, with vonnie quinn in new york. we are counting you down to the european close on "bloomberg markets." ♪ back in the green for the s&p 500. we started the day in the green, gave up some of the gains, and we are back up 0.1%. those companies faring well are expedia, up more than 11% after reporting results that surprised the street. they were better than expected, looking for double-digit growth.

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's check in on the market story with abigail doolittle. abigail: the story today is certainly risk on. the equity indexes around the world, lots of green on the screen. 0.4%, the nasdaq up 0.7%, the chip index up about 2% on hopes that the coronavirus situation in china, that tragedy, is not going to impact that supply chain for chips all that much. we also see the stoxx 600 in europe up, and during the asian session, the nikkei was especially strong in japan. as for what is beneath the seeace in the u.s., you can most sectors are higher, so investors are really going towards stocks. utilities, real estate, those are high dividend yielding stocks, so we will be talking a look at rates in a moment. when rates go higher, those dividends look less attractive. i was mentioning the strength for the technology and chips. there you see it with tech up 0.7%. helping the financials and hurting real estate and utilities, that is

vonnie: from new york, i'm vonnie quinn this is -- vonnie quinn. this is "bloomberg markets." guy. guy: let's turn our attention to what is happening in turkey, and figure out exact a what is happening there. the turks have decided to ask the united states if they can have patriot missiles, which they will put on the southern border with syria. basically, this is to deter russian action in the italy province. . the history behind this is -- in the idlib province. the history behind this is very important. a defenseently bought system much to the annoyance of washington. let's go to istanbul to get the latest on this. ant is joiningr us. talk about how big a surprise this is. we have seen all of the issues surrounding the s4 hundred purchase, and then we get an issue where basically, the turks need the patriot missile system. this is a huge turnaround. onur: it certainly is. relations has been on the downhill since the decision to system the s400 missile from russia, and now turkey feels like it needs another missile defense system, this time from the u.s., to protect its troops fro

vonnie: i am vonnie quinn and this is "bloomberg markets." the electric car maker is double this year. trying to figure out just how elon musk is doing this. joining us is david wells. it has been a phenomenal rally. what is behind this? david: tesla has answered a lot of questions in the last two barricades were poking calls on the tesla story. they said they could not make money or generate cash and they would have to go back to the markets for more cash to find elon musk's ambitions. they have been profitable to quarters in a row. profitable in the fourth quarter of last year. complained that elin could never hit production targets -- elo could never hitn production targets. elon thanks this will outsell all other vehicles combined. they were a year late at least with everything that came out with. they are starting to really operate this company. i think it has many sentiment change industrywide the age of electric asian is here -- electrification is here. i think there will be a big car pileup with these coming to market, but they captur

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. guy: and from london, i am guy johnson. this is "bloomberg markets." theail doolittle, what are markets looking like? abigail: we are not seeing the rally that the bulls may have hoped for. in the u.s., the nasdaq is up .02%. yesterday, the dow and s&p 500 had the worst day in two years. the dow is down . 75%, a bearish reversal. in europe, bearish on the stoxx 600. in the 10 year yield down is down about three basis points. looking at the volatility through an overnight chart of the e-mini futures, and you, can see doing the asian session there was a nice rebound for stocks. negative around the open, higher, then lower. now they are about flat. the s&p 500 cash is flat well. there is reason to think that the s&p 500 has more work to the downside. the sellers will continue to take control. by buyers disappearing yesterday. on the bloomberg terminal, here is an interesting chart on the dow transport on bottom, below the 50 day moving average, jump a below the 200 day moving average yes

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. guy: this is bloomberg markets, i am guy johnson. democrats ripped into each other ahead of the south carolina primary, the main target was the frontrunner, bernie sanders. getot only is this a way to donald trump reelected, we have a house to worry about. we have a senate to worry about. >> i like bernie, we came in together, but i don't think this is the best person to lead the ticket. >> i dug in and did the work, and bernie trashed me for it. tracked muchasn't of anything. >> donald trump thinks it would be better if he's president and i do not think so. vladimir putin things that donald trump should be president and that's why russia is helping you get elected so that you lose to him. remind,i was -- just to mike bloomberg is the owner of bloomberg lc. let's get to south carolina, kevin cirilli is standing by. the verdict on who has the momentum right now coming out of the debate? then: i'm not sure trajectory has changed significantly since last night, senator sanders still pois

i'm vonnie quinn. welcome to bloomberg markets. from bloomberg world headquarters in new york, here are the top stories we are following. a sea of red for global stocks. the s&p 500 wiping out its 2020 gains and posting its worst day in two years. investors fearful as the coronavirus spreads far beyond china, potentially upending global economic growth. seek safe havens, gold looms toward $1700 an ounce. we talked to the ceo of sibanye stillwater, who may target m&a worth $5 billion to expand its gold portfolio. kailey leinz is with us halfway into the trading day. the dow is down more than 1000. kailey: we are deeply in the red, down more than 3%. 2018, driven since by fears of the coronavirus. there is a lot of conviction behind the selling. volume about 40% above average for this time of day. the dow now down by more than 1000 points. the s&p down by more than 100. that is the first time we have seen that in some time. for the dow, this would be the third worst day in history if we close at these levels. the s&p has only been do

: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's check those markets now. bad day for the chinese markets, better day in europe and the united states. abigail doolittle, over to you. abigail: take a look at the u.s. the s&p 500 up 1.2 percent after falling nearly 2% on friday, the worst day in quite some time, and the worst week last week since august. the fears around what economic impact could be falling a bit. the dow transports has been down even more than the s&p 500, down on the year about 2%, but a little bit of a bounce back for that index. in europe we see gains. we have some big weakness for some of the asian markets. if we take a look at the shame -- the shanghai composite, the ont session that we had monday was january 23, and the lunar new year plus three days extended over the coronavirus, over this time, an official correction at the lows in the monday session for the shanghai composite, down the most since 2007, but right here the worst since 2015.

vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." here with first word news is with a co-group that -- is ritika gupta. ritika: president trump poised for acquittal in the senate impeachment trial. it began when the house launched a formal inquiry into the president's dealing with ukraine. a big victory for pete buttigieg and a setback for joe biden. buttigieg maintained his lead in the iowa caucuses after a second batch of results were released. bernie sanders was a close second. biden finished force behind lisbeth warren -- finished fourth behind elizabeth warren. a huge surprise in the adp employment figures for january. the firm says u.s. companies january,,000 jobs in the most since 2015, and almost twice the average estimate. the government comes out with its january jobs report on friday. the u.s. trade deficit shrank in 2019 for the first time in six years. that reflects plunges in oil imports and shipment from china, and gives president trump some evidence he delivered on promises to reduce the gap. the annual deficit in goo

vonnie quinn. guy: in london, i'm guy johnson by vonnie: we are in -- we are 30 minutes into the trading session. amount for the coronavirus. the 10 year yield is at an all-time low. every group in the s&p 500 is down. energy, car parts, tech. the index is down 2.5%. the 10 year yield creeping back up a basis point of two, but we the -- wethe close to were very, very close to the lows. selloff in crude oil as well. guy: absolutely. over here, stoxx 600, 595 stocks are lower. five or higher. that tells you about what we are seeing. the stoxx 600 down by 3.8%. i have to mention the volume is very, very substantial. some of the peripheral markets in italy trading down very, very sharply today. 5.5%.y ten-year is catching a bit with -48. daxie, let me show you the over here. a lot of people were short long. we are getting a squeeze when it comes to the b stocks. 73 -- 74% move of stocks. a huge gap higher. vonnie? vonnie: coronavirus concerns battling global markets at this hour. italy is at the epicen

i'm vonnie quinn. guy: what a trading day it's turning out to be, i'm guy johnson, welcome to bloomberg markets. vonnie: we begin with fresh u.s. housing data, with home sales from january up by .2%, better than the estimated 3%. the previous month revised better, there was a slow down, these are context signs, but not closed upon. -- these are contracts signed but not closed upon. these are not taking away from today's market the s&p 500 is down 2%, about 40 stocks are high, and those have very fractional gains. if video -- a few idiosyncratic stories. there.st a bloodbath out the 10 year yield at 127. -- at 1.27. we hit the record low and we are sinking. aboutl speak to kumar where he thinks this could be. and to be vicks future curve is in backwardation. it's elevated right now at 32, getting into the danger zone. $46.40.e oil at the 10 year yield is actually off the chart. guy: off the chart is how these markets feel right now. i think the action is shifting, what we are seeing in germany is -75 fo

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's check in on the bloomberg first word news. here with the details, ritika gupta. ritika: president trump has beat back a lawsuit that has to do with his washington hotel and other properties. the suit claimed the president violated the constitution emoluments clause by profiting from foreign government spending money at the hotel. at federal appeals court sent senatebers and the lacked the standing evidence to sue the president. more evidence of a durable labor market in the u.s. decembers's numbers were revised upward. unemployment rate rose. parts ofn drenching fire and drought stricken australia's east coast. it is causing some flooding in sydney and bringing relief to firefighters still dealing with dozens of blazes in new south wales. more than 40 fires are still burning in the state. 17 of them are not contained. the blazes have killed at least 33 people and destroyed more than 3000 homes. in germany, another s

vonnie: i'm vonnie quinn in new york. this is the european close on markets area we are back with daniel morris, with us in london. daniel, sets on futures may be rising 75 basis points to the year, but will the market do the fed's job for it to, in the sense we have low yields at least this week, and is the fed -- if the fed were to do that, is it even clear that would help things or the fed would be able for other reasons than just this drop in yields? daniel: i think the assumption is that the way the markets really should be viewing this is going to be a transitory shock to the economy. this is why you hear from the ecb, there should not be a knee-jerk reaction on coverage because this is in contrast to what happened last year when the fed were thinking about the medium-term impacts of higher tariffs and that justified for them cutting rates. there is a lot of parallels in terms of the chinese economy and u.s. economy because of the coronavirus, but you should not -- at this point, we think what the market has priced

vonnie: i'm vonnie quinn in new york. climate change is the issue of our time. launched bloomberg green on that note, using data and in-depth reporting to illustrate the scale of the challenge. focused on the issue of lithium-ion batteries used in electric vehicles. alix steel has details. the 20th century was the image of the internal combustion engine. the 21st century will belong to the battery. 2040, the majority of cars sold around the world balloon powered by batteries, they will make far more pollutants and gas guzzlers, but the elements used in batteries have their own challenges. lithium is a water guzzlers. if lithium prices stay low, it may not be worth the cost to mine. the industry would likely opt for the risk your method of pumping salt water underground to extract it a good nickel is used in lithium that are eyeing on cathodes, alarming electric vehicles travel faster and farther. but it is not clear whether minors in indonesia can keep a steady stream of nickel coming. and cobalt present in ethics problem. it helps keep the battery cool during c

vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." let's get to those markets now. abigail doolittle is with us. abigail: we are certainly looking at a risk off tone. the s&p 500 in the u.s. headed to its first down week in three weeks. the nasdaq down 1.4%. hang seng was down more than 1%. crude oil, brent crude down more than 2%. investors out of risk assets today. renewed fears around the economicus, plus weak data in the u.s. has sent the 30 year yield down to its lowest level. really pretty incredible at 1.9 percent. if we go into the bloomberg and take a look at one force of pain, the u.s. market data in the u.s., take a look at that. a contraction for the services and overall composite come of the lowest level since 2013. investors really not liking the fact that the coronavirus does appear to be affecting the economic data in the u.s. finally, some of the big movers on the day, both to the upside and downside, deere put up a great quarter. those shares are sharply higher, up nearly 10%. procter & gamble is the next best mover

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. guy: from london, i am guy johnson. let's get to our stock of the hour. here is viviana hurtado. viviana: our stock of the hour is chipotle. beating estimates. key comparable sales accelerating. for eight consecutive quarters. let's take a look at some of the headwinds. that includes menu changes on a premium beef product. that is not being digested well by investors. they do not want to see the extra profits go. you can see that right now it is touching the red, down 2.5%. let's take a closer look at those fourth quarter blowout numbers. a big beat on adjusted earnings per share. ,e want to focus on revenue jumping almost 18% to $1.44 billion in a very important focus would be comparable restaurant sales, up almost 13.4%, soaring on the growth of transactions, this being fueled by its digital strategy. people are placing bigger orders when they are ordering online. revenues from digital rising 17% in the fourth quarter, representing 19.6 percent of q4 sales. if you were to look at th

this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn in new york. jon: i'm jon elrichman in toronto. fed officials expressing interest in digital currencies in recent days but some fear the volatility in bitcoin and other cryptocurrencies make them unpredictable forms of payment. a possible solution could be stable coin. a new class of crypto coin backed by reserve assets. -- welcome the man who introduced the first canadian dollar back stable coin. stable is the keyword here, to have the canadian dollar time to this asset. tell us more about how these stable coins work. we believe the capital markets are going to be significantly digitized in the future compared to today. the only way that can work is if we take all of the financial market instant -- infrastructures that exist in today's analog market and represent them in the digital market, but in a way that is well-regulated, reliable, adult. those mechanisms include exchanges, custodians, and include ways to exchange value. the canadian dollar stable coin we have launched is a mechanism to allo

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." let's check in with the bloomberg first word. here is viviana hurtado. viviana: the number of cases in by hubei province has soared 45% to almost 50,000. spikebrupt reversing the trend on the the coronavirus may be under control. the coronavirus is blamed for what is excited to be the first drop in oil demand in more than a decade. that is coming from the international energy agency. the iea says the virus is battering china's economy. it says at this stage, it is hard to be quiet about the impact. southwest airlines extending the absence of the 737 max from its schedule until after august 10. the airline says not having the max cost it millions in operating income last year. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado. this is bloomberg. vonnie: thank you. bob faith is the ceo and founder of greystar.

, with vonnie quinn in new york. we are counting you down to the european close on "bloomberg markets." ♪ back in the green for the s&p 500. we started the day in the green, gave up some of the gains, and we are back up 0.1%. those companies faring well are expedia, up more than 11% after reporting results that surprised the street. they were better than expected, looking for double-digit growth. clearly, coronavirus is not impacting future sales all that much at the moment. , data as well, storage center, those kind of chips doing well. that is having a halo effect on some other chips. a couple of them are lower as well. there is some treasury buying along with the equities bounce, so we have to take note of that. 7%.10 year yield at 1.5 we got consumer confidence data above 100 today from the university of michigan. preliminary february data increasing, and revisions to december. that said, retail sales didn't exactly reflect increased confidence. they were pretty stagnant, if not a little disappointing. guy: her

from new york, i'm vonnie quinn. >> it is turning out to be quite the friday. i am guy johnson. welcome to "bloomberg markets." vonnie: we begin with fresh economic data. let's see where university of michigan sentiment is coming in. they came in at 101. the market is looking for 100.7. it is higher than last month. 114.8. conditions up to , 2.4%.s of inflation let's get to the markets because it is the seventh down day for global equities and the s&p 500 down 3.5%. a few stocks are higher including 3m which is the only down component which is higher right now. it fell off everywhere. speaking of the dow, it has been the worst selloff week for the dow than in any year since 2008. that is not just a week, that is in a whole year. any year since 2008. that will give you some idea. the tenure yield dropped down. at 117ff of its low waiting for the fed to speak. the vix up to 45. we thought we were high yesterday at 33, we are much higher than that now. crude oil continues to settle. we are just about $45 per barrel. gold is also selling off today. down 1.3%. the stoxx 600, 372 whic

vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." guy: let's dig back into the conversation we've been having with david kotok, cumberland advisors chairman and chief invested officer. when it comes to tesla and the run it's been having, what do you make of it? david: the only thing i can see in tesla -- you know, what a controversy. we had a large short position, and the shorts got squeezed. classic story of a short squeeze. so they had a panic buy. they had a cover. they were losing money every minute. that was a scramble. where this goes from now is unpredictable. tesla has been controversial. so has musk and all of his antics. on the other hand, electric cars are coming. two questions off that. does this feel like 1999 in terms of the tech bubble and what happens to stocks at that point? the other, is this a prelude to a bubble being formed in esg -style stocks that can take advantage of the environmental switchover we are going to see? david: in 1999, we had a federal reserve that went very expansive worrying about y2k, so they

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. close" onhe european bloomberg markets. vonnie: time for the stock of the hour. here is viviana hurtado. viviana: our stock of the hour is legg mason. shares are surging. they are up almost 24% after they agreed to a buyout from rival franklin resources at a big premium. the deal valued at $4.5 billion. let's take a closer look at the stock price. $50 per share is the buyout price. that represents a 23% premium to friday share price. it also gets the stock back to 2008 levels. in 2008, the financial industry taking a hit, this included legg then which cratered after portfolio manager lost big on financial stocks. let's take a look at the industry contact of the merger. franklin and legg mason. it represents a move do combat trend toward indexing. b.i. writing that in the last decade passive style funds have taken in $1.6 trillion. $1.4have also lost trillion. if you were to look at the sp y, 300 $20 billion in assets under management. the combined fi

vonnie: from new york, i'm vonnie quinn. this is the european on bloomberg markets. federated -- officially debuts after federated investors took a majority stake in a london-based fund manager and 2018. the new company now manages more than $550 billion in assets. joining us is jake christopher --ahue, the ceo congratulations to both of you gentlemen. this has been a long time in the works. chris, explain to us why this is a good deal for all. chris: thank you very much. it is a great deal for federated. we started talking in 2012. we had almost six years of cultural due diligence to find people who were consistent with our values, to find mandates and success in investment management, and international footprint, and a culture that would match up well. the esg and responsible investing was a critical ingredient as we saw that as the next step in investing in our future. vonnie: what is it like to see the melding happen? the deal is not fully done. there is a lot to do over the next couple of years, but essentially now you're on the new york stock exchange, therefor

i am guy johnson with vonnie quinn in new york. we are counting down to the european close on "bloomberg markets." ♪ vonnie: we are getting a break down but the s&p 500 up 1.5%. there seems to be money moving back into stocks from treasuries with the 10-year yield at 160. one of the earnings stories is ralph lauren. up 10% roughly. there are some little flaws in the earnings report. half the stores in china are closed right now. witho much the case google. revenue disappointed. there are privacy and regulatory issues coming up once again. google down about 4%. guy: no longer a trillion dollar company. we are up around 1.5%. stabilization and asian markets, particularly china. a huge response from the chinese authorities. saferesult of all of this, haven seeing a little bit of selling. gold is down. a little bit of selling when it comes to the german 10-year. vonnie: the u.k. asking its citizens to leave china because of the coronavirus. let's go to hong kong. how serious is this development? we have a huge number now of deaths in

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. guy: from london, i'm guy johnson. this is european close on bloomberg markets. time for our stock of the hour. for a yacht hurtado is here with details. is here withrtado the details. viviana: our stock is canada goose. saying coronavirus is having a material impact. it is the latest retailer to cite loss china sales as a reason to/-- as a reason to slahs its 2020 outlook. chinese consumers are staying away from stores because of the coronavirus. look at the slash to guidance. previous fiscal year guidance was 20%. now it has been cut to 15%. is growth you can also see slashed. 58% of revenue is coming from non-canadian currencies. if we were to break out revenue by region, asia makes up 20% of the revenue. it is important to further drill down because the last quarter, revenue and asia double before the outbreak and that shows the region is a strong growth driver for the future. canada goose is just one of the stops taking a hit. if you were to look at other luxury brands, we have b

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." after the fireworks surrounding the departure of the u.k. chancellor, there's now belief that the u.k. is about to embark on a very big fiscal easing. the question is how big. we are back with martin gilbert, vice of standard life aberdeen. we've got a new chancellor. are we going to see the taps being open, and how open should they be? martin: i think we are going to see some infrastructure spend. there's never been a better time for a government to borrow money with these 200 year low interest rates. we have seen them push the noton on high-speed, too, that i would probably be around to see at by the time it is finished. but i would expect to see infrastructure spend, especially towards the north, which is where he really won a lot of these seats, and he wants to repay the voters up there for voting him in. guy: how much divergence do you think we are going to see between the u.k. and the eu rulebooks, and where is that

. ♪ vonnie: i am vonnie quinn. amanda: i am amanda lange. looking to "bloomberg markets." vonnie: the roaring 2020's. a new decade starts on a higher note and wage gains are accelerating. equities hit the pause button. u.s. stocks fall after a four-day rally. the coronavirus presented new risk to the economic outlook. the cloud moment fresh fourth-quarter earnings. alphabet's ceo lays at her vision for the tech giant's future investments. our interview with her in the next half-hour. amanda: a quick check on the major averages. we are giving up some of the gains of recent sessions, snapping the winning streak here . likely to see the broad markets up on the week, and that includes the s&p 500. we do have the fed now factoring in coronavirus to global growth. the words new risk will get bandied about. we will talk about that coming up. you can see markets are weaker on the declining side. we are definitely seeing tech stocks showing leadership, but materials and energy are guiding lower. one reason is oil reaching $51 for wti. the 10-year, we are seeing that fall below 1.6%

vonnie: from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close on "bloomberg markets." i want to carry on the conversation about what is happening in europe because today the emphasis has shifted from a focus on the corona minus -- coronavirus, now in europe. this is a major economy, and china is also, but if you have two of the major interests in the world having economic problems as a result of the virus, we do not know yet what this will do from a medical point of view but we are starting to see the italians are shutting down towns. a similartting reaction from the one you saw in china? how, in that position, i position myself, do i buy gold, or bitcoin? walk me through what kind of a doomsday portfolio looks like. >> it does not have to be a doomsday scenario. we just take the simple stimulus, and provided that the political situation in the u.s. plays out as expected, if you look at the angst from prism of fedfed easing, if the easing it is supported for the u.s.. you just want to buy more north american assets. i

vonnie: i'm vonnie quinn in new york. this week, we been focusing on the credit side of the global selloff. could a leveraged loans be the next part of the market to take a dip? joining us now is clear boston. how have they remained immune so far? that part of the market seems to be pretty immune. >> i think we are starting to see those cracks. we saw a leveraged loans take a bit of a tumble. a lot of the seller today is also concentrated in leveraged loan and high-yield credit. a lot of investor nervousness right now. when theycredits that stumble, they have more trouble making those interest payments. amanda: even before we had this threat of a pandemic, something that could really shut in the u.s. economy, we have people talking about these huge tranches of high-yield debt that could be downgraded. on the leverage side, we were talking about worries with covenants. the fear is an inability to repay. of the pile.e top so what is the actual fear level here, on worst-case in areas for economic downturn? we are seeingnow a

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. guy: from london, i'm guy johnson. this is "the european close" on bloomberg markets. vonnie: the italian opposition leader accusing the premier of underestimating the threat of the coronavirus outbreak. i is urging the government to earmark at least $11 billion in aid for those hit by the disease. maria tadeo is in rome. talk about this man of the north -- does he try to take advantage of this in some way? maria: that is the question. the reality is at this point italy is a focus of the coronavirus. more than 10 people dead. close to 400 cases that have been reported of the coronavirus. industrial powerhouse of the italian economy affected by the virus. , he can smellvini blood. he knows that from this could be political repercussions. he is saying it is clear the government has not managed this correctly. we went from having just a few cases a week ago to pushing almost 400 cases. to have the country become the focus point of the virus for europe. i spoke to him and asked him this a

vonnie: live from new york, i'm vonnie quinn. this is "bloomberg markets." home depot has rebounded from a string of disappointing results, the largest home improvement chains reported results that beat estimates. their stores did better than expected and now the company is forecasting sales growth of up to 4% this year. quarterly earnings were better than expected. there ceo says the results were not as good as the company intended, but they were helped by a strong holiday season. iphone sales in china plummeted last month. this month's numbers are likely to be worse because of the coronavirus outbreak. apple has reopened nearly 30 of the 42 stores it had closed in mainland china because of the virus. that is your latest bloomberg business flash. let's check the 10 year yield. we are within a basis point of the all-time low. now trading at 132.88. we were just below that a moment ago. low.0 is the all-time the market really clustering around that particularly -- particular yield right now. here in europe, the markets have certainly taken a hit. the ftse 100

this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close on "bloomberg markets," let's check in on the bloomberg first word news. here with the details, riddick ago.. -- the details, ritika gupta. ritika: democratic candidate going toloomberg will debate state for the first time. bernie sanders leads the way at 31%. a bloomberg is the founder and majority owner of bloomberg lp, the parent company of bloomberg news. u.s. attorney general william barr told associates he may quit. barr is frustrated over president trump's tweets and comments about justice department investigations. he issued a rare rebuke of the president last week. another sign of a strong housing market in the u.s. housing starts pulled back from a 13 year high, but remained at over 36 million units, the second fastest pace of the expansion. the british government wants to end the immigration of unskilled workers. a new points-based immigration system will take effect next january. skilled workers must prove they

vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." we are speaking with david page of axa. want to come back to the boeing news we had a few moments ago about a new software flaw being found. this coming out from the faa. but mainly, robert kaplan mentioned boeing, and said that economic growth might be 0.4% higher if it weren't for the boeing problem. we still don't know, and won't know for some time, what the impact of the coronavirus is. how concerned does that make you given that kaplan is a voting number this year? david: the boeing problem is something we have been aware of for some time. it is sort of encouraging to think that the fed is considering it along the same sort of magnitude. that is part of our forecast. we expect u.s. growth to slow this year to 1.6%, which is around trend. it is a little slower than the consensus. that story is pretty well digested and has given us a pretty clear theory of what it is going to do. as to where it goes, if we see it contained within c

this is bloomberg. ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close on bloomberg markets. time for our stock of the hour. universalking about shares -- viviana: our shock of the hour is iphone display maker universal. a 10%y maker could take hit because of disruptions caused by coronavirus. let's take a look this morning. to0 sales outlook cut by 40 $50 million. another thing to look at is the revenue could miss consensus by 7% and four q eps lower. the virus could cut sales after the company raised its capacity. all of this coming on the heels of apple's own sales cut. we talked about the blockchain disruption. it is not all negative. despite the cut, sales are still expected to grow. the company just invested in increasing its capacity. that points investors to look at margins for the rest of 2020. if we were to look at universal display customers, it is a supplier to apple. it sells pricey screens to apples suppliers, lg and samsung. they get passed on. apple uses universal screens only

this is bloomberg. ♪ vonnie: live from new york, i am vonnie quinn. guy: from london, i'm guy johnson. this is the european close on bloomberg markets. the south african president will deliver his state of the union address in cape town in around 10 minutes. investors want an update on the government's efforts to turn around the economy and how much progress is being made to deal with the state utility struggling to keep the lights on. joining us with his view is colin coleman, who previously ran goldman sachs operation in south africa. he now teaches at yale. a keep doing cash can cyril ramaphosa keep doing what he is doing or doing out need to see a major shift in the approach to dealing with the south african economy? sophie: he needs to keep doing what he is doing, but there is a new sense of urgency i pickup from the people at the top levels of the government that should be reflected by what we hear from the president. i believe there are some cornerstones of that. one is the need to get growth up. we have been below the average growth rate over

live from london, i'm guy johnson, with vonnie quinn in new york. we are counting you down to the european close here on "bloomberg markets." ♪ we begin with u.s. crude oil inventories for last week not as weh of a build -- vonnie: begin with u.s. crude oil inventories for last week. not as much as a build as into the baited. we are up more than 2% of the back of that data. refinery utilization was positive by 1.4%. the market was looking for that to go into the negative by 0.5%. crude oil inventories rising by 415,000 barrels only last week. gasoline inventories was a drawdown of nearly 2 million barrels. let's check u.s. markets more broadly. the major indices are really unchanged, but we have a few major movers, including viacom cbs, which disappointed in its first quarter as a combined company. investors are really punishing that stock. guy: a bit of breaking news, the unicredit boss looks like he is emerging as a potential hsbc ceo to get the job. remember, noel quinn currently yethe interim ceo at hsbc, the interim ceo putting out a is invol

. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson and this is the european close on bloomberg markets. oil stocks hammer this week. is trading at a dividend yield of -- percent. all of them are losing close to 20% of the value. is it too early to buy some of the most beaten up stocks in the market? guests, and steven, you have shell trading at 9%, that has to be incredibly attractive area downside looks enormous. buy at point does the reasonably rice as i'd kick in? bilal: we have been talking about the software. meaning and valuation of stock market -- probably not. didn'te some and they have the same impact. it's the number of cases that much lower. what you do know is that with bond yields, equity risk has risen relatively substantially. produce our capital market assumptions in december. when we did, u.s. 10% was 1.7 and now it is 1.2%. medium-term expectations will be 5% and 5.5%. that has not changed. we have an equity risk at 320% and that is about 4%. -- 3.8%, and that is about 4%. as an will

he spoke with bloomberg vonnie quinn and guy johnson. >> you can't be a bank analyst without being a part-time tech analyst and this acquisition of morgan stanley buying e*trade is about digital brokerage and digital banking. i think it is a fair question, companybillion for a that is the stock market sensitive? this interest-rate sensitive at a time when you have peak retail investor engagement and high stock prices? we are not saying this is the bottom. acquisition, this a 10 pe company paying 15 times earnings for another company just for starters is not ideal. guy: i've heard a lot about the corporate stock prime business and the fact this is a fantastic business and undervalued at e*trade. does that argument not stack up? in the whole idea of revenue synergies. if a brokerage firm can get customers through a variety of ways, digital delivery, or through the workplace and to the extent morgan stanley has a broader suite of products, if you are an e*trade customer, you should say this is fantastic. i would love to be in e*trade customers even more right now ofause you have so much

he spoke with bloomberg vonnie quinn and guy johnson. >> you can't be a bank analyst without being a part-time tech analyst and this acquisition of morgan stanley buying e*trade is about digital brokerage and digital banking. i think it is a fair question, but $13 billion for a company that is the stock market sensitive? this interest-rate sensitive at a time when you have peak retail investor engagement and high stock prices? we are not saying this is the bottom. the timing of this acquisition, a 10 pe company paying 15 times earnings for another company just for starters is not ideal. guy: i've heard a lot about the corporate stock prime business and the fact this is a fantastic business and undervalued at e*trade. does that argument not stack up? >> it goes in the whole idea of revenue synergies. if a brokerage firm can get customers through a variety of ways, digital delivery, or through the workplace and to the extent morgan stanley has a broader suite of products, if you are an e*trade customer, you should say this is fantastic. i would love to be in e*trade an e*trade customer

vonnie: from new york, i am vonnie quinn. on the heels of jay powell's testimony at the new hampshire primary, i sat down with harrison street co-founder christopher merrill. harrison street is an alternative real estate asset investment firm with $25 billion under management globally. christopher: for us regardless of the political environment, it is good long-term investment. vonnie: you raised another $1.6 billion last year -- more opportunities in the area. it feels like lps cannot give away enough capital. alternative real estate is one area where there are picking up yields. oriented?he value the u.s. or outside the u.s.? christopher: investors are concerned about the cycle. increases in allocations of real estate. investors are concerned about where we are the cycle. we are seeing an alternative segment, a lot of opportunities in the infrastructure space. we are investing more about what we're doing in public to private partnerships. we are seeing an increase in value from that standpoint. the nice thing is the value a

from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is "bloomberg markets." vonnie: right now, we are getting a bounce in equities both here and across the pond, down from the survey and from the previous month. of course, it is a little bit less recent data than the jobs report we got just last week. however, another labor market indicator. the s&p 500 right now it's up more than 0.4%. , even year yield at 1.59% as we saw the spread invert yesterday. the dollar index broadly stronger, though at the moment, down about 0.1%. the big story today, the t-mobile/sprint merger could close as early as april 1 after it got over a court case, finding that state ag's did not have a good enough case. that merger will go ahead now. 10.9% now. up guy: every sector bar one is in positive territory. chair roomwhen fed powell's comments came outcome of the euros dropped quite sharply. as we ended up with a one dollar a $1.08 handle, dollar weakness is what the market is watching out for. basically flat on the day for the single currency, but it did have a brief dip sharply l