Ahead of the Conference Call to the g7, leaders, a lot of focus will be on whether they will step in with coordinated action or words to assuage the markets. Ahead of that, markets are rising. The stock europe 600, 4 and the that saw a lot of losses because of the epicenter in europe still in italy, up today. The dax up. S p futures, gains across the board. A caveat. Yesterday, we saw similar gains and they peter off as the day went on. Today, there is expectation from g7 and that the fed will possibly step in. Lets get to the bloomberg first word news in new york city with Viviana Hurtado. With an update on the coronavirus. Governments around the world preparing for emergency measures to fight the outbreak. Drugmakers hope to have antiviral treatments ready within the month and vaccines by next year. Of cases number worldwide, topping 90,000 but reports suggest over half those people have now recovered or have been released from the hospital. Central bank, it has cut rates and signals it is open to further easing as policymakers try to cushion the blow from chinas slowdown in the coronavirus. Rate by ae cash quarter percentage point to 0. 5 , a new record low. It says the virus is having a significant effect on the australian economy. Now to opec, the cartel going ahead with as much a muchanticipated meeting this week despite mounting concerns about travel because of the coronavirus outbreak. Ministers from the group and its allies will gather in vienna to discuss if additional production cuts are needed. Last week, crude prices experienced the biggest slump since the financial crisis. Israel, where Benjamin Netanyahu appears within striking distance of forming the next government after a yearlong political crisis and three elections in less than a year. Netanyahushow party and his allies are ahead of the former military chief. Ahead of super tuesday in the united states, joe biden has gotten a boost from some former rivals including Pete Buttigieg, amy klobuchar, and beto orourke. After his big win in South Carolina on saturday. Today, 14 states and one u. S. Territory are up for grabs. That amounts to one third of all the delegates in the democratic primary. 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. m Viviana Hurtado this is bloomberg. Francine calling the g7 hotline. Leaders will hold a call at new london time to discuss the response to the norovirus. Steve mnuchin will take the lead, Christine Lagarde says the ecb stands ready. Global equity markets. Joining us for the hour is the Global Equities fund manager at Jupiter Asset management and from the market live team, laura cooper. He will be a hectic conversation in the next 60 minutes. Laura, the rba today was the First Central Bank to cut because of the virus. Given the g7s meeting, the markets are saying they are going to do something. Is the bar of disappointment high . Laura exceptionally so. When you look at how stocks rebounded yesterday on the mere news we are going to see a coordinated policy response today, i think that points to a high bar in terms of Market Expectations actually being reached today. Some see some words, commitment come out of the statement today, i would expect that would provide some shortterm bounce, but ultimately, i dont think it will be a solution at this stage. Francine it has been a pretty insane couple of weeks. We havent really seen this since the financial crisis. What can the g7 leaders do . I agree, the disappointment may well be of a certain size, but at the end of the day, if we can see some concerted action to come, to reassure markets, it will be helpful. We know that the unknown about the spread and damage to the Global Economy is the main question. Whatever they announce, whatever can come and support markets, it is just not going to be the answer. Francine what are the markets expecting . Some words like mario draghi back in the day said in london, ill do whatever it takes but are they expecting something concrete today . Laura when we look at Market Pricing for today, they are expecting some action today. We have almost 50 basis points of cuts priced in for the fed next week. We have a full basis point cut cut for the ecb next week priced in. I wouldntd expect banks to come out today and do that kind of bazooka stimulus, but markets are prepared for that. Francine when you look at the markets the last couple of weeks, how much do you change your positions . Guy you have to look through it. At the end of the day, Central Bank Governments can bring of flow ofin terms credit. Companies continue to function, markets can continue to function. All we need to focus on is when the vaccine will come and how long this issue is going to last for, and thats where, if you are relatively positive about how long it will take, lets say make, april, when the peak in infection will probably come and weve got a vaccine and perhaps a cure, then you look through that and you start to buy. Francine you are waiting, or have you started buying . Last few days, we have been picking up a few names in specific sectors we like, but at the end of the day, the unknown is large here. It is quite big and you have to just look through it and be confident. It is about your risk profile. Francine it is also about what markets are pricing in. Are they pricing in a recession already or not . Laura i certainly think when we look at where bond yields are, the u. S. 10 year and 30 year at record lows, it is pricing in such a degree of caution. The bounce yesterday in spots point stocks points to the emergence. The tightening in financial conditions and Inflation Expectations have plunged in recent days on the back of this equity selloff, certainly that does beg for some action from the Central Banks, but i dont think it will be nearly to the degree that markets are expecting because we havent yet seen the imminent signs of the downturn at this stage. They want to keep some powder dry for when we see recessionary risks intensify. Francine thank you both. Laura cooper from mliv and guy de blonay from Jupiter Asset management. Europes airlines begin paring back their schedules as passengers delay or cancel their flights. We will focus on the travel sector and the challenge from coronavirus. Plus, america wakes up super tuesday. We will bring you the race for the white house later this hour. This is bloomberg. Francine economics, finance, politics. This is bloomberg surveillance. Im Francine Lacqua in london. Lets get to the Bloomberg Business flash with Viviana Hurtado. Said to bermotti is nominated as the chairman of swiss reading a year. At the 2021 shareholder meeting. Last month, ubs named hammers to take over for ai the sergio ermotti. To settle u. S. Criminal charges. The alledge it conspired with other pharmaceutical companies to fix the prices of generic drugs. The settlement, marking the largest penalty in a domestic cartel case. Reacher has agreed to gender balance across its Global Management team a year ahead of target. Half of the anglo dutch companys support team thousand managers are female, of from 38 in 2010. That includes 50 in the finance department, an area where women have historically been underrepresented. Thats your Bloomberg Business flash. Francine they do so much, Viviana Hurtado. Ryanair is cutting a number of shorthaul flights may to and from italy. It says it has seen a drop in bookings over the late march and early april period. It is the latest airline to warn over the effects. By agee says it can no longer give a forecast for the year. Lufthansa will cut up to 25 of shorthaul flights in the coming weeks. Lets get more with guy johnson in london at an air conference. Is this something the industry will be able to handle . Guy absolutely. That is the impression being given here. Financial crisis when airline Balance Sheets were really stressed, many of these airlines have put their Balance Sheets in better order. I caught up with the guy who runs easyjet. He says this is something the industry is prepared for, understands the mechanisms it has to go through to deal with it. It is a challenge. Clearly, we dont at this point have any other way of dealing with the coronavirus than simply imposing quarantines. China has done it and we are seeing it in europe. We see consumers deciding they dont want to travel, businesses dont want to travel, so the taking placeports at the moment, the lack of people traveling at the moment is ultimately going to hit these airlines. There is an expectation that once things settle down, that these bookings will pick up again, but that remains to be seen. It is a one quarter phenomenon. It could be a two or three quarter phenomenon. I asked mr. Lundgren about this and he said we are in a position where it is far too early to start making expectation calls about what the full year is going to look like, but the industry feels it has got it. There are weaker airlines in europe that will potentially struggle and that was something mr. Lundgren pointed out to me but the big five carriers, iag, lufthansa, easyjet have the Balance Sheets. The market has marked these stocks down aggressively. It will be fascinating to see how strongly they bounce back. Some of them are bouncing back quite strongly today. Francine guy johnson in brussels. Dont miss exclusive interviews ash the chief executives flight demand is hit. Catch that here on bloomberg tv. Lets go back to guy de blonay, Jupiter Asset management. When you look at the airlines, do you have any of holding in airlines you are cutting off . What is priced in the markets right now . Guy what is priced in . Well, after the move yesterday, what is priced in is an intervention from Central Banks. Cuts, we saw rate australia cutting rates. I think we are looking for the fed to cut rates by 50 pips by the end of march. Inhink we are also pricing some government announcement on fiscal measures or stimulus. That probably will take a bit longer, so i think we are certainly markets are certainly getting some relief on the basis that the g7 and perhaps governments around the globe, Central Banks are trying to get together and find a solution to keep markets functioning until this virus es and hopefully disappear soon. Francine are you worry about how the market reacted . We are trying to figure out if there was complacency before the selloff last week when it hit europe or if there was an overreaction. Guy it certainly was a liquidity driven rally. Markets were at alltime highs some froth in the market had to be taken out. That virus issue has certainly helped markets to regain or rebase on some earnings expectations that have been revised down for the remainder of the year. Lets look through it and if we a concerted effort from governments and Central Banks to stimulate the economy, it could certainly have a rebound in Economic Growth in the second half of this year. Francine does anything short of giving 100 pounds into the pocket of consumer going to help with coronavirus fears . Guy we said earlier in the program, we need a vaccine. We need a cure and that is what we need. We dont really need Interest Rates to go negative around the world. Thats not going to be enough. It is going to be enough to keep a level of confidence and markets to function, to Keep Companies afloat, credit slowing, but what we need really is a chair. Cure. Francine guy de blonay, from Jupiter Asset management stays with us. The future of nissan. We will bring you an exclusive into the companys chief executive. This is bloomberg. Francine this is bloomberg surveillance. Im Francine Lacqua in london. Nissan is ready to make deeper cuts if the business deteriorates, according to makoto uchida. Since first interview taking the helm of the struggling automaker, he promised to unveil a plan in may. When i look at the individual nissans ability, it is more than what i know today. Very good companies, direction, it should be the result is better than what we are showing in terms of our performance. Whatart from costcutting, sort of investment needs to be made in the business . Our humanfinitely, asset. That is what we have to seek for. And when we talk about the new era of business and what competency has to be enhanced, that will be the area to invest. The shift in the automotive business is happening rapidly. Electrification, self driving automobiles. Technology. Where is nissan going to be in that space . Like to enhance our electrified vehicle come our core of technology and an area we can demonstrate value for the customer. A Mobility Service would be the area we need to have some partnership in the future, which we need to further discuss with a lot of stakeholders to find out the direction. Consider a meeting that has happened with nissan over the last 18 months, it is not an easy challenge for any executive. Youve just come on at the end of 2019. And you tell us a little bit about how you view the challenge and whether it has changed your view on whether success is reachable or not . I mean, it is probably going to be absolutely necessary, but was there anything that surprised you about the scale of the challenges facing you and the company right now . First time tos my be ceo, so it has challenges that were in expected, but day would like to further discuss with our employees to understand how they are feeling about the company, what has been the way they wanted to be. It is important for me to know transparently what is going on from the executives down to the employees. After having those to be united or something to be together, then i believe the power will come from there. Once we have better strength, that will be external. Francine that was the new chief executive of nissan, makoto uchida, speaking to bloombergs Reed Stevenson exclusively. Lets get more thoughts with guy de blonay. Industry like banks, media, that will be disrupted. How do you deal with these disrupted industries . Where do you find value . Guy we obviously do two things here. We continue to look at traditional Financial Institutions and how they cope with disruptive innovation, and how they invest, and how they protect themselves, and where they see themselves in five to 10 years time by investing about 10 of their revenues into it legacy and also innovation. On the other side, we invest in companies that are bringing solutions to Financial Institutions, such as payment solutions, analytics, and cybersecurity. It is all about building this ecosystem that once you have a client, its retention rate goes that0 because the journey the client is having within the ecosystem of the Financial Institution is the best it could get. Francine the payment is a hot industry. Everyone is trying to get a piece of that. Do you worry about overpaying for capital pacific specific . Guy the migration from cash economy to a cashless economy is inevitable. It is not only about providing a network and enabling a card payment rather than cash payment. It is about addon services. Obviously, you have the big Networks Providing the bulk, but you also need for ecommerce purposes, the right Payments Solutions in addition to the mastercard that visas helping there is deficiency. Francine guy de blonay from Jupiter Asset management stays with us. Coming up, is a super tuesday. An idea have more of which democrat will be facing donald trump in november as the race narrows. More on that next. This is bloomberg. Francine coronavirus hotline g7 leaders will hold the rare Conference Call to discuss the response to the outbreak. Will finance chiefs do whatever it takes . Cuts President Trump calls for more easing from the fed as the rba slashes rates to a record low to contain the virus fallout. And it is super tuesday. Joe biden picks up endorsements ahead of todays crucial vote in the democratic contest. Well, good morning, good afternoon, good evening, everyone. Im Francine Lacqua in london. Lets check in on your european stock movies with Annmarie Hordern. Annmarie a lot of movers to the upside, all in the green. 19 , the nearly biggest mover on the stoxx 600. Fordutch Company Testing coronavirus. Up nearly 8 ,a, much reprieve near did for the airlines today. Down for eight consecutive sessions over the past week and a half, finally moving higher with investors buying in some of that dip. And then finally, we have caixabank, up 6 . We are seeing this among the spanish lenders. The e. U. Court of justice, a court ruling on whether or not customers who were sold mortgages that were tied to the central bank what the court said, they were handled casebycase. A pretty positive ruling. Many were expecting it to be much harsher. Wasa bank was kasha bank francine Annmarie Hordern with main stock movers. We are getting breaking news south africa. South africa, the Fourth Quarter gdp saw an annualized 1. 4 instead of the 0. 2 percent we were expecting. That means the economy is slumping into a second recession in two years,