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Airlines cut China flights as companies restrict travel on virus fears | The coronavirus that originated in the city of Wuhan has killed 106 people in China and spread across the world, rattling financial markets.
The United States warned that Americans should reconsider visiting China, while Britain advised against all but essential travel to mainland China. South Korea also advised its citizens to stay away.
Facebook Inc became the first major U.S. company to announce a travel suspension after the U.S. government's warning, saying it had asked employees to halt non-essential travel to mainland China and to work from home if they had traveled there.
Chicago-based United said it was suspending 24 U.S. flights to Beijing, Hong Kong and Shanghai between Feb. 1 and Feb. 8 due to a significant drop in demand.
Europe's biggest bank, HSBC Holdings PLC, banned all staff travel to Chinese-ruled Hong Kong for two weeks and to mainland China until further notice, according to an internal memo seen by Reuters.
The British-based lender, which has the largest presence among foreign banks in China, also asked staff who have recently visited the country to undergo a self-imposed 14-day quarantine. The virus has an incubation period of up to 14 days.
U.S. rival Goldman Sachs Group Inc imposed similar measures, according to a memo seen by Reuters.
In South Korea, home appliances maker LG Electronics Inc put a complete ban on travel to China and has advised employees on business trips in the country to return home as quickly as possible, a company spokeswoman said.
South Korean chipmaker SK Hynix Inc said it was urging employees to avoid all non-essential travel to China, while banking group Standard Chartered PLC restricted travel to both mainland China and Hong Kong.
In Germany, auto supplier Webasto, which has 11 sites in China, including in Wuhan, has halted all corporate travel to and from China after an employee was infected.
Japan's Honda Motor Co Ltd said it recommended employees avoid travel to China, while Nissan Motor Co Ltd said it plans to evacuate its Japanese staff and their families in Wuhan via a government-chartered flight.
FALLING TRAVEL DEMAND
Aside from United, other airlines said they were adjusting schedules as companies reassessed the risk of travel to China.
South Korean budget carrier Air Seoul said it will halt all flights to China, while Taiwan's China Airlines Ltd rescheduled and canceled some flights to China to Feb. 10.
Taiwan's Eva Airways Corp also said some flights to China may be canceled.
Air Canada said it was cancelling some of its 33 weekly flights to China, and Germany's Lufthansa pointed to subdued bookings to and from the country.
Hong Kong's Cathay Pacific Airways Ltd said it would be progressively reducing capacity to and from mainland China by 50% or more from Jan. 30 to the end of March, in line with a government directive as well as market demand.
International SOS, a medical and travel security services firm that advises companies on travel, said its guidance for now was that business travel to China outside Wuhan's province of Hubei could continue.
But this could be updated if there were major flight cancellations throughout China and more disruptions to ground transport, International SOS Regional Security Director James Robertson said.
( Reporting by Josh Horwitz in Shanghai, Heekyong Yang in Seoul and Tracy Rucinski in Chicago; Additional reporting by Engen Tham in Shanghai, Sumeet Chatterjee in Hong Kong, Jamie Freed in Sydney, Naomi Tatjitsu in Tokyo, Ben Blanchard in Taipei, Joyce Lee in Seoul and Allison Lampert in Montreal; Writing by Jamie Freed and Lawrence White; Editing by Rosalba O'Brien and Christopher Cushing)
By Tracy Rucinski, Josh HORWITZ and Heekyong Yang | business |
Coronavirus: China travel restrictions will hit Asian economies | Economies in Asia will have to brace for a tough year ahead as China deals with an outbreak, analysts and officials warned as travel restrictions hit.
China has halted all group tours both domestically and to other countries to contain the spread of a new coronavirus that was thought to have originated from the central Chinese city of Wuhan in Hubei province.
By the end of Monday, there were 4,515 confirmed cases of the coronavirus, China's National Health Commission said in a notice. The death toll was 106.
Coronavirus are a large family of viruses that includes the common cold and SARS, the epidemic which killed almost 800 globally in an outbreak from 2002 to 2003.
The new coronavirus strain called `` 2019-nCoV '' is believed to have an incubation period of two to 14 days, according to the U.S. Centers for Disease Control and Prevention.
Halting group tours from China has sent a wave of cancellations across the travel sector, with booking platforms and travel agents issuing refunds to customers.
Trip.com, China's top online travel booking platform has set up a $ 200 million disaster relief fund to refund customers who have already paid for travel packages but who now can not travel due to restrictions, said Jane Sun, the CEO of the company.
It's `` not only our company, the whole country will take a hit, '' said Sun.
But there were already multiple cases of the coronavirus outside of China, ahead of the peak Lunar New Year season which started on Jan. 25.
Countries that have confirmed cases of the new coronavirus include Thailand, Vietnam, South Korea, Singapore, Malaysia, Japan, Australia, France and the United States.
The outbreak will hit Asia Pacific economies, particularly in retail, restaurants, conferences, sporting events, tourism and commercial aviation, said Rajiv Biswas, Asia Pacific chief economist at IHS Markit.
`` The rapid rise in household incomes in China has triggered a boom in Chinese tourism visits abroad, which have risen from 20 million in 2003 to 150 million in 2018. Consequently the vulnerability of many Asia-Pacific economies to a slowdown in Chinese tourism visits has increased significantly over the past two decades, '' said Biswas in a note on Tuesday.
`` Over the past two decades, the rapid economic growth of China has made it a key export market for many Asia-Pacific nations. However, China's growing importance in Asia-Pacific trade and investment flows has also created considerable vulnerability for the Asia-Pacific region from this type of unpredictable 'black swan ' event currently hitting the Chinese economy, '' said Biswas.
Thailand, Japan and Vietnam are among the economies that will be hit by the new Chinese travel restrictions and sharp near-term slowdown in Chinese tourist visits, Biswas said.
He said Thailand has been one of the `` most notable beneficiaries of the boom in Chinese tourism, '' with total annual Chinese tourist visits rising from 2.7 million in 2012 to 10.5 million in 2019. Chinese tourist spending in Thailand was estimated to have reached $ 17 billion in 2019.
The Tourism Authority of Thailand is meeting with the private sector on Tuesday to address concerns from an expected slump in business, the Bangkok Post reported.
Japan's services industry is also getting hit by a rash of trip and hotel cancellations, the Nikkei Asian Review reported.
The country is a top vacation spot and IHS ' Biswas noted that total Chinese tourist visits to Japan hitting 9.6 million in 2019, accounting for 30% of total foreign tourist visits.
Meanwhile, Chinese tourism arrivals accounted for one-third of international visits to Vietnam, and 15% of total international tourist visits to Australia.
Biswas said governments in Asia Pacific are likely to respond with a range of fiscal and monetary policy stimulus to prop up near-term growth.
Singapore's Trade and Industry Minister Chan Chun Sing said the outbreak is expected to affect the economy of the city-state, Reuters reported. The government is considering support measures like worker levy cuts for impacted sectors like tourism, Chan reportedly said.
It will be another few weeks before the impact of implemented public health measures can be assessed, due to the incubation period of the virus, said Paul Tambyah, a professor at the NUS Yong Loo Lin School of Medicine.
`` In order to stop a virus from spreading, you got to isolate everybody who's sick. You need to find every case, isolate them, make sure they don't spread it to anyone else and then, you can stop the epidemic, '' Tambyah told CNBC.
Tambyah said there was no need for the general public to avoid travel to anywhere outside of China right now as there has been no evidence of local transmission elsewhere. But, be sensible.
`` If you're sitting beside someone who's hacking away, maybe you should move away or put on a mask, or use an extra dose of hand sanitizer. And if you do get sick, then you should see your doctor, '' said Tambyah.
Trip.com's Sun said she was hopeful that the measures the Chinese government has implemented will help contain the outbreak in weeks and send pent-up demand back up once the virus is under control — just like what it was in 2003.
`` When the SARS was under control, we saw double or triple the demand coming back very strongly, '' said Sun, adding it was the same with Chinese GDP growth. | business |
Elizabeth Warren releases public health plan amid coronavirus outbreak | Democratic presidential hopeful Elizabeth Warren on Tuesday outlined the steps she would take to prevent and contain infectious diseases, as authorities across the globe race to address the new coronavirus.
Warren's plan, released less than a week before the Iowa caucuses, calls for increased public health funding for agencies including the Centers for Disease Control and Prevention and the Department of Health and Human Services.
The coronavirus, a flu-like respiratory infection which was first diagnosed last month in China and has been found in the United States, has killed more than 100 people and sickened more than 4,500, Chinese health authorities said Tuesday. The State Department is advising U.S. travelers to reconsider travel to China. On Monday, major U.S. stock indexes the Dow and the S & P 500 suffered their worst days since October.
Warren's infectious diseases plan also draws on her previously released plans to address climate change and the opioid epidemic, issues which exacerbate the spread of diseases, as well as her health-care agenda.
The Massachusetts senator wrote that her health-care plan, `` Medicare for All, '' will remove financial barriers for patients who may be contagious.
`` We can invest at home to ensure our public health agencies, hospitals, and health care providers are ready to jump into action when outbreaks strike, '' Warren wrote. `` And we can help build strong public health systems abroad. ''
The plan comes just days before the first delegates are awarded in the Democratic primary contest. Iowa hosts its caucus on Feb. 3, a contest that is traditionally seen as shaping the contours of the race.
Read more: Coronavirus vs. SARS: Health experts on the key differences between the two outbreaks
Warren has declined in Iowa and national polls in recent weeks as her progressive rival, Sen. Bernie Sanders, I-Vt., has gained momentum. She is in third place in national polls and in fourth place in Iowa, behind Sanders, former Vice President Joe Biden and former South Bend, Indiana, Mayor Pete Buttigieg.
The top four candidates have struggled to gain an edge in the race's final weeks before voting begins. For senators like Warren and Sanders, the difficulty has been compounded by President Donald Trump's ongoing impeachment trial in the Senate, which has kept the lawmakers in Washington and away from voters in the early states.
Warren took on a number of Trump administration policies in her new plan, saying his approach so far has been a `` mess. '' She said that Trump has tried to `` nickel and dime '' federal programs geared toward public health and eliminated the position that coordinates global health security, which former President Barack Obama created in response to the Ebola epidemic.
`` As President, I will bring it back, with a formal senior lead in my White House who focuses solely on global health security and oversees this work across the entire federal government, '' Warren wrote.
The plan also calls for the U.S. to contribute to a number of international efforts, including a global vaccine alliance. Warren will also establish a `` global health security corps, '' she wrote, to handle outbreaks in regions that are experiencing conflict, following the recommendation of a commission established by Center for Strategic and International Studies, a Washington think tank.
`` Diseases like coronavirus remind us why we need robust international institutions, strong investments in public health, and a government that is prepared to jump into action at a moment's notice, '' Warren wrote in the plan. `` When we prepare and effectively collaborate to address common threats that don't stop at borders, the international community can stop these diseases in their tracks. '' | business |
3M forecasts 2020 profit below estimates on weak China demand | Shares of the company, which draws a third of its revenue from Asia, fell 4.2% and were the biggest drag on the Dow Jones Industrial Average in morning trading.
Sales in Asia-Pacific region, its largest market outside the United States, fell for the fifth straight quarter, weighed by softness in China's automotive and electronics sectors, a reason that had forced 3M to cut jobs and production last year.
The company said it would cut 1,500 jobs as it continues to restructure its businesses and reduce costs.
China, the world's second largest economy, grew at its slowest pace in almost three decades in 2019 amid a trade war that hit factory production, while auto sales slumped for the 18th straight month.
`` We were looking at a sluggish start to China in first quarter... based on automotive, and the build rate's expected to be down mid-single digits and maybe even high single digits, '' Chief Executive Officer Michael Roman said in an post earnings call.
Executives, however, said the company was ramping up production of its respiratory protection products to match global demand arising from coronavirus outbreak in China.
Asia-Pacific sales were down 1.7%, while Europe, Middle East and Africa reported a decline of 2%. Sales in the United States rose 7.4%.
`` We expect investors to generally be disappointed with the print, guidance and the new PFAS-related charges, while rapidly advancing Coronavirus concerns ultimately could pull the rug out from under the Asia recovery story, '' Gordon Haskett analyst John Inch said.
3M recorded a $ 214 million writedown for litigation related to PFAS chemicals.
Sales at its healthcare unit, which accounted for 25% to total revenue, rose about 25.4% on strength in international markets.
3M said it expects 2020 earnings per share to be between $ 9.30 and $ 9.75, the midpoint of which was below analysts ' average estimate of $ 9.61 per share.
Net income attributable to 3M fell 28% to $ 969 million, largely due to restructuring and litigation charges.
On an adjusted basis, it earned $ 2.15 per share, beating expectations of $ 2.10, according to IBES data from Refinitiv.
Net sales fell 2.1% to $ 8.11 billion and missed expectations of $ 8.12 billion.
( This story corrects paragraph 12 to say the midpoint of 2020 earnings forecast was below Wall Street estimates, not above)
( Reporting by Rachit Vats in Bengaluru; Editing by Sweta Singh and Arun Koyyur)
By Rachit Vats | business |
Novacyt S.A.: Full Year Trading and Operational Update | Regulatory News:
Novacyt ( EURONEXT GROWTH: ALNOV; AIM: NCYT), an international specialist in clinical diagnostics, announces its unaudited revenues for the year ended 31 December 2019 and provides an operational update. The Company will report its full year results in April 2020.
Graham Mullis, Group CEO of Novacyt, commented:
“ I am encouraged that last year we completed the disposal of the two non-core businesses and also completed a major restructure of the balance sheet to provide much needed working capital. Despite working capital constraints, which impacted most of 2019, we demonstrated significant levels of growth in key parts of the business and continue to see increasing demand for our products. I look forward to growing the business from a stronger financial position in 2020. ”
2019 Trading Update
The Company announces that year end revenues from continuing operations will be approximately €13.1m, a reduction of 5% ( 6% CER) on a consolidated basis compared to 2018. Excluding the Clinical Lab, which was sold in July 2019, revenue reduced by 2% ( 3% CER). As previously announced, trading was impacted from the second quarter of 2019 onwards due to working capital constraints. Long manufacturing lead times meant that it was challenging to achieve any significant recovery in the last few weeks of 2019 given that the financing was only completed in November 2019. With the lower trading, management now expect the full year EBITDA to be lower than the prior year.
The Company has started 2020 with an order book significantly higher than at the same time last year. Lab21 Products had confirmed orders of €1.6m at the end of the year. Of these orders, €1.3m could not be delivered due to working capital and supply chain issues and are expected to be fulfilled during the first half of 2020.
Since the announcement of a new term loan and cancellation of the convertible bond facility in November 2019, Novacyt has started to invest funds in the recovery of its supply chain. The Company expects that it will take most of the first half of 2020 to fully restore manufacturing output and stock to normal levels.
Core reagent sales across the Group grew by 3% year-on-year, with Primerdesign delivering 8% higher reagent revenues. Primerdesign also achieved international revenue growth of 12% despite restricted q16 instrument sales due to lack of stock. This strong international performance was largely offset by weaker sales in the smaller UK direct market ( down 13%) following a restructuring of the commercial team in the second quarter of 2019. Microgen Bioproducts sales, part of the Lab21 Products business were also strong despite the continued stock shortages, as demonstrated by the UK and Ireland direct sales increasing by 13% and Middle East sales increasing by 8% on the prior year.
The discontinued NOVAprep® operation achieved sales of €1.3m, which are excluded from Group consolidated revenue and do not impact the growth metrics stated above. These sales were generated before the sale of the business in December 2019 and represent 37% growth compared to the prior year which helped the division deliver positive cash flow for the Group in 2020, with a significant net cash contribution of €0.7m in the second half of the year.
At 31 December 2019, the Group held cash and cash equivalents of €1.8m ( 2018: €1.1m).
Operational update
Development of new coronavirus test
Primerdesign is pleased to report that it is in the final stages of developing a new molecular novel coronavirus ( 2019-nCoV) test as a direct response to the recent outbreak of the potentially deadly respiratory virus in China. The Company will make the test available as a research use only ( RUO) test for use on Primerdesign’ s proprietary genesig® Q16 and Q32 instruments, as well as a number of other real-time PCR instruments commonly used in testing laboratories. A number of Novacyt’ s customers have already enquired about the availability of this test and orders have already been received.
This virus is of major concern as it is from the same family of viruses as severe acute respiratory syndrome ( SARS), which emerged in China in 2002 and killed nearly 800 people worldwide. Authorities have recently confirmed that the virus can be passed from person to person via airborne transmission sparking concerns over the level of contagion. The World Health Organisation ( WHO) reported that, as of 22 January, countries including the US, Singapore, Australia, Japan, Thailand and Korea are reporting the presence of this infection. The virus is not currently considered a global health emergency as designated by the WHO but this may change as more data becomes available. The Primerdesign test is therefore well positioned to quickly assist affected countries.
Manufacturing site consolidation
Following the successful sale of two non-core businesses in 2019, and as part of the strategy to increase profitability, the Company will close its manufacturing facility in Bridport and transfer production to its Camberley site by the end of the first quarter of 2020.
In addition to the overhead savings that the consolidation of operations is forecast to deliver, management is confident that this relocation will also deliver additional operating profit to the Group.
Following the site consolidation, Novacyt will operate from just two sites in the UK based in Southampton and Camberley.
Outlook for 2020
In 2020, management will continue to focus on increasing gross margins and EBITDA profitability while carefully managing working capital to restore stock levels and deliver sustainable revenue growth. The planned overhead savings will not only improve profitability but extend the Company’ s cash runway and enable further investment in rebuilding the supply chain, which is expected to be completed by the middle of 2020.
Further cash could be generated in the first half of the year from the sale of the residual NOVAprep® assets, which would provide further working capital. Negotiations are currently underway with various parties to sell the remaining instruments and also some of the residual IP following the successful sale of certain assets to Algimed Trade Ltd in December 2019 for €0.4m plus royalties.
Following the successful disposals of the Clinical Lab and NOVAprep® assets and the completion of the financing in 2019, management is focused on driving core business sales growth and profitability in 2020. The year starts with a strong sales order book, new business ( VGS Group) and a strong pipeline of new customers for the recently launched PathFlow™ product range in infectious diseases.
This announcement contains inside information for the purposes of Article 7 of Regulation ( EU) 596/2014. | business |
Stock market live updates: Dow up 220, Apple leads way, Amazon correction | This is a live blog. Check back for updates.
The Dow Jones Industrial Average ended the day up 187 points, or 0.7%. It was a solid showing, but the average closed far off its highs as the coronavirus fears linger. The Dow was up 287 points at its high of the day. Still, the rally represented a nice comeback from Monday's 454-point decline. Apple, Intel, and Microsoft were the top performers in the average.— Melloy
With roughly one hour of trading left, the major averages were on pace to post solid gains and recover some of the lost ground from the previous session. The Dow is up more than 200 points, or about 0.8%. The S & P 500 and Nasdaq are both up more than 1%. Tech and financials have been the leaders of this rally, with Apple and Goldman Sachs driving the Dow's gains. —Imbert
Oil caught a bid Tuesday, ending the session in positive territory for the first time in 5 days. The coronavirus-related sell-off saw prices sink to more than 3-month lows and pushed oil into bear market territory. U.S. West Texas Intermediate crude gained 0.6% to settle at $ 53.48. In addition to strength in the overall market -- the Dow surged more than 200 points -- oil prices were supported by speculation that OPEC would step in if necessary. According to a report from Reuters, OPEC officials were considering extending the production cuts that are currently in place. Additionally, production in Libyan has fallen almost 75%, according to Reuters, as production facilities in the country continue to be blockaded. Tuesday's move higher only makes a small dent in total losses, however. WTI is down more than 12% this month, while international benchmark Brent has shed just shy of 10%. —Stevens
The Federal Reserve concludes its two-day meeting Wednesday with an almost certainty that it will not change interest rates. There are, however, some other big items on the central bank's plate. For one, there's the coronavirus, with both its human toll and potential ramifications on China's economic growth. There's also consideration over the Fed's repo operations and how the market has taken the balance sheet expansion as another form of quantitative easing. Finally, the Fed may decide to raise the interest it pays on excess bank reserves in an effort to lift its benchmark funds rate. `` At best, they can be patient and wait and see and stay to their original script, which is 'we're on hold this year, ' '' said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management. `` If they alter the script, I do think markets are going to be concerned. '' – Cox
Stocks are now at session highs, led by Apple. The Dow is up about 280 points, making back more than half of its 454-point loss on Monday. Apple is now up almost 3% before earnings after the bell. Apple is also now almost in the green for the week, after falling Monday on fears the coronavirus would hurt sales and production in China. —Melloy
Pfizer's stock is down more than 5% because of a miss on the bottom line of its quarterly results. The pharmaceutical giant reported earnings of 55 cents per share, compared with the 58 cent per share expected, according to Refinitiv. The company said part of the miss was due to a loss of exclusivity for one of its key pain drug, Lyrica. Pfizer is the most actively traded stock in the U.S. right now, with more than 44 million shares switching hands, compared to the 30-day trading average of 19.6 million shares. Pfizer's 2020 outlook came roughly in-line with estimates. The company expects to earn between $ 2.82 and $ 2.92 per share and post revenue between $ 48.5 billion and $ 50.5 billion. –Fitzgerald
Factories in China a
nd Southeast Asia could be disrupted by the coronavirus for half a year, according to Sourcify CEO Nathan Resnick. `` All of our employees are staying home. We know through our factory partners that they're telling their employees to stay home … There's going to be trickle-down effects in everyone's supply chains for, I would estimate, six months, '' Resnick said on `` The Exchange. '' Sourcify is a platform that helps companies source products from overseas factories. Resnick noted that China has many raw materials factories, so supply chains outside the country could be impacted by the spread of the flu-like virus. - Stankiewicz
Stocks may be rebounding Tuesday, but the S & P 500's performance during past epidemics suggests the market could have more to lose. Going back 20 years, previous epidemics from SARS in 2003 to the Ebola scare six years ago resulted in 6% to 13% losses in the S & P 500 over different lengths of time, according to Citi. Many medical experts have compared the coronavirus to the SARS, which lasted 38 trading days and led to a 12.8% sell-off in the benchmark. Read more on stocks ' reaction to past virus scares here. —Li
Although earnings season is in its early stages, Bank of America said executives on post-earnings conference calls haven't sounded this bullish since the end of 2017, when Trump passed the Tax Cuts and Jobs Act. The quantitative analysis looks at mentions of words such as `` better '' or `` stronger '' vs. `` worse '' or `` weaker '' on earnings calls. `` Optimism is also building, with 47% of reported companies so far expressing optimism, again the highest level since 4Q17, '' the bank said. —Fitzgerald
Shares of Apple are up 2.5% Tuesday as investors prepare for the tech company's first quarter earnings report after the bell. Morgan Stanley analyst Katy Huberty said in a note to clients this morning that she thought Apple's stock would move higher in anticipation of 5G iPhones expected later this year, but that a strong result out of today's earnings report was more likely to come from the company's wearables segment. The stock is up more than 100% in the past 12 months, but Evercore ISI analyst Amit Daryanani said in a note that, `` the trifecta of – better services growth, wearables acceleration and iPhone 5G cycle tailwinds '' will power the stock even higher. —Pound
U.S. stocks are jumping in midday trading, making up some of the lost ground from Monday's session, which was the worst of the year. The Dow is up more than 200 points, while the S & P 500 and Nasdaq Composite are both trading around 1% higher. However, worries over the coronavirus remain in the market. `` The wall of worry is back under construction, '' says Terry Sandven of U.S. Bank Wealth Management. —Imbert
CNBC's Jim Cramer said on `` Squawk Box '' that there were too many unknowns about the coronavirus to be a buyer in the stock market. The market could take another dip if the World Health Organization declares the outbreak a global emergency, Cramer said. `` I just think you're coming in on quicksand here, '' Cramer said. — Pound
United Airlines shares, which have been volatile all day, are back into the red slightly after CNBC's Eamon Javers reported that the White House is discussing China travel restrictions amid the coronavirus outbreak. However, no final decision has been made. Shares of American Airlines and Delta remained higher, however. The broader market fell slightly off its highs on the news. —Melloy
Market has moved to the highs of the day. No headlines appear to be driving the gains, instead it looks like accelerating gains in names like Apple, JPMorgan Chase and Goldman. Apple is up 1.9%. Note that Apple is still down more than 1% for the week, however. —Melloy
Shares of Amazon briefly fell into correction territory on Tuesday after declining more than 10% from the stock's 52-week high in July. The stock rebounded and was last slightly higher. Wall Street is still bullish. In a note to clients Tuesday Morgan Stanley analysts said that the company's `` reacceleration since the launch of Prime Free One Day delivery and its record Holiday season could portend a new wave of retail disruption, '' and that they're keeping a `` close watch on Q4 results for signs of fresh AMZN inroads. '' –Stevens, Francolla
Wynn Resorts, one of the stocks that took the hardest hit from the coronavirus, gave up premarket gains of nearly 2% and was last down more than 1%. The stock has tanked 14% in the past week. Another casino company Las Vegas Sands also dipped slightly. Airlines came back a tad after days of selling off, with American Airlines up 1% and Delta and United Airlines both rising slightly. —Li
January consumer confidence from the Conference Board came in at 131.6, much higher than estimates. The reading gave a slight boost to the market, with the Dow now up more than 100 points again, though still short of the highs of the day. —Melloy
Stocks couldn't follow through on the strong open. News that the CDC was advising Americans avoid travel to China is not helping the market's attempted rebound. 3M down nearly 5% is also holding back the market. The Dow was up 119 points at its high and is up 95 points now. On the positive side, market breadth is healthy with advancers outpacing decliners on the NYSE by nearly 3-to-1. —Melloy
JP Morgan economists said they boosted their forecast for fourth quarter GDP growth to 1.7% from 1.6%, after an upside surprise in inventories in the December durable goods report.Durable goods was a mixed bag. Headline orders rose 2.4% and were better than expected. But Boeing took a bite out of orders, with nondefense aircraft down 75% in December, at the lowest level since 2009. But the government made up for it with a surge in defense aircraft orders, which were up almost 170%.The government releases Q4 GDP data on Thursday. -Domm
The Dow rose 100 points at the open, while the S & P 500 and Nasdaq Composite were also higher, rebounding from a big sell-off Monday. However, 3M and Harley-Davidson fell 2.6% and 4.1%, respectively, on disappointing quarterly results, capping the gains in the broad market. The Dow as last up about 70 points. —Li
The Dow plunged more than 450 points Monday on heightened coronavirus fears, suffering its biggest one-day fall since October and wiping out the average's gains for the year. However, the pullback was not on unusually heavy volume, perhaps suggesting less conviction, Matt Maley, chief market strategist at Miller Tabak, pointed out. `` The market gapped lower on the opening, so it was not forced lower by selling, '' said Maley. He noted the trading volumes were slightly more than 3 billion shares Monday, which was not a big jump from an average Monday. —Li
Shares of the motorcycle company fell more than 6% in premarket trading on Tuesday after a big miss on revenue for its fourth quarter earnings. Harley-Davidson reported revenue of $ 874.1 million, falling short of estimates of $ 920.1 million, according to Refinitiv. The company also issued weaker-than-expected revenue guidance for the new year. Harley-Davidson expects to post sales between $ 4.53 billion and $ 4.66 billion in 2020, while analysts forecast annual revenue of $ 4.65 billion. 2020 is a `` pivotal year '' in the transformation of the company as it tries to `` build the next generation of Harley-Davidson riders, '' the company said. Earnings per share came in a 20 cents, topping estimates of 9 cents per share. -Fitzgerald
Some of the largest funds that track the performance of Chinese stocks closed in correction territory on Monday as fears over the impact the coronavirus could have on business grew. Major exchange-traded funds including the iShares China Large-Cap ETF and the iShares MSCI China ETF closed down 11.5% and 10% from their respective 52-week highs on Monday. The MSCI China fund's dive into correction comes just days after it hit a 52-week high on Jan. 13. — Franck
Shares of 3M are down more than 2% in the premarket after the manufacturing giant posted weaker-than-forecast results for the previous quarter. The company posted a profit of $ 1.95 per share on revenue of $ 8.11 billion, both of which are below analyst expectations. Investors also sold the stock after the company announced a new round of job cuts. Shares of 3M are the second-worst performers in the Dow over the past 12 months. They are down more than 9% in that time. —Imbert
Shares of auto supplier Delphi Technologies jumped more than 15% in Tuesday's premarket trading after BorgWarner announced that it will acquire the company in an all-stock transaction valued at $ 3.3 billion. A press release said that the acquisition will strengthen BorgWarner's `` power electronics products, capabilities and scale. '' Delphi Technologies was one of two companies spun out of Delphi Automotive in 2017. The other was Aptiv, which focuses on tech systems in cars. — Stevens
United Technologies delivered fourth-quarter earnings of $ 1.94 a share, better than the $ 1.84 analysts surveyed by FactSet expected. But shares slipped 1.3% in premarket trading as United reported its aerospace division would face `` an estimated headwind of approximately $ 550 to $ 600 million resulting from the 737 MAX '' in 2020. The industrials giant also told shareholders it would forecast year ahead earnings and cash flow once its acquisition of Raytheon is complete. —Sheetz
Despite Apple's plans to ramp up iPhone production in the first half of 2020, its suppliers are warning that the rapid pace of production could be derailed by the outbreak of the coronavirus in China's Hubei Province, the Nikkei Asian Review reported Tuesday. Apple has asked its Asian suppliers to make up to 80 million iPhones in the first half comprised of 65 million of its older iPhones and up to 15 million of a less-expensive model it plans to unveil in March, according to the report. However, the mass production that's scheduled to begin in late February might be delayed due to the virus outbreak, the Nikkei reported. Apple is set to report first-quarter earnings Tuesday afternoon after the closing bell. Shares were up 1.1% in premarket trading. —Franck
The 3-month Treasury bill yield was briefly higher than the 10-year yield in the early morning hours New York time.The coronavirus has set off a stampede into 10-year Treasurys as investors seek a safe haven, and the yield touched a low of 1.57%. It was at 1.63% as stock futures rebound Tuesday morning from Monday's selling. The inversion of the yield curve is sometimes an ominous sign of a coming recession, but the yield curve had inverted last year and steepened again as investors were cheered by improved trade relations between the U.S. and China. —Domm
Britain said Tuesday it will allow Chinese telecom giant Huawei to play a limited role in its next generation 5G mobile networks, defying pressure from the U.S. The news sparked a rally in U.S. semiconductors that supply chips to their big customer Huawei. The VanEck Vectors Semiconductor ETF, which includes the top S & P 500 chipmakers, rose 1.5% in premarket. Micron and AMD are both up nearly 2%, while Nvidia, Broadcom and Qualcomm climbed 1% each in premarket.—Li
Travel companies affected by the deadly coronavirus are bouncing back along with the broad market after a deep sell-off since last week. Shares of Wynn Resorts, one of the hotel and casino stocks that took the hardest hit because of its Macau exposure, are up nearly 2% in premarket. Airlines Delta and United Airlines both climbed almost 1%, while Carnival Cruise Lines also rebounded 1.2%. —Li
Wall Street is trying to rebound from its worst session since October, with U.S. stock futures trading higher. Dow Jones Industrial Average futures are up more than 140 points, while S & P 500 and Nasdaq 100 futures pointed to solid opening gains. On Monday, the Dow dropped more than 450 points and wiped out its gains for the year as coronavirus fears deepened. But while futures pointed to a decent start, not everyone is ready to look past the coronavirus fallout. CNBC's Jim Cramer said in a tweet: `` I wouldn't trust the market until the future are down, perhaps dramatically to flush out those who think the virus is unstoppable. '' —Imbert
—With reporting from Tom Franck, Michael Sheetz, Pippa Stevens, Maggie Fitzgerald, John Melloy, Jesse Pound, Kevin Stankiewicz, Jeff Cox. | business |
China virus turns Macau into gambling ghost town | The local government late on Tuesday said it would curb its individual visit scheme through which visitors gain entry from mainland China, days after it suspended inbound package tours. Since Friday, arrivals have dropped 69%, latest figures showed.
The steps come as deaths from the coronavirus reached 132 in China on Wednesday with 1,500 new cases. The flu-like virus emerged late last year in the eastern city of Wuhan and cases have since been reported worldwide including seven in Macau.
The virus has added to concerns in the former Portuguese colony over the impact of a slowing Chinese economy and anti-government protests in neighbouring Hong Kong.
However, the outbreak also coincides with the Lunar New Year holiday during which Macau seasonally enjoys record visitation, prompting analysts to forecast a decline in gaming revenue of at least 30% for as long as visiting restrictions are in place.
Casino operators ' share prices plunged on Wednesday, by as much as 6% for MGM China Holdings Ltd, 5.7% for Sands China Ltd, 4.8% for Wynn Macau Ltd and 4.7% for Galaxy Entertainment Group Ltd.
The special administrative region is China's only location where casino gambling is legal, and over 90% visitors come from Greater China.
Transport links with mainland China have been curtailed, however, with dozens of flights and ferry services cancelled. The local government has also extended the Lunar New Year break to the end of the week, keeping banks and businesses closed.
On Tuesday, one of Macau's busiest tourist draws - the towering stone facade dubbed the Ruins of St Paul - was deserted, while renowned shopping and dining streets were empty as local residents also stayed at home.
Casinos were open though operators shuttered restaurants and cancelled all shows. Macau Chief Executive Ho Iat Seng said casinos could close if the virus continues to spread.
Also known as `` 2019-nCoV '', the virus was first reported in Wuhan, a major transportation hub and capital of central Hubei province with a population of 11 million people.
Macau's government has instructed all tourists from Hubei to leave the city. Around 270 remain, officials said.
( Reporting by Farah Master; Editing by Anne Marie Roantree, Christopher Cushing and Michael Perry) | business |
Louis Vuitton owner LVMH's sales growth slows in fourth quarter | The company, which owns labels including Louis Vuitton and Christian Dior, said the new coronavirus outbreak this month forced it to shutter some stores in the Chinese city of Wuhan, but it believed the peak of the virus would pass in a few weeks, limiting the impact on sales.
LVMH posted record revenue and profit for the whole of 2019. It said in a statement that fourth quarter sales rose 12% to 15.27 billion euros ( 13 billion pounds).
That marked an 8% increase year-on-year on a like-for-like basis, which strips out currency swings and acquisitions, and compared with forecasts cited by analysts and Reuters estimates of closer to 9% growth.
But it was less strong when set against like-for-like sales in the previous three months, which had grown 11%.
Speaking to reporters after the results were announced, LVMH Chief Financial Officer Jean-Jacques Guiony said that revenue in Hong Kong was down around 40 percent in the fourth quarter.
LVMH said though it managed to offset some of the pain through a strong performance at its stores in mainland China.
Hong Kong is a key market for luxury firms. Some of them have had to close stores during street protests against the Beijing-backed government.
LVMH said the group's sales growth would have kept pace in the fourth quarter were it not for one-off factors. It cited a tax hike in Japan which had led clients to bring forward purchases to the third quarter, and cognac stock shortages in the last three months of the year.
NO PANIC
Investors are fretting about the impact of the new coronavirus on China, the world’ s second-biggest economy, amid travel bans and a Lunar New Year holiday that has been extended by the authorities to try to limit the spread of infection.
Asked for his projections, LVMH boss Bernard Arnault said it was too early to say how the virus would evolve.
`` The first reaction is: 'Don't panic, let's calmly analyse the situation ', '' he told reporters.
Citing information passed to him from Chinese authorities, he said it seemed the peak of the virus should pass within weeks and it should peter out by the end of March. He also said the Chinese official response to the outbreak seemed robust.
`` That's the information we have, '' Arnault said. `` If it dies out in two months or two months and a half, it's not terrible. If it takes two years, that's a different story. ''
In LVMH's core fashion and handbags division, home to Louis Vuitton and other big brands such as Christian Dior, sales held up well in the quarter, expanding 15% on a like-for-like basis.
That was in line or a touch above some analysts ' forecasts.
( Writing by Sarah White and Christian Lowe; Editing by Alexandra Hudson)
By Sarah White and Silvia Aloisi | business |
Air Mauritius: Coronavirus - Health Minister Meets Stakeholders to Coordinate Actions | The Minister of Health and Wellness, Dr Kailesh Kumar Jagutpal, chaired a coordination meeting, this afternoon, on the situation of the coronavirus with stakeholders from the port, airport and tourism sector.
The stakeholders were Air Mauritius, Airports of Mauritius Ltd, Airport Terminal Operations Ltd, Passport and Immigration Office, Mauritius Tourism Promotion Authority, Mauritius Police Force, Mauritius Ports Authority, Association des Hôteliers et Restaurateurs de Maurice ( AHRIM), and Emirates.
Minister Jagutpal pointed out that all passengers will have to provide a valid address in order to facilitate screening of symptomatic cases by Health inspectors. So far, he said there have been nine symptomatic cases, two people who have returned to China and the other seven have been put in the Quarantine Ward of the Souillac hospital. He confirmed that these people do not suffer from coronavirus.
The minister announced that both arriving and departing passengers will pass through the thermal detectors at the airport so as to determine any case of fever. He underlined that the Ministry has put in place the protocol and the measures recommended by the World Health Organisation and indicated that several protective equipment, including medical masks N 95, have already been made available to health personnel at the airport.
He appealed to all stakeholders to collaborate closely while adding that the support of each and everyone is needed to raise awareness on the coronavirus.
Copyright Government of Mauritius. Distributed by AllAfrica Global Media ( allAfrica.com)., source News Service English | business |
House Energy and Commerce chairman questions China on coronavirus | The chairman of the House committee that oversees U.S. health agencies told CNBC on Tuesday that he's skeptical of information coming out of China on the coronavirus outbreak.
`` We have to be concerned about the Beijing government, '' Rep. Frank Pallone, D-N.J., said on `` Squawk Box. '' `` They are not often forthcoming, often don't tell the truth about what's really happening. ''
Chinese officials on Tuesday sharply increased the number of confirmed coronavirus cases to nearly 4,700. The death toll there rose to 106. The virus, which causes flu-like symptoms, was first identified less than a month ago in the Chinese city of Wuhan in Hubei province.
Most of the cases are in mainland China, where local authorities have quarantined at least 10 major cities. Multiple cases of the virus have been confirmed in Hong Kong, Macao, Taiwan, Thailand, Vietnam, South Korea, Singapore, Malaysia, Japan, Australia, France and the United States.
Pallone is chairman of the House Energy and Commerce Committee, which oversees agencies including the Department of Health and Human Services, the Food and Drug Administration, the National Institutes of Health and the Centers for Disease Control and Prevention.
He is not alone in his mistrust of China.
Earlier on Tuesday, former FDA Commissioner Scott Gottlieb told `` Squawk Box '' that there could be `` tens of thousands '' of cases in China. `` I think the Chinese haven't been fully sharing. ''
Medical experts have compared the current coronavirus outbreak to the 2003 SARS epidemic. SARS, which stands for severe acute respiratory syndrome, also began in China.
However, even after SARS had spread around the world, China sought to conceal the number of actual cases and worked meticulously to avoid detection by World Health Organization experts. It wasn't until a physician spoke out that the concealment became known.
China has said this time will be different. Last week, the ruling Communist Party's central political and legal affairs commission warned that `` whoever deliberately delays and conceals reports will forever be nailed to history's pillar of shame. ''
Chinese President Xi Jinping added that people's health must be put first. `` It is necessary to release epidemic information in a timely manner and deepen international cooperation. ''
By sharing information quickly, health experts can work to stop the spread of the disease and drugmakers can begin working on vaccinations.
Dr. Anthony Fauci, director of NIH's National Institute of Allergy and Infectious Diseases, told CNBC on Friday that China is `` doing much better this time '' than with SARS.
`` From the feedback we're getting, in a real-time basis, it's an enormous difference, in a positive way, '' he said.
— The Associated Press contributed to this report. | business |
Man in Germany contracts coronavirus | Germany has declared its first confirmed case of the coronavirus after a 33-year-old man contracted it from a colleague visiting his workplace from Shanghai, in one of the first cases of person-to-person transmission outside China.
The case raises concerns about the spread of the flu-like virus that broke out in the central Chinese city of Wuhan at the end of last year and has killed 106 people and infected more than 2,800 people.
It spreads in droplets from coughs and sneezes and has an incubation period of 1-14 days.
Bavaria's health ministry said late on Monday that a man in the southern German state was suffering from the virus and was in `` good condition '' while isolated under medical observation.
German car parts supplier Webasto on Tuesday said an employee at its headquarters in Stockdorf, Bavaria, had become infected following the visit of an employee from China.
A day earlier it said an employee from Shanghai tested positive for the virus upon returning to China.
Confirmation of any sustained human-to-human spread of the virus outside of China, as well as any documented deaths, would bolster the case for reconvening the World Health Organization's Emergency Committee to consider again whether to declare a public health emergency of international concern.
The independent panel last week twice declined to declare an international emergency.
In response to the episode, Germany plans to require travelers arriving from China to provide airlines with contact details, including where they are staying while in the country, Health Minister Jens Spahn said on Tuesday.
The step will ensure the authorities can get in touch with people who may have come into contact with infected people. Airlines will need to keep the details for 30 days, he said.
Outside of China there have now been 45 confirmed cases in 13 countries, with no deaths so far, the WHO's spokesman Christian Lindmeier told a briefing in Geneva on Tuesday.
The WHO said a case in Vietnam involved human-to-human transmission outside China and a Japanese official has said there was a suspected case of human-to-human transmission there too.
Andreas Zapf, president of Bavaria's office for health and food safety, said on Tuesday the person infected was 33 years old, lived in the district of Landsberg about 50 kilometers ( 31 miles) west of Munich and had come into contact with a Chinese woman on Jan 21.
Zapf said the Chinese woman was from Shanghai but her parents, who are from the Wuhan region, had visited her a few days earlier.
He added that she had arrived in Germany on Jan. 19, appearing not to have any symptoms, but began to feel ill on her flight home on Jan. 23. She sought medical treatment after landing and tested positive for coronavirus.
When that information was relayed back to the German company, a male employee said he felt like he had flu over the weekend and was on Monday advised to get medical treatment.
The head doctor at the clinic where the man is being treated told a news conference the patient was awake and responsive and he did not think the man's life was at risk.
Martin Hoch, the head of an infectiology taskforce, said the man had been in close contact with at least 40 colleagues and family members, adding that number could rise.
Bavaria's health ministry said people who had been in contact with the man had been informed of possible symptoms, hygiene measures, and transmission channels. | business |
Stocks making big moves midday: 3M, Beyond Meat, Harley-Davidson, Apple | Check out the companies making headlines in midday trading.
3M — Shares of 3M fell 5.7% after the conglomerate missed Wall Street expectations on the top and bottom lines for its fourth-quarter results. 3M reported $ 1.95 in adjusted earnings per share and $ 8.111 billion in revenue. That was below analysts's expectations of $ 2.10 in earnings per share and $ 8.118 billion in revenue, according to Refinitiv. Organic sales declined on a local currency basis for the quarter, the company said. 3M also announced a new round of job cuts and, due to demand caused by the coronavirus outbreak, increased production of its respiratory masks.
Beyond Meat — Shares of Beyond Meat fell 3.7% following a downgrade to neutral from overweight from JPMorgan. The firm said the alternative meat company is no longer fairly valued as investors have already priced in news about growing restaurant partnerships. JPMorgan said Beyond Meat's near 60% rally this year is reason to `` head for the sideline. '' JPMorgan also lowered its price target to $ 134 per share from $ 138 per share.
Harley-Davidson — Shares of the motorcycle company fell 3% after missing revenue estimates for its fourth quarter earnings. Harley-Davidson reported revenue of $ 874.1 million, falling short of estimates of $ 920.1 million, according to Refinitiv. The company also issued weaker-than-expected revenue guidance for the new year. Harley-Davidson expects to earn between $ 4.53 billion and $ 4.66 billion in revenue in 2020, while analysts forecast annual revenue of $ 4.65 billion.
Las Vegas Sands, MGM Resorts, Carnival Cruise Lines, Norwegian Cruise Lines, Royal Caribbean — Several stocks that were hammered yesterday as coronavirus fears spread rebounded on Tuesday morning. Las Vegas Sands and MGM Resorts, which operate casinos in Macau, rose 1.8% and 2%, respectively. Cruise line stocks also recovered some of their losses, with Carnival Cruise Lines and Norwegian Cruise Lines up 2.7% and 1.5% and Royal Caribbean rising 3%.
Apple — Apple shares climbed 2.8% ahead of the tech giant's earnings release later in the day. Analysts polled by Refinitiv expect Apple to report earnings of $ 4.55 per share on revenue of $ 88.5 billion. However, a report from the Nikkei Asian Review said a planned 10% boost to Apple's iPhone production could be hampered by `` massive uncertainties, '' including the coronavirus outbreak in China.
United Technologies — Shares of the industrial company rose 1.2% after United Technologies beat analyst estimates on the top and bottom lines of its quarterly earnings. The company said sales rose 8% year-over-year. The stock has gained 33% over the last year.
Pfizer — Shares of the pharma giant slid 5.1% after the company reported fourth quarter earnings. Revenue came in ahead of estimates, but an earnings-per-share miss sent the stock lower. The company said part of this was due to a loss of exclusivity for one of its key pain drugs.
PulteGroup — Shares of the homebuilding company jumped 5.7% after beating on the top and bottom lines of its quarterly earnings. Pulte Group reported earnings per share of $ 1.14 on revenue of $ 3.017 billion. Analysts expected earnings per share of $ 1.09 on revenue of $ 2.979 billion, according to Refinitiv.
Xerox — Shares of Xerox jumped 4.9% following its strong fourth quarter earnings. The printer company reported earnings per share of $ 1.33, topping estimates of $ 1.11 per share, according to Refinitiv. Revenue came in at $ 2.444 billion, higher than the $ 2.408 billion forecast on Wall Street.
Whirlpool — Shares of the appliance company jumped 5.7% after topping Wall Street's expectations for its fourth quarter earnings. Whirlpool reported earnings per share of $ 4.91, topping estimates of $ 4.27 per share, according to Refinitiv.
Polaris — Polaris stock rose 5.8% after the power sports vehicle company topped fourth-quarter earnings estimates and told analysts to expect better margins into 2020. The Medina, Minnesota-based company managed to eke out better ATV and snowmobile sales compared to what Wedbush analyst James Hardiman was anticipating. `` Overall, core retail trends in the fourth quarter, while slightly worse than we would have expected three months ago, were slightly better than we had feared, '' he wrote.
— with reporting from CNBC's Jesse Pound, Pippa Stevens, Tom Franck and Fred Imbert. | business |
India, Bangladesh eye evacuating citizens from China coronavirus epicenter | epicenter @ ( Adds comments from Indian and Bangladeshi authorities)
NEW DELHI, Jan 28 ( Reuters) - India and Bangladesh said on Tuesday they are working on evacuating their citizens from China's Wuhan, the epicenter of a new coronavirus outbreak that has killed more than 100 people.
Indian state airline Air India was on standby to evacuate an estimated 250 Indians from Wuhan in Hubei province, local media reported earlier.
`` We have begun the process to prepare for evacuation of Indian nationals affected by the situation arising out of Corona-2019 virus outbreak in Hubei Province, China, '' Indian Foreign Ministry spokesman Raveesh Kumar said in a tweet.
He said Indian authorities were working out the logistics of moving people out of the city of 11 million people that is under a lockdown.
In Bangladesh, Foreign Minister Abdul Momen said talks were underway to bring back Bangladeshi citizens from China.
The death toll from the virus rose to 106 on Tuesday as authorities scrambled globally to curb its spread and U.S. health authorities advised travelers to avoid all non-essential travel to China. A growing number of countries have said they will evacuate their citizens from Wuhan.
The virus has infected thousands of people in China and spread to more than a dozen countries, including the United States.
There are no confirmed cases of the virus yet in India, Health Minister Harsh Vardhan said on Tuesday, adding authorities were screening suspected patients in multiple cities. All hospitals had been asked to keep those suspected to have the virus in isolation wards, he added.
`` We are taking all precautions against it, '' said Vardhan. Seven major airports in India including New Delhi and Mumbai were screening all passengers coming into India from China.
No one in Bangladesh has been found to have the virus yet either, Bangladeshi Health Minister Zahid Maleque told reporter, but the government was prepared if infections surfaced.
More than 400 Bangladeshi citizens, mostly students, are stranded in Wuhan under the lockdown. Many took to social media to urge Bangladeshi authorities to evacuate them.
Momen, the Bangladeshi foreign minister, told reporters that the government was keeping a close watch on people coming in Bangladesh from China.
`` We are keeping their records so that we can track them if something goes wrong, '' he said.
Officially known as `` 2019-nCoV, '' the coronavirus can cause pneumonia, but it is too early to know just how dangerous it is and how easily it spreads. ( Reporting by Sanjeev Miglani, Ruma Paul and Zeba Siddiqui Editing by Mark Heinrich) | business |
Services in spotlight after Apple stock market value hits $ 1.4 trillion | When Apple Inc posts quarterly results on Tuesday, investors will be looking for fresh evidence the iPhone maker should be treated as a producer of high-margin, subscription services after its stock market value touched $ 1.4 trillion ( £1 trillion) and its earnings multiple trades at decade highs.
The Cupertino, California corporation's stock has doubled over the past year, even as iPhone sales contract along with the rest of the global smartphone market. Fueling its stellar run has been Chief Executive Tim Cook's push to turn Apple's loyal client base into a source of steady services revenue, including streaming video and a credit card launched last year with Goldman Sachs.
Also supporting Apple's stock is excitement around an eventual pickup in iPhone demand with the rollout of 5G wireless technology, and low interest rates that have broadly helped Wall Street.
Shares of Apple fell 2.9% on Monday from record highs as fears about the economic fallout of the coronavirus outbreak in China hit Wall Street. Analysts on Apple's quarterly earnings call after the bell on Tuesday will listen for comments concerning the impact on its manufacturing operations in China.Apple's market capitalization briefly exceeded $ 1.4 trillion last Wednesday for the first time, but it has yet to end a session at that level. Some investors worry that Apple's rally, and surging earnings multiple, may have become overextended.
`` The run-up in the stock is a concern, and I wouldn't be surprised if we see a bit of a pullback in the near future, '' said People's United Advisors chief equity strategist John Conlon, who added that Apple's services business has become his main reason for owning stock.
Following its recent rally, Apple's stock is trading at the equivalent of 23 times expected earnings, its highest multiple since 2010, according to Refinitiv. Apple's average PE over the past decade was about 14, lagging other high-growth companies with recurring revenue and reflecting its singular dependence on iPhones sales and reliance on persuading consumers to upgrade their phones year after year.
Salesforce.com and Netflix, which rely on recurring revenue, are trading at over 55 times expected earnings. Tech hardware sellers Intel and Cisco Systems are at about 14 times expected earnings.
Apple is on track to reach a goal to double its 2016 services revenue to $ 48.7 billion by the end of fiscal 2020 as it focuses on selling high-margin subscriptions to its user base. Many investors envision an increasingly rosy future for its earnings, a trend reflected in its soaring earnings multiple.
Adding to existing services including cloud storage, the App Store and music, Apple last year launched an ambitious video streaming service, along with its credit card, a subscription news app and a videogame service.
Apple has also increased the emphasis on its AppleCare, its extended warranty program. For example, the iPhone's `` settings '' now includes reminders encouraging people to buy or renew their AppleCare plans.
In the September quarter, Apple said its services revenue hit $ 12.51 billion, topping analysts expectations of $ 12.15 billion. Services accounted for 20% of total revenue in that quarter, up from 17% in the same quarter the year before.
Apple also gave cost of sales data showing gross margins for its services segment rose to 64% from a 61% a year earlier. That is far more generous than Apple's overall gross margin of around 38% in recent years.
Still, for a business segment getting the most attention from Wall Street, Apple provides limited details. Apple's quarterly reports break out sales of iPhones, Macs and iPads, but a breakdown of results from products falling within the services category so far has not been released.
Apple's recent strong stock performance has been perpetuated by fund managers buying its shares in order to avoid underperforming their benchmarks, a trend that could reverse when the recent rally ends, Cowen analyst Krish Sankar wrote in a client note last week.
For the fiscal first quarter, which ended in December, analysts on average expect services revenue to jump 19.7% to $ 13.0 billion, according to Refinitiv.
Overall quarterly revenue is expected to rise 5.0% to $ 88.5 billion, with adjusted net income inching up 1.5% to $ 20.3 billion and earnings per share of $ 4.55.
( Reporting by Noel Randewich, additional reporting by Stephen Nellis; Editing by Tom Brown)
By Noel Randewich | business |
CEO: Coronavirus impact on oil prices not entirely comparable to SARS | There's a `` bear stampede '' in the oil market as a new coronavirus spreads, but that may not be directly comparable to the sell-off in 2003 associated with the outbreak of severe acute respiratory syndrome ( SARS), according to an energy analyst.
Oil futures slid for a sixth session on Tuesday amid reports of a rising number of cases and casualties.
`` It is based on a lot of fear and panic, '' Vandana Hari, founder and CEO of energy markets consultancy Vanda Insights, told CNBC's `` Capital Connection '' on Tuesday. `` That fear and panic will probably not die down anytime soon. ''
`` It's natural, very human to... hark back to SARS, '' she said. `` However, when it comes to the oil market, I don't think it's entirely comparable. ''
Energy prices also slumped during the SARS outbreak in 2003. But she said there was `` another, much bigger influence '' in the oil market back then — the U.S. invasion of Iraq.
Brent crude went down from the mid- $ 30s to the mid- $ 20s at the time, she said. `` The fear premium just before the invasion had peaked, then suddenly it dropped off quite rapidly when it realized that, though Iraqi production was affected, OPEC members rallied and pumped enough oil. ''
The novel coronavirus also appears to be less severe, she said, noting that the virus has not spread the way SARS did outside of China.
While Hari called the fall in oil prices `` premature '' and `` overdone, '' she also said there were `` bearish leanings '' in the market before the outbreak began. That includes the dying down of U.S.-Iran tensions and a mild winter, she said.
`` Perhaps a bigger one is that the China-U.S. trade deal... has not really raised hopes for commodities seeing a major comeback in demand, '' she added. `` All of these factors will remain and I presume they have contributed to this fear and panic being a little bit more amplified. ''
She said she doesn't see upside catalysts for oil `` at all, '' but OPEC and its allies could `` put a floor '' under prices.
`` I do believe they will do everything in their power, but with a caveat again, that we 'll have to see... the downslide that we 've seen in prices over the past week become quite entrenched, '' according to Hari.
`` It's well known that $ 60 for Brent is a kind of psychological floor that they would like to defend, '' she added. `` I do believe they will step in, but I think it's again quite premature for them... to pronounce that they will. ''
— CNBC's Berkeley Lovelace Jr., William Feuer and Christine Wang contributed to this report. | business |
3M ramps up production of masks to meet coronavirus demand | The CEO of industrial giant 3M said Tuesday that the company is increasing production of its respiratory protection products, such as masks, to meet demand caused by the outbreak of coronavirus.
Mike Roman said on CNBC's `` Squawk on the Street '' that the company is raising production around the world to make more of the products. The conglomerate makes masks that people wear to cover their mouths and noses to stop the spread of the respiratory virus.
`` We are ramping to full production. We're going 24/7, '' Roman said. He added that the company is increasing production at its plants in China and other Asian countries, as well as in Europe in the United States.
3M's facility in China is fully operational despite the outbreak, he said.
Coronavirus has now spread to more than 10 countries, with nearly 4,700 confirmed cases and over 100 deaths.
Despite the increased demand for respiratory protection products, the travel restrictions and shutdown of companies in China due to the virus could hamper 3M's performance in the country overall, Roman said on a conference call on Tuesday. The first part of the year was already looking like a rough patch for the company before the outbreak, he said.
`` Before we got to the past couple of weeks, with the coronavirus really becoming the focus, we were looking at a sluggish start to China in first quarter, really based on automotive, '' Roman said on the call.
Shares of 3M fell 5.7% on Tuesday after the company announced its latest earnings. The company missed Wall Street expectations on the top and bottom lines for its fourth quarter and announced a new batch of job cuts. | business |
Coronavirus: Health experts urge calm over virus | The spread of the coronavirus is causing concern for members of the public and global financial markets, but health experts are keen to put the virus into context.
Chinese health authorities said Tuesday that the coronavirus outbreak has killed 106 people and infected 4,515. The officials also said 60 people had been discharged.
While the death toll is expected to continue to rise, and the virus to spread ( Germany confirmed its first case on Monday, the second European nation to do so after France) most of the cases are so far contained to China and the authorities have put in measures to try to stop the spread, including quarantining several major cities and canceling Lunar New Year's events in Beijing and elsewhere.
China's reaction to the health crisis is among the reasons why we shouldn't panic about the virus, experts say.
`` It appears to be very well contained, '' Mark Parrish, regional medical director of Northern Europe at International SOS, told CNBC Tuesday.
`` The Chinese have done some extraordinary things, identifying the virus and its molecular structures and then instigating those quarantine measures in China where they have shut down these huge cities and stopped all movement. It's come at a really bad time of the year... It's likely to have moved around China. ''
`` It appears though that the death rate remains at about 2% to 3%, it seems to be very well contained at the moment, '' he said.
`` Putting it into perspective, 100 deaths or so, so far, all in elderly people and those that have other co-existing diseases unfortunately. And those are the ones that are most likely to be affected by this as their respiratory systems find it difficult to deal with these things. ''
Parrish said that the death rate was relatively low compared to other coronavirus outbreaks ( there is a family of coronaviruses) outbreaks in the past, like SARS that had a 10% death rate, and MERS ( Middle East respiratory syndrome-related coronavirus) that has a 35% death rate.
`` About 25% of people who get the virus become quite sick and require hospital admission and unfortunately a small percentage don't do very well and die, '' Parrish told CNBC's `` Squawk Box Europe. ''
`` The treatment is what we call in medical terms symptomatic and supportive, so we will look after you and give you fluids but there is no cure, there's no anti-viral that's working for that. I 'm sure there is work being done developing a vaccine for this, '' he said, although he added that that would come in time and there would be mutations of the virus.
Global media organizations have fixated on whether the outbreak will be declared a `` global health emergency '' by the World Health Organization ( WHO). Currently, the WHO has the virus at a `` high risk '' level after admitting on Monday its error in initially stating ( last week) that the global risk was `` moderate. ''
Christian Lindmeier, spokesperson for the WHO, told CNBC Tuesday that the assessment was done by a group of independent experts and that the situation would be re-evaluated `` very soon. ''
He said there was definitely a crisis in China `` but declaring this a public health emergency of international concern is another step. It means that internationally this is spreading and is transmitting from human to human internationally.
`` So not only a traveler carrying it from China into another country and it being contained there, but it spreading onward from there and this is something we 've not yet seen, let's be very clear about this, '' he said.
Although it has not happened yet, Lindmeier said it would not be surprising if the virus spread further. He said health systems should closely monitor the situation and `` be aware that this is what could come to their shores. ''
Global stock markets plummeted on Monday as concerns over the spread of the virus shook investor confidence but appear to be in recovery mode on Tuesday.
Peter Piot, director of the London School of Hygiene & Tropical Medicine, told CNBC that the outbreak `` is a global health emergency, there's no doubt about it '' but he noted that the spread has so far been isolated outside of China.
`` On Monday, the number of new cases doubled overnight and there are now over a hundred deaths... There is international spread although fortunately up until now there's not been local spread in countries outside China, that's the good news. ''
`` Everything indicates that the mortality ( rate) is lower, but if you consider that if 1 million people become infected, that means 10,000 to 20,000 deaths so we can't take any risks and the impact of the epidemic in China is already enormous, it's very disruptive. ''
`` The jury's still out just how bad it will be, but when you think that the number of cases has doubled in one day, that's very worrisome, '' he said.
`` But we 've been here before in terms of the economic impact, SARS caused about $ 50 billion ( impact) and everything has rebounded because one day this will be under control, the matter is how long it's going to take. '' | business |
Finland's Kone talks up potential of Thyssenkrupp combination | Chief Executive Henrik Ehrnrooth was speaking after the company revealed quarterly profit that beat expectations, but a weaker sales outlook for 2020 pushed its share price briefly to an eight-week low.
Kone, which is working with private equity firm CVC [ CVC.UL ] was due to make a bid on Jan. 27 for Thyssenkrupp's elevator business, valued at around 15 billion euros ( $ 16.64 billion).
Ehrntooth declined to say whether Kone had bid, but said he believed Kone would be `` a good owner '' and Kone would not be interested in just a minority stake.
`` The joined companies would have very significant scale advantages, '' he said.
Kone forecast 2020 sales growth of 0–6% at comparable exchange rates, down from 10% growth the firm reached in 2019.
Analysts surveyed by Kone had forecast average sales growth of 5% in 2020 and estimates had ranged from 3% to 7.6% growth.
Ehrnrooth said there were fewer orders for this year compared with 2019 and the outbreak in China of the newly-identified coronavirus added uncertainty.
Ehrnrooth said Kone's two factories in China would remain closed for at least an additional week because of the virus.
`` This will affect our first quarter and we don't know when our clients ' construction sites will be reopened, '' he said.
Kone reported a 15% rise in fourth-quarter adjusted operating profit to 367.5 million euros ( £311 million), above the 363.3 million expected by 21 analysts in a poll provided by the company. The company's board proposed a dividend of 1.70 euros per class B share for 2019.
Shares in Kone dropped almost 4% on the results report but later recovered to close 0.2% lower at 58.02 euros.
By Anne Kauranen | business |
These stocks are most at risk from the spreading coronavirus, Jefferies says | A man kisses his partner goodbye as she leaves to travel home at Beijing Railway station before the annual Spring Festival
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Fears over the spreading coronavirus have put markets on edge.
Jefferies’ global head of microstrategy Desh Peramunetilleke said the virus could be the trigger for markets to “ take a breather, ” with momentum stocks most at risk and cash and bond proxies the most resilient.
He said there were already parallels with the Sars epidemic in 2003 as the HSI Index has corrected by 3.7% in the past two days, having fallen 9% at the beginning of the Sars crisis.
Peramunetilleke said: “ During the 2003 Sars crisis, the Hong Kong-listed stocks that corrected the most included hotels, airlines, telecoms and developers. On the other hand, the most resilient ones were insurance, utilities and railroad. Along similar lines, sectors that have been most impacted over the past two days include food retailing, airlines, e-commerce, Macau gaming, restaurants and education — most resilient sectors include pharma, telecoms, healthcare and utilities.
“ On a positive note, it took the markets only about two months to recover the losses incurred over the SARS affected period. ”
Jefferies’ chief global equity strategist Sean Darby said investors will also be looking to the timeline of the Sars epidemic in 2003 for clues as to how coronavirus may affect stocks.
He said: “ The maximum panic appeared around the WHO Global Health alert while markets bottomed as the WHO began to lift travel bans. ”
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German auto supplier Webasto says two employees infected with coronavirus | - German car parts supplier Webasto on Tuesday said a second employee had become infected with the coronavirus following the visit of another employee, from China, to the company's headquarters in Stockdorf, Bavaria.
`` The auto supplier Webasto confirms that the person infected with the Coronavirus is from Starnberg and an employee at the company headquarters in Stockdorf, '' Webasto said.
Webasto on Monday had said a Chinese employee from Shanghai had tested positive for the virus upon his return to China following his visit to the company headquarters.
The company, which has 11 locations in China, including in Wuhan, the epicentre of the coronavirus, has banned travel to and from China for the next fortnight. ( Reporting by Jörn Poltz, Writing by Edward Taylor; Editing by Riham Alkousaa) | business |
China's coronavirus spurs airlines to issue refunds and suspend flights to China | The coronavirus outbreak that originated in Wuhan, Hubei Province, China is reducing demand for flights to and from the country, causing airlines to suspend and issue refunds for previously scheduled service.
On Wednesday British Airways said it had temporarily suspended all flights to and from mainland China, revising a prior decision to reduce yet maintain reduced scheduled service. Flights to and from Hong King will continue.
“ We apologise to customers for the inconvenience, but the safety of our customers and crew is always our priority, ” the company said, adding that the decision was based on advice from UK government and health organisations that recommend only essential travel to China. “ Customers due to travel to or from China in the coming days can find more information on ba.com. ”
United Airlines ( UAL) and Finnair have suspended some flights to China, while other airlines will issue refunds to those with booked flights who no longer wish to travel to the country.
“ Due to a significant decline in demand for travel to China, we are suspending some flights between our hub cities and Beijing, Hong Kong and Shanghai beginning Feb. 1 through Feb. 8, ” a United Airlines spokesman said in a statement on Tuesday. “ We will continue to monitor the situation as it develops and will adjust our schedule as needed. ”
United will begin paring westbound flights starting on Feb. 1, and eastbound flights beginning Feb. 2. In total, the airline has cancelled 24 flights between the three Chinese cities and San Francisco, Newark, Washington Dulles, and O’ Hare airports.
Finnish airline Finnair became the first airline to suspend service to China, Reuters reported on Tuesday. According to the report, the airline planned to suspend flights to Nanjing and Beijing’ s Daxing airport, through the end of March.
The news comes as the UK's Foreign and Commonwealth Office ( FCO) on Tuesday followed an advisory issued Monday by the U.S. Centers for Disease Control's ( CDC) to avoid all nonessential travel to China.
A spokesman for Canadian airline, Air Canada, which operates 33 flights to China, per week, said the company is cancelling select flights `` to better match capacity with expected demand. '' As it continues to monitor the situation, customers who are affected will be notified and provided with alternate travel options.
American Airlines ( AAL) said it had not adjusted its flight schedule. “ We are continuing to monitor the situation very closely, ” a company spokesman said.
Delta Air Lines ( DAL) also said it had not made any changes to its operating schedule and would continue to monitor the situation.
U.S. carriers, Hawaiian Airlines ( HA), and Southwest Airlines ( LUV), which do not operate flights to or from China, said they had not modified their schedules due to the virus.
Hawaiian Airlines said it will permit customers holding tickets with its airline partners that include travel to, from, or through, China through Feb. 16 to cancel for a refund, or reschedule without incurring change fees. “ Rebooked flights must be scheduled for travel no later than April 19, ” the company said.
In an email, Southwest said the company “ works closely with the CDC to respond to any outbreaks and follows all CDC recommendations regarding illness response and notification to Customers and Crews. ”
According to the CDC, at the time this story published, cases of coronavirus had been confirmed in four U.S. states — Illinois, Washington state, California, and Arizona — and internationally in China, Hong Kong, Macau, Taiwan, Australia, Cambodia, Canada, France, Germany, Japan, Malaysia, Nepal, Sri Lanka, Singapore, Thailand, The Republic of Korea, and Vietnam.
This story was revised to update British Airways decision to temporarily cancel all flights to and from mainland China.
Alexis Keenan is a reporter for Yahoo Finance. Follow her on Twitter @ alexiskweed.
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Watch: US health officials hold press conference on the coronavirus outbreak | [ The stream is slated to start at 11:15 a.m. ET. Please refresh the page if you do not see a player above at that time. ] Top U.S. health officials and infectious disease specialists have scheduled a press conference Tuesday morning on the coronavirus outbreak.
The briefing, hosted by U.S. Health Secretary Alex Azar, is scheduled to start at 11:15 a.m. ET at the agency's headquarters in Washington, D.C.
Centers for Disease Control and Prevention Director Robert Redfield will also speak, as well as representatives from the National Center for Immunization and Respiratory Disease and the National Institute of Allergy and Infectious Diseases.
The total number of cases of the coronavirus has now reached 4,682 worldwide with 106 deaths in China, Chinese health authorities said Tuesday.
The majority of the cases are in mainland China, where local authorities have quarantined at least 10 major cities. Multiple cases of the virus have been confirmed in Hong Kong, Macao, Taiwan, Thailand, Vietnam, South Korea, Singapore, Malaysia, Japan, Australia, France and the United States. Cambodia, Canada, Germany, Nepal and Sri Lanka have each reported one case.
German officials confirmed Tuesday what is believed to be the first person-to-person transmission of the infection outside of China.
CDC officials said Monday that the number of `` patients under investigation '' in the U.S. has almost doubled since Thursday to a total of 110 across 26 states. The disease is not spreading through human-to-human contact in the U.S. and the risk to the public right now is still considered low, Dr. Nancy Messonnier, the director of the National Center for Immunization and Respiratory Diseases, said Monday.
Subscribe to CNBC on YouTube. | business |
Coronavirus live updates: US raises travel warning to China, expands screenings | This is a live blog. Check back for updates.
Hubei province reported an additional 840 cases and 25 deaths. As of the end of Jan. 28, the province said that brings cases in the region to 3,554 and its death toll to 125, with the majority of those located in Hubei's capital city, Wuhan. Hubei also said 80 people had been cured.
The White House has told airline executives it's considering suspending flights from China to the U.S. amid an escalating outbreak of a new coronavirus that has infected thousands of people across the world, people familiar with the matter said. The restrictions could affect flights into and out of China, as well as airports across the United States, the officials said.
The State Department has confirmed that the charter plane from Wuhan carrying U.S. personnel from the U.S. consulate as well as private U.S. citizens has departed.
Apple CEO Tim Cook said Tuesday the company is restricting employee travel in China as the coronavirus continues to spread. Cook also said that Apple is cutting back on its retail store hours in China and have closed one store.
Air Canada on Tuesday said it was canceling select flights to China to better match capacity with expected demand as the spread of the new coronavirus rattles travellers. Air Canada currently operates 33 flights a week to China and the resulting capacity reduction is relatively small, a company spokesman said by email. Those customers who are affected will be notified and provided with alternate travel options. Earlier today, United Airlines canceled some China flights due to `` significant decline in demand '' as corornavirus spreads.
The international coffee chain warned investors that the coronavirus could hurt its 2020 earnings. The coffee chain said it has closed more than half of its Chinese locations but expects that it will be temporary. `` The company will update its guidance for fiscal 2020 when we can reasonably estimate the impact of the coronavirus, '' Starbucks said in a press release announcing its fiscal first-quarter results.
U.S. health officials are fast-tracking work on a coronavirus vaccine, hoping to start an early-stage trial within the next three months, the Trump administration said. That timeline is optimistic, and a phase 1 trial does not mean `` you have a vaccine that's ready for deployment, '' said Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, an agency within the Department of Health and Human Services. It could take a year or more before a vaccine is ready for sale to the public, he said.
The World Health Organization is sending a delegation of researchers and other health experts to China to help combat the coronavirus outbreak. WHO Director-General Tedros Adhanom Ghebreyesus met with Chinese President Xi Jinping in Beijing earlier Tuesday. The two were joined by top officials from the WHO and the Chinese government to discuss how best to contain a fast-spreading and deadly virus in Wuhan and other cities and provinces.
The Kansas Department of Health and Environment said it has quarantined a patient in Douglas County who returned from Wuhan in the last two weeks and developed symptoms of the virus in recent days. The state said it is sending specimens to the CDC for testing and expects to have results later this week.
United Airlines plans to suspend some China flights next month because of a `` significant decline in demand '' for service to the country as it battles the growing number of coronavirus cases. United has more service to China than any other U.S. airline. The flight cancellations take effect Feb. 1 and last through Feb. 8. It wasn't immediately clear if United would cancel more flights.
U.S. Health Secretary Alex Azar warned that the coronavirus raging across mainland China is a `` potentially very serious public health threat, '' adding that the Trump administration is expanding screening for the virus from five to 20 U.S. airports. `` We are constantly preparing for the possibility that the situation could worsen, '' Azar said during a news briefing.
Top U.S. health officials and infectious disease specialists held a news conference Tuesday morning on the coronavirus outbreak. The briefing, hosted by U.S. Health Secretary Alex Azar, was held at the agency's headquarters in Washington, D.C. Centers for Disease Control and Prevention Director Robert Redfield will also speak, as well as representatives from the National Center for Immunization and Respiratory Diseases and the National Institute of Allergy and Infectious Diseases. Watch the full news conference here.
The White House is considering imposing travel restrictions on China amid the escalating death toll from the coronavirus, two senior administration officials told CNBC's Eamon Javers on Tuesday. No final decision has been made. A senior staff meeting was held at the White House on Monday during which the restrictions were discussed.
Germany has diagnosed its first confirmed case of the coronavirus after a 33-year-old man contracted it from a colleague visiting his workplace from Shanghai, in one of the first cases of human-to-human transmission outside China, raising concerns about the spread of the flu-like virus. It spreads in droplets from coughs and sneezes and has an incubation period of 1 to 14 days.
Mike Roman, the CEO of industrial giant 3M, said Tuesday that the company is increasing production of its respiratory protection products, such as masks, to meet demand caused by the outbreak of coronavirus. Roman said on a conference call for 3M's fourth-quarter results that the company is raising production around the world to make more of the products.
The Centers for Disease Control and Prevention is telling Americans to avoid all nonessential travel to China, expanding its travel warning from the city of Wuhan to the entire country as the coronavirus outbreak worsens. Last week, the CDC advised against all nonessential travel to Wuhan, the epicenter of the disease's outbreak and where the majority of cases have been reported. The U.S. Department of State on Monday also raised its travel advisory for China from Level 2 to Level 3 asking Americans to `` reconsider travel to China due to the novel coronavirus. '' They added that some areas have `` added risk. ''
The total number of cases of the coronavirus reached 4,682 worldwide with 106 deaths in China, Chinese health authorities said Tuesday. The majority of the cases are in mainland China, where local authorities have quarantined at least 10 major cities. Multiple cases of the virus have been confirmed in Hong Kong, Macao, Taiwan, Thailand, Vietnam, South Korea, Singapore, Malaysia, Japan, Australia, France and the United States. Cambodia, Canada, Germany, Nepal and Sri Lanka have each reported one case.
Former Food and Drug Administration Commissioner Scott Gottlieb said he's worried that coronavirus cases in China are actually much higher than the official numbers show. `` I think we are dramatically underestimating '' cases in China by `` tens of thousands, '' Gottlieb told CNBC's `` Squawk Box. ''
Investment bank Goldman Sachs instructed its staff in mainland China to work from home or stay out of the office for at least two weeks, Reuters reported, citing an internal memo.
Reuters contributed to this article. | business |
AP source: Jet evacuates Americans from China outbreak zone | SANTA ANA, Calif. ( AP) — An airplane evacuating as many as 240 Americans from a Chinese city at the center of a virus outbreak departed Wednesday before dawn, and is en route to the U.S., a U.S. State Department official has told The Associated Press
The U.S. government chartered the plane to fly out diplomats from the U.S. Consulate in Wuhan, where the latest coronavirus outbreak started, and other U.S. citizens. The plane will make a refueling stop in Alaska before flying on to Ontario, California, the U.S. Embassy in China has said.
Wuhan is the epicenter of a new virus that has sickened thousands and killed more than 100 and the official said Tuesday that the plane left the city before dawn Wednesday, China time. The official spoke on condition of anonymity because the official was not authorized to speak publicly.
When the plane arrives in Anchorage, Alaska, passengers will clear customs and go through the Centers for Disease Control screening.
“ Then they will put them back on the plane and then send them on to their final destination, ” said Jim Szczesniak, manager of the Ted Stevens Anchorage International Airport. He didn’ t know how long it would take beyond “ hours. ”
The passengers are being isolated in the airport’ s international terminal, which lies mostly dormant in the winter months.
Szczesniak stressed the terminal is not connected to the larger and heavily used domestic flights terminal, and each has separate ventilation systems.
The lobby in the international terminal was nearly empty Tuesday afternoon, and an airport employee was seen jogging through though the facility that has closed counters for companies like Korean Air, China Airlines and Asiana Airlines. There are two businesses operating at either end of the ticket coutners, a 4x4 rental agency and a satellite office of the Alaska Division of Motor Vehicles.
Because the terminal is only active in the summer, it allows the airport to practice situations such as this one.
“ In the winter time, we have the ability and the luxury of not having any passenger traffic over there, so it’ s a perfect area for us to handle this kind of flight, ” he said.
Officials at the California airport 35 miles ( 56 kilometers) east of Los Angeles have been readying facilities to receive and screen the repatriates and temporarily house them for up to two weeks — if the Centers for Disease Control determines that is necessary, said David Wert, spokesman for the county of San Bernardino.
“ We're preparing for that eventuality just in case, ” Wert said.
Symptoms of the virus include fever, cough, and in more severe cases shortness of breath or pneumonia.
China has cut off access to Wuhan and 16 other cities in Hubei province to prevent people from leaving and spreading the virus further. In addition to the United States, countries including Japan and South Korea have also planned evacuations.
Ontario International Airport was designated about a decade ago by the U.S. government to receive repatriated Americans in case of an emergency overseas, Wert said.
Airport personnel have trained for such an occasion. The repatriation from China would be the first time the airport is used for this purpose, he said.
Passengers will be screened again once they arrive in Ontario, California. The area where passengers will be taken is removed from passenger terminals and other public areas at the airport, the county said.
Associated Press news editor Mark Thiessen in Anchorage, Alaska, contributed to this report. Lee reported from Washington.
Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed., source Associated Press News | business |
Saga expects profit in line with view despite Thomas Cook collapse hit | The over-50s tourism and insurance firm, which earlier this year launched an overhaul of its mainstay insurance unit to battle margin pressures, said the insurance business was in a much more stable position than a year ago.
`` Although Saga continues to face challenging markets in insurance and travel, we have a clear focus on improving performance and cost efficiencies within the group, '' newly appointed Chief Executive Officer Euan Sutherland said.
Shares of the company were 5.3% higher at 43.9 pence in early trade.
During its half-year results, Saga said it expects annual underlying pretax profit between 105 million pounds and 120 million pounds.
In the backdrop of growing worries over the spread of the new coronavirus in China, which has raised concerns about travel demand, a Saga spokesperson said on Monday the company did not have any tours to China until later in the year.
The company, which owns Saga Holidays, Saga Cruises, Titan and Destinology, expects annual revenue for Saga's tour operations to be down 5%, but added that it was seeing a `` much more resilient picture '' in its escorted tours.
Saga's branded home and motor policies are expected to be about 3% lower for the year ended Jan. 31, as the insurance market remained competitive, however, customer retention of 75% was better than last year.
( Reporting by Yadarisa Shabong in Bengaluru, additional reporting by Noor Zainab Hussain in Bengaluru; Editing by Aditya Soni) | business |
Kone: Financial Statement Bulletin of KONE Corporation for January-December 2019 | KONE Corporation, stock exchange release, January 28, 2020 at 12.30 p.m. EETFinancial Statement Bulletin of KONE Corporation for January-December 2019
January-December 2019: Solid sales growth in all businesses and profitability improved in Q4
October-December 2019
· Orders received grew by 2.6% to EUR 1,988 ( 10-12/2018: 1,938) million. At comparable exchange rates, orders received grew by 0.7%. · Sales grew by 9.9% to EUR 2,685 ( 2,443) million. At comparable exchange rates, sales grew by 7.9%. · Operating income ( EBIT) was EUR 356.4 ( 292.5) million or 13.3% ( 12.0%) of sales. The adjusted EBIT was EUR 367.5 ( 319.6) million or 13.7% ( 13.1%) of sales. * IFRS 16 had a positive impact of EUR 0.1 million on the operating income. · Cash flow from operations ( before financing items and taxes) was EUR 385.7 ( 331.6) million. IFRS 16 had a positive impact of EUR 32 million to the cash flow from operations ( before financing items and taxes).
January-December 2019
· Orders received grew by 7.7% to EUR 8,400 ( 1-12/2018: 7,797) million. At comparable exchange rates, orders received grew by 5.9%. · Sales grew by 10.0% to EUR 9,982 ( 9,071) million. At comparable exchange rates, sales grew by 8.2%. · Operating income ( EBIT) was EUR 1,192 ( 1,042) million or 11.9% ( 11.5%) of sales. The adjusted EBIT was EUR 1,237 ( 1,112) million or 12.4% ( 12.3%) of sales. * IFRS 16 had a positive impact of EUR 6 million on the operating income. · Cash flow from operations ( before financing items and taxes) was EUR 1,550 ( 1,150) million. IFRS 16 had a positive impact of EUR 119 million to the cash flow from operations ( before financing items and taxes). · The Board proposes a dividend of EUR 1.70 per class B share for the year 2019.
KONE has adopted a new IFRS 16 and IFRIC 23 effective January 1, 2019 using the modified retrospective approach and the comparative figures have not been restated.
Business outlook for 2020
In 2020, KONE sales is estimated to grow by 0-6% at comparable exchange rates as compared to 2019. The adjusted EBIT is expected to be in the range of EUR 1,250-1,400 million, assuming that foreign exchange rates would remain at the January 2020 level. Foreign exchange rates are estimated to impact EBIT positively by around EUR 15 million.
KEY FIGURES 10-12/20 10-12/20 Change 1-12/201 1-12/201 Change 19 18 9 8Orders received MEUR 1,988.3 1,937.9 2.6% 8,399.8 7,797.0 7.7% Order book MEUR 8,051.5 7,950.7 1.3% 8,051.5 7,950.7 1.3% Sales MEUR 2,684.6 2,443.4 9.9% 9,981.8 9,070.7 10.0% Operating MEUR 356.4 292.5 21.8% 1,192.5 1,042.4 14.4% income ( EBIT) Operating% 13.3 12.0 11.9 11.5 income margin ( EBITmargin) Adjusted EBIT * MEUR 367.5 319.6 15.0% 1,237.4 1,112.1 11.3% Adjusted EBIT% 13.7 13.1 12.4 12.3 margin * Income before MEUR 366.0 301.2 21.5% 1,217.5 1,087.2 12.0% taxNet income MEUR 283.0 232.2 21.9% 938.6 845.2 11.1% Basic earnings EUR 0.54 0.45 21.2% 1.80 1.63 10.4% per shareCash flow from MEUR 385.7 331.6 1,549.6 1,150.1 operations ( beforefinancing itemsandtaxes) Interest MEUR -1,552.9 -1,704.0 -1,552.9 -1,704.0 -bearing netdebtEquity ratio% 46.5 49.9 46.5 49.9 Return on% 30.1 27.7 30.1 27.7 equityNet working MEUR -856.0 -757.8 -856.0 -757.8 capital ( includingfinancing itemsand taxes) Gearing% -48.6 -55.3 -48.6 -55.3
* In September 2017, KONE introduced a new alternative performance measure, adjusted EBIT, to enhance comparability of the business performance between reporting periods during the Accelerate program. Restructuring costs related to the Accelerate program are excluded from the calculation of the adjusted EBIT.
Henrik Ehrnrooth, President and CEO:
`` Solid earnings growth was the key highlight of the Q4 results. Our good sales growth in all of our businesses continued, with strongest growth in the quarter in the modernization business. Orders received grew slightly as a result of continued good growth in the volume business despite fewer major project orders booked in the quarter. What I am especially happy about is that our adjusted EBIT margin improved as a result of consistent pricing and productivity actions and savings from the Accelerate program. This has resulted in a positive development in the margin of orders received. I would like to thank everyone in the KONE team for their commitment in making 2019 a successful year of profitable growth.
We are differentiating by creating more value for customers. During the current strategy period we have focused on how to create value for customers in new ways. The aim of all of our development is to help our customers succeed in their business. We have rolled out our new services, improved our sales approach in modernizations and most recently launched an exciting new elevator offering, KONE DX Class elevators. Our renewed portfolio of services and solutions helps our customers develop, construct and maintain competitive buildings that are easily upgradeable to fulfill the latest user requirements now and in the future. It is our customers who daily judge our differentiation in relation to our competition. Here we can see very encouraging results. The value per service contract and the average price of new equipment sold has started to increase - this demonstrates the success of our approach. The improved differentiation together with our reputation as a reliable partner is what has driven this. I am also happy that we have again been externally recognized for the work we have done to be the leader in sustainability in our industry. Sustainability is an increasingly important focus area for our customers and also a source of differentiation for us.
We enter the year 2020 in a good position. Our competitiveness is strong, we have a solid order book and the outlook for services continues to be positive. We expect KONE's sales to grow by 0-6% at comparable exchange rates in 2020. Earnings growth is expected to continue with the adjusted EBIT expected to be between EUR 1,250 and 1,400 million. We will continue to invest in renewing ourselves to be able to deliver better outcomes to our customers every day. I am confident that we can continue our strong development in 2020. ''
Operating environment in October-December 2019
The global new equipment market grew slightly in units compared to the fourth quarter of 2018. In Asia-Pacific, the new equipment market grew slightly. In China, infrastructure and residential segments developed positively, while non-residential segment declined. Government continued to balance between supporting the economic activity and restricting the residential market. Overall, the Chinese new equipment market grew slightly in units. In the rest of Asia-Pacific, the new equipment market returned to slight growth with slight growth in some Southeast Asian countries, stable development in India and Australian market bottoming out. In the EMEA region, the new equipment market grew slightly. The new equipment market in Central and North Europe grew slightly. In South Europe, the market grew slightly with growth in most of the countries in the area. In the Middle East, the market declined due to continued uncertainty in the area. In North America, the new equipment market was stable on a high level.
Global service markets continued to develop positively. Both the maintenance and the modernization markets saw growth across the regions, with the strongest rate of growth seen in Asia-Pacific.
Pricing trends remained varied during October-December. In China, competition remained intense but pricing was rather stable in the new equipment market. In the EMEA region, the pricing environment improved slightly. In North America, competition continued to be intense.
Operating environment in January-December 2019
The global new equipment market grew slightly in units compared to the previous year. In Asia-Pacific, the new equipment market grew slightly. In China, infrastructure and residential segments developed positively, while non-residential segment declined. Government continued to balance between supporting the economic activity and restricting the residential market. Overall, the Chinese new equipment market grew slightly in units. In the rest of Asia-Pacific, the new equipment markets were stable. In the EMEA region, the new equipment market grew slightly. The market grew slightly both in Central and North Europe as well as in South Europe. In the Middle East, the market continued to decline. In North America, the new equipment market was stable on a high level.
Global service markets continued to develop positively. Both the maintenance and the modernization markets saw growth across the regions, with the strongest rate of growth seen in Asia-Pacific.
Pricing trends remained varied during January- December 2019. In China, competition remained intense but pricing was rather stable in the new equipment market. In the EMEA region, the pricing environment improved gradually. In North America, competition intensified somewhat.
Market outlook 2020
The new equipment market is expected to be relatively stable or to grow slightly. However, the coronavirus outbreak creates uncertainty to the outlook. In China the market is expected to be relatively stable or to grow slightly in units ordered, while in the rest of the Asia-Pacific, the market is expected to grow slightly. The new equipment markets in North America and the Europe, Middle East and Africa region are expected to be rather stable.
Maintenance markets are expected to see the strongest growth rate in Asia-Pacific and to grow slightly in other regions.
The modernization market is expected to grow slightly in North America and in the Europe, Middle East and Africa region and to develop strongly in Asia-Pacific.
Business outlook 2020
In 2020, KONE's sales is estimated to grow by 0-6% at comparable exchange rates as compared to 2019. The adjusted EBIT is expected to be in the range of EUR 1,250-1,400 million, assuming that foreign exchange rates would remain at the January 2020 level. Foreign exchange rates are estimated to impact EBIT positively by around EUR 15 million.
The outlook is based on KONE's maintenance base and order book as well as the market outlook. KONE has a solid order book for 2020 and the service business is expected to grow driven by KONE's growing and aging installed base and overall positive market outlook. Targeted pricing and productivity actions, which have impacted the margin of orders received positively, are expected to support profitability together with around EUR 50 million of savings from the Accelerate program. Increasing labor and subcontracting costs as well as the investment in building our capability to sell and deliver digital services and solutions are the main headwinds for the adjusted EBIT in 2020. Furthermore, the recent coronavirus outbreak creates additional uncertainty. KONE is also expecting to have around EUR 40 million of restructuring costs related to the Accelerate program in the final year of the program. These costs are excluded from the adjusted EBIT.
The Board's proposal for the distribution of profit
The parent company's non-restricted equity on December 31, 2019 was EUR 2,508,732,086.60 of which the net profit for the financial year is EUR 846,898,465.29.
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 1.6975 be paid on the outstanding 76,208,712 class A shares and EUR 1.70 on the outstanding 441,633,543 class B shares, resulting in a total amount of proposed dividends of EUR 880,141,311.72.
The Board of Directors further proposes that the remaining non-restricted equity, EUR 1,628,590,774.88 be retained and carried forward. The Board proposes that the dividends be payable on March 5, 2020. All the shares existing on the dividend record date are entitled to dividend for the year 2019 except for the own shares held by the parent company.
Press and analyst meetings
A meeting for the press, conducted in Finnish, will be held on Tuesday, January 28, 2020 at 2:15 p.m. EET.
A meeting for analysts, conducted in English, will begin at 3:45 p.m. EET and will be available as a live webcast on www.kone.com. An on-demand version of the webcast will be available on www.kone.com later the same day. The meeting can also be joined via a telephone conference.
US callers: +1 323-794-2551UK callers: +44 ( 0) 330 336 9105Finnish callers: +358 ( 0) 9 7479 0361 Participant code: 5050285
Both meetings will take place in KONE Building, located at Keilasatama 3, Espoo, Finland.
For further information, please contact: Sanna Kaje, Vice President, Investor Relations, tel. +358 204 75 4705
Sender:
KONE CorporationHenrik EhrnroothPresident and CEO
Ilkka HaraCFO | business |
Analyst: Markets are too complacent over 'Lehman-type ' coronavirus risks | Markets are underestimating the potential fallout of the coronavirus outbreak, which could be a `` Lehman-type '' moment for the global economy, according to economic research firm AdMacro.
Chinese officials on Tuesday confirmed that the death toll from the virus, which originated in the city of Wuhan, had reached 106 with 4,515 people infected.
Global equity markets sold off sharply on Monday, but began to stabilize on Tuesday, with stocks still hovering close to recent record highs. Many market analysts have pointed to the 2003 SARS outbreak as an indication of the short-term nature of any potential economic fallout.
SARS affected around 8,000 people and resulted in nearly 800 fatalities, and was estimated to have reduced growth in China in 2003 by 1 percentage point while trimming 0.5 percentage point off growth across East Asia.
However, AdMacro Head of Research Patrick Perret-Green told CNBC Tuesday that the markets were being `` far too casual '' given the growth of China's economy since 2003, along with the increase in its urban population and accessibility of travel.
With 60% of China's population now in urban areas, compared to 60% rural in 2003, and passenger journeys by air increasing to 660 million from 80 million, he suggested that the cost of shutting down huge cities had not been properly priced in.
`` Xinjiang province, 56 million people where enterprises are shut for another week, Shanghai, 24 million people, Hangzhou is another 11 million people, '' Perret-Green said.
`` A huge tranche of the urban population is shut down, a huge tranche of business, so a lot of Chinese companies are just going to have to declare force majeure and shut down orders. ''
In a statement issued Monday, Perret-Green said the coronavirus outbreak represented a `` Lehman-type moment tipping point '' which could `` tip the global economy into effective recession. ''
A key difference between 2003 and now is the size and significance of the Chinese economy within the global picture.
Perret-Green highlighted that at the end of 2002, Chinese GDP ( gross domestic product) was estimated at around $ 1.5 trillion, 4% of global GDP. By the end of 2019, this was $ 14.3 trillion and over 16% of global GDP. In the aftermath of the SARS outbreak, China was still experiencing rapid growth having just joined the World Trade Organization ( WTO).
`` If the WHO ( World Health Organization) is correct and the virus impacts for months, it doesn't seem unreasonable that it could knock at least 1% off China's growth and 0.5% off global growth, '' Perret-Green said in a note published Friday.
`` Indeed, we believe that it could be much greater than that. Such is China's interconnectivity with the global economy. With global growth set to remain weak — the World Bank is forecasting only 2.5% this year — it's not inconceivable that China could tip the global economy into an effective recession. ''
Developing Asia recovered at an 11% GDP growth pace after the summer of 2003, indicating that the negative effects were somewhat short-lived.
However, Neil Mackinnon, global macro strategist at VTB Capital, also highlighted that equity markets had recently recovered from the dotcom bubble and global growth was in a post-recession upswing, with Chinese GDP growth benefiting from an investment boom.
In a note Tuesday, Mackinnon said VTB was `` wary of good news '' and short-term rebounds in equity markets.
`` Now, equity markets especially in the U.S. are historically over-valued and at record highs. The 'Everything Bubble ' has not yet burst and growth rates for the advanced economies is still comparatively soft a decade or so on from the Great Financial Crisis, '' Mackinnon said.
`` China is now on a medium-term slower growth trajectory as it makes the transition to a consumer and services-led economy, while at the same time it tries to deleverage its high debt-GDP ratio. ''
Mackinnon argued that comparing mortality rates on the basis that the current death toll is relatively small on a percentage basis might be `` misguided, '' especially given the lockdown of major cities by Chinese authorities.
`` The point for equity investors is that the economic and financial risks are tilted to the downside, even though everyone rightly hopes that the coronavirus remains a short-term event that is treatable and containable, '' he concluded.
Not all analysts are so worried, however. UBS Global Wealth Management Head of Equity and Credit, Hartmut Issel, told CNBC Tuesday that the Swiss lender does not expect the economic blowback to last beyond the first quarter of 2020 despite the hindrance to production of the now prolonged Lunar New Year holiday.
`` We see these kinds of pullbacks, the dips, more as an opportunity, especially in emerging markets and especially in Asia ex-Japan, '' he told CNBC's `` Squawk Box Asia, '' adding that the Chinese government has learned from similar past events and has become more adept at containing the virus.
Health experts on Tuesday appealed for calm, with WHO spokesperson Christian Lindmeier telling CNBC that the coronavirus is a health emergency in China, but not globally, while International SOS regional medical director of Northern Europe said it `` appears to be very well contained. ''
Analysts stateside also took a more optimistic view of the outlook for global markets on Tuesday, telling CNBC's Patti Domm that the current sell-off in equities could be 5% to 10% but is unlikely to extend beyond that due to the backstop provided by easy monetary policies from the U.S. Federal Reserve and other central banks around the world.
CORRECTION: This article has been updated to show that China's GDP was estimated at around $ 1.5 trillion, or 4% of global GDP. By the end of 2019, the figure was $ 14.3 trillion and more than 16% of global GDP. | business |
Dubai port operator DP World suspends staff travel to China | Companies including Facebook, LG Electronics and Standard Chartered are among those restricting travel for employees to China, where the death toll from a flu-like virus rose above 100 on Tuesday.
`` All travel to China is suspended until further notice, unless for emergency purposes. We continue to monitor WHO and Government advice, '' a spokesman at Dubai state-controlled DP World told Reuters on Tuesday.
DP World's website shows it operates at three ports in mainland China and at another port in Hong Kong.
Chinese nationals would be permitted to travel to China if they needed to go home, the spokesman added.
`` All our ports are complying with the official government health ministry directive for operations, staff health precautions and risk mitigation plans, '' he said, adding that ports need to continue to operate for welfare and health purposes, including the import of food and medicine.
Dubai's Emirates airline has advised its flight crew to stay in their hotels when on a layover in China due to the coronavirus, an internal notice seen by Reuters showed.
The United States has warned against travel to China, where the coronavirus outbreak has left millions of Chinese stranded during the country's biggest holiday of the year.
( Reporting by Alexander Cornwell, writing by Davide Barbuscia; editing by Jason Neely and Alexander Smith) | business |
Rakus: One Latvian citizen has expressed wish to return home from Wuhan | RIGA, Jan 28 ( LETA) - A Latvian citizen has expressed the wish to return to Latvia from the Chinese city of Wuhan from where the new coronavirus epidemic is currently spreading, Foreign Ministry representative Guna Japina told members of the Seima Social and Labor Affairs Committee on Tuesday.
She said that the Foreign Ministry is working with French authorities to arrange the Latvian citizen's repatriation.
Japina said that a total of 67 Latvians have declared themselves as residents of China and eight people have registered for a trip to China.
As reported, in case the new coronavirus which is currently spreading in China reaches Latvia, adult patients will be taken to Riga Eastern Clinical University Hospital ( Eastern Hospital, RAKUS) and kids to Children's Clinical University Hospital ( BKUS), Liene Cipule, head of the Emergency Medical Service, told members of the Saeima Social and Labor Affairs Committee on Tuesday.
Latvia's regional hospitals, meanwhile, have been advised to stock up on additional protective materials, which will be provided in a week, Cipule said.
Cipule said that although there are still safety measures to be taken, it is clear that all the university hospitals are fully prepared for cases of coronavirus.
`` Most importantly, it would be necessary to detect the first case, '' Cipule said. Jurijs Perevoscikovs, head of disease risk analysis and prevention department at the Center for Disease Prevention and Control, explained to lawmakers that in the event someone falls ill with the infection, it would be necessary to establish all the patients ' contacts, including with people who might not be relatives or close persons to the patient.
While the virus has not yet reached Latvia, the Emergency Medical Service will be coordinating prevention efforts and the Center for Disease Prevention and Control has been tasked with informing the public, government and private organizations. Perevoscikovs confirmed that medical staff and institutions are informed about the safety measures that have to taken if the virus is found in Latvia.
According to the current procedure, if a patient seeks medical assistance for a respiratory infection and it is established that the person has been to Wuhan in China, control measures are launched, Perevoscikovs. Patients who test positive for the virus would be hospitalized and isolated, the cases would be reported to the Center for Disease Prevention and Control. RAKUS has been tasked with running lab tests and treating the coronavirus patients.
RAKUS representative Angelika Krumina reassured lawmakers that the hospital is `` absolutely ready '' to take isolation measures and carry out laboratory tests. The hospital is also ready for an increased inflow of patients. Staff have been provided with individual protection materials.
© Pakistan Press International, source Asianet-Pakistan | business |
Treasury yields rise after stronger-than-expected consumer sentiment | Treasury yields climbed on Tuesday following a rally for fixed income assets amid intensifying concerns over the Chinese coronavirus.
The yield on the benchmark 10-year Treasury note, which moves inversely to price, rose about four basis points to around 1.646%, while the yield on the 30-year Treasury bond was also higher at around 2.098%.
Rates climbed higher after data showed consumer confidence in the U.S. grew more than expected in January. The Conference Board's consumer confidence index rose to 131.6 this month from 126.5 in December. Economists polled by Dow Jones expected consumer confidence to rise to 128.
However, earlier in the session, the three-month Treasury bill briefly inverted with the 10-Treasury note for the first time since October Tuesday morning.
`` We don't think the move in rates and the yield curve is reflective of the U.S. economy going into recession, '' Gregory Faranello, head of U.S. rates at AmeriVet Securities. `` We just think it's reflective of the fact that now the market is nervous off the back of the coronavirus. ''
Treasury yields had fallen in the past week on increased coronavirus fears as Chinese authorities confirmed that there were now more than 4,500 confirmed cases of coronavirus, with 106 deaths.
Multiple cases of the deadly pneumonia-like virus have been confirmed in Thailand, Vietnam, South Korea, Malaysia, Japan, Australia, France and the United States. Germany, Cambodia and Sri Lanka all reportedly confirmed their first cases of the virus on Monday.
The rapid outbreak of the coronavirus spooked financial markets in the previous session, with stock markets around the world sharply lower.
Investors are likely to closely monitor the Federal Reserve's first meeting of the year on Tuesday, with the U.S. central bank's two-day meeting widely expected to keep interest rates unchanged.
The Federal Open Market Committee ( FOMC) held the target range for the federal funds rate at 1.5-1.75% in December, following three consecutive rate cuts.
The U.S. Treasury is set to auction $ 26 billion in 52-week bills, $ 32 billion in seven-year notes and $ 20 billion in two-year floating-rate notes ( FRNs).
— CNBC's Fred Imbert contributed reporting. | business |
Bond Rally Takes Breather Despite Coronavirus Fears | By Julia-Ambra Verlaine
A global bond rally paused Tuesday after fears around the fallout from a viral outbreak in China pushed yields on U.S. government debt to their lowest levels in months.
The yield on the benchmark 10-year Treasury reached a low around 1.57% Tuesday, according to Tradeweb, before recovering toward 1.65%. That is up from 1.605% Monday.
Some investors said they were waiting for more information before evaluating the potential economic damage from the coronavirus's spread. They said it would take a pandemic to dent global consumption and growth.
`` To the degree coronavirus is symptomatic of... unknowns in the marketplace, it is way too premature to assess a view around a recession, `` said Bob Browne, chief investment officer at Northern Trust Corp. `` You need to see a marked slowdown in U.S. economic growth. ''
In one sign investors haven't given up riskier assets, many are holding on to junk bonds. Both Northern Trust and Aviva Investors said that they remained in high-yield bonds and that it would take a more severe drop in stocks before reconsidering.
Investors often sell lower-rated debt when they are nervous about the economy.
`` The virus is not causing us to change positioning yet, '' said Kevin Matthews, the global head of high yield at Aviva Investors, an asset manager with $ 440 billion under management.
While analysts haven't dismissed the severity of the virus, some have noted that markets are increasingly facing external stresses such as extreme weather and geopolitical events. The Bank for International Settlements said climate-related risks could be a potential source of the next financial crisis in study published in January, dubbing them `` green swans. ''
`` Coronavirus has become the proximate driver -- it is the latest hamster spinning the macro risk wheel around, '' said Alex Roever, head of U.S. rates strategy at JPMorgan. `` Two weeks ago it was Middle East tensions, and two weeks on it may be something else. The bond markets were quite sensitive to macro risks before the virus, and are likely to remain that way. ''
Investors and analysts are also studying previous outbreaks as point of reference -- even though many aren't entirely comparable given different mortality rates, incubation periods and rates of transmission.
Charles Schwab analysts found the MSCI World Index, which tracks developed-market stocks, declined 5.5% in the month after January 2016, when the Zika virus spread to several countries, but returned 2.9% over the course of six months. Morningstar analysts came to a similar conclusion, finding that, among the companies they covered, none suffered a long-term effect from the 2002-2003 SARS outbreak.
Write to Julia-Ambra Verlaine at Julia.Verlaine @ wsj.com
| business |
ZTE: helps China Mobile with the network construction in Lei Shen Shan Hospital in Wuhan | Dedicated to address new coronavirus pneumonia in Wuhan.
ZTE Corporation ( 0763.HK/000063, SZ), a major international provider of telecommunications, enterprise and consumer technology solutions for the Mobile Internet, today announced that ZTE helps China Mobile with the network construction in Lei Shen Shan Hospital in Wuhan, to improve the capability to address new coronavirus pneumonia.
This hospital was named Lei Shen Shan Hospital.
After receiving the notifications of the hospital's location selection, ZTE and Hubei branch of China Mobile have quickly and carefully analyzed the current network situation. ZTE has developed a network construction solution, and arranged for technical personnel to carry out network expansion and construction on site on the 26th. The hospital will meet the communication and video transmission requirements of tens of thousands of people once it will be completed.
In this project, the 5G network has been also commissioned, which can be used for telemedicine support and improve patient treatment efficiency. In the future, capacity expansion and 5G indoor distribution will be carried out simultaneously with the construction of the Lei Shen Shan Hospital. It is estimated that more than 25,000 people can communicate with each other at the same time.
In the Wuhan epidemic control battle, ZTE has attached great importance to providing comprehensive support for the supply chain, communications support, and on-site services. ZTE has arranged hundreds of professionals to support operators and for emergency delivery of key equipment spare parts from Shenzhen to ensure the secure and stable operation of the communications network.
With great commitment to the epidemic situation in Wuhan and China, ZTE fully supports operators in guaranteeing communications in the critical period, building an information bridge for life treatment.
ZTE is a provider of advanced telecommunications systems, mobile devices and enterprise technology solutions to consumers, operators, companies and public sector customers. As a part of ZTE's strategy, the company is committed to providing customers with integrated end-to-end innovations to deliver excellence and value as the telecommunications and information technology sectors converge. Listed in the stock exchanges of Hong Kong and Shenzhen ( H share stock code: 0763.HK / A share stock code: 000063.SZ), ZTE sells its products and services in more than 160 countries.
To date, ZTE has obtained 35 commercial 5G contracts in major markets, such as Europe, Asia Pacific, Middle East and Africa ( MEA). ZTE commits 10 percent of its annual revenues to research and development and takes leadership roles in international standard-setting organizations.
( C) 2020 Electronic News Publishing, source ENP Newswire | business |
India, Bangladesh consider evacuating citizens from China's Wuhan | ( Adds comments from students)
NEW DELHI, Jan 28 ( Reuters) - India and Bangladesh said on Tuesday they were working on evacuating their citizens from the Chinese city of Wuhan, the epicentre of a coronavirus outbreak that has killed more than 100 people.
Indian state airline Air India is on standby to evacuate an estimated 250 Indians from Wuhan in Hubei province, local media reported earlier.
`` We have begun the process to prepare for evacuation of Indian nationals affected by the situation arising out of Corona-2019 virus outbreak in Hubei Province, China, '' Indian Foreign Ministry spokesman Raveesh Kumar said in a tweet.
He said Indian authorities were working out the logistics of evacuating people from the city of 11 million people that is under a lockdown.
In Bangladesh, Foreign Minister Abdul Momen said talks were underway to bring back Bangladeshi citizens from China.
The death toll from the virus rose to 106 on Tuesday as authorities scrambled globally to curb its spread and U.S. health authorities advised travellers to avoid all non-essential travel to China. A growing number of countries have said they will evacuate their citizens from Wuhan.
The virus has infected thousands of people in China and spread to more than a dozen countries, including the United States.
There are no confirmed cases of the virus yet in India, Health Minister Harsh Vardhan said on Tuesday, adding authorities were screening suspected patients in multiple cities. All hospitals have been asked to keep those suspected to have the virus in isolation wards, he added.
`` We are taking all precautions against it, '' said Vardhan.
Seven major airports in India including New Delhi and Mumbai were screening all passengers coming into India from China.
No one in Bangladesh has been found to have the virus yet either, its health minister, Zahid Maleque, told reporters, but the government was prepared if infections surfaced.
Hundreds of those trapped in Wuhan included students from India and Bangladesh.
Shashi Kumar Jaiman from India's Gujarat state said she was worried for her daughter, who is studying medicine in Wuhan.
`` We have been speaking to her every day, but she has not been contacted by the Indian government or the Indian embassy in Beijing so far, '' said Jaiman, adding she hoped to get her daughter home soon.
Some Bangladeshi students took to social media to ask about evacuation.
Momen, the Bangladeshi foreign minister, said the government was keeping a close watch on people coming home from China.
`` We are keeping their records so that we can track them if something goes wrong, '' he said.
Officially known as `` 2019-nCoV '', the coronavirus can cause pneumonia, but it is too early to know just how dangerous it is and how easily it spreads. ( Reporting by Sanjeev Miglani, Ruma Paul, Shilpa Jamkhandikar and Zeba Siddiqui Editing by Mark Heinrich and Gareth Jones) | business |
White House tells airlines it may suspend all China-US flights amid coronavirus outbreak | White House officials have told U.S. airlines the Trump administration is considering suspending flights from China to the U.S. amid an escalating outbreak of a new coronavirus that has infected thousands of people across the world, people familiar with the matter said.
The Trump administration is looking at a variety of measures to contain the fast-spreading virus, U.S. health officials told reporters on a conference call Tuesday.
White House officials called executives at major U.S. carriers on Tuesday, telling them that a temporary ban on China flights is on the table, according to people familiar with those conversations.
As of Tuesday evening, the Trump administration had not taken that step and there was no guarantee that it would do so.
Two of the people said the White House told them it doesn't immediately plan to ban China air travel, but administration officials are constantly evaluating the situation.
United Airlines, which has the most service of the U.S. airlines to Hong Kong and mainland China with about a dozen daily flights, on Tuesday announced it would cancel dozens of flights next month to Hong Kong and mainland China as the outbreak worsens. The Chicago-based airline said it has experienced a `` significant decline in demand for travel to China. '' United and its rivals Delta and American are waiving cancellation and change fees for travelers booked to China.
The restrictions could affect flights into and out of China, as well as airports across the United States, administration officials said. They declined to be named because no final decision has been made.
A senior staff meeting was held at the White House on Monday during which the restrictions were discussed.
Coronavirus live updates: Outbreak has killed 106 people and infected nearly 4,700
The Centers for Disease Control and Prevention expanded its China travel warning Tuesday, now cautioning all U.S. travelers to avoid the entire country.
Previously, the health agency had advised against nonessential travel to the city of Wuhan, the epicenter of the outbreak.
The Department of Health and Human Services said the CDC is expanding screening for the virus from five to 20 U.S. airports. When asked about the potential for additional travel restrictions, HHS Secretary Alex Azar said `` it's important to not take anything off the table. ''
The new coronavirus has killed at least 106 people in China and infected about 4,700 across the world in less than a month, according to health authorities in China and other countries.
Markets fell sharply on Monday amid fears that the new virus could have an impact on global growth. The major indexes rebounded Tuesday, fueled by gains in the financial and tech sectors.
President Donald Trump said last week the U.S. has the new coronavirus `` under control. '' | business |
Coronavirus vs. SARS: Health experts on the key differences | The continued spread of the coronavirus is `` more infectious '' but less severe than the SARS epidemic, health experts have told CNBC.
The direct comparison comes as market participants try to understand the potential economic impact of the latest outbreak.
Everything indicates that the mortality rate of coronavirus is lower when compared to the outbreak of SARS in 2003, Peter Piot, professor of global health and director at London School of Hygiene and Tropical Medicine, told CNBC's `` Squawk Box Europe '' on Tuesday.
But, if 1 million people become infected by the coronavirus — `` which is not impossible '' — a 1% or 2% mortality rate would translate as 10,000 or 20,000 deaths, Piot said.
Chinese health authorities confirmed Tuesday that the coronavirus outbreak had infected 4,515 people, with 106 reported deaths. It means the virus has killed just over 2% of those that have been infected.
Most of those that have died as a result of the coronavirus have had underlying health conditions — such as hypertension, diabetes or cardiovascular disease — that weakened their immune systems, according to World Health Organization ( WHO) Director-General Tedros Ghebreyesus.
The WHO declined at two emergency meetings last week to declare the coronavirus outbreak a global health emergency, but the United Nations health agency has said that it is an emergency in China.
Coronaviruses are a large family of viruses that usually infect animals but can sometimes evolve and spread to humans.
Symptoms for people tend to include fever, coughing and shortness of breath, which can progress to pneumonia. Physicians have compared it to the 2003 outbreak of SARS, which had a short incubation period of two to seven days.
During the period of infection for SARS ( 2002-2003), there were nearly 8,098 reported cases and 774 deaths, according to WHO. It means the virus killed roughly one in 10 people who were infected.
Late last week, Former FDA Commissioner Scott Gottlieb told CNBC that the outbreak of the coronavirus, which was first identified in the Chinese city of Wuhan, appeared to be more contagious than SARS — but less severe.
The SARS outbreak contributed to a slump in global markets in early 2003, but stocks recovered once the outbreak was contained. The S & P 500 dropped roughly 10% from the start of the year until mid-March but finished up more than 26% for the whole year.
To be sure, the market conditions in 2003 were different than in 2020, with stocks still at a lower level following the tech bubble and not coming off a decade-long bull market. The SARS outbreak was also accompanied by another major international factor for financial markets in 2003, as the U.S. invaded Iraq in March.
On Monday, stock markets around the globe dropped sharply amid intensifying concern about the economic impact of the coronavirus. On Wall Street, the Dow Jones industrial average registered its biggest one-day fall since October, wiping out the 30-stock average's gains for the year in the process.
`` The biggest difference is that today there is far more transparency and exchange of information because then, in China, there was some suppression of information in the beginning — that's no longer the case, '' Piot said.
He explained a network of laboratories and disease surveillance had been set up in recent years, with greater investments in the poorest countries `` but it is not enough. ''
Multiple cases of the coronavirus have been confirmed in Thailand, Vietnam, South Korea, Malaysia, Japan, Australia, France and the United States.
Germany, Cambodia and Sri Lanka all reportedly confirmed their first cases of the virus on Monday.
`` It is a global health emergency. There is no doubt about it when you consider that it one day, yesterday, the number of new cases doubled overnight and there are now over 100 deaths and many countries have experienced cases, '' Piot said.
When asked whether WHO could declare an official public health emergency of international concern over the coming days, Christian Lindmeier, a spokesperson for WHO in Geneva, replied: `` I think we are looking at a revaluation very soon. ''
`` A public health emergency of international concern, when it gets declared, very often triggers a political signal, '' Lindmeier said, before adding: `` It shows the world leaders that international cooperation is now necessary. ''
— CNBC's Jesse Pound contributed to this report. | business |
7 Interesting Ways People Are Dealing with the Coronavirus in Wuhan | The people of Wuhan are a tenacious lot it appears. Far from letting the current outbreak of 2019-nCoV defeat them, they are finding ways to cope.
With all the media coverage the recent spread of coronavirus is receiving, it is understandable to feel downbeat about the plight of the people of Wuhan. However, as you are about to find out, the citizens of the city are far from broken!
RELATED: FIFTH CASE OF CORONAVIRUS INFECTION IN THE U.S. CONFIRMED
The current epidemic of coronavirus ( 2019-nCoV), unless you are not aware, is a novel form of the coronavirus. It has, to date, not been encountered before and, like other coronaviruses, comes from animals.
`` Many of those infected either worked or frequently shopped in the Huanan seafood wholesale market in the center of the Chinese city, which also sold live and newly slaughtered animals. New and troubling viruses usually originate in animal hosts. Ebola and flu are examples. '' - The Guardian.
`` Coronaviruses are a large family of viruses that can cause respiratory illnesses such as the common cold, according to the Centers for Disease Control and Prevention ( CDC). Most people get infected with coronaviruses at one point in their lives, but symptoms are typically mild to moderate. In some cases, the viruses can cause lower-respiratory tract illnesses such as pneumonia and bronchitis. `` - Live Science.
Other examples of coronaviruses in the past include Severe Acute Respiratory Syndrome ( SARS) and Middle Eastern Respiratory Syndrome ( MERS). The latter was originally believed to be transmitted from dromedary camels to humans, but it is now believed the original host was bats.
In 2002, SARS spread to around 37 countries around the world, infected around 8,000 and killed 750. MERS was less effective at passing from human to human and infected only 2,500 people.
But it was also far more lethal; of those infected about 35% died.
Infected individuals tend to show symptoms similar to a fever with a cough and difficulty breathing. From this point of view, it is very similar, initially, to the symptoms of SARS.
However, so far infected individuals have not shown signs of a runny nose, sneezing, sore throats or intestinal symptoms like diarrhea as seen in SARS.
Despite the lack of available effective treatment, most patients should be able to overcome the virus on their own. At present, most treatment involves making the patient comfortable and allowing them to get plenty of rest.
Most fatal cases of the new coronavirus have been older individuals who are 60 years of age or older. These patients also had pre-existing conditions that had suppressed or compromised their immune systems.
`` However, more recently, a young healthy man died in Wuhan, raising concern that the virus might be more dangerous than [ intially ] thought, according to The Washington Post ''. - Live Science.
So, without further ado, here are some strategies people in the city of Wuhan, China are employing to deal with the threat of the new coronavirus. These are but a few examples we could find on the internet and is, as such, far from exhaustive.
This list is also in no particular order.
Çin, Wuhan’ daki Instagram storylerine bakıyorum. En doğru haberi storyler verir dedim. Durum şu: pic.twitter.com/ggWFp4DUbH
In the very best spirit of humanity, these guys have decided to take their minds off their troubles by playing games! With their makeshift biohazard headgear donned, nothing stops the Chinese from playing one of their favorite games Mahjong.
Given the severity of the situation unraveling itself around them, this is probably a very good coping strategy. Good luck in more ways than one!
An antiviral spray against novel # coronavirus has developed in Shanghai Public Health Clinical Center, which can be put into throat as shield from virus. The spray can greatly help protect front-line medical staff, yet mass-production for public use is not available for now. pic.twitter.com/om75IyQHHq
Given the very serious health implications of contracting it, effective means of staving off the virus are now getting urgent. Thankfully some organizations like the Shanghai Public Health Clinical Center are starting to roll out methods of fighting back!
How effective it will actually be is, however, yet to be seen.
`` Jiāyóu! '' or’ '' Keep going! '' chanted from tower blocks across # Wuhan, a city of 11 million quarantined.Haunting. # coronavirus pic.twitter.com/6qDLSgPMPH
Here is another example of the tenacity of human beings when the going gets tough. The local citizens of several tower blocks in Wuhan currently under quarantine try to keep their spirits up by chanting `` keep going '' and `` hold on Wuhan '' to one another!
# coronavirus wuhans new hospital built in 16 hours incredible work for one room.They hope that they fit 1,000 people in so they can eat each other to get rid of the virus. pic.twitter.com/JkZxf1JNhz
A new hospital facility has been built in Wuhan to house around 1,000 patients suffering from the new coronavirus. What is most impressive is that the entire facility was erected in no more than 16 hours!
One day in # wuhan through a photographer’ s lens # coronavirus pic.twitter.com/myzIaA098c
This chap risks his own life, and likely imprisonment, to show the world what the streets of Wuhan currently look like at the height of the coronavirus outbreak. It is fascinating to see the streets effectively emptied as residents are currently put under quarantine.
How to survive staying indoors during # coronavirus lockdown according to these very important videos making their rounds on Chinese social media. Firstly: don't be afraid to express your feelings and get in touch with your emotions. pic.twitter.com/xd8yj73dtx
This humorous video proves that the citizens of Wuhan's spirits are far from being broken. Having very few other options for things to do, this individual decided to make their own entertainment using nothing more than their window's view and a sock puppet!
Stay safe out there # coronavirus pic.twitter.com/2tP9HtjQSS
And finally, having the right safety equipment is important; especially during a viral outbreak like the new coronavirus. However, the way these guys have chosen to use ( well misuse) their PPE is a little questionable.
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By subscribing, you agree to our Terms of Use and Privacy Policy. You may unsubscribe at any time. | tech |
Germany Confirms First Coronavirus Case, May Be the First Human-To-Human Transmission in Europe | The man from Bavaria is believed to have contracted the virus through a work colleague visiting from China.
Germany has now been added to the list of countries with confirmed coronavirus cases. Spreading out from Wuhan, a city in Hubei province in China where the outbreak began, the coronavirus has been infecting more and more people around the world.
The man from the state of Bavaria in Germany contracted the virus from a colleague visiting from China.
This makes him the first reported coronavirus case in Europe to come from human-to-human transmission.
RELATED: FIFTH CASE OF CORONAVIRUS INFECTION IN THE U.S. CONFIRMED
The head of the Bavarian State Office for Health and Food Safety, Andreas Zapf, said that the woman ( the colleague) who was visiting Germany came from Shanghai, China and that she `` started to feel sick on the flight home on January 23. ''
🔴BREAKING NEWS: 2019 NCoV: Germany: Confirmed case is because of human to human transmission. | via @ AFP Japan: A man with 2019 NCoV had not been to China ( no travel history of travelling to China) | via @ AFP # Coronavirus # coronarvirues # CoronavirusOutbreak pic.twitter.com/HJV6SZBGT5
The woman had recently had her parents visit her in Shanghai, who come from the area nearby Wuhan, where the virus originated.
The man who contracted the coronavirus came in contact with his colleague from Shanghai while she was attending the company's training in Starnberg, in Germany.
# Coronavirus death toll climbs and virus continues to spread, reaching Germany for the first time pic.twitter.com/yDwKTDgJEu
The man had fallen ill with bronchitis-like symptoms over the weekend. The company where both colleagues work had been notified of their Chinese colleague's illness, knowing by then that she had coronavirus. Upon sharing the news with their German team, everyone who had been in close contact with her had to be checked.
It turns out the man in question did indeed have coronavirus. He is being closely monitored and is in a `` medically good state '' according to the health authority.
Germany confirms first human transmission of # coronavirus.https: //t.co/zBuMMJosuA pic.twitter.com/vcvcQULbg6
People who have been in contact with him and his colleague from China have been informed of possible symptoms, to know what to look out for.
Only a small number of the international coronavirus cases have stemmed from human-to-human transmission. Most infected people had either visited China recently, and a small number have contracted the virus from family members.
This is the first reported case in Europe of human-to-human transmission.
Confirmed # coronavirus cases worldwide as of January 28 - 7:00 GMT: China: 4527 & 106 deaths ( HK, Macau): 15Thailand: 14Taiwan: 6Japan: 5Singapore: 5Australia: 5U.S.: 5South Korea: 4Malaysia: 4France: 3Vietnam: 2Canada: 2Cambodia: 1Sri Lanky: 1Germany: 1Nepal: 1 pic.twitter.com/bnUEYbtQJQ
Currently, the death toll of the virus has reached 106, with over 4,500 confirmed cases in China alone. Globally, the number of infected people lies around 70, with numbers increasing each day.
There is currently no vaccine or precise treatment for the coronavirus. Biotech companies are rushing to try and create a vaccine.
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Tesla Offers Free Charging Amid Coronavirus in China | Tesla said it wants to help facilitate travel during the outbreak.
Tesla is helping its Chinese vehicle owners during the coronavirus outbreak by providing free supercharging throughout the country.
Electrek reported a notice appears on the screens of Tesla owners in China, saying it was offering free supercharging to facilitate travel during the outbreak.
`` From now on, we will temporarily open all Tesla vehicles to charge at the supercharging station for free until the epidemic is resolved. We hope that during this extraordinary period, you will be able to efficiently replenish electricity when needed and use the car smoothly. `` Tesla said after the epidemic eases it will notify drivers before restoring the vehicle to its initial configuration.
The move on the part of Tesla comes as the coronavirus spreads around the world. Originating in Wuhan, China, the virus is infecting thousands and killing more than 100. The current epidemic of coronavirus ( 2019-nCoV) is a novel form of the coronavirus. It's new and like other coronaviruses, comes from animals. Infected individuals tend to show symptoms similar to a fever with a cough and difficulty breathing.
Most patients are able to recover on their own, with treatment no more than making sure the infected person gets a lot of rest. People with pre-existing conditions that are suppressed or an immune system that is comprised face more risks. Most of the deaths were of people 60 years old or older.
Aiming to prevent transmission in public spaces in China, the government has instituted quarantines and halted public transportation in certain cities. Flights have been canceled and as has bus services. Luna New Year events have also been canceled.
Tesla has offered free supercharging in the wake of other disasters including Hurricane Irma in 2017, the California wildfires and after major hurricanes. It does mark the first time Tesla is doing it in China.
Despite the attention the electric vehicle maker is getting, efforts may not be that helpful to the people of China, particularly in cities where quarantines are in effect. As it stands the quarantine is affecting 50 million people and that could grow if the virus continues to spread.
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By subscribing, you agree to our Terms of Use and Privacy Policy. You may unsubscribe at any time. | tech |
Starbucks ( SBUX) earnings Q1 2020 beat estimates | Starbucks on Tuesday reported quarterly earnings that beat analysts ' expectations, but investors focused on its warning that the Wuhan coronavirus outbreak could deal a blow to its fiscal 2020 outlook.
Shares of the company fell less than 1% in extended trading.
The coffee chain said it has closed more than half of its Chinese locations but expects that it will be temporary.
`` The magnitude of the impact will depend on the duration of store closures as we work with local authorities to manage the situation and protect our partners and customers, '' Chief Financial Officer Pat Grismer told analysts.
The company had planned to raise certain aspects of its forecast but decided against it once the virus started to spread, forcing store closures.
Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
Starbucks reaffirmed its fiscal 2020 forecast but said it was excluding the impact of coronavirus. Under its current forecast, its fiscal 2020 revenue is expected to rise between 6% and 8% and global same-store sales growth will be in a range of 3% to 4%.
`` The company will update its guidance for fiscal 2020 when we can reasonably estimate the impact of the coronavirus, '' Starbucks said in the earnings release.
The company also said that it expects that the virus will `` materially affect '' its results for the fiscal second quarter and fiscal 2020. Executives said that Chinese locations that are still open have seen sales slow down, compared to historical numbers.
Grismer said that the latest it would update its forecast would be April 28, when the company announces its fiscal second-quarter results. China accounted for 10% of Starbucks ' revenue during its first quarter.
The concerns over the spreading outbreak overshadowed a solid fiscal first quarter that included one of its strongest holiday seasons ever.
The global coffee chain reported fiscal first-quarter net income of $ 885.7 million, or 74 cents per share, up from $ 760.6 million, or 61 cents per share, a year earlier.
Excluding the impact of restructuring and impairment costs and other items, the global coffee chain earned 79 cents per share, topping the 76 cents per share expected by analysts surveyed by Refinitiv.
Net sales rose 7% to $ 7.1 billion, meeting expectations. U.S. same-store sales increased by 6%, boosted by more customers visiting its cafes. The company attributed the traffic bump to the popularity of new cold drinks, like the Pumpkin Cream Cold Brew and the Irish Cream Cold Brew, timed for the holiday season.
Chief Operating Officer Roz Brewer said that the chain will introduce a sandwich with a meatless patty in the U.S. and Canada later this year. A week ago, Starbucks shared its long-term goal of becoming `` resource positive, '' meaning that it would store more carbon than it emits, eliminate waste and provide more freshwater than it uses. Part of its plan to reach such an ambitious goal includes adding more plant-based menu options.
About 1.4 million U.S. customers joined Starbucks ' loyalty program, up 16% from a year ago. Starbucks Rewards now counts 18.9 million Americans as active members.
Sales at Chinese locations open at least a year increased by 3% as Starbucks faces greater competition. Chinese rival Luckin Coffee, which recently surpassed Starbucks as the largest coffee chain in China, has been putting pressure on business in Starbucks ' second-largest market. Starbucks expects to add 2,000 net new locations worldwide in fiscal 2020.
Mobile orders in China accounted for 15% of China's total revenue, up 10% from the previous quarter. Delivery accounts for 9% of those sales. Starbucks has a delivery partnership with e-commerce giant Alibaba in China, where beverage delivery is more popular than in the U.S.
The first coronavirus patient was flagged on Dec. 31. Since then, the virus has spread rapidly, with more than 4,600 confirmed cases worldwide, with the majority concentrated in mainland China. Global health authorities are still working out how to best contain the deadly virus, making it difficult for companies like Starbucks to predict how long it will affect their businesses.
Read the full earnings release here. | business |
US fast-tracks coronavirus vaccine, hopes to start trial in three months | U.S. health officials are fast-tracking work on a coronavirus vaccine, hoping to start an early-stage trial within the next three months, the Trump administration said Tuesday.
That timeline is optimistic, and a phase 1 trial does not mean `` you have a vaccine that's ready for deployment, '' said Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, an agency within the Department of Health and Human Services. It could take a year or more before a vaccine is ready for sale to the public, he said.
`` It will take three months to get it into the trial, three months to get safety, immunogenicity data, '' Fauci said during a press briefing on the nation's response to the coronavirus. The virus has killed 106 people in mainland China and infected nearly 4,700 worldwide, including in the United States.
`` Then you move into phase 2. What we do from that point on will be determined by what has happened with the outbreak over those months, '' he said. `` We are proceeding as if we will have to deploy a vaccine. In other words, we are working on the worst scenario that this becomes a bigger outbreak. ''
The National Institutes of Health is working with biotech company Moderna to develop the vaccine using the current strain of the coronavirus, Fauci said, adding that Chinese health authorities were able to isolate the virus and have shared its sequence on a public database.
`` Given the technology of the 21st century, we were able to use that sequence, pull out the genes of the glycoprotein spike of the particular coronavirus and make that the immunogen to be used in a vaccine, '' Fauci said.
There are currently no proven therapies for the novel coronavirus, which authorities believe originated from a seafood market in China. Hong Kong researchers claimed Tuesday they have already developed a vaccine for the virus but warned that it will `` take months '' to test the vaccine on animals and another year to conduct trials on humans before it is ready.
Johnson & Johnson's chief scientific officer, Dr. Paul Stoffels, told CNBC earlier this week that he believes the drugmaker can create a vaccine in the coming months to fight against the fast-spreading virus. But he added it could take up to a year to bring it to market.
Developing a vaccine to fight against a new outbreak can take a long time due to several factors, including finding animal models to test the possible vaccines and getting enough human volunteers. For example, the first human trials for the Ebola vaccine began in late November 2014. The U.S. Food and Drug Administration didn't approve a vaccine for the outbreak until December 2019.
In the meantime, local authorities in China are using Gilead Sciences ' antiviral drug Remdesivir, which was tested as a possible treatment during the Ebola outbreak, U.S. health officials said on the call Tuesday. Some authorities are also using antiviral drug Kaletra, developed by drugmaker AbbVie, on a `` compassionate basis. ''
There are also ongoing studies looking at the 2003 outbreak of SARS and the 2012 outbreak of MERS. Physicians have compared the current virus with SARS, which was identified in 2003 and killed nearly 800 people worldwide.
`` When we were dealing with SARS, we developed monoclonal antibodies as potential therapeutics, '' Fauci said. `` Given the somewhat close homology between SARS and the new novel coronavirus, there could be some cross-reactivity there that could be utilized. '' | business |
Tim Cook says Apple shuts one store in China, restricts travel due to coronavirus | Apple CEO Tim Cook said Tuesday the coronavirus outbreak in China is impacting Apple's operations in the country.
The company has restricted employee travel and shut one store in China due to the coronavirus outbreak, Cook said, adding that the company is cutting back on retail store hours in China.
`` We're restricting travel to business critical travel, '' Cook told CNBC's Josh Lipton Tuesday. `` For employees that are in the Wuhan area, we are providing care kits and supplying them across our employee population in China as well. ''
In it's first-quarter earnings report, Apple set an unusually large guidance range for the next quarter of $ 63 to $ 67 billion. Cook said the decision to set guidance with a range of $ 4 billion was reflective of the coronavirus outbreak and `` the uncertainty around that. ''
Apple has `` some suppliers '' in the Wuhan area, Cook told investors on Apple's quarterly conference call Tuesday, and added that at least some of its manufacturing facilities elsewhere in China will remain closed until Feb. 10, as recommended by the Chinese government.
Cook also said that a number of channel partners have closed their retail stores, which could affect sales.
`` Retail traffic has also been impacted outside of the city over the last few days, '' Cook said.
Apple manufactures most of its iPhones in China. While its two primary manufacturing sites are far from Wuhan, the epicenter of the outbreak, Bloomberg reported this week that the emerging public health threat could disrupt the company's operations.
`` We're donating to groups that are working to contain the outbreak, '' Cook said on the earnings call. `` We're working closely with our Apple team members in the affected areas, and our thoughts are with all of those in the region. ''
Chinese health authorities said Tuesday that the coronavirus outbreak has killed 106 people and infected 4,515.
The Centers for Disease Control and Prevention told Americans Tuesday to avoid all nonessential travel to China, expanding its travel warning from the city of Wuhan to the entire country. | business |
Stocks making the biggest moves after hours: Apple, Starbucks, AMD and more | Take a look at the companies making headlines after the bell.
Apple – Apple stock rose 2.5% after it reported strong fourth-quarter results that beat analysts ' estimates on the top and bottom line. The results were powered by iPhone revenue and Apple's service businesses like Apple TV+ and iCloud. The company reported earnings of $ 4.99 per share on revenue of $ 91.82 billion, while analysts expected earnings of $ 4.55 per share on revenue of $ 88.50 billion, according to Refinitiv.
Starbucks – Shares of the coffee giant dropped more than 1% after the company announced the closures of all cafes and deliveries for locations in the Hubei province, where the coronavirus originated. The company beat earnings estimates by 3 cents per share excluding some items, reporting quarterly profit of 79 cents per share. Revenue came in slightly below Wall Street forecasts, according to Refinitiv.
eBay – Shares of the e-commerce giant dropped more than 5% in extended trading after the company reported strong fourth-quarter earnings but offered weak first-quarter revenue guidance. The company reported earnings of 81 cents per share excluding certain items on revenue of $ 2.82 billion, while analysts expected earnings of 76 cents per share on revenue of $ 2.81 billion, according to Refinitiv.
Advanced Micro Devices – The semiconductor company stock dropped more than 4% in extended trading after the company reported strong fourth-quarter earnings but offered weak first-quarter revenue guidance. The company reported a quarterly profit of 32 cents per share excluding certain items compared to a consensus estimate of 31 cents a share, according to Refinitiv. Fourth-quarter revenue beat Wall Street analyst estimates.
Xilinx – The semiconductor manufacturing company's shares slipped nearly 10% in extended trading after the company missed third-quarter revenue estimates and provided weak fourth-quarter revenue guidance that fell below the consensus. While Xilinx beat analyst expectations for earnings in the third quarter by 9 cents per share, third-quarter revenue of $ 723 million fell below the $ 731 million that analysts expected, according to Refinitiv. In the fourth quarter, the company expects to have revenue of $ 750 million- $ 780 million, while analysts expected $ 825 million. Xilinx also announced the expected reduction of its global workforce by 7% as part of an effort to reduce operating expenses, according to the release.
Alaska Air - Shares of the airline dropped and then returned to around the closing price of $ 65.54 in extended trading after the company reported earnings and raised its quarterly dividend by 7%. Alaska Air reported a fourth-quarter profit of $ 1.46 per share excluding certain items, compared to a consensus EPS estimate of $ 1.41, according to Refinitiv. Revenue came in slightly above Wall Street forecasts. | business |
What the Options Market Says About Super Tuesday | Photograph by Spencer Platt/Getty Images
What’ s scarier to investors than the Wuhan coronavirus that has sent global stocks sharply lower? A Democratic president.
Some investors will find that statement to be odious, but the stock and options market say otherwise. Since
we alerted readers in late November
that investors had begun hedging stocks well in advance of the Democratic primaries, the issue has advanced to become one of the financial market’ s main risk factors.
As stocks hover near record highs—the coronavirus weakness is duly noted—investors are increasingly afraid that any change to President Donald Trump’ s pro-growth, pro-market will infect stocks and send the market sharply lower.
Many investors fear that if Bernie Sanders or Elizabeth Warren, leading Democratic presidential candidates, are elected president they will change capital-gains taxes and enact Robin Hood policies that take from the rich and give to the poor, or less rich. The nation is so polarized—politically and economically—that the mere mention of those investor concerns generally generates acrimonious debate.
If these concerns resonate with you, investors can hedge the election cycle. Because political fortunes can change faster than investor sentiment, it is advisable to just focus on key political events, rather than trying to hedge the entire election cycle with a November hedge. The truncated approach also is more cost-effective because it only entails hedging the portfolio for a few months rather than for a stretch of 10-months or more.
Consider March 3
, the date of the so-called Super Tuesday primary. The primary is more important this year than in year’ s past because California, one of the most politically-important states, changed their primary date to join Super Tuesday. If Sanders emerges victorious, for example, it is likely that the stock market would decline. Investors would interpret the development as a sign that the nation may be veering toward a more liberal future.
To hedge an account in case of a Sanders or Warren winning Super Tuesday, investors can buy SPDR S & P 500 ETF Trust ( ticker: SPY) March $ 310 puts. The puts cost about $ 4 when the exchange-traded fund was trading just under $ 324.
If SPY is at $ 300 when the put expires, the put would be worth $ 10.
During the past 52 weeks, SPY has ranged from $ 261.79 to $ 332.95. So far this year, the fund is up about 0.6%, though the market gained about 29% in the previous year.
Without doubt, the market has run very far, very fast under the Trump administration’ s pro-market policy. Investors who are concerned that American politics poses the greatest risk to stock prices should consider hedging those gains.
Email:
editors @ barrons.com | business |
Trump administration expands screening for coronavirus to 20 US airports | U.S. Health Secretary Alex Azar warned Tuesday that the coronavirus raging across mainland China is a `` potentially very serious public health threat, '' saying that the Trump administration is expanding screening for the virus from five to 20 U.S. airports.
`` We are constantly preparing for the possibility that the situation could worsen, '' Azar said during a press briefing on the nation's response to the coronavirus, which has killed 106 people in mainland China and infected nearly 4,700 worldwide, including in the United States.
`` Americans should not worry about their own safety, '' Azar said. `` Part of the risk we face is we don't know everything we need to know about this virus... That does not prevent us from preparing and responding. ''
The U.S. Centers for Disease Control and Prevention earlier in the day advised Americans to avoid all non-essential travel to China, expanding its travel warning from the city of Wuhan, the epicenter of the outbreak, to the entire country.
`` To better protect the health of the American public during the emergence of this novel coronavirus and based on the evolving information from China, CDC has reassessed its entry strategy, '' CDC Director Robert Redfield said at the press briefing.
CDC officials said the screenings will focus on identifying ill patients as well as educating travelers so they can help contain the disease.
[ WATCH: the HHS press briefing here. ]
Coronaviruses are a large family of viruses that usually infect animals but can sometimes evolve and spread to humans. Symptoms in humans include fever, coughing and shortness of breath, which can progress to pneumonia.
U.S. health officials said Tuesday that they are still determining the real speed and spread of the disease and whether it can infect people prior to symptoms. Azar said the so-called R naught, a mathematical equation that shows how many people will get an illness from each infected person, appears to be somewhere around 1.5 to 3. Azar said symptoms from the new virus, temporarily named 2019-nCoV, may take up to 14 days to appear.
Azar said he offered to send CDC officials to China to assist public health officials there. `` We are urging China [ to act ] with more cooperation and transparency, '' he said.
CDC officials said Monday that the number of `` patients under investigation '' in the U.S. has almost doubled since Thursday to a total of 110 across 26 states. The disease is not spreading through human-to-human contact in the U.S. and the risk to the public right now is still considered low, Dr. Nancy Messonnier, the director of the National Center for Immunization and Respiratory Diseases, said Monday.
German officials confirmed Tuesday what is believed to be one of the first person-to-person transmissions of the infection outside of China.
Several companies, including Walt Disney with its Shanghai Disney, are suspending operations in China during the normally festive weeklong Lunar New Year holiday to prevent the outbreak from spreading. Starbucks and McDonald's also closed stores in Hubei province, where Wuhan is located.
According to the World Health Organization, more data needs to be collected before the virus is declared a global health emergency. WHO declined at two emergency meetings last week to say it was a worldwide emergency. | business |
Stocks Take a Breather Amid Global Efforts to Contain Virus | By Anna Isaac
Global stocks were mixed Tuesday as investors parsed efforts world-wide to contain a deadly virus outbreak in China.
Futures tied to the Dow Jones Industrial Average rose 0.3%, a day after the index for blue-chip U.S. stocks shed more than 450 points. The Stoxx Europe 600 gauge wavered between gains and losses, while exchanges in China and Hong Kong remained closed for the Lunar New Year holiday. Japan's Nikkei 225 ended the day down almost 0.6%.
U.S. drugmakers are shipping antiviral treatments including drugs approved to treat HIV to Chinese health authorities to gauge whether the medicines may prove effective in containing the respiratory infections. The death toll from the coronavirus has reached more than 100, with over 4,500 cases of infection reported in China, while travelers have carried the infection to other countries including the U.S., Australia, Germany and Japan.
Major exchanges in Hong Kong are scheduled to open Wednesday, while bourses on the mainland will be closed until next week after Chinese authorities extended the holiday in a bid to curtail mass migration and contain the virus.
South Korea's Kospi equity index ended Tuesday down 3.1% -- the biggest drop since October 2018 -- after markets in the country resumed trading following the Lunar New Year holiday. The retreat was led by declines in tourism and technology stocks.
Commodities prices continued to fall on concern that the viral outbreak may damp China's demand for energy and industrial metals. Brent crude, the global benchmark for oil, dropped 0.8% to $ 58.13 a barrel.
Later in the day, drug manufacturer Pfizer, industrial giant United Technologies, and motorcycle maker Harley-Davidson are among the several major U.S. companies scheduled to report earnings.
The Commerce Department is also due to release December durable-goods orders, an indicator for manufacturing health in the U.S. Economists surveyed by The Wall Street Journal estimate that orders climbed 0.2% last month.
Write to Anna Isaac at anna.isaac @ wsj.com
| business |
Hong Kong stocks drop on return from holiday amid coronavirus concerns | Shares in Hong Kong plummeted on Wednesday as the city's markets returned from a holiday amid coronavirus fears.
The Hang Seng index declined 2.82% to close at 27,160.63.
Hong Kong-listed shares of travel-related firms plummeted. China Eastern Airlines plunged 3.43% and China Southern Airlines dropped 3.65%. Insurance stocks also took a hit, with life insurer AIA declining 2.65% and Hong Kong-listed shares of China Life Insurance falling 3.59%. Meanwhile, gaming stocks dropped as Wynn Macau dove 4.11% and Melco International Development fell 5.18%.
Hong Kong leader Carrie Lam on Saturday declared a virus emergency in the city of 7.3 million, extending school cancellations until Feb. 17 and canceling all official visits to mainland China. The ongoing virus outbreak has killed more than 100 in China, according to Chinese health officials. The number of infected in China has also now surpassed that of SARS.
Lam announced a package of measures aimed at limiting the Asian financial hub's connections to mainland China. Flights and high speed train journeys between Hong Kong and the Chinese city of Wuhan will be halted, and annual official Lunar New Year celebrations for the city have been scrapped.
Markets in China remain closed on Wednesday for a holiday.
In other Asian markets, Japan's Nikkei 225 was up 0.71% to close at 23,379.40 while the Topix index gained 0.45% to end its trading day at 1,699.95. South Korea's Kospi also added 0.39% to close at 2,185.28.
Stocks in Australia rose, with the S & P/ASX 200 closing 0.53% higher at 7,031.50.
Overall, the MSCI Asia ex-Japan index was 0.6% lower.
Shares of Apple suppliers were mixed on Wednesday after Apple CEO Tim Cook said Tuesday that the Cupertino-based tech giant's operations in China are being impacted by the ongoing coronavirus outbreak in the country.
Japan's Murata Manufacturing declined 0.58% while Sharp added 0.13%. Over in South Korea, LG Display gained 1.37%. In Hong Kong, Sunny Optical slipped 1.77% while AAC Technologies dropped 4.16%.
`` It's too early to tell how big and how significant this could be but... you can't ignore something like this especially in an area for growth for Apple, '' Bradley Gastwirth, chief technology strategist at Wedbush Securities, told CNBC's `` Squawk Box '' on Wednesday.
`` All that being said, the company did still guide better than consensus, the thing that was interesting which Tim Cook noted was they had a larger range for the revenue guide based on the coronavirus because of that uncertainty, '' Gastwirth said.
The moves in Asia came after the Apple CEO said the firm has restricted employee travel and shut one store in China due to the coronavirus outbreak, also adding that the company is cutting back on retail store hours in China. That came as Apple reported earnings and iPhone sales that smashed expectations.
Overnight stateside, the Dow Jones Industrial Average surged 187.05 points to close at 28,722.85. The S & P 500 advanced 1% to end its trading day at 3,276.24. The Nasdaq Composite advanced 1.4% to close at 9,269.68.
Amid the coronavirus fears, the White House told airlines that it may suspend all flights from China to the U.S., according to people familiar with the matter.
`` Even if this strain of Coronavirus may be deemed less potent than SARS, there is no excuse for complacency given risks that proliferation is likely amplified by far more extensive travel in and out of China compared to ( the) SARS period, '' Vishnu Varathan, head of economics and strategy at Mizuho Bank, wrote in a Wednesday note.
`` In all likelihood, rising infection and casualty count into the day and over the next few days and weeks will strain some of the relief moves we have seen overnight, '' the economist said.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 98.067 after seeing an earlier low of 97.943.
The Japanese yen traded at 109.09 per dollar after seeing an earlier low of 109.26. The Australian dollar changed hands at $ 0.6757 after rising from levels around $ 0.674 yesterday.
Oil prices rose in the afternoon of Asian trading hours, with international benchmark Brent crude futures up 0.81% to $ 59.99 per barrel. U.S. crude futures gained 0.86% to $ 53.94 per barrel.
— CNBC's William Feuer contributed to this report. | business |
Facebook restricts employee travel to China as coronavirus spreads | Facebook has started restricting employee travel to China, joining a growing list of U.S. companies that have done the same amid a growing outbreak of the coronavirus.
`` Out of an abundance of caution, we have taken steps to protect the health and safety of our employees, '' Facebook spokesperson Anthony Harrison told CNBC in a statement.
The travel restrictions were announced on Monday. Facebook has banned all non-essential travel the country, but if employees must visit China, they have to receive approval first. The company has also told employees who work in China, or who have recently traveled there, to work from home, Facebook said.
Facebook is the first major U.S. technology company to ban all non-essential travel to the country. Other companies including Disney, McDonald's, Starbucks and Ford Motor have either suspended operations or instituted travel restrictions there. Apple shares fell on Monday amid concerns that the company, which has high revenue exposure in China, would be hurt by any impact the coronavirus might have on consumer spending.
More than 100 people have died from the disease, while total confirmed cases have risen to more than 4,600. The majority of cases have been reported in Wuhan, China, but within the last week, five cases have been confirmed in the U.S.
-- CNBC's Sal Rodriguez contributed to this report.
Follow @ CNBCtech on Twitter for the latest tech industry news. | business |
Freeport CEO 'looking forward ' to deals once expansion projects done | Demand for copper is projected to surge this decade because of the rising popularity of electric vehicles, which use twice as much copper as internal combustion engines. That, in turn, is expected to fuel an M & A wave across the sector.
Despite that, Phoenix, Arizona-based Freeport's shares are worth half what they were in 2010, dragged down by uncertainty over the company's stake in a major Indonesian mine and debt from an ill-fated oil and gas venture.
But those issues are largely behind the company, which is about to open a copper mine in the United States, is expanding Indonesia's Grasberg mine and has launched an analytics program to boost production in Peru.
Those projects should double the company's cash flow and boost the company's stock price, giving the company ammunition to consider deals, Adkerson told Reuters.
`` I 'm looking forward to having a new experience in my career toward accessing alternatives and deciding which way we go, '' said Adkerson, an accountant by training who became CEO in 2003.
Those alternatives could include buying part or all of another company, building new mines or other deals, he said.
`` We don't have a clear directive now on what that direction could be, but we will be attractively situated and will have an opportunity to add value through investments, '' said Adkerson.
According to recent news reports, Barrick Gold Corp CEO Mark Bristow has spoken favorably of Freeport's assets and a potential combination.
Adkerson declined to comment. A Barrick spokeswoman declined to comment.
Adkerson, 73, said he has no plans to retire and is in good health.
`` This is not a time that I 'm thinking about walking away, '' he said.
Adkerson called the outbreak of a deadly coronavirus in China a `` real black swan event. '' The term is a reference to the book `` Black Swan, '' which looks at the potentially catastrophic effects of unpredictable events.
Copper prices have dropped more than 10% this month on concerns the virus could affect the global economy. Copper prices are closely linked to global economic health because the metal is used for construction and manufacturing.
Freeport's stock dropped more than 9% last Thursday due in part to virus concerns even as the company posted better-than-expected quarterly results.
Its shares were 2.5% higher at $ 11.175 in afternoon trading, along with a broad rally in global equity markets as investors took a less pessimistic view of the potential economic fallout from the coronavirus outbreak.
By Ernest Scheyder | business |
Safe-haven currencies stay in demand on China virus fears | Concerns about the economic fallout from the coronavirus outbreak in China supported safe-haven currencies on Tuesday, with the dollar index at a two-month high and the Swiss franc at a nearly three-year peak against the euro.
Though global markets had stabilized somewhat after Monday's sell-off, risk aversion in currency markets persisted, with the Australian dollar leading losers and the greenback strengthening to an eight-week high against a basket of six rivals.
The Japanese yen was off of Monday's high, last 0.26% weaker at 109.14 per dollar.
`` Risk-off positioning has cooled off, though investor sentiment clearly remains wary, faced with the epistemological `` known unknown '' conundrum of how bad and how widespread and how economically damaging the coronavirus outbreak will be, wrote analysts at Action Economics.
President Xi Jinping said on Tuesday that China was sure of defeating the `` devil '' coronavirus that has killed 106 people. Yet despite his confidence, international alarm has risen: From France to Japan governments organized evacuations, while Hong Kong planned to suspend rail and ferry links with the mainland.
The Swiss franc, a traditional safe-haven investment along with the yen and the dollar, had strengthened to 1.067 francs per euro, its highest since April 2017. It had retraced some of those gains in North American trade, last 0.28% weaker on the day at 1.071.
Global stock markets and oil prices have tumbled in recent days on fears the virus could further damage China's already weakened economy. That also briefly inverted the three-month, 10-year U.S. Treasury yield curve, considered a fairly reliable recession predictor.
Still, currency moves were subdued, with the U.S. dollar adding to previous gains ahead of the start of a two-day U.S. Federal Reserve meeting later on Tuesday. Fed policymakers are largely expected to reiterate that interest rates will remain on hold this year.
The dollar index was last up 0.19% at 98.06, its highest since early December and taking its gains so far this month to 1.8%. Versus the euro, the dollar firmed 0.05% to $ 1.101.
The Australian dollar, which is highly correlated to the Chinese economy, earlier in the session hit a fresh 15-week low and was last trading 0.15% weaker on the day at 0.675.
Stability in the offshore yuan, after a recent drop, provided some calm to nervous currency markets. The Chinese currency firmed 0.19% versus the dollar, rising off three-week lows. | business |
Kali: KALY-Kali-Extracts RespRx Could Offer Treatment for Coronavirus Symptoms | DALLAS, Jan. 28, 2020 /PRNewswire/ -- Kali-Extracts, Inc. ( Kali, Inc. dba/Kali-Extracts, Inc.) ( USOTC: KALY) ( `` KALY '') today highlighted that its RespRx CBD formulation could offer treatment for coronavirus symptoms. KALY's CBD formulation has been developed for the treatment of symptoms associated with Chronic Obstructive Pulmonary Disease ( COPD) and other similar respiratory conditions. The formulation for the treatment of symptoms associated with COPD and other similar respiratory conditions has been derived from the company's U.S. Patented Cannabis Extraction Process. In conjunction with the research already conducted and the next phase of research now moving forward, KALY has filed a new patent application specifically on its CPD formulation for symptoms associated with COPD and other similar respiratory conditions. KALY has also filed for a trademark on the name RespRx as the brand name for its CBD formulation to treat the symptoms associated with COPD and other similar respiratory conditions.
From The World Health Organization:
`` Coronaviruses ( CoV) are a large family of viruses that cause illness ranging from the common cold to more severe diseases such as Middle East Respiratory Syndrome ( MERS-CoV) and Severe Acute Respiratory Syndrome ( SARS-CoV). A novel coronavirus ( nCoV) is a new strain that has not been previously identified in humans. ''
`` Common signs of infection include respiratory symptoms, fever, cough, shortness of breath and breathing difficulties. In more severe cases, infection can cause pneumonia, severe acute respiratory syndrome, kidney failure and even death. ''
A potential strategic investor engaged with KALY regarding the company's recently announced consolidation of its business structure to focus on its Cannabis Biopharmaceutical Technology is coordinating with KALY management to facilitate a potential research liaison with organizations addressing the current coronavirus outbreak.
To learn more about RespRx, visit https: //www.resprx.com/
Follow further developments at https: //www.kali-extracts.com/
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended ( the `` Exchange Act ''), and as such, may involve risks and uncertainties. These forward looking statements relate to, amongst other things, current expectation of the business environment in which the company operates, potential future performance, projections of future performance and the perceived opportunities in the market. The company's actual performance, results and achievements may differ materially from the expressed or implied in such forward-looking statements as a result of a wide range of factors.
CONTACT: Frederick Ferriir @ kali-extracts.com ( 214) 210-0459
View original content: http: //www.prnewswire.com/news-releases/kaly-kali-extracts-resprx-could-offer-treatment-for-coronavirus-symptoms-300994618.html
SOURCE Kali-Extracts, Inc. | business |
Chinese Children are Reporting Their Parents Because They Are Being Careless About the Outbreak | These children are snitching on their parents who are breaking the rules for the love of Mahjong.
Coronavirus is the hush-word of the decade, and with 4,559 confirmed cases and 106 people deceased, it is impossible not to feel a certain dread in the wake of it. From one food market to global panic, the outbreak started in Wuhan, and slowly but surely, it is spreading to the rest of the world.
However, people's reactions are diverse, to say the least. While some are never taking off their face masks, the others seem to be following the philosophy of leaving everything to dumb luck. And those people have turned out to be the ones who are most at risk.
While your parents might get all fussy about your sweaty back after a sports session, they can be kind of reckless when it comes to their life choices. Chinese millennials are going crazy over their family and older relatives who are refusing to take the epidemic seriously.
According to the Sichuan Observer, a local woman called the cops on her parents after they went out to a teahouse to gamble. However, gambling was not the problem. These establishments were ordered to cease operations to limit the spread of the coronavirus, and it is forbidden to leave your house during the critical period. When these warnings were left unheard, the woman decided to take the matters into her hands by calling the police.
People had a lot of things to say about this of course. Young people shared their concerns over the Chinese microblogging website Weibo while commenting on Sichuan Observer’ s news.
This person had a fair point: “ Children are more sensible than their parents. ”
This user and their parent seem to have reversed their roles. “ I didn’ t allow my dad to go out to play cards, and now he is angry and locked himself in his room, not eating or drinking for almost a day. It's very difficult. ”
It seems like old people can’ t get over the spell of a good Mahjong game.
And this user apparently had to get creative in order to stop their mother from leaving the house without a mask-on: `` I can't make them wear face masks anymore. In order to stop my mother from getting out, I racked my brain and this is it, bicycle locks are easy to use. ''
While these measures look absurd, it is certain that they come from a place of love. However, it is certain that Chinese people should take measures against the virus in no time. Since this method seems to keep the reckless parents at bay, keep snitching, kids!
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By subscribing, you agree to our Terms of Use and Privacy Policy. You may unsubscribe at any time. | tech |
U.S. Stocks Rise Amid Global Efforts to Contain Virus | By Anna Isaac and Paul Vigna
U.S. stocks climbed Tuesday as investors turned their attention to earnings season and improving economic data, though bond markets briefly flashed a recession signal for the first time since October.
The Dow Jones Industrial Average rose 253 points, or 0.9%, while the S & P 500 rose 1.2%. Both indexes suffered their steepest losses since October on Monday as investors reacted to efforts world-wide to contain a deadly virus outbreak in China.
The technology-heavy Nasdaq Composite gained 1.5%.
The Stoxx Europe 600 gauge gained 0.8%, while exchanges in China and Hong Kong remained closed for the Lunar New Year holiday.
The coronavirus is obviously serious, but investors are turning back toward earnings and economics reports, said Ryan Detrick, senior market strategist at LPL Financial.
`` The U.S. economy is in pretty good shape, and should be able to withstand the fallout from the coronavirus, should it spiral, '' he said.
The outbreak of coronavirus, which has killed more than 100 people and infected over 4,500 in China, risks further stunting an already slowing Chinese economy, which is increasingly important for global growth. Travelers in recent weeks have carried the infection to other countries including the U.S., Australia, Germany and Japan.
Investors were largely expecting a slight uptick in global growth this year and are now reaching for safer assets like U.S. government bonds. Rising concern about the potential impact of the Chinese outbreak has led to a flattening of the yield curve.
`` If you take China's growth out the equation, then the basis for your global growth forecast starts to fall apart, '' said Seema Shah, chief strategist at Principal Global Investors.
The yield on the 10-year Treasury briefly slipped below that of the three-month bill, before paring back declines and rising to 1.650%. The three-month U.S. government debt is currently at about 1.563%.
When longer-dated debt offers smaller returns than bonds with shorter maturities, it can be an indicator of fixed-income investors ' growing concern about the economy. Still, the yield curve can invert a number of times before the start of a recession: last year, markets went on to largely shrug off the event.
Among equities, McCormick dropped 3.3% after the spice company's fourth-quarter revenue missed analysts ' expectations and it issued disappointing guidance for 2020. Harley-Davidson fell 2.9% after the motorcycle maker reported earnings and sales that fell short of expectations.
3M slid 5.4% after the maker of everything from Post-it Notes to molar crowns said it would eliminate 1,500 jobs as part of a broad restructuring effort.
Later in the day, Apple, Starbucks and eBay are among the major U.S. companies scheduled to report earnings.
Over in Asia, South Korea's Kospi index ended Tuesday down 3.1% -- the biggest drop since October 2018 -- after markets in the country resumed trading following the Lunar New Year holiday. The retreat was led by declines in tourism and technology stocks.
Major exchanges in Hong Kong are scheduled to open Wednesday, while bourses on the mainland will be closed until next week after Chinese authorities extended the holiday in a bid to curtail mass migration and contain the virus.
On the economic front, the U.S. Commerce Department reported that durable-goods orders rose 2.4% in December, driven by defense spending. However, a key measure that excludes aircraft orders and defense spending fell 0.9%.
-- Caitlin Ostroff and Anna Hirtenstein contributed to this article
Write to Anna Isaac at anna.isaac @ wsj.com and Paul Vigna at paul.vigna @ wsj.com
| business |
Wuhan Coronavirus Death Toll Escalates to 106, Countries Tighten Measures | The number of infected persons almost doubled in a day, with over 4,500 confirmed cases.
The coronavirus has grabbed international attention and keeps on doing so. The death toll has risen to 106 as of Tuesday, and the number of confirmed infectious cases more than doubled in one day to over 4,500 in China alone.
Governments worldwide are scrambling to act and put in their own measures. Hong Kong has slashed its border crossings between the territory and China, and the Philippines stopped issuing visas on arrival on Tuesday for Chinese nationals entering the country.
With the death toll and infected cases rising daily, governments are doing their best to protect their people from the deadly virus. Currently, the virus has spread to 16 countries worldwide.
Update of confirmed # coronavirus cases worldwide: -China ( HK, Macao, Taiwan): 1,142 & 54 deaths -Japan: 3 -South Korea: 2 -France: 3 - Australia: 4 -Canada: 1 -U.S.: 2 -Russia: 7 -Nepal: 1 -Vietnam: 2 -Malaysia: 4 -Singapore: 4 -Thailand: 5 pic.twitter.com/TR2HFllO81
Cases have already been confirmed in the U.S., Hong Kong, Malaysia, Thailand, Nepal, Australia, France, Japan, South Korea, Taiwan, Singapore, and Macao, with more countries joining the list as time goes by.
Japan is sending a plane to Wuhan, where the outbreak began, to evacuate its citizens.
Japan confirms patient who caught coronavirus did not visit China https: //t.co/jolxdsXvxS
Hong Kong's leader, Carrie Lam, stated that the high-speed rail line between the territory and mainland China would stop operating from Thursday.
Singapore is controlling and limiting entry to the country from Hubei-issued passport holders.
Coronavirus: Singapore confirms fifth case, test results for 57 others still pendinghttps: //t.co/ql5z4KELCb https: //t.co/ql5z4KELCb
Over half a million South Koreans have signed a petition asking for a ban on Chinese nationals from entering the country.
Wuhan, the epicenter of the outbreak, is already on lockdown. No public transportation is running in or out of the city, flights are limited, and airlines are blocking flights in and out of the city.
The death toll from the Wuhan coronavirus outbreak has now topped 100, with more than 4,500 cases of infection in mainland China. https: //t.co/mxEzOqc0P9 pic.twitter.com/ZLa0aUKyoL
Most of the deaths have been in Hubei province in China, where Wuhan is located. Most of the victims have been the elderly or people with pre-existing respiratory issues. Little information has been shared regarding the lastest deaths.
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By subscribing, you agree to our Terms of Use and Privacy Policy. You may unsubscribe at any time. | tech |
Tesla offers free charging to China's EV owners due to coronavirus outbreak | In the midst of China's coronavirus outbreak, Tesla is giving its EV customers in the country free supercharging until the situation is resolved. As reported by Electrek, the company notified its customers of the decision via alerts on its vehicles ' screens, referring to the outbreak as an `` extraordinary period. '' It hopes that the move could help those forced to move against their will get around without necessarily having to rely on public transport, which could increase the risk of transmission. Authorities in Wuhan -- the epicenter of the outbreak -- have already confirmed several thousand cases of the respiratory disease.
Of course, how much free supercharging will help those quarantined in the middle of the crisis is open to debate, but the gesture makes for good PR for Tesla, which still has a relatively small market in China. However, Tesla and other automakers have previously stepped up in the face of other national disasters, providing free charging to those in the paths of wildfires and hurricanes, so it's also another example of the way companies in this sector can be useful in the event of major emergencies. | tech |
Cramer: Buyers after Monday market slide 'coming in on quicksand here ' | There are too many unknowns about the worsening coronavirus outbreak to start buying stocks after Monday's worst market slide since October, CNBC's Jim Cramer said Tuesday.
Wall Street opened higher Tuesday, partially rebounding from Monday's more than 450-point drop in the Dow Jones Industrial Average.
`` I just think you're coming in on quicksand here, '' Cramer said on `` Squawk Box, '' as U.S. stock futures were moving higher. `` If we had any sort of clarity at all, I would certainly feel like a bounce can happen. ''
The only things that have happened between Monday and Tuesday, he said, were a dramatic increase in confirmed cases of the new coronavirus in China and a rise in the death toll. Chinese Health officials said that nearly 4,700 people there have been infected and 106 of them have died.
When stocks were sinking Monday, Cramer warned investors who had been waiting for a cheaper entry into the market to wait a little longer.
`` This is the panic people have been waiting for, '' Cramer said as Monday's severe market drop was building. He said then, `` I just don't think today '' is the day to buy broadly.
Cramer stuck with that advice Tuesday, reiterating concern about a possible `` second leg '' down for the stock market if the World Health Organization were to declare the coronavirus a global emergency.
`` I think when the WHO gets in there we got to prepare for them calling it a pandemic, '' Cramer said. If that were to happen, `` all this rally disappears, '' the `` Mad Money '' host warned.
Disclaimer | business |
Dow rallies more than 180 points, rebounding from its worst day since October | Stocks rose on Tuesday following the market's biggest sell-off in more than three months as investors grapple with lingering fears over a possible coronavirus outbreak.
The Dow Jones Industrial Average jumped 187.05 points, or 0.7%, to 28,722.85, snapping a five-day losing streak. The S & P 500 climbed 1% to 3,276.24 while the Nasdaq Composite advanced 1.4% to 9,269.68. At its high of the day, the Dow was up more than 280 points.
Apple and Goldman Sachs led the Dow's gains, rising more than 1.8% each. The S & P 500 was led higher by the tech and financials sectors, both of which surged more than 1%. The two sectors were among the hardest hit as worries over the virus increased.
The Dow and S & P 500 had their biggest drop since October on Monday. The Dow plunged more than 450 points while the S & P 500 logged in its first pullback of at least 1% in 74 sessions. The Nasdaq also had its biggest one-day decline since August amid fears the spreading coronavirus could hurt the global economy.
`` The wall of worry is back under construction with concerns over the coronavirus and the pace of global growth and valuation, '' said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. `` Stocks are rallying following yesterday's sell-off, however, the unknowns remain unknown. ''
`` At a minimum, the volatility we're experiencing now is likely to be more of the norm than the exception over the next few weeks, '' Sandven said.
In China, where the virus originated from, the virus has killed more than 100 people while over 4,500 have been infected. Senior staff at the White House are considering travel restrictions on China, concerned about Chinese citizens traveling to the U.S. amid the fast-spreading virus, CNBC reported, citing sources.
The State Department had advised Americans to `` reconsider travel to China due to the novel coronavirus. '' The Centers for Disease Control and Prevention also said travelers should avoid all nonessential travel to China.
President Donald Trump said the U.S. is in `` very close communication '' as it relates to the virus.
Investors worry the current situation in China is similar to the severe acute respiratory syndrome, or SARS, outbreak of 2003. Stocks also fell back then amid the outbreak's uncertainty before recovering.
`` From an investment perspective the largest challenge around the Wuhan coronavirus is the lack of historical comparisons that might help sensibly frame the risks, '' said Nicholas Colas, co-founder of DataTrek Research. He noted, however, comparing the current situation to the SARS outbreak may not work given how much Chinese demographics and economic dynamics have changed.
`` China is in a better position to address the current crisis relative to SARS, both because its population is now more affluent as well as the country's improvements to its national health care system, '' Colas added.
Meanwhile, the corporate earnings season continued with 3M, Pfizer and Harley-Davidson releasing their quarterly numbers. Pfizer and 3M posted disappointing earnings for the previous quarter, sending their shares down 5.1% and 5.7%, respectively. Both stocks were among the worst performers in the Dow. Harley-Davidson's earnings per share beat expectations, but a disappointing revenue figure helped send the stock down 3%.
Of the S & P 500 companies that have reported thus far, 67% have posted better-than-expected earnings, FactSet data shows.
Apple is among the S & P 500 components set to report after Tuesday's close. Despite Tuesday's gains, the tech giant is down more than half a percent for the week and is trading below its record high from earlier this month.
On the data front, U.S. consumer confidence rose more than expected in January as sentiment around the labor market improved.
—CNBC's Michael Bloom contributed to this report. | business |
Fed decision: Watch Coronavirus, repo market and the IOER rate | The Federal Reserve heads into its first meeting of the new decade with its key responsibility — interest rates — well resolved, but with a slew of other less headline-grabbing but still significant decisions on the table.
Practically no one expects the central bank to move its benchmark borrowing rate until at least September. Central bank officials have made it clear that it would take a meaningful change from current conditions to prompt another cut. There's also pretty much no chance of a hike absent a sudden jump in inflation.
But officials still will be called on to answer a few key questions:
Wednesday's rate decision and subsequent news conference from Chairman Jerome Powell likely will provide only hints rather than concrete answers. However, the details of where the Fed stand will be important.
`` At best, they can be patient and wait and see and stay to their original script, which is 'we're on hold this year, ' '' said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management. `` If they alter the script, I do think markets are going to be concerned. ''
The intensifying coronavirus spread has gotten the market's attention, both on a human level and the extent to which it could slow economic activity, particularly in China.
Past practice for the Fed has been to acknowledge such events but not to react to them. Policymakers generally view things like natural disasters, epidemics and other exogenous occurrences as one-offs in nature and not a factor in long-term policy decisions.
In a November speech before Congress, Powell said it would take a `` material reassessment '' of conditions before the Fed would change policy.
`` A China-centered global outbreak of a highly contagious disease with a high fatality rate that threatened to derail tentative global economic stabilization – if this is what we are dealing with – could in principle meet the 'material reassessment ' test, though we do not think Powell will get drawn into this type of judgment at this juncture, '' Krishna Guha, head of global policy and central banking strategy at Evercore ISI, said in a note.
The economy more broadly seems to be fairly steady, with the Atlanta Fed projecting fourth-quarter GDP growth to come in at 1.9%. That's not gangbusters, but it is better than the flat growth the indicator had shown earlier in the quarter.
As a compromise, the Fed could change the language in its statement about the way it is monitoring international developments. Powell also could give a nod to the manufacturing slowdown; the headline durable goods orders for December were better than expected, but masked weak underlying fundamentals.
In addition to broader economic issues, the Fed has been wrestling with the level of bank reserves that the financial system requires.
To ensure that banks have `` ample '' reserves, the Fed has been conducting daily and longer-term market operations to allow institutions to exchange high-quality assets for the short-term cash they need to operate, in a process known as repo operations. That has allowed the Fed's balance sheet to expand back above $ 4 trillion.
While the operation ostensibly was aimed at keeping overnight borrowing rates within their proscribed range, it also has coincided with a stock market rally that has almost perfectly matched the balance sheet increase. Some in the markets have been calling the expansion another form of the quantitative easing the Fed used to goose the economy during and after the financial crisis.
With the Fed only committed to keeping the operations going through the second quarter, cleanly unwinding them could be another nettlesome issue.
`` They're going to be very careful. They attempted to do this in a stealth way, in my humble opinion, for political expediency, '' Shallet said. `` I think that to start acknowledging that... we're going to have to suspend the balance sheet expansion by the middle of the year, markets are not going to take that well. ''
Powell at times has been less than adroit in how he has prepared the market for a change in approach.
`` This is tricky terrain for Powell and if mishandled could be disruptive, '' Guha wrote. `` That is why we expect only very cautious and limited comments for now, in particular given virus concerns, but see net downside risk on the day. ''
There's also some expectation that the Fed could approve a rate hike, but not the kind that most people generally notice.
Instead, the committee might be tempted to increase the interest it pays on excess reserves that banks store at the Fed. The rate is currently set at 1.55%, but could be line for a nudge up to 1.6%.
The reason is that the Fed uses the IOER as a guardrail for its benchmark funds rate. Over the past two years, the Fed has been cutting the IOER rate as the funds rate has moved to the top of its target band.
But since the repo operations began, the funds rate has slipped to the low end of its 1.5% -1.75% range — currently at 1.55%, same as the IOER. The Fed generally prefers the funds rate closer to the midpoint, so a push higher on the IOER could help make that happen.
With jitters over the coronavirus situation, however, the Fed might choose to wait.
`` We do expect an IOER hike over time, but in our view the cost of waiting is very low and the Fed would probably like to avoid to possibly needing to reverse a hike, '' Ebrahim Rahbari, forex strategist at Citigroup, said in a note.
Rahbari said markets are pricing in about a 50% chance of an IOER increase. Futures traders are further indicating a 58% chance of a quarter-point decrease in the funds rate by September, rising to 73% by the end of the year.
However, the Fed this week likely will assert that it remains on hold for pretty much everything.
`` We think that the Fed will note that even though the outlook for the economy remains benign, it continues to watch risks closely, '' Rahbari said. `` Chair Powell will remain confident about the outlook, including the prospects for inflation to approach the Fed's target, but also be watchful of remaining risks, including still-soft manufacturing sentiment readings, and uncertainties around the impact of the corona virus. '' | business |
Market reactions to major virus scares show stocks have more to lose | Investor anxiety over the coronavirus led to the Dow Jones Industrial Average's longest losing streak since August, and the market may have more to lose, going by past epidemics.
Looking back 20 years, previous epidemics from SARS in 2003 to the Ebola scare six years ago shaved 6% to 13% off the S & P 500 over different lengths of time, according to Citi's head of U.S. equity strategy Tobias Levkovich. The equity benchmark was down about 2.6% through Monday's close since Jan. 21.
The coronavirus outbreak has killed 106 people and infected 4,515 in China, and the disease has spread to countries around the globe. Medical experts have compared the coronavirus to the severe acute respiratory syndrome, or SARS, which lasted 38 trading days and resulted in a 12.8% sell-off in the S & P 500.
The most recent outbreak was Zika, which started in Nov. 2015 and spread mostly by bites from infected mosquitoes. The market suffered a near 13% pullback in the span of 66 sessions.
`` The SARS scare in Hong Kong in 2003 changed the mindset of fund managers who had not dealt with such a health risk emergence and therefore MERS, Ebola, Zika, avian flu, and now coronavirus has created deep concern with still limited information on the extent of contagion and what remedies can be put in place and over what timeframe, '' Levkovich said in a note.
All 11 S & P 500 sectors declined during the SARS outbreak 17 years ago, and information technology and communication services were among the biggest losers during the period, falling 14% and 26%, respectively, according to Citi's analysis.
That's because China has been an important manufacturer and supplier for many American tech companies. Apple, for example, could see its iPhone production slowing down due to the coronavirus outbreak, the Nikkei Asian Review reported Tuesday.
`` Pure China exposure stocks tend to be more IT oriented due to supply chain dynamics and it is likely that shipments from places other than Hubei province probably continue with moderate disruption, but time will tell, '' Levkovich said.
Financials were the second-worst performer during SARS, declining 16% as falling bond yields posed a profit threat to banks.
To be sure, while history may suggest the sell-off could continue, the economy is in a better place today with a resilient consumer base and strong business spending, which could prevent a bigger market pullback and a negative economic impact.
`` The U.S. economy and market is much more domestically-focused, '' Levkovich said. `` We do not envision a major domestic slowdown as a result of the China news, but this does not mean that share prices can not continue to falter in the nearer term. ''
— CNBC's Nate Rattner contributed to this report. | business |
Ex-FDA chief worries China greatly underestimating coronavirus cases | Former FDA Commissioner Scott Gottlieb on Tuesday said he's worried that coronavirus cases in China are actually much higher than the official numbers.
`` I think we are dramatically underestimating '' cases in China by `` tens of thousands, '' Gottlieb told CNBC's `` Squawk Box. '' `` I think the Chinese haven't been fully sharing. ''
Chinese officials on Tuesday sharply increased their confirmed coronavirus cases to nearly 4,700. The death toll in China rose to 106. The virus was first discovered in the city of Wuhan in Hubei province in December.
Gottlieb — a physician, health advocate and Pfizer board member — said it's hard to tell the total number of people who were infected in China since health officials there did not widely roll out diagnostic testing until late January.
`` We know the numerator, '' said Gottlieb, who left the Food and Drug Administration in April 2019. `` We don't know the denominator. '' Last week, he said there could be thousands of mild cases that will likely go undiagnosed and clear up on their own.
Later on `` Squawk Box, '' House Energy and Commerce Chairman Frank Pallone said he's also skeptical of China's coronavirus reporting. `` They are not often forthcoming; often don't tell the truth about what's really happening, '' said the New Jersey Democratic congressman.
China, accused of withholding information in the 2003 SARS epidemic, said its handling of the coronavirus will be different. Last week, the ruling Communist Party's central political and legal affairs commission warned, `` Whoever deliberately delays and conceals reports will forever be nailed to history's pillar of shame. ''
Multiple coronavirus cases have been confirmed in Hong Kong, Macao, Taipei, Thailand, Vietnam, South Korea, Singapore, Malaysia, Japan, Australia, France and the United States.
Gottlieb, who is also a CNBC contributor, said on Tuesday that he expects the U.S., which confirmed five cases, to have smaller, `` inevitable '' outbreaks. However, he added that the U.S. can better contain the virus with preventative measures because its population is less dense than that of China.
U.S. health officials warned that the flu or other respiratory illnesses could complicate identifying more cases. They recommend that people call a health-care provider before seeking treatment so the appropriate measures can be put in place.
The Centers for Disease Control and Prevention is trying to speed up testing and to get the tests in the hands of state health officials. It currently takes the CDC about four to six hours to make a diagnosis once a sample makes it to its lab.
CDC officials said Monday that the number of `` patients under investigation '' in the U.S. has almost doubled since Thursday to a total of 110 across 26 states.
The disease is not spreading through human-to-human contact in the U.S. and the risk to the public right now is still considered low, Dr. Nancy Messonnier, director of the National Center for Immunization and Respiratory Diseases, told reporters on a conference call Monday.
— CNBC's Berkeley Lovelace Jr. and The Associated Press contributed to this report. | business |
The market sell-off could reach 10%, but most analysts expect much less because of Fed backstop | The easy policies of the Federal Reserve and other central banks are already providing a backstop that could lessen the impact of the coronavirus on financial markets.
Some analysts say the sell-off, which started last week, could be 5% to 10%. But others don't even expect it to be that much for U.S. stocks, which had been setting record after record before investors got spooked by the virus the week of Jan. 20.
`` I don't think it's going to be 5%, 10%. We don't have enough information. Is it containment or is it contagion? '' said Joseph Quinlan, head of CIO market strategy for Merrill and Bank of America Private Bank. `` Does China contain it? I think it will, or is it contagion, and it really hits the global economy and pulls it down? I think it's the former. They're going to act very aggressively to offset any hit to to growth they see in Q1. We're not changing anything or doing anything dramatic in the portfolio. ''
The S & P 500 was down 2.6% in the five sessions through Monday. The Dow was down 2.8%, with a 1.6% decline Monday to 28,535, its worst one-day loss since October. It is now negative year-to-date. Treasury yields, which move opposite price, have fallen sharply as investors sought safety. The 10-year was at 1.60% Monday.
Futures pointed to a rebound on Tuesday with an implied open for the Dow of more than 100 points higher.
`` They're overdoing it on the expectation of weaker than expected growth. The world is reflating. We had 64 central banks cutting rates, '' said Quinlan.
The Fed cut rates for the third and final time in October, before stepping to the sidelines. It is also purchasing Treasury bills to expand its balance sheet, a move strategists say has added to liquidity and potentially risk taking in both stocks and credit markets. The Fed meets Tuesday and Wednesday, and is unlikely to change either policy for now, though traders expect it to sound vigilant regarding the uncertainties facing the global economy.
Lori Calvasina, head of U.S. equity strategy at RBC, said she has been expecting a pullback, and besides the coronavirus, the market is beginning to get nervous about the U.S. presidential election. The Iowa caucuses are Feb. 3, and Vermont Sen. Bernie Sanders is polling well in Iowa.
`` I 've been sort of banging the drum calling for a pullback for a long time. My view has been valuations are stretched and ripe for a pullback, '' she said. `` It's always a mystery with these things what are the catalysts going to be. I's interesting its a virus in China. ''
Investors seem to be slightly less certain than before that President Donald Trump will win re-election as impeachment proceedings progress, but they are most worried the Democratic candidate will be Sanders, who is viewed as negative for the stock market.
`` They were thinking it would be Trump or you would get a market friendly Democrat on the nomination side, '' said Calvasina. `` This is all in the context of historical positioning and extreme highs in valuation. To a certain extent, maybe the virus is just the straw that broke the camel's back. Or maybe the election is. I don't dispute the virus has most of the responsibility here, but I think there's a kernel in it that's election-related. ''
Calvasina said she expects the recent decline in health care stocks could be related to the rise of Sanders, who supports Medicare for all. The S & P health care sector was down 0.7% Monday. A new New York Times/Siena College poll showed Sanders commanding 25% of the vote in Iowa, up six points since October and ahead of other candidates.
Online betting market PredictIt shows Sanders ' odds of winning the Democratic nomination at 39%, 3 points above Joe Biden.
`` I think the markets fear would be if either Bernie Sanders or Elizabeth Warren wins the nomination. Their policies are not pro-market, '' said Ed Keon, chief market strategist at QMA. `` In a two person race, there's always a chance the underdog can win. If either looks like they're going to win the nomination, that could be a significant market event. ''
As for the virus impact on stocks, it could turn into a buying opportunity, he said. `` But it's way too early to say until we get more information. Partially, it's just whenever you have a big move up almost anything can serve as a catalyst to cause a pullback, '' said Keon. `` If it wasn't this, it would have been something else. It's not unhealthy for a bull market to take a pause from time to time. ''
BlackRock's Rick Rieder said the sharp slump in Treasury yields is the result of fears about the virus, but the election could also be a factor. As for stocks, he expects just a single digit pull back.
`` I could see it down three to five percent in the next couple of weeks to month. I have a hard time envisioning more than that, '' said Rieder, BlackRock's global CIO of fixed income.
Wall Street has been comparing the current virus to the 2002/2003 outbreak of SARS, which hit stocks but only for a short time.
Analysts warn, however, there are other factors at work in the last 17 years. The Chinese economy is now attempting to recover, and it was faster growing in 2003. There is also much more mobility among Chinese citizens who travel more inside and outside the country and could more easily spread the virus.
The virus appears to have started in Wuhan. China has shut down transportation, and basically locked down more than 50 million people. Plus, it has extended the new year holiday.
A small number of cases have shown up in other countries, including the U.S., Japan, Thailand, Malaysia, Singapore, Canada, South Korea, Taiwan, Australia and Vietnam.
Analysts say also note if there's a sudden surge of cases that could also rattle investors, and if there start to be large numbers of cases found outside of China, that could also shake the market.
The SARS virus did hit China's economy but the hit was temporary and after several quarters, the overall impact was a half percentage point on GDP.
`` Even there, if you look at SARS it was a one quarter event that caught back up to itself three quarters later. Given that we had this incipient recovery, it could tilt the balance some, '' said Jack Ablin, CIO at Cresset Wealth Management. `` I think it's more a matter of timing. It's really more when than if. I think ultimately growth will not be lost. It will just be pushed out a quarter. ''
Ablin said the fact the stock market's current valuation is high is a factor impacting investor psychology. `` Any kind of uncertainty, anything that forces investors to look at valuations, can get people concerned, '' he said. `` I 'm more inclined to buy for longer term investors. I 'm more inclined to use this as an entry point for longer term investors. I would say it's probably 5 to 10%. I don't ' see it really spilling over into economic growth. I think its more a correction variety than a cyclical pull back. ``
Ablin said he was reassured when he listened to the Center for Disease Control briefing Monday. `` It seems like it's not getting out of hand. It's not mutating. We 'll probably have a fair amount of uncertainty and perhaps a'sell first ' environment for a week, '' said `` I think it's probably a good excuse for anyone who is inclined to sell, to lighten up. But it doesn't look like, from what we know now, that this is going to cascade into anything big enough to impact the global economy. '' | business |
Philippines suspends visa upon arrival for Chinese amid coronavirus concerns | The Philippines announced Tuesday it will temporarily suspend issuing visas upon arrival ( VUA) for Chinese nationals amid concerns of a coronavirus outbreak.
`` We are now temporarily suspending the issuance of VUA for Chinese nationals to slow down the influx of group tours, '' Bureau of Immigration Commissioner Jaime Morente said in a press release dated Tuesday.
Morente said the measure was taken to `` slow down travel '' and potentially aid in preventing the entry of the virus. Still, he clarified that there is no order barring Chinese nationals from entering the Philippines.
The decision comes amid an outbreak that Chinese officials said has already claimed more than 100 lives in China and infected more than 4,500 in the country.
Multiple cases of the virus have been confirmed in Hong Kong, Macao, Taipei, Thailand, Vietnam, South Korea, Singapore, Malaysia, Japan, Australia, France and the United States.
On Monday, local authorities in Germany confirmed the country's first case. Nepal has confirmed one case. Cambodia confirmed its first case on Monday, according to Reuters, citing Health Minister Mam Bunheng. Sri Lanka also confirmed its first case on Monday, Reuters reported.
Paul Tambyah, professor at the Department of Medicine at the NUS Yong Loo Lin School of Medicine, told CNBC's `` Street Signs '' on Tuesday that the situation was `` advancing pretty rapidly. ''
`` We do have to wait a while to see the impact of the public health interventions but right now, I think it's something that's focused the attention of public health authorities all over the world, '' he said.
— CNBC's Berkeley Lovelace Jr., William Feuer and Christine Wang contributed to this report. | business |
World Health Organization to send delegation to China to help combat coronavirus outbreak | The World Health Organization is sending a delegation of researchers and other health experts to China to help combat the coronavirus outbreak.
WHO Director-General Tedros Adhanom Ghebreyesus met with Chinese President Xi Jinping in Beijing earlier Tuesday. The two were joined by top officials from the WHO and the Chinese government to discuss how best to contain a fast-spreading and deadly virus in Wuhan and other cities and provinces.
`` Stopping the spread of this virus both in China and globally is WHO's highest priority, '' Tedros said in a statement. `` We appreciate the seriousness with which China is taking this outbreak, especially the commitment from top leadership, and the transparency they have demonstrated, including sharing data and genetic sequence of the virus. ''
The WHO said its delegation will collaborate with Chinese counterparts `` on increasing understanding of the outbreak to guide global response efforts. '' A spokesperson declined to further comment on the delegation, including who will be included in the group.
The virus has now killed 106 people in China and infected roughly 4,700 across the world as of Tuesday, according to Chinese and U.S. health authorities.
The Centers for Disease Control and Prevention told Americans Tuesday to avoid all nonessential travel to China, expanding its travel warning from the city of Wuhan to the entire country. At a press conference the same day, U.S. health officials announced that it would expand entry screenings for the virus from five airports to 20.
The WHO said the source of the outbreak and the extent to which it has spread remains unknown.
Scott Gottlieb, a former Food and Drug Administration Commissioner and a CNBC contributor, said he's worried that coronavirus cases in China are actually much higher than the official numbers show.
`` I think we are dramatically underestimating '' cases in China by `` tens of thousands, '' Gottlieb told CNBC's `` Squawk Box. ''
According to the WHO, more data needs to be collected before the virus is declared a global health emergency. The organization declined at two emergency meetings last week to say it was a worldwide emergency. | business |
Coronavirus infects Asia stocks with exposure to China | ( Adds comments from Malaysian rubber association in last two paragraphs)
SYDNEY, Jan 28 ( Reuters) - Shares of companies highly exposed to China's economy tumbled across Asia on Tuesday on rising concern about the impact of global travel bans associated with a virus outbreak, and even as some stocks involved in preventative health spiked.
After the United States and Canada warned against travel to China, Australian stocks resumed trading sharply lower after a public holiday. The benchmark S & P/ASX 200 index fell 1.4% weighed by stocks exposed to the illness that has killed more than 100 people and infected more than 2,700.
Shares of airlines and travel agents were sharply lower amid freezes on travel into and out of the world's second largest economy, while companies with an indirect exposure to Chinese consumer spending abroad, such as casinos and luxury retailers, also tumbled.
`` We don't know how long it will go, '' said Peter Costello, chairman of Australia's $ 115 billion sovereign wealth fund, the Future Fund, in a media briefing to coincide with a regular portfolio update.
`` Obviously we hope that the measures that have been taken now will contain the virus but it's still far too early. It will have an obvious negative effect on the Australian economy and indeed beyond, '' added Costello, a former Australian treasurer.
With Chinese markets closed for the week-long new year holiday, other stock markets in Asia were feeling an outsized impact of investor concerns.
South Korean cosmetic makers highly dependent on Chinese tourists coming to Seoul stumbled, with Tonymoly and Able C & C losing more than 12% and 15% respectively on Tuesday.
Japanese travel company H.I.S., which owns an amusement park popular with Chinese tourists in Nagasaki, has tumbled more than 14% since early last week.
Shares of Australia's biggest airline Qantas Airways Ltd were down 5% on Tuesday, while travel agent Webjet Ltd fell 11%. South Korea's top two airlines, Korean Air Lines and Asiana Airlines, dropped 6% and 5%. Japan Airlines lost 7.9% and airline ANA Holdings was down 6.0%.
Australia's top two casino companies Crown Resorts Ltd and Star Entertainment Group ltd, which both get a sizeable portion of revenue from vacationing Chinese gamblers, each fell about 5%.
Traders meanwhile pointed to companies which might generate sales from efforts to curb the spread of coronavirus as investment prospects.
The Malaysian Rubber Glove Manufacturers Association ( MARGMA) said on Tuesday China had requested more urgent shipments from the world's top producer, and its members were ramping up production. Top Glove Corp has seen its shares surge by a quarter in a week.
`` MARGMA believes that demand for gloves will inevitably shoot up and has urged its members to give priority to those affected areas and countries, '' association president Denis Low said in a statement.
Shares of South Korean mask producer Monalisa surged 29%, while South Korean pharmaceuticals Kukje Pharma and Woojung Bio added 29% and 21% respectively on Tuesday.
Japan's Kawamoto Corp, which supplies medical products including masks, saw its share prices triple, while Japanese protective clothing maker Azearth rose 53% in the past week. ( Reporting by Byron Kaye and Paulina Duran in Sydney; additional reporting by Hayoung Choi in Seoul and Hideyuki Sano in Tokyo; Editing by Lincoln Feast.) | business |
United Airlines cuts some China flights as demand falls amid coronavirus | United Airlines on Tuesday said it is canceling dozens of China flights next month because of a `` significant decline in demand '' for service to the country as it battles the growing number of coronavirus cases.
The Centers for Disease Control and Prevention on Tuesday recommended travelers avoid all nonessential travel to China while the Trump administration announced plans to expand screenings for the virus from five to 20 U.S. airports.
United has the most service to China among U.S. airlines.
The flight cancellations take effect Feb. 1 and last through Feb. 8. United also expanded it's travel waiver to include Hong Kong on Tuesday evening.
It wasn't immediately clear if United would cancel more flights.
`` We will continue to monitor the situation as it develops and will adjust our schedule as needed, '' United said in a statement. The airline operates about 12 flights a day from the U.S. to mainland China and Hong Kong, and the changes will cut that number by three or four per day. United will reduce service to Hong Kong from San Francisco and Newark, New Jersey; to Beijing from Washington Dulles, Newark and Chicago; and Shanghai service from San Francisco, Newark and Chicago.
Air Canada said Tuesday that it was also canceling some China flights `` to better match capacity with expected demand. '' The carrier said it has 33 flights to China a week `` and the resulting capacity reduction is relatively small. '' Customers affected by the cancellations can change their travel plans with the airline
American Airlines and Delta have not cut their China flights, but all three carriers are waiving change and cancellation fees for travelers booked to China because of the virus.
U.S. health officials said that the immediate risk from the virus that has infected roughly 4,700 people across the globe and killed 106 in China was low for Americans, but U.S. Health and Human Services Secretary Alex Azar warned Tuesday that it was still a `` potentially very serious public health threat. '' | business |
5 things to know before the stock market opens January 28, 2020 | U.S. stock futures were higher Tuesday, but indicating only a partial rebound from Monday's more than 450-point drop in the Dow Jones Industrial Average. The Dow went negative for 2020 after its worst decline since October. The Federal Reserve begins its first two-day policy meeting of the year Tuesday morning. No interest rate change is expected. Three Dow components reported earnings before the bell: 3M and Pfizer had mixed quarters, while United Technologies beat on quarterly profit and revenue.
Apple, also a Dow component, is scheduled to report fiscal first-quarter 2020 earnings after the bell Tuesday. Analysts are expecting the tech giant to deliver earnings of $ 4.55 per share, compared with $ 4.18 in the year-ago period. Revenue in Q1 is seen rising to $ 88.5 billion. Apple shares are up more than 5% in 2020. They more than doubled since the company announced fiscal first-quarter 2019 results. Apple's stock increase in recent weeks has led to a number of analysts revising their price targets higher.
Boeing has secured commitments for more than $ 12 billion in financing from more than a dozen banks, according to people familiar with the matter, as the industrial giant shores up its balance sheet in the fallout from the nearly yearlong worldwide 737 Max grounding. The planes were taken out of service after an Ethiopian Airlines crash last March occurred after a Lion Air flight went down in Indonesia in October 2018. Together, all 346 people on the jets were killed.
Chinese officials on Tuesday sharply increased their confirmed coronavirus cases to more than 4,500. The death toll in China rose to 106. The virus was first discovered in the city of Wuhan in Hubei province in December. The Centers for Disease Control and Prevention said Monday that the number of `` patients under investigation '' in the U.S. almost doubled since Thursday to a total of 110 across 26 states. However, there are still only five confirmed cases in the U.S.
President Donald Trump's lawyers are set to finish their opening statements Tuesday, after laying out a multipronged defense in Day Two at his Senate impeachment trial on Monday. Key Republican senators said that reports about former national security advisor John Bolton shift the tide in favor of calling him as a witness. However, it remains unlikely that two-thirds of the Senate will vote to remove Trump, as the Constitution requires. | business |
S & P 500 dominated by Apple, Microsoft, Alphabet, Amazon, Facebook | The S & P 500 is supposed to represent a broad cross section of large U.S. companies, giving index investors an attractive way to diversify their money while betting on the domestic economy.
That's no longer the case.
With Big Tech earnings kicking off this week, the industry's dominance is greater than ever: the five most valuable U.S. companies — Apple, Microsoft, Alphabet, Amazon and Facebook — now account for 17.5% of the S & P 500. That means investors passively putting money into the most popular exchange-traded fund, the SPDR S & P 500 ETF, are heavily, and perhaps unintentionally, wagering on U.S. tech companies.
In a report earlier this month, Morgan Stanley equity strategist Mike Wilson wrote, `` a ratio like this is unprecedented, including during the tech bubble. ''
The bet has served passive investors well. The S & P 500 climbed 31% last year, its best performance since 2013. Apple, which accounts for 4.9% of the index, soared 86% in 2019, while Microsoft, which makes up 4.6% of the benchmark, jumped 55%. When you get those sorts of gains from two companies that comprise almost 10% of a group, there's little reason to complain.
`` As more of these winners reach this mega-cap status, they dominate the end investments, '' said Scott Acheychek, president of REX Shares, a firm that develops thematic exchange-traded products. `` I constantly pound the table and beg people to know what you're investing in, what's inside your product and what you're looking for. ''
The bull market, which has stretched for longer than a decade, can't last forever. Whether its trade issues, political uncertainty, or an external shock like the coronavirus or an unforeseen war, the market will inevitably hit the skids after such an extended rally. Tech stocks tend to be the most volatile, so the same dynamic that's led to such outsized gains could result in particularly large losses.
Additionally, tech companies face unique threats as regulators in the U.S. and Europe scrutinize what they view as anti-competitive practices.
CNBC spoke with an assortment of financial advisors and industry experts for suggestions on how investors can realign their portfolios to avoid such heavy exposure to Big Tech. Here are some strategies:
The S & P 500 is weighted by market cap, which is why the big five tech companies have such a dramatic influence. The index's entire market value is $ 27.3 trillion. Apple and Microsoft each have market caps of more than $ 1 trillion, with Amazon and Alphabet close behind at more than $ 900 billion apiece.
But S & P also offers a way to value each component equally, whether it's Apple or beauty products maker Coty, which is worth a fraction of 1 percent of the iPhone maker. The S & P 500 Equal Weight Index gives every stock a 0.2% weighting, removing the risk of big losses ( or chance of big rewards) based on the performance of Apple and Microsoft.
`` If financial advisers are uncomfortable with tech weightings, they can use equal weighting, '' said Craig Lazzara, managing director and global head of index investment strategy at S & P Dow Jones Indices. `` The products we have reflect reality just fine. ''
There hasn't been a large outcry for the equal weight strategy for good reason. On a one-year, three-year, five-year and 10-year basis, the cap-weighted option has performed better. As of last year, according to the website ETF.com, the SPDR ETF was the most actively traded security in the category, while an equal-weight equivalent didn't crack the top 15.
Marguerita Cheng, a certified financial planner and the CEO of Blue Ocean Global Wealth, said she has recommended that clients in retirement accounts, which allow for rebalancing without tax implications, shift some money into equal-weighted funds. They offer a good way to broaden exposure and reduce some risk, she said, though Cheng acknowledged that clients need to understand the implications.
`` If you do equal weighting, the downside is you may not make as much money, '' she said. `` It's important for people to know why a fund is underperforming. ''
Acheychek of REX Shares says that investors are more excited than ever about tech, and they're demanding more ways to get into the sector without having to pick a stock or two.
Netflix, Tesla and Nvidia are all hot tech stocks outside the big five, and China's Alibaba and Baidu aren't in the S & P 500 because they're not domiciled in the U.S. Acheychek recommends a basket called FANG+, which combines those five names with the big five stocks and gives each a 10% weighting.
Late last year, REX introduced an exchange-traded note, which is similar to an ETF but structured like a bond instead of equity, to track FANG+.
`` If you want to make a tech play, make a tech allocation, you should trade a pure tech product, '' Acheychek said. This index is `` 10 of the biggest names that people know. It's providing exactly what people want, '' he said.
Other thematic products have popped up in recent years, including a number of ETFs focused on cloud computing, providing exposure to companies like Salesforce, Twilio and Shopify. In 2018, Bessemer Ventures took its 5-year-old Bessemer Cloud Index and partnered with Nasdaq to create a benchmark index `` designed to track the performance of emerging public companies primarily involved in providing cloud software to their customers. ''
Paul Pagnato, CEO of wealth management firm PagnatoKarp, said that one of his strategies is to combine passive management with fund managers who are actively focused on the leaders in emerging areas like genomics, 3D printing, autonomous vehicles, the cloud, connected devices and financial technology.
Rather than reducing allocation to technology, Pagnato wants to provide greater access to companies and areas that aren't fully represented in the S & P 500.
`` We 've chosen to invest in an actively managed ETF manager that has deep expertise in these disruptive innovations, '' said Pagnato, whose firm overseas $ 4.8 billion. `` The clients are getting tech exposure, but they're getting diversified within the technology space. ''
Last year, investors flocked into funds focused on sustainable energy and corporate governance, or a category called ESG — environmental, social and governance. According to a November blog post from Jon Hale, head of sustainability research at Morningstar, some $ 17.7 billion had flowed into open-end funds and ETFs focused on sustainability in 2019, more than triple the amount for all of the prior year, which was a record at the time.
Shareholders are demanding that companies recognize the importance of environmental and social issues, and they're finding that they can target their investments without sacrificing returns, actually generating better-than-average results.
Christina Kramlich, a financial advisor, said her firm, Chicory Wealth, has built a portfolio of companies that rank high when put through ESG screening. Most of the companies are based in the U.S., because she said it's hard to find foreign companies that match the firm's preferences, and they're focused on limiting use and production of fossil fuels while improving internal diversity.
The firm can accomplish all that while keeping fees very low, one of the main attractions to passive management.
`` I 've always been very skeptical about using ESG screens, and now I 'm really impressed and thinking the tools available for advisers and the general public are increasing, '' Kramlich said. With ETFs `` the bloom is a little bit off the rose. It's time to get back to some basic fundamentals and knowing what you own, '' she said.
None of that suggests that the majority of investors and advisors are tossing out the S & P 500 as the best benchmark for achieving consistent returns on equities.
After all, Big Tech is getting bigger for a reason. The companies in that group have dominant businesses in fast-growing markets and are sucking up an increasing amount of both consumer and enterprise spending. Financial advisors are responsible for keeping their clients attuned to the new dynamics of the index, but that doesn't mean they're pushing them away from it.
`` For how long have people been saying, tech is overvalued, tech is overvalued, tech is overvalued? '' said Andy Stout, chief investment officer of Allworth Financial. `` And it still continues to head higher. ''
Stout added that, based on earnings, the weighting of tech in the S & P 500 from a market cap perspective isn't far out of whack.
`` We're not going to be taking any sort of large active bets to try and time the market, to try to get in or out of technology, '' he said. `` More often than not, people get burned by that. ''
Correction: A previous version of this story incorrectly included Tesla among tech stocks in the S & P 500. The automaker is not in the index.
— CNBC's Darla Mercado contributed to this report.
WATCH: The big tech fights to watch in 2020
Follow @ CNBCtech on Twitter for the latest tech industry news. | business |
Coronavirus fallout could spark a global recession: Stephen Roach | One of the world's leading authorities on Asia warns that the coronavirus outbreak could wreak havoc on the global economy.
Stephen Roach, who was in China during the deadly 2003 SARS epidemic, believes the potential fallout could be worse now because growth is in a danger zone.
`` Big shocks for weak economies that don't have cushions to withstand them could lead to unexpected recessions, '' the former Morgan Stanley Asia chairman told CNBC's `` Trading Nation '' on Monday.
Even though Roach believes Chinese officials are taking more aggressive action to fight the coronavirus than during the SARS outbreak, he cautions that there could still be problems for months.
`` It's a frightening outbreak especially when it spreads this rapidly, '' said Roach, who's now a Yale University senior fellow.
So far, there are more than 4,500 confirmed cases in China and 106 people have died from the infection. The first cases were diagnosed in Wuhan, China, less than a month ago.
During the SARS epidemic, the World Health Organization reports 774 people died, and more than 8,000 people were infected.
If authorities manage to contain the new virus quickly, then Roach suggests the economic impact would be muted.
`` Hopefully, as was the case during the SARs-related disruption of 2003, this will be a temporary disruption to the China and world economy, followed by a post-virus rebound in the second half of 2020, '' Roach wrote in a special note to CNBC. `` But with China and the world on a far weaker growth trajectory, this could be wishful thinking. ''
Roach believes investors should remain vigilant.
`` You can't just dismiss this as an non-event in the context of what appears to be ongoing growth around the world, '' added Roach. `` Growth is weak and lacking in resilience it might otherwise have. ''
On Monday, virus fears weighed heavily U.S. stocks. The Dow and S & P 500 posted their worst days since October, and the tech-heavy Nasdaq saw its worst showing since August.
Disclaimer | business |
Dow to bounce, coronavirus cases spike and Boeing secures financing | U.S. stock futures were higher after the worst day of 2020 for stocks on concerns about the widening outbreak of coronavirus in China. But the projected rebound will only make a small dent in Monday's losses. The Dow and S & P 500 had their worst day since October, the Nasdaq since August, and the Dow went negative for 2020 with Monday's slide. ( CNBC)
Dow components 3M ( MMM), Pfizer ( PFE), and United Technologies ( UTX) lead this morning's earnings reports. Harley-Davidson ( HOG), Lockheed Martin ( LMT), McCormick ( MKC), PulteGroup ( PHM) and Xerox ( XRX) also report. ( CNBC) * 3M to cut 1,500 jobs as profit sinks 28% ( Reuters) * Pfizer posts 9% fall in fourth-quarter revenue ( Reuters) Apple ( AAPL), also a Dow stock, highlights today's after-the-bell earnings reports, with other quarterly numbers coming from Advanced Micro Devices ( AMD), eBay ( EBAY), Starbucks ( SBUX), Stryker ( SYK) and Xilinx ( XLNX). ( CNBC) * China and Apple's TV service will be under the spotlight when the tech giant reports earnings ( CNBC)
It's a busy morning for economic numbers, beginning with December durable goods orders at 8:30 a.m. ET. The S & P/Case-Shiller report on home prices is out at 9 a.m. At 10 a.m. ET, the Conference Board issues its January Consumer Confidence Index. Fed policymakers begin a two-day meeting today, with an interest rate decision and policy statement coming at 2 p.m. ET tomorrow. * Treasury yields turn lower ahead of Fed meeting ( CNBC)
Chinese health authorities said today that the coronavirus outbreak has killed 106 people and infected 4,515. The new numbers represent a sharp increase from yesterday. The U.S. State Department raised its travel advisory for China from Level 2 to Level 3, asking Americans to `` reconsider travel to China '' because of the fast-spreading virus. ( CNBC) * CDC is monitoring 110 possible coronavirus cases across 26 states in US ( CNBC) * Coronavirus prompts automakers to evacuate workers, weigh production delays ( CNBC) * Coronavirus vs. SARS: Health experts on the key differences ( CNBC) Hong Kong's leader has announced that all rail links to mainland China will be cut starting Friday as fears grow about the spread of a new virus. Chief Executive Carrie Lam said today that both the high-speed rail station and the regular train station would be closed in a containment effort.
President Donald Trump's lawyers are set to finish their opening statements today, after laying out a multi-pronged defense in Day 2 at the Senate impeachment trial on Monday. Key GOP senators said that reports about former national security advisor John Bolton shifts the tide in favor of calling him as a witness. ( CNBC) * Trump to hold a rally today with congressman who recently switched to be a Republican ( USA Today)
Trump is set to unveil his administration's much-anticipated Mideast peace plan today, the latest American attempt to resolve the Israeli-Palestinian conflict. The president is expected to present the proposal alongside Israeli Prime Minister Benjamin Netanyahu. ( AP)
Afghan forces and Taliban fighters clashed in a central region where a U.S. military aircraft crashed, officials said today, as the government tried to reach the wreckage site in a Taliban stronghold. On Monday, the U.S. military said an E-11A aircraft crashed in the province of Ghazni, but disputed Taliban claims to have brought it down. ( Reuters)
Boeing ( BA) has secured commitments of more than $ 12 billion in financing from more than a dozen banks, as the industrial giant shores up its balance sheet from the nearly yearlong grounding of the 737 Max. Boeing is expected to detail its financing strategy when it reports earnings before the market opens tomorrow. ( CNBC)
The Supreme Court said it will allow the Trump administration's `` public charge '' rule to take effect after the immigration policy had been blocked by lower courts. The rule will make it more difficult for immigrants to obtain permanent residency, or green cards, if they have used or are likely to use public benefits like food stamps and Medicaid. ( CNBC)
Federal antitrust regulators are probing a possible deal between a major U.S. dairy cooperative and Dean Foods, the bankrupt milk-processing giant, as the dairy industry realigns after decades of declining milk consumption. Federal officials are asking farmers and retailers to weigh in, the Wall Street Journal reported.
The pilot of the helicopter that crashed near Los Angeles, killing Kobe Bryant and eight others, told air traffic controllers in his last radio message that he was climbing to avoid a cloud layer before plunging more than 1,000 feet into a hillside. Some experts suggested that the pilot might have gotten disoriented because of fog. ( AP) * NBA postpones tonight's Lakers-Clippers game after Bryant's death ( USA Today) * In Bryant's passing, the WNBA also lost a real 'advocate ' ( CNBC)
Whirlpool ( WHR) reported better-than-expected adjusted quarterly profit, though missed revenue forecasts. The appliance maker was helped by higher prices and moderating growth in raw materials costs, and it said its outlook for 2020 was `` solid. ''
Caterpillar ( CAT) announced that former Boeing CEO Dennis Muilenburg resigned from its board of directors, and that the departure was not due to any disagreement with the heavy equipment maker.
Blackstone ( BX) raised its bid for Japanese hotel chain Unizo Holdings by 12% to $ 1.75 billion. That tops a bid from private equity firm Lone Star, whose bid currently has Unizo's support.
SAP ( SAP) raised its revenue and profit outlook, after the business software company reported in-line results in its first quarter under new CEOs Jennifer Morgan and Christian Klein.
BorgWarner ( BWA) is in advanced talks to buy rival auto supplier Delphi Technologies ( DLPH), according to a Bloomberg report. An agreement could be announced as soon as this week.
Beyond Meat ( BYND) was downgraded to neutral from overweight at JPMorgan Chase ( JPM), which cited valuation for the plant-based burger maker and cut its price target to $ 134 per share from $ 138.
Williams-Sonoma ( WSM) was upgraded to outperform from perform at Oppenheimer, which thinks the housewares retailer's operating margins have stabilized.
Airbnb is giving five people a chance to spend a two-month sabbatical in the Bahamas in an attempt to boost the Caribbean island damaged last year by Hurricane Dorian. Those selected will work on projects with a nonprofit for two months including coral reef restoration, pineapple farming, boating building and more. ( AP) | business |
CDC tells travelers to avoid China in expanded travel warning as coronavirus spreads | The Centers for Disease Control and Prevention is telling Americans to avoid all nonessential travel to China, expanding its travel warning from the city of Wuhan to the entire country as the coronavirus outbreak worsens, the agency said Tuesday.
Last week, the CDC advised against all nonessential travel to Wuhan, the epicenter of the disease's outbreak and where the majority of cases have been reported.
The U.S. Department of State on Monday also raised its travel advisory for China from Level 2 to Level 3, asking Americans to `` reconsider travel to China due to the novel coronavirus. '' They added that some areas have `` added risk. ''
Chinese health authorities said Tuesday that the virus, which was first diagnosed less than a month ago, has now killed 106 people and infected 4,515.
Scott Gottlieb, a former Food and Drug Administration Commissioner and a CNBC contributor, said he's worried that coronavirus cases in China are actually much higher than the official numbers show.
`` I think we are dramatically underestimating '' cases in China by `` tens of thousands, '' Gottlieb told CNBC's `` Squawk Box. ''
Chinese authorities have quarantined several major cities in China and canceled Lunar New Year's festivities in Beijing and other areas.
Multiple cases of the virus have been confirmed in Hong Kong, Macao, Taipei, Thailand, Vietnam, South Korea, Singapore, Malaysia, Japan, Australia, France and the United States. There have been no confirmed deaths caused by the illness outside of China.
The CDC confirmed five cases of coronavirus in the U.S. and said Monday that U.S. health officials are currently monitoring 110 people across 26 states for the coronavirus. | business |
Apple's latest iPhone lineup was a hit during the holidays | We're not very far into 2020, but Apple is starting the year off with some strong financials. The company's Q1 2020 earnings release just crossed the wire, and the numbers here are significant: Apple reported a total of $ 91.8 billion in quarterly revenue, setting new all-time quarterly record in the process. As usual, iPhone sales ( $ 55.9 billion) and Apple's services ( $ 12.7 billion) were among the most notable contributors to the company's growth, but it's worth taking a closer look at what worked in Apple's favor going into 2020.
After all, Apple published an unusually harrowing earnings report around this time last year. iPhone sales had tanked mostly thanks to weak demand in China, which prompted the company to dial down its revenue guidance down around $ 5 billion. ( The last time Apple had to pull off that maneuver was about 15 years ago.) Sure, the company still generated a total of $ 84.3 billion, but it was still a notable miss considering Apple was obviously hoping for another record-breaking quarter. So, what was different going into 2020?
The iPhone XR, XS and XS Max were good phones, but the 11, 11 Pro and 11 Pro Max wound up being more potent upgrades than we had expected. Battery life improvements, faster performance improved cameras — all of these contributed to devices that were likely easier to move than the models that came before it. As of November 2018, Apple no longer discloses how many iPhones ( not to mention iPads and Macs) it sells in a given quarter, so it's difficult to get a sense of how many iPhone 11-series devices the company sold compared to other models. Still, CEO Tim Cook cited `` strong demand '' for the iPhone 11 and 11 Pro as the biggest reason for this earnings win, so these new models clearly blew the old ones out of the water. In fact, Apple reported the most iPhone sales revenue since in a holiday quarter since the iPhone X launched over two years ago, thanks mostly to the standard iPhone 11.
The rest of Apple's hardware story this quarter was a mixed bag: Its combined Wearables and Home segment surged 37 percent year-over-year, presumably fueled by the Apple Watch and the company's slate of wireless headphones. ( While it gets lumped into the same basket as those other devices, it's hard to imagine the HomePod making much of a financial dent this time.) Meanwhile, Mac and iPad sales sagged this quarter -- looks like the pricey revamps and refreshed basic models didn't move the needle much during the holidays. That's fine, though: Apple's success still hinges on the iPhone, and the company's work on those 2019 models clearly paid off.
As mentioned, China was Apple's biggest sore spot last year, but the sales situation there seemed to stabilize over time. It's still not quite what it used to be, though: The Greater China region accounted for $ 13.58 billion in this quarter, which really isn't that much more than it generated for Apple during last year's bum quarter. Instead, more established markets like the Americas and Europe did the lion's share of Apple shopping over the past three months -- the people in former spent more than $ 4 billion more on Apple products than it did the year before, while folks in Europe spent about $ 3 billion more. While that shopping shift worked out to Apple's benefit for now, you can bet that it won't give up on currying favor with Chinese consumers any time soon -- the upsides are just too good.
With all that said, we might see Apple's economic relationship with China remain tense because of a hot news topic. A Nikkei report published this past October suggested Apple was leaning on manufacturing partners to ramp up production of the iPhone 11 and a new, lower-cost iPhone expected to debut this Spring. Those plans, however, might be derailed by a troubling coronavirus outbreak that prompted the Chinese government to enact travel bans and quarantine millions of citizens. The impact on these infections on China's economy, and particularly its manufacturing sector, remain to be seen.
As mentioned earlier, Apple's fortunes still rise and fall because of the iPhone, but it's working on becoming less reliant on smartphones for success. Tim Cook noted in the earnings release that Apple's services business also hit an all-time record, raking in a total of $ 12.7 billion. He also added on the customary earnings call that just about every Apple service, from iCloud to the App Store saw double-digit growth. In other words, Apple's work is working... if perhaps not as fast as the company would like.
At this point, it's hard to say what -- if any -- ceiling to expect for Apple's services revenue. That's especially true when you consider that one of the company's flagship offerings -- Apple TV+ -- isn't fully represented in today's results. The streaming service costs $ 4.99/month, but Apple offered a year's worth of access for free to anyone who purchased a new iPhone, iPad, Apple TV, iPod Touch or Mac beginning in 2019. The company could be looking at a significant uptick in services revenue once those free accounts convert into paid ones — that is, unless streaming fatigue sets in and people cancel Apple TV+ before their free years are up.
In any case, Apple's earnings call is happening right now, so stay tuned for updates as Tim Cook and CFO Luca Maestri dig deeper into today's news. | tech |
Happiness Biotech: Sales of Cordyceps Mycelia Products Surged over 100% in January | NANPING, China, Jan. 28, 2020 /PRNewswire/ -- Happiness Biotech Group Limited ( the `` Company '' or Nasdaq: HAPP), an innovative China-based nutraceutical and dietary supplements producer, announced today that the sales of its Cordyceps mycelia products surged over 100% in January due to the outbreak of the Wuhan Coronavirus.
As of January 27, 2020, revenue from Cordyceps mycelia products has reached over RMB 8 million ( approximately USD 1.2 million), 100% higher than December 2019 and 125% higher than November 2019.
Starting from the end of December 2019, China has seen massive outbreaks of the new coronavirus. The demand for products that targeting people with weak immune system has been stronger than ever. The Company obtained the approval for Cordyceps Mycelia Oral Liquid from the China Food and Drug Administration ( `` CFDA '') back in 1997, being among one of the first companies to receive this approval. According to the results of clinical evaluation, Cordyceps Mycelia Oral Liquid regulates humoral and cellular immunity and improves phagocytosis of macrophages, thus improving body resistance and preventing disease. Such clinical evaluation results were approved by CFDA to be included in Cordyceps Mycelia Oral Liquid's product description.
`` Since the outbreak of Wuhan coronavirus, the demand for our Cordyceps Mycelia Oral Liquid and other nutritional products has increased dramatically. As a public company and being aware of these demands, we feel it is our responsibility to contribute and respond to people's needs in a time when everyone is doing everything in their power to reduce the impact of this disease. We have requested that our employees continue manufacturing even amidst the Chinese New Year's celebrations. We anticipate the demand will continue to increase over the next several months before the coronavirus is fully under control. We are prepared to increase the production capacity at any moment, if necessary, '' said Mr. Xuezhu Wang, CEO of the Company.
About Happiness Biotech Group Limited. Headquartered in Nanping, China, Happiness Biotech Group Limited is an innovative China-based nutraceutical and dietary supplements producer focused on the research, development, manufacturing and marketing of a variety of products made from Chinese herbal extracts and other ingredients. The Company's goal is to provide high-quality products to our consumers. Over the past 14 years, the Company has established a product portfolio consisting of 32 CFDA registered `` Blue-Cap '' SKUs of nutraceutical and dietary supplements products. For more information, please visit: www.happ.org.cn.
Forward-Looking Statements This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as `` may, `` will, `` intend, '' `` should, '' `` believe, '' `` expect, '' `` anticipate, '' `` project, '' `` estimate '' or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's goals and strategies; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
View original content: http: //www.prnewswire.com/news-releases/sales-of-cordyceps-mycelia-products-surged-over-100-in-january-300994160.html
SOURCE Happiness Biotech Group Limited | business |
US Treasury curve inverts as virus outbreak fans growth fears | ( Updates with chart, comment context)
LONDON, Jan 28 ( Reuters) - The U.S. Treasury yield curve, measured by the gap between yields on three-month and 10-year bonds, briefly inverted on Tuesday for the first time since October as investors worried about the economic impact from a virus outbreak in China.
An inverted curve, when longer-dated yields fall below shorter-maturity ones, has been a fairly reliable predictor of U.S. economic recessions in the past.
The death toll from the coronavirus outbreak in China has risen to more than 100 and the virus has spread to more than 10 countries, including France, Japan and the United States.
That has rattled world markets, fueling concerns about the impact on a world economy hit last year by a trade war between the United States and China.
Investors in turn have rushed into safe-haven U.S. Treasuries, with 10-year yields falling on Tuesday to 1.57%, their lowest since early October.
The gap between yields on three-month notes and 10-year government bonds briefly fell to -0.015 basis points, its lowest since October, before returning to around 0.01 bps.
`` The movement in the curve is probably telling us we are seeing an increasing shift away from risk assets to safe assets, including Treasuries, and the entire curve is being pulled down, '' said Philip Shaw, chief economist at Investec.
`` If the signs were to multiply, there could be a more severe impact not just in China but globally. Markets are starting to speculate the Fed could bring rates down by summer. ''
That three-month/10-year part of the yield curve is closely watched as a recession indicator. It inverted in March last year for the first time since the financial crisis, a signal that a recession was likely to follow in one to two years.
The yield curve can revert and reinvert many times before a recession hits.
It has traded in positive territory since October, when optimism that the United States and China would reach a trade deal boosted risk sentiment.
The two-year/five-year curve also inverted on Monday. The gap between two-year and 10-year yields, also considered a recession signal, was at the flattest since Nov. 29.
Markets have ratcheted up expectations the Federal Reserve will cut U.S. interest rates this year, fully pricing in one 25- basis-point cut and a 50% chance of a second easing later in 2020, Fed funds futures show.
( Reporting by Dhara Ranasinghe and Sujata Rao; editing by Larry King) | business |
Beijing GeoEnviron Engineering & Technology: Chinese Companies Assist in the Response to Coronavirus Epidemic | BEIJING, Jan 29, 2020 - ( ACN Newswire) - - As the Coronavirus outbreak continues to spread, the Chinese government is responding with high-level attention to the provision and deployment of prevention and control. Thirty provinces and major cities have activated their highest level of emergency response as top-level Politburo Standing Committee, headed by President Xi Jinping, has taken direct control of the crisis and response.
Premier Li Keqiang arrived in Wuhan on January 27, directing virus prevention work, and for a personal inspection of hospitals in the city. With Wuhan's overburdened healthcare system, the government called for construction of two emergency hospitals, undertaken on January 23, for completion on February 3. Work on the sites has attracted international attention for its feverish pace, both day and night, displaying the Chinese resolve.
The Wuhan Huoshenshan Hospital, a 1,000-bed facility covering 35,000 sq.m at the Caidian District site, will treat coronavirus patients in isolation. The 900 workers mobilized for emergency construction know they are working in a race against time, against a tight schedule and against the coronavirus epidemic as the disease spreads rapidly across China, Asia, and further.
Two companies immediately offered assistance. Beijing GeoEnviron Engineering & Technology, Inc ( BGE) ( 603588.SH) and sister Oriental Yuhong Waterproof Technology, Co Ltd ( 002271.SZ) are committed to sustainability and society. BGE is a pioneer in environmental remediation and provides pollution control and waste treatment systems. Oriental Yuhong produces advanced construction materials and is the largest waterproofing system provider in Asia.
On-site, BGE was responsible for interior construction, including deployment of personnel, equipment and materials, the overall implementation of remediation engineering, and the cross-coordination with civil engineering and other specialties. BGE applied 35,000 sq.m of anti-seepage materials twice in less than 2 days, having completed an anti-seepage system for the underground foundations, facilitating subsequent work.
With the completion of work at the first site, BGE has moved staff to the site of second facility, the Leishenshan Hospital, while Oriental Yuhong remains on-site, responsible for waterproof construction and overall coordination with government agencies and departments to ensure the supply of advanced materials.
China's rapid and comprehensive response to the crisis, and the voluntary response of many companies such as BGE and Oriental Yuhong, are demonstrating the country's strength and determination in containing and controlling this epidemic. China appears on the road to a successful anti-epidemic war.
Media: Jessi Hu, BGE China, +86 1062490159, brand @ bgechina.cn, http: //bgechina.cn
Copyright 2020 ACN Newswire. All rights reserved.
© Japan Corporate News, source JCN Press Releases | business |
Stores closed, employees evacuated, travel restricted as coronavirus spreads | Jan 28 ( Reuters) - Companies around the globe from Facebook to Japan's Nippon Steel have restricted travel to China, as the outbreak of a new coronavirus, which has killed over 100 people and infected more than 4,000 in the world's most populous country, sparks international alarm. Here's how companies have responded to the outbreak, which orginated in Wuhan, the capital of China's Hubei province:
TRAVEL ADVISORIES/EVACUATIONS/QUARANTINES:
* Facebook asked employees to halt non-essential travel to mainland China and to work from home if they had travelled
after an extended Lunar New Year break ends on Feb. 2.
* Tiktok owner Bytedance asked employees who travelled during the holidays to quarantine themselves and work from home for 14
restricted travel to mainland China and Hong Kong, and asked employees returning from Hubei to work from home for 14 days.
employee travel to China should be avoided.
* LG Electronics and electric car battery maker LG
employees to avoid non-essential trips to China as have LG Display
. Honda evacuated around 30 employees and their families from Wuhan on a government charter flight.
* Nissan is planning to send back some Japanese staff working at its JV with Dongfeng Motors in Wuhan and their families on the chartered flight as well.
* Samsung Electronics advised employees who recently visited Hubei to stay at home for seven days.
* Japanese steelmaker Nippon Steel restricted travel to China.
* Singaporean conglomerate Keppel Corp, which has 170 staff in Wuhan, advised staff to avoid non-work-related visits to and from mainland China and not to travel to Hubei province. It will monitor staff in China and those who have returned to Singapore from there in the past 14 days.
* Novartis said it is asking staff in China to work from home until Feb. 10 and has suspended business travel to and from Wuhan.
* Nestle has deployed additional biosecurity measures at its factories, offices and distribution centres in China. It does not have manufacturing facilities in Wuhan.
* Volkswagen asked staff at its China unit to work from home between Feb. 3 and Feb. 17.
* Brazilian miner Vale SA has suspended travel by its employees to and from China indefinitely and said employees in China will work remotely.
* Goldman Sachs has instructed staff who have been in mainland China to work from home or be out of the office for 14 days since they were last there, according to an internal notice.
STORES SHUT:
* McDonald's suspended business in five cities in Hubei
suspended delivery services in Hubei.
* Yum China Holdings Inc temporarily closed some of its KFC and Pizza Hut stores in Wuhan.
* Luckin Coffee will keep stores closed in Wuhan throughout the Lunar New Year holidays.
* Japan's Fast Retailing temporarily closed about 100Uniqlo stores in Hubei. IKEA closed its one store in Wuhan.
* Walt Disney temporarily closed its Shanghai and Hong Kong theme parks and resorts during what is likely the busiest time of the year.
* Imax delayed film releases in China.
* H & M has closed 45 stores and suspended business travel to and within China, a spokeswoman said. Staff arriving from China are recommended to stay home for 14 days before returning to work.
* Swatch has closed five stores in Wuhan and suspended all travel to and from China.
AIRLINE REFUNDS/CANCELLATIONS:
* Finnish airline Finnair has suspended its routes to Nanjing and Beijing's Daxing International airport until the end of March, the first European airline to cancel flights to the country.
* Hong Kong's Cathay Pacific and its Cathay Dragon will cut capacity to and from mainland China by 50% or more from Jan. 30 to end-March. The airline will also rebook, reroute or refund tickets booked on or before Jan. 28 for travel by March 31 to or from mainland China.
* Australia's Qantas Airways said it will offer free refunds for tickets issued worldwide on or before Jan. 24, for journeys to and from mainland China between Jan. 24 and Feb. 29.
* Air Seoul suspended all flights to China and waived refund penalty. Taiwan's China Airlines rearranged some flights and cancelled others.
* China's mainland airlines, including Air China,
offering free refunds across the mainland for tickets purchased before Jan. 24.
* Malaysia's AirAsia will offer free refunds for tickets booked before Jan. 24, and for travel to and from mainland China until Feb. 15, and return flights between Feb. 16-29.
* Air France KLM is offering to exchange or refund tickets issued for travel to or from China up until Feb. 29.
23.
* United Airlines is cancelling some flights to China.
HOTELS:
* InterContinental Hotels will allow customers to change or cancel stays scheduled up to Feb. 3 across mainland China, Hong Kong, Macau and Taiwan.
* Hyatt Hotels said guests who had booked stays through its official channels and are cancelling due to the coronavirus outbreak, or are Chinese guests outbound to its Asia Pacific hotels, can cancel stays or change dates for free.
BOOKING PLATFORMS, AGENCIES:
* Ctrip, China's largest online booking platform, said more than 300,000 hotels on its platform had agreed to refund on bookings between Jan. 22 and Feb. 8. Refunds also include flight tickets, cruises and car rents
* Fliggy, Alibaba's booking site, offered similar refunds.
* Some Chinese tour operators such as China International Travel
operators cancelled tours to China.
( Reporting by Sophie Yu in Beijing, Jamie Freed in Sydney, Ritsuko Ando in Tokyo, Anna Ringstrom in Stockholm, Ben Blanchard in Taipei, Naomi Tajitsu in Tokyo, Heekyong Yang and Jane Chung in Seoul, Josh Horwitz and Brenda Goh in Shanghai, Neil Jerome Morales in Manila, Sumeet Chatterjee in Hong Kong, Paul Arnold and Silke Koltrowitz in Zurich, Laurence Frost in Paris and Uday Sampath in Bengaluru; Writing by Sayantani Ghosh and Josephine Mason; Editing by Shounak Dasgupta, Lisa Shumaker and Maju Samuel) | business |
Wall Street analysts predict for Apple earnings | ( This story is for CNBC PRO subscribers only.)
No matter what happens with Apple's earnings report after the bell on Tuesday one thing is certain: the stock is likely heading higher, according to a number of Wall Street analysts.
Shares of the company are up 27% since the tech giant's last earnings report in October, which many analysts attribute to the upcoming 5G cycle.
But while Apple TV+, iPhone sales, Services and Wearables are expected to get most of the attention they aren't the only story lines.
China has once again been thrust into the spotlight as investors will also be looking for an update on the impact of the coronavirus on the company.
Here's what analysts expect from Apple's first quarter earnings report: | business |
Q & A: Meet the crockpot of cannabis extraction ( Includes interview) | Hi, what are you looking for?
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The Source Turbo is capable of safely producing highly concentrated ethanol-extracted oils from cannabis and other botanicals. Roses, hops, and herbs can all be quickly extracted, using alcohol, into an oil that the user can use for a variety of products and purposes—edibles, perfumes, alternative medicines, tinctures, aromatherapy products, and more.
Troy Ivan from ExtractCrafts explains how the technology works.
Digital Journal: How common is it for cannabis users to make their own concentrates? What are the reasons for people doing so?
Troy Ivan: Cannabis users making their own concentrates started a very long time ago with kief, hash or steeping cannabis in oils or fats to make infusions used creating medicated culinary delights. Alcohol-based cannabis tinctures were a common medicine used in the home in past centuries. In more recent history, some people were doing iso and ethanol extraction in the 1970s and 1980s, and in fact, there was even a machine people could buy called the ‘ Isomerizer’ in the mid-1970s. In the 1990s people started blasting butane extractions at home in California and not too long after Rick Simpson’ s documentary “ Run From the Cure ” brought the idea of doing rudimentary cannabis extraction to the home to a much wider audience leading to a proliferation of people using rice cookers, crockpots, and double boilers.
At the same time, people were rediscovering the simplicity of making simple cannabis infusions in the home simply by steeping cannabis in a carrier oil for an extended period. While none of these techniques were perfect, some of them downright dangerous, the idea of people making their own concentrates isn’ t new, it’ s just new to a rapidly growing population new to cannabis. So, is it common? I don’ t know. Is it getting really popular? Yes! There’ s a large and fast-growing audience for making concentrates at home, an expanding knowledge base, and our home extraction solution making it safe and achievable for anyone. This audience is made up of home growers wanting to process the fruits of their own labor, people concerned with having control of the contents of concentrates they are consuming, and people interested in the craft itself. The craft itself is so fun and activates your creativity so strongly it becomes an obsession.
We’ ve all seen the stories of pesticide tainted cannabis recalls, vape carts killing more than 30 people, candy hardener and pine resin being found in concentrates on dispensary shelves, and other tales that make us uneasy about concentrates we’ re ingesting into our bodies. This is one of the prime drivers of why consumers are looking to make their extractions, they can produce a product that not only perfectly suits their individual needs and they control exactly what’ s in it and what goes into their bodies. With the increasing number of people growing their own cannabis and hemp at home, they love being able to process the fruits of their labor into incredible quality concentrates. Not to mention, you can even use trim to make a pretty good end product from something you may otherwise treat as trash.
Making your own full-spectrum CBD oil is also something becoming very large for us. People can purchase CBD products at the store, gas station, and all over the internet, however, these products are mostly made from CBD isolate. CBD isolate is very processed hemp oil that has removed all other cannabinoids, terpenes, and flavonoids that give each strain its strengths and character. It’ s been shown time and time again that full-spectrum CBD oil, like you, would make with our process heightens the effectiveness of CBD much more than isolate products. Retail CBD products are also very expensive and most of them don’ t perform as advertised, so making your own is a great option. You can buy a pound of good quality, CBD rich hemp legally for $ 150- $ 250 and pull off between 50g-70g of oil that’ s around 70% pure. That equates to around 35,000mg – 49,000mg of powerful full-spectrum oil from a single pound of inexpensive hemp.
DJ: What was the idea behind Source Turbo?
Ivan: The idea behind the Source was to put the power of nature and healing in the hands of people to improve both health and lifestyle. The name came from our idea of, “ Get back to nature, get back to the Source. ” We took a piece of lab equipment called a rotovap, shrunk it to fit on a countertop, and made it easy enough to process by pushing a single button while providing the safety that’ s not been seen before. This gives people the power and equipment to create highly customized healthy versions of products sold on store shelves.
What we have is a marriage of advanced tech and engineering with a movement away from big pharma and artificial, over-processed everything. We put this power in people’ s hands. Sustainability is another driving force where users maximize the potential of their plant materials and reclaim the ethanol for reuse. For example, to make a very clean extract for smoking or vaping some extraction efficiency is given up and a degree of cannabinoids will be left behind in the processed material. That same material can be processed a second time more aggressively to make a heavier extract for edibles or topicals getting everything out of the starting material possible. Lastly, when users craft cleaner and more potent end products they use less of it and further maximizes the value.
DJ: How does the Source Turbo work?
Ivan: The Source Turbo is an ethanol recovery appliance used in the process of ethanol extraction. Ethanol is a fancy word for grain alcohol, like the brand ‘ Everclear’ every one may be familiar with from college parties. Ethanol is food grade and serves as the solvent that collects the essential oils from cannabis, hemp, or almost any kind of botanical. In the case of cannabis and hemp, the essential oils are primarily cannabinoids and terpenes. By simply combining the plant material and ethanol for a few minutes to a few days, the oils from the plant will effectively melt into and co mingle with the ethanol. Then, the plant matter is separated and filtered to create a ‘ tincture’ where the ethanol holds all the collected oils in the solution. To isolate the oil collected in the tincture and claim the beautiful concentrate the ethanol must be removed, and this is what the Source Turbo does.
By using a vacuum, we lower the evaporation point of ethanol from 173°F to around 100°F which retains all the delicate components of the oil, that would otherwise be lost to the higher heat, intact and beautiful throughout processing. After about 2.5 hours the oil will remain in the center crucible and all the ethanol will be recovered in the collector for reuse. Working under vacuum at low temps not only produces great concentrates, but it also keeps the process as safe as possible by trapping all the flammable ethanol vapor in the machine and not allowing it to fill the surrounding area.
DJ: What are the risks of this practice?
Ivan: There are a couple of risks that can be avoided with common sense. High-proof ethanol is quite flammable as indicated on the container label and care must be taken as with all other flammable household products when handling and storing. Our equipment mitigates the risk by working at low temperatures and under vacuum, but it’ s still very important to work with ethanol in a well-ventilated area, away from any source of ignition. The other possible risk is someone concentrating a botanical they are not familiar with and using it without regard to safety and possibly ingesting something dangerous. Some botanicals can be harmless in their natural form but a health hazard when concentrated, so while it may be common sense, everyone must remember to be careful to confirm that any concentrate intended for processing and consumption is safe for the intended use.
DJ: Is any expertise required to operate the device?
Ivan: No expertise is required at all and that was all the engineering was centered around. We designed it so anyone can use it. We’ ve made it so easy to use people forget that the operation they’ re performing is actually a highly complex continuous manipulation of ambient temp, ambient pressure, internal temp, internal vacuum, changing internal pressure, evaporation of a volatile liquid, condensation of vapor, recovery of ethanol for reuse, and separation of the oil. To do all of that with the Source Turbo all someone needs to know how to do is push a button, it couldn’ t be easier.
DJ: What is your marketing strategy?
Ivan: We are positioned as the world’ s first real crossover company, being as applicable to cannabis and hemp as scenting, apothecary, culinary arts, and medicinal applications. Currently, we are primarily focused on marketing across social media. We have been working to scale manufacturing over the past couple of years to get to the point where we can keep up with demand. We’ re still struggling to keep up but getting close to the point where we can start expanding our marketing presence without wasting marketing dollars creating more demand we can’ t keep up with. We are in a position where our marketing efforts will begin to accelerate, you’ ll see us more frequently across traditional marketing and our media visibility is rapidly increasing.
The cornerstone of our marketing is our online community and user groups. Both of them can be found on Facebook: “ ExtractCraft Users Group ” is age restricted due to the cannabis topics discussed and the “ ExtractCraft Test Kitchen ” that covers the wilder side of extracting mushrooms, herbs, flowers, roots, barks, woods and all kinds of things. Our user groups are small, but they are highly engaged, focused, kind, welcoming, and very supportive newcomers and helping them build skills and knowledge. They help those with no knowledge of extraction become successful with great results from the first or second run. These groups are unlike anything on the internet, they are special. Word of mouth is the strongest form of marketing there is, and this community has been a tremendous help for us. We really owe our community members tremendous gratitude. In addition to the education in the user group, there’ s also a great blog at www.extractcrafter.com with easy steps for beginners to follow, as well as more advanced techniques. These resources get shared in other groups and communities and have had a great impact in spreading the word about who we are and what we are doing, while also providing education.
For the future, there are a few things we expect to see. First, our marketing kicks into high gear with a lot of high-quality content for instruction and education across all the markets that crossover with our equipment. Second, this year we will complete the necessary compliance and manufacturing requirement to finally allow us to expand global distribution to all parts of the world that have been begging us to send products for the past couple of years. Lastly, our recent rebranding and new logo were launched and have given us a much better look. The website, Amazon, and YouTube channel changed over to the new look recently and that rebranding will continue with it being applied to products and packaging throughout the year.
Dr. Tim Sandle is Digital Journal's Editor-at-Large for science news. Tim specializes in science, technology, environmental, and health journalism. He is additionally a practising microbiologist; and an author. He is also interested in history, politics and current affairs.
New York's weaknesses in the face of climate change, the city is erecting a $ 1.45-billion system of walls and floodgates.
Kroger, the country’ s biggest traditional grocery chain, is ending some benefits for unvaccinated workers.
Australia will push ahead with plans to ease Covid restrictions before Christmas.
Mauna Loa Observatory in Hawaii. Source - NOAA - Earth System Research Laboratories Global Monitoring LaboratoryToday, hardly a week goes by without some sort...
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GEOTAB's key trends for fleet vehicles revealed | Hi, what are you looking for?
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Geotab has also provided these trends with Digital Journal, signalling where the telematics sector is heading. Telematics is an interdisciplinary field that encompasses telecommunications, vehicular technologies, covering areas like, road transportation, road safety, electrical engineering, and advanced sensors.
Big data
The key industry insights include the importance of collecting data. These days not collecting data is like not being able to see around the corner. This means that big data is the future of telematics. Companies like Geotab have the technological capability to take all this collective data and provide valuable insight toward the design of Internet of Things ( IoT) fleet transportation, autonomous vehicles and smart cities, more productive businesses, and safer communities.
Fleet electrification
In addition, Geotab has announced it is innovating and moving beyond fleet and into smart cities and video telematics. With this, fleet electrification is increasing and is this trend is here to stay. One option is for organizations to use telematics insights to make the transition easier. As an example, Geotab offers a tool that analyzes fleet telematics over a set period and then creates an electrification recommendation based on each vehicle’ s driving patterns.
Sustainability
Sustainability is part of innovation and the telematics approach is also useful for creating sustainable fleets, whether these are used to optimize charging locations, improve routing, manage idling and more.
Digital transformation in government
At the CONNECT 2020 event, Geotab presented three historic contracts with GSA ( General Services Administration) Fleet, the State of California, and NYC Vision Zero programs. By using telematics, it is possible for governments can improve municipal operations such as snow clearing, street sweeping, sanitation and policing. “ Our goal is to connect not just the vehicle, but all the controllers on the vehicles.
Dr. Tim Sandle is Digital Journal's Editor-at-Large for science news. Tim specializes in science, technology, environmental, and health journalism. He is additionally a practising microbiologist; and an author. He is also interested in history, politics and current affairs.
The hunt for answers - like whether the Omicron variant will trigger new waves of infection.
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COPYRIGHT © 1998 - 2021 DIGITAL JOURNAL INC. Digital Journal is not responsible for the content of external sites. Read more about our external linking. | general |
As coronavirus spreads, anti-China sentiment must give way to a global effort to contain the disease | There is no certainty as to where and when the | business |
Renault set to name ex-Seat chief as CEO: source | Hi, what are you looking for?
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French auto giant Renault will on Tuesday name Luca de Meo, a former top-ranking Volkswagen director, as its new chief executive as it seeks to regain its footing after a year of turmoil sparked by the arrest of Carlos Ghosn, a source close to the company said.
Renault's board is set to meet at 2:00 pm ( 1300 GMT) to ratify the nomination, having already backed the choice at a meeting in December.
It would be a homecoming of sorts for De Meo, a 52-year-old Italian who began his career at Renault in the 1990s before taking up posts at Toyota, Fiat and eventually VW in 2009, where he was put in charge of marketing at Audi.
He later was named head of VW's Spanish brand Seat, which last year posted its highest annual sales ever, a stunning revival of the brand's fortunes after just a few years.
De Meo will replace Thierry Bollore, a former close associate of Ghosn's who was ousted in October by Renault's president Jean-Dominique Senard, who said a `` fresh start '' was needed to restore trust with Japanese partner Nissan.
The alliance was pushed to the brink following Ghosn's shock arrest in Tokyo in November 2018 on charges of financial misconduct, including under-reporting millions of dollars in salary.
Since then Renault has seen sales slump amid increasing headwinds for European carmakers and its share price has dropped by more than half over the past year.
Ghosn was eventually stripped of his management roles, though he is now demanding millions of euros in retirement pay and other compensation from Renault in the wake of a brazen escape from Japan to Lebanon.
De Meo may not be able to immediately take up his new role because of contractual obligations with Seat, which he quit earlier this month, two sources close to Renault told AFP.
He would be the first foreigner to lead Renault in its more than 120-year history -- the Lebanon-born Ghosn obtained French citizenship before taking control of the group in 2005.
De Meo attended French schools and speaks five languages fluently, including German and English.
French auto giant Renault will on Tuesday name Luca de Meo, a former top-ranking Volkswagen director, as its new chief executive as it seeks to regain its footing after a year of turmoil sparked by the arrest of Carlos Ghosn, a source close to the company said.
Renault’ s board is set to meet at 2:00 pm ( 1300 GMT) to ratify the nomination, having already backed the choice at a meeting in December.
It would be a homecoming of sorts for De Meo, a 52-year-old Italian who began his career at Renault in the 1990s before taking up posts at Toyota, Fiat and eventually VW in 2009, where he was put in charge of marketing at Audi.
He later was named head of VW’ s Spanish brand Seat, which last year posted its highest annual sales ever, a stunning revival of the brand’ s fortunes after just a few years.
De Meo will replace Thierry Bollore, a former close associate of Ghosn’ s who was ousted in October by Renault’ s president Jean-Dominique Senard, who said a “ fresh start ” was needed to restore trust with Japanese partner Nissan.
The alliance was pushed to the brink following Ghosn’ s shock arrest in Tokyo in November 2018 on charges of financial misconduct, including under-reporting millions of dollars in salary.
Since then Renault has seen sales slump amid increasing headwinds for European carmakers and its share price has dropped by more than half over the past year.
Ghosn was eventually stripped of his management roles, though he is now demanding millions of euros in retirement pay and other compensation from Renault in the wake of a brazen escape from Japan to Lebanon.
De Meo may not be able to immediately take up his new role because of contractual obligations with Seat, which he quit earlier this month, two sources close to Renault told AFP.
He would be the first foreigner to lead Renault in its more than 120-year history — the Lebanon-born Ghosn obtained French citizenship before taking control of the group in 2005.
De Meo attended French schools and speaks five languages fluently, including German and English.
With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.
Omicron's rise has heralded another pandemic-tinged Christmas for billions, with Santa's arrival overshadowed by Covid restrictions.
At a time when hospitals and patients are strained due to increasing COVID numbers, threat actors will continue to attack.
Millions of Americans are traveling before Christmas even as national Omicron Covid-19 infections surpass Delta's peak.
Hong Kong university students paid solemn tribute to two campus statues marking Beijing's 1989 suppression of Tiananmen Square protesters.
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Mexico deports 2,300 Hondurans from '2020 Caravan ' | Hi, what are you looking for?
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Published
Mexican migration authorities said they have deported 2,300 Hondurans who illegally crossed over from Guatemala with a caravan heading to the United States.
The `` assisted return '' of the Central Americans took place between January 18 and Monday, according to the interior ministry and the National Migration Institute.
A total of 1,064 Honduran migrants were deported on National Guard planes and charter aircraft, they said in a statement.
Another 1,239 were repatriated by land from the southern states of Chiapas and Tabasco, the institute said.
The Central Americans entered Mexico last week from Guatemala with the so-called `` 2020 Caravan '' with the intention of heading to the United States.
Mexican authorities said the deportations were carried out `` in compliance with the migration law and with full respect for human rights. ''
Members of the National Guard last Thursday used tear gas as they arrested some 800 members of the caravan along the southern border with Guatemala, causing panic among the migrants who included women and children.
Thousands of Central Americans have crossed Mexico toward the United States in caravans in recent years, fleeing chronic poverty and brutal gang violence in El Salvador, Guatemala and Honduras.
Mexico faces pressure to keep the migrants from crossing its northern border from US President Donald Trump, who last year threatened to impose steep tariffs if the country did not do more to stop a surge of undocumented Central Americans.
Mexican President Andres Manuel Lopez Obrador deployed some 26,000 troops to the country's borders in response.
Mexican migration authorities said they have deported 2,300 Hondurans who illegally crossed over from Guatemala with a caravan heading to the United States.
The “ assisted return ” of the Central Americans took place between January 18 and Monday, according to the interior ministry and the National Migration Institute.
A total of 1,064 Honduran migrants were deported on National Guard planes and charter aircraft, they said in a statement.
Another 1,239 were repatriated by land from the southern states of Chiapas and Tabasco, the institute said.
The Central Americans entered Mexico last week from Guatemala with the so-called “ 2020 Caravan ” with the intention of heading to the United States.
Mexican authorities said the deportations were carried out “ in compliance with the migration law and with full respect for human rights. ”
Members of the National Guard last Thursday used tear gas as they arrested some 800 members of the caravan along the southern border with Guatemala, causing panic among the migrants who included women and children.
Thousands of Central Americans have crossed Mexico toward the United States in caravans in recent years, fleeing chronic poverty and brutal gang violence in El Salvador, Guatemala and Honduras.
Mexico faces pressure to keep the migrants from crossing its northern border from US President Donald Trump, who last year threatened to impose steep tariffs if the country did not do more to stop a surge of undocumented Central Americans.
Mexican President Andres Manuel Lopez Obrador deployed some 26,000 troops to the country’ s borders in response.
With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.
Canadian Foreign Minister Melanie Joly will visit Kyiv next week to reaffirm support for Ukrainian sovereignty.
Dozens of freight cars are broken into every day on LA's railways by thieves who take advantage of the trains ' stops to loot packages...
Thousands of Trump supporters gathered in Arizona on Saturday to hear a raft of speakers claim the 2020 US election was stolen.
About 200 million Americans now likely have access to a COVID-19 digital vaccine card.
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Oil turns positive after five-day rout as OPEC might act | Oil futures edged up on Tuesday after falling for five days, gaining support from a rebound in Wall Street stocks and talk that OPEC and its allies might tighten the market amid fears the coronavirus could weigh on oil demand.
U.S. stocks rose as gains in technology and financial shares helped major indexes recover from their biggest selloff in about four months on worries over a coronavirus outbreak and its possible impact on global growth.
Brent futures rose 13 cents, or 0.2%, to $ 59.43 a barrel, while U.S. West Texas Intermediate crude gained 34 cents, or 0.6%, to settle at $ 53.48 per barrel.
`` WTI is correlating to U.S. equities, which are stronger, '' said Bob Yawger, director of energy futures at Mizuho in New York.
On Monday, both benchmarks dropped to their lowest since October with Brent down as much as 18% and WTI falling as much as 21% from highs hit earlier in January due to U.S.-Iran tensions. The contracts are on track for their biggest monthly declines since May.
Those moves come ahead of a report from the American Petroleum Institute ( API) at 4:30 p.m. EST expected to show a 500,000-barrel build in U.S. crude stockpiles last week.
Saudi Arabia, de-facto leader of the Organization of the Petroleum Exporting Countries, has sought to calm market jitters, urging caution against gloomy expectations on the impact of the virus on global oil demand.
OPEC officials have also started weighing options such as extending current oil output cuts until at least June, with the possibility of deeper reductions if oil demand in China is heavily hit by the virus, OPEC sources said.
OPEC+, the producer group that includes allies like Russia, has been reducing oil supply to support prices, agreeing in December to hold back 1.7 million barrels per day ( bpd) of output until the end of March.
Meanwhile, Libyan output has fallen nearly 75% to just below 300,000 bpd amid the most extensive oil blockade for years. The OPEC member is exempt from cutting output.
President Xi Jinping said China was sure of defeating a `` devil '' coronavirus that has killed 106 people and spread across the world, rattling financial markets.
Still, the virus has been detected in more than a dozen countries, and the United States and other countries warned against travel to China. | business |
Jewish settlers praise annexation, reject Palestinian state | Hi, what are you looking for?
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Published
In Maale Adumim, one of the largest Jewish settlements in the occupied West Bank, residents watched the unveiling of Donald Trump's peace plan with keen interest.
`` I was born here, and since I was little we have been hearing about annexation by Israel, '' said Guy Yifrach, the 37-year old mayor of this community west of Jerusalem.
Trump's proposals, which were swiftly rejected by the Palestinians, gave Israel the green light to assert its sovereignty over various parts of the West Bank, which Israel has occupied since 1967.
Israeli Prime Minister Benjamin Netanyahu, who was standing next to Trump when the plan was released, will ask his cabinet to approve annexations on Sunday, multiple Israeli officials told AFP.
They did not specify which areas Netanyahu would target first, but Yifrach made clear he hoped Maale Adumim would be on the list.
`` We hope it will finally happen, '' said Yifrach. `` We have been waiting for years. ''
More than 400,000 Israelis live in West Bank settlements, including 42,000 in Maale Adumim, which residents consider a suburb of Jerusalem.
Shortly after Trump's plan was announced, the US Ambassador to Israel David Friedman said Israel `` does not have to wait at all '' before moving forward with annexation.
That may have been welcome news to Yifrach, but not all of Trump's proposals were so warmly received.
The US president also called for the creation of an independent `` contiguous '' Palestinian state.
`` I am against the creation of a Palestinian state, '' in the heart of Israel, said Yifrach, voicing fear about insecurity in his community.
That sentiment was echoed by other settlers.
The head of the Yesha Council, an umbrella group that represents settlers living in the West Bank, had earlier voiced concern about Trump's plan.
`` We can't agree to a plan that includes forming a Palestinian state, which will constitute a threat to Israel and a great danger to the future, '' said council head David Elhayani.
In an interview with army radio before Trump's plan was announced, Israeli Transport Minister Bezalel Smotrich of the far-right Yemina union stressed that his party `` won't under any conditions agree to recognition, whether explicit or implicit, of a Palestinian state ''.
In Maale Adumim, one of the largest Jewish settlements in the occupied West Bank, residents watched the unveiling of Donald Trump’ s peace plan with keen interest.
“ I was born here, and since I was little we have been hearing about annexation by Israel, ” said Guy Yifrach, the 37-year old mayor of this community west of Jerusalem.
Trump’ s proposals, which were swiftly rejected by the Palestinians, gave Israel the green light to assert its sovereignty over various parts of the West Bank, which Israel has occupied since 1967.
Israeli Prime Minister Benjamin Netanyahu, who was standing next to Trump when the plan was released, will ask his cabinet to approve annexations on Sunday, multiple Israeli officials told AFP.
They did not specify which areas Netanyahu would target first, but Yifrach made clear he hoped Maale Adumim would be on the list.
“ We hope it will finally happen, ” said Yifrach. “ We have been waiting for years. ”
More than 400,000 Israelis live in West Bank settlements, including 42,000 in Maale Adumim, which residents consider a suburb of Jerusalem.
Shortly after Trump’ s plan was announced, the US Ambassador to Israel David Friedman said Israel “ does not have to wait at all ” before moving forward with annexation.
That may have been welcome news to Yifrach, but not all of Trump’ s proposals were so warmly received.
The US president also called for the creation of an independent “ contiguous ” Palestinian state.
“ I am against the creation of a Palestinian state, ” in the heart of Israel, said Yifrach, voicing fear about insecurity in his community.
That sentiment was echoed by other settlers.
The head of the Yesha Council, an umbrella group that represents settlers living in the West Bank, had earlier voiced concern about Trump’ s plan.
“ We can’ t agree to a plan that includes forming a Palestinian state, which will constitute a threat to Israel and a great danger to the future, ” said council head David Elhayani.
In an interview with army radio before Trump’ s plan was announced, Israeli Transport Minister Bezalel Smotrich of the far-right Yemina union stressed that his party “ won’ t under any conditions agree to recognition, whether explicit or implicit, of a Palestinian state ”.
With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.
The Prime Minister of Spain, Pedro Sánchez, during the telematic press conference called after the meeting of the Council of Ministers on March 17,...
An Irishman who refused to wear a Covid mask during a flight from Dublin to New York faces up to 20 years in prison.
Geneva, the neutral turf that was once host to so much Cold War bargaining, is again welcoming Russian and US officials.
Rio de Janeiro and Sao Paulo are postponing the glittering parades that are the highlight of carnival festivities due to a surge in the...
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Emerging markets flash buy signal as coronavirus weighs on stocks | Call it an emerging opportunity.
Now may be the time for investors to start buying certain emerging market stocks as the broader market declines on widespread worries around China's worsening coronavirus outbreak, said Ari Wald, senior technical analyst at Oppenheimer.
The iShares MSCI Emerging Markets ETF ( EEM) fell by more than 3% on Monday as fears of the spreading virus gripped the major averages. Thirty-four percent of the ETF's weighting is in Chinese stocks, with Alibaba being its largest holding.
`` We see this weakness as an opportunity, '' Wald said Monday on CNBC's `` Trading Nation, '' adding that the weakness has not been meaningfully `` damaging. '' `` The turnaround is still in play and we accordingly see this as a tactical opportunity. ''
Wald flagged a more niche opportunity in the emerging market landscape: Invesco's China Technology ETF ( CQQQ).
`` [ This ] ETF... was really hard-hit in 2018. It spent 2019 building a base, it broke out in December of last year, and now it's correcting back into its breakout point. Very often, prior resistance becomes support. That's $ 50 on CQQQ, '' Wald said.
The Oppenheimer analyst also doubled down on his firm's recommendation of Alibaba, which he called `` one of the stronger stocks within that space. ''
But that wasn't all that was telling Wald now was a good time to buy.
`` Our VIX signal went off this morning, '' he said, referring to the Cboe Volatility Index, also known as the market's fear gauge, which tracks investors ' expectations of volatility. The VIX ended trading at 18.23 on Monday.
`` That VIX level at 17 is actually a pretty high level given the backdrop that we 've been in, '' Wald said of Monday's action. `` What we like to do is look at VIX versus where it's been over the last three months. This was a 50% spike in the VIX off that three-month low. Typically, when you get those spikes of 50% and the S & P 500 is still above its 200-day moving average, as is the case, when you get a spike in an uptrend, you tend to have above-average returns six months out. ''
In short, `` this is the signal. This is a near-term opportunity to buy what we see as an intact uptrend for the S & P 500, '' the technical analyst said.
Quint Tatro, chief investment officer at Joule Financial, wasn't so sure.
`` We're getting a little bit of a pop today, but I 'd actually be looking for a VIX spike to 25 to 30, real panic setting in, which we haven't seen in a very long time, and then I would be a buyer of the emerging markets on that panic, '' Tatro said in the same `` Trading Nation '' interview.
As one of Joule Financial's `` higher-conviction plays, '' emerging markets were flashing an opportunity, Tatro acknowledged, but he advised waiting for some more weakness before jumping in.
`` We do feel that it is an opportunity. I 'm not so sure if that opportunity is today, on today's sell-off, '' he said Monday.
`` [ For ] the United States market, this is a little bit of a wake-up call, and I think that folks will start to look at the fundamentals a little bit better. So, we're actually looking for some further weakness and a little bit more fear in the play, '' Tatro said. `` But when that fear arrives, and I think folks can look at the VIX and see spikes there — we're having one today, but we think it can continue — I think that the emerging markets is a very good place to start investing in for the next several years. Again, we do think that it is a very undervalued group and it will benefit from … more certainty with China, the reflation trade and also manufacturing booming in other parts, not just China, as well. ''
Disclosure: Quint Tatro and Joule Financial are long shares of EEM.
Disclaimer | business |
Lunar New Year Visitors to Gambling Hub Macau Screened for Coronavirus | By Katherine Sayre
Seven people in the world's gambling capital of Macau had been infected with the deadly new coronavirus by Tuesday, casting uncertainty over what is usually the busy two weeks of the Lunar New Year season for casinos in the region.
The Macau government said Monday it planned to contact about 1,100 tourists visiting from Hubei province, where the outbreak is believed to have originated, for testing. Travelers arriving in Macau who had been in Hubei in the last two weeks must have medical documentation proving they aren't infected, or they will be denied entry, the government said.
Global fears over coronavirus in Macau and mainland China have sent U.S.-based casino operators ' stock down along with other stocks.
Las Vegas Sands Corp., Wynn Resorts Ltd. and MGM Resorts International have huge resorts in the region, which generate up to 70% of revenue for the companies. Between Jan. 17 and Tuesday, stocks were down 10% for MGM Resorts, 13% for Las Vegas Sands and 18% for Wynn Resorts.
The full impact on casinos depends on how long it takes world health leaders to get the disease under control, according to analysts. The Macau government said last week that closing the casinos temporarily hasn't been ruled out.
`` News is likely to be bleaker before it turns brighter, and stocks will remain under pressure and likely volatile, '' Vitaly Umansky, senior research analyst at Sanford C Bernstein in Hong Kong, in a note last week.
The Lunar New Year season began Saturday. About seven million people flocked to Macau in January and February last year, an increase of 20% from 2018, thanks to the opening of a 34-mile sea bridge connecting Hong Kong, Macau and China's Guangdong province.
Visitors from mainland China account for more than 70% of the people who travel to Macau, the only place in China where casinos are allowed, while another 19% visit from Hong Kong.
By Friday, no widespread trip cancellations in Macau were apparent, according to analysts, who added that tourists are likely to postpone their trips to Macau rather than cancel altogether, creating some pent-up demand later. The Macau government canceled its new year parade, which had been scheduled for Monday, and other public events. Casino dealers and other staff have been ordered to wear masks.
Analysts said the coronavirus can be compared with previous disease outbreaks such as SARS in 2002 that were limited events, but in this case, information about the disease and the response is more widely available.
The outbreak has worsened quicker than expected, creating a challenge for Macau in the coming few weeks, but the overall impact is likely to be temporary, said John DeCree, Union Gaming's global head of institutional research. `` We think there will be a compelling buying opportunity for the sector when things are under control, '' Mr. DeCree said.
MGM Resorts, Wynn Resorts and Las Vegas Sands officials said the companies are working with government officials and taking other steps to protect staff and guests. Las Vegas Sands reports fourth-quarter earnings Wednesday. MGM Resorts reports fourth-quarter earnings Feb. 12. Wynn Resorts ' release hasn't been scheduled.
In Las Vegas, this year's expectations for visitors from Asia, particularly wealthy high-roller tourists, were already low, said Barry Jonas, gaming analyst for SunTrust Robinson Humphrey Inc. in a note Monday.
Increased business from Las Vegas conventions, the city's plans to host the NFL draft in April and the opening of the Las Vegas Raiders stadium should offset any weakness, Mr. Jonas said.
The number of confirmed U.S. cases of the new coronavirus has risen to five, but no cases had been reported in Nevada by Monday.
Write to Katherine Sayre at katherine.sayre @ wsj.com
| business |
Chinese woman Sri Lanka's first confirmed case of coronavirus | COLOMBO – Sri Lanka has confirmed the first case of coronavirus in the country, a senior Sri Lankan health official said on Monday.
“ A Chinese lady, who is in her 40s, arrived on the 19th as a tourist and fell ill on the 25th and was confirmed as having the coronavirus following a test on Monday, ” Sudath Samaraweera, the chief epidemiologist with Sri Lanka’ s Ministry of Health, told Reuters, adding that this marks the first confirmed case in the island nation.
The new flu-like virus, first reported in the Chinese city of Wuhan, has killed more than 80 people and infected more than 2,700 others. Although most cases identified remain in China, more than a dozen other countries have so far reported cases. | tech |
U.S. Navy sails warship near disputed islands in South China Sea for first time in 2020 | The U.S. Navy said Tuesday that it had sailed a warship near the contested Spratly Islands in the South China Sea — home to fortified islands built by China — on Saturday, in what was believed to be its first freedom of navigation operation ( FONOP) of 2020.
A spokesman for the U.S. Navy’ s 7th Fleet told The Japan Times that the USS Montgomery, an advanced littoral combat ship, had “ asserted navigational rights and freedoms in the Spratly Islands, consistent with international law. ”
The latest FONOP “ upheld the rights, freedoms and lawful uses of the sea, ” 7th Fleet spokesman Lt. Joe Keiley said, adding that the Montgomery had “ challenged the restrictions on innocent passage imposed by China, Vietnam, and Taiwan. ”
The Montgomery passed near the Chinese-held Fiery Cross Reef, home to a 3,000-meter military-grade runway, and Johnson Reef, Pentagon photos showed.
The spokesman said that the U.S. “ upholds freedom of navigation as a principle ” and that the “ missions are conducted peacefully and without bias for or against any particular country. ” RELATED STORIES U.S. sends warships near South China Sea isles after Beijing demands it'stop flexing muscles' China's first domestically built aircraft carrier enters service 'at doorstep of South China Sea '
The spokesman said that the U.S. “ upholds freedom of navigation as a principle ” and that the “ missions are conducted peacefully and without bias for or against any particular country. ”
RELATED STORIES U.S. sends warships near South China Sea isles after Beijing demands it'stop flexing muscles' China's first domestically built aircraft carrier enters service 'at doorstep of South China Sea '
“ Freedom of navigation operations in the South China Sea are a part of daily operations of U.S. military forces throughout the region, ” he added.
China’ s military said later Tuesday that it’ s air and naval forces had “ expelled a U.S. warship ” that sailed near the Islands.
A spokesman for the Chinese military’ s Southern Theater Command said the U.S. warship’ s “ intentional provocation during Spring Festival was done with ulterior motives, and is a flagrant attempt at navigation hegemony, ” the state-run Global Times newspaper reported the same day.
The hawkish tabloid reported that “ two loaded fighter bombers of a Navy aviation brigade headed to the target area and conducted alert patrol missions on Saturday morning ” in response to the Montgomery’ s mission.
Beijing claims much of the South China Sea, though the Philippines, Vietnam, Malaysia, Taiwan and Brunei have overlapping claims in the waters where the Chinese, U.S., Japanese and some Southeast Asian navies routinely operate.
Innocent passage, a key tenet of the U.N. Convention on the Law of the Sea ( UNCLOS), requires that vessels move directly through the territorial sea and refrain from any activity not necessary for their continuous and expeditious passage. Providing notice or obtaining permission prior to transiting under innocent passage is not required.
The latest FONOP came amid rising tensions between the two powers in the strategic waterway and as China grappled with the deadly coronavirus outbreak, the death toll of which topped 100 by Tuesday evening.
The U.S. Navy has angered Beijing by regularly conducting FONOPs close to some of the islands China occupies in the waterway, including its man-made islets, asserting that freedom of access is crucial to international waterways.
Washington has lambasted Beijing for its moves in the South China Sea, including the construction of the man-made islands — such as those in the Spratly chain and further north in the Paracels — some of which are home to military-grade airfields and advanced weaponry.
The U.S. fears the outposts could be used to restrict free movement in the waterway, which includes vital sea lanes through which about $ 3 trillion in global trade passes each year.
Beijing says it has deployed the advanced weaponry to the islets for defensive purposes, but some experts say this is part of a concerted bid to cement de facto control of the waters.
In a defense white paper released last October, China highlighted a new emphasis on “ combat readiness and military training in real combat conditions ” and new war-fighting capabilities in the Western Pacific and South China Sea.
Beijing, the white paper said, “ has organized naval parades in the South China Sea ” and “ conducted a series of live force-on-force exercises ” while its air force “ has conducted combat patrols in the South China Sea and security patrols in the East China Sea, and operated in the West Pacific. ”
According to some experts, the South China Sea could turn into a cauldron in 2020.
This year “ could see a mellowed-down China which is preoccupied with festering domestic problems ranging from economic slowdown as a result of the trade war with the United States to turmoil in Hong Kong, ” Collin Koh, a research fellow and maritime security expert at the S. Rajaratnam School of International Studies in Singapore, wrote on the East Asia Forum website. “ But Beijing will not completely foreswear the use of coercion.
“ This may create concerns about a possible military confrontation between China and the United States, ” he added. | tech |
China coronavirus: public health measures will hurt economy in the first quarter, analysts say | China’ s already weakening economy is set to take another hit with businesses across the country remaining shut for an extended public holiday and tourism grinding to a halt, as authorities struggle to contain the pneumonia-like coronavirus that has spread across the nation. | business |
Apple holiday earnings hit record highs on strong iPhone sales: Live blog recap | Apple Inc. delivered record quarterly earnings and revenue Tuesday that beat expectations and sent the stock higher in extended trading.
The results were headlined by blockbuster quarter of iPhone sales and the first-ever $ 10 billion quarter for Apple’ s
AAPL,
+0.82%
wearables, home, and accessories category, which includes the Apple Watch and AirPods, both strong holiday sellers.
See more:
Apple stock gains after record earnings, upbeat forecast
The company also delivered an upbeat view of the current quarter while indicating that the coronavirus outbreak gives the company less visibility than it would normally have. Apple has alternate supply sources for its manufacturers located in Wuhan but will be monitoring what happens with factories outside the city.
Executives also provided more information about how the company will account for free trials of its new Apple TV+ streaming service.
MarketWatch tech editor Jeremy C. Owens and reporter Emily Bary live-blogged Apple’ s results and the subsequent conference call. The blog can be found below. | business |
Apple suppliers caution coronavirus could impact planned production hike: report | Apple Inc.
AAPL,
+0.82%
was planning to boost first-half production by 10% from a year ago but has received warning from some of its suppliers that the coronavirus outbreak could complicate those plans,
according to a report from the Nikkei Asian Review
on Tuesday. There is concern about manufacturing centers in the Henan, Guangdong, and Shanghai provinces as all have seen dozens of confirmed coronavirus cases, the report said. Apple had been asking suppliers to make up to 80 million iPhones in the first half of the year, mainly consisting of the new iPhone 11 family but also including some of a yet-to-be-release low-price model that some are expecting could come in March, according to the report. Apple didn't immediately respond to a MarketWatch request for comment. Its stock is up 1.1% in premarket trading Tuesday after dropping 2.9% in Monday's session
amid coronavirus fears
. Apple is
due to report earnings after Tuesday's closing bell
. Shares have gained 98% over the past 12 months, as the Dow Jones Industrial Average
DJIA,
-1.29%
has risen 16%. | business |
Apple supply chain braces for disruption from coronavirus outbreak | Apple’ s China-centric manufacturing base is at risk of disruption after the Lunar New Year holiday, as the iPhone maker’ s partners confront the coronavirus outbreak that has gripped the country and caused more than 100 deaths. | business |
Trapped in Wuhan: the Indonesian students at centre of coronavirus lockdown | Eva Taibe is scared to leave her home in Wuhan, the Chinese city at the centre of a coronavirus outbreak that has already killed more than 100 people and infected thousands. | business |
Debunking the myths around China’ s deadly coronavirus outbreak | China’ s health authorities are racing against the clock to contain the coronavirus outbreak that has spread worldwide since breaking out in the central city of Wuhan more than a month ago. At the same time, officials are battling a torrent of rumours and unverified news about the outbreak. Here are some common questions: | business |
Why the coronavirus threat, new trade barriers and massive global debt will not dampen stock markets | Now that | business |
Dow brings 5-session skid to a halt as stocks attempt to shake off coronavirus anxieties | U.S. stock indexes on Tuesday staged a solid comeback after the worst daily decline for stocks in months, following a downturn that had been at least partly sparked by concerns about the spread of an Asian influenza. Although the so-called Wuhan virus, named for the city in China where it is said to have originated, continues to spread in the second-largest economy in the world, claiming at least 106 lives and infecting more than 4,500 people, investors deemed Monday's equity slump to be overdone and bought beaten-down shares. The Dow Jones Industrial Average
DJIA,
+0.01%
gained 186 points, or 0.7%, to 28,722, halting a 5-session slide. The S & P 500 index
SPX,
+0.01%
advanced 1% to 3,276, while the Nasdaq Composite Index
COMP,
+0.05%
rose 1.4% to close at 9,269, both indexes ended a two-session slide. Uneasiness about the spread of the the illness that has drawn comparisons with SARS, severe acute respiratory syndrome, and the possible impact to China's economy, comes as the Federal Reserve on Wednesday is slated to provide an update on monetary policy, with key interest rates at 1.50% -1.75% range. In company news, Apple Inc.
AAPL,
-0.57%
is among the S & P 500 and Dow components set to report after Tuesday's close. Apple suppliers have cautioned that the coronavirus could impact the iPhone maker's output. Market participants also have noted that an accurate recession indicator, the differential, or spread, between the three-year Treasury bill
TMUBMUSD03M,
0.212%
and the 10-year Treasury note
TMUBMUSD10Y,
1.803%
,
briefly inverted early Tuesday. | business |
British stocks inch higher after previous day’ s hammering | U.K. stocks inched higher on Tuesday as traders waited for more news on the deadly coronavirus outbreak before pushing in either direction.
After being hammered by 2.3% on Monday, the FTSE 100
UKX,
-1.22%
rose 0.17% to 7424.65.
The death toll in China reached at least 106 people, authorities said on Tuesday, with more than 4,500 outbreaks in the world’ s second-largest economy.
The news has hit companies that are sensitive to Chinese demand. Miners including Antofagasta
ANTO,
-2.26%
had a second day of losses.
Other decliners included Burberry Group
BRBY,
-1.45%
,
which fell by more than 3% and has dropped 17% over the past week, and Diageo
DGE,
-0.95%
,
which dropped 2.5%. But there were gainers as well, including Middle East hospital operator NMC Health
UK: NMC
,
which gained 2.1%, and commodity trader Glencore
GLEN,
-2.42%
,
which rose 1.7%.
Elsewhere, Virgin Money UK
VMUK,
-2.38%
shares rose 3% as the lender said there was improved sentiment in December, though it said the U.K. market is facing competitive pressure because of Brexit uncertainty.
A.G. Barr shares
BAG,
-0.30%
jumped 13% as the maker of the Irn-Bru beverage said adjusted pretax profits will be at the top end of expectations. | business |
Wife of Canada's first coronavirus patient confirmed as country's second case | TORONTO – The wife of Canada’ s first novel coronavirus patient has tested positive for the virus at a public health laboratory, the province of Ontario’ s health ministry said in a release on Monday.
The patient has been in self-isolation and is being monitored, the ministry said.
“ Given the fact that she has been in self-isolation, the risk to Ontarians remains low, ” said Ontario Chief Medical Officer of Health David Williams in the release.
“ From what we know, Wuhan novel coronavirus transmits through close contact — and there’ s no closer contact than a husband and wife, ” said Ontario’ s health minister, Christine Elliott, in a tweet.
The first confirmed Canadian patient, a man in his 50s, had mild symptoms while on a flight to Toronto from Guangzhou, China, Canada’ s chief health officer Theresa Tam told reporters on Sunday.
The man arrived in Toronto on Jan. 22 from Wuhan, the epicenter of the virus outbreak, and is currently being treated in isolation in a public hospital, Ontario health officials said on Saturday. | tech |
Europe markets: Investors monitor coronavirus developments | European stocks closed higher on Tuesday as investors monitored developments relating to the Chinese coronavirus, after global markets plummeted on Monday.
The pan-European Stoxx 600 was provisionally 0.8% higher at the closing bell, with most sectors and all major bourses in positive territory. Telecoms stocks added around 1.6% to lead gains while tech stocks dipped below the flatline.
The snap back came after the Stoxx 600 dropped 2.3% on Monday, with around 180 billion euros of market value wiped out, but sentiment remains tied to news out of China.
As of Tuesday morning, Chinese health authorities have confirmed that 106 people have died with 4,515 now infected, with cases reported in multiple countries around the world.
Stocks on Wall Street were also trading higher on Tuesday, following Wall Street's biggest sell-off since October in the previous session.
Back in Europe, Brexit is back in focus with the U.K. set to leave the European Union on Friday, beginning a transitional period in which both sides work toward the ambitious target of agreeing a new free trade agreement this year.
EU chief negotiator Michel Barnier warned the U.K. on Monday that the bloc will `` never, never, never '' compromise on the single market, accusing Britain of underestimating the cost of leaving.
Meanwhile, the U.K. granted Chinese telecoms giant limited access to its 5G network on Tuesday, defying pressure from the U.S. to shut the company out over alleged national security concerns.
In corporate news, Renault's board is set to meet Tuesday to approve the appointment for former Seat boss Luca de Meo as its next CEO, according to Le Figaro newspaper.
Earnings are in focus, with Europe's most valuable technology company SAP on Tuesday raising its revenue and profit outlook and reporting an increase in fourth-quarter net profit. Market reaction was muted, however, with SAP shares slipping 2%.
Shares of antivirus developer Avast lost 9% by the end of the session, sending the company to the bottom of the European benchmark following reports that the company had sold user data.
At the top of the European benchmark, Swedbank climbed 8% after reporting better-than-expected fourth-quarter profits before the bell, while French corporate services provider Edenred added 3.5% after brokerage ODDO upgraded the stock to `` buy, '' according to Reuters. | business |
Can China ETFs Survive the Coronavirus Onslaught? | The world’ s second-largest economy is grappling with the coronavirus outbreak that has claimed at least 80 lives in China along with more than 2,700 confirmed registered cases. In fact, more than 30,000 people are under observation in China. Resultantly, China’ s equity market witnessed huge sell-offs before the markets closed for a week-long Lunar New Year holiday. Marking its worst close to a Lunar Year in its three-decade history, the Shanghai Composite Index witnessed a 2.8% decline on Jan 23. Moreover, the yuan declined 0.4%. Foreign investors also joined the sell-off spree, dumping shares valuing a record $ 1.7 billion via links with Hong Kong ( read: ETF Strategies to Combat Coronavirus Outbreak).
Going on, there was a 28.8% year-over-year decline in travels on the first day of the Lunar New Year. Understanding the severity of the situation, China has extended the Lunar New Year holiday until Feb 2.
Take on China’ s Current Economic Status
The Chinese administration has been grappling with challenges like the trade war with the United States, rising debt levels, spread of swine flu and Hong Kong protests. In spite of all, the signing of the phase-one trade deal with the United States this month had instilled some confidence in investors regarding China’ s economy. The deal effectuated a suspension in new tariffs on $ 160 billion of China-made consumer electronics and toys as well as a reduction by half in the existing U.S. tariffs on $ 120 billion of other goods to 7.5% ( read: What Lies in China ETFs ' Fortunes in the Year of Rat?).
In return, China has vowed to purchase additional $ 200 billion of American goods over the next two years — $ 52.4 billion worth of energy, $ 32 billion in agriculture, $ 37.9 billion in services and $ 77.7 billion of manufactured products.
Meanwhile, expectations of improvement in the global economy and demand were raising hopes for China’ s factories in 2020. However, it is being believed that the coronavirus eruption will not only impact the manufacturing sector in China but will also not spare the non-manufacturing sector.
ETFs in Focus
Against this backdrop, investors can keep a tab on a few China ETFs like iShares China Large-Cap ETF FXI, iShares MSCI China ETF MCHI, Xtrackers Harvest CSI 300 China A-Shares ETF ASHR and Invesco Golden Dragon China ETF PGJ.
FXI
This fund seeks long-term growth by tracking the investment returns, before fees and expenses, of the FTSE China 50 Index. It comprises 50 holdings. The fund’ s AUM is $ 4.70 billion and expense ratio is 0.74%.
MCHI
This fund tracks the MSCI China Index. It comprises 596 holdings. The fund’ s AUM is $ 4.77 billion and expense ratio is 0.59% ( read: 10 ETFs for 2020).
ASHR
This fund tracks the CSI 300 Index. It comprises 302 holdings. The fund’ s AUM is $ 2.35 billion and expense ratio is 0.65% ( read: ETFs to Gain on China's Upbeat Exports Data for December).
PGJ
This fund follows the NASDAQ Golden Dragon China Index, which offers exposure to the U.S. exchange-listed companies that are headquartered or incorporated in the People’ s Republic of China. It holds a basket of 66 stocks. The product has AUM of $ 197.1 million and charges 70 bps in annual fees.
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Click to get this free report Xtrackers Harvest CSI 300 China A-Shares ETF ( ASHR): ETF Research Reports Invesco Golden Dragon China ETF ( PGJ): ETF Research Reports iShares MSCI China ETF ( MCHI): ETF Research Reports iShares China Large-Cap ETF ( FXI): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report | business |
Charting near-term technical damage, S & P 500 ventures under key support | Technically speaking, the major U.S. benchmarks have pulled in sharply from recent record highs, pressured amid the most aggressive selling pressure since October.
Against this backdrop,
near-term
damage has been inflicted to the S & P 500’ s backdrop, though its more important intermediate-term bullish bias is intact.
Before detailing the U.S. markets’ wider view, the S & P 500’ s
US: SPX
hourly chart highlights the past two weeks.
As illustrated, the S & P has pulled in sharply from record highs.
Tactically, the breakout point ( 3,258) pivots to resistance, a level matching Monday’ s session high ( 3,258.8).
This is followed by the 20-day moving average, currently 3,275, and resistance matching the former range bottom ( 3,280). A retest of this area from underneath is underway early Tuesday.
Meanwhile, the Dow Jones Industrial Average
US: DJIA
has extended a pullback from record highs.
Consider that Monday’ s close ( 28,535) registered just three points under the 2019 close ( 28,538), briefly placing the index in negative year-to-date territory.
From current levels, the 2019 peak ( 28,701) is followed by the Dow’ s former breakout point ( 28,872), an area also detailed on the daily chart.
Against this backdrop, the Nasdaq Composite
US: COMP
has also plunged from record highs, though this is the strongest major benchmark.
Consider that Monday’ s session low ( 9,088) closely matched its breakout point ( 9,093), a level
detailed repeatedly
as the Nasdaq’ s first notable floor. This area is also illustrated on the daily chart below.
Widening the view to six months adds perspective.
On this wider view, the Nasdaq formed a bearish key reversal to conclude last week. Recall that the session open registered as a record high, capping a single-day downdraft encompassing the prior session’ s range. ( In this case, the Nasdaq’ s key reversal engulfed the range of the prior
five
sessions.)
The index subsequently gapped under its 20-day moving average, currently 9,204, notching just its second close lower since October. As always, the 20-day average is a widely-tracked near-term trending indicator.
Delving deeper, the Nasdaq has maintained its first notable floor at the breakout point ( 9,093), preserving a bullish intermediate-term bias.
Looking elsewhere, the Dow Jones Industrial Average has pulled in more aggressively from record highs.
In the process, the index has violated its breakout point ( 28,872), an area closely matching the 20-day moving average. A swift reversal atop this area would neutralize the late-month downdraft.
Delving deeper, the former range bottom ( 28,376) roughly matches the
50-day
moving average, currently 28,396. An eventual violation of this area would raise an
intermediate-term
caution flag.
Meanwhile, the S & P 500 formed a bearish engulfing pattern to conclude last week. The session open and close encompassed, or engulfed, those of the prior session, raising the flag to a potential trend reversal.
The S & P subsequently gapped under its 20-day moving average, currently 3,275, and the breakout point ( 3,258) to start this week.
This marks the S & P’ s second close under the 20-day moving average since October. ( See the early-December whipsaw, and subsequent bullish reversal. A comparable swift recovery would neutralize the prevailing downdraft.)
The bigger picture
As detailed above, the major U.S. benchmarks have reversed sharply from recent record highs, pressured amid the most aggressive selling pressure since October.
In the process, notable damage has been inflicted for the first time since December, likely raising the flag to a long overdue consolidation phase — an extended chopping around period, if not a deeper pullback.
Moving to the small-caps, the iShares Russell 2000 ETF has placed distance under its breakout point ( 167.12).
Also consider that Monday’ s close registered fractionally under the 50-day moving average — a widely-tracked intermediate-term trending indicator — for the first time since October.
The small-cap benchmark has reclaimed its 50-day early Tuesday, though the next several sessions will likely add color.
Similarly, the SPDR S & P MidCap 400 ETF has violated its breakout point ( 377.60), pressured amid increased volume.
Here again, Monday’ s close registered fractionally under the 50-day moving average, currently 371.65, raising a technical question mark.
Tactically, the pending retest of resistance ( 377.60) from underneath should be a useful bull-bear gauge.
Looking elsewhere, the SPDR Trust S & P 500 has pulled in from record highs amid increased volume.
Tactically, familiar inflection points match the 20-day moving average, currently 326.66, and the breakout point — the 324.90-to-325.20 area.
The SPY’ s trendline closely tracks the 20-day moving average. A swift reversal atop the trendline would neutralize the late-month downdraft.
Placing a finer point on the S & P 500, its aggressive downdraft raises a technical question mark.
To start, the S & P has registered a lone close under its breakout point ( 3,258) a level defining its first notable support. Monday’ s session
high
( 3,258.8) matched resistance.
From current levels, the former range bottom ( 3,280) roughly matches the 20-day moving average, illustrated below, currently 3,275. A sustained break atop these areas would neutralize the late-month downdraft.
Conversely, more important support rests at 3,215, a level matching the December gap ( 3,216), the January low ( 3,214.6) and the S & P’ s former projected target ( 3,215).
The 50-day moving average, currently 3,202, is rising toward support.
So collectively, an eventual violation of the 3,200-to-3,215 area would mark a material “ lower low ” — combined with a violation of the 50-day moving average — raising an
intermediate-term
caution flag.
Beyond technical levels, consider that Monday’ s internals pressed bearish extremes: NYSE declining volume surpassed advancing volume by a greater than 7-to-1 margin.
As always, in a textbook world, two 9-to-1 down days, across about a seven-session window, would reliably signal a bearish trend shift. So the clock is ticking on a potential second shoe to drop over about the next week. ( As reference, the early-2019 market rally originated from two 9-to-1
up
days across a precisely seven-session window.)
All told, the late-month downturn has inflicted damage, for the first time since December, and a near-term consolidation phase is underway. The S & P 500’ s more important intermediate-term bias remains bullish, based on today’ s backdrop, though the next several sessions will likely add color.
Tuesday’ s Watch List
The charts below detail names that are technically well positioned. These are radar screen names — sectors or stocks poised to move in the near term. For the original comments on the stocks below, see
The Technical Indicator Library.
Drilling down further, the United States Oil Fund
US: USO
has extended its January technical breakdown. The fund tracks the price of West Texas Intermediate ( WTI) light, sweet crude oil.
Prices have been pressured amid reduced travel expectations, due to the coronavirus, as well as concerns over China’ s potential economic slowdown.
Technically, the shares have violated the 200-day moving average, plunging amid a sustained volume increase. The downturn builds on the early-January violation of trendline support, and subsequent failed retest from underneath.
Tactically, the 200-day moving average, currently 12.00, closely matches the breakdown point. An eventual close atop this area would place the brakes on bearish momentum. ( Also see the
Jan. 23 review.
)
Meanwhile, the 10-year Treasury note yield
XX: TNX
has reached three-month lows, pressured partly amid a safe-haven trade. As always, Treasury prices and yields are inversely correlated. ( As demand spikes for Treasuries, yields turn lower.)
Technically, the downturn confirms the bearish trend shift signaled to start 2020. Recall the early-month violation of trendline support, and subsequent failed test of the 50-day moving average, currently 1.82, from underneath.
As detailed repeatedly, the 50-day moving average effectively defined the 2019 trend, and it remains a useful bull-bear inflection point.
Slightly more broadly, the 200-day moving average, currently 1.93, is descending toward trendline resistance matching the former range top ( 1.90). The yield’ s backdrop supports a bearish-leaning bias pending a close atop this area. ( Also see the
Jan. 17 review.
)
Combined, lower energy prices and interest rates generally present a broad-market tailwind. Consider that the tandem trend shifts detailed above signaled to start 2020, before the coronavirus surfaced. ( Put differently, the prevailing downturns are not exclusively the product of an exogenous event.)
Looking elsewhere, the SPDR Gold Shares ETF
US: GLD
has tagged six-year highs amid a safe-haven trade.
The prevailing upturn has been fueled by increased volume, and punctuates a January flag-like pattern underpinned by the breakout point ( 145.10).
More broadly, the shares remain well positioned on the 10-year chart, rising from a bullish continuation pattern pinned to the steep mid-2019 rally. ( Recall that the GLD’ s relative strength index ( not illustrated) has recently registered its two best levels on record — the June and January prints — laying the groundwork for potentially material longer-term follow-through.)
Tactically, a sustained posture atop the breakout point supports a firmly-bullish bias. ( Also see the
Jan. 21 review.
)
Finally, the iShares China Large-Cap ETF
US: FXI
has turned firmly lower, pressured amid the coronavirus scare.
The downturn has been fueled by a sustained volume spike, and punctuates a violation of trendline support closely matching the former breakout point ( 43.00).
As a slight positive, the shares have maintained a floor matching the August gap ( 39.76), bottoming this week five cents higher. Tactically, a swift reversal atop the 200-day moving average, currently 41.68, would mark a step toward stabilization. The pending retest from underneath will likely add color.
Still well positioned
The table below includes names recently profiled in The Technical Indicator that remain well positioned. For the original comments, see
The Technical Indicator Library.
Company
Symbol
Date Profiled
Akamai Technologies, Inc.
AKAM
Jan. 24
StoneCo Ltd.
STNE
Jan. 24
Spirit Airlines, Inc.
SAVE
Jan. 23
Himax Technologies, Inc.
HIMX
Jan. 23
International Business Machines
IBM
Jan. 22
Yeti Holdings, Inc.
YETI
Jan. 22
Home Depot, Inc.
HD
Jan. 21
IntercontinentalExchange, Inc.
ICE
Jan. 16
PulteGroup, Inc.
PHM
Jan. 16
Square, Inc.
SQ
Jan. 16
Lattice Semiconductor Corp.
LSCC
Jan. 15
SailPoint Technologies Holdings, Inc.
SAIL
Jan. 15
Dunkin Brands Group, Inc.
DNKN
Jan. 15
SPDR S & P Homebuilders ETF
XHB
Jan. 14
Netflix, Inc.
NFLX
Jan. 14
Pfizer, Inc.
PFE
Jan. 14
Newmont Corp.
NEM
Jan. 13
SBA Communications Corp.
SBAC
Jan. 13
Guess, Inc.
GES
Jan. 13
CME Group, Inc.
CME
Jan. 10
Motorola Solutions, Inc.
MSI
Jan. 10
fMcDonald’ s Corp.
MCD
Jan. 9
TE Connectivity Ltd.
TEL
Jan. 9
Big Lots, Inc.
BIG
Jan. 9
Micron Technology, Inc.
MU
Jan. 8
Zendesk, Inc.
ZEN
Jan. 8
Fortinet, Inc.
FTNT
Jan. 7
Atlassian Corp.
TEAM
Jan. 7
Twilio, Inc.
TWLO
Jan. 7
Coupa Software, Inc.
COUP
Jan. 6
Progressive Corp.
PGR
Jan. 6
SPDR Gold Shares ETF
GLD
Jan. 2
Amazon.com, Inc.
AMZN
Jan. 2
iShares Transportation Average ETF
IYT
Dec. 23
Union Pacific Corp.
UNP
Dec. 23
3M Co.
MMM
Dec. 20
Activision Blizzard, Inc.
ATVI
Dec. 20
Cree, Inc.
CREE
Dec. 19
Ciena Corp.
CIEN
Dec. 18
Air Products and Chemicals, Inc.
APD
Dec. 18
PTC Therapeutics, Inc.
PTCT
Dec. 18
Autodesk, Inc.
ADSK
Dec. 17
iRobot Corp.
IRBT
Dec. 17
American Express Co.
AXP
Dec. 16
Paycom Software, Inc.
PAYC
Dec. 16
FormFactor, Inc.
FORM
Dec. 16
NXP Semiconductors N.V.
NXPI
Dec. 11
Starbucks Corp.
SBUX
Dec. 10
Bristol-Myers Squibb Co.
BMY
Dec. 10
Splunk, Inc.
SPLK
Dec. 9
Macom Technology Solutions Holding, Inc.
MTSI
Dec. 6
Best Buy Co., Inc.
BBY
Dec. 6
Yamana Gold. Inc.
AUY
Dec. 5
VanEck Vectors Gold Miners ETF
GDX
Dec. 3
Pan American Silver Corp.
PAAS
Dec. 3
Nuance Communications, Inc.
NUAN
Dec. 3
Shopify, Inc.
SHOP
Nov. 27
Microchip Technology, Inc.
MCHP
Nov. 27
Lowe’ s Companies, Inc.
LOW
Nov. 27
MKS Instruments, Inc.
MKSI
Nov. 26
UnitedHealth Group, Inc.
UNH
Nov. 25
Stanley Black & Decker, Inc.
SWK
Nov. 25
Baidu, Inc.
BIDU
Nov. 22
Medtronic plc
MDT
Nov. 21
Wheaton Precious Metals Corp.
WPM
Nov. 20
Nevro Corp.
NVRO
Nov. 19
Kroger Co.
KR
Nov. 19
Agios Pharmaceuticals, Inc.
AGIO
Nov. 18
Allstate Corp.
ALL
Nov. 14
Adobe, Inc.
ADBE
Nov. 14
Zebra Technologies Corp.
ZBRA
Nov. 13
AstraZenaca, plc
AZN
Nov. 12
Health Care Select Sector SPDR
XLV
Nov. 11
Advanced Micro Devices, Inc.
AMD
Nov. 7
AudioCodes, Ltd.
AUDC
Nov. 7
Alibaba Holdings Group, Ltd.
BABA
Nov. 5
Alphabet, Inc.
GOOGL
Nov. 4
Teledoc Health, Inc.
TDOC
Nov. 1
Salesforce.com, Inc.
CRM
Oct. 31
Qualcomm, Inc.
QCOM
Oct. 31
Citrix Systems, Inc.
CTXS
Oct. 31
Industrial Select Sector SPDR
XLI
Oct. 31
Invesco QQQ Trust
QQQ
Oct. 30
Centene Corp.
CNC
Oct. 30
Citigroup, Inc.
C
Oct. 28
Generac Holdings, Inc.
GNRC
Oct. 25
RingCentral, Inc.
RNG
Oct. 24
United Technologies Corp.
UTX
Oct. 23
Nvidia Corp.
NVDA
Oct. 22
Tesla, Inc.
TSLA
Oct. 21
Garmin, Ltd.
GRMN
Oct. 18
Facebook, Inc.
FB
Oct. 16
Qorvo, Inc.
QRVO
Oct. 16
Skyworks Solutions, Inc.
SWKS
Oct. 15
Jabil Inc.
JBL
Oct. 15
TJX Companies, Inc.
TJX
Oct. 8
Comtech Telecommunications Corp.
CMTL
Oct. 4
Taiwan Semiconductor Manufacturing Co.
TSM
Sept. 27
RH
RH
Sept. 27
Sony Corp.
SNE
Sept. 26
Nike, Inc.
NKE
Sept. 26
Toll Brothers, Inc.
TOL
Sept.25
Synaptics, Inc.
SYNA
Sept.25
Intel Corp.
INTC
Sept. 18
VanEck Vectors Semiconductor ETF
SMH
Sept. 11
Kansas City Southern
KSU
Sept. 10
CVS Corp.
CVS
Sept. 5
Lam Research Corp.
LRCX
Sept. 3
iShares U.S. Home Construction ETF
ITB
Aug. 27
Apple, Inc.
AAPL
Aug. 21
XPO Logistics, Inc.
XPO
Aug. 20
Itron, Inc.
ITRI
Aug. 19
Cirrus Logic
CRUS
Aug. 16
Builders FirstSource, Inc.
BLDR
Aug. 16
D.R. Horton, Inc.
DHI
July 31
Teradyne, Inc.
TER
July 30
Franco-Nevada Corp.
FNV
July 18
Inphi Corp.
IPHI
July 8
Lululemon Athletica, Inc.
LULU
June 19
Ross Stores, Inc.
ROST
June 14
Consumer Staples Select Sector SPDR
XLP
Mar. 28
iShares U.S. Real Estate ETF
IYR
Mar. 13
Costco Wholesale Corp.
COST
Mar. 6
Microsoft Corp.
MSFT
Feb. 22
Procter & Gamble Co.
PG
Feb. 8
Applied Materials, Inc.
AMAT
Jan. 25
Utilities Select Sector SPDR
XLU
Oct. 25 | business |
Diagnostics: CEO Discusses Novel Coronavirus with CNBC Squawk Box Asia | Interview covered method of transmission, importance of accurate diagnostic tools, and the Company diagnostic announced last week
The CEO of Co-Diagnostics, Inc. ( Nasdaq: CODX), a molecular diagnostics company with a unique, patented platform for the development of diagnostic tests, was interviewed by the host of CNBC Squawk Box Asia last night, to discuss the current outbreak of the novel coronavirus that originated in China before spreading across the world, and the importance and challenges of creating a of high-quality diagnostic for the disease.
“ It is important to be able to develop a test that can find and distinguish between pathogens that are closely related, and can confirm the presence of a novel virus, without false positives and false negatives, ” remarked Dwight Egan, Co-Diagnostics CEO, expounding on comments made in the interview. “ A test should be specific enough that it can differentiate between similar pathogens to aid in proper treatment and tracking outbreaks, but also sensitive enough that infected patients are identified before they can spread the transmission to others.
“ The proprietary Co-Diagnostics development process allows us to react quickly to public health crises, rapidly developing a test with incredible sensitivity and specificity, in days or weeks as opposed to months or years. Less design and development time, coupled with our own patented platform technology, allows Co-Diagnostics to save on development costs as well as licensing fees, all of which enables Co-Diagnostics products to be affordable and more accessible to markets across the world. We look forward to providing updates on our test progress as we prepare to make it available to affected markets. ”
According to the Centers for Disease Control and Prevention, cases of the new coronavirus ( referred to as “ 2019-nCoV ”) have been confirmed in 16 countries since the virus was first identified in China on January 7, 2020, including 5 positive infections in the US and suspected cases in 26 states. Yesterday, the CDC recommended all nonessential travel to the country of China be avoided as the number of deaths has risen to 106. Person-to-person spread is likely to occur in the US, however the virus is NOT currently spreading in the US community and the CDC has issued guidance on how to reduce the risk that it might.
From the website, Squawk Box Asia is CNBC’ s flagship show that sets the news agenda and takes viewers through the pre-game and the opening of Asia's business trading day, covering the top market moving stories and views from the top CEOs, asset managers and newsmakers.
About Co-Diagnostics, Inc.: Co-Diagnostics, Inc., a Utah corporation, is a molecular diagnostics company that develops, manufactures and markets a new, state-of-the-art diagnostics technology. The Company’ s technology is utilized for tests that are designed using the detection and/or analysis of nucleic acid molecules ( DNA or RNA). The Company also uses its proprietary technology to design specific tests to locate genetic markers for use in industries other than infectious disease and license the use of those tests to specific customers.
Forward-Looking Statements: This press release contains forward-looking statements. Forward-looking statements can be identified by words such as `` believes, '' `` expects, '' `` estimates, '' `` intends, '' `` may, '' `` plans, '' `` will '' and similar expressions, or the negative of these words. Such forward-looking statements are based on facts and conditions as they exist at the time such statements are made and predictions as to future facts and conditions. Forward-looking statements in this release may include statements regarding the ( i) use of funding proceeds, ( ii) expansion of product distribution, ( iii) acceleration of initiatives in certain verticals or markets, ( iv) capital resources and runway needed to advance the Company’ s products and markets, ( v) increased sales in the near-term, ( vi) flexibility in managing the Company’ s balance sheet, ( vii) anticipation of business expansion, and ( viii) benefits in research and worldwide accessibility of the CoPrimer technology and its cost-saving and scientific advantages. Forward-looking statements are subject to inherent uncertainties, risks and changes in circumstances. Actual results may differ materially from those contemplated or anticipated by such forward-looking statements. Readers of this press release are cautioned not to place undue reliance on any forward-looking statements. The Company does not undertake any obligation to update any forward-looking statement relating to matters discussed in this press release, except as may be required by applicable securities laws.
View source version on businesswire.com: https: //www.businesswire.com/news/home/20200128005314/en/ | business |
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