Squawk Box Europe Express

Asia rebounding: equities across the continent trade higher as China reports a slowdown in the increase of Coronavirus cases, and Japanese exports fall less than expected. In the U.S., Apple closes almost 2 per cent lower after its revenue warning, dragging on the Dow Jones, but the Nasdaq ekes out another record close. The outbreak is already causing havoc for Jaguar Land Rover with the auto maker resorting to flying parts out of China in suitcases. CEO Ralf Speth tells this channel that his supply chain will be under threat in a fortnight. And in an NBC/WSJ poll, Bernie Sanders is in the lead in the Democratic primary race with Michael Bloomberg increasing his figures. The billionaire media tycoon has said he would sell his company if elected president.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A shock warning… Apple says it will fail to meet quarterly revenue guidance, as the coronavirus outbreak disrupts iPhone sales and weighs on demand. Asian Apple suppliers sell off, dragging on the broader equity markets. HSBC says 35,000 jobs will be lost over the next 3 years amid the lender's strategy overhaul. The bank's shares see red in Hong Kong after full-year profit misses expectations, falling 33 per cent. In commodities news, strong iron ore prices help lift half-year profit at BHP but the miner still posts a slight miss, as CEO Mike Henry tells CNBC the coronavirus impact has been limited. In Italy, Intesa Sanpaolo makes a nearly €5bn bid for UBI Banca, which could create the eurozone’s seventh-largest bank. And Facebook’s CEO Mark Zuckerberg is in Brussels where the EU’s industry commissioner saying the social media giant must adapt to the bloc’s rules rather than the other way around.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19

More cases confirmed: China reports more than two thousand new cases of coronavirus, pushing the death toll to over 1,700. In response, Hubei province bans all vehicle traffic while France reports the first death outside Asia. Chinese stocks jump as the PBOC cuts its medium-term lending rate by 10 basis points, in an effort to curb the economic impact of the virus. Elsewhere in Asia, recession fears rise as Japan's GDP contracts by more than 6 percent in the fourth quarter. BoJ Governor Kuroda says the coronavirus is the top risk facing the world's third-largest economy. In the aerospace industry, Airbus says it 'deeply regrets' a US decision to hike tariffs on European-made aircraft, as the White House trade office raises the stakes in the 15-year long dispute over subsidies. In Europe, the U.S. warns nations against doing business with Huawei, as Defense Secretary Mark Esper tells CNBC exclusively that Washington is spending hundreds of millions of dollars to find a viable 5G alternative.See Privacy Policy

Assessing the economic impact of the coronavirus. Chinese officials say over 63,000 people have now contracted the disease, as President Donald Trump's top economic advisor criticizes Beijing's response. Larry Kudlow tells CNBC “we thought there was better transparency coming out of China, but it doesn't appear to be. I know they revised their numbers up a bit. They say it's a different method of counting. We just don't know. It's the great unknown.” Meanwhile, S&P Global has warned China that it could see its credit rating downgraded, if it were to fight the economic impact of the virus with ramped-up fiscal spending. We discuss updated forecasts for the Chinese economy, and Europe’s biggest economy, as Germany prepares to release its latest GDP figures. The CEO of German industrial gases company Linde tells CNBC in an exclusive interview that he cannot think of a country, “where the industrial production rates are actually higher going into 2020 than 2019.”See Privacy Policy at https://art19.com/privacy

China sees a sharp spike in new coronavirus cases and fatalities prompting Beijing to revise its method for counting infections. The Chinese government also dismisses senior Hubei province officials for their handling of the outbreak. Earnings take centre stage in Europe. Credit Suisse CEO Tidjane Thiam oversees his final set of earnings at the helm of the Swiss bank, after it lowered its profitability target for the fourth quarter, but some analysts expect a positive surprise in the bond business. Restructuring costs drag rival Commerzbank into a net loss for Q4, causing the German lender to cut its dividend for the year. Finally, we speak to the boss of health and nutrition company DSM about the coronavirus outbreak. He tells CNBC that most operations in China are still running.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Confident but cautious...Federal Reserve Chairman Jerome Powell tells Congress that the U.S. economy remains very resilient but acknowledges that the ongoing coronavirus is still a threat – this on the day that China confirms its lowest number of new cases since late January. In the New Hampshire Democratic primaries, Senator Bernie Sanders pips Iowa caucus winner Pete Buttigieg to victory and leaves former Vice-President Joe Biden trailing in fifth place. Shares in Softbank surge on the judicial approval of the Sprint-T-Mobile tie-up but a series of bad investment decisions weigh on the Japanese tech giant, driving quarterly operating profit down 99 per cent. It’s better news for Heineken, which reports a solid set of fourth-quarter earnings but cautions it’s too early to assess the full impact of the virus outbreak. And we are live in Cairo at Egypt’s petroleum show, EGYPS 2020, where U.S. Assistant Energy Secretary Frank Fannon tells CNBC that Europe is set to find itself in a gas and LNG supply tug-of-war

The coronavirus claims its 1,000th victim with more than a hundred new cases confirmed in a day. A number of Chinese officials have been removed over their handling of the outbreak, while more economists update their growth forecasts. Analysts at Citi slash their first-quarter China GDP guidance to 3.6 per cent. Italian luxury winter couture brand Moncler has also given a cautious outlook due to a ‘critical’ business environment in China where store footfall has plunged by up to 80 per cent. Asian equities, however, have followed U.S. stocks higher with Amazon pushing the S&P and Nasdaq onto fresh record highs. And on the earnings front, travel operator TUI says the grounding of the Boeing 737 Max continues to weigh on profits, but withholds comment on the impact of the virus outbreak. German luxury car maker Daimler slashes its dividend amid its latest profit warning.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-

China tries to get back to work amid the Coronavirus outbreak. Numerous major factories in China reopen, including plants belonging to BYD, Tesla, Daimler and Ford. The iPhone supplier Foxconn also gets the green light to restart work at a key plant but Apple and Alibaba opt to keep their facilities shut. The death toll from the virus surpasses 900, following its biggest daily increase yesterday, with more than 40,000 cases confirmed globally. Asian stock markets start the week in mild negative territory. In Germany, Daimler is reportedly planning on cutting up to 15,000 jobs which could save the luxury car and truck maker up to €1.4bn a year by 2022. And we are live in Dublin where the nationalist Sinn Féin party is poised to enter government after winning its highest ever number of first preference votes in the Irish general election.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

U.S. President Donald Trump reportedly goes ‘apoplectic’ during a phone call with UK Prime Minister Boris Johnson over his decision to choose Huawei for Britain’s 5G roll-out. This as the U.S. Attorney General William Barr urges the state to buy shares in Ericsson and Nokia to help create viable Western competitors. CNBC learns that Elliott Management has moved to acquire a $2.5bn stake in Softbank following Masayoshi Son’s WeWork misstep. Meanwhile, Chinese stocks look set to mark their worst week in nine months as the Coronavirus shows no signs of abating. The doctor credited with raising the alarm about the outbreak has died in Wuhan, as the overall death toll surpasses 600. The spread of Coronavirus is also being felt in the automotive sector with Fiat Chrysler warning it may shut down a European plant should Chinese factory closures affect its supply chain. And in corporate news, ride-hailing app Uber has said it hopes to turn profitable by Q4 2020 despite an expected loss of $1bn this year.See Privacy P

A Valentine’s Day surprise…Asian stocks rise on the back of an unexpected decision by Beijing to halve tariffs on nearly 2,000 U.S. goods on February 14th. But the spreading Coronavirus is weighing on companies around the world. Tesla says a delay in deliveries has reversed a six-day rally while Yum China has warned of Q1 losses. Nike, Disney and Qualcomm are also bracing for disruption to business. In energy news, oil prices are up with markets banking on a production cut from Opec and its allies as a technical meeting between the producer nations runs over into a fourth day. We also have earnings from French banking giant Société Générale, which drops a reference to a key profitability target, and we speak to the CFO of Dutch lender ING who warns of a challenging environment amid negative interest rates.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The Coronavirus claims another 65 victims, edging the death toll towards 500. Both Washington and London have announced new evacuation measures while at the WHO, a senior health official has slammed China’s early efforts to contain the outbreak despite director-general Tedros Ghebreyesus’s initial backing of Beijing’s response. Disney has lured 28m new subscribers, reportedly enticed by the Baby Yoda franchise but CEO Bob Iger tells CNBC the media and entertainment giant is also bracing for a $175m hit to its Chinese theme parks due to the spread Coronavirus. The outbreak is also potentially affecting Ford who’s shares plunge in after-hours trading as the car maker revises its guidance.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Hong Kong reports its first fatality linked to the coronavirus with the total death toll surpassing 420 and more than 20,000 cases confirmed globally. Chinese President Xi Jinping strikes a defiant tone, saying Beijing has launched a ‘people’s war of prevention’ against the outbreak and has threatened to punish anyone failing to perform their duties in combatting the virus. Asian equities claw back some of the steep losses Chinese mainland markets suffered yesterday, while oil also reverses following a brief dip by WTI below $50 per barrel. In the U.S., markets are on tenterhooks awaiting the delayed result of the Iowa caucuses, which have been thrown into disarray due to voting inconsistencies. And in corporate news, Alphabet stocks dip into the red after-hours on the back of poor Google ad sales and YouTube data despite the tech giant beating Q4 expectations. But Tesla shares soar by almost 20 per cent – the company’s biggest one-day gain in seven years – boosted by stellar numbers from battery partner Pana

Chinese stocks plunge on re-opening after the extended lunar new year holiday amid the outbreak of the novel coronavirus. More than $400bn of value are wiped off the mainland indices, despite efforts by the Chinese central bank to support markets by injecting liquidity and cutting rates. The death toll from the virus reaches 360 and the first fatality outside China is reported in the Philippines. Meanwhile in the UK, Prime Minister Boris Johnson is ready to set out his proposals for a trade deal with the EU, warning that Britain would not be aligning with Brussels regulations.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A new era for the UK… We are live in Westminster, Brussels and Dover in a special edition of Squawk Box on the day that Britain formally leaves the European Union. The government has planned celebrations throughout the day ahead of the 11pm departure time. The World Health Organisation declares the coronavirus a global health emergency as the outbreak claims its 200th victim and cases are confirmed in India and the Philippines. The organisation, however, stops short of recommending travel and trade restrictions with China, helping Wall Street finish January in the green, with European stocks set to follow suit. And in corporate news, Amazon shares surge after the online retail giant posts better-than-expected Q4 earnings, sending its market cap above $1 trillion in after-hours trading.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Assessing the cost…. Asian stock markets slump to a seven-week low as the coronavirus death toll rises to 170 and foreigners flee China. Economists sound the alarm over how the outbreak could impact China’s economy, with some saying GDP growth could slow to 5 per cent as a result. Facebook shares suffer, despite a Q4 earnings beat, as investors show concern over the social media giant’s soaring costs and narrowing margins. In Germany, Deutsche Bank reveals a worse-than-expected €5.3bn net loss for 2019 as the cost of the bank’s restructuring hits the bottom line. We hear from the CFO James Von Moltke. And in the U.S., the Federal Reserve says it is ‘appropriate’ to hold rates steady, but chairman Jerome Powell voices fears over the coronavirus’s effect on the Chinese economy in the medium term.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Correction territory… fears over the coronavirus drives the Hang Seng towards its worst month since August, following a global market sell-off after the Lunar New Year holiday. The death toll has now hit 140, with 1,500 new cases being confirmed yesterday alone, including in Germany and Sri Lanka. Chinese President Xi Jinping calls on his country to pull together in defeating the spread of the virus. In the U.S., Apple delivers a record quarter, beating profit and revenue forecasts. The tech giant says it is monitoring how the coronavirus may unfold. The effects of the outbreak, however, have already impacted LVMH. Despite posting record-breaking revenues for 2019, Q4 sales in Hong Kong have plunged by 40 per cent and the French luxury group has moved to shut its stores in the territory. We are also live in Madrid where Santander has reported record annual revenues and increased its dividend.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-

Contagion fears: The Dow logs its worst day since October and falls into negative territory for the year, while South Korea's KOSPI drops more than 3 per cent as the spread of the coronavirus grips global markets and the death toll reaches 100. Airline, travel and consumer stocks lead losses, while oil falls for a sixth day and the 10-year treasury yield drops to its lowest level in three months. In corporate news, Renault's board will reportedly meet today to name former Seat chief executive Luca de Meo its next CEO, as the French automaker struggles to rebuild its relationship with alliance partner Nissan. And in the U.K., British Prime Minister Boris Johnson promises a Huawei 'solution', as the National Security Council prepares to make a decision on the Chinese tech giant's part in Britain's 5G roll-out.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

A grave situation… Chinese President Xi Jinping extends the Lunar New Year holiday in a bid to hinder the spread of the deadly coronavirus, as the death toll rises to 80, while a further 2,700 people are infected. Fears rattle global markets while investors pile into safe haven assets, with 13 countries confirming cases of the infectious disease worldwide. Hong Kong and Macau has banned the entry of visitors from China's Hubei province, where the virus originated. In Italy, Matteo Salvini’s Lega party is unable to unseat the PD in a close-fought local election in the historically leftist northern region of Emilia-Romagna. And in London, the government is close to granting Huawei a restricted role in launching Britain’s 5G network, despite pressure from the Trump administration to ban the Chinese tech giant from access to the UK market.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

China on edge…the WHO has stopped short of declaring the coronavirus outbreak a global health emergency but Beijing identifies and locks down 10 entire cities as the death toll rises to 25. We are live at the close of the World Economic Forum where trade tensions between the U.S. and the EU remain front and centre but Germany’s finance minister, Olaf Scholz, tells CNBC that he is confident a deal can be agreed on free commerce and digital tax. Meanwhile, the euro falls to a seven-week low against the dollar following ECB President Christine Lagarde’s cautious outlook yesterday as she offered little insight about the central bank’s launch of its first strategy review in 17 years.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The coronavirus remains among the top concerns as Squawk Box kicks off another day of coverage from the World Economic Forum. China imposes a travel ban on the city of Wuhan, as Beijing confirms nearly 600 cases and 17 deaths from the virus. However, the World Health Organisation holds off from declaring the outbreak a global health emergency. President Trump takes the fight to Davos. U.S. Treasury Secretary Steven Mnuchin tells CNBC on a panel moderated by Geoff Cutmore that he will impose tariffs on European car companies should the UK and Italy go ahead with plans to introduce a digital tax. UK Chancellor Sajid Javid is forced to confirm that Britain will indeed roll out the planned levy in the spring, while Italian Finance Minister Roberto Gualtieri tells Steve Sedgwick that the EU will be a tough negotiator but would use more conciliatory methods than the US. We also hear exclusively from the chairman of Chinese conglomerate Fosun International, Guo Guangchang, who says conflicts between Beijin