Goldman says the coronavirus will hit prospects for copper, as Chinese Industrial action is in significantly below capacity. Anglo american starts a busy week for commodities earnings today. The curse of monsanto. In the midst of the roundup scandal, bayer faces a potential multibilliondollar lawsuit over a second weedkiller it inherited in the 2018 chemicals megadeal. Just under an hour away from the start of cash Equities Trading across europe. We will take a look at futures this morning. Acrossseeing gains europe and u. S. Futures. We still have a wild to go until the u. S. Opens, but we have decent gains in europe. Dax of more than one third of a percent, ftse futures up. 25 this morning. We also seeing gains in the u. S. , although we have solid a seven a solid seven hours until he open up over there. And dows p, nasdaq, jones futures all gaining this morning. We have breaking news on china. China is delaying its annual npc npcing according to chinas going to review the possibility of a delay. The party is proposing the delay and the npc will review the possibility of that. Lets take a look at gmm. This will show us the kind of risk on sentiment we are seeing across asia in the chinese equity indexes. We see big gains. But welosses in japan, see chinese equity indexes gaining. Turkey is up, as well, and the philippines as well as hong kong showed gains. We have of forex, strength in the rialto, the lira real, the lira gaining. Rupee climbing as well as the singapore dollar. With get into the markets mark cudmore from the bloomberg mliv team. He comes to us out of singapore and let me first ask what you make of these china life, they are considering delaying the mpc meeting. We are he expected more stimulus out of china. Mark i think both arent unexpected. They are delaying or suspending all big group gatherings, and the npc falls under the category. There is an idea this might delay the stimulus measures, but we know from the last few weeks that is not the point. Policymakers have been active. This morning, the pboc seems stingy at first glance. We had one trillion yuan in redemption, so a 700 billion net withdrawal. What door that was new or measures, minor Corporate Tax benefits, support for tax companies. Overall, the message the chinese policymakers will continue to support the markets would is remaining strong and we have seen chinese equity markets regain their post holiday losses today. Matt what kind of stimulus do you expect, mark . Mark i think they are showing they are doing all sorts of measures. They cut rates again. They are easing from the rate side, providing more direction and targeted lending, providing specific support for small companies, they will probably change some legislation around regulations on the tech side. Speed ofincreasing the opening up for foreign money, so there are so many measures they are providing. That will continue to be the case and they have a lot of tools in their toolbox. I dont think we should be narrowminded on what they might do. Policymakers have been in this stance for a long time now. This is a slight escalation of a trend we have seen of proactive support for their markets. Matt cannot just china, right . She has said she wants all of the global Central Banks or all of the global governments to Work Together in concerted action. Do you expect that is a possibility . Im unsure it will be concerted, but the messages coming out clearly. Governments need to provide more fiscal stimulus. My slight worry is we have heard this message for years. It is time for many governments to step in, most importantly europe. Likee not seeing countries germany be quick to loosen the purse strings, but overall, yes. We are moving into a world with more stimulus coming from governments. The u. K. Is at the forefront of that message, but there will be fiscal stimulus from here, but im not sure it will be quite as rapid a shift as some would like. Of the day ontion the mliv blog, how can world fiscal stimulus move assets. What kind of responses are you getting to that question . Mark for many people, they are saying the idea that last years fed cut was like the midcycle insurance cut and this extended bull market could go for several more years. There is certainly a large minority in the market that feel a are just about to start parabolic leg higher for Global Equity markets and there is a big debate about whether the u. S. Continues to lead the next leg or if it is the rest of the world that takes over for the next leg. I would be in the latter camp, but overall, a Good Environment for Global Equity markets, especially with fiscal stimulus from around the world but it might be the rest of the role that starts taking the lead in the next leg higher. Matt thanks for joining us this morning. Mark cudmore, bloomberg managing editor. You can join the question on todays question of the day, how can world banks move assets. Ib tv is what the type. Next, stocks to watch at the asning, including felicia the company see solid sales growth in 2020. Remember, Bloomberg Radio is live on your mobile device or dab Digital Radio in the london area. Tune in. This is bloomberg. Matt welcome back to the european open. Just about 50 minutes away from the start of cash trading. We do see some green arrows across futures after gains in chinese equity indexes, we are seeing gains in futures here and gains in u. S. Futures. Lets get your stocks to watch for the session. Dani burger isn, focusing on faurecia. Inmarie earnings, coming where profits doubled more than year ago. They are boosting shareholder return with a special dividend. They are owned largely by angloamerican for watch so watch for that stock at the moment. Their ceo is stepping down. They say possibly the new candidate will be within anglo. Matt thanks very much for that. What have you got on faurecia . Dani doesnt look good for the auto parts maker. Weve seen the auto struggle as of late. They posted a 2019 earnings which missed, lowerthanexpected and the issues will continue into 2020. Faurecia, saying a lot of costs this year helped cope with market conditions. That will continue. Matt thanks very much for joining us. A reminder from a very helpful viewer, the u. S. Equity market is closed today. It looks like futures are trading, but it is president s day. Aw could i forget, being market holiday across the u. S. Today. It is more than seven hours until they open. More like 33. Lets get your first word news. You can get it by going to the mobile app. In the midst of settling thousands of lawsuits over its roundup weed killer, bayer is bracing for a problem. The u. S. Federal court has awarded 265 million to a missouri farmer blamed another of the companys herbicides for destroying his Peach Orchards. That has opened up more than 140 new claims. Is also an firing line because they have this herbicide as well. Tim low is joining us from munich. This is a different issue than the original problem that bayer had. End all ofas this this comes from the bayer side of the monsanto purchase. Tim thats right. It is pretty bad timing. Bayerss stock has really performed well in the last six months. Investors have been thinking they have seen a lot of process on the roundup progress on the roundup front and this comes out of left field for a lot of investors. This litigation has been in the background for a while and it is bubbling to the surface. It is the first verdict. There are 140 other cases already existing. One fear is this could be a moment that incites a flurry of lawsuits, just like happened with roundup. It is early going, so time will tell. Matt what is the connection with basf . Why does basf also have a stake in this, tim . Been aroundduct has longer than lif others. Are genetically resistant to it, which is how the industry works these days. In this case, the farmer in missouri, i believe he was using basf, had bayer were Monsanto Monsanto seeds. The big illegal problem these days is slow called socalled drift. You will put it with crops that are resistant on your farm but i am next door and have nonresistant plants. Yours drifts onto my farm and kills my crops. It is different from the roundup litigation, which has to do with the causing of cancer, allegedly. Matt what kind of hit is bayer looking at in this case . Losing your Peach Orchard to me doesnt seem nearly as bad as dying. Tim pardon my laughter. Yes, that is absolutely true. 265 Million Dollars is nothing is at, but if youll remember, one of the early round of trials had it 2 billion a 2 billion price at the start. That got slashed. All three of them, on the roundup side, judges slashed them significantly so investors may be hoping that history will repeat itself here. 265 million at the onset. It is also unclear how that would be divvied up between basf and bayer. Getting headlines now across from basf. Thanks for joining us on that. Ill tell you, tim and our viewers, basf saying it is surprised by the jurys decision in the case and basf will use all legal remedies available. Tim is correct in pointing out that these massive awards often andshrunk after the fact maybe that will happen with this 265 million Peach Orchard award. Get first word news with leighann gerrans in london. The number of cases of the coronavirus has topped 70,000. The head of a wuhan hospital says a turning point has been reached as new cases fell over the weekend but the outlook across china was less positive. The u. S. House official said of containment fails to show more signs of success, we could be on the verge of a global pandemic. We spoke to the imf managing director about the outbreak. We do not make projections. We operate in scenarios. We are still hoping the most likely scenario would be relatively rapid containment of the virus. A vshape dropping in Economic Activity in china, some other impact in other parts of the world, but very fast recovery. In other news, japan is leaning toward a positive possible recession after a sales hike in the last quarter. Outbreak hitss activity. A preliminary estimate is that gdp shrunk 6. 3 in the final three months of the year. That would be the biggest slide since the previous tax increase in 2014. Global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. This is bloomberg. Matt thanks very much for that, leighann gerrans with your first word news. Coming up, coronavirus cases in china climb above 70,000. The pboc cuts rates again and hong kong and singapore join beijing in pledging extra stimulus. Kong. Live in hong when you are traveling to work, tune into Bloomberg Radio, live on your mobile device were dab digital in the london area. This is bloomberg. Matt welcome back to bloomberg market the european open. Right now, we are about 40 minutes from the start of cash Equities Trading across europe. An important reminder that a viewer gave me earlier. It is president s day in the u. S. , so u. S. Cash equities and bonds will not be trading today, although we do see futures markets pointing higher with european futures. Lets bring an update on the coronavirus situation. China sea 300 has recouped all losses since trading resumed after the lunar new year. That as the countrys Central Bank Lowers its key Interest Rates. Over the weekend, france reported the first coronavirus death in europe, and in china, the total number of cases topped 70,000. Lets get an update from hong kong on the coronavirus. Stephen engle is our bloomberg chief asian north of north asia correspondent. Right now pretty far south in asia, in hong kong. Stephen, what does the setup look like as far as what is going on with the virus and what kind of response we are getting from the chinese. Ofphen the little bit better news over the weekend, the rate of new cases, dipping down or at least staying with the lowering trend. The numbers we got this morning were a little higher on the number of confirmed cases than the day before, but the overall trend we have been seeing has shown a fewer number of daily confirmed new cases. 2048,esterday, another 1943 in Hubei Province alone. That is in excess of 70,000. The death rate, also coming down from the previous days. The number of deaths reported in china overnight, 105. It was 142 the day before, but still, it is a grim scenario hubeiin wuhan and province as a whole. 1070 deaths. All but 74 of those deaths have been Hubei Province. That lower trend number on new cases is getting a little optimism, along with the fiscal and monetary stimulus we have been reporting. We have seen the head of one of the hospitals in wuhan kind of optimistically predict we may have seen the peak, but Nothing Official from the government. Matt what further measures has the government taking here . They have tightened their quarantine on the Hubei Province. Stephen there have been tighter quarantines, including the capital, beijing. Who sayfriends there their neighborhoods have been pretty much sealed off. Nobody in, nobody out. Food delivery has stopped at the outskirts of the cordoned off areas. It is a real lockdown, and it is not just in wuhan. It is other parts. More of a took handson approach, really taking this full throttle, the marching orders from the central government. We are seeing slow pick up on the economy. Still, Bloomberg Intelligence in the latest article, if you read it on the terminal, shows by many second or third take economic indicators, the economy is still only running at 40 to 50 capacity as many Migrant Workers either havent gotten back to work, have been refused to get back to work, or have refused to go back to work. Matt thank you for joining us. Stephen engle in hong kong on the coronavirus, and the measures being used to try to keep it in check. Joining us, senior economist at pwc. Thank you for coming in this morning. Of the damageke that has been done so far to the Global Economy from this virus . I think it would be disingenuous for me to give you a number on what the economic damages. We have highfrequency indicators that are showing a slowdown and so forth, but i dont think we will know the exact until the National Accounts come out, but on the demand side, we have seen Commodity Prices go down as a result of expected shortfall in chinese demand and the supply side is the more interesting story about business is being heavenly heavily reliant on supply chains in china and not being able to source their equipment out and the implication for the production process. Matt Fiat Chrysler at the end of last week say it is closing a serbian plant because it just cant get the parts it needs. The supply chain is a big problem. Barret precisely, and weve seen that in korea with factories. Fluid chains are quite and flexible. They tend to adjust fast, but sometimes it is a capacity issue. You can shift production across the world, but you can only do that so much. That is the problem we are facing. It would be interesting to see what the implication in q1 would be for Southeast Asian economies that are heavily reliant on china. We have seen some economies like singapore this morning which downgraded growth productions projections. Matt what do you make of the reaction of the chinese in terms of stimulation . It is one thing to quarantine Hubei Province but now they are cutting rates at a record pace. Expectedhat is an reaction to the headwinds the economy is facing. The challenge is as the epidemic continues, we will unlikely be unlikely to see that reflected in the real economy. Of q1re is a softening and the epidemic dies down, the stimulus will be felt on that bounce back and the key question will be whether the economy losses inrom all the the production as a result of the epidemic or it continues. Matt we will talk a little more about this, because i want to put to you the question of the day, which is around the suggestion that global economies get together and act in concert. It is questionable whether that will actually happen, but we will also talk about what is going on in europe because we have seen a slowdown here and a little bounce back from the peripheral economies. Weve come back fighting. Barrel kupelian, senior economist at pwc, my host for the hour guest host for the hour. On theng impact of the coronavirus. He will give you a little from that interview next. This is bloomberg. Matt welcome back to bloomberg markets. This is the european open, 30 minutes from the start of cash Equities Trading across europe. Heres what you should be looking at. Mark zuckerberg is slated to visit brussels ahead of the European Commission plans to announce proposals for regulating big data and artificial intelligence. I saw him in munich, as well as eric schmidt, which is weird for a defense conference. Hsbc is unveiling its plan alongside fullyear results. Its going to be a big one in many ways. In saudi arabia, watch for the iea, opec symposium on Energy Outlooks that starts on wednesday in riyadh. They are clashing on the budget for the next seven years at an emergency summit. On friday, iranians head to the polls in parliamentary elections. Supporters of the ayatollah and his ultraconservative politics are expected to dominate those elections. Were expected to get those results february 22. The managing director of the imf says the last of deeper reforms in the Global Economy is hindering the outlook for growth , especially now that the coronavirus is dimming prospects of a pickup. We spoke to yousef in dubai. She was asked if it would cause a downward spiral in Economic Activity. We expected to be notable, chinasause today, sharing the World Economy share in the World Econo