Mainland china in february markets need to be calm about the coronavirus outbreak. And a live bookkeepers helping customize it for our business. We need to go back into the live bookkeeper youre all set up facts and the figures and based janine great on that decide vo get set up right with a live bookkeeper with intuit quickbooks. The International Air transport says the endemic will slash Global Airline profits by 1. 5 billion thisyear. French finance minister bruno will have a bigger impact on markets than previously thought. Good morning, everybody. Lots to get through today. I want to bring you data were getting out of the eurozone. Probably a little outdated given everything going on with coronavirus but the february final pmi came in at 4. 2, the final numbers versus the flash estimate of 49. 1 slightly higher than the initial estimate for eurozone pmi numbers. Worth mentioning, none of this data would have taken into consideration any of the impact from coronavirus most of the data was collected before february 21st even though there were signs things were beginning to stabilize in the eurozone, pmi manufacturing numbers headed in the right direction. I have a feeling the march numbers are going to be a lot worse than what we got for february right now that is the picture for the eurozone pmi manufacturing numbers. Meanwhile, u. S. Futures are sharply higher as investors like the coordinated response on Central Banks on the back of last weeks steep selloff and wall streets worst selloff since 2008 they have stepped in to stabilize the market if coronavirus continues to rattle investors. Julianna will give us a full breakdown of whats going on in markets. European markets are on the mend this morning. The stoxx 600 trading 1. 5 welcome back to street signs. Some news out of north korea higher the stoxx 600 ended 12 lower, they say they will chatter one flight to aloe foreigners to worst performance since october 2008 Central Banks in focus while leave amid coronavirus outbreak. Investors make bets around the the flight for foreigners will stimulus we could see come through from Central Banks depart on march 6th and wi around the world overnight we saw data overchina thats word out from north korea doing their bit for coronavirus. On the manufacturing but this is obviously a couple we saw record low output from of hours after doing multiple china. Missile launches a few hours from the fed, the ecb and ago. Well keep an eye on the Central Banks more broadly geopolitical developments out of we are seeing a rally in north korea as well. Back to to europe, italy european markets were seeing a little pullback announced a 3. 6 billion euro from the earlier highs seen this stimulus package to limit the morning. 1. 59 is the number right now. Economic fallout from taking a look at the different coronavirus. The economy minister said the measures will include tax credits for companies that have regions, the dax, the german suffered a 25 in fall in index up 1. 15. Revenues as well as additional funds for the countrys health germans economy minister said service. Opposition lawmakers say the they must not allow the virus measures dont go far enough the leader of the far right party has demanded at least 20 affect them. The ftse mib down 0. 65 after billion euros in additional spending as ever, the story has become politicized. Claudia joins us more from stimulus was injected to milan. Tell us more about this package unveiled, italy being one of the mitigate the impact of the virus on the economy overall green for the regions in first to come out with europe lets take a look at the sectors, what the breakdown looks like coronavirus package. This package, its too early at one point we saw green for to tell if it will be enough but every sector mixed picture. 3. 6 billion euro stimulus for travel and leisure, auto, banks trading in the red tax credits for Companies Lose oil and gas, the clear at least 25 of their revenues outperformer that sector is up 2. 7 alongside a bounce in brent and wti. Further tax cuts in addition to 4 higher. Chinese factor activity payments for mortgage payments and decisions that had been made suffered its sharpest fall in to at least sustain the red zone february as the coronavirus outbreak hit the worlds second and extra cash for the Health System because that is where the biggest economy. Money needs to go in order to the manufacturing pmi slump to help prevent the limit of help id lowest reading since it was first launched this weekend showed the Health System can give weve gone from 152 cases seven Manufacturing Activity shrank at days ago to 1,577. Fastest ever pace. Chinese stock markets have 83 people have healed. Shrugged off the dismal reading. 34 are lost their lives. I have to say, im a little keep in mind that 40 of the surprised to see how well people that do contract the Chinese Markets are performing in light of the really dismal coronavirus end up needing medical help thats what the authorities are data we got. Trying to step in to solve manufacturing pmi 37 over the its not so much the risk of getting the virus as much as the weekend, Services Number at fact theres a higher chance 29. 6 i didnt even realize we could youll need medical help get a 20 handle for these pmi in order to try to curb the number of people trying to access these hospital numbers. Thats exactly what i was facilities, theyre trying to saying all this morning limit Peoples Movement to try and reduce the number of its really whats going to contagion. Once again this week, this is happen post covid19 the first monday morning, second as you were talking about at the monday of these measures that top of the show, Central Banks will be there for the market and limit Peoples Movement that is in place as you can see, of course our Chinese Forces a takeback market has been affected by message to, you know, their that the italian market is in hearts, i guess because we have, negative territory with the of course, infrastructure names barn really popping on a day like banks taking the hardest hit its too early to tell whether this, especially on the back of that package will be enough. Clearly the situation is Chinas National Development difficult but people seem to be commission, you know, talking about at this point speedy reacting with calm and work even Infrastructure Project pickups from home if not allowed to go into their offices i think really about china, coming back to normalcy at some back to you. Point and picking up the pieces, shifting to france, the pursuing all these Infrastructure Projects. That can, perhaps, explain the louvre decided to close its strong gains we saw especially doors. Confirmed cases hit 130 over the when it comes to property names and steel makers as well weekend. The closing was announced after when we talk about some paris banned all indoor Public Infrastructure names, especially gatherings of 5,000 people following an exceptional defense in the shenzhen area, they were limit up counsel meeting chaired by president macron himself. Chinese currency ending the day at a threeweek high against the french president bruno greenback popping by close to lemaire expected a drop of 1. 1 . 3. 5 against the greenback as well in the meantime, as we are he says its too early to seeing the markets betting on, of course, this big pickup in provide fresh estimates. Economic activity down the road charlotte, youve been following the developments in france and stimulus hopes out there, talk us through some measures there are, of course, the voices announced by france as well. There was a Cabinet Meeting talking about how china goes back to, you know, factories, over the weekend and they announced measures of banning public gatherings of 5,000 their offices, there could be people or more in confined pickup in confirmed coronavirus cases as well. Something we need to bear in spaces mind, on top of that, of course, advised people not to travel the spillover effect in the abroad if possible regional economy as well as the global one in the meantime, i do want to marathon in paris had been talk about hong kong specific canceled, 44,000 people. The largest book fair in paris story over the last hour or so january retail Sales Numbers was canceled while continuing to contract trade fair with 25,000 visitors down 21. 4 later in march has been of course, this is a city that canceled all of these things are happening. Is not seeing a lot of shopping Paris Fashion Week is still going as usual because well, not just about a few side events were canceled coronavirus but also because of but fashion week going as usual. The months long antigovernment protests and the month of february could actually see some the show must go on. Exactly worse numbers down the road. Its a bit of confusion and we something we need to brace ourselves for. See the louvre closed yesterday back to you. Certainly something well be and today still closed discussing on street signs in tomorrow museums are closed on 20 minutes time. Thank you for the breakdown of tuesday in france. Whats going on in china theres a bit of confusion from the w. H. O. Director general the public and a bit of anxiety. Has told cnbc that markets should calm down lemaire was talking about a global or at least coordinated despite the organization raising government response. The global coronavirus alert do you think were getting to the point of eurozone money . Hadley, you conducted that interview. One thing they stopped short of raising it to the level of its one thing putting cash pandemic do you think thats because they have an awareness if they would and helicopter money raining raise it to that level of over the economy, so the first thing is much more of a fiscal pandemic, it would raise extra response what the italians have done is exceptionally sensible but a fear in the markets. Step only in that direction. It was a fascinating you think about the hits gdp in conversation and quite wide rife ranging. The sense i got from him is he the second quart quarter for much of europe could be 1 , 5 still does not know and the data does not suggest were on the threshold of that pandemic but he did say the window of containing this virus is its helpful but not enough and narrowing and he is concerned about it needs to be coordinated. He also spoke to the clarity, we need i much more coordinated frankly, he was getting from various nations or potentially the lack of clarity when we talk about a country like iran, the response are you expecting anything out of this ecb meeting on the w. H. O. Will be sending a Team Stimulus front into iran to meet with its quite possible she has to talk about liquidity officials. So many questions about and talk about they can reporting on iran versus what stretch the envelope and buy the state media is saying the number of deaths, those bank bonds, thats possible. In terms of other measures, its infected lots of questions about what the chinese knew and when they knew more about fiscal policy, i it i asked him about the united think. Thank you david owens, charlotte as well states, is u. S. President donald trump doing enough when it comes thank you for breaking down to coronavirus whats happening in france. He said each state needs be stay with us doing what they can. Coming up in the show, were he said that about italy as going to talk about Hong Kong Well listen in to what he said retail dropping. I can lean on people, specifically about the markets we need to focus concerns an and that for me is what teamwork is all about. You cant do everything yourself. Worries what we should be but we should calm down and work. You need someone to guide you and help you make those tough decisions, and stigma should be avoided, thats Morgan Stanley. Which were seeing and which is dangerous. Theyre industry leaders, but the most important thing is this virus is everybodys enemy. They want to do it the right way. Everybodys enemy. As human beings, we should stand im really excited to be part of the Morgan Stanley team. In unison. Im justin rose. Discriminating and stigma is the we are Morgan Stanley. Worst. Its more dangerous than the virus itself thank you. So, in terms of that the w. H. O. Has said this should be a reality check for governments globally do you believe Global Financial markets need a reality check given what youve just said about fear and panic yes, global markets, yes, everybody, by the way. They should calm down and try to see the reality. As you said, reality check facts, figures and, you know, decide based on that we need to continue to be rational you know, irrationality doesnt help we need to go back to the facts and figures and based on that well decide so, the w. H. O. Directorgeneral saying markets need a reality check, they need to focus on facts and figures, they need to be more rationale at the same point he was frankly unwilling or unable to tell me whats the threshold for pandemic what could be the signal weve gotten past the point of no return he also mentioned within that framework again and again is we need to avoid media hysteria on that stage, member of the world food program, humanitarian, refugee agencies, and folks that deal with humanitarian crisis on a daily basis. I got disgruntlement that coronavirus was taking so much away from palestinian, refugees, burkina faso, these areas theyve been working to get donations from different governments. I said, if you have a coronavirus out of control, the governments will have to be supporting efforts to combat that effort and it will take away funds and time and focus away from the issues youre here to talk about. They said, yes, its deeply concern given the crisis facing the world today. No doubt. One thing i want to point out is it looks like the markets are listening to w. H. O. Directorgeneral because everything is trading in the green. Well take what we can get. Thank you for the coverage out of the middle east lets bring in jeffrdavid owen this is coming at a time when welcome back to street the world was set back by trade signs. Im Julianna Tatelbaum im joumanna bercetche. Wars we were just beginning to turn a these are your headlines new page european stocks rally bouncing back from the worst week while looked like green chutes emerging weve seen the numbers over the u. S. Futures point to a higher weekend in china if thats a taste of whats to open while investors bet on come for europe, feels like we are on the precipice of a coordinated central bank action. Recession here, doesnt it chinese equities closed we can go back and look at the history of pandemics, though higher shrugging off mainland not as defined its very localized, very activity in manufacturing. Focused, happens over once or rationalitity doesnt help. Two quarters and then you get a we need to go back into the recovery were seeing the effects come facts and the figures. Based on that we decide. Through on the chinese data and we expect that to happen in lufthansa cuts flights to italy, south korea and Hong Kong Europe in q2. While the International AirTransportation System says the what we know from history if pandemic will slash prices by they do widespread school 1. 5 million this year. Closures, people dont move around, we dont see the hit as Bruno Lemaire says the virus greater. Policy makers need to provide will have more of an impact than liquidity, cash injection to get through this hump. Previously thought cashstrapped Companies Running out of cash, et cetera thats where the focus needs to be we had italians coming out with the a package. Companies may need debt relief, tax relief, et cetera and the weve got the uk pmi numbers Banking System may need help once we get through the Second Quarter were assuming growth coming through we had earlier zone earlier this rebounds thats the history of pandemics morning. Uk factors feeling the effects over the histories. Lets dive deeper into the of the coronavirus spread. Different policy options the pmi came in 4. 7 from the no you mention the stimulus package that through change level of january. Slitsly higher than the month how do you think about the previous thats the highest since april targeted fiscal efforts versus but slightly weaker than flash monetarying easing at the end of the day its a government decision to provide point. That is a healthy expansionary cash, a central bank decision. For the central bank if they file small, medium size territory. This is for the month of Enterprises Need cash, thats a february so somewhat backward fiscal decision. Thats where its that to be. Looking. Similar situation for those eurozone pmi numbers we had earlier. Lets look at europe an markets were convinced the fed will cut its a full suite of green by 50 bips, we dont know what friday we had stoxx 600 end 3. 5 hell do it. As i say, we have to look Percentage Points lower for the through the currents, you know, week most of these indices were down. Widespread worries quite rationally by the end of the day, i think we are gaining ground but not the hit will only be on one quarter. Policymakers will be banking on fully k fully recoup rating. That theres even talk of the fed going as much as 50 basis points some chatter going that far and fo the eu and uk are beginning cutting rates that aggressively. They were talking about 50 official talks about the future trading relationship this week, bips before coronavirus. So there are about 100 uk my question is the pushback lawmakers headed to brussels negotiations will start and continue until thursday. Thats something to keep an eye on from a political perspective. Is markets are not