and berlin are looking to rewrite regulations to make life more difficult for wall street banks and the city of london. and the big short. steve eisman tells bloomberg he's walking away from his position on tesla. timing is everything. the stock is back below $800 today after hitting $900 yesterday. 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." ♪ vonnie: checking u.s. markets, we are getting another bounce again today. the s&p 500 up 0.75%. more than half of s&p companies reporting this quarter have already done so. no doubt, there is some of that in the pressing of the s&p 500. a little optimism for the future

of the coronavirus outbreak. the 10 year yield at 1.64%, creeping back up. crude oil holding its 3.5% gain. the dollar index is stronger. , coty is the best performer. the market will take anything, i the moment -- anything at the moment, it seems, to bounce. guy: i think the u.s. data is definitely helping head of the big payroll number friday. europe up by 1.22%. the dollar is bid pretty much across the board, and crude, as you are talking about a little while ago, certainly catching a bid today, up three point 5% on the brent contract. that's get the latest on

the coronavirus as the death toll climbs towards 500. joining us is bloomberg's sophie kamaruddin. risk assets rallying today on talk that may be the chinese are approaching some kind of cure. the who is not convinced. what do we know? progressho downplaying on the potential drug treatment and the u.k., as well as in china. who iseo--- the reviewing all potential therapeutics. china is starting to test a drug with severe cases on the mainland in clinical trials. who and its briefing said that there is no sign that china

is hiding cases, that it is sharing data, and will be making its way to the mainland soon. who also talked about using this window of opportunity not just for speculation, with each country having to decide is on travel measures, as mark government has enacted travel measures to and from china, whereas here in hong kong, we are seeing a different task played out. vonnie: we know that the last day was the worst in terms of reported cases, and the worsening of those cases. are we looking for it to get worse before it gets better? the day that there are fewer cases reported, is that the day we can breathe a sigh of relief? is concerned that there will be local transmission of cases, and that is what we have seen in hong kong. three more cases have seen local -- havens increasing seen local infections,

increasing the totals to 21. chief executive carrie lam has ordered a quarantine to all travelers from mainland. when it comes to whether or not we will have any relief, you have governments certainly on high alert, companies as well and acting their own restrictions, only have seen several companies when it comes operation, foxconn and airbus among them. guy: sophie, thank you very much, indeed. vonnie: one of the industries being hit by the coronavirus is aviation. bloomberg talked about this a ph and -- about the situation with a number of executives. here's what they have to say. to thee look back previous outbreak of sars in 2003 and h1n1, we see that

trafficthe decline in is five to seven weeks, and then there is a recovery in the following 10 to 15 weeks. >> during the incubation period, virus canhat this still be transmitted. aviation justk because there is something in the air, but it is really not a scientific fact. >> this is a crisis primarily based in china that will impact everybody, and everybody needs to take measures. it is not just about the airline industry. sometimes it can be a little bit to narrowly focused on aviation. on the globalre market moves of recent days, we are joined by marilyn watson,

blackrock head of global fundamental fixed income strategy. we have the 10 year yield move from one .70%, already considered low, all the way down to 1.624%.ow back what does it tell you -- 1.64%. what does it tell you? ilyn: it is effectively a relief rally after last week. we had pretty strong data from the adp jobs. we get the payrolls on friday. i think the market is, first of all, in terms of the virus, still focusing on it being a regional phenomenon rather than theal, and i think market is focusing on the impact on asia rather than elsewhere. vonnie: has it made a different to blackrock positioning when it comes to more local bonds? you obviously are the head of

global fundament fixed income, said you would be looking at local currencies in places in asia. would you be moving out of that because of coronavirus? paying: we are very close attention, but it is a fluid situation. treasuries have performed very well in that respect, and also in fx as well. we are looking at both sides of it, so there are some areas that will be negatively impacted, at least in the short term. in sectors such as health care, we are seeing a big rally there as well. it is a mixed picture, but we are being very active. the chinese authorities providing a lot of liquidity. do you expect that to continue? marilyn: we do, and going into the beginning of this year, we were expecting to see the pboc and the authorities continue to support the chinese economy as

it gradually slows down, but we except to see very strong growth from china. we think the pboc will probably inject further liquidity and further lower the reserve ratio requirements, and the government will do more to inject further fiscal stimulus. guy: you talk about strong growth. how much strong growth are you dissipating -- are you anticipating? some investors were saying they expect rates to increase quite dramatically. what kind of growth rate are you seeing, and is there a pivot point at which things start to get a lot more difficult, particularly in credit? marilyn: in terms of gross, going into the beginning of this year before we had an outbreak in a meaningful way, we expect to gdp growth of about 6% in china. you could expect in the short-term a negative impact on that, at least in the first quarter or two, but when you do get further stimulus coming through on the pboc, but also

from the government, i think you pattern change going into the end of the year depending on how the virus continues to spread or not. it is too early to tell. in the short-term, we don't expect too much pressure on credit, pressure on chinese debt as well. about the moment, it is a short term from ammann -- but at the moment, it is a short-term phenomenon. continued support. vonnie: before the outbreak, all of the movement in china assets was related to trade. when we do see people go back to work next week, as we are theesting, does conversation around trading china assets go back to trade in the next phase, or is it now

about the hit to global growth and chinese growth? marilyn: at the moment, the market really only focuses on one thing at a time. i think that the trade negotiations and certainly the resolution of the phase one trade deal, we might get some signs that may be china will look to postpone purchases of it hasods that agreed to do. in a way, you can expect a sort of dampening around that at the moment. all of the focus will really be on the virus. in a way, i think the fact that you have seen in the past 18 months the tension between the u.s./china trade and measures that have been put in place in the u.s., as well as china, because of this, that will help the u.s. as well. vonnie: we have a lot more to talk about. staying with us is marilyn watson of blackrock. guy: let's check on the global

markets. here with the details, kailey leinz. kailey: the global equity rally is continuing, even if it is slowing just a touch. investors waiting be possible vaccine for the coronavirus over the fact that it is indeed spreading. in the u.s., we are slightly off the highs of the session. the s&p 500 higher by just about 0.75%. note to the underperformance of the nasdaq 100. tech stocks lagging today after leading the out performers so far this week. the big drag is tesla. more in a moment. terminal atnto the gtv . if we take a look at the valuation for the s&p 500, given that the index is higher for a third consecutive day, we have seenf valuations -- we have seen valuations tick back up to the highs of the session. we area reason why

seeing gains of the might of had we saw yesterday. as of yesterday, tesla doubled givingations, but we are act some of that stock today, lower by about 13%, on pace for its worst day since 2012. there is some concern about is too that valuation high. gilead missing on concerns it has been overhyped in terms of the coronavirus. lower after a key player for that company is departing. oil issset that is up, rebounding, snapping a six day losing streak. that is giving a big lift to energy players, the best performing sector in the s&p 500. vonnie: thank you. a programming reminder, bloomberg television will have special coverage of the new hamster primaries next tuesday, february 11th -- the new hampshire primaries next

tuesday, february 11. this is bloomberg. ♪

♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." for bloomberg first word news, here's ritika gupta. ritika: president trump poised to be acquitted in the senate impeachment trial today. the process began when the house launched a formal inquiry into the president's dealings with ukraine. a big victory for pete buttigieg and a big setback for joe biden. buttigieg maintain his lead in the iowa caucuses after a second batch of results were released. bernie sanders a close second. biden finished fourth behind

elizabeth warren. he is trying to prove his ill at the ability against president trump -- prove his electability against president trump. a huge surprise in the adp employment figures for january. u.s. companies added 291,000 jobs in january, the most since 2015, and almost twice the average estimate. the government comes out with january jobs report on friday. the u.s. trade deficit frank in 2019 for the first time in 60 years. that reflects plunges in oil imports and shipment from china and gives president trump some evidence he has delivered on promises to reduce that gap. the annual deficit in goods and services fell 1.7%. 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. gupta.ika

this is bloomberg. guy: thank you very much, indeed. we are back with marilyn watson of blackrock. commodity markets and fixed income sending very different messages at the moment to the equity market. how do you square that? there's a hugek amount of money on the sidelines to be invested, and in terms of the stock market, people are looking to get involved. it is a so-called fear of missing out you are seeing in the stock market. you have had some pretty good results in terms of earnings so far. on the other hand, when you look at fixed income, we did see a modest selloff in high-yield, and elsewhere as well. we have this almost round-trip in terms of treasuries, but i think you are seeing a sort of bifurcation in terms of the risk off hedging that you see in terms of treasuries and elsewhere, and really, people

are looking to invest their money and looking at the u.s. economy, which continues to do what incredibly well. guy: is the equity market more in tune with the macroeconomic story, or is it the fixed income story? marilyn: i think when you look at the fed as well, we expect that to remain on the sideline for some time to come. we knew look at the data, we expect the unemployment rate down at 3.5%, which is incredibly low, even when you look at their own forecasts for long-term unemployment at 4.1%, which they have reduced from 4.4%. when you look at activity, we've had decent data in terms of survey results and other things. i think it is a culmination of both because you have this suppression in terms of rates from central banks around the world. financial conditions are incredibly loose, which also helps the stock market as well.

vonnie: before your career at blackrock, you were at the bank of england. did the bank of england make a mistake? marilyn: in terms of -- vonnie: not hiring you [laughter] -- not hiring you. [laughter] in mark carney not cutting rates. marilyn: when you look at data in the u.k., yes, inflation is below target, gdp growth is pretty low, but we see some pretty decent data in terms of pmi's, etc. so i think it is now a case of watch and see because we don't know what is going to happen in terms of the brexit negotiations. the market is still pricing in a cut from the bank of england, and they have that in their pocket, but there's no rush. vonnie: speaking of blackrock,

you are obviously on the unconstrained bond funds committee. what are the concerns at blackrock now? where are the corners of the bond markets globally that concern people at those meetings? marilyn: when you look at the environment in terms of bonds and rates compared to any of the previous few years, you look at most of the past two decades, it has been pretty easy to generate beta, as well as alpha. you have seen yields go down and this monetaryen policy. i think this year it is very different. we think you can get decent return from fixed income. you want to be very diversified and pay attention to the size of your trades and your hedges, and to really making sure you are having a balanced portfolio. it is a very different environment now given very low yields and negative yields in many parts of the world as well. i think being balanced and the and cognizant of the risk and reward is incredibly important.

guy: our relate cycle? -- are we late cycle? where does that tell me about where we want to be positioned in terms of the bond story? do i want to be moving up the spectrum and making life a little bit safer? marilyn: we are late cycle. this has been going on for an incredibly long, protracted period then we have seen historically. there's no reason to assume that we will have recession this year or even next. we do think it can be extended for some time to come. that being said, we just think it has an impact on where you want to be positioning yourself. in the fixed income market, we have a preference for slightly higher quality assets, for income generating assets, so rather than looking for duration , we are really looking at areas in fixed income, emerging-market

. treasuries still have a role as a ballast. but in this environment, we really are much more focused on the income generating aspect of fixed income rather than the broad beta than you can achieve. guy: you say you don't expect recession. --i just ignore curve in now curve inversions now? marilyn: i don't think you should. when you look at the whole range of structural issues at the moment, both from the huge amount of demand we see from foreign investors, from pension funds, i think given the incredibly loose monetary policy we have the moment, structurally, we are in a different environment. all of then you take fundamentals into account, maybe the signals are slightly different than you would have seen in previous cycles. to leave itave

there, but thank you for joining us. marilyn watson is head of global fundamental fixed income strategy at blackrock. this is bloomberg. . ♪

guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is the european close on "bloomberg markets." planslans to's -- merck to spin off its women's health into a new company to focus more on cancer treatment's. the business is valued at $6.5 billion. growth is being driven primarily drug thatnotherapy could soon become the biggest selling drug in the world. --igarette maker tool pop e-cigarette maker juul is efforts,up hiring

expected provide studies to the fda that is supposed to show their products' health effects on evidence on whether the appeal to kids and non-smokers. that is your latest bloomberg business flash. guy: we are counting you down to the european close. let's show you what is going on. we are definitely higher today, near session highs. the dax is outperforming today. the european auto sector goes up. we are seeing a very strong set of numbers coming through within the chip space, also downplaying fears when it comes to the coronavirus. the close is next. this is bloomberg. ♪

guy: 30 seconds until the end of regular trading in europe. a positive session. a lot of right green. germany trading higher. the italian markets up, the

spanish markets up. about it in just a moment. we are near session highs. cruising.en it has been quite a tight range since then. the volume is good. the volume is very good in europe. it was mixed yesterday, but today is strong. up 1.25%. every single sector is in positive territory. let's show you the markets and what is going on around europe. from the ftse to the dax to the cac 40, the ftse is up .6%. we are seeing laggards around europe. the dax is up strongly, up 1.49%. the cac 40 up 1%. the auto sector is trading higher. interesting that happens the same day tesla is down. story,s of the sector one sector in negative territory

, everything else in positive territory. we are seeing a bounce back in the oil price, the oil and gas sector up to .2%. the mining sector is going back. you see numbers quite good. banks are trading higher. the bottom of the market, one sector in negative territory. the telecom sector is where the drag is coming through from the london perspective. let's show you individual stock stories. tech coming out of germany trading up 10% today, over 10%. coming out with a decent set of numbers but also downplaying the coronavirus risk, which some people had concerns about surrounding some of the tech stocks. imperial brands in the london market trading down 6.64%. issuing a warning that because of unsolved vaping products they had on its books, imperial brand

suffering from that. vesta's coming out with a good set of numbers. as we continue to see the push toward more terabytes being produced and delivered in the stock rising quite nicely, up 5.22%. a good set of numbers and ahead of expectations. this holiday for european markets and as i say, delivered with decent volume. that is the european close. vonnie: pretty solid in the u.s. off our highs. the s&p 500 up when a present. more than half of the -- up .8%. more than half of the companies have reported earnings and the verdict is so far so good. the dollar index is stronger and we have a bounce back for crude oil which has been in a bear market of 2.8%. no change following the inventories that showed a bigger bill than forecast. let's look at some of the earnings. the results not as bad as anticipated.

holding company for for sake and others, the results were not fantastic, but the stock is up almost 10%. many energy companies with a nice bounce on the oil market moves. to the downside, we afford being the worst performer. it's forecast disappointed investors. of the types of challenges that the likes of tesla has been facing. we will talk about tesla in a little while. another forward earnings report spooking investors there might be a slow down ahead, then you have some of the others. chipotle is giving back some of yesterday's gains. it has been on a tear. guy: it certainly has. let's turn to a bloomberg scoop. in the post-world, eu authorities are looking to amend the post-brexit financial rulebook. ii.s called mifid

they're looking to walk back some of the concessions they have made to the u.k.. the reporter who broke the story. it feels like it is happening quickly but it is part of a bigger narrative. >> and the eu, they are starting to look at ways of changing mifid ii, anything from large changes to things london is dominant in. will roll over over the course of the year, it will take a while, but is very political. if the eu wants to change some of this, it can have an impact on whether it grants the all-important question of equivalence to london. vonnie: explained to us the open access rule and how the eu wants to change the situation. silla: this is one of those pieces of the law that matters for derivative markets. it is a question about whether

traders can trade on one exchange and clear their trades and settle them at a different company. the law, when it was passed, allow that to happen. ,n the continent in germany there was a lot of opposition to that requirement and a lot of desire to undo it and to reverse a part of the law the u.k. fought hard for. guy: in terms of equivalence and the importance of it, the eu is now setting up a move it target of regulations that will mean that equivalence becomes much for,r to gauge and plan planning for it being removed or not removed. this feels incredibly political. silla: it is definitely political. it has been political before. it is now, and it could get more political. the eu wants to hold the cards in this question about whether

big banks and others can trade and sell services in the eu from london. they want to maximize their leverage. when they start changing the law going forward, this year, next year, that gives them more leverage. what strategy should the u.k. employ, how much leverage could it have? after all, the eu economy is six times greater than the u.k., but the uk's very important to the eu in terms of a partner. silla: exactly. there is no question that eu-based financial firms, money managers, european banks, they want the ability to interact with banks and others in london. the thought that financial firms are entirely split into two camps is a misnomer. point is increasingly made in london and i expect it will

be more loudly going forward. is this attempt by the european authorities to make sure the banks that have not moved out of london yet are aware what is coming down the pipe towards them? they have a year, maybe they have or have not moved all of the resources and their clients and their people back to the eu and the way the eu would want. is this a shot across the bow? silla: possibly. the pressure has been there for a while. it has increased. european supervisors and the politicians are clear. they want more business, more people to move to new offices in frankfurt and paris, london, amsterdam. they want to see it happen quickly. they do not want to see it be a bottleneck. guy: it will be a fascinating year. the incredible 6% rally in tesla screeched to a halt.

shares of the electric vehicle falling as much as 15% earlier. a portfolio manager who bet against subprime mortgages before the financial crisis told bloomberg he is ending his short against tesla. >> everybody has a pain threshold. when a stock becomes onboard from valuation because it has dynamic growth aspects, you want to just walk away. vonnie: for more insight into what is going on in tesla, we are joined by craig trudell, who heads bloomberg auto coverage in the united states. we have had massive moves. craig: that is one of the most interesting things about today's move. one of the many contributing factors to this is morgan stanley coming out with a report where they were

talked about the idea that many of their clients that approach them to ask what is going on, and they shrugged and had no idea. there are a lot of theories, a lot of positive developments we have seen that are reasons to get excited about this stock, but to the point where it is adding $100 a day is out of control. guy: a lot of people want to get out of the stock if they were short of it. to what extent has that been overshadowing what has been going on here and do you think today will be a huge opportunity for them? whog: there are folks specialize in shortselling activity that have downplayed the idea this is a short squeeze we are seeing. sure there is a recovery going on, but it is not technically a squeeze. the amount of covering we have seen combined with the fact that elon musk is bringing ahead the product,the next big the fact that they built that plant in china so quickly and now will be able to better take

advantage of that market this year, there are a lot of things to get excited about this company, but it is all of the above with reasons you .2 for a move like this. guy: is there -- vonnie: is there something going on with auto investors? even the ford move seem to be supersized. it was down 10% because it is appointed on one earnings report? craig: it is interesting we are seeing that with tesla being down the auto stocks globally leading gains in europe today. you wonder how much cycling out of tesla into the likes of volkswagen and some of these other big carmakers that are bringing ev to market. with ford, they are getting penalized for making the mistakes elon musk has made. thathink about the model x had serious issues that took forever to get going, the model 3, as elon musk put it, they were in production help with

that car. -- production hell with that car. ford had a similar experience with the explorer suv and investors are hitting them on the head for the fact that they have been at this longer than tesla has and they should be able to figure out bringing in new products to market. musk, wouldare elon you be looking to raise money for the share price? craig: there are a lot of rumors about that and that may have contributed to a steep pairing of gains toward the end of yesterday's session. i do not know there anything to the rumors, but that was one of the criticisms level at elon did go toyear when he the markets and sought to raise more money. he did so with the shares at a lower level than a lot of his critics said it why didn't he go to markets when the stock was trading higher back when he was talking about the stock going to

$420. it is definitely -- there is reason to think that would make a lot of sense. he said on the earnings call last week that the company has no plans to do that and they think they can self sustain. if you look at the run-up they have had, you would think that could present an opportunity to take advantage. what is elon musk saying aside from the conference call? what is he tweeting? craig: he kept me up very late last night with a post about the idea of gige texas. that was the extent of his post. throwing out the idea of building a plant in texas. he calls his plants giga factories. that comes after donald trump said elon musk owes him a plant and we did not know what to make of that because he thinks every car company owes him a plant. it is interesting in light of

trump's comments a few days ago that elon would put out this post after the big gains they have had recently. vonnie: craig trudell stays up for all of the tweets and heads are bloomberg auto coverage in the united states. guy: let's check in on the bloomberg first word news. here is ritika gupta. ritika: last 24 hours saw the most grown outbreak -- coronavirus cases since the outbreak began. china has confirmed more than 24,000 cases in the death toll is now approaching 500. two planes carrying about 350 americans who fled the virus zone have landed at an airbase in california. passengers will be quarantined and the other lane is moving passengers to another military base. saudi arabia once opec and its allies to cut oil production. that has run into a roadblock from russia. delegates are in vienna

assessing the fallout from the coronavirus. as saudi's see an output cut a way to shore up falling prices but russians pushing back. lower oil prices do not affect the russian budget as much. he was the little-known mayor of a small indiana town. now pete buttigieg is claiming victory in the first test for democratic presidential contenders. he maintained his lead in the iowa caucus after second batch of results was released. bernie sanders was a close second. joe biden finished a disappointing fourth behind elizabeth warren. next up is the new hampshire primary on tuesday. vanguard became a household name by offering low-cost funds for everyday investors. now the firm is launching a private equity fund as part of a strategy to broaden its appeal as a financial advisor for larger investors. the partners will manage the private equity fund. 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.

am ritika gupta. this is bloomberg. guy: thank you very much, indeed. we are shut in europe. these are the final scores for the european indices. we did not see much action during the option but we did see the markets closing at session highs. the dax having a solid day. the auto sector a beneficiary of tesla coming down a little bit. much, but00 up not as we did see imperial brands and vodafone acting as a drag. we did see some of the mining stocks and the oil stocks like bp trading strongly. we will carry on the conversation and bring you more what is happening in the markets at the top of the hour on bloomberg radio, dab digital radio in the london area. jonathan ferro is a new york, i will be joining him in london for the cable show. 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 the stock and compare it, it is important to see how it is there is new .enu items that added 150 basis points to average checks and the last two years chipotle shares have trouble. , outpacesmance investor favorite tesla. analysts are apprehensive of a big run of shares seeing pending

target increases. more selling than buying. as far as a 2020 strategy, opening up to 160 new restaurants and continuing to grow. that is your stock of the hour. vonnie: thank you. that is viviana hurtado with our stock of the hour. coming up, it is our global battle of the charts. this is bloomberg. ♪

guy: welcome back. we have not done this for a while but it is time for our global battle of the charts. you can find these on your bloomberg at gtv . kicking things off is eric balchunas. chartwe are showing you a that is something i've never seen as an analyst. it is the historical portfolio allocation of the etf carz, the global auto etf, market cap waited etf tracking the auto industry.

tesla had a 4% weighting in that index. it is now at 20%. it is an unusual situation for i stop to increase its -- for a stock to increase its waiting that much in index. tesla now makes up as much weighting as toyota, gm, and honda combined. if you have an etf, look out for tesla to have a much bigger waiting. in the same etf's, it is taking over the situation. this is not totally unique. the big consumer discretionary etf, that took years to get there. what is fascinating and unusual is the speed in which tesla has gotten into taking over some of the etf's. about riskyou wonder management and what could potentially be happening next with that stock. nice chart. vonnie? vonnie: listen carefully, because my chart will perhaps explain why your chart exists. that is the rally.

my chart shows the rally. that is very simple in and of itself. if you compare it with the qualcomm rally in 1999, you can see we are not that close to the qualcomm rally. the qualcomm rally was much higher, much greater volume and it rose a lot further. if you think about tesla prompting mourns have give to come up with a note saying they are not sure how this will happen, you can imagine what it must've been like to the middle to the end of 1999. i want to bring up the conversation with lee ainslie of maverick capital the other night who said the current environment reminds him more of the beginning of 1999 then the end of 1999. he spoke a lot about 1999. you have to wonder if there is not an element of that as well. you can see my chart on the bloomberg at gtv . guy: there was a party that year, i think. vonnie: they partied like it was

1999. it was not actually 1999. guy: that is true. maybe there was a party that year as well. nice chart. i will give it to eric. two fantastic charts picking up on the same theme. vonnie quinn highlighting very nicely what the equity markets are signaling, but i think risk control is something etf investors want to pay attention to with the story surrounding tesla. eighting and that etf is worth watching out for. will be coming up. you can see the fantastic coverage that eric was bringing us coming up at 1:00 p.m. new york time. great coverage of what is happening. a quick look at some of the bids guest -- at some of the biggest business stories we need to be watching out for. let's kick things off with an exclusive -- an executive change at lifton.

the executive will be stepping down and be replaced by the product head. -- microsoft ceo -- microsoft bought linkedin four years ago. learned a criminal case is being built against a ofk that raises the prospect charges against j.p. morgan. j.p. morgan is not commenting. that is your latest bloomberg business flash good coming up, "balance of power." an analysis of the state of the union. ♪

david: from bloomberg world headquarters in new york to our tv and radio audiences worldwide, i am david westin. welcome to "balance of power,"

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: