says the epidemic constitutes a serious and imminent public health threat. 15,000 jobs are on the line as daimler as the luxury car company looks to cut cost in a deal that could cut 4 euros. annegret kramp-karrenbauer will not run after her party failed to gain the support of the conservative party. here in dublin, ireland's leader tauts a ballot box revolution in the country's election well, a very warm welcome to "street signs. let's kick off the show with an update on coronavirus. china's national health commission has confirmed that 97 people have died in the worst day for coronavirus-related deaths to date it brings the global death toll to over 900, topping the 2003 sars outbreak which killed a total of 774 people across the world. a u.s. citizen and japanese national have also come the first foreign nationals to have died from the virus. meanwhile, china's factories are struggling to reopen today as at least 24 provinces and cities are scheduled to return to work after the emergency extended lunar new year shut down fox com, china's larger employer and key apple contributor has been given the green light to reopen in goaunzhou. other corporates are returning to normal operation including automakers bye, daimler, ford and zte. china's ambassador to the uk told the bbc that the economic impact would be short term. >> at this moment it would be difficult to predict when we'll have an inflection point we certainly hope it will come sooner but the isolation quarantine measure has been very effective. so far the most cases are concentrated in hubei and wuhan. hubei is about the size of england plus cotland and the population is about england plus wales this impact on the economy, but i think the impact is temporary and short term and the government now work very hard to encourage people to restore production >> meanwhile, the chinese government has pledged $10 million to fight the coronavirus. the country's finance ministry announced it will deploy funds to ensure that all members of the public have affordable access to diagnosis and treatment. it explained it wanted to ensure regional measures to contain the outbreak were not hampered by financial constraints. china's central bank has also taken steps to support the economy, injecting liquidity and interest rates we have heard of this $10 billion stimulus and the pboc last week did that big stimulus last week and we hear today some companies going back to work how has the reaction been more broadly speaking by asian markets this morning >> the chinese markets saw a very nice day as we kick off a new trading week here. the chinese markets extending on five sessions of gains already on the easing curbs as well as policy hopes chinese government talking about infrastructure helping the shenzhen ended 2% higher hong kong up 2,890 for the hong kong markets we saw profit taking, 274,134 businesses started returning back to factories and offices after the lunar new year break was pushed out by ten days in a bid to control the coronavirus outbreak the epidemic has killed more than 900 people and the total number of confirmed cases in excess of 40,000 a large number of workplaces, though, still remain closed and many are working from home the state council says workers in key industries must be helped to return to work as soon as possible in order to resume the production ofvital food and medical supplies and adding workers should return in batches and not all at once in order to help control any spread of the coronavirus and infection risk extended closures of factories have raised concern about the global supply change at the world's largest manufacturer of electronics reportedly receiving government approval to resume production at one of its plants today. the company says it will follow rules of every local government when setting a schedule for reopening lans in ginxao is back, representing 10% of their staff operations could be affecting the supply chain they have clients like google, amazon, apple just to name a few. they say workers' safety is the top priority and working with authorities in order to resume production across china in a staggered manner hubei remains in virtual lockdown, roads sealed off, many schools still shut until end of the month. we do know some experts from the world health organization arrived in beijing today to help assess the outbreak there. that is the latest from hong kong back to you. >> certainly appears to be some signs of normalization, but it may be early days. thank you for the breakdown much how chinese markets are reacting overnight. >> let's bring it back to the studio chief investment officer of morgan stanley investment management joins us with more. so, estimates obviously swirling all around the market in terms of the economic impact of what's happening in china s&p ratings has come out downgrading their full year 2020 forecast to 5% growth in china but they say all that lost ground is going to be made up in 2021 how does that tally with your view >> i think it's very sensible way of thinking about things right now it looks like a containable event. it looks like the pecases are peaking. we don't know how much it will spread through the world will they spread or is it contained? if it's contained and we see china coming back to work in a sensible, safe manner, i think we are probably nearing the worst in terms of expectations and that the shutdown will be quite impactful this quarter but we should see a v-shape comeback in coming months which means we'll be back to work and things will be fairly normal. the things that won't come back to work are services people won't go on vacation, they won't go back to school for a while. some spending will be lost forever but it should be fairly small and contained and not disrupt the nice trajectory we were on and the upbeat we were having a few months ago. >> fairly bullish if you're able to look past the next quarter or so how are you investing around it? >> what's going on in the world today is not -- this is another example of things going on in the world of disruption and this is going on everywhere in industry, monetary policy, fiscal policy, technological change this is disruption going on, which leads to dispersion in economic outcomes, financial market outcomes. we have different sectors doing very well. so far, the most impactful sector has been oil, commodities. s&p 500 is going back up again within the s&p 500, very different performance of different companies. i think that is the story we have, is that it is -- should be fairly contained we should have a recovery coming back on track but it will impact different countries, different sectors in meaningful ways we have to navigate through those changes in order to understand where the best places are to invest. >> it's not so easy to pick up on the timing. you are a fixed income guy we have analysts come on the show all the time bemoaning fixed income markets very rich, even versus traditional metrics of valuing fixed income. yet what we've seen in the last couple of months is fixed income has been a very effective instrument at hedging geopolitical risks, hedging growth risks, more recently against coronavirus. do you see that continuing >> i think so. i think in most countries, even in europe we have negative interest rates there is still the possibility they could be more negative in the short term or other methods central banks could use in controlling interest rates to further out the yield curve or more quantitative easing along the way. there clearly is confidence in central banks' ability to provide additional support to financial markets and economies to offset a lot of negative developments within reason obviously, they can't offset all developments if factories are shut, they're shut doesn't matter if you lend more money if no one is producing anything that should be temporary we're worried about investor confidence, consumer confidence and willingness to spend money down the road and central banks are providing a big boost in confidence about their willingness to provide that support. >> okay. if that is the case, we just had ecb come up with their big stimulus back in september the fed are signaling they're done for the time being. why has u.s. fixed income outperformed europe fixed income >> the market decided the fed may actually cut interest rates on the back of this unexpected weakening in global economic conditions the market is pricing in one to two rate cuts in current pricing so it's not surprising that all u.s. yields have come down because there is room for th fed to cut interest rates. most importantly, it's because they were cutting rates last year we are on an easing trajectory the fed has basically said they're not interested in raising rates at any time soon they're more likely to cut rates than raise rates it's another reason for them to error on the side of too easy rather than too much even if the fed doesn't cut interest rates, if the market takes that out and yields dp back up, it's only because things are getting better. >> it's a valid point. just a final question on the fiscal side of things. the president -- president trump is proceposing a new budget for 2021 that would entail deficits of 5% worth of gdp none of that is being factored into the treasury market why is that the case why do investors continue to slug offer the position? >> the bigger factor is the globalization of interest rates. the u.s. interest rates are not just set in the u.s. on u.s. fiscal policy. it's set around the world. u.s. treasuries are the safehaven. it's the method to best hedge other risks, political, economic, so there's a flight to safety and treasuries provide that safety. they move independently of u.s. domestic fundamentals to a degree you can get fundamentals deteriorating so rapidly that no one wants that asset anymore i think we're far away from that primarily because there's no alternative to u.s. treasuries. >> very fair point, for the time being at least michael, thank you for joining us on "street signs. chief investment officer of global fixed income at morgan stanley investment management. stay with us on "street signs" because we are going to talk about deeper cuts for daimler. find out why the luxury carmaker is reportedly putting more jobs on the line. we'll be right back. robinhood believes now is the time to do money. without the commission fees. so, you can start investing today wherever you are - even hanging with your dog. so, what are you waiting for? download now and get your first stock on us. robinhood. when it comes to your business internet, which is more important? ♪ ♪ okay, i wish i didn't have to choose. like the more i think about it, the more i want to jump to each room. what if i said you can have it all? ♪ ♪ comcast business gives you connectivity that goes beyond. that's what we want! that's speed, reliability, and security, all from one provider. touchdown! get started with internet and voice for an amazing price. call today. comcast business. beyond fast. welcome back to "street signs. let's give you a rundown of what's been going on in markets over the weekend on friday, the highlight of the u.s. session was nonfarm roll coming in much higher, 225,000 jobs created obviously, as ever, the nitty gritty was in the details. as some people were disheartened by the fact that the wages came in slightly lower than expectation. all of that boded not so well for the end of the wall street session on friday. the three majors ended in negative territory after four positive consecutive days. still, a very good week for the majority overnight we've been focused on coronavirus and the chinese responses. they announced a $10 billion stimulus package that helped lift chinese equities, in addition to the pboc liquidity stimulus announced last week some companies are moving to go back to work and some are talking about the knock-on effect a mixed bag coming out of china. overall we have seen chinese markets overnight performing well with some green on the boards and markets outside china trading in negative territory. so, it has been what of a mixed handover you can see the stoxx 600 is down about 0.25 in early trading. ftse 100 down quarter of a percentage point not much to watch out for in terms of data but we get the gdp numbers for uk we have the xetra dax in germany, watch out for the political situation and it emerged this morning multiple sources are citing akk will not be running for chancellorship that's something to watch out for. obviously, big questions about the coalition's future we'll talk about that on the show a bit of green for the periphery indexes. we have banks, construction material at the top. no surprise there because of their linkages to the chinese equity markets at the bottom, travel and leisure getting hit by the knock-on effect of the coronavirus. and tech struggling slightly in europe as well. >> thank you for the market update let's give you more color on daimler, who is reportedly set to cut as many as 15,000 jobs as the german carmaker ramps up cost measures according to german newspaper >> credit suisse shares are up after the bombshell ceo who is set to deliver his company's quarterly and full-year earnings this morning he was ousted after an investigation and a second investigation is under way let's bring in senior credit analyst from hermes. unexpected announcement out of credit suisse friday it seems to me that it's a situation of one incident last summer could be perceived as an isolated incident when the second spying scandal came up, the board essentially said enough is enough this is causing too much reputational damage. we need to see a changeover in management here. >> i think so. once regulators are involved over the weekend and the regularity wasn't happy with credit suisse, i think that was the straw that broke the camel's back of course, i mean, he was paid for nonfinancials at credit suisse but if you look at the strategy for the last five years, it seems to be working. it was for a successful ceo you need someone with other skills. >> let's talk about the timing of this announcement looking through research from citi, they said recent investment marketing in swiss, but the timing of the announcement came as a surprise to anything. do you think it has anything to do with upcoming earnings due later this week? >> to some extent it seems logical that they go out on nonresult number i think it's also the end of the cycle. i think it just marks the end of the cycle. they are involved with management it needs to be pristine. i think that is one of the reasons they decided to go for change of leadership. >> we talk about the reputational impact it's going to have on the bank but i wonder if it's actually having much of a reputational impact. if you look at the stock price performance this summer, the stock is up 5% the stock hasn't really got hit. it hasn't been a negative performer. and second, if you talk to them about net new money that has come in, that hasn't been derailed at all. is it perhaps a situation where the outside world is more concerned about the actual reputational impacts than what investors are doing with their money? >> yeah, i think it's a combo of both of those two factors. you're correct to say the stock is up by 5% but also really depends on the -- it is also -- reputational damage on the franchise is very -- it takes some time to filter through. as you correctly say, the 19 months it shows where they try to recycle some capital away from the investment bank reputational damage always takes -- it's a laggard and could take -- i guess the bank doesn't want to take any chance with that. >> in many respects, the heavy lifting for what needs to be done in the bank has already been done. people are asking about whether or not we could see a different strategy out of mr. gotstein but what mr. thiam, refocus on wealth management, we spoke to him a year ago and he said the restructuring is done. now our focus is on growth with the existing client base we have are you expecting a new strategy >> to some extent the directional travel is set and i think the main challenge will be the growth trajectory in asia and wealth management. if you look on price to multiple it will be up to him and his team to -- it's been quite good at swiss unit but still nonquantity to majority of investors. so, we see -- we hear from gottstein in the first half and we'll see where his priority lies. >> in the run-up to friday's announcement, a report suggested shareholders were putting their weight behind tidjane thiam and were calling for the resignation of the chairman. clearly the chairman won in that battle is the pressure off him or is there a chance we see him removed from his seat? >> i don't know. credit suisse announced it's going to go by thiam by 2021 we'll see what goes. they imply but i may be speculating that a succession plan is in place we'll hear more of that on thursday. >> thank you very much for weighing in. we look forward to those numbers out on thursday. in other news, several senior conservative lawmakers have raised concerns in huawei's development in the 5g making it could mark the first rebellions by mps against boris johnson. the uk government allowed the chinese company to build up noncritical parts of the country's 5g networks, this despite concerns from ministers and allies. beijing is urging france not to discriminate against huawei the chinese tech giant could face restriction in several french cities. the embassy said it was assured huawei would be tweeted just like other vendors. speaking on the bbc monday, china's ambassador to uk said huawei had become the target of a witch hunt simply for being a chinese company. >> i think there are -- what they're doing is kind of a witch hunt number one, huawei is a private-owned company, nothing to do with the chinese government the only problem they have is they are a chinese company and that's the problem i will leave prime minister to deal with president trump. i think -- i always say, uk britain can only be great. one, it has its own independent foreign policy >> stay with us. we'll take a break when we come back, we'll be live in dublin as sinn fein surges. welcome back to "street signs. i'm julianna tatelbaum. >> i'm joumanna bercetche. these are your headlines china tries to go back to work as a number of major factories reopen for business, but sunday marked the worst day in the coronavirus outbreak so far. with 97 more fatalities taking the death toll to over 900 people. europe follows asian equities broadly lower blout town by travel and leisure stocks as the uk says the epidemic constitutes a serious and imminent pun health threat. 15,000 jobs are on the line at daimler as the luxury car company reportedly looks set to cut more costs in a move that could save the group 1.4 euros by 2022. south korean film "parasite becomes the first foreign language film to win at the oscars while war epic "1917" is the other big winner we're now about 1 1/2 hours into the first trading session of the week. as you can see here with the sea of red beside me, european markets are traded on the back foot this morning. bear in mind, though, last week the euro stoxx 600 ended more than 3% higher perhaps a bit of profit-taking coming through this morning as we don't have a huge amount of new macro news for investors to digest instead, setting up for the week ahead. but that death toll does continue to tick higher so investors continuing to very closely watch those coronavirus developments. let's take a look at fx markets. we had interesting news on the political front this europe this morning. let's start with the euro trading a touch stronger than the dollar, just below the 1.10 market germany after hearing akk not going to run for c