Matt u. S. Authorities worn americans to prepare for a can potentially coronavirus outbreak to prepare for a potential coronavirus outbreak. Meanwhile, rio tintos windfall. They report their highest fouryear profit in eight years on a surge in iron ore prices, but the Company Warns of significant uncertainty if the coronavirus persons. And a South Carolina freeforall. Democratic president ial candidates turn on Bernie Sanders and his rivals came to stall the front runners momentum. Matt, let me pick up with whats going on with breaking news this morning. Weve got a number of corporates reporting. Lets get to the luxury sector with hermes. 10. 7 . S up by the estimate was an increase of 10. 7 . Thats a redhead line across the bloomberg this morning. Still talking about ambition, some commentary coming out of the luxury french business. The ceo is saying it is too soon to know when sales will rebound. There is a potential normalization from coronavirus in china. In china, there has been some decline. There is a stabilization coming through on that front, offset by the global picture, what we are seeing in south korea and elsewhere. But is something more positive happening in china, and is that positive for Luxury Goods Companies . We will get to that conversation, no doubt. Thats the picture around hermes. Got the most uptodate source from dsu. Diageo coming out and saying it is seeing a significant disruption since the end of january in china. The drinks business commenting on the outbreak of the virus and talking about the fact that its these gradual improvements towards the end of 2020. Aybe diageo is seeing crescendo in the Coronavirus Spread in terms of its China Business, so if has caused a significant disruption in china. U. S. Equities saw under pressure once again, another day of stunning declines. The s p down again by more than 4. 3 . Where does that leave us in terms of the futures picture . It means the european markets are expected to further fall. If you look at the u. S. Futures, though, we seem to see a turn. U. S. Futures point to something more positive. The dow fairly flat. Even the positivity we see is pretty flatlined. Nasdaq futures up by just 1 10 of 1 . S p futures fairly flat. U. S. Futures looked to be flat, while as european futures whereas european futures seem to be negative. Asia futures down on heavy volumes, and that seems to be widely the case in terms of the markets response to the latest coronavirus headlines globally. The philippines market under pressure, the time market, the south africa market, and on fx fronts as well, we see the south korean won under pressure. Currencies her we see other currencies in the region under pressure, and those connected to the region. The Australian Dollar under pressure. The cdc, the authority on this disease front in the United States, warning about how this will spread in the United States. And this came up in the democratic debate as well. For the u. S. Investor, increasingly part of the daily conversation. We will see what Central Banks do along with health authorities. Matt. Matt all right, lets get into the markets with mark cudmore, mliv managing editor out of singapore. Mark, first off on the coronavirus, you may have just heard that i was talking about diageo out with a warning that it has hit consumption significantly since the end of january. We have heard from a number of companies who have been out with profit warnings. Clearly its an issue. What kind of economic effect do you see in china from the first month of Coronavirus Impact . Data we are starting to get is showing it will be pretty severe, and we know that. It is going to be painful at the front and in terms of economic damage. What we are uncertain on is how long it will last and how long the markets will trade on the economic story versus the fiscal story. This is a relatively unique situation in terms of a pandemic more than a military attack, more than an oil spike, more than a financial crisis, its something that disrupts the Services Sector for a sustained period, and with a lot of uncertainty. Thats why its one of the hardest things to model. Its not like there is anything out there that is exactly the same. History often rhymes, but it does not repeat exactly. We know the economic damage going to be high. People are nervous about the pmi coming from china this weekend. But i think it is all about the longterm picture. Anna all about the longterm picture and the global picture as well. Looking at the coronavirus chart we have, 3050 on the bloomberg, this is a chart that has dominated china and the chinese response. Now we see movement downward in the chinese numbers, but a real uptake upward in south korea, and the italy numbers, still small compared to south korea. Is there a sense that you dont buy this dip until the global trend in coronavirus is downward . Mark i think what we are seeing is this explains the difference in reaction, the different time zones. Like yesterday, we saw asia trying to buy the dip. There is a theme that china has probably seen the worst of this. Im not saying that is accurate, but it is investor perception. But very much now, there is a growing idea that in europe it is becoming more of a threat. In america, it might be more of a threat. That is why the asia session is hedging more positivity. Two days, we have seen a shattering in the u. S. That shows that it is not just a global theme, but the different regions are treating it very differently. Seen 15 billion of stimulus now out of hong kong. I think they are passing out 1200 u. S. Dollars to each island. Of the what kind of impact do you expect that to have, and what kind of stimulus measures with overall, we have seen a lot out of other countries as well trying to fight this virus. Are i think it is great we seeing stimulus measures come through, because ultimately this is a crisis. It is a Service Crisis that demands a physical response, not a monetary response. A monetary response wont really help things, especially when global yields are so low. We are its important seeing governments deliver fiscal stimulus. The package from hong kong this morning, how much is it going to change sentiments . Im not sure. They are following on the heels of singapore and many other countries in the region that are promising more support to their people. It is good that people are starting to react and deliver things. Whats interesting in context is for hong kong and china, investors are trying to weigh the idea that there are two arcades that were very beaten down before the coronavirus situation, particularly hong kong, already on the verge of a recession due to the protests before the coronavirus. Now it is impacted by the coronavirus. At what point are assets tied to the story now that we are getting a proactive government response . That is the story we are wrestling with at the moment, and there is not a clear answer on which way to go. Anna we see it now. Hong kong aiming to roll out the cash handouts. Up next on the program, we will take a look at the stocks to watch at the open. We have news out of diageo. The impact on organic sales now being factored in, so that kind of business too. This is bloomberg. Matt welcome back. This is the european open. Im matt miller, live from the super return conference in berlin today. In terms of the Public Markets, we see red arrows. Futures are down significantly with cac futures off 1. 7 in paris after a Global Equities wrapped, it continued dropping Global Equities crisis, Global Equities drop, a continued drop in Global Equities crisis because of coronavirus. Sayingcoming out and consumption in china has been severely affected since the start of january. Lets get to the first word news. Its too soon to say if the coronavirus outbreak will materially hit the u. S. Economy, according to fed vice chairman Richard Claire and her. He says the virus is likely to have a noticeable impact on chinese growth, at least in the first quarter. Surprise shakeup at disney, bob , handingtepping aside the reins to bob chapek. Will take over immediately as head of the worlds biggest entertainment company. In the latest democratic debate, all Bernie Sanders six rivals hoisted attacks, stalling his momentum. Michael bloomberg has been rising in National Polls after spending more than 5 million on advertising. A reminder, bloomberg is the owner of the Parent Company of bloomberg news. Global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna thanks very much. Lets get on to stocks to watch this morning, dominated by the big overall market moves. Autod mining, around the sector, around luxury, around anything that has been responsive to the coronavirus so far. Lets flag up a few interesting stories. Annmarie hordern is looking at hermes. Dental ering dannone. Hermanus had doubledigit growth hermes had doubledigit growth again. Usually we have a lot of good growth in the Leather Goods division. That could reduce hermes dependence on those 900,000 other broken bags everyone talks about. The question is whether be can keep the momentum. The big question is going to be what happens next quarter cup question what happens next quarter. They get 40 of their revenue from asia. Matt obviously a dominating theme in this market. Phil, what is the theme with danone . Phil danones 2019 earnings were in line with estimates, but everyone is looking at the impact of the coronavirus. The company lost 100 Million Euros in sales in the first quarter, mostly in their China Business selling bottled water. That is a direct impact for them. They have cut their Sales Forecast for the year. They are now saying 2 to 4 growth. One more number, they are saying the profit margin is going to be above 15 . Previously they were about 16 , so there is a real impact. China is only about 10 of danones revenue, but it is one of the fastestgrowing markets they have and one they have been investing in a lot. They were planning to relaunch one of their water brands in china in march, and now it is up in the air whether the be able to do that. That calls into question the summer season, a big time for water sales. It looks like the impact will be going for a while for danone. The stock has already hit, down about 9 this year, so it is reflected in the market already a bit. Anna and out of rio tinto, so far we have covered a lot of stocks that have coronavirus in the backstory. In the mining business, that is also the case. They warned about the impact of the coronavirus in the first quarter. They flagged the possibility that a recovery in the Second Quarter could be more intense in commodities, so thats something to talk about later. They set up some climate targets. Unlike other companies, they are focusing on their own emissions, and they are not looking at the emissions of their customers. Matt emma ross thomas, along with phil and annemarie, thanks for joining us. You can get all our stories by typing first go on the bloomberg terminal. Warns up, the cdc americans to prepare for a potential coronavirus outbreak at home, as mounting cases around the globe continue to spark concern that this will turn into a pandemic. This is bloomberg. Anna welcome back. The European Equity markets look like they have some catch up to do with the u. S. Yesterday we saw continued declines through the u. S. Session, and we have to price that into the start of our session. Fouryour revenues have met analyst estimates. Profit came over just 820 million pounds. The u. K. Homebuilders says it has seen a good level of demand in 2020 and a clearer political outlook. Joining us is the ceo of taylor wimpey. Let me ask you about the way the new year has started, starting well, and that increased visibility on the political front in the u. K. Can you give us any metrics . What kind of rebound are you seeing post december . The first thing is hard to put a number on, which is the confidence in the market. Housing is very much a confidence business where our customers feel good about life in the room jobs and tend to buy houses. That has changed over the course of the last two months. Sl rates remain high. As year was 20 ahead of the year before. To keep it at that level, we are very pleased with. Pricee seen an average increase of about 1. 5 after a year where prices were basically flat in 2019. You put those together, and thats a pretty good feel. The big picture around demand and your sales is driven by asian customers coming to the u. K. To buy a house, but given the focus on coronavirus at the moment, have you had any asia sales events or projects that have been disrupted or had to be canceled because of coronavirus . We havent, but to be fair, we would not have had any sales events in that period. We have a Central London business, but it is very small, not a regular thing, and we would not have expected to have it this year. In terms of the london market, you mentioned it is smaller. Do you see prices falling in london, maybe there is possibility of bottoming out . Are you going to be investing in more land in london . Pete london is interesting at the moment. The price increase for the u. K. As a whole has been true in london as well. There is perhaps more upside in london. I also think it is the only part of the country where maybe we have to wait until we see the Brexit Process through. Elsewhere, people are getting on with their lives and not talking about brexit at all. In london, it still creates a bit of an overhang. While london is still more confident than it was, i still think there is a journey to go. Anna in terms of the fallout from the Brexit Process, do you see labor shortages having an impact . What is the story around labor at the moment . Pete we felt since the referendum that the shortterm impact on labor ability and therefore forecast is likely to be muted and minimum, and thats what weve seen. People in our industry tend to came here from europe in the first decade of the century and actually have tended to stay. They are still working in the industry. Perhaps new people have come, but that is not a particularly material affect. It is up for us to take our own selfhelp. We doubled the number of practices in the building last year. We are employing more tradespeople. Enforce. Ram is well actually we feel confident about the way we can both individually and the Company Respond to that. Anna are you looking for anything in particular from the budget . Number ofity on a regulatory items in our industry. Clarity on stamp duty questions. I dont think we are looking for anything that suddenly gives our industry a boost. We just want to make sure the regulatory agenda and financial and fiscal agenda move on until our buyers know the environment in which they are buying a home. Anna and the revised help to buy plan, is that having an impact on the way you are doing business already . Pete it is. We have known for some time what the plan would be. And we are planning for that. It is affecting the way we buy land over last two years. It affects sort of how we plan we have views on how we can help customers who are currently using helptobuy. So yes, it does. Clearly it is a risk, but it is a risk we can mitigate well. Anna thanks, pete redfern, the ceo of taylor wimpey. Of budget coming on the 11th march. A big focus for that sector and many others. Lets look at whats going on in the markets in the European Equity session. Futures suggested to be weaker at the start of the trading day. U. S. Equities, certainly the s p down by more than 3 in yesterdays session. To our colleague mark cudmore, the different regions of the world are looking at this differently. In china, are we reaching some kind of turning point . Is that what we get from the statements of the likes of rio tinto this morning . Is there a different story in china from the rest of the world . Coming up, rio tinto warns around the coronavirus outbreak. Matt welcome back to bloomberg markets. We are 30 minutes away from the start of cash equity trading. Im here at the superreturn private equity conference in berlin, alongside anna edwards at our European Headquarters in london. Anna the spread of the coronavirus across the middle east, europe, and asia is fueling concerns that are widening into a Global Pandemic. In italy, sessions surged to more than 320. The country is starting to count the costs in the areas of its as the areas of its northern regions remain in a virtual lockdown. Hong kong has unveiled a stimulus plan that includes a payout of 10,000 hong kong dollars to permanent residents over the age of 18. Joining us is selina wang. What are the latest numbers on the ground in china . That is a different story to the global picture, isnt it . Right. Thats if you look at the national statistics, they point to continued stabilization. Hubei province recorded 401 additional cases, while the rest of china recorded five new cases. The statistics also included nearly 30,000 patients have recovered since the outbreak began. You are also seeing cities in china start to put travel restrictions on travel outside the country. For instance, the coastal city of way hi is reporting people coming from japan and south korea to undergo a 14 day quarantine. That signals momentum may be shifting outside of china. For instance, south korea becoming a hotspot for the virus. Infections surged to more than 1000 cases after just 51 a year ago, and a brazilian patient tasted relevant early positive for the virus, the first case in latin america. And in italy, there have been more than 300 cases and 10 deaths. Matt selina, thanks for joining us, talking about the damage to chinas economy and the human toll the virus has taken thus far. Joining us from zurich is the bank, zurcher caps on a the leading Fin