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Good morning. Coronavirus cases near 100,000, OPEC takes a big gamble and U.K.-European Union talks started with some “argy bargy.” Here's what's moving markets.

100,000

U.S. stocks were crushed on Thursday, erasing nearly all the gains made the day prior, as markets remain gripped by the volatility sparked by the coronavirus outbreak. The updates of the spread continue to come thick and fast, with cases globally now close to the 100,000 mark. The U.K. reported its first death from the virus, the number of cases increased from New York to Seattle and Italy doubled the stimulus allocated to fight the problem. All of which provides a good opportunity to step back and study the numbers on an outbreak dominating conversation across the globe.

Planes and Movies

The virus outbreak has hit stocks across the board but a few sectors are more battered and bruised than others. The airline industry is facing significant pressure, creating concerns about the health of carriers and with the stress starting to seep into a safe haven of the bond market. Look also at the battering being taken by cinema stocks, already contending with the virus outbreak threatening that patrons will stay away and now having to process that blockbuster releases set for earlier in the year could be pushed back, pointing to a potentially fallow period for the industry until the virus is brought under control.

Crude Gamble

OPEC is taking a significant gamble. At the end of the first day of its meeting in Vienna, the cartel recommended a larger oil output cut than had been initially discussed and for a longer period of time, all before securing the backing of Russia. If Russia doesn't agree to the cut, OPEC will scrap the plan to trim output altogether, a move that would almost certainly cause crude prices to crash. It's a high-stakes move in an oil market battered by virus-sapped demand, and one that caused Saudi Aramco to delay announcing its monthly crude pricing with the market in limbo.

Divergences

The first week of talks between the European Union and the U.K. on their future relationship ended with four key issues responsible for the “serious divergences” described by Michel Barnier, the EU's chief negotiator. The disagreements are around competition, justice policy, fishing and the overall structure of a deal, while Barnier also rebuffed a push by British negotiators for a speedy agreement on giving U.K. banks access to the single market. EU Trade Commissioner Phil Hogan, however, said he was optimistic on the talks once the “argy bargy” which characterized the first exchanges was out of the way. 

Coming Up…

Stocks in Asia followed the U.S. lower and European stock futures indicate it will be another big selloff when trading starts. Pay close attention to sovereign bonds, where yields keep hitting record lows in an indication that the world has re-entered crisis mode. Another safe haven, gold, continues to rally too. It is much quieter in terms of earnings but the closely scrutinized U.S. payrolls report for February is on the slate later in the day, before which German factory orders will be reported.

What We've Been Reading

This is what's caught our eye over the past 24 hours. 

• JPMorgan boss Jamie Dimon had emergency heart surgery.
• A hedge fund star bans staff from London's tube.
• The awkward ambition of elite British private schools abroad.
• 2020 is the year of the noodle.
• Deadly bridges expose Italy's toxic red tape and self interest.
• European banks store their sensitive data on American clouds.
• The homeless man who built himself a bunker in London.

To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net

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