Travel and leisure recover after ryanrare continue to slash capacity and bmw ceo adds his company is operating as normal on the supply chains, we dont see any large disrupts. A warm welcome to street signs. Global finance ministers discussing a possible coordination to the responseof coronavirus. Listening to the call at 7 00 a. M. Eastern led by Steven Mnuchin and Jerome Powell. While the group is drafting a statement on countering the economic impact, it does not specifically call for coordinated Interest Rate cuts nevertheless, european markets are surging following wall streets lead yesterday. You can see the dax and the main benchmark up 2 . In italy, the mib facing a strong recovery up 2 . Yesterday, we saw italy underperform, in particular the italian Banking Sector on concerns of the virus weighing sentiment there. The impact this could have on bank balance sheets. We are seeing strong gains across the european session. You can see we have green across every single sector. Chemicals leading the way Higher Financial Services up 2. 7, real estate, health care, technology. A mixed picture as to what is leading. A widespread change here. Lets look at airlines that has born the brunt lufthansa is up 6 , ryanair up klm up sizeable gains in the airlines space, which is interesting given that they have suffered strongly as investors have tried to weigh what the coronavirus means for the outlook in europe. Looking at tech stocks we saw apple shares rally 9 now you can see the tech space in europe. Asml up 3. 5 strong rebound in tech this morning. Lets take a look at european banks. I mentioned the pull back in italian banks. This morning, we are seeing widespread gains in the banking space including those italian banks. Despite the fact that there are concerns, investors putting a lot of weigh on what they could say later on today unicredit up 2 . And san paolo up more than 2 . Looking at the dow that ended up more than 5 higher very strong gains. That is the best day in 11 years for the dow in percentage gains. The level 1,294. Kicked off the commentary today. Lets look at the asian markets. The shanghai composite up and a lot of the strength we saw come through on wall street did filter through to the asian session. Overall green for asian markets as well lets talk about why a vow to take appropriate and targeted measures and stop the eurozone from falling into a recession. The statement by ecb president lagarde follows a series of announcements from leading banks. Fed chairman Jerome Powell said the u. S. Would acts as appropriate to support the economy. And the bank of england vowed to work with promises the chorus of promises has cooled the concern as we are speaking, president Christine Lagarde is chairing a meeting, an extraordinary one given the circumstances. Looking at what is priced in there is about eight basis points priced in suggesting there is not much fire power left what can they do here . If you look through the statement, it is clear the focus is on liquidity on the rate cut across is more about talking together and each and every central bank can do to timeout what is seen on the market for the ecb, it is not about cutting rates but fighting liquidity here we have other instruments available where they could inject the Financial Markets that regain the trust in the system that is not about to collapse that is not the only thing the ecb can do now what they can do about the virus, they can do a lot clearly, that is in the definition to restore the broken supply chain they can counter demand shocks and enhance demand for loans for small to medium sized enterprise that are currently hard hit and by all suppliers really at the end of the food chain, so to say to give you, perhaps, more of a thinking of what the hawks might think, here is a quote from the president that i spoke to on friday and what he thinks the central bank can do against the fight against the coronavirus. It is important to note that the policy is already very accommodative. In a sense, its abundant, Interest Rates are low to some extent, this is already providing insurance. We have to look carefully on the root causes and the different effects of the spreading of the virus. Are we talking about negative supply or demand effects this will determine what the inflation forecast and if you look at negative supply shocks, they can raise prices and the reaction of the policy that is at the current moment not clear. I said in the press conference, i dont see any immediate need for action in other words, the rate cut is highly unlikely when p it comes to the policy action this week like a crisis answer. We most likely get more liquidity early on currently, the executive board of the ecb is meeting if they were to decide on more action and to have an extra ordinary Board Meeting. This could be done by telephone, if not done in person. Then we have the call among the g7 nations one thing is concern that they have woken up to the crisis mode of the market that needs to be done something to reassure Financial Markets that it is not a foregone conclusion that we fall into recession worldwide. I think that is the main purpose now of the central bank to reboost confidence in the markets that we dont have selffulfilling prophecy that the markets are dragging into the economy of course having a very sober or very bad sentiment about how the World Economy can go currently executive board is meeting and most likely we hear from the governing council at some point and then the all important policy meeting next week but they dont want to put too much pressure on that meeting that we might not see a lot of rate cut changes from the ecb very soon. Back to you. So much to watch out for. The question is whether the market will be satisfied with just liquidity measures and no Interest Rate cut. Talking about Central Banks, lets switch and talk about another one. The rba has custody basis points to soften the impact of the coronavirus. Matt taylor is live from singapore. So the first of the corona cutters outside of china right weve had two here in the asia pacific session. We did see the currency move higher despite the cut, cutting rates to a new low we have been told we could see a surprise cut the rba says the coronavirus has clouded the shortterm outlook on the economy when it comes to tourism education. Once the virus is contained, it says the economy will return Malaysia Central Bank cutting taking its benchmark rate to 2. 5 , which is the lowest level in about 10 years. We did see a fair bit of green new zealand was the best performer today. Australia about. 75 higher we were doing better causing a little disappointment out there that we didnt get 50 basis points japan was trading higher, then we saw a lot of money around the japanese yen pressure on the market, lower at the close, at one point, 2. 2 . Thank you for bringing us the latest from the asia session President Trump has praised the reserve bank of australia move as using it as another opportunity to criticize the u. S. Reserve the leader tweeted, quote, that it was sad that he could not followed lead and that Jerome Powell called it from day one. Going to our guest this morning, markets are surging this hour. In your view, how much can central bank support actually provide a cushion here and is this the right one i think it was expected after what we saw last week. The move in the u. S. Was quite strong but so was the down move last week. I think Central Banks, we have to be cognizant. They cannot do much about the falling, the outbreak of the coronavirus. What they can do and what is important is to make sure liquidity is ample and goes in the system what you dont want and we are watching closely in the market, you dont want those tight conditions which would create trouble and head winds for the real economy when we talk about rate cuts, the focus here seems to be on liquidity more than rate cuts. You have President Trump calling attention to the rba how effective does a rate become versus an individual stand alone rate cut i think you will see the markets. What they expect is the liquidity and what people will focus on is the fiscal stimulus. You have a call from french finance minister talking about coordinated stimulus that would be powerful in the short term, not much can happen until you have this containment and the sense of the worse of the Virus Outbreak is behind us. We are not there yet, if you look at the uk and the u. S numbers are still very low in italy, numbers want from one case to more in two weeks. We should expect the same for france and maybe other countries, uk and the u. S. We have to be patient. If this is synchronized, that is positive for the markets looking at what is prized in and the discussion we had with the ecb core respondent. 50 basis points. The language out of the central bankers is that they want to lean in more on the liquidity side of things perhaps providing more liquidity in the operations in the u. S isnt that inevitable that markets will be disappointed what is very tricky is that no one really knows what the outbreak will be because it is still ongoing. We dont know, so yes, you are right. The rate market is pricing a very aggressive rate cut in the u. S. By the end of the year. If that needs to be reprized, it doesnt mean you will have a massive shock on the equity. That will be proportionate to what others do, you could have less potential reprizing on the market thank you for your thoughts stay with us more to discuss after the break. To learn more about how the virus is already impacting the economy. Check out the oped, italy, the sick man of europe tries to administer its own medicine. Angered by the governments decision to force through a controversial pension overhaul welcome back to the show nashvilles Fire Department is responding to reports of 40 structure crashes following a tornado in the area. Well be keeping an eye on developments early reports suggested that a fuel tank explosion and planes were on fire at the public airport at nashville well monitor that situation back to the news in europe, the french union expected to hold a series of discussions today regarding the pension reforms. Europe will struggle to tackle the economic fall out also seeing a disruption of the flow of goods as the area shuts off some of the borders. To our guest joining us, it sounds like you expect things to get worse . Yes p. Wh, when we look at k, china, we think things will get worse and will likely cause more economic disruption. So the big talk today is about the cut or the stimulus. What is the point of stimulating if people are physically not going to work and factories are operating at 50 capacity . I dont know, to be honest. It will create shortterm good news but this is a severe disruption that will likely last we expect if we get rate cuts and fiscal stimulus here and there, which we are skeptical to get in large amount, this is a Health Crisis and it is unlikely to calm the situation. One of the interesting developments is the country that has the highest number of cases is italy italy is also one of the weakest countries economically right now. How concerned are you that this could be the straw that breaks the camels back, so to speak when it comes to finances, yes, it is a worry. It comes to the eu to be lenient. They are not going to launch a deficit procedure. We have been warning about a possible debt crisis given the weakness in u. S. Corporate bonds. The trigger that could be raising the next financial crisis is a slump in growth. We could see an unralphing of bonds. It is a dense global growth, that is a big concern we are having looking at the political implications from the outbreak shes concluded that this could have a positive impact on political relations and a positive impact on the uk, eu relations. What is your take here it is a little difficult, if you think about the trade negotiation that is starting now. I kind of feel we have lost momentum compared to last year it has to start the stance taken by the uk fairly, fairly hard. We have to see if the outbreak is going to make things better between the two parts. Im not sure what it will do in the background that will not be as much in the headlines, so maybe it is for the better and im going to want to give up on the red lines because there is a Health Crisis in europe that is going to have consequences for the uk and europe the irony is that this just happened on the heels of another Euro Group Meeting they wanted to agree on a sevenyear budget. Couldnt come to agreement all of a sudden, we are talking coordinated response where was that intention last week it was just a few weeks ago, we were talking about the budget. They couldnt agree on anything. Absolutely. The point here, what we know about the eu, it reacts when there is real crisis i do think there is a political upside from all of this. I agree the tensions from the uk and the eu without the coronavirus are extreme. And it is not going to be a positive outcome i do think trade tensions are likely going to subside because of the Health Crisis we are facing there is a political upside, that will also manifest itself by the time the eu meets again on the budget. Theyll realize theyve made the show and will move on. What is left in the ecbs tool kit that could give markets comfort here i dont think there is much left they are not going to have Significant Impact the whole thing about appointing lagarde is the political fire power. She is going to step up the pressure on the countries and stimulus that is where we are headed to thank you to our guests well be back and well leave you with a shot of how energy is faring and well be right back welcome back to street signs. Im Julianna Tatelbaum and im joumanna bercetche. These are your headlines european stock markets rebound sharply with minors and tech stocks leading the rally. European financials also firmly in the green after the top Central Banks say they are ready to counter act the outbreak President Trump praises the rate cut taking another swipe at the fed. Travel and leisure recover after ryanair continues to slash flights. And bmw ceo is keeping a close eye. We dont see any large interruptions yet but we are monitoring closely well see what will happen but currently, all of your plants are operating. We are just getting some data out of the uk construction data. That has come in at 52. 6 this is a big jump versus 48. 4 in january we got the manufacturing pmis for february slightly weaker than the slash we have these construction numbers coming out showing uk builders have returned to growth after the election that is the latest in terms of uk data. Youve got to see how much that strength will last. Especially on the strength of the coronavirus. Lets talk about markets, a lot of green on the board. Trading nicely in the green after a lack luster session. The land over from wall street, very strong. The biggest jump for the dow we have ftse 100 just above 6,800. About 2. 2 firmer. We have news about measures that they will be reducing and recommending for people to do. Keep an eye on that. In germany, we have the dax up about 2. 6 were seeing companies that got beat down and recovering some travel names, lufthansa is staging some rebound industrials trading as well. Cac is up and italy is very much focused on the ftse mib yesterday. It was one of the few spots of red on the board italy has reported the highest number of cases in the eurozone. It is a concern for the smebased economy. We are seeing the rebound and some of the italian names that got hit are recovering names like unicredit are up. Some stabilization for european markets. Lets talk about currency markets here it is a big day when it comes to coordinated actions and expectations we have the g7 call taking place. Also an executive Board Meeting being tabled right now by ecb president lagarde. Keep an eye out on the measures that could potentially be announced and could be very significant. Euro, we have trading slightly on the back foot the ecd did release a statement saying we are ready to use all measures lets look at that in a few hours time. Dollar yen, we have a slight spot the pound we have trading slightly firmer versus the zl. Dollar let me talk Central Banks. Super tuesday not just for the politics you can see that overall in light of the equity come back, fixed income is coming off the 10year is off about 10 basis points it was trading firmer yesterday. Yesterday, when we were talking about italian banks coming under pressure, the spread widening. We are seeing a come back for the bond yields. Guild selling off a little bit the treasury is now back at 1. 15 thinking yesterday morning that the 10year note briefly noted the alltime low breaking over 0. 14 so weve come back a lot off optimism amid that allimportant g7 call. Looking at futures that are pointing to the moderate start seeing things open up about 40 points higher and nasdaq up after a stellar day yesterday with those markets really jumping north of 4 or 5 . Well see whether that momentum and if investors are quite nervous about what p wiwill hap this afternoon porch has unveiled the latest version of the 911 series. They planned to release the car at the Geneva Motor Show but that was canceled amid concern for the coronavirus. On the line with us, i know it must be disappointing to see the flagship event canceled over the coronavirus concerns share with us some details around the launch of the new series and give us a sense of how business is going more broadly for you . Good morning. Oliver blume from the Porsche Design center. We are here working on the design rather than being in geneva we appreciate the steps theyve taken and we think safety first. We are flexible to organize here at porsche central in germany. What impact has this had on your business. Perhaps trivial on things such as supply chains first of all, we closed all of our dealerships in february in china it has sales impact.