where the world of politics meets the world of business. on the brief today, a reporter from hong kong on the coronavirus. laura davidson from capitol hill on the impeachment trial, and maria tadeo from brussels on surprisingly strong european pmi numbers. sophie, give us a sense of what is going on over there. the wto -- the who saying not so fast. the world health organization downplaying expectations of a breakthrough vaccine of treatment for the coronavirus, the agency saying it plans systematic review of all therapeutics as china is expected to start critical drug on the mainland as soon as thursday. as cutting taxes and fees and lowering -- david: give us a sense of what

is going on with hong kong. to what extent are they curtailing trade back and forth? kong, there will be a quarantine introduced as of the saturday for all travelers from mainland china, including hong kong resident and visitors. the quarantine will be for 14 days. this after the city markets first deaths related to the virus. this as the city grapples with supplies from face max -- from facemasks to toilet paper. terminals have also been closed. ,cross from the victoria harbor we have 3600 crew members and passengers remaining under quarantine on a cruise ship as they undergo health checks. while this speaks of the vigilance of the hong kong authorities, this fall short of calls by some for a full closure of the border with china. this has led to strikes by medical staff in the city.

taking into account the economic the virus willd, have an effect on hong kong's credit rating. -- this is aain plan to cut 90% of its flights to china over the next two months. david: thank you so much for that reporting from hong kong. now let's go to laura davidson on capitol hill. it is the day after the state of the union address. watching that last night it did not seem like there was a lot of love lost between the democrats and the republicans, particular between nancy pelosi and president trump. what is the atmosphere? laura: it is a highly partisan atmosphere. democrats met this morning. coming out of the meeting they said nancy pelosi was applauded for tearing up the speech. on the senate side, republicans are breathing a sigh of relief that trump did not bring up

impeachment and focused on the economy. yet a lot of memorable moments for the conservative base, awarding the medal of freedom to rush limbaugh, bringing back a soldier and reuniting him with his wife and family. applausedo, that got from both sides of the aisle. trump was able to parlay that into a dig at medicare for all and socialized medicine. republicans are happy and trump's legal team is preparing a victory lap for after the impeachment vote later today. lots of happy feelings on the republican side. final voteday of the scheduled for later on this afternoon in the senate, is it just all over but the shouting? what is left to be done? laura: there a couple of key senators we are watching. mitt romney of utah, is he going to vote to acquit or convict? he will go on the senate floor and announce the final decision. so far it looks like things are falling on partisan lines. doug jones, the lone democrat

he would voteaid with the rest of the democrats to convict the president. not a lot that is left to know. it is mitt romney and a couple of others who run close senate races or are from difficult states that are still announcing their decisions. thank you so much. that boat will be in four hours. now let's go to brussels. we got some interesting numbers, particularly manufacturing. maria: this is data that was better than expected. pmi indicates that the your area is actually -- that the euro area is actually in an expansion. you have to go back to 2019 to see the kind of momentum. it is also a surprise because the data in q4 was so weak. there are number of things here. i am sure you know we have transfers between the u.s. and

china. something that provided relief. the eu did feel like they were caught in a cold war between the sides. this is good news for the german industry in particular. then the fact we were able to get the brexit deal done at the start of the year. the brexit agreement also provided some certainty for european industries. there is a number of things to keep in mind. this is volatile data. this is something we get on a monthly basis. there is still a number of issues going forward in europe. i am thinking of the trade negotiations when it comes to the eu and the united kingdom. there is still a possibility there may not be a trade deal and the u.k. could leave on wto terms by the end of the year. for some, that is the equivalent of a no deal brexit. that risk could play out toward the end of the year, in particular with the german manufacturers. udc political risk in europe. if you look at france, there has been a strike for more than a month. you see that having an impact on

domestic consumption and the mood of the country. that is the second-largest largest economy in europe. the data for the start of the month. it does indicate things appear to have bottomed out but it does not mean we will stay on track going forward. david: thank you so much. that is maria tadeo from brussels. now let's figure out how the markets are reacting or if they are reacting. joining us is abigail doolittle. it looks risk on. abigial: it certainly is risk on. last week the worst week for the s&p 500 going back to august on coronavirus fears. this week we are on pace for the best week since june. the buyers are ferociously back in. the nasdaq putting in all-time highs, tech putting in all-time highs, today we have oil participating, energy the best sector, bond selling off. there is one small divergence on the day. that is nasdaq putting in all-time highs. today negative, up just

slightly. lagging the other indexes. often when you have those sorts of big divergences between the different asset classes, it points to more volatility ahead. david: volatility seems to be the hallmark. what is going on with earnings? we have had gm, we have had alphabet. abigial: earnings seems like it is in the background. the macro uncertainty about the coronavirus is the bigger backdrop because if the coronavirus were to take a chunk out of the global gdp, last week goldman sachs saying it would gdp, it out of the u.s. could be an issue. we have earnings for ford merckle, gm satisfactory, not so great, but earnings does not seem to be the big backdrop. we were just showing some of the big movers. tesla had been on fire. today reversing that. we are seeing that for some of

the other highflying stocks such as microsoft, gilead, some of the chip stocks. that tells you know news. when some of the other stocks are being sold on a lack of news , some profit-taking is happening behind the scenes of this otherwise rally. david: to say tesla is a big mover is an understatement. [laughter] never seen anything like that. many thanks to abigail doolittle. we turn now to mark crumpton. mark: as our colleague laura davidson was telling us, president trump virtually guaranteed to win acquittal later today in final senate votes on articles of impeachment. alabama democrat doug jones said he will stick with his party and vote to convict the president on both charges. the decision put jones's reelection at the deeper rest. he is the most vulnerable democrat in the senate up for reelection in a republican leading state.

joe biden's third presidential bid is entering a critical stretch after disappointing finish in the iowa caucus. the former vice president says he had a good night in iowa even as he trailed former south bend indiana mayor pete buttigieg and the leading progressive, senator bernie sanders. that has some democrats questioning his contention he will reclaim frontrunner status in the race against president trump. the world health organization says $675 million is needed to help countries handle the expected spread of the coronavirus. the head of the who acknowledges it is a large sum of money, but says it is "much less than the bill we will face if nations do not take steps now to prepare." health agencies say in the last 24 hours it has seen the biggest jump in cases since the start of the epidemic. down one country with the departure of britain, the eu is considering a new system for

adding members. the eu may open talks with two nations, north macedonia and albania, which were both disappointed when they were turned down for opening talks in october. some western european nations want to slow eu expansion for nations that may not be ready to take on full commitment on some issues like corruption. 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. i am mark crumpton. this is bloomberg. david? up, we willg democratic perspective on president trump's state of the union with representative debbie dingell from michigan. and turn into our live coverage of the new hampshire primary result next tuesday at 7:00 eastern time. we'll be live from manchester, new hampshire. this is "balance of power" on bloomberg television and radio. ♪

president trump: a good life for american families requires the most affordable, innovative health care system on earth. before i took office health insurance premiums had more than double. i moved quickly to provide affordable alternatives. are up to 60% less expensive, and better. david: that was president trump touting his health care record last night during his state of the union address. we welcome democratic representative debbie dingell from michigan. she serves on the house energy and commerce and national resources committee. she joins us from capitol hill. thank you for joining us. you heard president trump. in the 2018 elections the

democrats retook the house by emphasizing health care. is there a danger the democrats -- is there danger the president will steal that issue from the democrats? rep. dingell: it is difficult to talk about last night because it is the night that worried me. the divisions i worried about in this country were so evident in the house chamber last night. it scares me right now, quite frankly. i think we have to work together on health care. points thatis the he made are categorically not true. this administration has been working to undermine protection for people with pre-existing conditions since he became president. they are in court on it right now. when he talks about the affordable health care plans, they are jump plans that do not give people coverage on preventative health care, and are a lot of people who have seen escalating premium costs.

we should be working together to make it better. one of the reason premium costs went up is because he stabilized some of the things we have been put into protect the affordable care act. the american people are tired of seeing the tit for tat. there are serious problems in protecting the american people on health care. they want to see us work together. he should join us and protect people for real so they are not denied insurance because they have a pre-existing condition. david: it is fair to say that lastng on his performance night, he is not inclined to reach an olive branch to the democrats. it seems much more directed to his base. at the same time you have your governor who came back and try to have a reasonable approach. let's listen to what she had to say about the economy. president trump took a lot of credit. this is what she said. hitmer: wages have

stagnated while ceo pay has skyrocketed. when the president says the economy is strong, my question is strong for whom? david: that is the response. when you have a president who has that much of a spotlight and knows how to use it and how to keep it, how do you get your message through without going tit for tat? i spoke this morning to a room full of 1000 uaw workers, many of whom who voted for donald trump last time. i am not going to bash him, but i had a straight talk, and my best moment was when someone tame up and said thanks for talking to us. you changed my vote. i do not know who i will vote for in the democratic party, but i'm not voting for the president because he is not protecting people on health care. it will take a lot of us having conversations. he could change how people felt if he would do something about pre-existing conditions or do something to lower the positive

prescription drugs. it will be a grassroots effort this year. emme kratz will have to learn to talk about the issues -- democrats will have to learn to talk about the issues that matter for the people. we did not do a good job in 2016. we have to do a better job this cycle. david: let's talk about one of the issues usually at the top of the list -- the economy. let's talk about michigan. in november, will that be an issue that will cause men and women you know in michigan to say i might've voted for donald trump last time, i will vote for whoever the democratic candidate is this time? rep. dingell: i think this you beat yourdo wife? none of us do not want the economy to do well. we should talk about issues related to the economy. i know many are working two jobs to stay out of poverty.

they are still below the poverty line. i had annately, economic summit down liver -- downriver because u.s. steel is closing a plant and kde is closing two plants. we are having significant job loss. we need to work together. i want to work with republicans and democrats so we are bringing in new jobs, diversifying the economy, helping to train people with the skill set. there are still a lot of anxiety , they forgotearts what happened in detroit in 2008. by november it will be who they trust, who will deliver? that is what it will come down to in november. david: your leader, nancy pelosi , was not subtle in her reaction to the president speech, including ripping up the speech at the end. is that effective? what message does that sent to

the democrats and republicans? does it help? rep. dingell: this is what i will say. it was not a planned moment. she put her hand out and tried to shake the president's hand. last night was not the night i hoped it would be. i thought maybe this is the night we can come together and figure out how we will work on critical issues between now and november. the president's started off by not shaking her hand and his speech was nots let's work together, let's be honest. she is human, she sat behind him, there were a of shots taken, that was a human being reacting to a speech that for many was upsetting, and not something that was targeted at trying to bring us together. leader in the a democratic party and you know how that party works. whatever we think about monday night, it was not a good night

for the democratic party in iowa . how badly was the democratic party hard by the debacle in iowa? rep. dingell: iowa was hurt badly. i do not know that the democratic party was hard. both republicans and democrats have let iowa and new hampshire , the smallest states have a disproportionate impact on the presidential nominating system. i try to take this on into thousand eight. i swore i would not do it again. and weilding a coalition will take this issue on in the state that is hurting is the state of iowa because of their incompetency and how it got handled, and we need a better presidential nominating system that allows every state to participate in the process and have candidates here the issues on their minds. that is where i'm coming from from iowa. david: i suspect you might have more support after monday night. rep. dingell: i am finding

support. david: many thanks to democratic representative debbie dingell from michigan. this is "balance of power" on bloomberg television and radio. ♪

david: this is "balance of power" on bloomberg television and radio. i am david westin. the assistant attorney general in charge of the antitrust division has reportedly recused himself from the investigation into google as the pace of the investigation appears to be picking up. for today's installment, we welcome jennifer rie, senior analyst for antitrust legislation at bloomberg, and a senior u.s. policy director. there was a report i read in the wall street journal about what they are looking into it it may be the reason -- it has to do with advertising. : they represented to google as a lobbyist in 2007.

double-click is at the heart of google's business. at the time, there was extensive investigation, a long investigation into the deal before the ftc cleared it. i would think at this point it would look like a conflict of interest if the department of justice is going to focus their investigation on the ad business of google, if they do or do not find there has been an antitrust infraction, i think there would be allegations on either side. i think the recusal is not a surprise. david: that is not the only antitrust accusation in a tech firm. what are we looking at with facebook? >> they're looking at the acquisition of whatsapp and instagram. the concern is that before the acquisition, those may have grown to be more significant competitors. because -- is lost

is the remedy to go back in time and say should not of bought instagram to begin with? >> it is hard to unscramble eggs. a remedy in this case would be creating an end similar to whatsapp and instagram that would provide rivalry that was lost. i should caution that cases like this have a very big burden of proof. courts are reluctant to engage in the practice of trying to unravel a merger and it is only when there is clear evidence that direct competitors -- competition between direct competitors has been extinguished and there is a clear price of that that courts have gone through the process of unraveling consummated mergers. david: in the meantime they seem to be scrambling eggs as fast as they can with facebook.

jennifer: it was reported the ftc might seek a preliminary injunction. i do not have that is accurate or not, it seems premature. bar.would have a high we will see what happens. i think in 2020 there will be moves by the ftc or doj against big tech platforms. david: many thanks to jennifer re-of bloomberg intelligence and david balto. coming up, we will talk to democratic senator tom carpenter of delaware on president trump state of the union address. power" onalance of bloomberg television and bloomberg radio. ♪ hi! we're glad you came in, what's on your mind?

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that we can't do, but come in and see what we can do. we're here to make life simple. easy. awesome. ask. shop. discover. at your local xfinity store today. isfrom new york, this balance of power, i am david westin. we are back with our panel of isnifer, and, in watching 10

david beltre, former ftp -- atc policy director. let us go back to his book. when the mergers first happened with instagram and whatsapp, authorities did look at it. jennifer: we did not get anything from u.s. authorities but we did not believe that any into extensive investigations took place. u.k. took a careful look at whatsapp and america took a good look at the instagram application. facebook did not complete -- compete with the other two platforms and they looked at the potential issue, what whatsapp or instagram rise up to be a competitor to facebook? they concluded that that was not the case. those are not binding on u.s. courts or u.s. agencies, but there is -- they suggest that the lack of evidence was to buy up a nascent competitor. david: does this make a shift from social media to tele--- let

us make a shift from social media to telephones. t-mobile and sprint, is it going to get done or not? divisionthe antitrust is not the final arbiter on whether or not some kind of merger is anti-competitive. a federal court judges the final arbiter, an important lesson for the agencies to look up when they -- to think of when they look at big tech areas. even though the department of justice thought this deal was close -- was kosher. under close analysis, it looks like t-mobile's arguments are based on a wing and a prayer. they have arguments about efficiencies and sprint being a failing competitor and whether or not the remedy of selling things to dishes adequate. on all three they are inconsistent with that rock antitrust policy. i think the merger faces that

headwinds from this federal court judge. eric: going -- david: going back to facebook, they asked to create a new competitor by selling assets? jennifer: you talk about the sprint and t-mobile deal, the remedy was selling to dish. david: david was saying that maybe they could start a new competitor. apps you wouldese be a viable competitor. jennifer: a court has to decide that and show -- and you have to show that that was anti-competitive about facebook acquiring the entities. if you cannot prove that facebook has violated the antitrust laws, there is not a remedy. david: and a federal court judge doing a -- doing industrial policy is different. many thanks. back tome to turn capitol hill. president trump highlighted his record in the energy sector dirt

in his state of the union address. pres. trump: with the tremendous progress we have made over the past three years, america is energy independent and energy jobs like so many different elements in our country are at a record high. david: for more, we welcome tom carper from delaware, the ranking member of the environment and public works committee and a member of the homeland security and government affairs committee. thank you for being with us. give us your reaction about energy independence and what his administration has done. sen. carper: the number of times that i was thinking either the fact checker is going to have a good time with that one, and that may be one of those occasions. another one was when he asserted that the majority was very much in favor of protecting people with pre-existing conditions while supporting litigation in federal court that would take away people's protection when

they have pre-existing conditions. we will see how the fact checkers turnout, but that was my view. one of the ways we could be absolutely energy independent was to be -- which is to generate electricity offshore. we have the ability to do that. it puts no pollution or carbon and it does a -- but it puts people to work, and that is the thing he ought to have been talking about. he should have been talking about how can we can reduce emissions, our cars, trucks, and vans. there was a good plan left by the last administration, if we modified it, it would put more people to work and be acceptable to the auto industry. majorybury source -- the sources of climate change, and the crazy weather we are experiencing, are the coal fire utility plans. they can be phased out, not

eliminated overnight, but phased out, and in ways that will provide cleaner energy and make us less dependent on fossil fuels and foreign oil and petroleum. david: there was one part of the speech that you did support, when he talked about the highways bill, saying that he wanted that one passed. you've been a spokesman for infrastructure, how did you react and how would we pay for it? sen. carper: i am a recovering governor and worked for years as the chair of the governors association. we are focused on elements for job creation and preservation, and one of those is transportation infrastructure. committee onof our a bipartisan basis unanimously, five-year reauthorization for roads highways and bridges and included for the first time a climate title, our planet is getting warmer and there are things that we need to do. we want to make sure that we build in a way that vehicles and

battery-powered vehicles that are powered by hydrogen, which only create h2o as a new mission, make sure that we build those. in terms of how to pay for it, the chairman of the committee, we believe that roads should be used to pay for them. forof the disappointments the speech last night, he never mentioned the budget deficit, and it will be $1 trillion. if we do not figure out how to pay for roads, highways, and bridges, it will be bigger. i was disappointments that the president did not mention that. when i was governor and one of the nation's governors, we want to improve roads and say this is what i would do and this is how i would pay for it. i said mr. president, you have to be one point of that solution.

at 1.i held my wallet to remind him of that, and i will continue to do it. david: we are talking with a democratic senator from delaware, tom carper. watching the chamber with the president and nancy pelosi, there was no love lost between democrats and republicans. is there a real prospect to get anything done bipartisan? sen. carper: every year before the state of the union, senators, their spouses, and special guests from their state gather in the lbj room in the senate side of the capital and we have dinner together. fancy, justg chicken pot pie, asparagus, and that kind of thing. the mood and the spirit at that dinner before the speech was everything you would hope for from your elected officials. democrats,ether, republicans, and spouses, they were welcoming to one another. i have been privileged to hear

state of the union addresses from ronald reagan, bill clinton, george w. bush, and barack obama. i have heard a lot of them. one of the things they had in common was that the presidents who made those speeches did so in a way to unite our country and the people, not to live. and i hope someday that this president will emulate the behavior of some of the earlier presidents. i remember when ronald reagan was giving state of the union addresses, the speaker was a liberal democrat. they were friends, and tip o'neill used to say just because someone is your adversary does not mean that they have to be your enemy. they worked together on a lot of things. of ronald reagan turning around to shake hands and ronald reagan trying not to shake the hand, that would never happen. the see that happen was a great disappointment. david: i cannot let you go

without asking -- sen. carper: the things that i roads,ith, family leave, highways, and bridges. do we need more trees? sure. but we can put 10 billion trees across the country and the world will still have a problem. david: any advice for your fellow delaware en -- delawarian, joe biden. sen. carper: we need a leader who not only can unite our party, can unite our country, sort of like a lincoln person, a healer, and a leader who will restore our standing in the world. i think joe biden is that person. he is one of the best human beings i have ever heard -- served with. tom carpertor, -- from delaware. this is balance of power. ♪

david: this is balance of power. two days later and we do not know the final results in iowa. reporting, pete buttigieg is in place followed by bernie sanders, elizabeth warren and joe biden. the final results are no, it is now those time -- it is now time for the candidates to move on. we welcome genevieve would, senior advisor at the heritage foundation, and in new york we have christina greer, a professor of political science. andus go to you, genevieve

talk about what is happening in iowa. he heard the campaign manager say that they cannot even run a caucus, how can they run health care for the country, does this hurt the democratic party? genevieve: i think it hurts any party when you have a lot of hype going around something and it does not turn out to be what you thought in the nation is looking at it. this happened to mitt romney in 2012 with the app his campaign had and republicans have missed it in iowa, predicting into thousand 8, 1 winner and they turn -- it turned out to be someone else. the democrats have been running for three years against president trump, iowa was the first chance to see how the candidates that they of had on the stage do, and, unfortunately, it was not a good night and turning -- and looking like they had their act together and that is bad for the candidates, especially those who are questioning how clear the results are.

i think it is demotivating to many voters. david: it does not appear to have been a good night for joe biden, and the biting campaign should not have been surprised when it is a long haul. why's it such a long haul? he had had a distinguished career. if you looked at the resumes, it would not be close. christina: the biden campaign has deflated expectations in iowa and new hampshire. this is his third time at the rodeo. david: the first two did not go well. christina: we know that barack obama chose him, he was not nominated by a political party. in this instance, in iowa he knew that this is necessarily his space and he knows that new hampshire has elizabeth warren, and bernie sanders. they are all new -- native new englanders, politically speaking. he is putting many of his eggs

in the south carolina basket, so if he does not come in first -- it is actually first place or nothing in south carolina. as the moderate credits are emerging, you have biden, the mayor and klobuchar, and bloomberg slowly and chipping away at the states that joe biden was hoping to capitalize on. time: we spent a lot of with the possible democratic strategy, what issues would appeal to voters? did we get a close look at president trump's strategy? it looked like he was appealing to his base and not reaching out, there were no olive branches. that is you. genevieve: look, the president gave what many have always said that they wanted to see, which is a very presidential performance. he did not make any knocks at the other side or bring up iowa.

i kept thinking he would work that in. he did not mention impeachment, and it came's to things like criminal -- when it came to things like criminal justice to -- reform he said that they deserved credit as well. like every president they gave a laundry list of achievements and talk about where they have been successful. he did all of that, but also a lot of reaching out, not just a people in that room, but by the people that he highlighted in the issues he talked about. he made it clear that he was reaching beyond and directly to african-americans, wanting them to come on board with his campaign. i think he was reaching out beyond. david: there was a lot of mention of prominent african-americans and income. the thing i did not hear were a lot of big programs going forward. there was a lot of this is what we have done, and what is we -- and this is what we are going to do. christina: a lot of the african-americans he highlighted

were not get the votes, it is actually to help white americans justify their vote for the one who has accusations of what he is doing with i.c.e. and how he is separating families. when he means lifting people out of welfare, he means cutting people. there are 7000 american families without assistance. i do not necessarily think that all of his highlighting of the african-american individuals and unemployment, when you look at the numbers, he inherited quite a bit of that. what does he want to do? he did not lay that out. david: many thanks to christina greer. our live coverage of the new hampshire primary coming up next tuesday. this is balance of power on bloomberg television and on radio. ♪

david: this is balance of power on bloomberg television and radio. shares of general motors climbed and the auto makeover -- automaker forecast a boost in profit. the company expects the new vehicles to make up for weaker sales as it plans to bounce back from the toll of the 40 day uaw strike took on it. i took -- i spoke to the cfo earlier. >> if you look at the whole calendar, we have four dollars and $.80, and when you adjust for the impact of the strike, it was two dollars and $.71. a strong push from core operations. 2020, we expect that to continue, particularly on the cash side. we are expecting a total cash

building off of 2019 where we generated six point $5 billion when you adjust for the impact -- $6.5 billion when you adjust for the strike. our trucks and crossovers are doing well. the cost savings have impacted the impacts over -- have helped with the impacts around the globe. will, in 2020 have a full year of full-size pickups. the suvs are coming in later. how will that help -- affect the results. >> we will have a full year of light and then a full year of heavy duties. we expect to take down time for that, and our best practice is in our overall results and we expect to see this continue. on the full-size suvs are up and running, we expect to see a full momentum. we are very excited about the product. david: momentum tailwind for some products, what about headwinds in north america?

>> we are expecting the industry comesdown, and with that the residual ballot -- pressures. we expect macro to be softer, and that would be offset by the specific performance of our country -- company where we have unique catalysts. monitor, limit, and reduce costs. in part, perhaps of what happened in the labor divisions. >> we are laser focused on cost and that has been the focus for many years, and with the transformation we rolled out, we are on track to achieve that in the last year .5. we have invested $3.3 billion. it is certainly contributing to the bottom line, and when you see a macro environment, that is how we differentiate ourselves from strong products and a

differentiation on card -- and costs. david: out of china, what are you looking at in 2020. >> 2019 was softer and in line with the guidance that we provided when we saw the softness in the world market. we had about $1 billion of equity income, and the industry was maturing and going through a cycle, and with that comes the price impact. there exposed to some of lower tier markets in china, so our disproportionate impact affects the flecked -- the fact that we have the companies that work in the three to five tiered cities. we are looking long term bullish on the market and we think we are greatly positioned, especially with cadillac performing well. david: that is china overall, and we cannot talk about it

without the coronavirus. talk about how it is affecting general motors. you have manufacturing facilities in the area. -- our focus is on employeesees --our and making sure they are ok. it is a tough situation for everyone impacted. from a business standpoint it has a demand impact as well as global supply chain implications. it is too early to tell. we expect q1 to be weaker because of the situation. are we come out of it, we expecting the operation to recover. the team is working around-the-clock to make sure they are mitigating from the virus impact. david: that was part of my interview with the gm cfo. it is time for the stock of the hour, it is tesla. we are looking at tesla having its worst day since 2012. shares are sinking more than 14

percent, snapping a record-breaking six day rally. what is this, what goes up must comes down? >> cooler heads may be prevailing. the close had doubled in 2020 which had only been a month. people are assessing, does the evaluation have -- that the company has can really be justified by the on the mentals. you are looking at analysts who say we do not see an upside, the average target is $470. we are trading around $780. there is a disconnect. if you look at it on a fundamental baseness, the nasdaq trades at about 28. if you would apply that to tesla, the company needs $5.5 billion. -- $700 last year. the average income is less than 1.5 billion dollars, and there

is a disconnect. getting a downgrade today, and he said that the risk and reward is more balanced, and he noticed the coronavirus because tesla opened the factory in shanghai that could impact them from a production standpoint and from demand. the government has been cutting subsidies in the auto market is seeing 18 consecutive months of decline facing demand and production concern. david: not good news. thank you so much. we would love it if you stay tuned to balance of power, we will continue on bloomberg radio coming up next. ♪

scarlet: i'm scarlet fu. this is "etf iq." we focus on the access, risks, and rewards of exchange traded funds. ♪ tesla on a tear. we look at the etf's with the most exposure. volatility is back. what the return of it means. when