s. the president was accused of profiting from forward spending. a federal appeals court in washington dismissed the case, saying nevers of the house and senate lacked standing to sue the president. the outbreak of the coronavirus will not stop china from eating purchase goals outlined in the recent trade deal with united states. white house economic advisor larry kudlow tells bloomberg chinese president xi jinping told president trump iphone phoneg will keep up --by beijing will keep up its end of the deal. >> he assured president trump while there might be some delays in the purchase of american exports, the job, the markers, the $200 billion over the next couple of years will be met. has: kudlow says china informally asked for exceptions to the purchasing targets, but the leaders and staff are

talking. heavy rain is drenching parts of the fire in australia. it is causing some flooding in sydney and bringing relief to firefighters dealing with dozens of glazes in new south wales. more than 40 fires are still burning in the state. 17 are not contained. the places that killed at least 33 people and destroyed more than 3000 homes. at least five people are dead and more than 300,000 homes are in the dark after a powerful storm ripped across the southeastern united states. the weather destroyed mobile homes in mississippi, alabama and florida, because mudslides in tennessee and kentucky, and flooded communities that shoulder waterways across the appalachian region. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪

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%. we have jobs data on both sides of the border. i want to take a quick drill down into canadian wage growth. this is one read, not a statistically perfect one. they 4.5% year-over-year. it takes us back to 2008. another sign that we are

starting to see signs of a little firmer wage growth. which centraler banks want to see. vonnie: on both sides of the border for sure. i'm looking at a few individual stocks but some interesting moves. one is royal caribbean. it is suggested there might be coronavirus on a cruise ship with passengers in the tri-state area being sequestered in quarantine. that is the reason behind that drop. they came up with great earnings and is up 6.3%. e of activisionl blizzard with a nice pipeline on the way. take two interactive, not so much. it is down 11%. being punished quite hard by investors today. amanda: that is the strong jobs numbers. january showing robust labor market.

u.s. payrolls up 225,000. own deployment at 3.6%. average hourly earnings is rise -- did rise. bloomberg spoke to larry kudlow who described the report as a blowout number and says as many as 6 million jobs could be added to the u.s. economy. larry: people see better job opportunities. they see retraining opportunities. they are coming out of the woodwork. the employment rate suggests if we keep marching up towards the prior peak, as i believe they will and the number suggests, you could have as many as 6 million more workers in this country ready to come back to work and join the labor rolls. amanda: for more on the state of the economy, liver economic senior u.s. economist and larry adam. great to have both of you with us.

elaina, in terms of what we are hearing, politicians like to take credit for this. headlines don't always tell the whole story. how much strength are you seeing in the data? > >> the headlight number was --bably overstating the true because of warmer than usual weather in the month of january. look at construction numbers. they were three times as large as the recent trend. if you look at the underlying trend, yes the numbers are ok. they are pretty good. they are telling us the economy will continue to do well this year. it is across the sectors. look at the service sectors. health care is leading really in terms of job growth. it is not surprising given the population in the u.s. is aging. i still see the underlying trend

in jobs numbers is relatively great. i would not call it an outstanding report. vonnie: ian jefferson makes the point that we will see the numbers snap back in february and the coming months. larry, what is your opinion on the state of the u.s. economy right now? the reserve talks about well?virus, a concern as larry: i think the state of the u.s. economy is very healthy. those jobs numbers today were very good. that was the second best job creation month we have seen over the last 12 months. what is important is it continues to further support the fact that this employment condition is healthy. if you look at the adp number, that was a blowout this week. if you look at jobless claims, the lowest in 50 years. if you look at withholding taxes, that set a record high. it's at a 5% clip

year-over-year. it's healthier than what people are giving it credit for and the economy will remain strong. it is around by what the consumer does. as far as the coronavirus, i agree that is a risk on the horizon. our expectations are if it lasts for a quarter to 100 days, you will see a bounce back in the second half of this year. if it starts the last well north of 100 days, closer to 200 days, that could have a longer lasting negative repercussions on the global economy and hit the u.s. a bit. thata: i want to ask you the contrarians will remind us employment as an indicator of recession, we see on appointment hit a low rent before recessions. full employment is the last thing to happen before the economy goes into a tank. let's step back and say that jobs data is as strong as it is. are there other signs of worry about recession in the economy

more broadly? larry: i still think those numbers are strong enough to withstand a modest softness in the economy. economist believe you need about 80,000 100,000 jobs to be created just to maintain the on employment rate where it is. the fact you're getting north of 200,000 is a pretty healthy report. i would mention those construction numbers maybe discounted because of the weather that was mild during january, but you don't have construction being done on this you have pretty good confidence in the economy. mortgage rates now are down at levels we had not seen since 2016. housing will continue to be a positive for the economy as well. vonnie: i want to ask about comments from ken griffith that the economicsat of new york. we could see rates creep higher later in the year if we are not careful.

do you see that is a remote possibility? yelena: not this year, i don't think so. eventually we will see inflation. for that we need to really reach that point at which the employment rate is below the natural level. i don't think we're there yet. there is still some slack in the economy, and the labor market. until we get there we will not see much inflation. the strong dollar will continue upsetgh on inflation and and the underlying pressures from the labor market. we appreciate both of your time. you.s to both of onlphabet is spending big cloud offerings. part of my interview with ruth porat is next. this is bloomberg. ♪

vonnie: this is "bloomberg markets." i am vonnie quinn in new york. amanda: i am amanda lange in toronto. -- sales rosers 15% in 2019, slower than the 22% pace of 2018. the stock has been on a bit of a roller coaster thanks to those numbers but it is on pace to finish the week higher. i sat down with ruth porat. we talked about how alphabet split its advertising revenue into three buckets for the first time. been i often say we have

on a journey and we have been expanding this closure over time. whether it was providing more insight into what is our geographic breakdown, are one-time run rates. we have looked at a number of changes. our view is this is helpful. we took our sites revenue and broke it into what is search and youtube. that gave everyone a slightly the trendsght into in the business. similarly i think providing the revenue for cloud, we have been investing heavily in the cloud business. really excited. we ended the year with a $10 billion run rate. we have an extra new leader it was up here this past week -- extraordinary leader who was up here this past week. we are excited about it, giving people greater insight into the momentum in that business. amanda: it seems from the numbers that the biggest growth,

the part that really fuels you is the ad business and the growth in ad revenue which is driven by data intelligence. you may have to deal with some pushback, maybe even regulations on that front. andhear of a bias in ads placement in search results. have you been thinking about how you might have been limited in that growth in that part of your business by the regulatory environment? ruth: a lot of what you see in searches context stash search is context -- search is context. we are making it better for users and helping with advertisers. --ant to go back to one of the premise on the question. one of the things we are excited about is we are continuing to invest meaningfully in search. we are investing to create other additional businesses in cloud. when we talk about the

investments we are making, whether it is in people or compute capacity, supporting the growth of momentum we are seeing in the cloud business. amanda: you obviously -- innovation is the lifeblood here. a huge investment for google. is there a concern on your part with the election coming up in the fall and strong leg was out of some candidates about the does thehere regulatory environment in pdu to do things you want to do? things youou to do want to do? ruth: there is extraordinary opportunity to the upside, but like with any technology it is imperative we focus on potential unintended negative consequences. one area i'm proud of is the breakthroughs we had with ai in the areas of health and life sciences. late last year we announced we had a breakthrough with ai and

detection of early-stage metastatic breast cancer. i had breast cancer. it was treated at an extra new hospital. not everybody gets that kind of care. the ability to use ai to actually be able to deliver the same kind of care i had is extraordinary. i spoke to my oncologist and he said the only way to democratize health care is with ai. we are looking at applications like this and saying there is such potential for it, but understand that throughout history with technology it is our responsibility to think about the negative unintended consequences. that is why a year ago we published our ai principles and why are ceo recently spoke about the value in looking out where should ai be regulated. thinking about again proportionality. let's make sure we capture the

upside while addressing what might be unintended negative consequences. that is how we are looking to approach it. we went to work with regulators to make sure we get as a society the benefit of technology while minimizing these unintended consequences. amanda: that was alphabet cfo ruth porat. vonnie: time for the bloombergquint take. -- bloomberg quicktake. already a vaccine or drugs are treated? there has never been a need. the coronavirus that emerged in china had never before been seen in humans until two months ago. why are we hearing about treatments that work? that's because doctors often try unproven drugs they think have a chance of being successful. when they see positive results, they make those public so others can try the same approach. positive results don't always

mean a treatment is effective. patients can recover on their own or see results from supportive care like rest and hydration. if health officials think a treatment is promising, they can speed of the normal approval process. the fast-track approval can drastically cut down the time to approve a drug. in the u.s., the median time period is 333 days. what are you wearing on the red carpet? this sunday at the oscars we will hear some different questions with them interaction on climate change. we will head to los angeles for that story, next. this is bloomberg. ♪

amanda: this is "bloomberg markets." stars: many hollywood made public calls for climate action.

hollywood studios fell short of aligning with those climate goals. for more insight on how the industry is attempting to hold on to some of its 30 practices, we are joined by kelly from los angeles. hollywood focuses on climate change advocacy. leonardo dicaprio being the most obvious example. what is it actually doing to make studios and filming processes more sustainable? kelly: that's true. they focus on it so much. on the ground things are little bit more difficult. one thing is we don't even know for sure what the carbon footprint of individual movies is because studios don't disclose it. but we know from on the ground evidence of how these things work, each production is a little bit like a circus with hundreds if not thousands of people moving from town to town to incorporate different settings. they have powerful lights and lots of food and air travel, and travel by car.

so much of that is powered by generators to keep things running which are incredibly polluting. studios are trying to cut down on that. it is tough because they are not many alternatives at this point. amanda: we expect to hear this on the states this weekend? kelly: i would think so. the last big hollywood awards ceremony, the golden globes, there was a huge platform for actors and actresses to talk about the australian fires that were at their peak get that point. the importance of protecting the environment. we note -- i took a tour the green room at the dolby theater. that is even climate focused. it's like a polar observation center. the idea is to remind people to protect the environment. you will probably see this featured on sunday. vonnie: what are the obstacles standing between hollywood and carbon neutrality? kelly: i think there are three things.

it is technology, lack of alternatives and costs. and also a lack of pressure. if you look at industries that are primarily in energy creation or industrial practices, they face a much pressure to limit their emissions. the signal being sent to hollywood is almost the opposite. end customers are saying give us more dazzling effects. that requires computers which run on a lot of energy. not all of it renewable. it is all those three things combined. amanda: is there a danger of politicizing something that should not be politicized? , like it or not this is a polarizing subject. kelly: it is a polarizing subject but i think hollywood itself is pretty much in agreement on the science. if you think of the people that are working on these issues at the front lines, these are mostly people that deal with

studio services and engineers. i spoke to people looking at this is a very practical problem. they say when people talk about it and raise it, it helps them get more attention. there is just more ability for them to do that job. i do think the conversation has sort of changed and people are more in agreement now that something needs to be done. and 99% of theod world's scientists are in agreement. you can catch all of our coverage on climate change at bloomberg.com. we are watching the oscars. will you be watching? netflix has spent a lot of money and has a bunch of nods, 24. the question is if this will pay off for the streaming giant. i was struck that "the irishman," three hours i will never get back. betting is is the --

they don't win anything. vonnie: i did watch it and i don't fully share your view but there were positives and negatives to take out of it. yes, netflix has been making strides. the message here is content is king. the more you make good content, the more chances you have of winning awards and someone. it's been announced they are teaming up and combining media assets with cbs all access for another streaming service. amanda: fascinating. we will be watching. you can catch all of our interviews at the function tv . ♪

mark: china has names to officials to take charge and the response to the coronavirus outbreak as the government

attempts to slow the spread of the illness. a new report says the infection has been spreading inside a wuhan hospital where patients are being treated. casesare more than 31,000 worldwide, 99% of them in china. pete buttigieg and bernie sanders will meet face to face on the debate stage tonight in manchester, new hampshire. their virtual tie and iowa sets them up as the frontrunners in the all-important delegate race. joe biden and elizabeth warren are likely to go on the offensive after disappointing performances. troopsis sending more and material to northwestern syria. the syrian government has kept up a military offensive in id lib province.