Good morning and welcome to the show im dominic chu in for Brian Sullivan we begin with breaking news. U. S. Stock futures pointing to a sharply lower open as losses accelerate this morning. A flight to safety under way in bonds as well. Stocks moving to the downside. The tenyear yield dropping to its lowest level since july of 2016 in the wake of the brexit vote a rally in gold prices playing out. The metal surging to a near sevenyear high. You can see gold prices up 2 . 1685. 40 the last trade there a sharp move in crude prices as well for world benchmark tti or brent prices and tti as well wit this mornings selloff comes as investors continue to watch developments around the coronavirus outbreak and spread in places outside of china, like in south korea our own Frank Holland is here with the latest on those numbers. Good morning. Good morning to you thats right new numbers overnight on just how serious this crisis is becoming in south korea. There are now more than 230 new confirmed cases there, bringing that countrys total to more than 830 a sharp rise in cases in other countries around the world, especially in italy where the number of confirmed cases rose to more than 150 over the weekend from just 3 on thursday. Iran also confirming 43 cases from just 2 last week. The outbreak continuing to send economic ripple effects outside of china Flight Cancellations due to the virus have topped 200,000 as the bulk of Airline Service to the mainland and hong kong remain stopped completely in february alone, the number of flights that were scheduled to fly to, from and within china are down 80 from a year ago, sending benchmark fuel prices to more than twoyear lows. Dom, back over to you. Thank you for much more on the developments throughout the morning. Meantime, the spread of the virus prompting a market selloff around the world as well we have global Team Coverage, matt taylor live in singapore and Julianna Tatelbaum live in london matt, we begin with you and the massive move lower in the asian markets. Thanks very much for that riskoff picture across the asiapacific markets japan out for a Public Holiday as well. This moat mostably played out in the south korean market. Well show you that in more detail in a moment we were down by 3. 8 broadbased gains across the larger markets, australia and new zealand down by 2 a number of companies coming out warning about the impact of the virus. New zealand shares down by 5 at the close of trade the china market, things were a little more contained. Shanghai composite down 0. 2 take a look at korea this is where all of the damage was. The techheavy kosdaq, down by 4. 3 the kospi also down. The country raised its alert level to the highest, code red and reported the additional cases frank was telling us about. We could see the bank of korea cut rates to a record low to offset the shortterm impact the bok will be moving on thursday president moon calling for more fiscal spending to fight the Coronavirus Impact as well south korea really seeing the significant selling pressure today. Kosdaq down by 4. 3 . In european trade, italian stocks are sinking 4 as that country deals with the continents worst outbreak Julianna Tatelbaum is live in london with the latest there what can you tell us about the situation in italy the losses are severe and widespread the dax is down more than 3. 4 thats the main benchmark in germany. The ftse leading the way lower, down 4. 3 . This comes as over the weekend italy became home to the largest outbreak of coronavirus outside of asia. The region, northern italy accounts for 30 italys gdp its a crucial part of the italian economy. Weve seen a series of quarantines come into effect and measures to control the outbreak and investors now bracing for what this could mean not only for italy but for broader europe lets take a look at the sector as weve seen the brunt of the selloff borne by those most exposed to the outbreak. Travel and leisure down more than 5. 43 Airline Stocks bearing the brunt of the pressure in europe. Basic resources, auto, technology, oil and gas round out the worst performing sectors this morning investors fleeing to safety so the more defensive parts of the Market Holding up better the best performing sector in europe, telecoms is down more than 2 . Widespread selloff taking place in europe as investors brace for what may come next in terms of the coronavirus outbreak. Julianna tatelbaum live in london with the latest on the european trade thank you very much. Sticking with the european situation, and tapping italy, the number of confirmed cases there rising to more than 150 over the weekend from 3 on thursday more than 100 cases from just one region around milan in northern italy at least three there are dead. Joining on the cnbc news line cnbcs claudy pensotti we kind of got the lay of the land how severely are the government treating the coronavirus situation in that country . Dom, theyre taking it very seriously. Right now there is this lockdown of this area you were mentioning its a tenkilometerarea southeast of milan the rest of the milan, lombardi region, right now there is no lockdown but strict measures have been put in place i want to start with the numbers because an update has just come out. The contagion is at 212 cases, so up from the 152 you mentioned. That was the number that was still going around this morning. There also has been one more death, so now the deaths are up to four, but it is important to note that these are all people that were elderly people or with preexisting conditions. So, what is concerning is not so much right now the number of infections, but it is sort of these measures that have been put into place that are, of course, causing the concern and the reaction that we see on the markets. The measures are, first of all, that schools have been closed, universities are closed, churches have been closed, the biggest cathedral in milan is closed, the biggest theater in milan, la scala suspended all events what the government is asking is to not meet in large groups. So, while schools are functioning both private and public, the recommendation is to stay home if you fear you may have been contaminated or if you have preexisting conditions or other issues that could somehow make it more difficult for you if you were to contract a virus. Right now what you see is more traffic because people arent taking Public Transportation but otherwise people are going about their business trying not to panic. We expect a meeting to go on between the Prime Minister and the civil prctionz we also have sporadic reports there are runs on local Grocery Stores despite the fact there is not panic in italy, it seems the citizenry are reacting in a way that says, hey, i need to prepare. Absolutely. There are no more masks in pharmacies, no more hand sanitizers you are seeing groceries, running out of goods ecommerce sites are having difficulty guaranteeing any delivery because of the because the worry if they do go into lockdown, there will be a problem getting supply less the virus, more what if the government puts into play measures that could really confine and put people in their homes for what they realize as whats going on in china, maybe not seven days but up to a month if not longer. The concern is what the impact could be on the longer run. Claudy with the latest on the developments in italy, thank you very much for that update. Stock futures continue to trade near this mornings low so far. Lets bring in art hogan, chief Market Strategist at National Securities art, youve seen all the headlines this morning weve heard from claudia weve heard from matt and julianna about everything thats happening. Is this now finally a situation where the markets could see a more severe pullback given the concerns on coronavirus . Its interesting. When we look at the market on the close on friday, it was at or about where the s p 500 was when this was announced. Almost exactly to the point. And i think the reason for that is we had this combination of theres significant fiscal policy being put into place by china and the response has been very rapid but in that entire time, our assumption was, okay, china is taking care of chinas problem and now this has become everybodys problem. We heard about one or two cases in italy thats 200 now the same thing is true in the ramp up in the number of cases in korea the market has taken notice, and i think thats what were seeing even with the percentage drop were seeing this morning in the s p 500, its stopping right at its moving average, which is incredible but just a logical market the other thing thats been logical about this market, its adversely affected those spaces, travel leisure, restaurants, gaming stocks much more than it has some of the companies that will have temporary economic losses. You said there could be some support as these markets hover around some moving averages, especially the s p is now the time you start buying dips lets be honest, its worked for the past six, seven years. Its worked for a long time i would say, know where your levels are 3258 is the exact number on the s p 500, thats oddly where we are. If that holds, i think this is a day where theyre telling you, this is the magnitude of how much theyre going is this a situation where you want to go deeper into the safe haven assets gold prices are extremely elevated right now yields are extremely low near record lows, by the way so, do you want to go into those at these levels . They are so stretched gold started breaking out in december the rsi on gold is higher than the utility etf. The safeties have gotten expensive, so id be careful if you want to raise cash than plow into gold through treasuries, utility utilities, the Consumer Staples, theyre very crowded, much more than weve seen in years, as a matter of fact. Art hogan, National Securities thank you very much. Its going to be one of those gray days to see what happens in the market when we come back on the show, much more on this mornings selloff with dow futures indicating a 736point implied drop at the opening bell plus, treasury secretary Steven Mnuchin on the coronavirus chinas response and its impact on the u. S. china trade deal later on in the show, getting ready for three hours live with the oracle of omaha. It will be great to get his thousands on whats happening right now. A very busy hour ahead when Worldwide Exchange returns do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back to the show stock futures right now pointing to some real sharp losses. You can see the three worst performing premarket stocks in the dow jones. American express down 5 visa down 4. 5 apple down 4 as well as fears of the spread of the coronavirus remain front and center. Well keep an eye on those ti particular stocks and others. Hadley sat down with u. S. Secretary treasurer steven mu chin hadley, is it concerning for the treasury secretary reporter no doubt about it, dom. This was concerning not only for the u. S. Treasury skts in our interview, it was concerning for all Central Bank Governors at the g20 over the weekend. It was a major point of concern for all of them. Major focus. When i asked the treasury secretary about that, he said its too soon to say we need two or three weeks to understand what the Economic Impact is going to be, just on the United States. To give you a bit of perspective, a week ago when i sat down with the managing director of the imf it was too soon to make any moves over the last hour the imt said were taking off ten basis points, half a point for chinese growth this gives you a sense of how quickly the story is moving. Listen in to what the treasury secretary had to say about what this could mean for phase two of the trade deal. Theres no question chinas major focus is now controlling the virus and the approach of phase two will definitely slow down a little bit. Reporter slowing down a little bit is all we could get from him on steps in terms of the trade deal, what the u. S. Government is. Anding from the chinese. A lot of mixed messages from various members of the u. S. Government pompeo, esper speaking to me last weekend in munich saying the biggest change on the horizon is china and secretamnu taking a step back saying were pre pleased with what weve been able to do in china, echoing president trump. This is a gathering of finance ministers. What exactly is the sense, is there a feeling like the Global Economy can withstand this, can it be something we bounce back reporter i think they were all trying to be as cautious as possible thats not surprising. Yet dwe heard comments from the finance minister of france basically saying 30 to 40 knockon in tourism is expected from coronavirus asking the finance minister about oil prices, this was prior to tanking 2 , i said, how concerned are you about your bottom line, how concerned about what well see next here he said, when we talk about taking more barrels off the market, thats about market i asked is the oil minister going to get vindication remember at that technical meeting he was encouraging not just opec members but russia to come to the table with with more cuts he was cautious there. I think theres a lot of cautious sentiment coming out of this g20 meeting but a heck of a lot of concern. Thank you very much. Still on deck for the show, a 7 billion deal reportedly in the works over at credit karma plus, more red flags at boeing over its grounded 737 max fleet. Liking the now platform . Every time it takes care of something for us, we celebrate. How often does that. Got it. Servicenow the smarter way to workflow. Every year, our analysts visit thousands of companies, in a multitude of countries, where we get to know the people that drive a companys growth and gain new perspectives. Thats why we go beyond the numbers. T. Rowe price. Invest with confidence. Thats why we go beyond the numbers. Because its tailored to you . Take the personal assessment and get matched with a proven weight loss plan. Find out which customized plan can make losing weight easier for you myww join today with the ww triple play you can see some of the biggest premarket losses for the nasdaq including western digital, currently down 7. 5 micron down about 6. 5 the same thingfor advanced micro as well. You can see these companies, especially semiconductors to be down at the opening bell. Intuit is reportedly in a deal to buy credit karma for 7 billion. This would be their biggest acquisition in their 37yearhistory. The deal would come less than a week after Morgan Stanley agreed to buy etrade financial. Barclays is starting a search for a new ceo to replace jeff staley. The Financial Times reports the shakeup comes as the financial regulators are probing alleged links between staley and disgraced financier jeffrey epstein. Staley, who has been ceo of barclays since 2015 told colleagues he plans to leave by the end of 2021 and could step down at the banks annual meeting next may. Boeing confirms debris has been found in fuel tanks of 35 of the 50 grounded 737 max jets they inspected they are among 400 planes boeing built in the past year they could not deliver to customers boeing temporarily halted productions of the 737 max last month. And Warren Buffett is defending Berkshire Hathaways decision to invest heavily in stocks such as apple as the companys more than fouryear acquisition drought continues in his annual letter to shareholders, buffette says the opportunity to make major acquisition are rare buffett reassuring investors they shouldnt worry about the future of berkshire when he and monger are no longer around. Tune in for a special threehour discussion with Warren Buffett from omaha, nebraska on squawk box. Eunice yoon is outside the world health care. Lddexcng ibas ck right after this no one likes to feel stuck, boxed in, or held back. Especially by Something Like your cloud. Its a problem. But the ibm cloud is different. Its the most open and secure public cloud for business. It can manage all your apps and data from anywhere. So it can help take on anything, from rebooking flights, on the fly to restocking shelves on demand. Without getting in your way. As you can see, the dow jones is slated to open down 741 points the s p down about 83 points the nasdaq down by 281 keep it right here well have all the news you need to get you up to speed for this massive move over in markets. Breaking news. A global selloff is under way as investors track a surge in the number of coronavirus cases outside of china the latest on this worldwide outbreak and the moves you need to make with your money amid this turmoil as the second half of Worldwide Exchange begins right now. Welcome back to the show im dominic chu in for Brian Sullivan breaking news. Futures extending their losses halfway through the 5 00 a. M. Eastern hour as you can see, the dow jones opened down by 750 points. The s p off by 84. And the nasdaq down by a whopping 284 points as well. These losses right now currently right near the lows of the session. Now, a flight to safety is under way in bonds as well the tenyear u. S. Treasury note dropping to its low level since 2017 benchmark yields 1. 4 . 1. 1. 29 . A rally in gold prices the metal surging to near sevenyear high at this stage. Prices currently around 1684. 50, thats 2 to the upside. You can see a sharp move higher in the course of the last couple of days for gold prices. That sharp move is translating in crude as well in the other direction. Those prices for u. S. Benchmark crude prices, 51. 52 thats 3. 50 to the down side. Global markets are sharply lower on fears over the spread of the coronavirus. We have global Team Coverage matt taylor is in singapore, Julianna Tatelbaum<