The pullback overblown . A change at disney. Bob chapek becomes ceo immediately. Bob iger will remain chair and continue to direct creative endeavors. Another bloody day in the markets on the back of more bad news on the coronavirus. Watching the edge of another cliff. No surprises for how we are set up for this wednesday trading day. New zealand already off by almost 2 futures. Here in sydney, poised for another drop. Asx off this week. A couple of things to watch out for when we do get going, Virgin Australia announced a firsthalf loss of 97 million. We are also expecting rio tinto earnings after the close. Nikkei futures off about 1 5 of 1 . A quick look at the currencies. The aussie dollar did briefly dip below . 66. It is just holding on above that level them. The yen continuing to strengthen. A little bit of a rebound but not much in the 10 year as well. The u. S. Centers for Disease Control and prevention is warning americans to prepare for the coronaVirus Outbreak at home. It is not really a question of if this will happen anymore, but when, and how many people will become infected and of those, how many will develop a more severe or complicated disease. We had been preparing for this threat and to limit the impact on the community for years. Emily to tell us more, Abigail Doolittle in new york. Abigail another brutal day for the markets. It is a fourday market selloff. It intensified on friday when there was a market pmi services miss. Showing that the coronavirus in china was already impacted Economic Data in the u. S. Yesterday, the cdc warning. Today, another big down day. The dow transports down more officiallythe day, in a correction. Thistors want all of before we even had this tragedy, this coronavirus in the u. S. Not if, but according to the cec, when it does hit here in the u. S. , that is why we have stocks tumbling. Earningsw tradeoff of so there is reason to think that the earnings picture will be cut. How long will it happen, that is the unknown. Scaringwhat is probably investors. 10 year yield hitting a record low as investors are piling in. 1 ,ave bonds confirmed for a number that many folks last year were calling for. Since the start of the outbreak of the coronavirus, it is risk off, risk off, and risk off. 14 ,llow, crude oil down nower down 10 , the s p 500 down 6 . What a reversal. On top, you can see bonds doing the best, of 3 . Some of the big names being hit, not surprisingon top, you can, s apple and microsoft. American airlines in a bear market. Down 20 . Over the past five days, down 18 . It appears Global Travel will really be stymied by this. Wynn resorts, their operations are really being heard. I think it is the unknown factor sending stock orchids tumbling so much and sending investors into haven assets. Emily Top Health Officials have described a range of measures that the u. S. Government could take if the outbreak spreads widely here. Include disruptions to daily life, school closures, conferences. Cdchis stage, why is the giving these kind of warnings when a local outbreak has not happened yet . I think it is from the notion that it is better to be over that underprepared. The fact that we are starting to see these outbreaks that are not connected to a visible chain of transmission from china. The sooner you start to prepare the population for the potential need of Health Measures for those cancellations, for this dental quarantines, potential quarantines, the faster they will go. And you can Start Talking to people about the actions they can take. It is better to think about that ahead of time as opposed to panic once we actually see an outbreak, if that happens. Paul what should americans make of this apparent contrast between what the cdc is saying and what they are hearing from President Trump and larry kudlow . If they go with one authority here, i think it will be the cdc. People looking at the data every day and not necessarily focused on what might be best for the stock market or their reelection prospects. It is not time to panic. It is time to think about how to pair should you actually see transmission in your local area. What might he do about childcare, medicines. It is not time for people to start rushing to the store but you should have a plan in place should there be an outbreak in your area. Paul lets turn to the situation in europe and asia, where more cases continue to be discovered. Yvonne man is in hong kong. Guests in spain now has on lockdown. Yvonne about 1000 workers and guests at a Seaside Hotel on a Canary Island. This is after a couple from italy who stayed at the hotel tested positive for the disease. They said this is more of a preventative isolation. Switzerland, austria. Seems like the cases are spreading across europe and all cases had links to italy. At least 322 infections. Meanwhile, in the middle east, it seems like this virus is spiraling out of control in iran. The Deputy Health minister himself contracted the disease. Cases in theber of middle east, about 140. The death toll in iran, 15. In japan, with the Tokyo Olympics just five months away. Forcing the Japan Football League to cancel. They are saying they have full confidence in japan and china, that they will address the necessary measures. Emily the Hong Kong Government has announced more minutes of measures. Schools will remain closed for longer. Taken . All of this being yvonne not well. Parents know that their kids will be out of school for weeks. First it was protest related, now it is the virus. People are asking for refunds. Hong kong tuition when it comes to international and private schools, not cheap. Impact the virus could have on the economy here. That is why, all eyes on the reserves tohe cash stimulate the economy. Paul thanks very much for that update. Still to come, the s p is on pace for its biggest fourday slump since september of 2018. The impact coronavirus is having both in the u. S. And globally. This is bloomberg. To bloombergback markets. Lets get the first word news. Asu. S. Markets plunged again investors considered the possibility of a coronaVirus Outbreak at home. The centers for Disease Control warning americans to prepare for disruptions to their daily lives including the cancellation of Public Events and business meetings. The cdc said it is not a better matterbut when not a of if, but when the virus becomes widespread in the u. S. The Tokyo Olympics are more likely to be canceled and postponed if the virus worsens. Months to have 23 decide, adding that the scale of the event means it cannot be delayed or moved. Violence has erupted for a second day in new delhi with rival groups clashing with themselves and police. More than 180 were injured in the twodays of violence. Parliament approved a law which fast tracked the rationalization for some foreignborn religious minorities. Which excludes muslims. 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. Group because emily rising concerns about the spread of the coronavirus. For more, Riverfront Investment Group senior Portfolio Manager rebecca felton. There has been a lot of news today about coronavirus cases around the world. Have any of these new developments evolved your theory about what impact this will have on the market . Rebecca yes and no. The headlines are so difficult in terms of how you quantify that sort of thing. Orchids were at a roughly 14 earnings. We do not like to react to headlines. We had levels where we would take risk off short horizon portfolios. Headlines, we are not reacting to. Market levels, we are watching those. Emily talk to us then about what you think is the most likely scenario and believe you will be operating under as you continue daytoday business. Atecca the things we look are the things that we know we can measure. U. S. Data, consumer related, given that consumer is 70 of gdp. Houses are strong. The number of young people under 35 who own homes has popped up to 35 . Says they want to own homes. We want to focus on the fundamental drivers. Stops said, draw eight particularly in the shorter horizon portfolios. Even today, the trend is still rising. Last week, we had Investor Sentiment and extreme optimism levels. Now we are back down into neutral. We do have this chart on the bloomberg terminal that shows the s p has fallen for 50 and 100 day moving averages. A continuum. At one end, the initial reaction was all complacent and now the reckoning is here. Through to,main pass, lookthis will for buying opportunities. Rebecca we are probably in the stay calm. We dont have any reason at this point to change your thinking on that. Paul so when you are looking for buying opportunities, where are you looking . We have seen some hefty declines in bluechip stocks like apple. Right now, we are heavier on the software side. We are also looking at some dividends, stocks, utility. Selective inpretty terms of where we have been looking inside the u. S. We have some emerging markets. Obviously, we are watching that closely. Emily obviously you have apple and other Tech Companies with big footholds in china. Byn you have under scrutiny governments around the world. Iily i am going rebecca am going to ask you to repeat. We are asking about regulatory scrutiny or coronavirus scrutiny . Tech your thoughts on big market performance, apple, which obviously has production lines in china, and buddies like google and facebook who are under scrutiny by governments not just in the u. S. , but in europe and beyond. Got throughn we fourthquarter earnings, about a third of the companies on the s p 500 mentioned growth implications of what is going on overseas Company Production slowdown. We still were not able to see anybody truly quantify what their impact would be. Again, it bears watching. Were think about where we last week i think we just have to keep our eyes on the fundamentals. We are now down to wait 17 forward multiple. That is not necessarily rich if you think about the Growth Prospects in the back half of the year. Emily what would have to happen in order for you to change course dramatically . Rebecca our tactical rules would have to change. Basically still being accommodative. The trend is still rising at about 80 . Investor sentiment has fallen back into neutral. Our shorterterm moves will be predicated on those three rules. That is still positive. If we were to start seeing ,arger, more than one month retail sales, consumer confidence, both the Conference Board as well as the university of michigan, if we were to start to see lower readings, i think that would be cause for us to reevaluate. Felton,ebecca Riverfront Investment Group senior Portfolio Manager, thank you. Emily coming up, disney just got a new ceo and it is a company veteran. That is next. This is bloomberg. Emily disney names bob chapek has its new ceo after years of speculation about who would succeed bob iger. Companys theme parks and products. Iger becomes chair. This is a surprise announcement, though there is some speculation regarding though there has been speculation regarding succession plans for years. Contract was by the end of 2021. Who were expecting to hear something, just not today. Chapek is officially ceo now. Iger is still around as executive chairman. Iger will handle the creative responsibilities while chapek sort of gets up to speed on the tv side of the business. It is a little strange. Previous heir a apparent, who eventually left the company, toms tax, he was named coo. This is a little bit of a different approach. Emily tell us more about bob chapek, who he is and what he brings to the role . He has been very successful for what he has done, running the parks business, for many years the biggest business and disney and most profitable. They have been rolling out new land andcluding avatar a couple of star wars lands. Star wars land was a little bit slow to start. Attendance has been picking up. There was the introduction of disneyland and shanghai. It has been struggling lately because of the clone because of the coronavirus. He has been viewed as an official operator, a good divisional chief. Whether he has the Strategic Vision that iger has brought to the company, that is still to be determined. See disney shares move a bit lower after this move. Why is the market reacting negatively . Was it the surprise factor or Something Else . Is our initial impression. This was a jolt to the market. There is a little bit of just, you have to clear the area little bit. Ger and chapek arnie Conference Call immediately iger and chapek immediately got on a Conference Call after. Also leaves the Parks Division without a ceo. s i guess that will be chapek order of duty. That is a very Important Role to fill. They have realigned those over the years. Parks was initially separate from consumer products. There was another executive who a lot of people thought would be the next ceo, kevin mayor, still a very important executive, overseeing disney plus. What will they do to keep him happy and keep him in the fold . Emily you have to wonder, does this have anything to do with the current political climate. Obviously, bob iger has been asked many times if he has political ambitions. Obviously, a lot of macroeconomic issues. What could be some outside factors that may have precipitated this . I think you are asking all the right questions. So far, what we know is what chapek and iger have said in response, that this is very much about the division of labor. Knowing that iger would be heading out the door at the end of 2021 anyway. He is still committed to that date, which probably leaves him out of the president ial election. But you do have to wonder about his ambitions for the future. Hasust put out a book, he sort of a tour around that. It is hard to imagine him staying out of the limelight forever after 2021. Are there other reasons . I think it is a great question. You have to wonder if maybe someone else was knocking on chapeks door. I am purely speculating now. We will have to do more reporting and figure it out for you. Emily we will ask him directly. We will be interviewing him momentarily. I will be speaking with iger and bob chapek in the next hour. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. Paul welcome back to Bloomberg Markets. I am paul allen in sydney with emily chang in san francisco. Its get back to the coronavirus story and focus on markets with david. E lists is there anything in particular you are watching . Levels,ome key support especially in japan at 200 moving day average. I think what is worth noting as we have another day of risk aversions, its the type of negatives we are seeing in the selloff of the u. S. Extremely heavy volumes as well. In case some of our viewers missed it, the s p 500 is a bad day away from entering a technical correction. We will give pressure across equities early. Ae u. S. 10 year yield touched record low overnight. Closed above 1. 33. We continue to check these lows today. I the looks of it right now, it or nineack for a section of decline in the last nine or 10 days. The u. S. 10ntioned year touching that record low. But yields have been falling around the world as we see risk aversion to have spread. Coincidence that a lot of the superlatives and statistics that we come out with, worst day since august, japanese yen, best today since august, its almost like we are moving back to the situation in markets and conditions when you had yields pushing down. The value of negative yield in trillion. T 16 or 17 it feels like we are pushing towards those conditions. I do want to bring up that very recently, there is a chart that shows you this, the yield have come down. ,he yields, your high yields your asian dollar bonds in the u. S. , brent has been widening. It answers your question that we are seeing risk aversion spread into the credit markets. Yields are not exactly falling all over the world. You are starting to see early cracks. David, there have been so many headlines about the potential cancellation for the olympics. What are you following closely in china and hong kong . David hong kong will be a confirmation of what we know already. We have gdp coming out today. It will likely show a confirmation thirdquarter of contraction. The budget will be much more important as well. Muchudgets of how firepower the government is actually prepared to spend. In china, we could talk about this later on, but turnover has been on the up. We have the highest levels in turnover in both exchanges going at or around the time the market selloff. A lot to watch. Emily Bloomberg Markets anchor david ingles in hong kong with the view from asia. Lets get back to the coronavirus epidemic, cases in italy continuing to rise. Up past 320 cases and 11 deaths. Growing fears have turn the usually packed venice into a ghost town during carnival celebrations. Switzerland has its first confirmed case from a man who visited milan. We are join on the phone from alessandro. What is the latest . The latest is that the number of cases has gone up, but there are slow signs of stabilization. [inaudible] which was quarantined off. On the other hand, the economy is down. Alessandro, thank you for your reporting, we are having trouble with your line, we will work on that and come back to you. I want to talk about u. S. National security. The