, they rebut this presumption that the deal is anticompetitive. Also the judge accepted the remedies of the department of justice and fcc imposed, to divest assets to dish and set dish up to be another competitor in the market. David the Federal Reserve chair Jerome Powell testified on capitol hill for about three hours now before the House Services committee. He says the economys Monetary Policy is about where it should be. He did refer to the coronavirus in china. Tell us about the headlines for you. Were there any surprises . Michael no surprises, david. Jay powell speaks after every fed meeting, and of course every fed member speaks quite often. So we have a good idea what theyre thinking at any given time. This is more of a chance for the fed chair to speak on the coronavirus for the first time. He did suggest that yes, the fed anticipates there will be an impact in china. But how much of that spills over into the United States and globally, it is still too early to tell. The fed will continue to monitor it. Jon senator sanders coming out on top in new hampshire. A tight finish leaving that best of the rest to take it to nevada. Sen. Sanders we are going to unite together and defeat the most dangerous president in the modern history of this country. Kevin for senator bernie sanders, it is onto nevada and South Carolina after winning here in the granite state, and also for former south bend mayor pete buttigieg, another strong showing. But it is senator Amy Klobuchar who took third, place beating senator Elizabeth Warren but also former Vice President joe biden. She now meets with donors to try to get more fuel and cash for her campaign. [bell ringing] scarlet we are looking at gains on a day record highs, the s p and nasdaq, 2000 getting 7 10 of 1 . Romaine a lot of folks shrugging off concerns about the coronavirus. Scarlet right. The reason people are optimistic as well as Hubei Province reported the lowest number of new cases this month and the number of suspected factions inside Mainland China also declined. Haidi there are number of new cases and deaths from the coronavirus in china has served desk surged after the province revised its methodology for counting infections. Selina this is a massive change. This methodology lead to a spike in 15,000 cases in one day. Compare that to yesterday when you saw the lowest number of cases, around 2000 on a in a month there was optimism we were starting to see stabilization in terms of number of cases. This spike is likely going to lead to more public anger and scrutiny of the governments handling of the crisis, since it appears that had been reporting numbers that were lower than what the actual instances of these cases. The government has of course been criticized after the death of the doctor who sounded the Early Warning sign as well. Guy the u. K. s minister, the chancellor of the exchequer resigning thursday in a Surprise Development on the day the british Prime Minister is shaking up his conservative government. David m we are used to tensions between the chancellor and Prime Minister but not some on walking out on the job. And we are a month away from the new budget, the first budget since the new government has happened charting the course of britain outside the European Union, four weeks away and suddenly the chancellor has walked out the door. We had an instant reaction, the pound went up a bit, why, because theres next dictation that theres going to be bigger spending. Johnson wants all these new voters across the north and he has made very clear he wants to service them in this budget. That means more spending. You have to assume that javid was trying to put the brakes on that and now he is gone. Flavia if the eu is watching this and they think is going to be a replay of the previous time, it is not going to happen. The message is that we are willing to walk off the cliff at the end of the air, and we are not going to ask for a transition and not going to ask for more, and we need you to believe it. That is the message that is being sent loud and clear. Peter alibaba warning of a significant fallout from the coronavirus on its revenue, and chinas economy. The Company Posted betterthanexpected results in the last quarter. But prospects for the Current Quarter do not look bright with expectations to hurt its ecommerce and travel bookings. The ceo very clear about the enormous uncertainty in the chinese economy now. They do not know where this is going to go and do not a what is going to happen in the next few weeks and how will affect their business as. For companies, theyre having a hard time getting workers back onto their jobs and being able to do their jobs. When it comes to delivery of goods, to consumers or other businesses. There also having a shortage of workers on the consumer front alibaba was clear that consumers are fundamentally changing their buying habits at this point. For example, they are buying more of the groceries that alibaba ships. But then cutting back on all sorts of discretionary spending. So it is a fundamental change in demand, too, and alibaba it does not know where this is going to go from here. Vonnie the death toll from the coronavirus continues to rise. Disagreements between the u. S. And china about transparency threaten the fight. Dir. Kudlow we are more than willing to work with the w. H. O. On this, and they will not let us. So i do not know what their motives are. Vonnie beijing says u. S. Health workers are welcome to come. The World Health Organization says nothing has actually been decided. Rishaad 63,000 cases now, the death toll up by 121. These inconsistencies in the numbers has led to a lot of questions being asked. We had some optimism a couple of days ago but that has receded somewhat. Again, it is the economy suffering, peoples bank of china, again saying they are going to underpin loan growth. Also on a microeconomic level, companies such as Fiat Chrysler halting production in one of its plant in serbia, because they cannot get enough parts out of china. Loretta we now have new risk including the coronavirus. You have to take that into account when you are thinking about growth. Right now im thinking of that is a risk. I expect that certainly in china, and perhaps in asia, the First Quarter numbers are going to be weaker. There could be spillover to the u. S. Economy as well in the First Quarter. It remains to be seen by how much and for how long that will persist. In general, i am seeing that as a risk to my forecast. I have not marked down my forecast because of it. Kailey still ahead, as we review the week on bloomberg best, a conversation with tidjane thiam, the outgoing ceo of Credit Suisse. Plus, the worlds top aviation executives discuss how coronavirus is threatening their businesses. Randy there is definitely going to be pressure on our customers, chinese customers and anyone who touches china. John we hope we get through this in the next two weeks and get people on the road again. Kailey up next, the earnings parade keeps marching along. Highlights from another whirlwind week. Dave a loss and another sign that things are bleak at the vision fund. Kailey this is bloomberg. Kailey this is bloomberg best. Im kailey leinz. Lets take a deep dive into corporate earnings reports, starting with barclays. The bank warned of a challenging year ahead, and not just when it comes to profits. Matt barclays has retained its profitability target for 2020. But the bank is also warning it will be even more challenging now, given macroeconomic uncertainty and low Interest Rates. The ceo, jes staley, his professional relationship with Jeffrey Epstein could overshadow todays results. The sca and pra are probing how he characterized that relationship to the bank and how the bank subsequently ascribed to regulators. Jes i have been very transparent with the bank and very open and willing to discuss the relationship that i had with him. If you look at the r and f, i think what is important to note is that the board has done its own review, and they have looked back at my transparency, and they concluded that i have been transparent and open with the bank and with the board all along this process. And in fact, they have unanimously voted for me to be put up for reelection at the agm meeting later this year. So full support from the chairman and from the board. But there is a regulatory process ongoing, and we will let that run its course. Manus abn amros Fourth Quarter net income missed the lowest of estimates. The statecontrolled just data dutch bank, do now have to lay aside the ambition to raise the nominal dividend . Do you need to drop that commitment now as one of those litmus moments in the dividend story at the bank . Clifford no, we do not have to raise the nominal dividend in euros per share. Our commitment is to a payout policy, so each year, we payout a minimum of 50 of our profit. This year we are proposing to pay out 62 of profit, in line with last year. We are maintaining our payout ratio. As you say, that means dividends per share coming down a little bit, because our profits are down a little bit. We think the payout ratio is the best way to manage dividend at a bank, because it ensures a flexibility and means we remain robust from a capital perspective through different economic conditions. Francine rbs is going in for a rebrand, snap slashing its business and change he seemed to Natwest Group as it seeks to put its tumultuous past behind it. Katie incurring losses in terms of the resizing of natwest markets. The yield curve is still going in this direction. In our own economics and base case we anticipate it will have another yield curve cut. Those things make income harder, particularly for banks. Alix daimler is lowering european trading after the company slashed its diffidence slashed its dividends to the lowest since the financial crisis and promised cost cuts as it focuses on evs. Ola you cannot on electric vehicles. We have proposed measures to our overall fit cost structure. You talk about your vision for the future. What kind margins do you want to see at daimler . Ola we have put together program for the next three years where its about cost efficiency and also cost restructure. In our capital markets, we presented in november of last year, we said we want to put a floor in the 2022 timeframe on the car business for instance at 6 . But we have high renditions. But of course we have higher ambitions. The focus now is to make this next three years count. Francine renaud slashing its dividend and posting its first net loss in a decade. The french automaker sales declined plus income from the japanese art and nissan also is down. Clotilde it is going to be tough in 2020, to be honest. As we suffer from volatility in the market and the cafe regulation in europe. We are engaging in heavy reduction plans to rebound. Viviana nestle pushing back its target for sales growth and says revenue from china slowed even before the break from the coronavirus. It says it will need to one or two more years to return to an increase of 4 to 6 . Nestles bottled water business had its worst performance in a decade. Mark we are pleased with the organic growth of 3. 5 . It was exactly in line with what we had guided and reconfirmed in previous quarters. It was always clear the first half was going to be stronger than the second half. We saw nestles business which grew close to 10 effective december 30th, 2019. Hence, that growth contribution was missing in the latter part of the year. For those people who correctly incorporated that, we came in exactly as we guided. Going forward, we are optimistic about organic growth continuing over and above the 3. 5 levels. We need another year or so to get to the 4 to 6 range we are targeting for. Anna michelin has warned sales in china are expected to drop this month due to the coronavirus epidemic, adding to a gloomy forecast of lower profits for europes biggest tire maker. Yves our factories have resumed activity yesterday morning. But we are very prudent about the potential consequence of the situation. We know that our self will be in negatively impacted if it were ruined. Beyond that, it is difficult to guess what is going to happen. And if the chinese economy is going to stop for a very long period, it will have an impact on the entire supply chain in some industries, including automotive. For the time being, we have no specific warning or no specific concerned about our own supply. Anna softbank posted its thirdquarter loss for its vision fund. The top 2 billion of the debt comes after a slew of positive news for the company after two of its troubled investments showed signs of paying off. Uber said it will become profitable by the end of 2020. Yesterday, tmobile and sprint received approval for their merger. What are the takeaways, then, from the earnings . The vision fund lost, clearly of interest. Dave that is just another sign things are bleak at the vision fund. The outlook there has not been good. That continues and the valuation of those companies, the Portfolio Companies that softbank has invested in, does not look good at the stage at all. It almost completely wiped out their quarterly profit. So this was a surprise result. Not a good situation for the company. Taylor ridehailing app lyft is out with fourthquarter results narrowly beating analyst estimates, but that is not enough to impress investors. The stock falling 4 in afterhours trading for not promising profits sooner. What does the company need to do to get profitability faster . Eric you know, uber had the advantage of having its earnings first and got to surprise investors by moving up its profitability target. I want to be clear, we are talking about the adjusted profitability. Cuts out a lot of things. There is still even stock companies, Companies Spending a ton of money. Lyft is still growing impressively, 50 , and they got to a billion dollars in revenue in the quarter. But they have the disadvantage of being smaller. Uber has had more time to become a huge business and then start turning those levers to make a profit. It seems like lyft does not want to commit to the same timeline of its much larger rival. Kailey you are watching bloomberg best. Im kailey leinz. Credit suisse reported Quarterly Earnings with mixed results. Gains in Management Revenue offset by trading losses. The swan song for the ceo ousted earlier this month after five years at the helm. He sat down with Francine Lacqua to discuss his departure and legacy. We came to agreement with the board that there would be a change of leadership and it was announced. Im perfectly ok with that. Have you spoken to the new chief executive and has he told you he will continue and user continue and use your same strategy . The