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A Key Industrial Supplier Sees an Improving Environment. That’ s Good News for Investors. | TE Connectivity just reported earnings per share that beat guidance and Wall Street estimates. That’ s good news for investors. And management said it saw solid results across all of its businesses. More good news.
The sensors and connectors company reported results for the first quarter of its fiscal 2020—which corresponds to the calendar fourth quarter of 2019—on Wednesday morning. It was a tough year for much of the industrial sector, and companies like TE Connectivity ( ticker: TEL), as industrial activity contracted in the U.S. and China. Companies up and down the industrial supply chain held back on orders as trade-war uncertainty weighed on confidence.
That environment meant that TE’ s sales dropped 5% from the same period a year ago, to $ 3.2 billion, while adjusted EPS slipped 6%, to $ 1.21. ( Adjustments include accounting for a noncash charge due to tax reform in Switzerland, where the company is based.) But both were better than analysts’ forecasts and the midpoint of company guidance.
“ When you look at our first quarter, it was a strong quarter across our businesses, ” TE Connectivity CEO Terrence Curtin told Barron’ s. “ I’ m very pleased with the execution.... It was really an operational beat, it wasn’ t due to tax or things like that. ”
Some headwinds remain for 2020. The coronavirus outbreak in central China along with Boeing’ s ( BA) 737 MAX turmoil threaten 2020 earnings growth. Still, TE felt confident enough to raise 2020 guidance by a nickel, to about $ 5.10 a share. Even more good news. And orders grew year over year. The reported book-to-bill ratio was greater than 1, which means the company is recording more new business than current sales.
The one negative in the earnings release may have come from something beyond the company’ s control: Wall Street. Analysts predict TE will earn $ 5.12 in 2020. Street estimates and the company’ s new guidance are close. But TE is in an unusual situation where Wall Street is more aggressive than the company. That could create volatility for the stock Wednesday. Still, results for the reported quarter look solid.
TE’ s stability and higher guidance are small positives for the entire industrial sector.
“ We liked what we saw in a constructive backdrop of stability, versus what has been an ongoing challenging environment, ” Curtin told Barron’ s. “ As we went through the quarter, orders picked up across all regions. And it really gave us increased confidence to where we guided 90 days ago. ”
Not everything is positive. Boeing and its troubled 737 MAX jet remain a headwind for the company. Curtin told Barron’ s the MAX is hitting the company’ s sales outlook: “ 737 platform growth is a 0.5% headwind. ”
But it didn’ t upend full-year guidance because TE is diversified. Total aerospace sales last quarter totaled about $ 1.2 billion, a little less than 10% of total company sales. That’ s split between commercial aerospace and defense markets. What’ s more, the commercial aerospace portion is split between Boeing, Airbus ( AIR.France), and other suppliers.
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The MAX has been grounded worldwide since mid-March, following two deadly crashes of the single-aisle jet within five months. Boeing has been working on fixes with global aviation authorities for months and temporarily halted MAX production in January, in part to stop building inventory. About 400 planes have been produced and parked since the grounding. The halt has created a lot of uncertainty for all aerospace suppliers.
It hasn’ t affected stock prices, though. Most suppliers, like TE, are diversified. The aerospace suppliers Barron’ s tracks are up about 22% since the second MAX crash, better than the comparable gains of the Dow Jones Industrial Average and S & P 500 over the same span.
Over the past year, TE stock is up about 22%, closely mirroring gains of the broader stock market. Shares closed Tuesday up 1.3%, at $ 98.10. | business |
Apple Is on the 5G Sidelines While Huawei, Samsung Dominate Early Sales | Huawei Technologies and Samsung are dominating the early market for 5G mobile phones, according to data from research firm Strategy Analytics, with Apple expected to remain on the sidelines until later this year.
The new data show that global shipments of 5G phones reached 19 million units in 2019, with demand “ much higher than expected. ” That’ s up from zero 5G phones in 2018.
Huawei was the market leader with 37% of the market, most of those sold in China. Samsung had 36% of the market, selling 5G phones in a broader range of markets, including South Korea, the U.S. and the U.K. Vivo, which sells phones primarily in China, had 10.7% of the market. China-based Xiaomi, which sells phones in Western Europe as well as domestically, had 6.4% of the market. South Korea’ s LG rounded out the top five, with a 4.8% share.
The 5G phone sales last year were just the tip of the iceberg: the game will really get going in 2020. At the CES trade show in Las Vegas earlier this month, Qualcomm ( ticker: QCOM) President Cristiano Amon predicted that 200 million 5G smartphones will be sold in 2020, and growing from there. Apple ( AAPL) is going to be a little late to the party, with the company widely expected to introduce its first 5G phones this fall. In commenting on Apple’ s December quarter earnings today, some analysts wondered if stronger-than-expected demand for Apple’ s iPhone 11 lineup might be stealing some early potential demand away from the 5G launch.
Meanwhile, the emerging coronavirus issue could have an impact on the speed of 5G adoption. Without referring specifically to 5G, Apple CEO Tim Cook on the company’ s earnings call Tuesday cautioned that the virus issue could affect both its partners in China and consumer demand in the country.
Strategy Analytics Executive Director Neil Mawston cautioned in a statement that “ the recent coronavirus scare is currently restricting trade in some parts of China, ” which could cause a slowdown in 5G supply or demand across Asia or world-wide in the 2020 first half. “ Industry players should be prepared for bumpy 5G sales in some markets, ” he added. | business |
Coronavirus Will Take a Bite Out of Earnings from Nike and Other China-Exposed Retailers | Credit Suisse says the media “ fear factor ” regarding the coronavirus will negatively impact China-exposed retail companies, leading to a potential 11 to 17% downside for these stocks. However, the bank says the stocks will bounce back within a few months of peak media mentions of the word “ coronavirus, ” based on data from previous virus outbreaks.
Nike ( ticker: NKE), Estée Lauder ( EL) and Tapestry ( TPR) could suffer a 3% to 5% decline in earnings per share this quarter and a 1 to 2% overall EPS decline this year, said Credit Suisse analyst Michael Binetti in an interview on Monday. The stocks were down between 4% to 10% since mid-January through Monday, while the S & P 500 fell 2.6% over the same period.
More coronavirus cases are being reported across the globe, and the outbreak has caused travel to decline and people to avoid crowded areas in China, including shopping centers where these companies sell goods.
Read Next: The Dow Could Hit 30,000 Five Years Ahead of Schedule. It Won’ t Stop There.
Although the impact on full-year earnings likely will be in the low single digits, market reactions could lead to larger short-term drops in the price/earnings ratio, said Binetti.
Past outbreaks, including SARS in 2003 and avian flu in 2004 to 2005, led to 10 to 15% drops in P/Es compared to the market, Binetti wrote in a note published Monday.
“ It tends to be fairly near-term, and it reverses once the media starts to move away from the story, ” Binetti said.
Binetti noted an inverse correlation between media mentions and P/E ratios for these retail companies. As media mentions of the words “ SARS ” and “ avian flu ” increased during the outbreaks of 2003 and 2004 to 2005, the P/E ratios of China-exposed retail companies dropped. Binetti said when the coverage cooled, the stocks began to recover.
“ It’ s hilarious that you and I are talking about this because it’ s a self-fulfilling prophecy of the note, ” Binetti said. “ The valuations of these stocks tend to compress until we get to a point where the media understands it, the citizens start to understand it, and the market can start to have faith in what the total damage to earnings for these companies will be. ”
During the SARS outbreak of 2003, China was a low- to mid-single-digit percent of revenues for Nike and Estée Lauder. According to the note, China currently makes up about 17% of total revenue for both Nike and Estée Lauder and about 15% for Tapestry.
During the peak of SARS in 2003, the growth rate of retail sales in China dropped to 4% from the rate of 9% in the previous 12 months.
“ People still buy things, but there’ s a noticeable dip in the growth rate, ” Binetti said.
As a historical example, Binetti analyzed Louis Vuitton ( LVMH) in 2003, when Asia ( excluding Japan) made up 13% of total sales. During the peak of media mentions of “ SARS, ” March to April 2003, the company’ s P/E fell 16% relative to the S & P.
“ It was back to where it was before the SARS virus by summertime, ” Binetti said, predicting a similar P/E recovery period of several months following the height of coronavirus coverage.
Binetti wrote that the effect of the coronavirus will likely be less than the SARS outbreak of 2003 because containment efforts are more organized and the disease is less deadly. Binetti estimated coronavirus currently has a death rate of 2.8% compared to the 9.6% death rate of SARS, 774 of 8,098 people infected.
Another key difference between the economic effects of coronavirus and SARS is online retail.
“ E-commerce is one of the things that help defend these businesses this time. 35% of apparel and footwear in China is bought through e-commerce today, whereas it was probably minimal back then. That compares to just 27% in the U.S., ” Binetti said.
Coronavirus strikes amid the leadership transition of John Donahoe as CEO of Nike this month, replacing Mark Parker. Binetti doesn’ t view the change as a risk factor.
“ He’ s got people on the ground who have navigated shocks to consumption in China before, ” Binetti said.
Nike beat both the Dow Jones Industrial Average and the S & P 500 in 2019, gaining 36%.
Estée Lauder stock gained 60% over the past 12 months, and the company is one of only nine S & P 500 companies to have beaten Wall Street earnings-per-share estimates for at least 20 straight quarters.
Despite the company’ s strong performance, Oppenheimer analyst Rupesh Parikh downgraded Estée Lauder to Perform from Outperform on Monday in response to coronavirus fears, lowering the target price to $ 210 from $ 230 per share. | business |
Coronavirus hits Scottish salmon exports – Fish Farmer Magazine | For all the latest industry news, markets and jobs in aquaculture
THE coronavirus that has shut down large parts of China has begun to have an impact on Scottish farmed salmon exports, according to the Scottish Salmon Producers Organisation.
An SSPO spokesperson said: ‘ We are obviously monitoring the situation very closely: China is a very important market for us.
‘ The early indications are that the demand for imports of salmon has slowed as a result of the ongoing health issues in the country, particularly in the restaurant and hotel trade.
‘ As a result, the small number of our member companies who are affected are looking for other markets for fish which would have been destined for China, particularly in the US and around Europe.
‘ But the first priority for everybody has to be the health and wellbeing of the people of China and we hope this crisis eases as soon as possible.’
Salmon prices fell back sharply in Norway at the weekend, with the coronavirus outbreak largely to blame.
China is a major and expanding market for Norwegian frozen salmon but with the city of Wuhan, where the virus first hit, in virtual lockdown and travel severely restricted in many other cities and regions, demand for seafood has slumped.
In the past few days, the Foreign Office has advised UK citizens against all but essential travel to mainland China.
There have been nearly 6,000 confirmed cases of the disease to date, with reports of it spreading overseas. Some 132 people are believed to have died from the mysterious respiratory illness. | general |
WHO, China Leaders Discuss Battle Against Coronavirus Outbreak | The Director-General of the World Health Organization ( WHO), Dr. Tedros Adhanom Ghebreyesus, yesterday met with President Xi Jinping of the People’ s Republic of China in Beijing. They shared the latest information on the novel coronavirus 2019 ( 2019-nCoV) outbreak and reiterated their commitment to bring it under control.
Dr. Tedros was joined by WHO Regional Director Dr. Takeshi Kasai and Executive Director of the WHO Health Emergencies Programme Dr. Mike Ryan, and also met State Councilor and Minister of Foreign Affairs Wang Yi and Minister of Health Ma Xiaowei.
“ Stopping the spread of this virus both in China and globally is WHO’ s highest priority, ” — Dr. Tedros
The National Health Commission presented China’ s strong public health capacities and resources to respond and manage respiratory disease outbreaks. The discussions focused on continued collaboration on containment measures in Wuhan, public health measures in other cities and provinces, conducting further studies on the severity and transmissibility of the virus, continuing to share data, and for China to share biological material with WHO. These measures will advance scientific understanding of the virus and contribute to the development of medical countermeasures such as vaccines and treatments.
The two sides agreed that WHO will send international experts to visit China as soon as possible to work with Chinese counterparts on increasing understanding of the outbreak to guide global response efforts.
“ Stopping the spread of this virus both in China and globally is WHO’ s highest priority, ” said Dr. Tedros. “ 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. WHO is working closely with the government on measures to understand the virus and limit transmission. WHO will keep working side-by-side with China and all other countries to protect health and keep people safe. ”
The WHO mission comes as the number of people confirmed with the virus rose to over 4500 globally on January 28, the greatest number being in China.
The WHO delegation highly appreciated the actions China has implemented in response to the outbreak, its speed in identifying the virus and openness to sharing information with WHO and other countries.
Much remains to be understood about 2019-nCoV. The source of the outbreak and the extent to which it has spread in China are not yet known. While the current understanding of the disease remains limited, most cases reported to date have been milder, with around 20% of those infected experiencing severe illness. Both WHO and China noted that the number of cases being reported, including those outside China, is deeply concerning. Better understanding of the transmissibility and severity of the virus is urgently required to guide other countries on appropriate response measures.
WHO is continually monitoring developments and the Director-General can reconvene the International Health Regulations ( 2005) Emergency Committee on very short notice as needed. Committee members are on stand-by and are informed regularly of developments. | tech |
Confirmed Coronavirus Cases Climb to 6065 Globally – 132 Deaths in China | Coronavirus Map: Distribution of 2019-nCoV case as of January 29, 2020. Credit: WHO
Note: There is now a newer Novel Coronavirus ( 2019-nCoV) Situation Report 10.
During previous outbreaks due to other coronaviruses ( Middle-East Respiratory Syndrome ( MERS) and Severe Acute Respiratory Syndrome ( SARS), human-to-human transmission occurred through droplets, contact, and fomites, suggesting that the transmission mode of the 2019-nCoV can be similar. The basic principles to reduce the general risk of transmission of acute respiratory infections include the following:
WHO does not recommend any specific health measures for travelers. In case of symptoms suggestive of respiratory illness either during or after travel, travelers are encouraged to seek medical attention and share their travel history with their healthcare provider. | tech |
Coronavirus Outbreak Tests World’ s Dependence on China | HONG KONG — The world is quickly realizing how much it depends on China.
Apple is rerouting supply chains. Ikea is closing its stores and paying staff members to stay home. Starbucks is warning of a financial blow. Ford and Toyota will idle some of their vast Chinese assembly plants for an extra week.
On Wednesday, British Airways and Air Canada suspended all flights to mainland China, and Delta joined the growing number of carriers reducing service. Japan’ s leaders are bracing for a possible hit and the Federal Reserve is “ very carefully monitoring ” the situation. Hotels and tour operators across Asia are watching fearfully as the world’ s largest source of tourism dollars tightens its borders.
The mysterious coronavirus that has killed more than a hundred people and sickened thousands has virtually shut down one of the world’ s most important growth engines. Desperate to slow the fast-moving virus, the Chinese authorities have extended the country’ s national holiday to Feb. 3, and crippled land, rail and air transport. Entire cities have shut down.
An impoverished nation just four decades ago, China has become an essential part of the modern global industrial machine. It alone accounts for roughly one-sixth of global economic output, and is the world’ s largest manufacturer.
China’ s importance goes beyond what it makes. Its consumers buy more cars and smartphones than anybody else. When they go abroad, Chinese tourists spend $ 258 billion a year, according to the World Tourism Organization, nearly twice what Americans spend.
But it has become so crucial to the operations of American companies that some members of the Trump administration cited that dependence as a justification for the trade war that began two years ago, an economic conflict that is forcing businesses to consider shifting their factories in China to countries with better relations with Washington.
Global companies were reconsidering their China strategies even before the trade war started. China’ s labor costs are rising, local companies are increasingly competitive and the government has become less accommodating. Still, its skilled worker base, extensive highway and rail systems and vast consumer market make China tough to quit.
“ What is clear is that businesses were already reeling from multiple sources of uncertainty, ” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. “ It’ s one more thing, ” he added.
The full extent of the hit to the broader business world is not yet clear. The obvious comparison is to the deadly SARS outbreak 17 years ago, which began in China and killed hundreds globally. In early 2003, SARS slowed China’ s growth substantially.
“ There will clearly be implications, at least in the near term, for Chinese output, ” the Federal Reserve chair, Jerome H. Powell, said during a news conference on Wednesday. “ We just have to see what the effect is globally. ” | business |
More Than 7,700 Cases of Coronavirus Recorded Worldwide | Mainland China now has more cases of coronavirus than it had of SARS, a respiratory infection that spread across China in 2002 and 2003 and killed 774 people in 17 countries. During the SARS outbreak, China had 5,327 cases and 349 deaths, according to the World Health Organization.
The number of confirmed cases increased to more than 7,700 worldwide by early Thursday, according to Chinese officials and the World Health Organization, with all but 68 of the infections taking place in mainland China. On Wednesday, there were about 6,000 infections worldwide.
In China, a total of 170 people have now died from the mysterious new coronavirus, according to official Chinese statistics, but the real number is likely much higher. A dearth of test kits has hindered health officials ability to accurately diagnose and track the illness.
Here’ s what we know about how the disease has spread:
◆ China said early Thursday that 38 more people had died from the virus, which is believed to have originated in the central city of Wuhan and is spreading across the country. The previous count, on Wednesday, was 132.
◆ Tibet reported its first confirmed case.
◆ Thailand has reported 14 cases of infection; Hong Kong has 10; the United States, Taiwan, Australia and Macau have five each; Singapore, South Korea and Malaysia each have reported four; Japan has 11; France has five; Germany has four; Canada has three; Vietnam has two; and Nepal, Cambodia, and the United Arab Emirates each have one.
◆ Cases recorded in Taiwan, Germany, Vietnam and Japan involved patients who had not been to China. There have been no reported deaths outside China.
The virus has infected more than 7 million people and has been detected in nearly every country.
The 195 Americans who were evacuated from Wuhan, the epicenter of the virus, have been instructed by federal health authorities to remain for three days on the air force base in Southern California where they landed on Wednesday.
The passengers on the flight, which was chartered by the State Department, will be fully evaluated during those three days, according to Christopher R. Braden, a deputy director of the Centers for Disease Control.
Once cleared, the passengers will be allowed to fly home, where they will be monitored for 14 days by medical teams in their area.
“ We think we can do the full evaluation in three days. Some of that evaluation is taking tests and flying samples to C.D.C. in Atlanta, ” Dr. Braden told a news conference in Riverside, California.
“ The reason we want to do active monitoring for 14 days is to determine if they can become ill during that period, ” Dr. Braden added. “ That is the basic public health premise of our action. “
The flight carrying the evacuated Americans landed in Southern California, at March Air Reserve Base, shortly after 8 a.m. local time on Wednesday. The flight had stopped in Anchorage for several hours, where the passengers were checked by a team from the Centers for Disease Control.
“ The whole plane erupted in cheers when the crew said, ‘ Welcome home to the United States,’ ” said Anne Zink, Alaska’ s chief medical officer.
[ For a coming article, The New York Times would like to hear from Americans who flew on the chartered flight from China or their family members. Please contact miriam.jordan @ nytimes.com to share your story. ]
The evacuees — consisting mainly of consular officials and their families but also including some other Americans who were in China — will be accommodated at the base during the three-day period. But they will not have contact with any military personnel on the base.
The evacuees will undergo a battery of tests. If their results, from the lab of the Centers for Disease Control, come back negative, they will be allowed to travel onward.
During a news conference, Dr. Braden was peppered with questions about the wisdom of releasing the former residents of Wuhan into communities across the country.
He said that if a person deemed a danger to the community insisted on leaving before the 72-hour period expired, “ we can institute an individual quarantine for that person and we will. ”
Other countries that have evacuated or plan to evacuate their citizens from Wuhan include France, South Korea, Japan, Morocco, Germany, Kazakhstan, Britain, Canada, Russia, the Netherlands, Myanmar and Australia.
Researchers at the Peter Doherty Institute for Infection and Immunity in Melbourne, Australia, say they have grown the Wuhan coronavirus in a laboratory.
Scientists in China and other researchers have managed to do so as well, officials at the World Health Organization said on Wednesday.
Isolating and growing viral samples is standard procedure during the outbreak of a novel pathogen, said Dr. Peter J. Hotez, co-director of the Texas Children’ s Hospital Center for Vaccine Development at Baylor College of Medicine in Houston.
“ Early on in an outbreak, you still need to understand the biology of the new organism that’ s causing infections, ” Dr. Hotez said.
Scientists collect samples from fluids obtained from the lungs or nasal passages of infected patients. Researchers may use the lab-grown virus to test antiviral drugs or develop experimental vaccines, Dr. Hotez said.
By growing the novel coronavirus in controlled conditions, researchers also may get a better understanding of why the virus seems to be transmitted more easily than the SARS coronavirus, yet so far seems to have a lower mortality rate.
Scientists at the Centers for Disease Control and Prevention also are trying to grow the coronavirus from patient samples collected in the United States. Once they’ ve succeeded, the agency will make samples available to infectious disease researchers through a public repository. Chinese and Australian researchers have already offered to distribute samples.
Scientists are also working quickly to develop a vaccine capable of stopping the new coronavirus.
Government scientists in China, the United States and Australia, as well as those working at Johnson & Johnson, Moderna Therapeutics and Inovio Pharmaceuticals are all engaged.
Researchers at the National Institutes of Health’ s Vaccine Research Center in Maryland have pinpointed the parts of the genetic code that could be used to make a vaccine. But a vaccine could take months, if not years, to develop.
Three Japanese citizens who returned on a government-sponsored charter plane from Wuhan on Wednesday morning tested positive for the coronavirus, bringing the number of confirmed cases in Japan to 11.
Katsunobu Kato, the country’ s Health, Labor and Welfare minister, told a session of Parliament on Thursday morning that the two men and one woman who landed in Tokyo on Wednesday had tested positive for the virus.
On Wednesday, 206 Japanese citizens landed at Haneda airport. All except two agreed to be tested for the virus, and 12 were sent immediately to a hospital for monitoring. The majority of the passengers — 191 — were asymptomatic but are quarantined in a hotel awaiting the results of virus tests. Of the three who tested positive, one exhibited symptoms, while two others were not yet showing symptoms.
Another Japanese chartered flight from Wuhan landed on Thursday morning with 210 passengers aboard.
The World Health Organization will convene a meeting of experts on Thursday in Geneva to vote again on whether to declare the coronavirus epidemic a global health emergency, officials said on Wednesday.
At a news conference in Geneva on Wednesday, W.H.O. officials said they were particularly concerned about recent cases of person-to-person transmission that have been reported among people who have never been to China.
On Jan. 23, when there were about 800 confirmed cases and all 25 deaths were in China, the same committee recommended that an emergency not be declared at that time. Since then, the infection has spread to people in four countries who have never been to China.
Most patients infected with the virus develop mild symptoms, but about 20 percent become severely ill. The death rate seems to be 2 percent, W.H.O. officials said, though they cautioned that there are many unknown variables.
“ This number may change, ” said Dr. Maria Van Kerkhove, acting head of emerging diseases at the W.H.O. “ It’ s early to put a percentage on that. ”
The director general of the W.H.O., Dr. Tedros Adhanom Ghebreyesus, praised China’ s response to the crisis.
“ The fact that to date we have only seen 68 cases outside China and no deaths is due in no small part to the extraordinary steps the government has taken to prevent the export of cases, ” he said.
Health officials in China alerted Germany when a Chinese woman returning from Germany developed symptoms and tested positive for the coronavirus. Because of the shared information, at least one infection in Germany was discovered.
“ This example is a good illustration of how China is engaging ” with the W.H.O. and other countries, Dr. Tedros said.
But some Chinese social media users have strongly criticized the government’ s handling of the outbreak, posting harrowing descriptions of untreated family members and images of hospital corridors loaded with patients.
The sheer amount of complaints — and some of the clever ways users have dodged censors, like referring to President Xi Jinping as “ Trump ” — have made it difficult for the Chinese government to maintain its tight grip on what is said, seen and heard about it.
Some international sports events have been postponed or even canceled in China because of the coronavirus outbreak.
The biggest casualty so far is the indoor world athletics championships in Nanjing, which were postponed by a full year on Wednesday.
The international ski federation has canceled the first World Cup races planned for the mountain venue where the sport will be held during the 2022 Beijing Olympics, The Associated Press reported.
The governing body of athletics said the indoor championships will now be held in March 2021 instead of March 13-15 this year.
Nanjing is about 330 miles from Wuhan, where the outbreak started.
Qualifying tournaments for this summers’ Tokyo Olympics have also been affected. Women’ s soccer and women’ s basketball games were moved to Australia and Serbia. The soccer games had initially been moved from Wuhan to Nanjing. Boxing tournaments for the Asia and Oceania regions will be held in Jordan in March.
British Airways has indefinitely suspended all flights to and from China, the airline said on Wednesday, citing advice from Britain’ s Foreign Office that cautioned against all nonessential travel to China.
Updated June 12, 2020
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “ very rare, ” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’ s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’ s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “ start at no more than 50 percent of the exercise you were doing before Covid, ” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “ When you haven’ t been exercising, you lose muscle mass. ” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’ t being told to stay at home, it’ s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. ( Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’ s temperature to look for signs of fever is not as easy as it sounds, as “ normal ” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’ t have a thermometer ( they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’ t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’ t replace hand washing and social distancing.
If you’ ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’ re sick and you think you’ ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’ s a chance — because of a lack of testing kits or because you’ re asymptomatic, for instance — you won’ t be able to get tested.
“ We apologize to customers for the inconvenience, but the safety of our customers and crew is always our priority, ” the company said in an emailed statement.
Other airlines have begun to scale back flights to China as the death toll and number of cases rises, but the British flag carrier, one of the world’ s largest international airlines, is the first to cancel all its scheduled flights.
The airline, based in London, makes multiple flights a week to Beijing and Shanghai.
Air Canada said on Wednesday that it was also suspending all flights to China, from Thursday until Feb. 29.
And Delta announced that it was temporarily reducing its weekly flights between the United States and China, because of declining demand. From Feb. 6 through April 30, the airline will go down to 21 weekly flights, or three to four weekly flights per route.
The low-cost Indonesian carrier Lion Air and Seoul Air of South Korea also suspended all their flights to China, The Associated Press reported.
United Airlines and Air Canada said on Tuesday that they would reduce flights to China, canceling dozens of scheduled trips over the coming days and weeks because of a sudden drop in demand. Health officials in the United States have also warned against all nonessential travel to China.
In Hong Kong, the authorities have reduced by half the number of flights coming into the semiautonomous region from mainland China and have also shut down rail services to the mainland. Hong Kong’ s flagship carrier, Cathay Pacific, has also suspended all flights to and from Wuhan through March.
The new coronavirus that was first discovered in China last month is showing early signs of spreading abroad, with people who never visited China during the outbreak falling ill in Germany, Japan, Taiwan and Vietnam.
The overseas cases highlight the ability of the mysterious disease, which is believed to have originated in wild animals, to be transmitted from one person to another, increasing its chances of spreading.
“ These reports are concerning, if they stand up to scrutiny, which they certainly sound credible, ” said Dr. Arthur Reingold, a professor of epidemiology at the University of California, Berkeley.
Some cases that have spread outside China appear to have been spread between family members, who are at greater risk while caring for sick relatives. Other cases, however, appear to have spread between people with different connections.
In Japan, a tour bus driver in his 60s who had driven two different groups from Wuhan, China, was confirmed to have the coronavirus, officials said on Tuesday. The driver had no history of traveling to Wuhan, the epicenter of the outbreak.
“ I think what that says is, if we can get transmission in such a setting, then we can certainly get it in the waiting room of a clinic or a hospital, ” Professor Reingold said. “ That’ s very concerning. ”
German officials said on Tuesday that a 33-year-old man from Starnberg in Bavaria was apparently infected with the coronavirus after a Jan. 21 training event with a Chinese colleague. The Chinese colleague flew home two days later. The German man was being treated under isolation while officials identified other people with whom he might have been in contact.
Late Tuesday, health officials in Germany said three more people from the same company in Bavaria were also infected. The three were admitted to a clinic in Munich, where they were to be isolated and treated. An additional 40 people with close contact to those infected would be tested on Wednesday, officials said.
Taiwan said on Tuesday that a man had become infected after his wife had contracted the virus while working in Wuhan. He became Taiwan’ s eighth case and the first known to be transmitted locally.
In an article published by The New England Journal of Medicine on Tuesday, Vietnamese physicians reported that a 65-year-old man from Wuhan appeared to have transmitted the coronavirus to his son, 27, who was living in Long An Province, southwest of Ho Chi Minh City. The father developed a fever on Jan. 17, four days after flying to Hanoi, Vietnam, from Wuhan.
The son met his father on Jan. 17, and by Jan. 20 he had a dry cough and fever. The father’ s condition has improved, and the son is stable, the doctors wrote. None of their 28 identified close contacts, including the father’ s wife, have developed symptoms of respiratory infection, they said.
With demand for surgical masks on the rise in China, a drugstore in Beijing has been fined more than $ 400,000 by the government for charging customers roughly six times what the masks are being sold for online.
State-run media said that the store was charging customers 850 yuan, or $ 122, for the masks, while they were being sold online for 143 yuan.
Infectious disease specialists say the disposable masks, which cover the nose and mouth, can help prevent the spread of infections if they are worn properly and used consistently.
The masks have become ubiquitous in cities across China. In Hong Kong, where the outbreak has brought back painful memories of the SARS epidemic in 2002-03, officials said that customs authorities were examining surgical masks being sold in the city for counterfeit labeling and not meeting safety standards.
In announcing the fine against the Beijing drugstore, a government notice warned that the authorities would “ continue to step up enforcement and make every effort to curb the excessive and rapid rise in protective enforcement prices. ”
Surgical masks have become so much in demand that a website advertising more fashionable versions of them warns that deliveries are at risk of being delayed.
Reporting was contributed by Chris Buckley, Russell Goldman, Elaine Yu, Raymond Zhong, Austin Ramzy, Alexandra Stevenson, Sui-Li Wee, Miriam Jordan, Paul Mozur, Knvul Sheikh, Katie Thomas, James Gorman, Motoko Rich, Ben Dooley, Makiko Inoue, Eimi Yamamitsu, Patricia Cohen, Donald G. McNeil Jr., Roni Caryn Rabin, Motoko Rich and Karen Zraick. Zoe Mou, Albee Zhang, Amber Wang, Yiwei Wang and Claire Fu contributed research.
| business |
ANA suspends flights between virus-hit Wuhan and Narita through February | All Nippon Airways Co. said Wednesday it will extend throughout February the suspension of all flights between the Chinese city of Wuhan, where the outbreak of a new deadly coronavirus began last month, and Narita Airport.
The move comes after ANA decided on Jan. 24 to suspend daily round-trip flights between Wuhan and Narita for the rest of January, affecting some 2,400 people.
The airline has decided to extend the suspension as Wuhan is under a virtual lockdown and no transportation is now allowed to and from the city’ s airport. | tech |
Toyota stops production in China until Feb. 9 amid coronavirus outbreak | Toyota Motor Corp. is halting operations in China at least until Feb. 9, joining a growing list of global companies that have cut back on business activities in China as a new coronavirus infection spreads.
“ Given the various factors including the guidelines by the local and region governments and parts supply situation, as of Jan. 29, we have decided to halt operations in our plants in China until Feb. 9, ” Maki Niimi, a spokesman for the automaker, said. “ We will monitor the situation and make further decisions on operations from Feb. 10. ”
Toyota has already restricted travel to Hubei province, based on guidelines from Japan’ s Foreign Ministry. While there are no restrictions to other parts of China, Toyota has asked employees to avoid unnecessary travel to other areas of the country, Niimi said. There are currently no Toyota employees in Wuhan, Hubei’ s capital, or the province, he added.
Asked whether there would be an impact on Toyota’ s supply chain, Niimi said: “ Since there is an extensive supply chain in the automotive industry and there are a wide range of parts and components that are used for vehicles, it is difficult to specifically comment. ”
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Japanese nationals evacuated from Wuhan describe fear in virus epicenter | TOKYO/WUHAN, CHINA – A charter jet evacuating the first group of Japanese nationals from Wuhan, the Chinese city at the center of a deadly virus outbreak, arrived in Tokyo on Wednesday morning.
Among the 206 Japanese nationals who were repatriated from Wuhan, 12 have been hospitalized with symptoms such as a fever or cough, according to the health ministry and the Tokyo Metropolitan Government. Two of those people were diagnosed with pneumonia.
Another 440 people have asked for help to leave Wuhan, though a Japanese Foreign Ministry spokesman said that number was expected to grow significantly. More flights are being arranged to evacuate them.
Prime Minister Shinzo Abe said the government’ s “ greatest responsibility ” is the protection of its citizens. “ We will do our utmost to prevent the outbreak from spreading, ” he said.
“ We are very relieved, ” Takayuki Kato, one of the passengers who arrived at Haneda Airport around 8:40 a.m., told reporters.
RELATED STORIES Japan firms brace for impact from China's virus-related ban on outbound group travel China virus could take larger-than-expected bite out of Japan's economy As Japan prepares to evacuate citizens from Wuhan, WHO says such measures are not needed ANA suspends flights between virus-hit Wuhan and Narita through February Toyota stops production in China until Feb. 9 amid coronavirus outbreak
Medical personnel on board checked the evacuees’ health and found five — three men and two women in their 30s to 50s — had symptoms including a fever or cough and were rushed to medical facilities in Tokyo. The two diagnosed with pneumonia are men in their 40s and 50s.
A further eight were later found to have similar symptoms after being taken to the National Center for Global Health and Medicine in Tokyo, seven of whom were also hospitalized.
Although showing no symptoms, the remaining passengers on the charter flight that arrived Wednesday are being asked to stay indoors for two weeks and be vigilant for any sign of symptoms, according to government officials. The aircraft carrying the evacuees was disinfected, All Nippon Airways said.
Those with somewhere to stay in or near Tokyo would be allowed to head there, while the plan was for those intending to travel further from the capital to be offered accommodation, initially, at local hotels.
The new pneumonia-causing coronavirus has already claimed at least 132 lives and infected about 6,000 people in China — more cases than the country saw in the SARS coronavirus in 2002 and 2003, while also spreading globally, with cases confirmed in the United States, Europe and elsewhere as well as in Japan.
A second charter flight for Japanese nationals was slated to leave Haneda at 8 p.m. Wednesday and return at 7:30 a.m. Thursday, the government said. There has been talk of using a bigger plane to complete the evacuation in three trips.
Additionally, a Japanese man in his 60s still in Wuhan is suffering from a serious pneumonia infection, a Foreign Ministry official said later Wednesday, and had tested positive for the coronavirus in a preliminary screening.
Takeo Aoyama, a Nippon Steel employee who arrived on Japan’ s evacuation flight, described confusion in Wuhan, with travel restrictions intended to contain the virus making it harder for those in the epicenter to know what was happening.
“ The number of patients began increasing rapidly at a certain point. That was very worrying, ” he told reporters at the airport.
“ We were not able to move freely, so we only had partial information. The restrictions on the flow of goods and transport were extremely strict, ” he said.
He said food was available, but supplies were uncertain, with shops selling out on some days.
“ It wasn’ t a situation where we couldn’ t get anything at all. But it wasn’ t a situation where you could get anything freely, either, ” Aoyama said.
Takayuki Kato, who was working in Wuhan for the firm Intec, said the atmosphere inside the city changed as the scale of the crisis became clear.
“ Everyone in the city began wearing masks. On the 23rd, when transport was shut down, I became very alarmed, ” he said.
He said he was careful to wash his hands and rinse out his mouth, and hoped that would be sufficient to keep him healthy.
The evacuation had gone smoothly, he said. The flight “ was quiet. People were cool-headed. ”
As of Tuesday morning, about 650 Japanese nationals in total had requested evacuation from Wuhan, where the virus was first identified.
In Tokyo, as of Tuesday, a total of 50 beds had been made available in four public hospitals in Tokyo to accept those with symptoms.
“ Be it doctors or hospital rooms, we are prepared to allocate more resources to take in more patients showing symptoms of the coronavirus, ” said Fukumi Nakamura, chief physician of the infectious disease ward at Ebara Hospital in Ota Ward. The hospital is located near Haneda Airport and often provides treatment for travelers returning from abroad.
At Ebara Hospital, the returnees interned there were expected to be taken to examination rooms using a separate route than usual, in order to avoid contact with other patients or nonmedical personnel.
“ We have made all the necessary preparations to provide treatment for those returning from Wuhan and anybody concerned they may have contracted the virus, ” said Nakamura. “ The number of people infected is growing at an explosive rate, so I insist that anyone showing even mild symptoms seek medical help. ”
The facility has 11 rooms with pressurized ventilation systems designed to keep air from flowing out and prevent the spread of infectious diseases.
Nakamura said one of the rooms was used during the 2012 outbreak of Middle East respiratory syndrome ( MERS), which claimed more than four hundred lives worldwide.
“ I urge people not to panic or act irrationally out of blind fear, ” Nakamura said. “ What’ s best is for you to inform yourselves of the risks and respond with the appropriate amount of concern.
“ All pathogens are the same when it comes to preventing transmission. Wear a mask, cough or sneeze into a napkin or your sleeve and wash your hands often, ” she added.
China has imposed a virtual lockdown on Wuhan and other cities in Hubei province in an effort to contain the outbreak during the Lunar New Year holiday.
Prior to the arrival of the latest evacuees, Japan’ s health ministry had confirmed seven cases of the virus in the country, including what is believed to be the first domestic case of human-to-human transmission of the virus.
Meanwhile, Nara Gov. Shogo Arai said Wednesday that tourists from Wuhan who took part in one of the bus tours, which began on Jan. 12, traveled via Narita Airport and Kansai International Airport and stopped in Nara Park for about an hour on Jan. 16.
Nara Prefectural Government officials said they believed the driver from the Osaka-based tour bus company was infected inside the bus. No other drivers with the company are said to be showing similar symptoms.
Thousands of foreigners are among those effectively trapped in the Wuhan area, and numerous countries are devising plans to get their nationals out.
The United States sent a plane to the Chinese city Tuesday to evacuate diplomats and citizens, with South Korea saying it will do the same Thursday and Friday.
Chinese President Xi Jinping called the virus a “ demon ” and pledged a “ timely ” release of updates about the crisis during talks Tuesday in Beijing with Dr Tedros Adhanom Ghebreyesu, head of the World Health Organization.
Following the talks, the WHO said the two sides had agreed to send international experts to China “ as soon as possible … to guide global response efforts. ”
“ Stopping the spread of this virus both in China and globally is the WHO’ s highest priority, ” Tedros said.
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Coronavirus a disease of Chinese autocracy | CLAREMONT, CALIFORNIA – An outbreak of a new coronavirus that began in the Chinese city of Wuhan has already infected over 4,000 people — mostly in China but also in several other countries, from Thailand to France to the United States — and killed more than 100. Given China’ s history of disease outbreaks — including of severe acute respiratory syndrome ( SARS) and African swine fever — and officials’ apparent awareness of the need to strengthen their capacity to address “ major risks, ” how could this happen?
It should be no surprise that history is repeating itself in China. To maintain its authority, the Communist Party of China must keep the public convinced that everything is going according to plan. That means carrying out systemic cover-ups of scandals and deficiencies that may reflect poorly upon the CCP’ s leadership, instead of doing what is necessary to respond.
This pathological secrecy hobbles the authorities’ capacity to respond quickly to epidemics. The SARS epidemic of 2002-2003 could have been contained much sooner had Chinese officials, including the health minister, not deliberately concealed information from the public. Once proper disease control and prevention measures were implemented, SARS was contained within months.
Yet China seems not to have learned its lesson. Although there are important differences between today’ s coronavirus epidemic and the SARS outbreak — including far greater technological capacity to monitor disease — they may have the CCP’ s habit of cover-ups in common.
To be sure, at first glance, China’ s government has appeared to be more forthcoming about the latest outbreak. But although the first case was reported on Dec. 8, the Wuhan municipal health commission didn’ t issue an official notice until several weeks later. And, since then, Wuhan officials have downplayed the seriousness of the disease and deliberately sought to suppress news coverage.
That notice maintained that there was no evidence that the new illness could be transmitted among humans and claimed that no health care workers had been infected. The commission repeated these claims on Jan. 5, though 59 cases had been confirmed by then. Even after the first death was reported on Jan. 11, the commission continued to insist that there was no evidence that it could be transmitted among humans or that health care workers had been affected.
Throughout this critical period, there was little news coverage of the outbreak. Chinese censors worked diligently to remove references to the outbreak from the public sphere, which is far easier today than it was during the SARS epidemic, thanks to the government’ s dramatically tighter control over the internet, media and civil society. Police have harassed people for “ spreading rumors ” about the disease.
According to one study, references to the outbreak on WeChat — a popular Chinese messaging, social media and mobile payment app — spiked between Dec. 30 and Jan. 4, around the time when the Wuhan municipal health commission first acknowledged the outbreak. But mentions of the disease subsequently plummeted.
References to the new coronavirus rose slightly on Jan. 11, when the first death was reported, but then quickly disappeared again. It was only after Jan. 20 — following reports of 136 new cases in Wuhan, as well as cases in Beijing and Guangdong — that the government rolled back its censorship efforts. Mentions of coronavirus exploded.
Yet again, the Chinese government’ s attempts to protect its image proved costly, because they undermined initial containment efforts. The authorities have since switched gears and their strategy now appears to be to show how seriously the government is taking the disease by imposing drastic measures: a blanket travel ban on Wuhan and neighboring cities in Hubei province, which together have a population of 35 million.
At this point, it is unclear whether and to what extent these steps are necessary or effective. What is clear is that China’ s initial mishandling of the coronavirus outbreak means that thousands will be infected, hundreds may die and the economy, already weakened by debt and the trade war, will take another hit.
But perhaps the most tragic part of this story is that there is little reason to hope that next time will be different. The survival of the one-party state depends on secrecy, media suppression and constraints on civil liberties. So, even as Chinese President Xi Jinping demands that the government increase its capacity to handle “ major risks, ” China will continue to undermine its own — and the world’ s — safety, in order to bolster the CCP’ s authority.
When China’ s leaders finally declare victory against the current outbreak, they will undoubtedly credit the CCP’ s leadership. But the truth is just the opposite: The party is again responsible for this calamity.
Minxin Pei is a professor of government at Claremont McKenna College and a nonresident senior fellow at the German Marshall Fund of the United States. ©Project Syndicate, 2020.
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Support efforts begin across Japan to help coronavirus-hit Wuhan | People from around Japan have begun offering support to the residents that remain in locked-down Wuhan, a major Chinese city at the center of a coronavirus outbreak.
Inagora Inc., an e-commerce operator based in Tokyo, launched a campaign Monday to ship face masks, free of charge, to residents of the city and in other parts of the Hubei province in which it is located. The operator of the Wandou e-commerce platform, which sells Japanese goods to Chinese customers, saw all 10,000 packages each containing five face masks sell out within about an hour after it started accepting orders.
“ I hope people there can spend the Lunar New Year holiday at ease, ” said Inagora spokesperson Kanako Itano.
According to Itano, paid orders for face masks have skyrocketed since the outbreak of the new coronavirus, increasing up to some 300-fold per day. Orders for antibacterial sheets, mouthwash and hand soaps have also risen sharply.
On Monday, the city of Oita sent 30,000 masks it had been keeping for disaster relief purposes in boxes with a message reading “ Wuhan Jiayou! ” which means “ Hang in there, Wuhan! ” in Chinese. Oita and Wuhan have been sister cities for 40 years.
The masks will be sent to Wuhan via the Red Cross network, because the current situation prevents the city from directly receive donated goods from across the globe, according to the Oita Municipal Government’ s Cultural and International Affairs Division.
“ The people of Wuhan are like family, ” said Soichiro Hayashi, head of the division’ s International Affairs Office. “ I hope people can return to their ordinary lives as quickly as possible. ”
The Tokyo Metropolitan Government donated 20,000 protective suits for medical staff working in Hubei to treat patients with pneumonia caused by the coronavirus. The suits were loaded on a plane that the national government chartered to repatriate Japanese citizens stuck in Wuhan.
Peace Winds Japan, a nonprofit organization specializing in humanitarian aid, has sent one staff member to China to work with local disaster relief groups to distribute face masks and other goods the organization has sent to the country.
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U.S. developing vaccine against deadly China virus and urges Beijing cooperation | WASHINGTON – The United States said Tuesday it was developing a vaccine against a deadly virus that originated in China, and urged Beijing to step up its cooperation with international health authorities.
The U.S. government is keen to place its own teams on the ground to review the raw data and learn more about the pathogen, which has so far claimed more than 100 lives.
“ We have already started at the NIH and with many of our collaborators on the developing of a vaccine, ” National Institutes of Health ( NIH) official Anthony Fauci told reporters.
The process would take three months to start the first trial, three more months to gather data, before being able to move into its second phase, and is being undertaken by the biotech firm Moderna.
“ But we are proceeding as if we will have to deploy a vaccine, ” said Fauci.
“ In other words, we’ re looking at the worst scenario that this becomes a bigger outbreak. ”
China was severely criticized for its handling of the Severe Acute Respiratory Syndrome ( SARS) epidemic of 2002-03, which claimed hundreds of lives, mostly on the mainland and in Hong Kong.
During that health emergency, scientists had begun to develop a vaccine, but it was never deployed, Fauci said.
Separately, the chief scientific officer of Johnson & Johnson told AFP that his company was also developing a vaccine.
“ We will utilize the same technology that was used in the development and manufacture of Johnson & Johnson’ s Ebola vaccine, which is currently deployed in DRC and Rwanda, ” said Paul Stofells. It is “ the same technology was also used to construct our Zika and HIV vaccine candidates. ”
U.S. Health and Human Services Secretary Alex Azar said the United States has offered China assistance three times in dealing with the crisis — so far without success.
This would be necessary so that “ we can see raw data, raw evidence and help design the types of studies and analytics ” to answer critical questions such as incubation period and whether the infection can be transmitted while patients don’ t have symptoms.
“ We are urging China — more cooperation and transparency are the most important steps you can take toward a more effective response, ” Azar told reporters.
But the World Health Organization announced later Tuesday that China had agreed to allow a team of international experts into the country to work with their Chinese counterparts.
China was quick to sequence the genome of the 2019 novel Coronavirus and make it public, allowing scientists around the world to develop diagnostic tools and winning praise for its efforts, in contrast to the SARS outbreak.
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Track the coronavirus on a real-time map | The map from Johns Hopkins University's Center for Systems Science and Engineering follows coronavirus cases across the world.
The dashboard collects data from the US Centers for Disease Control and Prevention, the World Health Organization, the European Centre for Disease Prevention and Control, the Chinese Center for Disease Control and Prevention and the Chinese website DXY, which aggregates data from China's National Health Commission and the CCDC. The results populate a worldwide view of coronavirus cases in real time.
See the map here
The clickable map pinpoints regions where patients have been diagnosed with coronavirus -- the more cases in a region, the larger its dot on the map ( right now, the largest dot belongs to the Hubei Province, where the outbreak originated).
The map tracks deaths, too, in total and by city.
Lauren Gardner, director of the Center for Systems Science and Engineering and a civil engineering professor at Johns Hopkins, said the map isn't just a resource for the public -- health officials can download the data, which will inform research on the coronavirus in the future.
`` We built this dashboard because we think it is important for the public to have an understanding of the outbreak situation as it unfolds with transparent data sources, '' she said. `` For the research community, this data will become more valuable as we continue to collect it over time. ''
The dashboard also puts the outbreak into perspective: There are already more than 6,000 confirmed cases in mainland China and fewer than 100 everywhere else in the world.
The CDC regularly updates its map of confirmed coronavirus cases, too, though it shows cases by country rather than by region or city. | business |
Germany confirms four coronavirus patients, including one of first cases of transmission outside China | MUNICH, GERMANY – Germany now has four confirmed cases of the coronavirus sweeping China, health officials said Tuesday, all of them employees at a Bavarian firm recently visited by a Chinese colleague.
The health ministry in Germany’ s southern Bavaria region said in an evening statement that it had detected a further three cases, following that of a 33-year-old German man announced earlier in the day.
“ These patients are all employees of the company in the Starnberg district where the first person affected worked, ” the health ministry said.
The ministry added that 40 other employees at car parts supplier Webasto had been identified as having been in “ close contact ” with the first patient, and they will be screened on Wednesday.
All four patients are staying in an isolation ward at a Munich hospital.
Germany’ s first confirmed patient, the 33-year-old man, fell ill after attending a training session hosted by a visiting Chinese colleague on Jan. 21.
Unlike other patients of the viral outbreak in Europe so far, the man contracted the disease without having been to China himself.
A spokeswoman for the Robert Koch Institute, Germany’ s center for disease prevention and control, told AFP the German case appeared to be the first instance of a “ human-to-human transmission ” outside Asia.
Japan has also reported a patient testing positive for the strain of coronavirus without having traveled to China.
In Vietnam, a man visiting from Wuhan is suspected of infecting his son who had been living in Ho Chi Minh City for four months.
The Chinese woman who held the training session in Germany “ started to feel sick on the flight home on Jan. 23, ” Andreas Zapf, head of the Bavarian State Office for Health and Food Safety, told a press conference.
She immediately sought medical attention on her return and was confirmed to have caught the virus, which has spread rapidly in recent weeks after first emerging in the Chinese city of Wuhan.
The woman had recently visited her parents in the Wuhan region, Zapf said.
In a statement, the Webasto company said it had halted all business travel to and from China “ for at least the next two weeks. ”
The virus has so far killed over 100 people and infected more than 4,500 people in China.
Cases have also been reported in a string of other countries, including the United States, France, Australia and Japan.
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Coronavirus Could Trigger More Stock Selloffs. Look for a Buying Opportunity, J.P. Morgan Says. | Many market participants are comparing the coronavirus outbreak in China to the 2003 SARS epidemic. That isn’ t totally accurate, but the comparison suggests investors might find opportunities.
J.P. Morgan analysts Joyce Chang and Haibin Zhu say that, while the coronavirus is no doubt an unexpected risk factor for markets, there are important differences between it and the outbreak of severe acute respiratory syndrome ( SARS). Those differences so far suggest coronavirus isn’ t as big a risk as markets might fear.
First, Chang and Zhu say, the Chinese government has taken serious actions much faster this time. Second, the mortality rate of the coronavirus has been around 3%, compared with about 10% for SARS, and the majority of current casualties have been concentrated in elderly people with pre-existing conditions. And third, when the World Health Organization held an emergency meeting last week, it said it was too early to declare a public health emergency of international concern.
“ The fear factor has been high and can continue to drive down the market, ” Chang and Zhu say, and the average incubation period of seven days makes it hard to contain the outbreak. The transportation ( airlines, travel services) and “ offline consumption ” ( retail, travel, entertainment and liquor) sectors are most vulnerable, the analysts say, adding that “ the importance of a sentiment-driven decline in retail sales or travel can not be underestimated. ”
News on that front hit Wednesday, when American Airlines ( ticker: AAL) said it would suspend flights to Shanghai and Beijing from Los Angeles, citing a significant decline in demand for travel to and from China.
If the virus further intensifies, it could lead to more downside in the coming months. “ But a deeper correction could be an opportunity to rebound once the spread of the virus is contained, ” the analysts say, noting that past pandemics haven’ t typically led to sustained selling.
In addition to the 2003 SARS outbreak, they looked at the 2009 swine-flu epidemic, the 2014 Ebola outbreak and the 2016 spread of the Zika virus. Examining past epidemics, the more stocks initially fell, the more they subsequently rebounded, Chang and Zhu say. The episodes didn’ t lead to a prolonged period of selling, and emerged as buying opportunities within weeks, they say.
From start to peak, the SARS outbreak sent the MSCI China index down 8.6%, the analysts found. But by a month after peak, it rose 14.7% and gained 30.9% in the three months after peak. The Zika epidemic, meanwhile, sent the MSCI Brazil down 2% from start to peak, but that index rose 14.8% one month after peak and 35.4% three months after peak.
Chang and Zhu haven’ t revised their forecasts for China’ s growth. They estimate a 5.9% increase in gross domestic product this year. GDP rose 6% in the fourth quarter of 21019. And they are keeping an overweight recommendation on China equities within emerging-market equities. | business |
Researchers Are Racing to Make a Coronavirus Vaccine. Will It Help? | In the early days of January, as cases of a strange, pneumonia-like illness were reported in China, researchers at the National Institutes of Health in Maryland readied themselves to hunt for a vaccine to prevent the new disease.
They had clues that a coronavirus, similar to ones that caused the SARS outbreak in 2003 and MERS in 2012, was the culprit. Dr. Barney Graham, deputy director of the Vaccine Research Center at the N.I.H, urged government scientists in China to share the genetic makeup of the virus so his team could begin its race to develop a vaccine.
On Friday, Jan. 10, the Chinese scientists posted the information on a public database. The next morning, Dr. Graham’ s team was in the lab. And within hours, they had pinpointed the letters of the genetic code that could be used to make a vaccine.
Scientists in Australia and at least three companies — Johnson & Johnson, Moderna Therapeutics and Inovio Pharmaceuticals — are also working on vaccine candidates to stop the spread of the disease, which has infected about 6,000 people and killed more than 130.
“ Everybody is trying to move as quickly as possible, ” said Jacqueline Shea, the chief operating officer at Inovio.
Inovio received a grant of up to $ 9 million to develop a coronavirus vaccine from the Coalition for Epidemic Preparedness Innovations, a group whose aim is to speed vaccines to market. Moderna, which is working with Dr. Graham’ s team at the N.I.H., received a similar grant, as did researchers at the University of Queensland in Australia.
Historically, vaccines have been one of the greatest public health tools to prevent disease. But even as new technology, advancements in genomics and improved global coordination have allowed researchers to move at unprecedented speed, vaccine development remains an expensive and risky process. It takes months and even years because the vaccines must undergo extensive testing in animals and humans. In the best case, it takes at least a year — and most likely longer — for any vaccine to become available to the public.
“ They may not help in the very early stages of an outbreak, but if we’ re able to develop vaccines in time, they will be an asset later, ” said Richard Hatchett, the chief executive of the epidemic preparedness coalition.
With each new outbreak, scientists typically have to start from scratch. After the SARS outbreak in 2003, it took researchers about 20 months from the release of the viral genome to get a vaccine ready for human trials. By the time an epidemic caused by the Zika virus occurred in 2015, researchers had brought the timeline down to six months. Now, they hope the joint efforts will cut that time in half.
The morning after the Chinese scientists published their data earlier this month, Dr. Graham’ s team got to work checking the sequence and comparing it with what they already had for SARS and MERS. They wanted to focus on the spike protein, which forms the crown of the coronavirus and recognizes receptors, or entry points, on a host cell.
“ If you can block the spike protein from binding to a cell, then you’ ve effectively prevented an infection, ” said Kizzmekia Corbett, the scientific lead for Dr. Graham’ s coronavirus team.
Dr. Corbett and others had studied the spike proteins on SARS and MERS viruses in detail, using them to develop experimental vaccines. The vaccines never made it to market because SARS was successfully contained with public health measures before the vaccine was ready and preliminary human trials for the MERS vaccine showed success last year.
But the scientists had a method for developing vaccines that could help them fast-track production for the new coronavirus. They used the template for the SARS vaccine and swapped in just enough genetic code that would make it work for the new virus. “ I call it plug and play, ” Dr. Corbett said.
Within a few hours, Dr. Corbett was able to prepare the modified sequence that the researchers needed. On Tuesday, Jan. 14, the team held a conference call to discuss the next steps with collaborators in labs across the country, and sent off the sequence to Moderna.
Scientists at the company plan to use the genetic information to create synthetic messenger RNA, which carries instructions for cells’ protein-making machinery. The technology will help induce high levels of antibodies that can identify the spike protein and fight off an infection.
Once Moderna manufactures the messenger RNA in a few weeks, the N.I.H. will run more tests, Dr. Corbett said. Collaborators in academic labs will then test the vaccine in mice infected with the virus and check blood samples from the animals to see how well the experimental vaccine worked.
Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases at the N.I.H., who oversees Dr. Graham’ s team, said he expected the vaccine research to move quickly.
“ If we don’ t run into any unforeseen obstacles, we’ ll be able to get a Phase 1 trial going within the next three months, which will be record speed, ” he said, referring to early human trials that test for safety.
Other researchers are using different methods to develop their vaccines.
Inovio, which is also developing a vaccine for MERS, uses a DNA-based technology. Johnson & Johnson delivers vaccines through adenoviruses — which can cause coldlike symptoms but have been made harmless. And researchers at the University of Queensland are testing particles that mimic the structure of a virus.
Updated May 20, 2020
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
Over 38 million people have filed for unemployment since March. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $ 40,000 or less lost work, compared with 13 percent in those making more than $ 100,000, a Fed official said.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. ( Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
There is an uptick in people reporting symptoms of chilblains, which are painful red or purple lesions that typically appear in the winter on fingers or toes. The lesions are emerging as yet another symptom of infection with the new coronavirus. Chilblains are caused by inflammation in small blood vessels in reaction to cold or damp conditions, but they are usually common in the coldest winter months. Federal health officials do not include toe lesions in the list of coronavirus symptoms, but some dermatologists are pushing for a change, saying so-called Covid toe should be sufficient grounds for testing.
Yes, but make sure you keep six feet of distance between you and people who don’ t live in your home. Even if you just hang out in a park, rather than go for a jog or a walk, getting some fresh air, and hopefully sunshine, is a good idea.
Taking one’ s temperature to look for signs of fever is not as easy as it sounds, as “ normal ” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’ t have a thermometer ( they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’ t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’ t replace hand washing and social distancing.
If you’ ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’ re sick and you think you’ ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’ s a chance — because of a lack of testing kits or because you’ re asymptomatic, for instance — you won’ t be able to get tested.
Charity Navigator, which evaluates charities using a numbers-based system, has a running list of nonprofits working in communities affected by the outbreak. You can give blood through the American Red Cross, and World Central Kitchen has stepped in to distribute meals in major cities.
“ We don’ t know which vaccine approach will be successful at this stage, so we have to try everything in our arsenal, ” said Dr. Gregory Poland, a vaccine expert at the Mayo Clinic in Rochester, Minn.
In interviews, company executives said that partnerships with governments and philanthropic foundations were essential to developing vaccines for outbreaks because there are so many uncertainties.
Dr. Paul Stoffels, Johnson & Johnson’ s chief scientific officer, estimated it could take eight to 12 months before his company’ s vaccines reach human clinical trials. By then, it is possible the coronavirus outbreak will have been contained. Testing of Johnson & Johnson’ s Zika vaccine is currently halted, he said, because new outbreaks of the disease have slowed.
“ You have to be brave and you have to be a solid company to do this, because there is no real incentive to do this, no financial incentive, ” he said.
Stéphane Bancel, the chief executive of Moderna, said vaccines were necessary, even if an outbreak wanes, because it could always return. “ I think it’ s important to be prepared, ” he said.
Experts believe that the frequency of outbreaks will only increase because of climate change, urbanization and global travel, among other factors.
“ We probably need to start thinking about putting in a special infrastructure for coronavirus infections the same way we have for the flu, ” said Dr. Peter Hotez, who is co-director of the Texas Children’ s Hospital Center for Vaccine Development and was involved in the production of a SARS vaccine that may be repurposed for the new coronavirus. The detection and monitoring of infections, as well as the development of vaccines, will put an insurance policy in place for future outbreaks, he said.
“ We’ re just starting to realize that the power of vaccines goes way beyond public health, ” he said. “ They are also critical to the global economy and global security. ”
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Tesla Earnings Were So Good, It’ s Now a $ 600 Stock | Tesla earnings are always must-see TV on Wall Street. But they especially are this time around, after the company's unbelievable stock rally so far this year has pushed its market value past that of Ford, General Motors, and Volkswagen.
Tesla ( ticker: TSLA) reported $ 2.14 in per-share earnings from $ 7.4 billion in sales on Wednesday. Wall Street was looking for $ 1.77 a share from $ 7 billion in sales.
Obviously, earnings were pretty good. But are they good enough to appease Tesla bears? It’ s hard to say. The stock is destined to be volatile, no matter what earnings it reports. Tesla shares are, after all, up more than 80% over the past three months, crushing comparable gains of the Dow Jones Industrial Average and S & P 500 over the same span.
For now, Tesla shares are roaring higher in after-hours trading, up 6.8% to more than $ 620.
Investors interested in cutting through the noise should focus on four things: earnings, cash flow, profit margins, and deliveries.
As mentioned, earnings were better than expected. That’ s the first big positive.
Cash flow topped $ 1 billion in the fourth quarter. That’ s another positive. Coming into the quarter, Tesla had produced positive free cash flow in four of the last five quarters. Bondholders noticed, and Tesla bonds now trade above par. Tesla’ s non-investment-grade-rated bonds due in 2025, for instance, have rallied from about 87 cents on the dollar to more than 100 cents on the dollar over the past six months. Those bonds yield about 5%.
Total gross profit margin in the quarter came in at 18.8%. Baird analyst Ben Kallo modeled 17.1% gross profit margins for the fourth quarter. There might be some adjustments that affect comparability, but overall it looks like another thumbs-up for the electric-vehicle pioneer. ( Kallo, a longtime bull, recently downgraded shares to Hold. His price target is $ 525 a share.)
That’ s three in the plus column for Elon Musk’ s company. What about deliveries? Tesla says it will “ comfortably exceed 500,000 deliveries ” this year. Bank of America analyst John Murphy models about 520,000 vehicle sales for Tesla in 2020, up about 40% from the 367,000 sold in 2019. So it looks like delivery numbers will be good enough. Tesla appears to have gone four for four.
( Murphy, for his part, rates Tesla shares the equivalent of Sell and has a $ 350 price target.)
Tesla will host an earnings conference call at 6:30 p.m. ET. Analysts will have a chance to pepper management with questions about a range of topics, including the Model Y launch, Chinese Model 3 production, and if the Wuhan coronavirus will affect 2020 deliveries.
It was better-than-expected third-quarter earnings that kicked off the stock’ s rally a few months ago. The company had also launched its Cybertruck and started delivering Model 3 vehicles from its Chinese facility. The Shanghai plant produced cars less than a year after breaking ground.
Now the 2020 outlook may keep the rally going. | business |
Using an Anti-HIV Combination or Other Medical Drugs Could Combat the Coronavirus | Researchers are working hard to find a cure for the deadly, fast-spreading virus.
When an international and deadly disease or virus starts spreading rapidly, medical scientists and researchers jump to attention to find a cure.
The coronavirus that started in Wuhan, China, has already claimed over 100 lives, with the number of infected people increasing each day. Currently, over 5,000 people are infected in China alone.
Now, instead of trying to develop or find a novel vaccine or cure, scientists are turning towards pre-existing drugs, such as anti-HIV vaccines, to try and fight the coronavirus.
Currently, researchers are already attempting to use anti-virals that are typically used against HIV, hoping these will also eradicate the coronavirus.
China testing HIV drug as treatment for new coronavirus, AbbVie says https: //t.co/42B7gcWyEc pic.twitter.com/iok2QIS8lq
Other anti-viral drugs are being tested for the coronavirus — including one which was unsuccessful against the Ebola outbreak last year — could also be promising.
The Jin Yintan Hospital in Wuhan, China, where the first 41 patients with coronavirus were treated, is already trialing an anti-HIV combination of lopinavir and ritonavir, according to an article published on January 24 in the Lancet journal.
The head of China's disease and treatment laboratory has said a vaccine for the deadly coronavirus could be three months away.Read the latest on the # Coronavirus here: https: //t.co/Nb2Vjl1S00 pic.twitter.com/BnqXIMG0WE
The article stated that the anti-HIV combination held promise against the SARS outbreak in 2003, another respiratory virus that's part of the coronavirus strain.
Other drugs that were trialed against the MERS outbreak, which is a more distant section of the coronavirus, are also being tested and checked to see if they could be utilized against the Wuhan coronavirus.
Developments of entirely new treatments are also underway. Regeneron Pharmaceuticals, for instance, is looking into identifying antibodies that could work against the coronavirus. Regeneron only took six months to develop candidate treatments and to test them in animals during the Ebola outbreak.
I spent years developing an # Ebola treatment. From the outset, I have been VERY concerned about this new # coronavirus that originated in # China ( now is in the U.S. and elsewhere). THREAD with my insights about the # CoronavirusOutbreak, and what you can do to protect yourself.👇🏼 https: //t.co/OqK3a176xh
Ultimately, the company tested a concoction of antibodies, which reduced the Ebola mortality rate by 94% when taken soon after contracting the virus.
Hopefully, either Regeneron or other companies and researchers will find the correct mixture to treat the Wuhan coronavirus sooner rather than later.
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By subscribing, you agree to our Terms of Use and Privacy Policy. You may unsubscribe at any time. | tech |
Track the coronavirus on a real-time map |
The number of
novel coronavirus cases
is changing quickly. A real-time tracking map shows us just
how
quickly.
The map
from Johns Hopkins University's Center for Systems Science and Engineering follows
coronavirus cases across the world
.
The dashboard collects data from the US Centers for Disease Control and Prevention, the World Health Organization, the European Centre for Disease Prevention and Control, the Chinese Center for Disease Control and Prevention and the Chinese website DXY, which aggregates data from China's National Health Commission and the CCDC. The results populate a worldwide view of coronavirus cases in real time.
See the map here
The coronavirus case map updates in real time as global health agencies confirm more cases.
The clickable map pinpoints regions where patients have been diagnosed with coronavirus -- the more cases in a region, the larger its dot on the map ( right now, the largest dot belongs to the Hubei Province, where the outbreak originated).
Read More
The map tracks deaths, too, in total and by city.
This is where Wuhan coronavirus cases have been confirmed worldwide
Lauren Gardner, director of the Center for Systems Science and Engineering and a civil engineering professor at Johns Hopkins, said the map isn't just a resource for the public -- health officials can download the data, which will inform research on the coronavirus in the future.
`` We built this dashboard because we think it is important for the public to have an understanding of the outbreak situation as it unfolds with transparent data sources, '' she
said
. `` For the research community, this data will become more valuable as we continue to collect it over time. ''
The dashboard also puts the outbreak into perspective: There are already more than 6,000 confirmed cases in mainland China and fewer than 100 everywhere else in the world.
The CDC regularly updates its
map of confirmed coronavirus cases
, too, though it shows cases by country rather than by region or city. | general |
Watching bat coronaviruses with next-generation sequencing: A targeted NGS approach may help track the viruses behind dangerous outbreaks -- ScienceDaily | To monitor how viruses like this one spread and evolve in animal populations, researchers have been using next-generation sequencing ( NGS). However, routine and large-scale surveillance with NGS can be both costly and laborious. It can also miss less abundant viral markers in the host sample. These challenges have driven geneticists to develop NGS-based strategies that are less expensive and more efficient.
This week in mSphere, a journal of the American Society for Microbiology, an international group of researchers describe how to use enrichment -- one such emerging NGS strategy -- for monitoring coronaviruses, especially those that originate in bats. The NGS is `` enriched '' with probes ( or baits), which are tiny fragments of genetic material that find and bind to the viral DNA. These probes suggest a quick way to identify where the viral genetic material might be hiding.
In test sets of clinical samples, the probes successfully identified coronaviruses, and the researchers reported that their approach both increased sensitivity and reduced sequencing costs.
`` We don't want to declare that enrichment is the panacea for all NGS challenges, but in this case, I do think it's a step in the right direction, '' said Lin-Fa Wang, Ph.D., who directs the Programme in Emerging Infectious Diseases at Duke-NUS Medical School, in Singapore. Wang led the study with Peng Zhou, Ph.D., a virologist at the Chinese Academy of Science's Center for Biosafety Mega-Science in Wuhan, China.
Coronaviruses in bats, says Wang, are particularly important to monitor. Many researchers believe that these viruses have the potential to infect other animal populations -- and even people. The coronavirus that caused 2003's deadly outbreak of SARS, or severe acute respiratory syndrome, is closely related to those found in bats and likely originated with the animals. The same is true of the viruses behind a mysterious January 2020 outbreak in Wuhan, China, and the 2018 outbreak of swine acute diarrhea syndrome, or SADS. Bats are also known reservoirs of the Ebola virus, Marburg virus, Nipah virus, and Hendra virus, even though they usually don't exhibit symptoms.
`` Coronaviruses, especially those that are bat-borne, remain an important source of emerging infectious diseases, '' Wang said. During times that are free of outbreaks, or what Wang calls `` peace time, '' researchers can build up-to-date banks of probes associated with known forms of coronaviruses. During outbreaks, or `` war time, '' they can use that information to track the evolution of viruses and spread of infections, in animal and even human populations.
One challenge of using enriched NGS is that `` you only find the viruses you know, '' Wang said. That's because the probes used to flag the viruses in the host sample genome are derived from previously identified sequences. However, the bat coronavirus, like all viruses, is constantly changing. If this approach is going to be useful for surveillance and tracking outbreaks, Wang said, then the probe library will need frequent updates.
`` To really have enrichment NGS be successful, '' Wang said, `` we need to treat our probe library as a living library. This will be an ongoing pursuit for us. '' He's optimistic that the work will pay off.
For more information on the new strain of coronavirus, visit ASM's Novel Coronavirus ( 2019-nCoV) Resources page: https: //www.asm.org/Press-Releases/2020/nCoV2019-Resources | science |
Boris Johnson’ s Chinese hospital challenge | In response to the country’ s coronavirus outbreak China began constructing the new 1,000-bed Wuhan Huoshenshan hospital in late January with the aim of opening by 5 February ( Report, 29 January). Will Boris Johnson use the same rapid response to realise his election promise to build 40 new hospitals in the UK? Sam WhiteLewes, East Sussex
• My computer keeps throwing advertisements for “ The last wallet you will ever need ” at me. I don’ t know if this refers to its ( or my own) potential lifespan, or is a terrible prediction regarding the consequences of Brexit.Jeremy MuldowneyYork
• When teaching in north London in the late 1960s, one day I was approached by a colleague, a recently appointed English teacher from New York. He had just broken up a fight, and when he asked the reason for it was told that one of the boys had been called “ a tosser ”. My colleague responded by saying “ if there’ s any tossing going on here, it’ s going to be by me ”. He wanted to know why the whole class fell about laughing.John KempCheltenham, Gloucestershire
• My 82-year-old husband is also making marmalade this week ( Letters, passim). Can we start an octogenarian Guardian readers marmalade-making club? Sharing tips would be useful.Anne TitleyKington, Herefordshire
• I don’ t like marmalade. How should I occupy myself in my declining years? Anne CowperLlandeilo Ferwallt, Gower
• Join the debate – email guardian.letters @ theguardian.com
• Read more Guardian letters – click here to visit gu.com/letters
• Do you have a photo you’ d like to share with Guardian readers? Click here to upload it and we’ ll publish the best submissions in the letters spread of our print edition | general |
A new treatment strategy against MERS: Licensed drugs effective in cells -- ScienceDaily | The MERS pathogen is capable of causing a flu-like illness ( Middle East Respiratory Syndrome) which is often associated with pneumonia. Since its appearance in 2012, approximately 2,500 cases have been reported to the WHO across a total of 27 countries. Approximately one third of infections have resulted in death. A team co-led by PD Dr. Marcel Müller of the Institute of Virology on Campus Charité Mitte recently discovered that the MERS virus can only replicate efficiently if it inhibits a cellular process known as autophagy. Based on this initial discovery, the researchers went on to identify substances which are capable of inducing autophagy and can thus be used to limit viral infection.
The term autophagy refers to a type of cellular recycling process which enables cells to dispose of damaged materials and waste products, while retaining intact components for incorporation into new cellular structures. This autophagic degradation, or 'auto-digestion ', is also capable of identifying pathogen-derived components, such as the building blocks of viruses, which are treated as waste products and eliminated. A range of viruses are known to have developed strategies to dysregulate or inhibit autophagy. PD Dr. Müller and his colleagues therefore set out to determine whether the MERS virus is capable of modulating autophagic degradation. As a first step, and using stringent biosafety conditions, the researchers infected cells with the MERS virus. Subsequent observations revealed a disruption to the cellular recycling process in cells infected with the virus. `` This result clearly indicated that the MERS pathogen benefits from an attenuation of the cellular recycling process, '' explains PD Dr. Müller.
The researchers also succeeded in identifying a previously unknown molecular switch which regulates the process of autophagic degradation: the SKP2 protein. The researchers discovered that the MERS virus activates this molecular switch in order to slow down the cell's recycling processes and avoid degradation. Using these new insights, the researchers treated MERS-infected cells with various SKP2 inhibitors in order to stimulate the degradation process. This strategy proved successful, the autophagy-inhibiting substances reducing viral replication by a factor of 28,000. Among the substances used to elicit this effect were licensed drugs such as niclosamide, a treatment for tapeworms which had previously been identified as an SKP2 inhibitor. Importantly, niclosamide was shown to be capable of drastically reducing the replication of the MERS virus in cell culture.
`` Our results reveal SKP2 to be a promising starting point for the development of new substances capable of fighting the MERS virus, and potentially even other autophagy-dependent viruses, '' says PD Dr. Müller. SKP2 inhibitors do not target the virus directly. For this reason, the research group leader expects their use to be associated with a reduced risk of resistance. `` However, SKP2 inhibitors will need to be tested in vivo before they can be used as drugs. Furthermore, one has to properly evaluate the risks and benefits for their in vivo use, since even drugs that have already been approved can have side effects, '' says the virologist. The researchers will also test whether SKP2 inhibitors could be effective against other coronaviruses such as SARS or the novel coronavirus ( 2019-nCoV) which is currently emerging in China. | science |
Foreigners Airlifted From Chinese City at Heart of Coronavirus Outbreak | LOS ANGELES — About 200 Americans evacuated from Wuhan, China, landed at a military base in Southern California on Wednesday, as countries around the world began pulling their citizens from the epicenter of the coronavirus outbreak.
“ The whole plane erupted in cheers when the crew said, ‘ Welcome home to the United States,’ ” said Dr. Anne Zink, the chief medical officer for Alaska, where the plane stopped en route to California.
But “ home ” was not immediately in the cards for the evacuees.
Upon landing at the March Air Reserve Base in Riverside, the passengers were met on the tarmac by personnel in biohazard suits, loaded onto waiting buses and instructed to remain on the base for three days of medical screening. Only when they are cleared will they be allowed to continue on home.
The authorities, however, were at pains to to say it was not a quarantine.
“ We are respecting the rights of them as individuals, ” said Dr. Nancy Knight, a senior official with the federal Centers for Disease Control and Prevention. “ We are doing that in a way that protects their health, the health of uniformed service members and the health of the community. ”
The passengers, mostly American consular officials and their families, returned to the United States as the coronavirus continued to spread around the globe, with the number of cases spiking dramatically and two major airlines canceling all flights to and from China.
By early Thursday, there were confirmed reports of infection in at least 16 countries, with more than 7,700 cases in China alone — topping the SARS outbreak there in 2002 and 2003. The official death toll there stood at 170, but the real number is believed to be much higher. On Thursday, the World Health Organization will again take up the question of whether to declare a global health emergency.
The virus has sickened tens of thousands of people in China and a number of other countries.
As governments around the world struggle to detect and prevent infection, it was clear on Wednesday that there was no international consensus on the best way to proceed.
However carefully the health authorities chose their words, the evacuees in the United States, for example, appeared to be, for all practical purposes, quarantined. They will also be monitored for 14 days by medical teams in their own communities when they go home.
In Australia, Prime Minister Scott Morrison said citizens evacuated from Wuhan would be held for a two-week quarantine on Christmas Island, also the site of an Australian immigration detention center.
And South Korea’ s National Police Agency said that it had instructed its officers that they have the power to detain people who are suspected of carrying the coronavirus and refuse to be quarantined.
But other countries were taking a less strict approach.
Japan, for example, also evacuated citizens from China, but acquiesced when two evacuees who did not have symptoms declined to see a doctor. A third evacuee who did show symptoms was allowed to wait for test results at home.
As it spreads globally, the new coronavirus, which was first discovered in China last month, has begun to infect people who never visited China. Some have fallen ill in Germany, Japan, Taiwan and Vietnam.
“ We’ ve seen it spread between people in Wuhan, in other parts of China, and now these countries, ” said Benjamin Cowling, a professor of epidemiology at the University of Hong Kong.
“ What we don’ t know is how quickly it spreads, ” Dr. Cowling said. “ We’ ve seen small clusters, but we don’ t know if those turn into chains of transmission that grow from two to four to eight to 16 — or if it can be controlled and won’ t be further transmitted. ”
As countries evacuated their citizens from Wuhan — among them France, South Korea, Morocco, Germany, Kazakhstan, Britain, Canada, Russia, the Netherlands and Myanmar — commercial airlines curtailed service to China. British Airways and Air Canada suspended flights altogether.
The Americans who were repatriated on Wednesday landed at the air base shortly after 8 a.m. after the State Department-chartered flight stopped in Anchorage to refuel and for the passengers to be screened — twice — for the virus.
At a news conference later in Riverside, Christopher R. Braden, a deputy director of the disease control centers, said the Americans would be “ fully evaluated. ”
“ We think we can do the full evaluation in three days, ” Dr. Braden said. “ Some of that evaluation is taking tests and flying samples to the C.D.C. in Atlanta. ” The agency has the country’ s only laboratory that can test for the coronavirus.
At a raucous, packed news conference, Dr. Braden and Dr. Knight were peppered with questions about the wisdom of releasing the former Wuhan residents into communities across the country.
Dr. Braden said that if an evacuee deemed a danger to the community insisted on leaving before the 72-hour period expired, “ we can institute an individual quarantine for that person — and we will. ”
But he also said there was no indication that anyone wanted to leave right away.
Some Americans remained stranded in Wuhan, unable to secure a seat on the plane. Family members were incensed to learn that the Boeing 747 had taken off with empty seats. Some passengers lacked the proper documentation, and others did not show up, Dr. Braden said. In the end, around 200 passengers were evacuated, not the expected 240, he said.
“ I don’ t even know what to say to those numbers, ” said Jiacheng Yu of Dallas, whose mother, Ying Cheng, a 61-year-old American citizen, was visiting her own mother in Wuhan for the Lunar New Year and could not get a seat.
When asked whether other flights were planned, a State Department official said its embassy in Beijing “ continues to work with the Chinese authorities on other options for U.S. citizens in Wuhan to depart Wuhan and/or China. ”
At least one American chose not to try to board Wednesday’ s flight. Winifred Conrad, a 27-year-old English teacher, had a lingering cough and was afraid she would instead be handed over to Chinese officials, said her mother, Anastasia Coles of Lubbock, Texas.
But there was another reason: Ms. Conrad’ s cat, Lulu.
In text message to her mother, she said: “ Don’ t freak out. I was offered a seat and I surrendered it to a 10-year-old girl. ” She added, “ I was told I can’ t bring an animal. ”
The number of confirmed cases in China increased by nearly 30 percent from Wednesday to Thursday, according to the country’ s National Health Commission.
The Chinese health authorities said Thursday that 170 people had died from the virus in the country. The previous count, on Wednesday, was 132.
Updated June 12, 2020
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “ very rare, ” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’ s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’ s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “ start at no more than 50 percent of the exercise you were doing before Covid, ” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “ When you haven’ t been exercising, you lose muscle mass. ” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’ t being told to stay at home, it’ s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. ( Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’ s temperature to look for signs of fever is not as easy as it sounds, as “ normal ” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’ t have a thermometer ( they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’ t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’ t replace hand washing and social distancing.
If you’ ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’ re sick and you think you’ ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’ s a chance — because of a lack of testing kits or because you’ re asymptomatic, for instance — you won’ t be able to get tested.
Wang Xiaodong, the governor of Hubei, the home of province of Wuhan, said Wednesday evening that the fight against the virus was at a crucial point, and that medical supplies were severely insufficient.
As cases emerged outside China, some appeared to involve infections between family members, who are at greater risk while caring for sick relatives. Others, however, appear to have spread between people with less intimate connections.
A Japanese tour bus driver in his 60s who had driven two tour groups visiting Japan from Wuhan was confirmed to have the virus, officials said on Tuesday. He had no history of traveling to Wuhan.
“ I think what that says is, if we can get transmission in such a setting, then we can certainly get it in the waiting room of a clinic or a hospital, ” said Dr. Arthur Reingold, a professor of epidemiology at the University of California, Berkeley. “ That’ s very concerning. ”
On Tuesday, German officials said a 33-year-old man from Starnberg, a town near Munich, was apparently infected with the virus after attending a training event with a Chinese colleague on Jan. 21. The colleague flew home two days later. The German man was being treated in isolation and officials were tracing people who had been in contact with him.
Late Tuesday, health officials in Germany said three more people from the same company had also been infected. They were admitted to a clinic in Munich, where they, too, were to be isolated. Forty other people who came into close contact with the company employees were to be tested on Wednesday, officials said.
The outbreak and the travel restrictions it has led to have already had a big impact on businesses, some of which are temporarily halting operations in parts of China.
Starbucks, for example, said it was temporarily closing half of its stores in the country. Closing were also announced by McDonald’ s and Yum China, which operates the KFC, Pizza Hut and Taco Bell brands in China.
And Apple said the outbreak could disrupt suppliers and its revenues.
Miriam Jordan reported from Los Angeles, and Austin Ramzy from Hong Kong. Reporting was contributed by Russell Goldman from Hong Kong; Motoko Rich, Makiko Inoue and Eimi Yamamitsu from Tokyo; and Choe Sang-Hun from Seoul, South Korea.
| business |
Santander buoys European shares but coronavirus fears persist | Spain's IBEX led regional bourses, lifted by a 4.4% rise in Santander after the lender posted a higher quarterly net profit, boosted by solid underlying performance in its main market Brazil and capital gains.
Along with a rally in Swedish banking group SEB, which topped fourth-quarter earnings, the euro zone banks index <.SX7E > climbed 1%.
Boeing supplier Safran was also a major boost to the pan-region index after the planemaker's shares rose despite a surprise annual loss with analysts saying much of the bad news had been priced in..
After a recovery day on Tuesday, the pan-European STOXX 600 and most major country indexes traded not more than half a percent higher as sentiment still remained subdued on worries over the economic damage from the flu-like virus that originated in China.
The STOXX 600 shed nearly 3% on Monday as outbreak fears gripped markets. The virus has claimed 133 lives so far and infected more than 5,000 people in China, prompting a Chinese government economist to warn that the country's economic growth may drop to 5% or even lower.
`` You 've got the tension between what investors would like to do - keep pouring into equities, there is a great appetite to keep pushing these indices higher - but there keeps being these big global problems that keep forcing investors to have to question and justify a rebound when there is no reason to do so, '' said Connor Campbell, analyst at British financial spread better Spreadex.
German shares lagged regional peers, closing up 0.2% after dipping into the red during the session. China is Germany's most important trading partner.
Germany's economy minister raised the economic growth outlook for the country but cut expectations for 2021.
British shares closed flat as a slip in oil prices weighed on oil majors.
LVMH, Louis Vuitton owner, was one of the biggest drags on the STOXX 600 as slowing sales growth in the fourth quarter dented shares. Luxury stocks, which derive a chunk of their demand from China, had attempted a recovery on Tuesday.
Investor attention now turns to central bank meetings from around the world. The U.S. Federal Reserve is almost certain to keep interest rates on hold at the end of a two-day policy meeting later in the day, while expectations of a rate cut by the Bank of England on Thursday stand at 50%.
Friday will mark the UK's official departure from the European Union.
By Susan Mathew and Medha Singh | business |
Coronavirus impact on air travel a concern, Boeing CFO says | Boeing raised concerns on Wednesday about the spread of coronavirus, as the rising number of infections prompts airlines to cut back service to China, where most of the cases are concentrated.
More than 6,150 people have been infected by the flu-like virus and more than 130 people in China have died from it, authorities said.
Big companies, from Apple to Ford to Kraft Heinz, have restricted their employees ' China business travel or scaled back operations because of the virus. Airlines have said they have seen a sharp drop in demand to the country as the outbreak grows.
The virus is spreading as the pace of global air traffic growth has begun to moderate.
November traffic growth rose 3.3% from a year earlier, the International Air Transport Association, or IATA, reported earlier this month. `` November's moderate result reflects the continuing influence of slower economic activity, geopolitical tensions and other disruptions, including strikes in Europe, '' said the director-general of the trade group, which represents most of the world's airlines.
Boeing CFO Greg Smith noted in a call with analysts Wednesday the moderation in air traffic growth and said the `` impact of the coronavirus on near-term traffic growth is clearly a watch item this year. ''
China has becoming increasingly important to carriers and airplane manufacturers such as Boeing and Airbus. The country is expected to replace the U.S. as the largest market for air travel by the middle of this decade, according to IATA. | business |
Fed meeting live updates: Powell says he's not trying to boost stocks, comments on coronavirus | ( This is a live blog. Check back for updates.)
`` The fact that we 've reached a 'phase one ' deal with China, and the fact that we 've moved ahead closer to getting USMCA agreed... those are potentially positive things for the economy. Without question. The reaction of financial markets is very consistent with that perception. A sustained reduction in uncertainty over time should improve business sentiment and investment, which would provide some additional support for the economy. It's important, though too, to bear in mind a couple things. First, trade policy uncertainty remains elevated: Businesses continue to identify it as an ongoing risk. We still have two or even three active trade discussions that are going on in the public square right now. So it hasn't gone away. '' - Franck
`` It's a very serious issue and I want to start by acknowledging the significant and considerable human suffering that the virus is already causing. There is likely to be some disruption to activity in China and possibly globally based on the spread of the virus to date and the travel restrictions and business closures that have already been imposed. Of course the situation is really in its early stages and its very uncertain about how much it will spread and what the macroeconomic effects would be in China and its immediate trading partners and neighbors and around the world. In light of that uncertainty I 'm not going to speculate about it at this point... We are very carefully minoring the situation... our framework, ultimately, is what are the potential ramifications for the U.S. economy and for the achievement of our duel mandate. '' -Fitzgerald
`` It's a bit surprising that with sustained levels of historically low unemployment, we haven't seen wages moving up above that level as we have in other long expansions and other periods of low unemployment. '' -Sheetz
`` Labor market continues to perform well... we see strong job creation, we see low unemployment, very importantly we see labor force participation continuing to move up. '' -Sheetz
Powell to question asked by CNBC's Steve Liesman:
`` In terms of what affects markets, I think many things affect markets. It's very hard to say with any precision at any time what is affecting markets. What I can tell you is that you know what our intention is: It is to return reserve to an ample level. We expect that to happen during the second quarter and our plan, as we do that, is as those purchases get to that level we believe we can gradually reduce them and we believe we can also gradually reduce repo as we reach an ample level. '' -Franck
Powell: `` Over the first half of this year we intend to adjust the size and pricing of repo operations as we transition away from their active use in supplying reserves. This process will take place gradually... we expect to continue offering repos at least through April. '' - Sheetz
`` Some of the uncertainties around trade have diminished recently and there are some signs that global growth may be stabilizing after declining since mid-2018, '' Powell said. `` Nonetheless, uncertainties about the outlook remain, including those posed by the new coronavirus. '' - Franck
Follow for market-moving updates here.
The Fed also refrained in its statement from commenting on the illness than began in Wuhan, China, but investors awaited Chair Powell's press conference at 2:30 pm ET for color on what the central bank is monitoring with respect to the disease.
The Federal Reserve's foray into the repo market will continue through at least April. Following its two-day meeting Wednesday, the central bank said its efforts to stabilize the market where banks get their short-term financing will extend at least another three months. The Fed in December said it would continue repo through January. — Cox
The decision was `` nothing '' says John Briggs of NatWest about the Fed's statement. `` You're going to have to wait for the press conference and questions about bills QE. ''
Peter Boockvar, chief investment officer at Bleakley Advisory Group, says the statement was `` about identical to the one issued in December. ''
`` Bottom line, the Fed's balance sheet expansion seems on auto pilot thru at least April as stated and we 'll see what offset maturing MBS and repo will be. The Treasury market didn't respond, '' he added.
Stocks ticked higher immediately following the decision, with the Dow last seen up 160 points, S & P 500 adds 0.43%.
The benchmark 10-year Treasury note yield, which moves inversely to price, fell two basis points to around 1.611%, while the yield on the 30-year Treasury bond was also lower at around 2.067%.
The Fed downgraded its categorization of American household spending to `` moderate '' from its previous `` strong '' and continued to cast business fixed investment and exports as `` weak. ''
Though the Fed kept its benchmark rate steady, it did tweak interest it pays on funds stored at the central bank. It boosted the interest on excess reserves rate 5 basis points to 1.6% in what officials categorized as a mostly technical move.
Fed members voted to leave interest rates unchanged, a move widely expected by investors and economists across Wall Street.
`` The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective, '' the Fed's statement read.
Wall Street expects the Fed to leave its key responsibility — interest rates — unchanged at its first regular meeting of 2020. The central bank, which tries to maximize U.S. employment and keep prices throughout the economy tame, has made it clear in prior meetings that it won't adjust borrowing costs unless it sees a meaningful and sustained uptick in inflation. Chairman Jerome Powell will answer questions from journalists at 2:30 pm ET. Powell, in perhaps the most interesting part of the Fed's comments today, could be asked to comment on topics ranging from the coronavirus to the size of the Fed's balance sheet.
Markets were calm heading into the decision with the Dow up 0.5% ( 155 points) and the S & P 500 adding about 0.4%. The 10-year Treasury note yield held above multimonth lows around 1.617%.
— CNBC's Jeff Cox and Michael Sheetz contributed reporting. | business |
Libya's war explained: Khalifa Haftar, oil cuts, UAE airstrikes and Russian mercenaries | Libya has seen its oil production slashed by 75% in just one week as warring factions within the country attempt to use the key commodity to seize control.
Output from Africa's third-largest oil producer has plummeted from around 1.2 million barrels per day ( bpd) to just over 320,000 bpd, its state oil company said — an estimated loss of $ 256 million in revenue.
That's thanks to pipeline closures and blockades of export terminals last week by rebel groups under the command of rogue general Khalifa Haftar, whose militias are battling the U.N.-recognized Government of National Accord ( GNA) in Tripoli to take control of the Libyan capital. Fighting in Libya resurged over the weekend, torching a cease-fire brokered by Russia and Turkey in early January.
The move is a power play for Haftar, the charismatic leader whose fleet of Libyan militia groups, collectively known as the Libyan National Army ( LNA), launched an assault on Tripoli last April that's taken thousands of lives and displaced more than 140,000 people. The rabidly anti-Islamist Haftar is seen as the strongest power player within Libya — whose nearly decade-long conflict now involves several international powers — and his militias control the country's east and much of its south. The east is home to the lion's share of Libya's oil facilities.
The output drop in the OPEC state sent the price of Brent crude spiking last week and could be devastating for the Libyan economy. But regional analysts are calling it a quick leverage grab and questioning how long it will last, while noting that ample global crude supply and fears over China's coronavirus are keeping a heavy lid on oil prices.
The 76-year-old commander, who is credited with a major role in defeating Islamic State militants in 2016 alongside U.S. airstrikes, also happens to be an American passport holder. A rival of longtime Libyan dictator Moammar Gadhafi, Haftar lived in the Virginia suburbs for several years while working as a CIA asset to plot against the former leader. After the Arab Spring, he apparently spent several years back in Virginia to `` enjoy his grandchildren, '' he told the New Yorker Magazine in a 2015 interview.
So Haftar poses a massive headache for the U.S. A former ally, they can't exactly sideline him; but his violent assault for power stands in the way of a democratic Libya that Washington had hoped for after its NATO intervention helped topple Gadhafi in 2011 during the Arab Spring.
Nine years after a U.S.-led coalition toppled Gadhafi, Libya remains a fractured state, ravaged by civil war and terrorism. And a vast array of competing foreign interests have entered the Libyan arena, including Turkey, Russia, Qatar, France, Italy, the United Arab Emirates and Egypt. The lack of stability and outside influence has led some to call it the new Syria.
Russia has deployed a few hundred mercenaries from the paramilitary Wagner Group and others into the country to back up Haftar, while Turkey has sent in a few hundred military advisors to support the GNA. The UAE is carrying out airstrikes in Libya, also to help Haftar.
`` We want to avoid Libya becoming the scene of proxy wars, '' German Foreign Minister Heiko Maas said in early January. `` Libya can not become a second Syria and so we need rapidly to enter a political process, an agreement on an effective cease-fire and an arms embargo. ''
The major players don't seem to be listening. Haftar is now directing renewed fighting in Libya's west after a German-brokered conference in Berlin last week ended with external nations calling for a cease-fire and pledging to end their interference in the war-torn country of 6.4 million. The meeting concluded with Hafter storming out before making any agreements, and Haftar and GNA Prime Minister Fayez al-Serraj refused to be in the same room.
With fresh violence and foreign fighters spilling into the country in the last week alone, the pledges of non-involvement appear to be falling apart.
Libya has become a near free-for-all for competing international powers: myriad countries are backing the disparate groups fighting on the ground to further their own ideological and financial interests.
Turkey, and to a lesser extent Qatar and Italy, support the U.N.-backed GNA — to the extent that Turkey earlier this month began deploying its own advisory troops to the country at Tripoli's request. Turkish President Recep Tayyip Erdogan has also flown some 2,000 mercenary fighters into Libya from the Syrian conflict, which are known to include radical Islamists, to combat Haftar's forces. Turkey's support, analysts say, is tied to Ankara's desire for access to Eastern Mediterranean gas drilling.
`` Because Berlin didn't manage to declare a ceasefire or deliver any substantive result, what seems to be happening is Erdogan has every intention to increase that number ( of mercenaries) to way beyond 2,000, '' Jalel Harchaoui, a Libya expert at The Netherlands Institute of International Relations, told CNBC via phone.
Meanwhile the United Arab Emirates, Egypt, France and more recently Russia back Haftar. The UAE and Egypt oppose the GNA — which they see as a hotbed of Islamism and Muslim Brotherhood affiliates, something that's anathema to their own governments — and have sent weapons and special forces troops to support Haftar's fighters. Experts name the UAE as the most powerful foreign player in the country. In early 2017, Russian mercenaries began appearing in Libya to support Haftar as well, mostly in logistical, support and intelligence roles.
For Russia, the move is viewed as a continuation of Moscow's expansion and leverage over diplomatic channels in the Middle East and Africa.
`` Libya was always looked at ( by Moscow) as the perfect passageway to Africa, '' Harchaoui said. `` Russia is interested in any mechanism that allows it to undermine NATO and promote disunity within European bloc… Libya is perfect. ''
The UAE in recent years has violated U.S. arms embargoes, delivering planeloads of weapons to Haftar's fighters. But with increasingly close relations between Abu Dhabi and the Trump administration, Washington has so far declined to openly rebuke the Emiratis. The UAE foreign ministry did not reply to a CNBC request for comment.
Over the weekend, the U.N. mission to Libya rebuked the `` continued blatant violations '' of an arms embargo by countries present at the Berlin peace talks.
Representatives from all parties are expected to meet in Geneva for further talks, though the date is undecided and regional experts have little faith in the situation improving.
So far, peace talk efforts `` haven't translated into anything at all, '' Harchaoui said, stressing the fact that more than 2.2 million civilians are currently living under assault.
For the myriad foreign actors in Libya, `` you think that the war should continue because your preferred actor hasn't won yet, '' Harchaoui said. `` And you continue believing in the benefits of brutality, that if the other side is escalating, then you should escalate too, and you should get it done. '' | business |
Dollar holds gains as investors assess damage from Chinese virus | The dollar held near two-month highs on Wednesday and other currencies seen as safe havens stabilized as investors regained their composure after an outbreak of coronavirus in China, awaiting more news on possible economic damage.
The dollar's strong showing this week, helped by the relatively positive performance of the U.S. economy, has underlined its safe-haven credentials.
The dollar index was last up 0.07% at 98.15, while the euro was down 0.15% versus the U.S. currency at $ 1.1003, not far from its weakest since early Nov. 29.
The greenback is now up 1.8% against a basket of major currencies so far in 2020, ahead of a Federal Reserve meeting later on Wednesday.
The Federal Reserve help interest rates steady on Wednesday at the FOMC meeting, but investors will want to hear whether chairman Jerome Powell retains his cautiously upbeat language.
ING analysts said that with the market already pricing in another 25 basis point rate cut from the Fed in 2020, the U.S. currency looked like it would hold recent gains.
`` With dovish pricing already in place, the bar for a dollar decline vs low yielding currencies such as JPY or EUR remains high, '' they wrote in a research note.
The yen, which jumped earlier this week as investors bought into a currency considered a safe store of value in times of stress, traded at 109.10 yen per dollar, up marginally on the day.
The Swiss franc rallied 0.1% to 1.0713 francs per euro but was some way off Tuesday's high of 1.0666.
`` The dollar is the outperformer and illustrates in an impressive manner who is the ultimate safe haven in the FX universe — regardless of whether that is justified or not, '' Commerzbank analyst Antje Praefcke said.
The newly identified coronavirus has created alarm because it is spreading quickly and there is little known about it. The death toll rose sharply to 132 on Wednesday, with nearly 1,500 new cases identified for a total of nearly 6,000.
But there was evidence that investors were becoming more relaxed. The offshore yuan — heavily sold in recent days — was marginally stronger at 6.9605 per dollar, off Monday's 6.9900, its weakest in almost a month.
Sterling fell 0.1% to $ 1.3020 ahead of a Bank of England meeting on Thursday. Investors are divided as to whether it will cut rates.
Australia's dollar cemented its rebound from 3-1/2 month lows after firmer-than-expected inflation data. The Aussie was last unchanged on the day at $ 0.6761. | business |
Reinventing the Consumer Products Supply Chain |
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Some companies are avoiding the looming margins crunch by taking a new approach to supply chains.
By Allard Vegter, Thomas Kwasniok, Adam Borchert and Drew Woodhouse
Consumer goods companies face tremendous disorder. Their consumers are evolving fast, seeking greater convenience, demanding sustainable goods, embracing insurgent brands and private labels. Consumers want more from brands: transparency, traceability, and goods that support their well-being and are customized enough that those products seem to have been made just for them. Their retail customers have evolved, too. They’ re grappling with tectonic shifts caused by the surging growth of e-commerce and the prevalence of everyday value. As a result, they fiercely negotiate to maintain already razor-thin margins.
Looking ahead, the traditional value chain in which consumer products companies manufacture goods that retailers sell to consumers could be further turned on its head. Retailers are already moving up and down the value chain, into territory they once actively avoided. Grocers now own manufacturing facilities and have access to world-class comanufacturers to produce sophisticated private labels masquerading as insurgents. They operate farms to grow their own fresh offerings. Also, new channels and intermediaries are emerging at breakneck pace. There’ s more competition from direct-to-consumer models and food delivery, for example, and channel fragmentation has enabled consumers to purchase products at their point of need, whether that’ s the gym, a hotel or—coming soon—on the street with drone delivery.
This squeeze from both consumers and retailers can take a huge toll on brands that don’ t act quickly. Bain & Company estimates consumer goods companies that fail to take adequate steps could lose as much as 30% of their margins by 2030 ( see the Bain Brief “ Overcoming the Existential Crisis in Consumer Goods ”).
In many cases, margins are being eroded by rising supply-chain costs. Those costs mount as companies have to serve more channels with distinct requirements, meet retailers’ demands for better service, address consumers’ growing preference for customized products and provide a broader portfolio of channel-specific packaging. In the US, half of those diminishing margins could result from rising supply chain costs. By comparison, only one-sixth of the margin drop will be from the cost pressures of retailer consolidation and one-third from smarter and tougher negotiations ( see Figure 1).
Trouble is, few consumer goods companies have built supply chains that will give them a competitive edge in an era of rising costs and rapid technological advancement. Yet those that reinvent their supply chains are reaping the rewards: improvements in efficiency, reliability, agility and velocity that boost margins by 5 to 10 percentage points ( see Figure 2). Consider the case of a beverage company, a category leader whose cost position wasn’ t significantly better than competitors, which were reducing their costs. Rapid growth had caused the company to expand operations without a streamlined strategy for sourcing, manufacturing and logistics. A supply chain transformation decreased the cost per unit by over 20%, positioning the company as the cost leader while maintaining quality and reducing complexity.
Indeed, some consumer goods companies are getting ahead by reinventing their end-to-end supply chains for the future, from planning to sourcing, manufacturing, footprint, customer service and logistics. They’ re creating segmented, modularized and simplified supply chains; installing automated, no-touch planning; building forecasting systems that use machine learning and such industry 4.0 capabilities as next-gen sensors—all while making the most of Agile innovation.
In our view, supply chains should always be designed to align with and serve the corporate strategy. The best companies focus on three elements.
Take a future-back and unconstrained view. To systematically prepare for the future while also creating it, we encourage consumer products executives to follow a future-back approach. Future back requires assessing possible scenarios that will have the greatest impact on industry dynamics, then developing plans around that view of the future. The future scenarios need to account for shifting ecosystems and profit pools, evolving consumer behavior and preferences, disruptive technologies, and new competitors and business models.
With these priorities in mind, companies start to reinvent their supply chain by taking an unconstrained view of what’ s possible. We ask executives to take a clean sheet of paper and design a winning supply chain that supports the business strategy and creates competitive advantage—from scratch. Sometimes, operations decision makers are accustomed—and trained—to focus on continuous improvement. But we ask them to do something counterintuitive: step back and draw a visionary picture of how they would imagine an optimal future. Instead of asking them to make incremental steps and consider constraints, we have them envision a scenario in which the company produces its ideal product portfolio with the most collaborative supplier base, employing a perfect labor model and state-of-the-art production equipment, using digital and industry 4.0 capabilities, and delivering via the optimal route to the customer.
We then have them go back and insert the constraints, such as capex limits, management bandwidth or regulatory, stakeholder and community concerns. For example, if they can’ t spend the $ 10 billion required for the perfect scenario but have $ 1 billion, they readjust the schedule. Companies need to be strategic when deciding which constraints to add back. It’ s the first move in creating an achievable plan, and it’ s often what separates a winning supply chain from a mediocre one. This process typically sheds new light on how to unlock value, for both supply chain costs and commercial capabilities.
Think segmentation. Every executive knows that all customers, geographies, channels and categories are not equally valuable. The best-positioned consumer goods companies use varying business needs as the starting point for creating separate supply chains. They know where they need to be good enough, where they need to be better than competitors and where they need to be truly differentiated.
When a global consumer goods company decided to differentiate itself by offering a suite of sustainable products, it carved out a set of supply chains for two dozen sustainable brands that have a lower carbon footprint and create positive social impact. The separate supply chain approach enabled the company to surpass its sustainability targets, reducing its carbon footprint by 15%, while turbocharging growth. Those brands, promoted for their sustainability, are growing 69% faster than the company’ s other brands and are generating 75% of its growth. At the same time, the company has reduced costs as much as 20% and surpassed competitors in the ability to innovate quicker and cheaper.
Another consumer goods company pursued a different type of segmented supply chain. It built one chain for its low-margin businesses, designed for efficiency above all, with standardization in sourcing, manufacturing, customer service and logistics. It built another for its high-margin business, which it saw as an important source of growth. For the latter supply chain, the company shifted the focus from efficiency to service levels, delivery speed and flexibility. It knew that new channel dynamics and business models would keep creating new requirements and that digital technologies would keep creating opportunities to step change agility and flexibility.
Some companies take a segmented approach based on three archetypes. “ Simple and efficient ” supply chains drive the core business and are designed to guarantee the lowest total cost for high volumes at consistent quality. “ Managed complexity ” supply chains can customize or add options, balancing cost with best-in-class reliability. “ Agile and adaptive ” supply chains spur disruptive growth, rapidly fulfilling new or unexpected customer requests.
Using this three-archetype approach, a food company laid out a plan to apportion its manufacturing capabilities among three plants. Scale plants will produce large batches and offer flexibility on only a few specific dimensions; flex plants will accommodate short batches and short lead times; and pilot plants will manufacture microbatches of products for market testing prior to launch. Combined with a new emphasis on contract manufacturing for commodity products, late differentiated capabilities in distribution centers and modular logistics solutions such as full pallets to unit picking, the company is positioning itself to leapfrog the competition. It will innovate quicker and cheaper, enabling its growth strategy. The company expects to reduce supply chain costs by 10% to 20% and its carbon footprint by 15%.
Use digital tools strategically. Some companies move too quickly—or too slowly—to adopt digital tools. The best companies rigorously assess their digital capabilities and how they’ ll help the company deliver its unique strategy. They recognize the difference among technologies that are ready to be deployed at scale, those that should be piloted first and those that just need more time to mature before any use. The goal is to use digital capabilities selectively to operate plants more effectively—to squeeze more out of existing assets instead of rebuilding.
The best digital adopters use advanced analytics to improve logistics and demand planning. They also can rely on control towers to discover supply chain incidents before the issues show up in a KPI report. That means everything from shipped materials that don’ t arrive on time, to incomplete production orders, to inventory gaps that result in delayed orders. However, while control towers detect these issues, companies also need a mitigation team that, as part of the workflow system, is ready to take the appropriate action, by releasing inventory earlier than planned, for example.
The beverage company mentioned earlier identified opportunities to use digital enablers to automate processes in specific plants. Then it directed production for the highest-performing SKUs to those plants, which were the company’ s most efficient. The company also maximized scale advantages with key suppliers and began relying on advanced analytics for planning, a move that boosted its ability to forecast consumption. The company could account for a much larger range of variables than before, vastly improving accuracy. In addition to its new status as the cost leader, the beverage company is now much better positioned to quickly serve customer needs—both today and as they evolve in the years ahead.
As consumer goods companies transform their supply chains to lessen the impact of margin pressures and assess how their supply chains are matched to business strategy in an era of disruption, the most successful will focus on these three elements. They’ ll take an unconstrained future-back approach, segment supply chains and be strategic about deploying digital tools—a proven way for consumer goods companies to march more confidently into the future.
Allard Vegter is a Bain & Company partner based in Amsterdam. Thomas Kwasniok is a partner based in London. Adam Borchert and Drew Woodhouse are partners based in Boston and Sydney, respectively. All are members of Bain’ s Consumer Products practice.
Amid crisis and disruption, supply networks designed for low-cost and minimal inventory pose a major risk.
In a Covid-19 world and beyond, consumer goods companies quickly need to implement digital strategies.
Covid-19 exposed the vulnerability of many supply chains. Fixing them affordably requires strategic focus.
Don’ t overlook the risks from second- and third-tier suppliers.
Bain Partner François Faelli shares three themes consumer products companies should focus on as they navigate through the pandemic.
Bain Insights. Our perspectives on critical issues global businesses face in today's challenging environment, delivered monthly.
© 1996-2020 Bain & Company, Inc. | business |
WHO officials say coronavirus spread outside of China is of 'grave concern ' | The spread of a fast-moving virus outside of China is of `` grave concern '' and has prompted the World Health Organization to reconvene an emergency meeting this week to decide whether it's become a global health emergency, WHO officials said Wednesday.
The coronavirus has spread to a handful of people through human-to-human contact outside of China, Dr. Mike Ryan, executive director of the WHO's health emergencies program, said at a news conference at the organization's Geneva headquarters Wednesday.
`` These developments in terms of the evolution of the outbreak and further development of transmission, these are of grave concern and has spurred countries into action, '' Ryan said, adding that he just returned from China on Wednesday. `` What we know at this stage, this is still obviously a very active outbreak and information is being updated and changing by the hour. ''
The coronavirus outbreak has killed 132 people in China and sickened more than 6,150 across more than a dozen countries across the globe. Ryan said there are currently 71 cases outside of China in 15 other countries.
The WHO declined at two emergency meetings last week to declare the virus a global health emergency.
Since the first patient was identified in Wuhan on Dec. 31, the number of coronavirus cases has mushroomed to 6,061 in mainland China as of Wednesday morning, exceeding the total number of SARS cases in that country during the 2003 epidemic. There were 5,327 SARS cases in China and 8,000 across the world diagnosed between Nov. 1, 2002, and July 31, 2003, according to the WHO.
One of the criteria used to determine whether the coronavirus is an international health threat is whether the disease spreads locally once it arrives in new parts of the world, `` and that's a nuanced and important distinction to make, '' Ryan told reporters last week.
The other main criteria is whether it's already interfered or will likely interfere with trade and travel, he said. The WHO committee's goal, he said, is to contain an outbreak without needlessly disrupting economic activity just by declaring a global health crisis.
German health officials Tuesday said that a 33-year-old man there contracted the virus from a colleague visiting his workplace from Shanghai, confirming what appears to be one of the first cases of person-to-person transmission outside China.
WHO Director-General Tedros Adhanom Ghebreyesus said the `` continued increase in cases and the evidence of human-to-human transmission outside of China are, of course, most deeply disturbing. '' The illness produces a range of symptoms with about 20% of the patients becoming severely ill, including pneumonia and respiratory failure, he said.
`` Although the numbers outside China are still relatively small, they hold the potential for a much larger outbreak, '' Tedros said.
Tedros, who joined the news conference late, said he met with Chinese leader Xi Jinping, China's National Health Commission minister, Ma Xiaowei, and China's minister of foreign affairs, Wang Yi, on Tuesday. During the visit, Tedros and Chinese leaders discussed containment measures and sharing data on the virus, he said.
`` I was very encouraged and impressed by the president's knowledge of the outbreak and his personal involvement in the response, '' Tedros said.
WHO officials said they view the outbreak on four fronts: The public health response in Wuhan, the response in other provinces in China, the 15 other countries with reported cases and preventative measures by the whole world. `` We're continuing to share information, guidelines and tools, '' Ryan said.
READ MORE: Today's live coronavirus updates are here.
— CNBC's William Feuer contributed to this report. | business |
Apple earnings and sales surge to record, sending stock toward new highs | Apple Inc. shares ticked higher in aftermarket trading after the company posted record quarterly results for its holiday quarter Tuesday afternoon while easily topping expectations.
The star of the quarter was the iPhone, as revenue for the category exceeded the FactSet consensus by more than $ 4 billion. Apple
AAPL,
+0.82%
also saw strong performance once again from its wearables, home and accessories category, with revenue up 37% to $ 10.01 billion, another beat relative to the consensus view.
See more on our
Apple live blog recap
Strength in those two segments made up for a disappointing performance from the services business and helped carry Apple to record earnings and revenue. The company netted $ 4.99 a share for the quarter on revenue of $ 91.82 billion, whereas analysts had been calling for $ 4.54 a share in earnings and $ 88.48 billion in revenue.
Revenue from iPhones totalled $ 55.96 billion and made up more than half of the company’ s overall sales once again, increasing more than 7% from a year ago. Analysts had been calling for $ 51.38 billion from the category. It was the second-highest quarterly iPhone revenue total in Apple’ s history, behind its 2017 holiday quarter.
On the wearables side, Cook discussed how strong demand impacted availability of the Apple Watch and AirPods during the holiday period. Nonetheless, this marked the first quarter in which revenue for the category exceeded $ 10 billion.
See also:
AMD stock slides as outlook falls below Wall Street view
Shares were up 1.4% in after-hours trading as the company gave a revenue forecast for the current quarter than came in ahead of the consensus view. Apple projects $ 63 billion to $ 67 billion in revenue for the March quarter, whereas analysts were expecting $ 62.41 billion.
Apple’ s revenue range is wider than it might normally be, executives said, as the company continues to monitor the coronavirus situation in China. Chief Executive Tim Cook said on Apple’ s conference call that the company does have suppliers based in Wuhan but has alternate sources for those pieces of the supply chain. There’ s less clarity around the situation in other Chinese cities as several have delayed their holiday shutdowns by an extra week as the outbreak continues to spread.
“ We factored our best thinking in the guidance that we provided you, ” Cook said, while also flagging that retail traffic throughout the country has been impacted in recent days.
Read:
Apple suppliers caution coronavirus could impact planned production hike, says report
Apple managed to improve its China performance in the recently completed quarter, growing sales to $ 13.58 billion, up 3% from a year prior. It marked a change in tone from a year ago, when the company blamed weakness in China and other emerging markets for its disappointing holiday-quarter results.
Though the services business was a high point of Apple’ s results three months back, revenue for the segment fell short of expectations this time around, as Apple booked $ 12.72 billion in sales, below the $ 13.06 billion consensus.
Newly launched services such as Apple TV+ didn’ t have much impact on the December-quarter results, executives said on the call, while providing additional information as to how the company
accounts for deferred revenue around free trials of the service
.
Don’ t miss:
How to get Disney+, Apple TV+, Amazon Prime Video or Netflix for ‘ free’ — and what to know before you sign up
Apple shares have gained 27% over the past three months, as the Dow Jones Industrial Average
DJIA,
-1.29%
,
of which Apple is a component, has added 6.1%. | business |
Gaming stocks slammed as China tourists to Macao fall amid coronavirus fears | Hong Kong-listed gaming stocks took a beating on Wednesday as official data showed Chinese mainland visitor arrivals to Macao plummeting during the Lunar New Year holiday period.
By Wednesday's market close, shares of Melco International Development dropped 5.18% while Wynn Macau declined 4.11%. Sands China also plummeted 5.57% while Galaxy Entertainment fell 5.17% and SJM Holdings slipped 3.59%.
Mainland Chinese visitor arrivals to Macao during this year's Spring Festival Golden Week from Jan. 24 to 28 plunged 79.2% compared to last year's Golden Week holiday, according to provisional government data. Macao is a special administrative region of China and a major gambling hub in Asia. Visitors from mainland China make up the majority of Macao's tourists.
The latest data comes as China battles to contain a coronavirus outbreak that has already infected more people than SARS in the country. Chinese health officials said confirmed on Wednesday that there are 5,974 confirmed cases, and the death toll has risen to 132.
Fears over the potential economic impact have sent markets across the globe reeling in recent days.
One economist told CNBC on Wednesday that the virus struck at an `` especially inopportune moment. ''
`` The Chinese economy has already been slowing significantly since late 2018 and the services sector, I can't stress how important it is for the Chinese economy now, '' Darren Tay, Asia country risk analyst at Fitch Solutions, told CNBC's `` Capital Connection '' on Wednesday.
`` Besides the fact that it is now 62%... of GDP in China, it is also the main growth engine throughout China's slowdown in the past five quarters... or so. ''
`` If this is hit now, it's going to be very bad news for the economy, '' Tay said. | business |
How Microsoft, PepsiCo and other solid plays helped this fund manager ride out a bumpy decade | Secure those eyes on the back of your head for Wednesday.
After
record-breaking Apple results
, investors will look to Facebook, Tesla and a trove of other companies to bring in some upbeat earnings. We’ ll also get the outcome of the Federal Reserve meeting, where markets are looking for steady policy and could use some calm demeanor from Chairman Jerome Powell.
That is as the coronavirus
death toll tops 130
and confirmed China cases near 6,000, notably overtaking the SARS outbreak of 2003. It may prove a big test for the old and new investor.
Our
call of the day
comes from Eric Schoenstein, portfolio manager for the Jensen Quality Growth Fund
JENSX,
-2.66%
at Jensen Investment Management, who joined the firm in 2002 and started managing the fund in 2004, has clearly seen the fund through a number of market crises over the years.
Average annual total returns for the fund over 10 years are just over 13%, keeping pace with the S & P 500. He said the buy-and-hold fund has consistently sought companies with strong business models and a competitive advantage to keep free cash flow coming and ride out market-moving events. Think consumer staples, IT and health care, Schoenstein tells MarketWatch.
Some of the top five companies in that fund have been in it more than a decade—conglomerate United Technologies
US: UTX
,
Microsoft
MSFT,
+1.40%
,
PepsiCo
PEP,
-0.86%
,
medical technology group Beckton Dickinson
BTX,
-1.96%
and Johnson & Johnson
JNJ,
-0.56%
.
“ When we first owned Microsoft it was dead money, ” the manager said, noting that regulatory concerns were hanging over the software maker, but that it went on to become a jewel in the portfolio.
Schoenstein is braced for a tougher 2020, though. “ We remain somewhat concerned about what’ s happening in 2020, ” he said, adding that for gains to continue, markets will need to see more support coming from “ actual earnings and business performance. ”
The fund also holds Google parent Alphabet
GOOGL,
+3.37%
and Apple. Fellow fund manager Kevin Walkush said they started investing in 2016 in Apple, and while they remain happy on the iPhone maker’ s prospects and fundamentals, valuation gives them pause so they’ d be “ cautious about initiating a position at this time. ”
The market
The Dow
YM00,
+1.64%
,
S & P
SPX,
+1.62%
and Nasdaq
COMP,
+2.35%
are higher as
trading gets underway
, while European stocks
SXXP,
-0.51%
also rose
. In Asia, Hong Kong’ s Hang Seng
HSI,
-1.39%
reopened with losses
, while South Korea’ s Kospi
180721,
-1.09%
posted gains.
The chart
Our chart from Goldman Sachs shows which assets have been hardest hit by coronavirus concerns in recent days:
Performance between Jan. 17 and Jan. 27, 2020
Bloomberg, Goldman Sachs
They also note that investors may want to brace for four weeks of rough trade, based on prior epidemics:
Datastream, Goldman Sachs
The buzz
Shares of conglomerate
GE
GE,
+5.69%
are climbing on results. Shares of jet maker
Boeing
BA,
+6.27%
BA,
+6.27%
rallying despite a big surprise loss and revenue miss. Also reporting, telecoms
AT & T
T,
-0.76%
and fast food restaurant
McDonald’ s
MCD,
+2.05%
.
After the close, technology companies
Microsoft
MSFT,
+1.40%
and
Facebook
FB,
+4.50%
,
electric-car maker
Tesla
TSLA,
+5.32%
and online payments group PayPal
PYPL,
+5.09%
are due.
Read:
Coronavirus continues to infect earnings as Tesla and Boeing highlight busiest day
Apple shares are up in premarket trading, though analysts seem mixed about how much more shares can deliver up. Semiconductor group AMD
AMD,
+5.84%
shares are down on
disappointing results
and stock of online auctioneer eBay
EBAY,
+1.00%
is slumping on a
profit fall
.
The U.S. is reportedly considering a ban on all flights from China to stem the fast-spreading coronavirus and British Airways is the latest airline to curb routes to that country.
United Arab Emirates
is the most recent country to report infections.
Data showed the U.S. trade deficit in goods jumped 8.5%, with pending home sales still to come ahead of that
Federal Reserve decision
Random reads
Beijing drugstore fined $ 434,530 for a
sixfold hike in mask prices.
Gear from the late National Basketball Association star Kobe Bryant will cost you
thousands of dollars.
Need to Know starts early and is updated until the opening bell, but
sign up here
to get it delivered once to your email box. Be sure to check the Need to Know item. The emailed version will be sent out at about 7:30 a.m. Eastern.
Follow MarketWatch on
Twitter
,
Instagram
,
Facebook. | business |
Peloton’ s Earnings Could Settle the Debate: Keep Buying the Stock, or Sell Short | Peloton Interactive
stock’ s biggest test yet will come after the market closes on Feb. 5, when the company reports earnings.
The seller of at-home exercise equipment with built-in online training subscriptions has been one of the better performers of a crop of multibillion-dollar companies that went public in 2019.
The stock closed at $ 31.38 on Tuesday, above its $ 29 IPO price, and well above the $ 25.76 it closed at
on its first day of trading on Sept. 26
. That is especially strong when compared with ride-hailing giants
Lyft
( LYFT) and
Uber Technologies
( UBER), which have fallen below their initial public offering prices.
But Peloton stock ( PTON) has had its share of stumbles, most notably when Citron Research analyst Andrew Left, a notorious short seller, likened the stock to
GoPro
( GPRO) in a report
defending his belief
that bearish bets against the stock would pay off big. ( GoPro has fallen 95% from its 2014 highs.)
Recently, 80% of the Peloton shares available for trading
were sold short
, meaning investors sold borrowed shares to bet on a drop in the stock price. Only two companies in the
Russell 3000
index had higher short-selling interest:
GameStop
( GME) and Health Insurance Innovation
( HIIQ), according to Bloomberg research.
Editor's Choice
Such high short interest could actually
benefit bullish shareholders
, as long as the company’ s earnings report on Feb. 5 is upbeat. That could create a short squeeze scenario, where short sellers buy shares to limit their losses. With that kind of demand, share prices could go even higher. Beyond Meat and Tesla
both jumped
on
such squeezes
last year.
Another factor is when IPO insiders can sell shares. March 25—180 days after the IPO—has been the anticipated lockup expiration, but J.P. Morgan analyst Doug Anmuth thinks shares will unlock earlier, on Feb. 24, because March 25 falls during a blackout period leading up to fiscal third-quarter earnings.
“ We believe insider and employee shares would become available for sale for 2 weeks before the internal blackout period, and then again after [ fiscal third-quarter ] earnings, likely in May, ” he wrote. “ Other existing holders’ shares would become available for sale around Feb. 24 with no additional constraints. ”
A Peloton representative didn’ t immediately return a request for comment. Anmuth expects strong fiscal second-quarter earnings, and is bullish despite the high short interest and lockup expiration.
And he isn’ t alone. All but one of the analysts covering the stock, listed by Bloomberg, have Buy ratings. When the stock fell after a Peloton holiday advertisement was
widely mocked online
, analysts at KeyBanc Capital Markets pointed out a big uptick in search interest for the company right in the middle of the holiday shopping season. This quarter may test whether all media attention is good attention—at least for trendy exercise equipment.
Cowen analyst John Blackledge thinks Peloton is in a strong position to scale its business, because of its powerful brand, vertically integrated model, and what he sees as a large potential market. He called the valuation attractive for this reason. He raised his price target to $ 36 from $ 34, in a note on Wednesday, and maintained his Outperform rating.
Stifel analyst Scott Devitt reiterated his Buy rating and $ 37 price target. He expects healthy revenue and subscriber growth for the quarter, which includes the crucial holiday season, even though the bar set from a year earlier is high. He estimates that second-quarter revenue will be up about 60% year-over-year to $ 419.2 million, compared with consensus estimates at $ 421.5 million. Devitt also pointed out Peloton’ s Nov. 20 debut in Germany, which included showrooms in six of the major metro areas and the company’ s first-ever German-language classes.
Read More Trader
The Dow Finally Took the Coronavirus Seriously and Dropped 733 Points
How Investors Can Use Options Trades to Profit During Earnings Season
“ We see Peloton’ s ongoing investments in marketing initiatives, content development, and international markets as supporting sales growth and subscriber retention, ” he said.
To be sure, the bearish bets could pay off if Peloton’ s results disappoint, especially with so many bullish analysts. But whether you think Peloton is an exercise fad, or the future of at-home training, the tug of war could be an opportunity.
The stock was down 0.5% to $ 31.23 Wednesday afternoon. The
Dow Jones Industrial Average
was up 0.1%.
Write to
Connor Smith at
connor.smith @ barrons.com | business |
You Should Buy McDonald's Before It's Too Late |
McDonald’ s ( MCD) reported what would have otherwise been a stellar earnings report this morning. The company delivered better than expected top and bottom-line performance driven by a record increase in comp-store sales. What the market chose to focus on, however, was an unexpected increase in CAPEX that threatens to cut into profits.
Before I move on, let's talk about comparable store sales first. The Golden Arches saw global comps rise nearly 6.0% to a +10-year high. The U.S. comps were equally strong, up 5.0% and both better than the analyst’ s consensus estimates. The reason for the increase is simple. McDonald’ s has been executing on a worldwide turnaround strategy for many years and the strategy is paying off. Couple this with a “ bubbly ” consumer and the times are good for McDonald's. Now let’ s talk about that CAPEX again.
Spend A Little Now, Make A Lot Later On …
McDonald’ s 8-K filing shows it intends to increase its CAPEX by 5% to 7% in 2020. The spending is partially due to costs related to the worldwide owner/operator convention but the lion’ s share will go towards new technology.
McDonald’ s is a leader when it comes to automating its stores so we can expect to see those efforts widen. Considering the Velocity Growth Plan is already delivering strong returns to shareholders I would expect these new efforts to do the same.
Along with this, McDonald’ s is expecting to open at least 1,400 new stores in 2020. The company will invest $ 800 million in 400 corporate-run facilities while licensees and affiliates will contribute the rest. In total, McDonald’ s expects to open a net of 1,000 new locations this year.
document.write ( ' < a style= '' text-decoration: none; font-weight: normal; color: # 696969; '' target= '' blank '' rel= '' nofollow '' href= '' https: //www.ame ' + 'ricanconsumernews.net/scripts/click.aspx? NativeDisplayAdID=587 & ImpressionID=0 & UserID=0 & Placement=PlaceOnArticlePage '' > '); A Wall Street legend who picked Apple in 2003 — and Bitcoin in 2016 — shares his # 1 pick for 2020s.
The Results Don’ t Lie
Now we can look at the 4th quarter results in a new light. Yes, McDonald’ s is going to spend some of its hard-earned cash this year but that spending has been paying off. Revenue in the 4th quarter came in at $ 5.35 billion, that’ s up 3.7% from last year and shows a return to growth after several years of declines. Adjusted EPS was only in-line with the previous year but GAAP EPS grew by 15% and beat by 5%.
Looking forward, the consensus estimate of $ 8.50 or +8% in 2020 may be a little high. With CAPEX spending expanding to $ 2.4 billion there is a chance earnings to shareholders will be affected. Even so, consolidated operating income and earnings attributable to shareholders is on the rise and the dividend is safe.
McDonald’ s Pays A Tasty Dividend
McDonald’ s doesn’ t pay the highest yielding distribution in the market but it is among the most committed dividend-paying stocks you can buy. The company’ s policy is to pay as much free-cash-flow to shareholders it can while maintaining a proper growth trajectory. The payout ratio is running near 64% which is easily managed and the distribution growth rate is attractive at 7.6%. At current prices, the stock is yielding about 2.4% but that won’ t last. Shares are already on the move.
`` Our Velocity Growth Plan helped produce strong operating performance over the past several years, and our underlying financial strength continues to build long-term value for our shareholders. As we begin 2020, we remain committed to our capital allocation philosophy to reinvest in the business to drive profitable growth and return all free cash flow to shareholders through a combination of dividends and share repurchases, '' said Kevin Ozan, McDonald's Chief Financial Officer.
The Technical Outlook, The Uptrend Will Continue
Shares of McDonald’ s jumped on the initial report, fell on word CAPEX was rising, and then regained their bullish footing by the open. The prospect of future growth and growing dividend payments are too irresistible for dividend-growth investors.
The early action is bullish and breaking resistance to a four-month high so more new highs are expected. The indicators confirm today’ s breakout with bullish crossovers but the signals are still weak. Once price action closes above $ 214 a move to $ 220 is expected. A move above $ 220 would set a new all-time high and confirm the continuation of the longer-term uptrend.
8 Stocks Beaten Down by the Coronavirus That Are Too Good to Pass Up
The coronavirus crash has not discriminated in its victims. Large-cap, mid-cap, and small-cap stocks have all been dropping. No sector has been spared either. And while the market flipped from a bear market to a bull market in just three days, there’ s still plenty of volatility to cause cautious investors to keep a healthy social distance from many stocks. The pandemic that is forcing most of us to stay in our homes as much as possible ( and if you’ re not, please do) is unique for most of us. Demand hasn’ t organically diminished. It’ s been artificially suppressed. And that means that while it’ s fair to say our economy will certainly experience a new normal, there will be a recovery. And when it comes, many of the companies that were strong before the pandemic broke will continue to show their strength. Investors who are investing in these companies today will be the ones that experience the greatest gains when the recovery happens.
View the `` 8 Stocks Beaten Down by the Coronavirus That Are Too Good to Pass Up ''.
Complete the form below to receive the latest headlines and analysts ' recommendations for your stocks with our free daily email newsletter: | business |
Lockheed Shares Take Flight Reaching All-Time Highs |
The threat of escalations in tensions between the US and Iran earlier this month was the initial spark to the most recent rally. With the American assassination of Iranian general Soleimani on 3 January, Lockheed’ s stock popped 6% in just two days. By the time the Iranian’ s retaliated by sending missiles into US bases in Iraq on 8 January, Lockheed and many other big defense names like Kratos Defense ( NASDAQ: KTOS), Northrop Gruuman ( NYSE: NOC) and Raytheon ( NYSE: RTN) were all catching a strong bid from Wall Street.
On top of this, the company’ s Q4 earnings, released before yesterday’ s bell, have added fuel to the fire. The headline EPS and revenue numbers both comfortably beat analyst expectations with the former showing a jump of 21% and the latter showing a jump of more than 10% year on year. For a traditionally slow-moving industry, this kind of growth in a $ 125 billion company is impressive. They’ re also entering 2020 with a record backlog of $ 144 billion to keep them busy.
Lockheed’ s CEO Marillyn Hewson commented with the release that `` the corporation delivered outstanding performance throughout 2019, achieving exceptional sales growth, strong earnings, cash from operations, and a record backlog. As we look ahead to 2020, we remain focused on providing innovative global solutions for our customers, investing for growth across our portfolio, and generating long-term value for our shareholders. ''
document.write ( ' < a style= '' text-decoration: none; font-weight: normal; color: # 696969; '' target= '' blank '' rel= '' nofollow '' href= '' https: //www.ame ' + 'ricanconsumernews.net/scripts/click.aspx? NativeDisplayAdID=499 & ImpressionID=0 & UserID=0 & Placement=PlaceOnArticlePage '' > '); Eric Fry, one of America’ s top Investment Strategists, provides his latest report 5 Tech Stocks Set for 1,000% Gains after the Coronavirus Sell off. You can’ t afford to miss out on the once in a decade chance to buy after the recent 25% dip in the markets.
If the start of this year has been great for the stock, the end of last year was great for the fundamental drivers of the company. They announced on the penultimate day of 2019 that they exceeded their target of delivering 131 F-35 fighter planes. The 134 that they ended up delivering came amidst a booming demand as the company built 47% more jets in 2019 than in 2018. They plan to deliver 141 F-35s in 2020 and at $ 80 million a plane, that’ s a pretty penny to have on the horizon.
Also in December, they were awarded two Pentagon contracts worth close to $ 9 billion. Two months prior in October, they landed a $ 4.5 billion contract from NASA to build six Orion spacecraft. All these headlines have helped cement Lockheed’ s position at the front of the pack and it’ s no surprise that their shares are outperforming everybody else in the space over multiple time periods.
In the past two decades, Lockheed’ s stock is up over 2,400%. Northrop is up 1,700%, Raytheon is up 1,100% and Kratos is down 99%. In the past twelve months, Lockheed is up 50%, Northrop and Raytheon are up 38% while Kratos is up 22%. As we head into a new decade, all signs point to Lockheed continuing to lead from the front and it looks as if Wall Street is expecting as much.
All that being said, the stock is starting to look a little hot and frothy after its most recent run. Its RSI is at 80 on both the daily and weekly charts so investors shouldn’ t be surprised if there are some profit-taking and consolidation in the near future. The first line of defense would be around $ 410. After that there’ s solid support around the $ 400 mark and given the internal momentum underway, any pullback should be considered a gift of a buying opportunity.
CNBC published a study earlier this month that suggests defense stocks easily outperform the broader market by as much as double in the 6 months following a crisis event. So far, Lockheed looks eager to prove them right.
7 Stocks That Aggressive Investors Can Buy Now
There’ s nothing like a steep market correction to test the risk appetite of even the most seasoned investor. With many investors seeing their 401k’ s down 25%, 30% or more, it’ s not surprising that many investors are taking money off the table. And even during the most bullish market conditions, keeping some powder dry is a prudent decision. But if you have an above-average risk appetite, then sitting on the sidelines is not your cup of tea. If you’ re an investor with above-average risk tolerance, there are some opportunities to profit in this market. But you have to be looking in the right places. At this time, the small-cap sector offers some interesting choices. Small-cap stocks are companies that have a market cap of less than $ 2 billion. Many of these stocks fall under the category of penny stocks, but that doesn’ t make them bad. In some cases, they’ re just obscure companies. But right now, many investors will take growth wherever they can get it. And that’ s why you should take a careful look at the 7 stocks we have in this presentation. The cost of entry is not high and the potential reward is worth your interest.
View the `` 7 Stocks That Aggressive Investors Can Buy Now ''.
Complete the form below to receive the latest headlines and analysts ' recommendations for your stocks with our free daily email newsletter: | business |
Your Blueprint for Trading Las Vegas Sands ( LVS) Earnings Report |
Macro Context and Influences
The S & P 500 ETF ( NYSEARCA: SPY) is our macro market indicator. LVS reports after the events of the Federal Open Market Committee ( FOMC) rate announcement and Q & A session earlier in the day scheduled at 2:30 pm EST on Weds. Jan. 28, 2020. The market headwinds generated by the FOMC event may set the risk-on or risk-off tone heading into LVS earnings post-market afterwards.
Technical Analysis
Utilizing the rifle charts, LVS has a monthly mini pup pattern with 5-period MA support at 63.18 and 15-period MA support at 59.87 overlapped with 0.382 and 0.618 Fibonacci ( fibs) retracement levels. The weekly stochastic peaked at the 74.16 fib level and gapped down to the 61.12 super fib bottom setting the range heading into earnings. The daily stochastic completed a full oscillation down to the 20-band awaiting a crossover bounce to retest the daily 5-period MA. The 7-trading day range has set the initial envelope [ 1 ] at 61.12 x 69.68 fibs. The next range [ 2 ] is the 58.50 fib x 74.16 fib. The widest range [ 3 ] is the 57.52 x 77.51 stinky 2.50s range. This final range may take weeks to reach after the rest of the peer casino stocks report their earnings results.
document.write ( ' < a style= '' text-decoration: none; font-weight: normal; color: # 696969; '' target= '' blank '' rel= '' nofollow '' href= '' https: //www.ame ' + 'ricanconsumernews.net/scripts/click.aspx? NativeDisplayAdID=558 & ImpressionID=0 & UserID=0 & Placement=PlaceOnArticlePage '' > '); Two legendary traders explain the little-known stocks that are set to win big in this new market reality. PLUS, they’ ll unveil the # 1 chart pattern that is responsible for transforming a small $ 2,000 account into a $ 2 million fortune in just over two years!
Sympathy Stocks:
The direct casino sympathy stocks with properties in Macao are Wynn Resorts ( NASDAQ: WYNN) and MGM Resorts International ( NYSE: MGM). These three interchangeable stocks move lockstep with each other like clockwork. Typically, the order of action goes top-down with WYNN, LVS then MGM. Keep in mind WYNN is scheduled to report earnings the next day after the close on Jan 30, 2020. Expect LVS to also react on WYNN earnings.
If LVS shares exceed a 10-percent gap up or down, then lower-tier casino stocks Caesars Entertainment ( NASDAQ: CZR), Boyd Gaming ( NYSE: BYD) and Penn National Gaming ( NASDAQ: PENN) may get some action, but keep in mind these are regional domestic operators with muddled correlation with the big three. Additionally, Coronavirus impacted stocks may continue to rally in sympathy, these include Marriott ( NYSE: MAR) which derives nearly 8-percent of total revenues from China and Hilton ( NYSE: HLT). Meat and poultry distributor Tyson Foods ( NYSE: TSN) has also shown to have a positive correlation with the Coronavirus group of stocks.
Trading Game Plan:
Due to the nearly 13-point range that LVS has traded between in just 6-trading days, market reaction to earnings may be muffled. The 67.07-to-67.60 fib daily gap fill is a magnet if the daily stochastic can crossed back up off the 20-band. Utilizing the aforementioned three price envelopes, reversion shorts on the second gapper reactions can be taken at the 69.68, 74.16 and 77.51 on the first tests. Reversion longs can be taken at 61.12, 58.50 and 57.52 on the first price tests.
Keep in mind, there’ s no guarantee these levels will test, but if they do then a trading opportunity presents itself at these price inflection points. Be conscious of slow grinds after 10am EST to form on the 5 and 15-minute rifle charts. Focus on the reactions, not the reasons for the price moves. Again, it’ s possible that volatility gets muddled in a tighter range of the first envelope. In that case, stick to scalping just the morning session and stay out of deadzone. Further follow through on LVS may occur after WYNN reports earnings on Thursday. Remember that we focus on the reactions, not the reasons for the price moves.
12 Marijuana Stocks to Buy Now
There are now more than 50 publicly-traded companies operating in the cannabis industry. Most of these companies aren't directly growing and selling marijuana themselves, but they do stand to benefit greatly as more states legalize the sale and possession of marijuana. Some of these marijuana stocks are media companies. Others are privately studying the medical uses of marijuana. Yet others are providing tools and software for marijuana growers. As more cannabis companies file IPOs and enter the stock market, it will become increasingly difficult for investors to identify which marijuana stocks will truly benefit from the cannabis boom. Our subscribers have begun digging through these companies, checking out their financials, business models and long-term growth prospects. They know that some `` marijuana stocks '' are just empty shell companies that deserve to be penny stocks, but they also recognize there are some legitimate and growing companies that truly stand to benefit from the green rush. As a group, they have added 10 different cannabis stocks to their watchlists and are actively investing in them. More than 1,400 MarketBeat subscribers are now following our top-trending cannabis company. This slide show lists the 12 pot stocks that MarketBeat subscribers are have added to their watchlists and are actively monitoring.
View the `` 12 Marijuana Stocks to Buy Now ''.
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Your Blueprint for Trading Electronic Arts ( NASDAQ: EA) Earnings Report | Macro Context and Influences
The S & P 500 ETF ( NYSEARCA: SPY) is our macro market indicator. The FOMC rate decision on Wednesday, Jan. 28, 2020, will impact the SPY heading into EA earnings the following day. The SPY has managed to hold the breakeven line at 323.50 as it attempts to recover losses earlier in the week. The reaction to Chairman Powell’ s Q & A session will set the tone on Thursday as it whether SPY gains will accelerate or be cut-off with 328.12 as the daily 5-period MA nominal recovery line I the sand.
Technical Analysis
Utilizing the rifle charts, EA has a bullish monthly stochastic mini pup with support at 102.46. Additionally, it may have formed a monthly seed wave that project upside potential reversal zones ( PRZ) at the 1.27 fib 118.20, 1.414 fib at 122.98 and 1.618 fib at 130.46. The PRZ act as initial targets for longs and short-sell areas for bears to play countertrend reversions. The ultimate short-sell area is the 1.618 PRZ at 130.46 if it gets there. The weekly chart shows how the initial market structure high ( MSH) formed at 108.92 setting the MSH sell trigger under 105.12. However, the trigger never formed as bulls drove shares back up through the 108.92 MSH triggering a short-squeeze to 114.13 highs before forming a weekly doji and reversion back to the weekly 5-pd MA 110.64 that managed to coil to the 112.32 daily 5-pd MA make or break ahead of earnings.
document.write ( ' < a style= '' text-decoration: none; font-weight: normal; color: # 696969; '' target= '' blank '' rel= '' nofollow '' href= '' https: //www.ame ' + 'ricanconsumernews.net/scripts/click.aspx? NativeDisplayAdID=589 & ImpressionID=0 & UserID=0 & Placement=PlaceOnArticlePage '' > '); Wall Street Legend, Teeka Tiwari, who picked Apple in 2003 -- and Bitcoin in 2016 -- shares his # 1 Pick for the 2020s.
Sympathy Stocks:
The two top sympathy peer stocks to watch are Activision ( NASDAQ: ATVI) and Take Two Interactive ( NASDAQ: TTWO). Lower tier sympathy stocks include retailer GameStop ( NYSE: GME), and mobile video game makers Glu Mobile ( NASDAQ: GLUU) and Zynga ( NASDAQ: ZNGA), which may react no EA’ s mobile gaming segment figures.
Trading Game Plan: Post-Market Release
EA can trade very thinly post-market due to the high price and very wide spreads expected. Only the most experienced and agile seasoned traders with direct access order routing capabilities should even consider playing the post-market reactions. Scalp sizes can range from 0.25 to 2.00 on initial reactions. With that said, the most viable reversion areas to consider enveloping on the initial release reaction would be the 118.20, 122.98 on the upside reversion and 105.12 and 102.46 on the downside reversion. The next 1.618 fib sit at 98.15 which nearly overlaps with the monthly 15-period MA. Light sizing and quick exits are key. More extreme reversion levels would be the 127.50 and 130.46 PRZ area. IF EA manages to climb to the final PRZ range of 130.46, then shorts are highly viable for a multiple point reversion, unless it’ s a slow grind. If EA collapses to 91.91, that would be a prime reversion bounce area into the 5 pm conference call.
Trading Game Plan: Next Day Market Open
Assuming there is a playable gap Friday morning, make sure you’ re well familiarized with the three-reactions off the open on gappers. Scalps can range from.20 to 1.50 on the opening volatility. Use the fib reversion levels for the second reaction scalps. Be aware that EA can be notorious for intraday slow grinds that keep the stochastic pinned above 80-band or below 20-band to trap reversion players. Therefore, keep your sizing slow and consider scaling into positions to optimize your average price, but not too big so you can’ t take stops.
Short-Stacked Trading Accounts
If you’ re trading account is under $ 50,000 then remember pitfall # 2 short-stacked accounts are too susceptible to smoked on expensive and volatile stocks like EA. Consider playing sympathy stock ATVI and using EA as a lead indicator at half the price. Always note the presence of negative correlation also known as divergence on peers ATVI and TTWO. For example, if EA sells-off on the market open and bounces back up through the 5-period MA but ATVI and TTWO continue to sell-off lower, then divergence has set in. This means either EA will fall or ATVI and TTWO will bounce as EA grinds higher. Ultimately these three stocks will resume movement in unison making divergence periods potential profit opportunities.
10 Best Tech Stocks to Buy After the Market’ s Historic Sell-Off
Technology stocks are among the most volatile in the market. The allure of big gains comes with the risk of sharp downturns. When the market is trending upwards, these stocks have a tendency to lead the way. Conversely, when the market is selling off, tech stocks post some of the largest losses. And in the coronavirus crash tech stocks took their usual beating. But an interesting dynamic is happening. As stocks are trying to stage a comeback, many tech stocks are being left behind. Many of the leading tech stocks trade on the NASDAQ exchange. However, as the Dow Jones Industrial Average ( DJIA) and S & P 500 posted gains on March 25, the NASDAQ stayed down. And that’ s an opportunity for investors who know where to look. We’ ve put together this presentation to give you ten technology stocks that look to be solid bets no matter which way the market moves. Some of the stocks you’ ll see are companies that have a business model that is perfectly suited for today’ s social distancing environment.
View the `` 10 Best Tech Stocks to Buy After the Market’ s Historic Sell-Off ''.
Complete the form below to receive the latest headlines and analysts ' recommendations for your stocks with our free daily email newsletter: | business |
Coronavirus: The engineering behind Wuhan's rapidly-built hospitals — Quartz | In Wuhan, China, there’ s a riveting sideshow in the unfolding drama to contain the fast-spreading coronavirus strain that has already claimed 132 lives and infected over 6,000, as of the latest confirmed count. The majority of those infected are in Wuhan, and the Chinese government is putting its resources into building new medical facilities, fast. Millions are watching daily videos of an architectural feat: two fully functioning hospitals rising from the ground in mere days.
Broadcast by Chinese state media, drone footage of the construction site shows a ballet of bulldozers digging the foundation and a parade of trucks hauling in steel cable, cement, pre-fab parts and power generators. Workers are toiling around the clock to meet the frantic timeline: Huoshenshan Hospital, which broke ground on Jan. 24, is scheduled to be operational on Feb. 3, will have 1,000 beds and occupy a 269,000 sq. ft. lot in the edge of the city. With an equally ambitious timeline is Leishenshan Hospital, a 323,000-sq. ft, 1,300-bed facility slated to open two days later. | tech |
Tesla Earnings Were So Good, It’ s Now a $ 600 Stock | Tesla stock surged after the company reported earnings on Wednesday.
Photograph by STR/AFP via Getty Images
Tesla
earnings are always
must-see TV
on Wall Street. But they especially are this time around, after the company's unbelievable stock rally so far this year has pushed its
market value
past that of
Ford
,
General Motors
,
and
Volkswagen
.
Tesla ( ticker: TSLA)
reported
$ 2.14 in per-share earnings from $ 7.4 billion in sales on Wednesday. Wall Street was looking for $ 1.77 a share from $ 7 billion in sales.
Obviously, earnings were pretty good. But are they good enough to appease Tesla bears? It’ s hard to say. The stock is destined to be volatile, no matter what earnings it reports. Tesla shares are, after all, up more than 80% over the past three months, crushing comparable gains of the
Dow Jones Industrial Average
and
S & P 500
over the same span.
For now, Tesla shares are roaring higher in after-hours trading, up 6.8% to more than $ 620.
Investors interested in cutting through the noise should focus on four things: earnings, cash flow, profit margins, and deliveries.
As mentioned, earnings were better than expected. That’ s the first big positive.
Cash flow topped $ 1 billion in the fourth quarter. That’ s another positive. Coming into the quarter, Tesla had produced positive free cash flow in four of the last five quarters. Bondholders noticed, and Tesla bonds now trade above par. Tesla’ s non-investment-grade-rated bonds due in 2025, for instance, have rallied from about 87 cents on the dollar to more than 100 cents on the dollar over the past six months. Those bonds yield about 5%.
Total gross profit margin in the quarter came in at 18.8%.
Baird
analyst
Ben Kallo
modeled 17.1% gross profit margins for the fourth quarter. There might be some adjustments that affect comparability, but overall it looks like another thumbs-up for the electric-vehicle pioneer. ( Kallo, a longtime bull, recently
downgraded
shares to Hold. His price target is $ 525 a share.)
That’ s three in the plus column for Elon Musk’ s company. What about deliveries? Tesla says it will “ comfortably exceed 500,000 deliveries ” this year.
Bank of America
analyst
John Murphy
models about 520,000 vehicle sales for Tesla in 2020, up about 40% from the 367,000 sold in 2019. So it looks like delivery numbers will be good enough. Tesla appears to have gone four for four.
( Murphy, for his part, rates Tesla shares the equivalent of Sell and has a $ 350 price target.)
Tesla will host an
earnings conference call
at 6:30 p.m. ET. Analysts will have a chance to pepper management with questions about a range of topics, including the Model Y launch, Chinese Model 3 production, and if the Wuhan coronavirus will affect 2020 deliveries.
It was better-than-expected
third-quarter earnings
that kicked off the stock’ s rally a few months ago. The company had also launched its Cybertruck and started delivering Model 3 vehicles from its Chinese facility. The Shanghai plant produced cars less than a year after breaking ground.
Now the 2020 outlook may keep the rally going.
Write to
Al Root at
allen.root @ dowjones.com | business |
Dow Inc. earnings Q4 2019 | Dow Inc. Chemicals maker Dow Inc reported better-than-expected quarterly profit and revenue on Wednesday, helped by higher volumes in Asia as well as cost cuts, and pointed to a recovery in demand this year on the back of easing trade tensions.
Dow has been cutting costs to offset a drop in demand for chemicals used in plastics, building materials, and paints, amid a global slowdown.
The company said it had reduced costs by $ 35 million in the quarter and would make further cuts this year.
`` ( 2020 will see) not necessarily a snapback but improving demand as we go through the year just based on restocking to a normal demand pattern, '' Chief Financial Officer Howard Ungerleider told Reuters.
An oversupplied market and uncertainties stemming from a prolonged U.S.-China trade war have also hit prices for polyethylene, the main ingredient used in making most plastics. The company's overall prices declined by 12% in the quarter.
Volumes fell 2%, primarily due to weakness in its hydrocarbon and energy unit, which sells by-products of oil refining. The drop was largely due to planned maintenance activity in Europe.
Sales fell across all its three businesses, with its biggest unit that makes chemicals used in packaging and specialty plastics posting an 18% drop.
However, Dow's results were boosted by double-digit growth in China. Leading into the Chinese New Year, Dow saw strong demand, with many customers either maintaining or buying additional inventory, Ungerleider said.
Commenting on the coronavirus outbreak, Ungerleider said it was `` too soon to tell '' the impact, but added it may be a positive for Dow's business as it supplies to the medical and health sectors.
Dow, spun off in April after chemical conglomerate DowDuPont split into three, posted operating earnings of 78 cents per share, excluding certain items. Analysts had on average estimated profit of 74 cents, according to Refinitiv IBES data.
The company posted a net loss available to shareholders of $ 2.32 billion in the three months ended Dec. 31, compared with a profit of $ 891 million, primarily as it took a $ 2.9 billion goodwill impairment, restructuring, and asset-related charges.
Net sales fell 14.6% to $ 10.2 billion, but beat estimates of $ 10.07 billion.
Sister companies DuPont, which makes chemicals used in the automotive and electronic industries, and Corteva, which makes pesticides and seeds, are set to post their quarterly reports on Thursday. | business |
US-China phase one trade deal could be disrupted by coronavirus outbreak | A recent trade deal between Beijing and Washington could suffer `` collateral damage '' if the spread of coronavirus in China causes prolonged demand disruption, according to a recent report by Panjiva Research.
`` China has committed to a 88.3% increase in imports of manufactured goods from the U.S. in 2021 versus 2017, '' analysts at Panjiva Research wrote in a note dated Tuesday, referring to the partial trade deal signed between the two economic powerhouses in mid-January. `` A prolonged demand interruption could make delivering those targets more difficult. ''
Those comments come as China battles to contain a virus outbreak that has infected at least 5,900 and killed more than 100 people in the country, sending jitters across markets globally as investors weigh its potential economic impact.
The Chinese city of Wuhan, the capital of Hubei province, is the epicenter of the outbreak, and authorities have placed multiple cities in the province under partial or complete lockdown. Wuhan and the surrounding region of Hefei and Jiangsu — that have also been shut down due to the virus outbreak — are major manufacturing hubs that work with American firms.
`` An analysis of Panjiva shipment data shows over 450 U.S. importers were supplied by companies located in Hubei province, '' the report said.
To be clear, the Centers for Disease Control and Prevention said there is currently no evidence the virus can be transmitted through imported goods from China.
While a lot remains unknown about the new virus, coronaviruses are generally often spread by respiratory droplets, the CDC said, adding that there have not been any cases of the new virus in the U.S. that's associated with imported products.
Global manufacturing powerhouse Hon Hai ( also known as Foxconn) was among the top five companies importing to the U.S. from the Hubei region, according to Panjiva Research. Taiwan-based Foxxconn is the world's biggest contract manufacturer of electronics and the largest assembler of Apple products.
Apple CEO Tim Cook said Tuesday the ongoing coronavirus outbreak in China has impacted the Cupertino-based tech giant's operations in the country.
Cook told investors on Apple's quarterly conference call on Tuesday that the firm has `` some suppliers '' in the Wuhan area, adding that at least some of its manufacturing facilities elsewhere in China will remain shuttered until Feb. 10, as recommended by the Chinese government.
Overall, managing the spread of the virus will be a `` major distraction '' from the trade deal, said Scott Kennedy, senior advisor and trustee chair in Chinese Business and Economics at the Center for Strategic and International Studies.
`` Meeting targets in the trade deal would fade in comparison to managing the domestic politics and economics of this crisis, '' he tweeted.
— CNBC's Evelyn Cheng and William Feuer contributed to this report. | business |
Potential global spread of new coronavirus -- ScienceDaily | A report by the University's WorldPop team has found Bangkok ( Thailand) is currently the city most at risk from a global spread of the virus -- based on the number of air travellers predicted to arrive there from the worst affected cities in mainland China. Hong Kong ( China) is second on the list, followed by Taipei ( Taiwan, the Republic of China). Sydney ( 12), New York ( 16) and London ( 19) are among 30 other major international cities ranked in the research.
The most 'at-risk ' countries or regions worldwide are Thailand ( 1), Japan ( 2) and Hong Kong ( 3). USA is placed 6th on the list, Australia 10th and the UK 17th.
Within mainland China, the cities of Beijing, Guangzhou, Shanghai and Chongqing are all identified as high-risk by the researchers, along with the Chinese provinces of Guangdong, Zhejiang, Sichuan and Henan.
Andrew Tatem, Director of WorldPop and professor within Geography and Environmental Science at the University of Southampton, says: `` It's vital that we understand patterns of population movement, both within China and globally, in order to assess how this new virus might spread -- domestically and internationally. By mapping these trends and identifying high-risk areas, we can help inform public health interventions, such as screenings and healthcare preparedness. ''
The team at WorldPop used anonymised mobile phone and IP address data ( 2013-15) 1, along with international air travel data ( 2018) 2 to understand typical patterns of movement of people within China, and worldwide, during the annual 40-day Lunar New Year celebrations ( including the seven day public holiday from 24 to 30 January).
From this, they identified 18 Chinese cities ( including Wuhan) at high-risk from the new coronavirus and established the volume of air passengers likely to be travelling from these cities to global destinations ( over a three month period). The team was then able to rank the top 30 most at-risk countries and cities around the world.
The researchers acknowledge that their analysis is based on 'non-outbreak ' travel patterns, but highlight that a high proportion of people travelled with symptoms at an early stage of the outbreak, before restrictions were put in place. In fact, travel cordons are likely to have only coincided with the latter stages of peak population numbers leaving Wuhan for the holiday period. According to Wuhan authorities it is likely more than five million people had already left the city.
Lead report author Dr Shengjie Lai of the University of Southampton comments: `` The spread of the new coronavirus is a fast moving situation and we are closely monitoring the epidemic in order to provide further up-to-date analysis on the likely spread, including the effectiveness of the transport lockdown in Chinese cities and transmission by people returning from the Lunar New Year holiday, which has been extended to 2 February. ''
WorldPop at the University of Southampton conducted this research in collaboration with the University of Toronto, St Michael's Hospital Toronto, disease surveillance organisation Bluedot in Toronto and the China Centre for Disease Control and Prevention.
Full data can be found in the report on the WorldPop website at: https: //www.worldpop.org/events/china.
Notes
1) De-identified and aggregated domestic population movement data ( from 2013 to 2015), derived from Baidu Location-Based Services ( LBS).
2) International air travel data ( 2018), obtained from the International Air Transport Association ( IATA) | science |
Amazon restricts employee travel to China as coronavirus spreads | Amazon has started restricting employee travel to China as the coronavirus continues to spread, a spokesperson confirmed to CNBC.
`` We place tremendous value and focus on the well-being and safety of our employees, '' an Amazon spokesperson said. `` Out of an abundance of caution, we are restricting business travel to and from China until further notice and encouraging our employees to follow the health and safety guidelines provided by international health agencies such as the CDC and WHO. ''
Amazon said it's banning all non-essential travel to the country, but if employees must travel to China, they have to receive approval first. The company also recommended that employees who are or expect to travel back from one of the affected provinces of China to work from home for two weeks. If they start to experience symptoms, Amazon has urged employees to seek medical attention before returning to the office.
The company does not have offices in Wuhan, China, where the majority of coronavirus cases have been reported. But it does operate offices in other areas of the country, including Beijing, Shenzen, Shanghai and Guangzhou. Amazon's cloud-computing, retail and device divisions are among its businesses that have teams in the country.
Amazon joins a growing list of U.S. technology companies that have limited work in China due to the coronavirus outbreak. Microsoft, Facebook, Google and Apple have all announced similar moves, while other companies including Disney, McDonald's, Starbucks and Ford Motor have either suspended operations or instituted travel restrictions there.
More than 100 people have died from the disease, while total confirmed cases have risen to more than 6,000. The majority of confirmed cases are in China, but within the last week, five cases have been confirmed in the U.S. | business |
Apple Is on the 5G Sidelines While Huawei, Samsung Dominate Early Sales | Huawei and Samsung are dominating the early 5G phone market. Apple has been on the sidelines.
Photograph by STR/AFP via Getty Images
Huawei Technologies and
Samsung
are dominating the early market for 5G mobile phones,
according to data from research firm Strategy Analytics
, with
Apple
expected to remain on the sidelines until later this year.
The new data show that global shipments of 5G phones reached 19 million units in 2019, with demand “ much higher than expected. ” That’ s up from zero 5G phones in 2018.
Huawei was the market leader with 37% of the market, most of those sold in China. Samsung had 36% of the market, selling 5G phones in a broader range of markets, including South Korea, the U.S. and the U.K. Vivo, which sells phones primarily in China, had 10.7% of the market. China-based Xiaomi, which sells phones in Western Europe as well as domestically, had 6.4% of the market. South Korea’ s
LG
rounded out the top five, with a 4.8% share.
Editor's Choice
The 5G phone sales last year were just the tip of the iceberg: the game will really get going in 2020.
At the CES trade show in Las Vegas
earlier this month,
Qualcomm
( ticker: QCOM) President Cristiano Amon predicted that 200 million 5G smartphones will be sold in 2020, and growing from there. Apple ( AAPL) is going to be a little late to the party, with the company widely expected to introduce its first 5G phones this fall. In commenting on Apple’ s December quarter earnings today, some analysts wondered if stronger-than-expected demand for Apple’ s iPhone 11 lineup might be stealing some early potential demand away from the 5G launch.
Meanwhile, the emerging coronavirus issue could have an impact on the speed of 5G adoption. Without referring specifically to 5G,
Apple CEO Tim Cook on the company’ s earnings call Tuesday
cautioned that the virus issue could affect both its partners in China and consumer demand in the country.
Strategy Analytics
Executive Director
Neil Mawston
cautioned in a statement that “ the recent coronavirus scare is currently restricting trade in some parts of China, ” which could cause a slowdown in 5G supply or demand across Asia or world-wide in the 2020 first half. “ Industry players should be prepared for bumpy 5G sales in some markets, ” he added.
Write to
Eric J. Savitz at
eric.savitz @ barrons.com | business |
Many global firms, excluded from epidemic insurance, face heavy coronavirus costs | With 132 deaths in China and new cases being reported around the world, companies are set to face billions of dollars in losses linked to events and travel cancellations and closure of businesses, they said.
The virus originated in the city of Wuhan, forcing airlines to cancel flights and companies including Facebook and HSBC to suspend travel to China.
`` For insurers, the bulk of the claims from this outbreak will come from businesses, mainly travel, hospitality and event firms, followed by mortality and healthcare costs, '' said a Hong Kong-based insurance sector lawyer with a global law firm.
Risk modelling firm RMS said it was too early to estimate insured losses.
While some large global firms buy coverage for communicable diseases, most `` standard insurance policies '' exclude such outbreaks to keep costs low, said the lawyer, declining to be identified as he was not authorised to speak to the media.
Global insurers typically cover risks such as earthquakes and plane crashes, but have been paring back exposure to certain risks, such as shipping, to avoid huge losses.
Previous viruses, such as SARS, Ebola and Zika, have also led insurers to be more cautious about exposure, with specific virus exclusions added to most basic coverage policies, industry insiders said.
The Severe Acute Respiratory Syndrome pandemic which spread to 37 countries in 2003 caused $ 4 billion worth of economic losses in Hong Kong, $ 3- $ 6 billion in Canada, and $ 5 billion in Singapore, according to insurance broker Marsh.
Insurance experts also told Reuters that most event cancellation policies would not cover the new virus.
`` A lot of these airlines and hotels are offering refunds to their customers, '' said Richard Coyle, London-based head of risk financing and non-standard solutions at Miller Insurance. `` Without adequate insurance in place, the airlines and hotels are absorbing the financial losses themselves. ''
A standard event cancellation policy issued by firms in the 99-member Lloyd's of London [ SOLYD.UL ] insurance market and elsewhere has a `` communicable disease '' exclusion, two underwriters said.
EXCLUSION
Companies buy business interruption policies with their property insurance to cover loss of revenue if they are forced to close temporarily, but those policies are also likely to exclude communicable diseases, an underwriter in London and insurance executives said.
`` The Asian hospitality industry is an obvious example of an industry already affected. For many lines of business... it is common market practice to have epidemic outbreak risk excluded, '' a Munich Re spokesman said.
While some firms including Munich Re have developed specific insurance products and policies for infectious diseases, not many firms have bought them, insurers said.
The impact on tourism and transport is also likely to hit supply chains in Asia, Narges Dorratoltaj, senior scientist at catastrophe risk modelling firm AIR, said.
Starbucks Corp on Tuesday became the first major U.S. company to warn of a financial hit from the virus.
The Shanghai government announcement that all companies in the city would not be allowed to start work before Feb. 9 will affect companies including Tesla Inc, General Motors and Volkswagen.
While most travel insurers are likely to reimburse costs associated with trip cancellations and medical expenses for policies bought before the spread of the virus, some are excluding the coverage for select destinations now, industry officials said.
Insurers Aviva, Allianz and AXA said individual policyholders would be covered if they are impacted by the virus, provided they follow travel advisories from governments.
( Reporting by Noor Zainab Hussain in Bengaluru, Carolyn Cohn in London, Sumeet Chatterjee in Hong Kong and Suzanne Barlyn in New York; Editing by Nick Macfie)
By Noor Zainab Hussain, Carolyn Cohn and Sumeet Chatterjee | business |
How Los Angeles Counts Its Homeless | Good morning.
( Don’ t get California Today by email? Here’ s the sign-up.)
It felt a bit like driver’ s ed, with the harsh fluorescent lights overhead and the disposable cups of industrial-grade coffee in our hands.
In a video playing at the front of the room, a pleasant voice explained how to identify a person experiencing homelessness: You simply remember, “ A, B, C, ” for appearance ( layered clothing and disheveled hair, for instance), behavior ( sleeping on the ground), and condition ( refers to a vehicle, perhaps with its windows covered).
Around me, dozens of volunteers listened, just closely enough to get the idea.
It was Thursday night, in the basement of Echo Park United Methodist Church, and we were waiting to go out, clipboards in hand, to help perform the annual count of Los Angeles’ s homeless population.
Last week, similar point-in-time counts of homeless populations took place around the state.
Like the census, the counts are federally mandated and imperfect, and the results help determine how and where money flows.
Gov. Gavin Newsom participated in the count in San Diego, where he lauded volunteers for “ stepping up and being part of the solution. ”
This year, the counts took place against the backdrop of a housing emergency that has reshaped life across the Golden State and dominated the attention of policymakers at every level.
In the Echo Park neighborhood of L.A., near where I live, tensions had been rising over an encampment in a grassy clearing on the northern edge of Echo Park Lake. Though city officials have said the area needs to be cleaned, residents and activists have said unpredictable sweeps and citations are really meant to push the unhoused out of a public space.
Some of the volunteers said they were planning to join residents of the encampment in a protest the next morning. The count, they said, was an important way of ensuring officials confront the full scope of homelessness in their communities.
More broadly, volunteers told me it was the magnitude of the crisis they saw every day that moved them to spend four hours of their evenings looking for people sleeping in alleys or doorways and counting tents.
Ceraun Loggins, 29, told me they moved from Washington, D.C., in April. They bike to work, and seeing the number of people living on the streets, they said, “ was a punch to the gut. ”
Joining the count seemed like a simple way to help.
“ It’ s like one of these invisible mechanisms, ” they said. “ You don’ t think about how it has to happen. ”
After the short video, there was a mildly chaotic shuffle as the volunteers broke into groups of two to four. Each team was assigned a census tract. Some were walkable. Some, tucked higher into the hills, required a car.
The Los Angeles Homeless Services Authority gathers more specific demographic information about who is experiencing homelessness in a separate survey.
This time, though, we were told to count visually — not to engage.
I tagged along with a group of four, all in our 20s or 30s. We walked to our narrow rectangle tract, which was lined by quiet apartment buildings set back above the street.
We saw a woman rifle through a trash can before continuing down the sidewalk. She nodded at us and said something quietly as she passed. We nodded back but didn’ t ask where she was headed.
A member of our group, Chloe English, 29, made a mark on the form.
“ Well, we got a grand total of one, ” she said at the end of our route. She paused. “ It’ s a nice thing we only encountered one. ”
Of course, in another tract, that most likely would have been different.
Still, I was struck by how the task felt mundane, and enormous at the same time: There aren’ t people living in their cars or sleeping outside on every block in L.A. County. But someone has to check every block to know.
On Sunday morning, I visited the encampment by the lake at the center of the protest. Residents sat outside their tents and chatted.
I asked Jasmine Martinez, a 33-year-old Angeleno who said she’ s lived in the camp for about four months, whether she’ d heard anything about the point-in-time count. She hadn’ t.
Ms. Martinez said she had been spending her time struggling to navigate the labyrinth of services available to people experiencing homelessness. She was seeking therapy and trying to access housing vouchers.
In the meantime, she said, she felt safe in the park — safer than she did on Skid Row or in shelters.
“ Here, we have a family, ” she said. “ A lot of us are growing up on our own. ”
We often link to sites that limit access for nonsubscribers. We appreciate your reading Times coverage, but we also encourage you to support local news if you can.
San Francisco’ s public works director, Mohammed Nuru, has been accused of bribery and corruption in a number of alleged schemes, including one in which federal authorities say he steered contracts for bathroom trailers and shelters for the homeless to an associate. [ Mission Local ]
Also, Mr. Nuru was called “ Mr. Clean, ” a man whom four San Francisco mayors, including London Breed, could rely on to clean up messes quickly and without question. But there were bright red flags over the decades. [ The San Francisco Chronicle ]
A 13-year-old fan took a blurry selfie with Kobe Bryant at the Mamba Sports Academy on Saturday afternoon. It may have been the last picture taken of one of the world’ s most famous athletes. [ The New York Times ]
Here are the latest updates on the investigation into the crash. [ The New York Times ]
And here’ s a look at how brands are navigating uncharted territory in marking his death. [ The New York Times ]
A chartered plane leaving the center of China’ s coronavirus outbreak was expected to land at March Air Reserve Base in Riverside County, on Wednesday. The plane’ s 200 passengers include State Department officials and other Americans living in Wuhan, officials said. [ The New York Times ]
Also, here’ s what travelers need to know. [ The New York Times ]
After almost three years without a contract, the bargaining team for about 17,000 health care workers reached a tentative deal with the University of California, ending one of the institution’ s longest-running labor disputes. [ The Sacramento Bee ]
Apple’ s profit grew for the first time in a year with the help of an old friend: the iPhone. [ The New York Times ]
A stretch of San Francisco’ s Market Street is set to officially go car-free starting this morning. Here are the answers to seven questions about the change. [ ABC7 ]
The Los Angeles-raised pop star Billie Eilish is a style icon. Here’ s what her look signals about Gen Z and shifting femininity. [ The New York Times ]
Thinking about watching Gwyneth Paltrow’ s new Goop Netflix show? Depending on how you feel about what is essentially soulful sponcon, you might like it. You also might not. At all. [ The New Yorker ]
If you missed it, here’ s how an artist born in New Zealand combined Patagonia vests and Margaret Thatcher to create a visual treatise on inequality and global capitalism now on display in a San Francisco gallery. [ The New York Times ]
California Today goes live at 6:30 a.m. Pacific time weekdays. Tell us what you want to see: CAtoday @ nytimes.com. Were you forwarded this email? Sign up for California Today here.
Jill Cowan grew up in Orange County, graduated from U.C. Berkeley and has reported all over the state, including the Bay Area, Bakersfield and Los Angeles — but she always wants to see more. Follow along here or on Twitter, @ jillcowan.
California Today is edited by Julie Bloom, who grew up in Los Angeles and graduated from U.C. Berkeley. | business |
Coronavirus: Flight of US citizens from Wuhan arrives in California, CDC says | U.S. agencies said Wednesday that the flight carrying U.S. citizens evacuated from Wuhan, the epicenter of the coronavirus outbreak, safely arrived in California.
The Centers for Disease Control and Prevention announced Wednesday the flight landed at the March Air Reserve Base in Riverside, California. A team of CDC medical officers screened the nearly 200 passengers upon their arrival.
The flight was carrying U.S. State Department personnel as well as American civilians.
`` We have taken every precaution to ensure their safety, '' Dr. Nancy Messonnier, the director of the National Center for Immunization and Respiratory Diseases, told reporters on a conference call Wednesday. `` In these returning travelers... we want to take our time to fully assess the risk. ''
The government-chartered flight departed from Wuhan Tianhe International Airport and touched down in Anchorage, Alaska, to refuel before continuing on to California. All passengers were screened twice in Alaska, and CDC health officials approved them all to continue, the Alaska Department of Health and Social Services said. All passengers were screened twice before departure in China, too, the Alaska DHSS said, and monitored during the flight.
`` For many of us directly involved, this has been a moving and uplifting experience, '' said Alaska's chief medical officer, Dr. Anne Zink. `` The whole plane erupted in cheers when the crew said, 'Welcome home to the United States. ' ''
The CDC said all passengers have been asked to remain at the March Air Reserve Base for further CDC screening and testing. The CDC has 20 staff on hand to monitor their health, Messonnier said. If any passengers begin to exhibit symptoms consistent with the coronavirus, the CDC said, they will be transported to a hospital.
The CDC is currently monitoring 165 individuals for possible exposure to the virus in the U.S. So far, five people have tested positive, 68 individuals have tested negative and the CDC is still awaiting results for 92 individuals.
The coronavirus outbreak has now killed 133 people in China and infected more than 6,150 people around the world. WHO officials said Wednesday there are 71 cases outside of China in 15 other countries.
WHO Director-General Tedros Adhanom Ghebreyesus said the `` continued increase in cases and the evidence of human-to-human transmission outside of China are, of course, most deeply disturbing. '' The illness produces a range of symptoms, with about 20% of the patients developing severe illnesses, including pneumonia and respiratory failure, he said.
`` Although the numbers outside China are still relatively small, they hold the potential for a much larger outbreak, '' Tedros said.
CNBC's Berkeley Lovelace contributed to this report. | business |
Tesla ( TSLA) Q4 2019 earnings | Tesla has reported fourth-quarter results, and it's a beat on earnings. The stock spiked as much as 13% on the news after hours.
Here's how the company did versus expectations:
Tesla said it expects positive cash flow and net income on a continuing basis going forward, with possible exceptions as it launches and ramps up production for new products.
The company's automotive gross margins were down slightly year-over-year and sequentially at 22.5% for the quarter. The company said it had already begun a production ramp for Model Y, its newest crossover SUV, at its Fremont, California car plant. The company also has plans to build the Model Y eventually at a factory it plans to build in Brandernburg, Germany in 2021.
Tesla shared a photo of the production version of the Model Y in its earnings report:
For 2020, Tesla said vehicle deliveries should `` comfortably exceed 500,000 units. ''
On the energy storage and solar side of Tesla's business, the company said it deployed 54 MW of solar in Q4, up sequentially by 26% and contributing to $ 436 million in revenue for the segment. It made even more money in the quarter, $ 580 million, from services and other business, which includes everything from repairing its customers ' cars to selling merchandise to fans.
The company guided that solar and storage deployments should grow at least 50% in 2020.
Tesla had already reported deliveries of 112,000 vehicles globally during the fourth quarter, a quarterly best for the company. That number significantly topped Wall Street estimates, and hit the low-end of Musk's year-end sales goal.
One way Tesla achieved profitability in Q4 was by operating fairly lean on the retail and service side of its business, including repair shops and Superchargers both.
Tesla only added 4% more stores and service locations to its operations, sequentially, representing 13% more year-over-year. According to its Q4 2019 report, it now has 429 of these locations. Tesla grew its mobile service fleets year-over-year by 81% however. It now operates 743 mobile service units, it said, just 3% more than it had last quarter.
The company now operates 1,821 Supercharger stations, amounting to 16,104 individual connections where Tesla drivers can charge their cars when they are away from home. That's just a 10% increase from Q3 2019, and an increase of 28% in charging locations, and 34% increase in connectors year-over-year for a growing customer base.
Shares in Tesla have risen by more than 120% since the company's Q3 2019 earnings update in October last year. At that time, Tesla notched a surprise profitable quarter following deep spending cuts, expansion of Model 3 sales outside the U.S. and the recognition of at least $ 30 million in revenue related to an Autopilot update that brought Tesla vehicles a so-called Smart Summon capability.
Tesla continued to rally after that update, with investors bullish about its prospects in China, especially. The company opened a car plant in Shanghai ahead of schedule. Executives are expected to offer guidance in consideration of the coronavirus epidemic impacting the factory and sales, potentially, in mainland China.
Tesla's earnings call is scheduled for 6.30pm ET on Wednesday.
Follow @ CNBCtech on Twitter for the latest tech industry news. | business |
Coronavirus cases in China overtake SARS and impact could be 'more severe ' | The number of coronavirus cases in China has already surpassed that of SARS, and the economic impact of the new virus from Wuhan could be more severe than the 2002-2003 epidemic, or at least similar, according to economists.
It took more than 6 months for the number of SARS cases to surpass 5,000 in mainland China. China had 5,327 SARS cases between Nov. 1 2002 and July 31 2003, according to the World Health Organization.
On the other hand, it's taken about a month for the number of new coronavirus cases to climb past 5,000 on Tuesday. The new virus was first officially reported in the Chinese city of Wuhan on Dec. 31.
According to China's National Health Commission, the number of cases in mainland China stood at 5,974 at the end of Tuesday, up from 4,515 the prior day.
Initial figures from the government suggest that of the total confirmed cases in China, between 2% and 3% have died. The World Health Organization put the case fatality ratio for SARS at 7%.
The Wuhan coronavirus, which could lead to a type of pneumonia, has sparked alarm as it comes from the same family of viruses as SARS which killed some 800 people. The latest outbreak has killed 132 in China as of Wednesday's update.
`` There are reasons to worry about this time around compared to SARS because first of all, the connectivity in terms of transportation and economy is much greater nowadays ( as compared) to the SARS episode, '' Tommy Wu, senior economist at Oxford Economics, told CNBC on Wednesday.
The disease has spread beyond Wuhan to Beijing, Shanghai and other highly populated cities in the country. Cases in other parts of Asia such as Thailand, Japan, Singapore and South Korea, have also been reported. In Europe, cases have been reported in France and Germany, and the United States currently has 5 confirmed cases.
`` We believe the economic impact of the coronavirus could be bigger in comparison to SARS in 2003, '' wrote analysts from Nomura in a Wednesday report.
China's real GDP growth plunged by 2 percentage points ( pp) from the first quarter to the second quarter of 2003 due to the SARS outbreak, Nomura analysts noted. `` Based on our assumptions, real GDP growth in Q1 2020 could materially drop from the 6.0% pace achieved in Q4 2019, on a scale perhaps bigger then 2pp registered during the SARS outbreak in 2003. ''
However, the analysts pointed out that `` the coronavirus may prove to be only a temporary shock ( both on the demand and supply sides) and may not necessarily leave a long-lasting impact. ''
Still, `` the scale of the current slowdown and timing of the recovery are mainly determined by the unfolding coronavirus, which remains uncertain, '' Nomura said.
Oxford's Wu also flagged the timing of the outbreak, which took place just before the Lunar New Year holiday, when hundreds of millions of Chinese traveled domestically and internationally to be with their families during the festivities.
`` The timing is also important because this time around is during Chinese New Year, where there are mass movements of citizens around the country going back home for family reunion. And during the next couple weeks, there 'll be a massive flow coming back from home to the cities they work, '' Wu said. `` That's why it's possible that this time around the impact could be more severe than during the SARS episode. ''
`` Even if the coronavirus outbreak is brought under control quicker than SARS was in 2003, the economic impact now looks likely to be of at least a similar scale, '' wrote Mark Williams, chief Asia economist at Capital Economics in a note on Monday.
According to an estimate by Capital Economics, SARS lowered China's growth by three percentage points in its worst-affected quarter. Overall, growth slowed from 8% year-on-year to 5% during that outbreak.
`` The very limited data available so far suggest that the current impact is not yet that severe but it could end up being similar, '' Williams said. `` But it is now certain that the outbreak will have a significant impact on China's GDP this quarter. ''
He cited the slowdown in activity within China. Beyond the Lunar New Year holiday, Shanghai has told businesses to remain shut for an additional week, while travel restrictions are in place in around 20 cities. Many long-distance bus and high-speed rail services have also been halted.
`` On top of these... steps, many businesses such as restaurants have chosen to close and people are avoiding crowded places, '' Williams said.
He flagged that rail passenger numbers on Saturday — the first day of the Lunar New Year — was 42% lower compared to the equivalent 2019 period, while road passenger traffic decreased by 25%.
In May 2003 — the peak month of the SARS outbreak — year-on-year declines were 57% for rail passenger traffic and 45% for road passenger traffic, Williams said.
`` While the more open and proactive official response this time may prove more effective in containing the virus, it could also make the initial economic disruption larger, '' he pointed out.
Clarification: This story has been updated to clarify that there is no clear consensus on what the death rate or mortality rate for the new coronavirus is, or whether it can yet be determined. | business |
Fourth quarter GDP could show economy entered a slower growth patch at year-end | Economic growth in the final quarter of the year is expected to be on par with the third quarter's 2.1%, but it is also likely to herald the start of a slower trend that could continue through the first half of this year.
Fourth quarter growth is expected to have been 2.1%, according to Dow Jones. But there's a wide range of forecasts for the first reading — from 1.4% at JPMorgan to 2.5% by Amherst Pierpont.
Markets turn their focus to gross domestic product data, expected at 8:30 a.m. ET Thursday, after the Federal Reserve's meeting on Wednesday provided little new insight into Fed rate policy. The Fed did make it clear that it sees a more moderate consumer, which should show up in the softer consumption number in GDP.
On Wednesday, the Commerce Department reported that the U.S. goods trade deficit rose sharply in December as imports rebounded and businesses were more wary about accumulating inventory. The goods trade gap, which has fallen for three straight months due to declining imports, surged 8.5% to $ 68.3 billion last month.
That prompted some economists to trim fourth quarter growth forecasts. Goldman Sachs economists, for instance, sliced their forecast for growth by one tenth to 1.8%.
`` The trade war between China and the U.S. is over for now, but the trade deficit red ink remains, which makes markets scratch their heads and wonder what that was all about, '' notes Chris Rupkey, chief economist at MUFG Union Bank.
Rupkey said the surprise jump in the trade gap now has made it a toss up for whether growth will be above or below 2%.
`` The trade deficit is still there. The trade deal didn't fix, '' said Diane Swonk, chief economist at Grant Thornton. Swonk expects fourth quarter growth at about 1.7% and said the economy is sliding into a softer period for a number of reasons.
`` It's exacerbated by the cuts at Boeing, a slower consumer and persistently weak business investment, '' she said. `` We ended on a weak note at the end of the year and that's going to show up in the data. '' The Boeing cuts in production should not have an impact on GDP until the first quarter.
The wide range of forecasts for fourth quarter GDP growth could make for some market volatility around the official reading when it is released Thursday. The median forecast for Q4 GDP growth is also 2.1% in the CNBC/Moody's Analytics Rapid Update survey of economists.
Jonathan Millar, U.S. economist at Barclays, expects 2% growth, and he says one of the issues forecasters are facing is the impact of volatile oil prices, which rose through most of the fourth quarter.
`` One thing to keep an eye on is inventories. Inventory data can be complicated at times when oil prices are moving around a lot. It's an accounting thing, when there's a change in the valuation of inventories, '' he said. `` The book values reported by firms may understate the amount inventories are going up. The stuff that's flowing in costs more than the stuff that's flowing out. That distorts the numbers. ''
Rupkey noted the $ 5.3 billion widening in the December goods deficit occurred as imports of industrial supplies rose $ 3.8 billion to $ 44.6 billion. He said that industrial supplies includes includes petroleum and petroleum products, and `` petro-imports may sink back with the price of crude oil in the coming months. ''
Millar said he expects to see a downturn in first quarter growth to a pace of 1.5%, based on Boeing's production cuts following troubles with the Boeing 737 Max. Boeing and the ripple effect to other businesses will knock an estimated half percentage point off of growth in the first quarter. It's also unclear what if any impact the coronavirus might have on global growth in the first quarter.
The second quarter should be slightly better at 2%, but then third quarter could spring back once Boeing is back on line, at 2.5%, he said.
As for the fourth quarter, the consumer pulled back, even though it was holiday shopping season. `` You had consumer spending at 3.2% in Q3. I have consumers spending slowing in Q4, growing at about 2.8%, '' said Ward McCarthy, chief financial economist at Jefferies.
Fourth quarter growth is in line with the third quarter, and also the second quarter, of 2%, but off from the first quarter's 3.1%. | business |
Dow CEO says coronavirus increasing demand for cleaning products | Dow CEO Jim Fitterling told CNBC on Wednesday that the coronavirus outbreak is driving up demand for some of the company's products that are used in household cleaning items.
Fitterling, appearing on `` Squawk on the Street '' after his company topped analyst expectations for its fourth quarter, said Dow's cleaning products are seeing increased demand due to the rapidly spreading virus.
`` We 've seen some demand pull from coronavirus on things like cleaning materials for disinfectants, like you would use in household cleaners; non-wovens for masks and wipes and those kinds of things, '' Fitterling said. `` And I think as you see people stay at home and use more food from the grocery store, you're going to see a pull on packaging as well. ''
Fitterling said he's unsure what the overall impact of the virus would be for Dow, which sees Asia as a growth area.
`` I haven't seen a massive negative impact from the coronavirus yet, but we 'll watch that, '' he said, as the confirmed cases in the outbreak, which started in China, reached more than 6,000 with over 130 deaths.
Dow is not the only company that is seeing demand for some products rise due to the virus. Mike Roman, CEO of 3M, told CNBC on Tuesday that his company is `` going 24/7 '' to produce protective masks.
While coronavirus concerns may be helping some companies, it could slow economic growth in Asia, and specifically in China, which has implemented travel restrictions to fight the spread. | business |
Watch: WHO officials hold press conference on coronavirus as outbreak worsens | [ The stream is slated to start at 11 a.m. ET. Please refresh the page if you do not see a player above at that time. ]
The World Health Organization is holding its third press briefing Wednesday to discuss the flu-like coronavirus that has now killed at least 132 people and infected more than 6,150 people in dozens of countries around the world.
WHO was expected last week to announce whether the new virus was a global health emergency but officials said they postponed its decision to gather more data.
Executive director of WHO Health Emergencies Program Dr. Michael Ryan and head of WHO's Emerging Diseases and Zoonosis unit Dr. Maria Van Kerkhove are scheduled to speak.
Local authorities in China have quarantined the city of Wuhan, the epicenter of the outbreak, and a number of other major cities in the country.
CDC officials said Monday that the number of `` patients under investigation '' in the U.S. has almost doubled since last week to 110 across 26 states. There remains just five confirmed cases of the coronavirus in the U.S. and the disease is not spreading through human-to-human contact in the U.S. However, German officials confirmed Tuesday what is believed to be one of the first person-to-person transmissions of the infection outside of China.
WHO doesn't enact the emergencies lightly, health experts say. The last time WHO declared a global health emergency was in 2019 for the Ebola outbreak in eastern Congo that killed more than 2,000 people. The agency also declared global emergencies for the 2016 Zika virus, the 2009 H1N1 swine flu and the 2014 polio and Ebola outbreaks.
One of the criteria used to determine whether the coronavirus is an international health threat is whether the disease spreads locally once it arrives in new parts of the world, `` and that's a nuanced and important distinction to make, '' Ryan told reporters last week.
Subscribe to CNBC on YouTube. | business |
Coronavirus: British Airways cancels all flights to and from China | British Airways has stopped all direct flights to and from mainland China because of the coronavirus outbreak.
The airline said the suspension would be implemented `` with immediate effect '' following the viral outbreak that has caused 132 deaths and infected more than 6,000 people.
Beijing authorities have continued efforts to contain the virus, while other countries have begun to evacuate their citizens from the region.
Almost all deaths from the flu-like virus have occurred in the city of Wuhan and the surrounding province of Hubei, which remains on virtual lockdown.
See: Coronavirus live updates
British Airways normally operates daily flights to Shanghai and Beijing from Heathrow, but on Wednesday morning these were canceled without any indication of when they would resume.
`` We have suspended all flights to and from mainland China with immediate effect following advice from the Foreign Office against all but essential travel, '' British Airways said in a statement.
The airline apologized to travelers for the inconvenience but said `` the safety of our customers and crew is always our priority. ''
US. carrier United Airlines has already said it was suspending 24 U.S. flights to Beijing, Hong Kong and Shanghai between Feb. 1 and 8 because of low demand.
Air Canada and Cathay Pacific have also said they will reduce the number of flights in and out of China while Korean carrier Air Seoul has said it will halt all flights to China.
Indonesia's Lion Air said in a statement Wednesday that it would suspend all flights to China from February. Indigo, the Indian budget carrier, is to cancel all flights between Delhi and Chengdu from Feb. 1. Its regular flight to Guangzhou will continue.
Travel and airline stocks have fallen sharply over the last two weeks as fears over the potential of the coronavirus to become a global pandemic have grown. On Wednesday, shares of British Airways parent International Consolidated Airlines Group fell before rising 0.2% by 10 a.m. London time.
The decision by BA follows an advisory by the U.K. Foreign Office that says only essential travel should be taken to anywhere in China.
In the United States, the White House has told airline executives it had been considering suspending flights from China, people familiar with the matter have told CNBC.
As yet, the Donald Trump administration has backed away from that move, but the U.S. Centers for Disease Control and Prevention said Tuesday that screening for the virus would be expanded from five to 20 airports. | business |
US companies warn about the impact of coronavirus on earnings calls | A deadly spreading virus is now worrying some of the world's biggest companies.
The word `` virus '' or `` coronavirus '' was mentioned by 27 different S & P Composite 1500 companies on earnings calls this week, according to CNBC's screening using FactSet.
The Wuhan virus has infected more than 6,100 people in China, topping the number of cases from 2003's SARS virus. The coronavirus has killed more than 130 people and continues to spread throughout Asia and the U.S.
The virus is scaring Chinese citizens out of leaving their homes, pushing governments to consider or enact travel bans, and forcing investors away from stocks that rely on Chinese consumers. Now, the virus is worrying management at big U.S. businesses, including Apple, Starbucks and McDonald's.
Despite Apple's blowout earnings on Tuesday, Apple's range of guidance for next quarter is wider than typical. CEO Tim Cook attributed this change to uncertainty caused by the deadly coronavirus, which has shut down travel in parts of China.
`` We 've currently closed one of our retail stores and a number of channel partners have also closed their store fronts. Many of the stores that remain open have also reduced operating hours, '' said Cook. `` We're taking additional precautions and frequently deep cleaning our stores as well as conducting temperature checks for employees. While our sales within the Wuhan area itself are small, retail traffic has also been impacted outside of this area cross the country in the last few days. ''
Apple said it is working with its suppliers in the Wuhan area to mitigate any production loss.
The world's largest coffee chain Starbucks has closed more than half of its Chinese locations as the country battles the spread of the virus. Starbucks said the number of stores and the duration of closures are the two primary drivers of business impact. Executives said the Chinese locations that are still open have seen sales slow down, compared to historical numbers, sending the stock down 2.1% on Wednesday.
Starbucks CFO Patrick Grismer said the slower foot traffic in China as customers are hesitant to visit commercial centers is a big factor for the coffee company.
`` We 've taken action in our open stores to adjust operating hours. We 've also gone in and adjusted some of the product offerings based on supply chain availability, '' International, Channel Development and Global Coffee & Tea President John Culver said on the call. Starbucks said it was too early to change its earnings guidance.
McDonald's management also called the Chinese virus `` concerning '' on its earnings call on Wednesday.
`` We have closed all restaurants in the Hubei province, which is several hundred restaurants that have been closed, '' McDonald's CEO Chris Kempczinski said to investors on the call.
`` Just to put it in perspective, when you think about China, it does represent about 9% of our global restaurant count but it's about 4% to 5% of system-wide sales, and it's only about 3% of [ operating ] income. And so while, again, China is a critical market for us and we're very concerned about the situation over there, its actual impact on our business is going to be fairly small, assuming, again, that it stays contained to China, '' Kempczinski added.
Here are some of the other companies mentioning the virus on earnings calls this week.
3M
`` 3M is currently putting all its effort into organizing the manufacturing of face masks, and will do its best to maintain production during the Spring Festival. ''
A.O. Smith
`` At this time, our supply chain, we see no issues currently and going forward. we have a little caution on Q1 is because the Chinese New Year's festival falls into January and any time – it was January 25th. Any time it falls into January what we see is more interruption in the appliance market and less traction. ''
Crane & Co.
`` As I think about this, the risk is not so much with our – from a materiality standpoint, it's not so much with our existing facilities and dependencies. It's more the broader supply chain. It's going to be what happens in the Chinese supply chain all in and when I think about that some of the end segments that are a little more dependent than others would be Fluid Handling, Payment & Merchandising that – and that A & E very little and Engineered Materials nothing. ''
United Technologies
`` We actually went back and took a look at 2003 and the impact of the SARS virus, and as you 'll recall, air traffic slowed down significantly for about three months. And really there was about a six-month impact overall in the aftermarket. I would say there are two major differences today. One is the airlines are a hell of a lot healthier than they were in 2003. We were coming off of 9/11 and airline bankruptcies and no one had any money. The fact is, air traffic remains strong, but there will be a blip in Asia this quarter as a result of this. ''
Whirlpool
`` Obviously, when people don't go into stores the market will decline. You all know that our exposure to the China domestic market is limited.... The main exposure is somewhat limited in particular with one factory where we export from Chinese almost a thousand miles away from Wuhan. ''
PolyOne
`` We don't have any facilities in Wuhan directly, but we do have some associates there. So, we 've taken measures to restrict travel for all of our associates into and out of China. ''
Polaris
`` We do source some parts [ in China ] and we don't see a disruption from that. It's really – the restrictions that they have are more on people moving not parts moving. So we feel good about our supply chain being able to continue to function smoothly. '' | business |
Starbucks CEO Kevin Johnson on coronavirus and store closures in China | Starbucks CEO Kevin Johnson sought to tamp down concerns on Wednesday about how the coronavirus outbreak in China would impact the coffee chain's business there.
`` We 've been in China for 20 years. We realize that this is a temporary issue that we 've got to deal with, '' Johnson said on `` Squawk on the Street. '' `` We're doing it responsibly. We're doing it by prioritizing the health and well-being of our Starbucks partners. ''
Starbucks has closed more than half of its Chinese locations as the country battles the spread of the virus.
Johnson called it a `` very dynamic situation, '' stressing that `` when there's a concern, we will close stores. ''
`` We're dealing with this on a daily basis, '' he added.
Shares of Starbucks were trading down more than 2.5% early Wednesday, a day after the Seattle-based company beat expectations with fiscal first-quarter earnings but cautioned that the Wuhan coronavirus could alter its fiscal 2020 outlook.
Johnson said Wednesday the company had planned to raise its guidance.
But due to the spread of the virus, he said, `` We felt it was in the best interest to really better understand the implications of that. And as we do we're going to be transparent with our investors. ''
The total number of confirmed cases of the coronavirus reached more than 6,100 worldwide, with 132 deaths in China, Chinese and international health authorities said Wednesday.
China accounted for 10% of Starbucks ' $ 7.1 billion revenue during its first quarter.
Sales at Chinese locations open at least a year increased by 3% as Starbucks faces greater competition in the country, most notably from rival Luckin Coffee. The Xiamen, China-based rival recently overtook Starbucks as the largest coffee chain in the country, based on the number of stores.
Even with the ongoing situation around the coronavirus, Johnson said he remained bullish on Starbucks ' prospects in China. `` I am still so optimistic about the long-term growth potential that China presents. We will navigate this. ''
`` And guess what? Next year we're going to get to comp over this, '' he added. `` This does not change our outlook for our long-term double-digit growth at scale earnings model. ''
— CNBC's Amelia Lucas contributed to this report. | business |
Coronavirus live updates: Outbreak is 'grave concern ' as infections spread beyond China | The coverage on this live blog has ended — but for up-to-the-minute coverage on the coronavirus, visit the live blog from CNBC's Asia-Pacific team.
All times below are in Eastern time.
China's National Health Commission confirmed an additional 38 deaths and 1,737 new cases. Officials said that brings their total to 170 deaths and 7,711 cases. They also said 170 people had been cured and discharged.
Amazon has started restricting employee travel to China as the coronavirus continues to spread, a spokesperson confirmed to CNBC. `` We place tremendous value and focus on the well-being and safety of our employees, '' an Amazon spokesperson said. `` Out of an abundance of caution, we are restricting business travel to and from China until further notice and encouraging our employees to follow the health and safety guidelines provided by international health agencies such as the CDC and WHO. ''
The Hubei Health Commission said that the number of coronavirus deaths in the province rose by 37 to 162 at the end of Jan. 29. A total of 1,032 new cases of coronavirus were reported in the province.
A Microsoft spokesperson confirmed to CNBC that the company is advising its employee to work from home and cancel all non-essential business travel until Feb. 9 based `` on the evaluation of risk communicated by global health authorities. '' `` The health and safety of our employees and their families is a top priority, '' the spokesperson said.
Delta is temporarily reducing the number of weekly flights it operates between the U.S. and China due to significantly reduced customer demand prompted by global health concerns related to Coronavirus. To maintain options for customers, the airline will continue to operate from all current U.S.-China gateways. Delta currently operates 42 weekly flights between the U.S. and China. The airline will reduce this schedule to approximately 21 weekly flights, offering three to four weekly flights on the same routes. The reduced schedule will be reflected on Delta.com beginning Feb. 1 and will be effective February 6 through April 30.
Google is temporarily closing its China offices and restricting travel amid the outbreak of the coronavirus, a spokesperson confirmed to CNBC. The shutdowns, first reported by The Verge, will affect Google's offices in Hong Kong and Taiwan. The company has also placed temporary travel restrictions on workers flying to China and Hong Kong. Google has at least four offices in China's mainland and five in Taiwan, according to its website.
A flight carrying U.S. citizens evacuated from Wuhan, the epicenter of the coronavirus outbreak, safely arrived in California earlier Wednesday. The CDC said the flight landed at the March Air Reserve Base in Riverside, California. A team of CDC medical officers screened the nearly 200 passengers upon their arrival. The flight was carrying U.S. State Department personnel as well as American civilians. The plane departed from Wuhan Tianhe International Airport and touched down in Anchorage, Alaska to refuel before continuing on to California.
Federal Reserve Chairman Jerome Powell said the central bank is keeping a close watch on the outbreak. `` It's a very serious issue and I want to start by acknowledging the significant and considerable human suffering that the virus is already causing, '' he told reporters at a press conference, adding that it's too early to speculate on how it might impact the global economy. `` There is likely to be some disruption to activity in China and possibly globally based on the spread of the virus to date and the travel restrictions and business closures that have already been imposed. ''
France has confirmed a fifth case of the coronavirus — the daughter of an 80-year old man already hospitalized with the disease, according to French health minister Agnes Buzyn. France confirmed its first three cases of the Wuhan coronavirus on Friday and a fourth case on Tuesday. A first flight to repatriate French nationals from the Chinese town of Wuhan, the epicentre of the virus, was leaving France Wednesday night and a second flight would occur Thursday or Friday, she said.
Boeing raised concerns on Wednesday about the outbreak as airlines cut back service to China. Global air traffic growth in November rose by just 3.3% from a year earlier, reflecting `` the continuing influence of slower economic activity, geopolitical tensions and other disruptions, '' according to the International Air Transport Association. Boeing CFO Greg Smith noted the slower-than-usual growth, saying the `` impact of the coronavirus on near-term traffic growth is clearly a watch item this year. ''
The outbreak is starting to worry some of the world's biggest companies. The word `` virus '' or `` coronavirus '' was mentioned by 27 different S & P Composite 1500 companies on earnings calls this week, according to data compiled by CNBC using FactSet. Despite Apple's blowout earnings on Tuesday, the company's range of guidance for next quarter is wider than typical. CEO Tim Cook attributed this change to uncertainty caused by the deadly coronavirus, which has shut down travel in parts of China.
The coronavirus outbreak is driving up demand for some of Dow's cleaning products that are used in household cleaning items, CEO Jim Fitterling told CNBC. Fitterling said Dow's cleaning products are seeing increased demand due to the rapidly spreading virus. `` We 've seen some demand pull from coronavirus on things like cleaning materials for disinfectants, like you would use in household cleaners; non-wovens for masks and wipes and those kinds of things, '' Fitterling said. `` And I think as you see people stay at home and use more food from the grocery store, you're going to see a pull on packaging as well. ''
The spread of a fast-moving virus outside of China is of `` grave concern '' and is what's prompted the World Health Organization to reconvene an emergency meeting this week to decide whether it's a global health emergency. The coronavirus has spread to a handful of people through human-to-human contact outside of China, Dr. Mike Ryan, executive director of WHO's health emergencies programme, said at a press conference at the organization's Geneva headquarters Wednesday.
WHO is holding its third press briefing at 11:30 a.m. to discuss the flu-like coronavirus that has now killed at least 132 people and infected more than 6,150 people in more than a dozen countries around the world. WHO was expected last week to announce whether the new virus was a global health emergency but officials said they postponed its decision to gather more data. Executive director of WHO Health Emergencies Program Dr. Michael Ryan and head of WHO's Emerging Diseases and Zoonosis unit Dr. Maria Van Kerkhove are scheduled to speak. Watch the live press conference here.
Director-general of WHO Tedros Adhanom Ghebreyesus said he will reconvene the International Health Regulations Emergency Committee to discuss the coronavirus. The committee will help determine `` whether the current outbreak constitutes a public health emergency of international concern, '' Tedros said in a tweet.
Starbucks has closed more than half of its Chinese locations and won't hesitate to close more to keep its employees safe, CEO Kevin Johnson told CNBC. It's a `` very dynamic situation, '' he said, `` when there's a concern, we will close stores. ''
Finland on Wednesday confirmed its first coronavirus case on a Chinese traveler from Wuhan, China, the Finnish Institute for Health and Welfare said. The traveler is in isolation in Lapland's central hospital in northern Finland, it said in a statement, adding some 15 other people may have been exposed.
General Motors, the largest U.S. automaker in China, told employees there that it will keep its Chinese factories shut down through Feb. 9, a company spokesman said in an email to CNBC. China's factories have been closed as part of a nationwide manufacturing break to celebrate the Lunar New Year, but were originally due to reopen this week. Chinese officials have extended the plant shutdown to Feb. 9 as the nation tries to contain the coronavirus outbreak. GM's decision follows on Honda's announcement late Tuesday that it was keep motorcycle factories in China closed to Feb. 9. Automakers across the globe have been evacuating employees and restricting travel to China.
The total number of cases of the coronavirus reached more than 6,100 worldwide with 132 deaths in China, Chinese and international health authorities said Wednesday. Since the first patient was identified in Wuhan on Dec. 31, the number of coronavirus cases in China has mushroomed to more than 6,060, exceeding the total number of SARS cases in that country during the 2002-2003 epidemic. There were 5,327 SARS cases in China and 8,000 across the world between Nov. 1, 2002, and July 31, 2003, according to the World Health Organization.
FIS, the Chinese Ski Association and its Yanqing Local Organizing Committee, have canceled the men's Audi FIS World Cup races scheduled for Feb. 15 to 16 in the northwestern part of Beijing. It would have been the federation's first Alpine Ski World Cup in China and the first official test event for the 2022 Winter Olympics in Beijing, according to FIS President Gian-Franco Kasper. `` Although the risk level in Yanqing is low, the health and welfare of the athletes and all participants must take priority, '' Kasper said in an online statement.
British Airways has stopped all direct flights to and from mainland China because of the coronavirus outbreak. The airline said the suspension would be implemented `` with immediate effect '' following the viral outbreak that has caused 132 deaths and infected more than 6,000 people.
The chief executive of Novartis believes it will take at least 12 months to find a new vaccine to treat the coronavirus, with the fast-spreading nature of the outbreak a threat that must be taken `` really seriously. ''
[ To see updates from Asia overnight, click here. ]
—Reuters and CNBC's Christine Wang, Phil LeBeau, Jordan Novet and Annie Palmer contributed to this report. | business |
AMD stock slides as forecast, data-center segment come in lower than expected | Advanced Micro Devices Inc. failed to live up to Wall Street’ s high expectations Tuesday, damaging its high-flying stock.
AMD
AMD,
-0.75%
shares declined 4% in after-hours trading Tuesday and were down the same amount premarket Wednesday, after disclosing a lower-than-expected forecast with its fourth-quarter earnings report. The company said it expects revenue of $ 1.75 billion to $ 1.85 billion for the first quarter — analysts surveyed by FactSet had forecast revenue of $ 1.86 billion — and revenue growth of about 28% to 30% for the full year, roughly in line with analyst estimates.
The company’ s results topped Wall Street estimates, with fourth-quarter revenue of $ 2.13 billion rising from $ 1.42 billion in the year-ago period and topping the average analyst outlook of $ 2.11 billion, but sales in the segment containing data-center and gaming-console chips fell short of what analysts were expecting.
AMD’ s data-center sales are an important business for investors betting on big growth — AMD stock
was the biggest gainer on the S & P 500 index
SPX,
-1.23%
in both 2018 and 2019. AMD’ s attempt to get back into the server business involves challenging longtime rival Intel Corp.
INTC,
-0.25%
, which reported
better-than-expected data-center sales
last week.
AMD reported sales of $ 465 million from its enterprise embedded and semi-custom segment, which includes the company’ s Epyc line of data-center chips, while analysts had expected sales to rise 39% to $ 603.8 million. AMD did not specifically quantify how much data-center sales versus gaming-console sales figured into the numbers.
Weakness in the revenue outlook going forward is linked to gaming-console chip sales, which have been soft ahead of console makers Sony Corp.
US: SNE
and Microsoft Corp.
MSFT,
-1.50%
rolling out new PlayStations and Xboxes later in the year. AMD said in a statement that the sequential decline in revenue going into the first quarter “ is driven primarily by negligible semi-custom revenue which continues to soften in advance of the ramp of next-generation products, in addition to seasonality. ”
“ Game-console sales dropped like a rock and had nothing to do with Epyc, ” Patrick Moorhead, principal analyst at Moor Insights & Strategy, told MarketWatch. Moorhead, a former AMD executive, pointed out AMD’ s “ strong Epyc ” sales, and said he believes they more than doubled over the year-ago period.
“ Unfortunately, the numbers are combined, ” which means that any server growth could be cloaked by weakness in the console sales, he said.
Read:
Chip stocks catch brunt of tech decline, but coronavirus could benefit U.S. memory makers
On the conference call, AMD President and Chief Executive Lisa Su said data-center sales accounted for a “ mid-teens ” percentage of revenue for the quarter, adding that “ we are very focused on continuing to grow share the data-center market, and we feel good about our midyear market share targets. ”
“ From our standpoint, we see it as a good market environment for data center in both cloud as well as enterprise, ” Su said. “ When we look at our full-year revenue guide of approximately 28% to 30% for the year, the highest growth from percentage standpoint will obviously be servers. ”
In AMD’ s largest segment, computing and graphics chips, the company reported sales of $ 1.66 billion, while analysts expected a 52% rise in sales to $ 1.5 billion, according to FactSet.
The company reported fourth-quarter net income of $ 170 million, or 15 cents a share, compared with $ 38 million, or 4 cents a share, in the year-ago period. Adjusted earnings were 32 cents a share, while analysts had forecast earnings of 31 cents a share.
Read:
For chip companies, stocks soared as sales slumped in 2019 — what does that mean for 2020?
For the year, AMD reported net income of $ 341 million, or 30 cents a share, compared with $ 337 million, or 32 cents a share, in the prior year. Adjusted earnings were 64 cents a share, while analysts had forecast earnings of 62 cents a share. Annual revenue rose to $ 6.73 billion, compared with the Street’ s forecast of $ 6.71 billion, up from $ 6.48 billion in 2018.
Over the past 12 months, AMD shares have rallied 149%. In comparison, the S & P 500 index
SPX,
-1.23%
has gained 24%, the tech-heavy Nasdaq Composite Index
COMP,
-1.32%
has grown 31% and the PHLX Semiconductor Index
SOX,
-2.48%
has increased 51%.
Of the 38 analysts who cover AMD, 15 have buy or overweight ratings, 20 have hold ratings and three have sell or underweight ratings, with an average price target of $ 43.30. | business |
Coronavirus live updates: China says 132 people have died | This is a live blog. Please check back for updates.
All times below in Beijing time, beginning on Wednesday.
FIS, the Chinese Ski Association and its Yanqing Local Organizing Committee, have cancelled the men's Audi FIS World Cup races scheduled for Feb. 15 to 16 in the northwestern part of Beijing.
It would have been the federation's first Alpine Ski World Cup in China and the first official test event for the upcoming Winter Olympics in Beijing in 2022, according to FIS President Gian Franco Kasper. `` Although the risk level in Yanqing is low, the health and welfare of the athletes and all participants must take priority, '' Kasper said in an online statement.
Chinese state-run television network CCTV says on social media platform Weibo that the number of confirmed cases in the country has risen to 6,078 as of 6 p.m. Beijing time.
The chief executive of Novartis believes it will take at least 12 months to find a new vaccine to treat the coronavirus, with the fast-spreading nature of the outbreak a threat that must be taken `` really seriously. ''
Construction on housing structures and municipal infrastructure projects in Beijing will resume no earlier than midnight on Feb. 9, according to state media, citing a representative for the Chinese capital city's Commission of Housing and Urban-Rural Development.
That means the construction sites will lie dormant until at least the second week of February, while the city has yet to follow others in extending the Lunar New Year holiday past the nationwide Feb. 2 date.
A rapid escalation in the outbreak has pressured Chinese leadership, said Allison Sherlock, China researcher at the Eurasia Group. She also said the situation is `` probably the greatest political challenge that ( Xi Jinping has) faced since taking office in 2012. ''
`` We have suspended all flights to and from mainland China with immediate effect following advice from the Foreign Office against all but essential travel, '' British Airways said in a statement.
The airline apologized for the inconvenience, but said `` the safety of our customers and crew is always our priority. ''
The Japan Times reported, citing the Tokyo Metropolitan Government, that four people evacuated from Wuhan, China had either a cough or fever. The conditions were discovered by medical personnel and remaining passengers will also be tested for coronavirus, the report said. Earlier, the Times reported that Japan's foreign ministry said none of the evacuated passengers had been infected.
A recent report by Panjiva Research said Beijing may face challenges in meeting its U.S. purchase targets outlined in the `` phase one '' trade deal, if the coronavirus outbreak in China causes a `` prolonged demand interruption. ''
Visitors to the 10 open Beijing municipal parks will need to wear face masks and get temperature checks, Beijing Youth Daily reported, citing the parks authority. The parks have already cancelled Spring Festival activities, and the number of visitors has fallen sharply versus last year — Tuesday saw an 83% drop, the report said.
State-owned Emirates News Agency reported that the UAE has identified `` the first case of new coronavirus in the UAE for members of a family arriving from the Chinese city of Wuhan. ''
The UAE Ministry of Health and Prevention said `` the health condition of those infected is stable and under medical observation, '' according to the report. It did not immediately specify how many people were diagnosed with the virus.
Macao's total visitor arrivals during the Lunar New Year holiday fell 73.6% from last year, according to provisional government data. Mainland Chinese tourist arrivals fell 79.2% from last year, the government said.
Macao is a special administrative region of China and a major gambling hub in Asia. Shares of casino operators like Wynn Macau, Sands China and Galaxy Entertainment have been hit by concerns about the coronavirus outbreak. Hong Kong-listed shares of those companies were all more than 4% lower in Wednesday trading.
`` We have taken a decision this morning to prepare a plan for an operation to provide some assisted departures for isolated and vulnerable Australians in Wuhan and the Hubei province, '' Australian Prime Minister Scott Morrison said at a news conference.
Morrison also said that evacuated Australian nationals will be flown to Christmas Island, where the government will set up a quarantine area. The government expects evacuees to remain on the island for up to 14 days.
Hubei, the province at the epicenter of the outbreak, said 2,287 additional medical staff from around China have arrived to help the region handle coronavirus cases.
@ PDChina: A total of 21 medical teams comprised of 2,287 medical workers from across the Chinese mainland arrived in C China's Hubei on Tuesday to aid in the diagnosis and treatment of the pneumonia disease caused by a novel # coronavirus, local authorities said on Wednesday.
The Hang Seng index dropped nearly 3% in early trade as Hong Kong-listed shares of travel-related companies plunged. Markets in mainland China remain closed after Beijing extended the Lunar New Year holiday. The Shanghai and Shenzhen exchanges have both said they will resume on Monday.
The Japan Times reported that a charter jet ferrying about 200 Japanese nationals from Wuhan, China landed in Tokyo on Wednesday morning. Japan's Foreign Ministry said none of the passengers were infected, according to the Times.
The number of coronavirus cases in China have now topped that of SARS. Between Nov. 1, 2002, and July 31, 2003, China had 5,327 SARS cases, according to the World Health Organization. The population of China has increase by about 100 million people to 1.4 billion in the years since.
Chinese health officials said confirmed 1,459 new cases and 26 additional deaths ( 25 in Hubei and 1 in Henan). Those figures bring the total cases to 5,974 confirmed cases, with 132 deaths and 103 cured, according to the National Health Commission.
Reuters reports that a team of scientists have successfully grown a version of coronavirus in the lab. The news service reported that the breakthrough would help researchers around the world as they race to develop a vaccine and detection tests.
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 told CNBC. The restrictions could affect flights into and out of China, as well as airports across the United States, the officials said.
— CNBC's Riya Bhattacharjee contributed to this report. | business |
Hong Kong Stocks Slump, Catching Up to Coronavirus Fears -- Update | By Steven Russolillo
Hong Kong-listed stocks dropped sharply on their first trading day after the Lunar New Year break, as investors assessed the spreading Wuhan coronavirus and its impact on global growth.
The benchmark Hang Seng Index was down 2.9% Wednesday afternoon, catching up to a slide in global markets that took place earlier in the week. Markets in mainland China remain closed for the Lunar New Year holiday; they are scheduled to reopen next week.
The declines come as the number of confirmed cases and fatalities from the pneumonia-causing coronavirus continue to rise, with the death total climbing to at least 132 and confirmed infections rising to around 6,000.
`` Financial markets are reacting nervously to the spread of the coronavirus, and more and more questions are being asked about the economic consequences, '' said Charlie Lay, a foreign-exchange strategist at Commerzbank in Singapore.
The Hong Kong government unveiled measures on Tuesday to limit travel to and from mainland China to try to contain the outbreak, though it stopped short of completely shutting the border. So far, there have been eight confirmed cases of the coronavirus in Hong Kong.
The main concern among global investors is that the virus could turn into a pandemic that cripples transportation, shopping, business meetings and weighs on economic growth. Luxury retailers, travel companies and casino stocks have been among the hardest hit shares in recent weeks.
On Wednesday, shares of Macau resort and casino operator Sands China Ltd. dropped more than 5% while Galaxy Entertainment Group fell nearly 5%. Chinese property developers China Evergrande Group and Sunac China Holdings Ltd. were down more than 4% and 5%, respectively.
Meanwhile, stock indexes in South Korea, Australia and Japan rose Wednesday. The gains came after U.S. stocks rebounded on Tuesday, with the S & P 500 rising 1% after suffering its steepest loss since October on Monday. The yuan strengthened slightly in offshore trading on Wednesday morning, then fell back to 6.9659 per U.S. dollar.
Seema Shah, chief strategist at Principal Global Investors, said part of the concern weighing on markets is the speed at which information travels today. The global spread of severe acute respiratory syndrome, or SARS, in 2003, by comparison, took place before the dawn of social media.
`` The echo chamber to amplify market anxiety has never been more powerful, `` she said.
Write to Steven Russolillo at steven.russolillo @ wsj.com
| business |
Google closing China offices amid coronavirus outbreak | Google is temporarily closing its China offices and restricting travel amid the outbreak of the coronavirus, a spokesperson confirmed to CNBC.
The shutdowns, first reported by The Verge, will affect Google's offices in Hong Kong and Taiwan. The company has also placed temporary travel restrictions on workers flying to China and Hong Kong.
The shutdown comes as other U.S. companies including Facebook and Apple limit work as it tries to mitigate the risk of the virus that's killed more than 100 people and infected more than 6,000. At least five cases have been confirmed in the U.S.
The municipal government of Shanghai issued a notice Monday ordering companies not to resume work after the Chinese New Year holiday until Feb. 3, instead of Jan. 31. The outbreak is already said to affect Apple's supply chain and products expected to launch in the first half of 2020.
Google has at least four offices in China's mainland and five in Taiwan, according to Google's website. The offices in mainland China focus on sales and engineering for its advertising business.
It is also telling employees from other areas who are in China to return home as soon as possible, and to work from home for at least 14 days following their departure. Google.org has also issued a $ 250,000 grant to the Chinese Red Cross and launched an internal fundraiser, which has already raised $ 500,000.
The company has faced complications in trying to do business with China. It withdrew its search operations in China in 2010, pulling out of an enormous market. It considered re-entering the market in 2018 but abandoned those conversations after facing backlash from employees, and eventually politicians, who criticized it for wanting to provide a censored search engine.
Watch Now: Powell: Coronavirus likely to cause disruption in China and globally | business |
Apple, Starbucks warn of hit from virus; firms restrict travel, airlines cancel flights | Companies also restricted travel to China and asked staff there to work from home.
Here's what large companies have said about the outbreak:
TRAVEL ADVISORIES/EVACUATIONS/QUARANTINES:
* Facebook suspended non-essential travel to mainland China and told employees who had travelled to China to work from home.
* Alibaba asked employees to work from home for a week after an extended Lunar New Year break ends on Feb. 2. Tencent extended holidays until Feb 9.
* Tiktok owner Bytedance asked employees who travelled during the holidays to quarantine themselves at home for 14 days. E-commerce firm Pinduoduo and UBS Group have advised similar action.
* HSBC banned travel to Hong Kong and China, and asked employees who travelled to the mainland recently to quarantine themselves at home.
* Goldman Sachs and Standard Chartered took similar quarantine measures. Standard Chartered also restricted travel to China, as did Commonwealth Bank of Australia, SK Hynix, LG Display, Honda Motor and Nippon Steel.
* Samsung Electronics advised employees who visited Hubei province to stay at home for seven days.
* LG Electronics and LG Chemical banned travel to China.
* Honda and Nissan flew back some employees to Japan from China on a government chartered flight.
* Novartis asked staff in China to work from home until Feb. 10.
* Volkswagen asked China staff to work from home for two weeks after the extended break ends.
* Exxon Mobil and Brazilian miner Vale SA suspended travel to China.
STORE/FACTORY CLOSURES:
* Toyota Motor, which restricted China travel, said it was halting operations in factories in the country through Feb. 9.
* AB Inbev suspended production at its Wuhan brewery.
* Apple closed one of its retail stores in China and reduced hours at others, and restricted employee travel.
* Walt Disney shut its resorts and theme parks in Shanghai and Hong Kong during what is likely the busiest time of the year.
* McDonald's shut outlets in five cities in Hubei.
* Japan's Fast Retailing temporarily closed about 100 Uniqlo stores in Hubei. IKEA closed its one store in Wuhan.
* Yum China temporarily closed some KFC and Pizza Hut stores in Wuhan, and Luckin Coffee closed its cafes in the city.
* Imax delayed film releases in China.
* H & M closed 45 stores and suspended business travel to and within China. Staff arriving from China are advised to stay home for 14 days.
* Swatch closed five stores in Wuhan and suspended travel to and from China.
AIRLINE CANCELLATIONS/REFUNDS:
* British Airways suspended all direct flights to and from China until at least Jan. 31. Finnair suspended routes to Nanjing and Beijing until end-March. [ nL8N29X469 ]
* United Airlines, Air Canada, Taiwan's China Airlines, Jetstar Asia and IndiGo cancelled some flights to China.
* Cathay Pacific and Cathay Dragon will cut capacity to and from mainland China by half or more from Jan. 30 to end-March. The airline will rebook, reroute or refund tickets booked on or before Jan. 28 for travel by March 31 to or from mainland China.
* Air Seoul suspended all flights to China. Indonesia's Lion Air cancelled some this month and all flights to China next month.
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 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 refunds on bookings between Jan. 22 and Feb. 8. Refunds also include flight tickets, cruises and car rentals.
* Fliggy, Alibaba's booking site, offered similar refunds.
* Some Chinese tour operators such as China International Travel Service offered refunds and many European tour 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, Pei Li in Beijing, Neil Jerome Morales in Manila, Sumeet Chatterjee in Hong Kong, Paul Arnold and Silke Koltrowitz in Zurich, Laurence Frost in Paris; Writing by Sayantani Ghosh and Josephine Mason; Editing by Shounak Dasgupta, Lisa Shumaker, Tom Hogue and Kim Coghill) | business |
Tracking Dangerous Bat Coronaviruses With Next-Generation DNA Sequencing | In late 2019, a mysterious coronavirus — now called 2019-nCoV — began making people sick in Wuhan, China. Now the virus has spread to at least four other countries, including the United States, and killed at least nine people.
To monitor how viruses like this one spread and evolve in animal populations, researchers have been using next-generation sequencing ( NGS). However, routine and large-scale surveillance with NGS can be both costly and laborious. It can also miss less abundant viral markers in the host sample. These challenges have driven geneticists to develop NGS-based strategies that are less expensive and more efficient.
This week in mSphere, a journal of the American Society for Microbiology, an international group of researchers describe how to use enrichment — one such emerging NGS strategy — for monitoring coronaviruses, especially those that originate in bats. The NGS is “ enriched ” with probes ( or baits), which are tiny fragments of genetic material that find and bind to the viral DNA. These probes suggest a quick way to identify where the viral genetic material might be hiding.
In test sets of clinical samples, the probes successfully identified coronaviruses, and the researchers reported that their approach both increased sensitivity and reduced sequencing costs.
“ We don’ t want to declare that enrichment is the panacea for all NGS challenges, but in this case, I do think it’ s a step in the right direction, ” said Lin-Fa Wang, Ph.D., who directs the Programme in Emerging Infectious Diseases at Duke-NUS Medical School, in Singapore. Wang led the study with Peng Zhou, Ph.D., a virologist at the Chinese Academy of Science’ s Center for Biosafety Mega-Science in Wuhan, China.
Coronaviruses in bats, says Wang, are particularly important to monitor. Many researchers believe that these viruses have the potential to infect other animal populations — and even people. The coronavirus that caused 2003’ s deadly outbreak of SARS, or severe acute respiratory syndrome, is closely related to those found in bats and likely originated with the animals. The same is true of the viruses behind a mysterious January 2020 outbreak in Wuhan, China, and the 2018 outbreak of swine acute diarrhea syndrome, or SADS. Bats are also known reservoirs of the Ebola virus, Marburg virus, Nipah virus, and Hendra virus, even though they usually don’ t exhibit symptoms.
“ Coronaviruses, especially those that are bat-borne, remain an important source of emerging infectious diseases, ” Wang said. During times that are free of outbreaks, or what Wang calls “ peace time, ” researchers can build up-to-date banks of probes associated with known forms of coronaviruses. During outbreaks, or “ war time, ” they can use that information to track the evolution of viruses and spread of infections, in animal and even human populations.
One challenge of using enriched NGS is that “ you only find the viruses you know, ” Wang said. That’ s because the probes used to flag the viruses in the host sample genome are derived from previously identified sequences. However, the bat coronavirus, like all viruses, is constantly changing. If this approach is going to be useful for surveillance and tracking outbreaks, Wang said, then the probe library will need frequent updates.
“ To really have enrichment NGS be successful, ” Wang said, “ we need to treat our probe library as a living library. This will be an ongoing pursuit for us. ” He’ s optimistic that the work will pay off. | tech |
Siltronic: sales and earnings in 2019 in line with expectations | As expected, preliminary sales of EUR 1,270 million in 2019 are significantly lower than in 2018 ( EUR 1,456.7 million)
Preliminary EBITDA fell to EUR 409 million and the EBITDA margin to a good 32 percent ( 2018: EUR 589.3 million; 40.5 percent)
Preliminary EBIT of around EUR 298 million also significantly below the previous year ( 2018: EUR 497.7 million), as expected
Second-best year in Siltronic's history
Munich, Germany, January 29, 2019 - Siltronic AG, one of the world's leading manufacturers of hyperpure silicon wafers, reported a noticeable decline in sales and earnings in 2019. While 2018 was a record year in terms of earnings, 2019 has once again shown how quickly the market environment can change. Due to high demand, sales volumes in the fourth quarter of 2018 were still at a record level. At the turn of 2018/19, the environment deteriorated significantly. Negative factors such as the trade dispute between the USA and China put a burden on consumer climate and economic growth in many regions. Many customers massively slowed down their wafer starts at the beginning of 2019, causing the demand for wafers to drop by a double-digit percentage. Similarly, Siltronic AG's sales declined by about 13 percent. Due to poorer utilization of production lines and significantly higher energy costs in Germany, the EBITDA margin also declined to about 32 percent.
Despite this decline in sales and earnings, Siltronic AG is reporting 2019 as the second-best year in its history.
Average selling prices at the beginning of the year were still higher than in 2018, but then fell slightly in the second half of the year. Due to the strong US dollar, sales prices translated into euros were slightly higher on average in 2019 than in 2018. The decline in sales resulted mainly from lower volumes. The decline in demand affected all wafer sizes, but was more moderate at 300 mm than at 200 mm. The small diameters were most affected. Demand from the logic and foundry business remained good at 300 mm. Despite initial positive news in the first weeks of 2020, a revival of demand from the memory sector is not expected in the short term due to high customer inventories.
According to preliminary and unaudited figures, revenue in 2019 amounted to approximately EUR 1,270 million, significantly below the previous year ( 2018: EUR 1,456.7 million). EBITDA reached EUR 409 million and was thus around 31 percent below the previous year ( 2018: EUR 589.3 million). The EBITDA margin reached a solid 32 percent ( 2018: 40.5 percent).
At around EUR 298 million, preliminary earnings before interest and taxes ( EBIT) were down significantly on the previous year ( 2018: EUR 497.7 million). The EBIT margin for 2019 is around 24 percent compared to 34.2 percent in 2018.
Due to the burden of special factors such as the discontinuation of the EEG hardship regulation ( increase in energy costs of around EUR 20 million), a slight increase in costs was recorded - despite ongoing and effective savings programmes.
In 2019, Siltronic invested around EUR 360 million in property, plant and equipment and intangible assets. In addition to the base investments of around EUR 90 million, this includes expenditure for the new ingot pulling hall in Singapore. Furthermore, the good financial situation of recent years was used to make important investments in automation, digitization and capabilities. This will secure and further expand Siltronic's position as one of the technology leaders.
As a result of the increased investments, the preliminary net cash flow for 2019, at around EUR 81 million, was significantly lower than in 2018 ( EUR 240.4 million), but exceeded expectations.
Despite the positive net cash flow, preliminary net financial assets declined to EUR 589 million ( 2018: EUR 691.3 million) due to the high dividend payment and the return of customer prepayments.
'2019 was a challenging and exciting year. Since we have little influence on the demand for our wafers, our focus has been and continues to be on our technological performance, increasing our productivity and optimizing processes through digitization, ' said Dr. Christoph von Plotho, CEO of Siltronic AG.
Sales development in the fourth quarter of 2019
Preliminary sales of around 304 million euros in the fourth quarter of 2019 were slightly above expectations, due in part to increased sales of wafers to customers who could not be served at times of full capacity utilization. The average selling price declined slightly in the fourth quarter.
Siltronic achieved a preliminary EBITDA of around EUR 90 million in the fourth quarter of 2019. EBITDA for the third quarter of 2019 was EUR 91.5 million. The preliminary EBITDA margin from October to December 2019 reached about 30 percent ( Q3 2019: 30.5 percent).
Macroeconomic and political uncertainties continue to influence developments in 2020
Possible negative factors for 2020 continue to include geopolitical and global economic developments such as the trade dispute between the USA and China, which has not yet been fully resolved, and tensions in the Middle East. Currently, it is difficult to predict the effects due to the outbreak of the corona virus. At the micro level, customers ' high inventory levels will have a negative impact on the development of demand in 2020. In some segments, such as logic, market observers and customers report improved demand for semiconductors. A recovery in demand from the memory sector could be longer to come due to still high inventories of raw wafers.
Against this backdrop, the company assumes that the 2020 financial year will see a slow start.
Siltronic AG - preliminary financial figures 20191)
in EUR million
2019
2019
2019
2019
2018
2019
2018
Q4
Q3
Q2
Q1
Q4
Sales
304
299.8
311.8
354.4
388.1
1,270
1,456,7
EBITDA
90
91.5
100.0
127.2
160.8
409
589.3
EBITDA margin
30%
30.5%
32.1%
35.9%
41.4%
32%
40.5%
EBIT
57
63.6
74.6
103.4
138.9
298
497.7
EBITmargin
19%
21.2%
23.9%
29.2%
35.8%
24%
34.2%
Capex in property, plant and equipment and intangible assets
94
88.6
105.1
72.8
115.5
360
256.9
Net cash flow
9
-8.8
0.4
80.8
-32.2
81
240.4
in EUR million
Dec. 31,
2019
Dec 31,
2018
Net financial assets
589
691,3
1) The results in this document for Q4 2019 and Full Year 2019 are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.
Upcoming dates
A comprehensive reporting with detailed disclosures will be provided on March 9, 2020 when the final results for 2019 will be published. The Executive Board of Siltronic AG will conduct a conference call with analysts and investors ( in English only) on that day at 10:00 am ( CET). This call will be streamed via Internet. The audio webcast will be available live as well as on demand on Siltronic's website.
March 9, 2020 Annual Report 2019
April 23, 2020 Annual General Meeting
April 28, 2020 Q1 2020 quarterly statement
July 30, 2020 Q2 2020 Interim Report
October 29, 2020 Q3 2020 quarterly statement
Contact:
Petra Müller
Head of Investor Relations & Communications
Tel.: +49 ( 0) 89 8564 3133
email: investor.relations @ siltronic.com
Company profile:
Siltronic is one of the world's largest manufacturers of hyperpure silicon wafers and partner to many leading semiconductor companies. The company operates production sites in Asia, Europe and the USA. Siltronic develops and manufactures silicon wafers in diameters of up to 300 mm. Silicon wafers form the basis for modern microelectronics and nanoelectronics and are a key component in semiconductor chips driving computers, smart phones, navigation systems and many other applications. Siltronic AG employs around 4,000 people and has been a stock-listed company in Germany ( Prime Standard) since 2015. The Siltronic AG stock is listed on both the MDAX and TecDAX.
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Siltronic AG published this content on 29 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 January 2020 07:04:03 UTC | business |
UK stocks cling to gains; oil majors underperform | The FTSE 100 index, which had risen as much as 0.5% earlier, ended only marginally higher. Shell and BP lagged after inventory and stockpiling data from the U.S. Energy Information Administration.
The FTSE 250, which had slumped more than 2% on Monday, rose for the second consecutive session and added 0.2%.
`` If yesterday's positive move was down to a combination of short covering and bargain hunting, the muted session today might be a sign that buyers are running out of steam, '' CMC Markets analyst David Madden said.
Avast underperformed with a 5.5% drop, bringing its losses for the week to nearly 20%. It denied media reports and assured users that none of their personally identifiable information had been sold to a third party.
The cybersecurity company also said it was reviewing options for its trend analytics service which is at the centre of the data privacy concerns.
Both British benchmark indexes have shed more than 2% since last week, when news of the coronavirus flare-up first emerged. Dealers are still mulling over how the outbreak will affect the global economy.
`` Markets will be yearning for signs that the outbreak is stabilising, '' FXTM analyst Han Tan said, but warned that a meaningful recovery in equities could be months away.
Market strategists at Societe Generale estimated global stock markets could fall 10% if the situation around the fast-spreading virus, which has killed more than 130 people, worsens.
Traders are also eyeing a U.S. Federal Reserve policy meeting, in which the bank is likely to leave interest rates unchanged, but may address future headwinds due to the virus outbreak.
In other stock moves, wealth manager Quilter jumped nearly 9% to top the midcaps after a rise in assets under management prompted upgrades by at least two brokerages.
But transport operator Stagecoach slid 6.3% after HSBC downgraded the stock and Britain said it would nationalise Northern Rail, ahead of a review of railway services due to be published in weeks.
Its shares suffered their worst day in almost seven months.
McCarthy & Stone Plc skidded 6% on its worst day since June 2018, as its biggest shareholder plans to slash its stake in the retirement homebuilder.
By Shashwat Awasthi | business |
Kenya Airways: Kenyan Student From China Quarantined at KNH Over Suspected Coronavirus | A patient exhibiting coronavirus-like symptoms was Tuesday hospitalized at the Kenyatta National Hospital, having flown into the country from China.
The hospital has confirmed that the patient landed at the Jomo Kenyatta International Airport Tuesday morning from a flight originating from Guangzhou, China.
`` It is true we have a patient who showed symptoms similar to those of Coronavirus and has been isolated, '' said Hezekiah Gikambi, KNH's Communications Manager.
He did not provide more details, only saying `` the ministry ( of Health) will be issuing a statement on this. ''
A statement from Kenya Airways says the student flew in from Guangzhou.
`` A decision to quarantine the passenger was reached by the Kenya Government port health authorities stationed at JKIA, '' the airline said, adding that the passenger had been cleared to travel by the China port health authorities. ''
The death toll from coronavirus in China hits 106 with over 4,000 confirmed cases.
Copyright Capital FM. Distributed by AllAfrica Global Media ( allAfrica.com)., source News Service English | business |
Fosun International: - First Batch of's Donated Medical Supplies Arrives in Shanghai amid Global Procurement | Flight LH8404 from Frankfurt, Germany arrived at Shanghai Pudong International Airport, and unloaded 50,000 sets of GB19082-2009 protective medical suits.
This is Fosun's first batch of global emergency medical supplies, as well as the first batch of overseas medical supplies arriving in Shanghai, which will be sent to Wuhan, Shanghai and other serious epidemic areas.
The 50,000 sets of protective medical suits with arrival in Shanghai this time were microporous membrane full-body protective clothing purchased by Fosun from Germany's ASATEX company, which meets the GB19082-2009 standard by the National Health Commission for the prevention of the new coronavirus pneumonia epidemic. It can effectively protect against particulates and liquid splattering, which makes it qualified to be used for the clinics. Some of these protective medical suits will be shipped directly to Wuhan and are expected to arrive on the evening of Jan 28.
The 100,000 masks purchased by Fosun from India will also arrive at Shanghai Pudong Airport at around 8:20 pm on Jan 28. These 100,000 masks are Honeywell N95 models, which meet the medical protection standards by the National Health Commission. The medical material dispatch to the epidemic area will help alleviate the shortage of medical supplies in the severely affected areas.
Thanks to the joint efforts of the Fosun headquarters and its German and Indian teams, the procurement and transportation of the medical materials have overcome many hurdles such as complicated procurement procedures and tight logistics coordination timing during holidays. 50,000 sets of protective medical suits purchased by Germany were packed into 84 boxes at the Frankfurt Airport's warehouse in Jan 26's afternoon at its local time, and arrived at Shanghai Pudong Airport by the latest LH8404 cargo flight.
In addition, more than 10,000 masks from Portugal as well as more than 1,900 pieces of protective medical suits and more than 900 masks from Japan have also arrived in Shanghai and are being transferred to the epidemic area.
In the past few days, the domestic epidemic situation has escalated rapidly, and the epidemic prevention work is undergoing against time. Fosun International Chairman Guo Guangchang, CEO Wang Qunbin and other top management team directly ordered the material purchase within Fosun's global system and required Fosun's overseas colleagues to make every effort to find the source and follow the actual requirements and send back by airplanes to save time. Employees of Fosun's various departments also gave up their vacation and family reunion time, entered into a state of fighting, and coordinated around the clock. Fosun has confirmed it has purchased nearly 600,000 medical supply units worldwide, including more than 330,000 medical masks and over 270,000 protective medical suits. Fosun is also actively ensuring relevant materials arrive in the country as quickly as possible, and will donate to the epidemic areas as soon as possible
The material delivery was fully supported by China'sMinistry of Foreign Affairs, the embassies in Germany, India and other countries as well as relevant departments in Shanghai, and German customs and other departments. Fosun's German and Indian teams are deployed throughout the process to ensure the delivery of materials. The Embassies in Germany and India provided support immediately after learning that the materials with Fosun qualified as 'non-commercial use ', and issued notes to the foreign and customs ministries of Germany and India, urging them to open expediated windows on the weekends. Quick clearance of the medical supplies helped catch the Fosun charter flights as soon as possible and ship the supplies to the frontline of domestic epidemic areas.
After learning that the first batch of supplies successfully arrived in Shanghai from Germany, Fosun's Chairman Guo Guangchang said, 'It took less than four days from the start of our global material procurement plan to the first batch arrival in China. Cross-border and cross-departmental communication show our efficiency to truly reflect the spirit of a shared community of mankind. It also strengthens our confidence. Fosun will make full use of our global resource advantages, go all out to support the fight at domestic epidemic areas, and contribute to the early victory. '
In the early morning of Jan 28, Shang Yuying, deputy secretary general of the Shanghai Municipal Government, made a special trip to Shanghai Pudong Airport to receive the medical supplies donated by Fosun and represented by Fosun's Co-President Xu Xiaoliang. Fosun CEO Wang Qunbin said Fosun's global medical supply procurement plan is still ongoing, and medical materials purchased in the United Kingdom, Germany, India, the U.S. and other places are quickly finishing up with various procedures and strive to be shipped back to domestic epidemic areas as soon as possible.
Contact:
Ms. Betty Li
Email: IR @ fosun.com
( C) 2020 Electronic News Publishing, source ENP Newswire | business |
Novartis CEO warns finding a coronavirus vaccine will take over a year | The chief executive of Novartis believes it will take at least 12 months to find a new vaccine to treat the coronavirus, with the fast-spreading nature of the outbreak a threat that must be taken `` really seriously. ''
China's National Health Commission confirmed Wednesday that the coronavirus had infected 5,974 people, with 132 deaths and 103 cured.
The virus, which was first discovered in the Chinese city of Wuhan, has spread to other major cities such as Beijing, Shanghai, Macao and Hong Kong.
The number of coronavirus cases in China has already surpassed that of severe acute respiratory syndrome, or SARS, with market participants increasingly concerned about the severity of its economic impact.
`` The reality is, it will take over a year in my expectation to really find a new vaccine for this so, we need to really use epidemiological controls to really get this situation in a better place, '' Vas Narasimhan, CEO of Novartis, told CNBC's Julianna Tatelbaum in Basel, Switzerland on Wednesday.
Multiple cases of the coronavirus have been confirmed in Thailand, Vietnam, South Korea, Malaysia, Japan, Australia, France and the United States.
A team of scientists in Australia said Wednesday that they had successfully developed a lab-grown version of coronavirus, according to a Reuters report.
The breakthrough, which was thought to be the first grown outside of China, could help researchers as they work to combat the international spread of the outbreak.
Coronaviruses are a large family of viruses that usually infect animals but can sometimes evolve and spread to humans.
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 a global health emergency, but the United Nations health agency has said that it is an emergency in China.
The White House has told airline executives it is considering suspending flights from China to the U.S., as the escalating outbreak continues to spread to thousands of people across the world, people familiar with the matter told CNBC.
Germany, Cambodia and Sri Lanka all reportedly confirmed their first cases of the virus on Monday.
When asked whether the pharma industry could do more to be better prepared for future virus outbreaks, Narasimhan replied: `` One of the challenges is when these epidemics happen, or these situations happen, there is a lot of interest and there is a lot activity but then we go back to a place where they are not happening anymore and everyone kind of loses interest and the investment then flows out. ''
`` So, the question is: How do you keep the investment in place in the troughs of interest in pandemics and these kinds of outbreaks? That's a challenge. ''
`` I continue to believe governments need to maintain high levels of preparedness, regardless of whether we have one of these outbreaks or not, '' Narasimhan said.
Novartis reported fourth-quarter net income rose 13% in constant currencies on Wednesday. Shares of the Swiss-listed stock rose more than 1% during mid-morning deals. | business |
TOMI Environmental: SteraMist Preparedness for Aiding in the new Coronavirus-Wuhan or 2019-nCoV Outbreak | BEVERLY HILLS, Calif., Jan. 29, 2020 ( GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc.® ( “ TOMI ”) ( OTCQB: TOMZ), is a global company specializing in disinfection and decontamination, utilizing its premier Binary Ionization Technology ( BIT) platform through its SteraMist products - a hydrogen peroxide-based mist and fog composed of ionized Hydrogen Peroxide ( iHP). SteraMist iHP technology has been deployed in the fight against EBOLA in West Africa, MERS in the Kingdom of Saudi Arabia and South Korea, and is now ready to be easily deployed throughout the world to aid in the fight against coronavirus-Wuhan ( 2019-nCoV) and other emerging pandemic risks.
With thousands of confirmed cases of the respiratory infection already noted worldwide, health officials have confirmed at least five ( 5) cases of coronavirus-Wuhan ( 2019-nCoV) in the United States. This virus could become our next pandemic.
Similar to Influenza A, SARS, and MERS, coronavirus is an enveloped virus. While this would often serve to protect the virus from possible threats, SteraMist features efficacy against Influenza A, SARS, MERS and similar, enveloped viral threats including coronavirus-Wuhan ( 2019-nCoV). TOMI has multiple EPA-accepted studies on the current label to meet the standard to respond to emerging pathogens in the enveloped and non-enveloped categories, which includes the current coronavirus-Wuhan ( 2019-nCoV) outbreak.
TOMI Environmental Solutions has partners throughout the globe standing by to rapidly deploy and aid in reducing the spread of this coronavirus-Wuhan ( 2019-nCoV) using SteraMist disinfection and decontamination. Companies in biological disaster management and emerging disease organizations throughout the world make up a strong, growing list of TOMI premier partners.
TOMI CEO, Dr. Halden Shane, states that “ SteraMist has proven success against emerging pathogens and we remain confident in the ability of our technology to reduce the viral duplication in the air and on surfaces of all indoor environments in the fight against this novel coronavirus-Wuhan ( 2019-nCoV) threat. TOMI is working alongside many of our premier partners throughout Asia and, if needed, the world to bring SteraMist to those in need of the most effective disinfectant and decontaminant to fight coronavirus-Wuhan ( 2019-nCoV). ”
TOMI™ Environmental Solutions, Inc.: Innovating for a safer world®
TOMI™ Environmental Solutions, Inc. ( OTCQB: TOMZ) is a global decontamination and infection prevention company, providing environmental solutions for indoor surface disinfection through the manufacturing, sales and licensing of its premier Binary Ionization Technology® ( BIT™) platform. Invented under a defense grant in association with the Defense Advanced Research Projects Agency ( DARPA) of the U.S. Department of Defense, BIT™ solution utilizes a low percentage Hydrogen Peroxide as its only active ingredient to produce a fog of ionized Hydrogen Peroxide ( iHP™). Represented by the SteraMist® brand of products, iHP™ produces a germ-killing aerosol that works like a visual non-caustic gas.
TOMI products are designed to service a broad spectrum of commercial structures, including, but not limited to, hospitals and medical facilities, cruise ships, office buildings, hotel and motel rooms, schools, restaurants, meat and produce processing facilities, military barracks, police and fire departments, and athletic facilities. TOMI products and services have also been used in single-family homes and multi-unit residences.
TOMI develops training programs and application protocols for its clients and is a member in good standing with The American Biological Safety Association, The American Association of Tissue Banks, Association for Professionals in Infection Control and Epidemiology, Society for Healthcare Epidemiology of America, America Seed Trade Association, and The Restoration Industry Association.
For additional information, please visit http: //www.tomimist.com/ or contact us at info @ tomimist.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain written and oral statements made by us may constitute “ forward-looking statements ” as defined in the Private Securities Litigation Reform Act of 1995 ( the “ Reform Act ”). Forward-looking statements are identified by such words and phrases as “ we expect, ” “ expected to, ” “ estimates, ” “ estimated, ” “ current outlook, ” “ we look forward to, ” “ would equate to, ” “ projects, ” “ projections, ” “ projected to be, ” “ anticipates, ” “ anticipated, ” “ we believe, ” “ could be, ” and other similar phrases. All statements addressing operating performance, events, or developments that we expect or anticipate will occur in the future, including statements relating to revenue growth, earnings, earnings-per-share growth, or similar projections, are forward-looking statements within the meaning of the Reform Act. They are forward-looking, and they should be evaluated in light of important risk factors that could cause our actual results to differ materially from our anticipated results. The information provided in this document is based upon the facts and circumstances known at this time. We undertake no obligation to update these forward-looking statements after the date of this release.
INVESTOR RELATIONS CONTACTHarold Paulhpaul @ tomimist.com
2020 GlobeNewswire, Inc., source Press Releases | business |
US will keep tariffs on China even if coronavirus starts hurting growth: Navarro | White House trade advisor Peter Navarro pushed back Wednesday against the idea that the U.S. would remove tariffs on Chinese imports if the deadly coronavirus begins to weigh on China's economy.
`` That's a spin that's coming right out of Wall Street, and it really, I think, it does a disservice to this whole crisis to bring that into the discussion, '' Navarro said on CNBC's `` Closing Bell. ''
Navarro was responding to a question from CNBC's Carl Quintanilla, who asked whether a tariff rollback was on the table if China was abiding by the terms of the `` phase one '' trade deal but started to see its economy hurt by the coronavirus.
The flu-like coronavirus has now killed at least 132 people and infected more than 6,150 people worldwide, but China is the epicenter of the outbreak.
Companies in China have shut down stores, factories and closed offices as the country works to contain the spread of the virus. Some have warned of severe disruption to supply chains in China, with at least American CEO predicting the impact could last up to six months.
Navarro's comments on CNBC come hours after President Donald Trump signed into law the new version of the North American Free Trade Agreement, making Canada the final country that needs to ratify it.
The U.S. Senate approved the United States-Mexico-Canada Agreement on Jan. 16, one day after Trump formally signed a `` phase one '' agreement with China.
The U.S. and China have been engaging in a long-running trade war in which each side has placed billions of dollars ' worth of tariffs on each other's goods.
The `` phase one '' deal was considered the first step in larger negotiations to reach a trade détente.
While it contained measures on issues such as intellectual property theft and Chinese market access, it did not include a whole-scale rolling back of tariffs, which segments of the business community want to see.
`` We're leaving tariffs on, but I will agree to take those tariffs off if we are able to do 'phase two, ' '' Trump said at the time.
On the subject of removing tariffs due to the coronavirus, Navarro said, `` Let's remember why the tariffs are in place. ''
`` The tariffs are in place because China engages in massive unfair subsidies. They use their state-owned enterprises to put American companies and workers out of business, '' he said. `` And the tariffs also ensure that we come back for phase two. '' | business |
Coronavirus: American, Delta cut China service as outbreak hurts demand | Delta and American on Wednesday announced they would reduce their China service next month as the coronavirus spreads, driving down demand for flights to the country.
More than 6,150 people have been infected by the flu-like virus and more than 130 people in China have died from it, authorities said.
Big companies, from Apple to Ford to Kraft Heinz, have restricted their employees ' China business travel or scaled back operations because of the virus.
Delta said it would halve its flights to China to 21 a week starting Feb. 6 through April 30. The Atlanta-based airline serves Beijing from Detroit and Seattle and offers flights to Shanghai from Atlanta, Detroit, Los Angeles and Seattle.
American Airlines announced earlier on Wednesday that will cancel its flights from Los Angeles to Shanghai and to Beijing from Feb. 9 through March 27. American will continue to operate its China service from Dallas-Fort Worth and from Los Angeles to Hong Kong in that period.
American's reservations agents `` will contact affected customers directly by email or telephone, '' the airline said. `` We will continue to review our flight schedules to ensure we can accommodate the needs of our customers and will make updates as needed. ''
Pacific-region revenue has been a weak spot for U.S. airlines even before the outbreak and is a small part of their sales overall. American, for example, last week reported Pacific-region revenue dropped 9% last year to $ 1.5 billion, which equaled less than 4% of its total passenger revenue.
The measures follow similar steps by United, Cathay Pacific and Air Canada as demand for China service suffers because of the virus. British Airways earlier Wednesday said it canceled its service to Shanghai and Beijing from London. | business |
New Zealand to fly citizens out of Wuhan in coronavirus mission separate to Australia | New Zealand is launching an independent rescue mission to evacuate its citizens from Wuhan, chartering an Air New Zealand plane a day after saying it was working on a joint operation with Australia.
The foreign minister, Winston Peters, said the government has agreed with the national carrier to arrange a plane that can carry 300 people from Wuhan to New Zealand.
There are currently 82 New Zealanders registered on Safetravel as being in Wuhan, and 57 of those have sought consular assistance.
Any additional seats on the Air New Zealand flight would be allocated to Pacific Islanders and Australians “ as a matter of priority ”, Peters said.
The announcement comes a day after Australia announced that its evacuated citizens would be quarantined on Christmas Island.
New Zealand quickly confirmed any of its citizens evacuated from Wuhan would not be sent to Christmas Island – which was formerly one of Australia’ s most prominent asylum processing centres – but would instead be quarantined somewhere in New Zealand.
New Zealand consular officials joined an Australian consular team in Wuhan on Thursday to work through the details of the evacuation plan, the ministry of foreign affairs said, but it appears the two governments are no longer collaborating on a joint rescue mission.
“ This is a complex operation as we work through all the necessary requirements but we are working to have the aircraft depart as soon as possible, ” Peters said in a statement.
“ We encourage all New Zealanders in the Hubei region to register on Safetravel and ensure all their details are accurate and up to date. This will give us a better understanding of the level of demand for this flight. ”
Passengers on the Air New Zealand would be asked to pay a nominal fee for their rescue flight, although the New Zealand government would be footing most of the bill. It is unclear whether other governments have asked their citizens to help pay for the cost of their travel.
Consular teams are working with health officials to ensure that the risks of transmission of the coronavirus to New Zealand are carefully managed throughout the evacuation process, Peters said, and officials are working on procedures for pre-departure health screenings, infection control inflight, and isolation of all passengers arriving in New Zealand for up to two weeks.
It was not yet known where the Wuhan evacuees would be quarantined once they arrive in New Zealand, though the country’ s director-general of health Dr Ashley Bloomfield said teams were already preparing for their arrival.
Peters said it was not clear yet whether New Zealand consular staff would be evacuated from China but all options were being looked at and the situation on the ground was “ of major concern ”.
“ We don’ t want to overreact until we know what we’ re reacting too, and against, ” he said.
On Wednesday, Australia and New Zealand agreed to a joint rescue mission to bring their citizens home, and Australian prime minister Scott Morrison said more than 400 Australians would be flown to Christmas Island to be screened and quarantined. Qantas has offered a plane for the mission.
The World Health Organization ( WHO) has warned that the whole world must be on alert to deal with the spread of coronavirus, and urged countries to prepare.
WHO will reconvene its expert committee on Thursday to decide whether to declare the Wuhan coronavirus outbreak a public health emergency of international concern.
Total deaths now stand at 170, all in China, with 7,183 confirmed cases.
Just 68 cases have been confirmed outside China, in 15 countries, but in three countries, Germany, Vietnam and Japan, there is evidence of human-to-human transmission, raising fears over the spread of the disease.
There have been no cases of the virus detected in New Zealand, but flights arriving from China are being met by public health officials in Auckland and Christchurch, and anyone feeling unwell has been asked to self-quarantine. | general |
Southeast Asia stocks: Most markets subdued as coronavirus worries weigh on risk appetite | The virus has claimed 132 lives in China and 1,500 new cases have been identified, prompting several countries to restrict air travel to China as pressure mounts on Beijing to contain its spread.
Hong Kong stocks tumbled nearly 3% as the market opened for trade after the Lunar New Year holiday, despite a show of confidence by the Word Health Organisation in China's ability to contain the virus.
A number of companies in the country warned the virus would negatively impact their businesses.
Singaporean equities inched higher, having fallen nearly 2% on Tuesday after the country's trade minister flagged negative impact to its economy from the coronavirus outbreak.
Markets in Indonesia and Malaysia closed flat, while Vietnam's bourse remained closed on account of a holiday.
Philippines shares closed slightly lower, extending losses for a third straight session.
Meanwhile, Thai stocks edged up 0.8% as investors sought bargains after seven consecutive sessions of losses since the coronavirus outbreak came to light on Jan. 20. The index shed 5.4% during the same period.
Markets shrugged off Thai finance ministry's move to slash the country's growth forecast to 2.8% from the 3.3% it predicted in October.
The Thai baht, however, fell below the key 31 level against the dollar after the announcement. The trade-reliant country said it anticipates exports will grow at 1% in 2020, lower than the 2.6% rise it had forecast three months ago.
Siam Cement and PTT Global Chemical were among biggest boosts to the index on Wednesday.
For Asian Companies click;
SOUTHEAST ASIAN STOCK MARKETS
Market Current Previous close Pct Move
Singapore 3182.57 3181.25 0.04
Bangkok 1524.59 1513.26 0.75
Manila 7462.31 7468.7 -0.09
Jakarta 6113.045 6111.184 0.03
Kuala Lumpur 1550.47 1551.64 -0.08
Change so far in 2020
Market Current End 2019 Pct Move
Singapore 3182.57 3222.83 -1.25
Bangkok 1524.59 1579.84 -3.50
Manila 7462.31 7,815.26 -4.52
Jakarta 6113.045 6,299.54 -2.96
Kuala Lumpur 1550.47 1588.76 -2.41
Ho Chi Minh 991.46 960.99 3.17
By Arpit Nayak | business |
Whole world must be ready to deal with coronavirus, says WHO | The whole world must be on alert to deal with the spread of coronavirus, the World Health Organization has said as it urged countries to prepare so that they are ready to detect any cases that occur and isolate and treat the sick.
WHO will reconvene its expert committee on Thursday to decide whether to declare the Wuhan coronavirus outbreak a public health emergency of international concern. There are now 7,183 confirmed cases of viral pneumonia caused by the virus and 170 deaths, all of them in China.
Just 68 cases have been confirmed outside China, in 15 countries, but in three countries, Germany, Vietnam and Japan, there has been human-to-human transmission, raising fears over the spread of the disease.
“ The whole world needs to be on alert now. The whole world needs to take action and be ready for any cases that come from the epicentre or other epicentre that becomes established, ” said Dr Michael Ryan, the head of the WHO health emergencies programme.
The World Health Organization is recommending that people take simple precautions to reduce exposure to and transmission of the coronavirus, for which there is no specific cure or vaccine.
The UN agency advises people to:
Many countries are now enforcing or recommending curfews or lockdowns. Check with your local authorities for up-to-date information about the situation in your area.
In the UK, NHS advice is that anyone with symptoms should stay at home for at least 7 days.
If you live with other people, they should stay at home for at least 14 days, to avoid spreading the infection outside the home.
He and the WHO director general, Dr Tedros Adhanom Ghebreyesus, praised China for its openness and its crackdown in Wuhan, the centre of the disease outbreak. “ The fact that to date we have seen only 68 cases outside China and no deaths is due in no small part to the extraordinary efforts China has made, ” said Tedros. “ They are doing that at the expense of their economy and other factors. ”
But China’ s containment of the coronavirus, which emerged probably from wild animals sold for food in Wuhan’ s seafood market, has only reduced the danger to the rest of the world, not removed it.
“ The continued increase in cases and the evidence of human-to human transmission outside China are of course most deeply concerning, ” he said. “ Although the numbers outside China are still relatively small, they hold the potential for a much larger outbreak. ”
The emergencies committee met on two days last week but backed off from declaring the outbreak of international concern, largely because the spread to other countries had not been extensive. The declaration, which was made in the Ebola outbreaks in west Africa and the Democratic Republic of Congo as well as the Sars epidemic, would attract resources to countries that have outbreaks and streamline the measures taken. Ryan warned that 194 countries implementing unilateral measures was a “ potential recipe for disaster ”.
The evacuation of foreign nationals from Wuhan began with airlifts of hundreds of people by Japan and the US. A government-chartered plane carrying 206 Japanese nationals arrived in Tokyo from Wuhan on Wednesday morning. Two showed symptoms of pneumonia following scans, but a coronavirus diagnosis had not been confirmed, hospital representatives said. Two more were admitted to hospital. Seven others with symptoms such as coughs and fever will undergo tests.
The rest of the passengers were sent home with instructions to stay in and not mix with people for 14 days.
Officials in the US said a chartered plane had made a refuelling stop in Anchorage, Alaska, with about 240 US citizens onboard, including staff from the US consulate in Wuhan. The passengers were due to be re-screened in Anchorage and hospitals there were on alert to take any who needed medical tests or treatment.
The first cases in the Middle East were reported in the United Arab Emirates. Four members of a Chinese family who had been in Wuhan and arrived in the UAE on 16 January for a visit were confirmed to have the virus. All four are in a stable condition and under medical observation, the health ministry said. The Gulf Cooperation Council’ s ( GCC) health committee met on Wednesday in the Saudi capital of Riyadh to discuss the virus and to unify Gulf efforts to prevent its spread, Bahrain’ s state news agency BNA said.
There have been several suspected cases in African countries, although none have yet been confirmed.
The toll of the Wuhan coronavirus now exceeds the 5,327 confirmed cases in mainland China during the severe acute respiratory syndrome ( Sars) epidemic. The Sars outbreak killed more than 770 people globally, including 349 in mainland China. The death rate from Sars, caused by a more virulent member of the coronavirus family than the Wuhan strain appears to be, was more than 10%. So far, the death rate among confirmed cases of coronavirus is 2%, and may be less if there are many mild cases that do not end up in hospital, as experts believe.
Unicef said it had shipped six tonnes of respiratory masks and protective suits to Shanghai to protect health workers. “ This coronavirus is spreading at a breakneck speed and it is important to put all the necessary resources into halting it, ” said Unicef’ s executive director, Henrietta Fore. “ We may not know enough about the virus’ s impact on children or how many may be affected – but we do know that close monitoring and prevention are key. Time is not on our side. ”
British Airways said on Wednesday it had suspended all direct flights to and from mainland China after British authorities warned against “ all but essential ” travel to the country. | general |
'Our worst nightmare ': UK family to be split up in coronavirus evacuations | A British family trapped in the centre of the coronavirus outbreak are facing their “ worst nightmare ” after being told wife and mother Sindy Siddle will not be allowed on the plane evacuating them from the country.
Siddle travelled to Hubei province with her husband, Jeff, and nine-year-old daughter, Jasmine, to spend lunar new year with her family in the village of Hongtu.
The UK Foreign Office ( FCO) has told her that since she has a Chinese passport, she will not be allowed to board the plane evacuating British nationals in the next few days.
China does not recognise dual nationality; any citizen who wants to get a passport from another country has to give up their Chinese one. Many people unofficially managed to hold two passports, by acquiring a second nationality without informing Chinese authorities. But in recent years, driven partly by an anti-corruption campaign, there have been greater official efforts to crack down on dual nationals.
A 42-year-old accounts assistant, Siddle has had a visa for permanent residency in the UK since 2008.
“ My head is spinning. It’ s just horrendous, ” said Jeff Siddle, 54, an IT software developer. “ This ordeal just turned into our worst nightmare … How can they put a family in this position? Having to leave Sindy in China would be the worst thing that anyone could be put through. How am I going to tell Jasmine that her mum has to stay behind? ”
Sindy Siddle said she was devastated when she found out: “ This is a very difficult time for us because my daughter is just nine years old and I don’ t want to put her at risk staying here for a long time. But anything that can help my daughter get away we will try, so we made a decision that Jeff and Jasmine will go.
“ I want to be with my family and look after them, especially my daughter, because I don’ t know how to tell my daughter, you have to go without mum. ”
The family, from Prudhoe, Northumberland, said there were no health warnings in place when they flew out on 15 January, but they have since become caught up in an outbreak which has claimed more than a hundred lives.
“ There was no indication that there was any danger. It’ s all just escalated since we arrived, ” said Jeff.
The Siddles’ situation was echoed by another family. Natalie Francis, a 31-year-old kindergarten teacher from York, said she had been told her three-year-old son, who has a Chinese passport, would not qualify for evacuation.
The boy has British residency rights under the 1981 Nationality Act, but Francis said: “ I finally got a phone call at 10am this morning from some man [ at the Foreign Office ] in London, who then went on to say that I qualify for evacuation, but they can not take my son. And I said, ‘ There’ s like nothing you can do? I mean, I literally have a letter from you guys saying he is a British citizen.’
“ They said anyone with Chinese nationality or other citizenship is not being allowed to go on. And then he went on to ask if I still want to go, and I’ m like, ‘ So yeah, you want me to just abandon my son in China, and go home?’
“ He was probably just trying to do his job but it’ s a ridiculous question. ”
The Siddles are trapped in the village of Hongtu near Jingmen city, a three-hour drive from Wuhan, with no communication over the last few days from the British authorities in Wuhan and Beijing, which Jeff Siddle said had been closed for the lunar new year. Other British citizens in Wuhan have expressed frustration over the lack of clarity from the UK government.
“ There hasn’ t been a lot of help from the UK side at all, ” he said. “ The roads from our village are not allowing cars through, so we effectively can’ t leave the village. We haven’ t left the village for about four days now. ”
The family finally received confirmation that a flight would be available for British nationals to leave the country in the next few days, but still face the task of making their way to Wuhan airport, 150 miles away, when most roads are closed.
The FCO said it would make a note on its file that Sindy is the mother of a British child, but could make no guarantees about her evacuation.
It is caused by a member of the coronavirus family that has never been encountered before. Like other coronaviruses, it has come from animals. The World Health Organization ( WHO) has declared it a pandemic.
According to the WHO, the most common symptoms of Covid-19 are fever, tiredness and a dry cough. Some patients may also have a runny nose, sore throat, nasal congestion and aches and pains or diarrhoea. Some people report losing their sense of taste and/or smell. About 80% of people who get Covid-19 experience a mild case – about as serious as a regular cold – and recover without needing any special treatment.
About one in six people, the WHO says, become seriously ill. The elderly and people with underlying medical problems like high blood pressure, heart problems or diabetes, or chronic respiratory conditions, are at a greater risk of serious illness from Covid-19.
In the UK, the National health Service ( NHS) has identified the specific symptoms to look for as experiencing either:
As this is viral pneumonia, antibiotics are of no use. The antiviral drugs we have against flu will not work, and there is currently no vaccine. Recovery depends on the strength of the immune system.
Medical advice varies around the world - with many countries imposing travel bans and lockdowns to try and prevent the spread of the virus. In many place people are being told to stay at home rather than visit a doctor of hospital in person. Check with your local authorities.
In the UK, NHS advice is that anyone with symptoms should stay at home for at least 7 days. If you live with other people, they should stay at home for at least 14 days, to avoid spreading the infection outside the home.
China’ s national health commission confirmed human-to-human transmission in January. As of 6 April, more than 1.25m people have been infected in more than 180 countries, according to the Johns Hopkins University Center for Systems Science and Engineering.
There have been over 69,500 deaths globally. Just over 3,200 of those deaths have occurred in mainland China. Italy has been worst affected, with over 15,800 fatalities, and there have been over 12,600 deaths in Spain. The US now has more confirmed cases than any other country - more than 335,000. Many of those who have died had underlying health conditions, which the coronavirus complicated.
More than 264,000 people are recorded as having recovered from the coronavirus.
A Downing Street spokesman said: “ The Foreign Office is urgently exploring options for British nationals to leave Hubei province. Details are being finalised, and the FCO will confirm these as soon as they can. ”
The FCO advised Britons in Hubei to ring one of two dedicated 24-hour telephone numbers before 11am on Wednesday to register their desire to be evacuated.
The family are determined to campaign to get the decision overturned so that Sindy will be allowed to leave. In the meantime, they do not know when they will be reunited again. | general |
China stars absent for Matildas clash due to coronavirus fears | China have arrived in Australia ahead of next week’ s Olympic women’ s football qualifiers without two of their key players due to the coronavirus outbreak. Experienced midfielder Wang Shuang and 22-year-old Yao Wei were among several absentees when the squad arrived in Brisbane on Wednesday morning.
The pair were among a group of at least four players who returned to their native Wuhan for Chinese New Year, with the city since placed in lockdown following the outbreak of the virus which has killed dozens and left thousands ill.
A team official confirmed Wang and Yao were unavailable due to travel restrictions. The players will remain at home in isolation and under observation but it is understood none have shown any related symptoms of the virus.
The absences are a big blow to the Steel Roses. Wang has played over 100 matches for China, scoring 28 goals, while Yao was a member of last year’ s World Cup squad and has made 22 international appearances.
Wuhan was the original location for the Group B fixtures in the final round of Asian qualifiers for this year’ s Olympics. The six group matches also featuring Australia, Thailand and Taiwan were originally relocated to Nanjing and then Sydney after China withdrew as hosts at the weekend.
The Chinese team trained in isolation in Suzhou before departing for Australia. They will remain in Brisbane before heading to Sydney on Friday, with their tournament opener against Thailand at Campbelltown Stadium on Monday.
“ They went through all the same checks that any Chinese national flying in from China would have gone through, ” FFA chief executive James Johnson said. “ We’ re confident in the government’ s checks and balances. ”
China’ s second match will be against Taiwan at Campbelltown next Thursday before facing the Matildas at Bankwest Stadium on Sunday, 9 February. The top two teams progress to a two-leg home and away playoff against the top two from Group A for a spot in the Olympics. | general |
Ticket sales on hold as coronavirus casts doubt over Matildas Olympic qualifiers | The Matildas’ qualification tournament for this year’ s Olympics is in doubt amid fresh concerns about the potentially lethal coronavirus. Just hours after announcing the schedule for next week’ s six matches involving Australia, Thailand, Taiwan and China, FFA announced they would not start selling tickets on Thursday as planned.
The decision was taken after Australia’ s chief medical officer Professor Brendan Murphy advised authorities evidence suggested coronavirus is contagious before people show symptoms, and contacts of any confirmed cases must now be isolated following exposure.
China’ s women’ s team arrived in Brisbane on Wednesday morning but have since been placed in isolation at their hotel. Queensland’ s chief health officer Dr Jeanette Young said while the team’ s players, coaches and officials were healthy they had recently visited Wuhan, which is the epicentre of the virus’ s outbreak.
Dr Young said the team would have to stay in isolation until 5 February, which is two days after the tournament is set to start with a double-header at Campbelltown Stadium. China are scheduled to play Thailand on Monday with Australia facing Taiwan in their opening fixture.
“ FFA is working with the Australian government and AFC to explore the ramifications of this advice and how it may affect the staging of the women’ s Olympic football tournament qualifiers, ” a statement released late on Wednesday said.
An official with the Chinese FA told AAP the team had not shown any indications of the virus before departing for Australia. She said the 21 players, coaches and officers had all undergone testing with negative results.
China have also travelled to Australia without several players including key players Wang Shuang and Yao Wei. The pair, along with at least two others, had returned to their homes in and around Wuhan for Chinese New Year celebrations and due to local travel restrictions were unable to rejoin the squad.
Wang has played over 100 matches for the Steel Roses, scoring 28 goals, while Yao was a member of last year’ s World Cup squad and has made 22 international appearances.
Wuhan was the original location for the Group B fixtures before they were relocated to Nanjing and then Sydney after China withdrew as hosts at the weekend.
Despite the uncertainty of the event, experienced Matildas’ midfielder Elise Kellond-Knight praised officials for making player safety a priority. “ We’ re extremely thankful for the AFC and the FFA for putting player welfare at the forefront, ” Kellond-Knight said.
“ It’ s an extremely difficult scenario. We understand that China had the rights to hold these qualifiers but unfortunately – because of unpredictable circumstances – we haven’ t been able to go to China. ”
Back in China, all football games at all levels have been postponed in order to help control the virus spread, the Chinese FA said in a statement on its website. | general |
UK supermarkets move to cut antibiotic use in farming | Most of the UK’ s leading supermarket chains are making “ significant progress ” in reducing antibiotics in farming, but Iceland, Asda and Aldi have been named as falling behind in a new study.
Iceland was found to be the only major chain to have no publicly available policies on antibiotic use in its supply chain and no strategy in place to reduce the use of the vital medicines.
Asda says it does not support the routine preventive use of antibiotics, but publicly lists no restrictions on such use, other than the UK’ s minimum legal requirements, which campaigners say are insufficient. Aldi says publicly that it recommends that routine use should be avoided by its suppliers.
“ More and more supermarkets are at last collecting some data and all but Iceland have some sort of strategy in place – that is progress, ” said Cóilín Nunan, a scientific adviser to the Alliance to Save Our Antibiotics, which carried out the research. A similar report in 2017 found most supermarkets were falling short of best practice.
The UK’ s other leading supermarket chains in the survey – Co-op, Lidl, Marks & Spencer, Sainsbury’ s, Tesco, Waitrose and Morrisons – have all put in place bans on routine preventive dosing of livestock.
Waitrose was named in the study as leading the pack, with “ the most comprehensive antibiotic policies ”. M & S and Tesco were next-best.
The overuse of antibiotics is linked to the rise of superbugs and can also contribute to the evolution of dangerous viruses, similar to the coronavirus.
Top medics, including England’ s former chief medical officer Dame Sally Davies, have repeatedly warned that the rampant overuse of antibiotics is threatening a global disaster, as it gives rise to resistant germs which will mean common illnesses become untreatable.
A spokesperson for Iceland said the retailer was revising its policy “ in the coming weeks ” to include a ban on the routine use of antibiotics, restrictions on critically important antibiotics, and a new strategy to reduce antibiotic use among its suppliers. “ We are well aware that antibiotic overuse among farmed animals is an important issue for human health [ and ] have an established technical policy for Iceland’ s own label suppliers. We have always prohibited the use of growth promoters, ” said the company.
Aldi said it had moved to ban the preventive use of antibiotics after being contacted several months ago by the Alliance to Save Our Antibiotics for the purposes of the report. Asda said it complied with UK regulations, and added: “ We publish all use of antibiotics on our website each year for complete transparency. ”
Routine preventive dosing of healthy animals with antibiotics is also linked to the rise of potentially fatal viruses. Although the coronavirus recently discovered in Wuhan may have come from wild animals, similar outbreaks of viral diseases that spread to people – such as bird flu and swine flu – have been directly linked to intensive farming.
Antibiotics are not used to treat viruses, but overusing antibiotics allows farmers to keep animals much more densely packed than would otherwise be possible, and in these conditions new viruses can rapidly emerge and flourish.
“ We don’ t know where the coronavirus has come from – it could have come from wild animals, ” said Nunan. “ We do know that the way antibiotics are used in intensive farming allows more animals to be kept in close proximity and in those conditions we know viruses can evolve and spread. So there is an indirect link. ”
The report also found that Waitrose and M & S were the only supermarkets that did not permit their suppliers to use colistin, an antibiotic of last resort used to treat life-threatening infections in people. The World Health Organization has urged governments to restrict its use to human health.
The Alliance to Save Our Antibiotics is also urging the government to reinforce the UK’ s farming antibiotic regulations after Brexit. “ Preventive mass medication of livestock is very widely practised around the world and it does help to lower meat prices, ” said Nunan. “ Unless you get a ban on the importation of meat and dairy that have been treated with preventive mass medication, [ British ] farmers will have that competition. ” | general |
Siltronic AG: Siltronic sales and earnings in 2019 in line with expectations | DGAP-News: Siltronic AG / Key word ( s): Preliminary Results Siltronic AG: Siltronic sales and earnings in 2019 in line with expectations 29.01.2020 / 06:57 The issuer is solely responsible for the content of this announcement.
Press release Siltronic AG Hanns-Seidel-Platz 4 81737 Munichwww.siltronic.com
Siltronic sales and earnings in 2019 in line with expectations
- As expected, preliminary sales of EUR 1,270 million in 2019 are significantly lower than in 2018 ( EUR 1,456.7 million)
- Preliminary EBITDA fell to EUR 409 million and the EBITDA margin to a good 32 percent ( 2018: EUR 589.3 million; 40.5 percent)
- Preliminary EBIT of around EUR 298 million also significantly below the previous year ( 2018: EUR 497.7 million), as expected
- Second-best year in Siltronic's history
Munich, Germany, January 29, 2019 - Siltronic AG, one of the world's leading manufacturers of hyperpure silicon wafers, reported a noticeable decline in sales and earnings in 2019. While 2018 was a record year in terms of earnings, 2019 has once again shown how quickly the market environment can change. Due to high demand, sales volumes in the fourth quarter of 2018 were still at a record level. At the turn of 2018/19, the environment deteriorated significantly. Negative factors such as the trade dispute between the USA and China put a burden on consumer climate and economic growth in many regions. Many customers massively slowed down their wafer starts at the beginning of 2019, causing the demand for wafers to drop by a double-digit percentage. Similarly, Siltronic AG's sales declined by about 13 percent. Due to poorer utilization of production lines and significantly higher energy costs in Germany, the EBITDA margin also declined to about 32 percent.
Despite this decline in sales and earnings, Siltronic AG is reporting 2019 as the second-best year in its history.
Average selling prices at the beginning of the year were still higher than in 2018, but then fell slightly in the second half of the year. Due to the strong US dollar, sales prices translated into euros were slightly higher on average in 2019 than in 2018. The decline in sales resulted mainly from lower volumes. The decline in demand affected all wafer sizes, but was more moderate at 300 mm than at 200 mm. The small diameters were most affected. Demand from the logic and foundry business remained good at 300 mm. Despite initial positive news in the first weeks of 2020, a revival of demand from the memory sector is not expected in the short term due to high customer inventories.
According to preliminary and unaudited figures, revenue in 2019 amounted to approximately EUR 1,270 million, significantly below the previous year ( 2018: EUR 1,456.7 million). EBITDA reached EUR 409 million and was thus around 31 percent below the previous year ( 2018: EUR 589.3 million). The EBITDA margin reached a solid 32 percent ( 2018: 40.5 percent).
At around EUR 298 million, preliminary earnings before interest and taxes ( EBIT) were down significantly on the previous year ( 2018: EUR 497.7 million). The EBIT margin for 2019 is around 24 percent compared to 34.2 percent in 2018.
Due to the burden of special factors such as the discontinuation of the EEG hardship regulation ( increase in energy costs of around EUR 20 million), a slight increase in costs was recorded - despite ongoing and effective savings programmes.
In 2019, Siltronic invested around EUR 360 million in property, plant and equipment and intangible assets. In addition to the base investments of around EUR 90 million, this includes expenditure for the new ingot pulling hall in Singapore. Furthermore, the good financial situation of recent years was used to make important investments in automation, digitization and capabilities. This will secure and further expand Siltronic's position as one of the technology leaders.
As a result of the increased investments, the preliminary net cash flow for 2019, at around EUR 81 million, was significantly lower than in 2018 ( EUR 240.4 million), but exceeded expectations.
Despite the positive net cash flow, preliminary net financial assets declined to EUR 589 million ( 2018: EUR 691.3 million) due to the high dividend payment and the return of customer prepayments.
`` 2018 was a challenging and exciting year. Since we have little influence on the demand for our wafers, our focus has been and continues to be on our technological performance, increasing our productivity and optimizing processes through digitization, '' said Dr. Christoph von Plotho, CEO of Siltronic AG.
Sales development in the fourth quarter of 2019
Preliminary sales of around 304 million euros in the fourth quarter of 2019 were slightly above expectations, due in part to increased sales of wafers to customers who could not be served at times of full capacity utilization. The average selling price declined slightly in the fourth quarter.
Siltronic achieved a preliminary EBITDA of around EUR 90 million in the fourth quarter of 2019. EBITDA for the third quarter of 2019 was EUR 91.5 million. The preliminary EBITDA margin from October to December 2019 reached about 30 percent ( Q3 2019: 30.5 percent).
Macroeconomic and political uncertainties continue to influence developments in 2020
Possible negative factors for 2020 continue to include geopolitical and global economic developments such as the trade dispute between the USA and China, which has not yet been fully resolved, and tensions in the Middle East. Currently, it is difficult to predict the effects due to the outbreak of the corona virus. At the micro level, customers ' high inventory levels will have a negative impact on the development of demand in 2020. In some segments, such as logic, market observers and customers report improved demand for semiconductors. A recovery in demand from the memory sector could be longer to come due to still high inventories of raw wafers.
Against this backdrop, the company assumes that the 2020 financial year will see a slow start.
Siltronic AG - preliminary financial figures 20191)
1) The results in this document for Q4 2019 and Full Year 2019 are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.
Upcoming dates
A comprehensive reporting with detailed disclosures will be provided on March 9, 2020 when the final results for 2019 will be published. The Executive Board of Siltronic AG will conduct a conference call with analysts and investors ( in English only) on that day at 10:00 am ( CET). This call will be streamed via Internet. The audio webcast will be available live as well as on demand on Siltronic's website.
March 9, 2020 Annual Report 2019
April 23, 2020 Annual General Meeting
April 28, 2020 Q1 2020 quarterly statement
July 30, 2020 Q2 2020 Interim Report
October 29, 2020 Q3 2020 quarterly statement
Contact: Petra Müller Head of Investor Relations & Communications Tel.: +49 ( 0) 89 8564 3133 email: investor.relations @ siltronic.com
Company profile: Siltronic is one of the world's largest manufacturers of hyperpure silicon wafers and partner to many leading semiconductor companies. The company operates production sites in Asia, Europe and the USA. Siltronic develops and manufactures silicon wafers in diameters of up to 300 mm. Silicon wafers form the basis for modern microelectronics and nanoelectronics and are a key component in semiconductor chips driving computers, smart phones, navigation systems and many other applications. Siltronic AG employs around 4,000 people and has been a stock-listed company in Germany ( Prime Standard) since 2015. The Siltronic AG stock is listed on both the MDAX and TecDAX.
Disclaimer
This press release contains forward-looking statements based on assumptions and estimates made by the Executive Board of Siltronic AG. These statements can be identified by wording such as `` expect '', `` want '', `` anticipate '', `` intend '', `` plan '', `` believe '', `` strive '', `` estimate '', and `` will '' or similar terms. Although we assume that the expectations contained in these forward-looking statements are realistic, we can not guarantee that they will prove to be correct. These assumptions may contain risks and uncertainties that could cause the actual figures to differ considerably from the forward-looking statements. Factors that can cause such discrepancies include changes in the macroeconomic and business environment, changes in exchange rates and interest rates, the introduction of products that compete with our own products, a lack of acceptance of new products or services, and changes in corporate strategy. Siltronic does not intend to update these forward-looking statements, nor does it assume any responsibility to do so.
This press release includes supplementary financial indicators that either are or may be so-called alternative performance indicators that are not clearly defined in the relevant financial reporting framework. In assessing the financial position and performance of Siltronic, these supplementary financial indicators should not be used in isolation or as an alternative to those presented in the consolidated financial statements and determined in accordance with the relevant financial reporting framework. Other companies that present or report alternative performance indicators with similar names may calculate them differently. Explanations of the key financial figures used are available in the Annual Report of Siltronic AG.
Due to rounding, some of the figures presented in this press release as well as in other reports may not add up exactly to the stated totals and percentages presented may not accurately reflect the absolute values to which they relate.
29.01.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
962545 29.01.2020 | business |
China first-quarter growth may dip below 5% as virus spreads | The fast-spreading outbreak, which has killed more than 130 people and infected almost 6,000 in China, could cut first-quarter GDP growth by about 1 percentage point, Caijing magazine quoted Zhang Ming as saying.
`` GDP growth in the first quarter of 2020 could be about 5.0%, and we can not rule out the possibility of falling below 5.0%, '' Zhang said.
Zhang, an economist at the Chinese Academy of Social Sciences - a top government think tank - said his forecast was based on the assumption that the outbreak will peak in early to mid-February and end by the end of March.
Zhang is among many government economists and, while the Academy's views often serve as a recommendation for Chinese policymakers, his views may not fully align with those of the government, which has yet to issue any assesements
China's growth slowed to a near 30-year low of 6% in the fourth quarter, and analysts have said they expect the epidemic to drag on the economy.
Zhang estimated its impact on China's economy could be significantly bigger than that of Severe Acute Respiratory Syndrome ( SARS), a coronavirus that originated in China and killed nearly 800 people globally in 2002 and 2003.
The world's second-largest economy was relying more on services and consumption now than then, Zhang said, by way of explanation.
About 60 cases of the coronavirus, but no deaths, have been reported in 15 other countries, including the United States, France and Singapore.
Airports around the world are screening passengers from China, while foreign companies are curbing travel to China and airlines are cutting flights, with British Airways one of the biggest names to do so.
Domestically, the outbreak has hit sectors including transportation, tourism, catering and entertainment. Zhang said it could weigh on jobs, with the official survey-based unemployment rate likely to exceed 5.3% in the coming months, Zhang said.
In response, the government is likely to step up policy support, which could boost the annual budget deficit as a share of GDP to over 3% in 2020, he said.
The People's Bank of China could further cut banks ' reserve requirement ratios and interest rates, Zhang added.
Economic growth could recover later this year, bringing the full-year expansion to 5.7%, Zhang said. In 2019 growth was 6.1%, the weakest in 29 years.
Iris Pang, economist at ING, has forecast 2020 GDP of 5.6%.
Speaking before the start of the outbreak, policy sources told Reuters that Beijing planned to set a lower national growth target of around 6% this year from last year's 6-6.5%, relying on increased infrastructure spending to ward off a sharper slowdown.
( Reporting by Kevin Yao; editing by John Stonestreet) | business |
Oreo maker Mondelez sees coronavirus hurting first-quarter sales | The company reported quarterly revenue that beat estimates, helped by higher demand for its snacks in developing markets. Shares in Mondelez were up 2.6% after the bell.
Mondezlez's chief executive, Dirk Van de Put, said the coronavirus is expected to have only a short-term impact. China accounts for nearly 4.5% of the company's sales.
`` It's really too early to quantify for us at this point, '' Van de Put said of the expected impact. `` We are monitoring the situation closely. '' Mondelez will update the market as needed, he added.
`` We now have to see in the coming weeks what has happened with the sell-out during Chinese New Year, '' Van de Put said. The Chinese government has asked Mondelez to keep two factories closed for 10 days to minimize the risk of infection, he said. Wuhan, China, is the epicenter of the virus, which has killed more than 160 people.
`` We also have voluntarily put some travel restrictions to our own people to travel less within China and also for our global people to travel less to China, '' Van de Put said.
Van de Put also said Brexit is a risk to the company, but he does not expect to see an impact this year. `` If there is no deal near the end of the year, that would possibly be a disruptor, '' he said.
Emerging markets like China - where incomes and demand for e-commerce are rising - have become increasingly important to Mondelez as the consumer goods industry grapples with slowing demand in developed countries.
Mondelez has been pushing hard on investments and can still be in more stores, Van de Put said. He singled out growth in the company's biscuit businesses in India and China, as well as strong chocolate and gum sales in each country, respectively.
The Illinois-based company has invested heavily in both countries in recent years, spending more on marketing and creating products. In China, for instance, Mondelez has been working for years with Alibaba's online marketplace Tmall to expand its reach, creating novelties like wasabi- or hot chicken-flavored Oreos.
The company reported fourth-quarter revenue on Wednesday that beat estimates, helped by a 4.5% rise in sales from the Asia, Middle East and Africa business.
Net earnings attributable to the company fell to $ 726 million, or 50 cents per share, in the quarter ended Dec. 31. Excluding items, Mondelez earned 61 cents per share, a cent above analysts ' estimates, according to IBES data from Refinitiv.
Net revenue rose 2.1% to $ 6.91 billion, beating analysts ' expectations of $ 6.84 billion.
By Richa Naidu and Uday Sampath Kumar | business |
Coronavirus: en Chine, la colère des Africains victimes de discrimination | De notre correspondant à Pékin,
三名尼日利亚人被广州防疫部门从酒店公寓强行带走隔离，护照也被收缴！尼日利亚驻广州总领事闻迅赶来，毫不客气地从官员手中夺下3本护照，还给自己国民... pic.twitter.com/mDtN6LyM5A
« Rendez-nous immédiatement ces passeports. » L’ altercation entre un diplomate nigérian et les combinaisons blanches de la lutte contre la pneumonie virale à Canton est à l’ image de l’ agacement, pour ne pas dire de la colère ressentie dans de nombreuses capitales africaines.
Convocations des ambassadeurs chinois à Lagos et à Accra ou encore à l'UA, appel au secours de la communauté kényane en Une du Daily Nation à Nairobi ce samedi, et cet appel du consulat des États-Unis déconseillant aux Afro-Américains de venir dans la plus africaine des villes chinoises.
In the space of a week, we went from headlines celebrating China's donations of masks and other materials to help stop the spread of COVID-19 in Kenya to this. It's safe to say that China's `` donation diplomacy '' message is now entirely lost amid all that's going on in Guangzhou. pic.twitter.com/1F9EElr4os
Les images de ces Africains, pour la plupart des hommes d’ affaires contraints de dormir dans les rues du quartier de Yuexiu et de Baiyun à Canton, ont vite remplacé celles de la diplomatie sanitaire chinoise en Afrique. Avalanches de commentaires sur twitter: « Nous ne voulons plus de vos masques si nos ressortissants sont victimes de racisme en Chine », « nous sommes traités comme le virus » ou encore « n’ utilisez pas la communauté africaine comme bouc émissaire ».
Moussa Faki Mahamat, président de la Commision de la l'Union africaine a lui aussi convoqué l'ambassadeur chinois à l'UA.
« Mon bureau a invité l'ambassadeur de Chine auprès de l'UA, M. Liu Yuxi, pour exprimer notre extrême préoccupation face aux allégations de mauvais traitements infligés aux Africains à Guangzhou et a appelé à des mesures correctives immédiates », a indiqué Moussa Faki Mahamat sur son compte Twitter.
Ces expulsions de logement ou des hôtels font suite à un communiqué de la municipalité indiquant que cinq Nigérians avaient été testés positifs et s’ étaient rendus dans plusieurs restaurants et hôtels de la ville sans respecter leur quatorzaine, conduisant les autorités sanitaires à retrouver et tester 2 000 personnes potentiellement à leur contact.
Les braises de la suspicion et la peur de l’ étranger étant déjà entretenues par les craintes des autorités, largement relayées par les médias d’ État, d’ un rebond du coronavirus en Chine liés aux cas importés. Pékin ce vendredi a annoncé 10 ans de bannissement du sol chinois pour les étrangers ne respectant pas leur quarantaine, de nombreux abus de langages et dessins racistes ont fleuri sur les réseaux sociaux.
Rising xenophobia is being tolerated on the Chinese internet. In this comic strip cartoon, foreigners are depicted being dragged across the ground, thrown into garbage bins, attacked with a disinfectant spray and kicked around. ( 1/8) https: //t.co/iGqWeLDijT pic.twitter.com/9YFIt10rXI
Des débordements déjà constatés en début d’ année, lorsque Pékin a proposé une modification de la loi sur la résidence permanente pour les immigrés. Les différents témoignages rapportent le cas de propriétaire coupant l’ électricité pour déloger les locataires, de campagne de dépistage massive du Covid-19 et à des mises en quarantaine visant la communauté africaine, dont une partie n’ ont pas quitté le pays ces derniers mois.
D’ autres moins nombreux rapportent les gestes de solidarité de résidents locaux, parfois d’ autres communautés étrangères venus les soutenir en leur donnant des vêtements et des vivres. « Depuis le début de l'épidémie, la Chine et les pays africains se sont toujours soutenus mutuellement et ont toujours combattu conjointement le coronavirus », a fait savoir Zhao Lijian lors de son point de presse quotidien jeudi après-midi. « Le gouvernement chinois traite tous les étrangers en Chine de la même manière, a insisté le porte-parole de la diplomatie chinoise, ( …) et n ' a aucune tolérance pour les mots et les gestes discriminatoires. » | general |
Americans evacuated from China amid coronavirus outbreak to be monitored for days |
Health officials will not issue a blanket quarantine for the nearly 200 Americans who landed at
a California military base
following their evacuation from Wuhan, the epicenter of the deadly
coronavirus outbreak
in China.
The plan is to monitor passengers at the base for three days, checking them for fever and other symptoms at least twice daily, said Dr. Chris Braden, deputy director of the National Center for Emerging and Zoonotic Infectious Diseases at the US Centers for Disease Control and Prevention.
Want to track the virus in real time?
If health officials determine they pose low or no risk of infecting others, they can go home but will need to be monitored by local officials for the 14-day incubation period, he said. The patients staying at March Air Reserve Base near Riverside, California, might also choose to remain there for the 14 days.
Should anyone demand to go home within the first 72 hours, an individual quarantine is an option, Braden said.
Read More
`` If anyone demands to leave right now, that is where all of the partners... would come together and talk about what needs to be done, '' said Dr. Nancy Knight, the CDC's director of the division of global health protection, noting that US marshals are on hand to ensure everyone's safety.
Some passengers told Braden they 'd stay voluntarily, he said.
`` They wanted to know their own status. They wanted to know the status of their children. They wanted to protect their family, They wanted to protect others, '' he said.
Touching down in California
The plane chartered by the US State Department left Wuhan and touched down late Tuesday night at Ted Stevens Anchorage International Airport in Alaska
.
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After refueling and passenger screenings, it left for the March Air Reserve Base. There, local officials began working with the CDC to thoroughly screen each passenger again following other screenings by American and Chinese health officials in Wuhan.
The CDC cleared all passengers, most of whom are American diplomatic corps or their families, to continue on to California, Alaska officials said.
Passengers were screened in an isolated area of the Anchorage airport's north terminal, which handles international flights, and had no impact on general travel, airport manager Jim Szczesniak said.
The CDC will work with airport officials to clean the terminal, and there are no international flights scheduled at the airport until May, he said.
Passengers applauded when they arrived in the US
Passenger Scott Allis told CNN they received a hot meal in Anchorage, while Darby Siebels said passengers had a chance to charge their phones before getting back on the plane after 1 a.m. ( 5 a.m. ET).
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`` For many of us directly involved, this has been a moving and uplifting experience, '' said Dr. Anne Zink, Alaska's chief medical officer. `` The whole plane erupted in cheers when the crew said, 'Welcome home to the United States. ' ''
The fast-moving coronavirus
has killed 132 people and infected nearly 6,000 others
in China, most of them in the hardest-hit city of
Wuhan
. Ninety-one cases have been confirmed outside of mainland China, including five
in the United States.
The CDC has investigated 165 potential cases in 36 states. Of those, 68 tested negative, while 92 remain pending.
A battery of screenings
Officials were prepared to take 240 passengers, the plane's capacity, but the flight left with 201 people after some intended passengers failed to get to the airport or through screenings and other processes, Zink said. One passenger had a fever and was prohibited from boarding, health officials said.
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Included among the passengers are children ranging in age from 1-month-old to their teens, officials said.
Precautions were taken to separate the crew on the plane's upper level from the passengers on the plane's lower level, she said. The crew did not disembark in China.
Priority was given to US citizens at risk
The passengers include US diplomats and their families. The State Department said other US citizens could board on a reimbursable basis if space was available.
While there are about 1,000 Americans living in Wuhan, priority was given to US citizens who are ``
most at risk for contracting coronavirus
`` if they stay in the city, the State Department said.
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The department said it was unable to accommodate everyone due to space limitations, but it is working to identify alternative routes for US citizens to depart Wuhan by land.
The State Department issued a Level 4 advisory for Wuhan, meaning Americans should not travel to the city while the virus has an impact,
Vice President Mike Pence said
. It ordered personnel working at the US Consulate in Wuhan to depart for the United States.
Other countries including South Korea and Japan are sending charters to evacuate citizens from the epicenter of the outbreak. The European Commission said it was sending two aircraft to evacuate European Union citizens from Wuhan.
CNN's Joe Sutton, Paul P. Murphy, Stella Chan, Amir Ahmed, Christine Sever, Andy Rose and Debra Goldschmidt contributed to this report. | general |
How to stop Wuhan coronavirus outbreak from spreading throughout the world |
The outbreak of the
Wuhan coronavirus
in central China has infected thousands and spread overseas, raising the specter of a potential global epidemic as authorities desperately try to contain it.
Since the first case was identified in early December in
Wuhan
, capital of Hubei province, more than 5,900 people have fallen sick and at least 132 people have died in mainland China. In addition, there are dozens of confirmed cases in 17 locations outside of mainland China, including at least
five in the United States
.
The number of total cases worldwide now exceeds 6,000.
The world has never had more advanced medical science, but it's also never been so interconnected. So, what can be done to stop it from becoming a global epidemic?
There's still plenty we don't know about the virus, known officially as 2019-nCov, but Chinese authorities believe that it is
spreading human to human
, and that people can be
infected before symptoms show
.
Read More
The World Health Organization ( WHO) has stopped short of calling it a
global health emergency
, but there's no disputing that it is spreading. Over the weekend, Chinese President
Xi Jinping
warned the outbreak is accelerating.
`` Life is of paramount importance. When an epidemic breaks out, a command is issued. It is our responsibility to prevent and control it, '' he said, according to Chinese state media.
First thing's first. How bad is it?
Although it's scary to think of a deadly virus spreading, it's important to remember that the vast majority of cases so far have not been fatal.
The mortality rate is changing as the numbers of people affected change. As of Tuesday, Wuhan coronavirus ' mortality rate was about 2.3%. By comparison, the WHO estimated that the severe acute respiratory syndrome (
SARS
) outbreak of 2003 had an
overall fatality ratio of 9.6%
. Middle East respiratory syndrome (
MERS
) -- another type of coronavirus -- has a mortality rate of
35%
.
However, a large proportion of the coronavirus cases are considered ``
severe
`` and very few people have so far been released from hospital after recovering, according to official numbers.
So how are doctors treating it?
There are no specific treatments for coronaviruses, which range from the common cold to SARS. But just like the common cold, doctors can treat the symptoms, said Dr. Maria Van Kerkhove, head of the WHO's emerging diseases and zoonoses unit.
David Heymann, the WHO's Assistant Director-General for Health Security and Environment, said doctors would be making sure patients can breathe properly and give them life support if required. Aside from that, the benefit of keeping people in hospital would be isolating them from the general population, so they can't infect others.
What else can doctors do?
The way to stop an outbreak is to work out who a patient has had contact with, and try to stop them from spreading the virus, Heymann said.
Doctors put all the contacts the patient has had recently under `` fever
surveillance
, '' he said. If those contacts develop a fever, then they are immediately tested for the virus -- and then their contacts need to be traced. Hospitals must follow good practice, so that doctors themselves are not helping the disease.
`` By tracing contacts, identifying new cases, isolating new cases, you can interrupt transmission eventually, '' he said, adding that was how the 2003 SARS outbreak was brought under control. `` Those are the things you can do -- clean up hospital practices, make sure that they're done well so that you don't transmit in hospitals, and at the same time, make sure that you're tracing contacts and identifying all cases. ''
What about travel bans?
Authorities in Hong Kong, which borders mainland China, have established travel bans, telling residents of Hubei and those who have visited the province in the past 14 days that they can't enter the city. They 've also said that all public, cultural and leisure facilities will be closed `` until further notice '' in a move to control the spread of Wuhan coronavirus. On Tuesday, Hong Kong announced it was
closing many of its borders
with mainland China.
In mainland China, isolation has been taken to another level.
Chinese authorities have
shut down transport
in and out of Wuhan and at least 10 other cities, effectively quarantining millions of people. Wuhan's mayor, Zhou Xianwang, told state broadcaster CCTV on Monday that even though history may not remember the move kindly, `` we think as long as it's good for the control of the epidemic and people's safety, we are willing to take any responsibilities for locking down the city. ''
Peter Daszak, president of non-profit EcoHealth Alliance, which researches emerging infectious diseases, hailed the move as `` bold, '' saying it was not without political risks but might be enough to help stop coronavirus spreading.
It's a move that's never been done before at such magnitude -- and it has prompted
criticism from some experts
.
There were smaller quarantines during the 2014
Ebola outbreak
in West Africa, but those led to violent protests and a distrust of public health authorities, said Lawrence Gostin, a professor of global health law at Georgetown University and director of the WHO's Center on Global Health Law, adding that the move could even hamper the outbreak response.
Others have cautioned that it may be unwise for logistical issues. Wuhan health authorities earlier said local hospitals are overwhelmed, and the city plans to build two more hospitals within days.
`` The health risks for people in the city depends on how they're closing it down, '' said Heymann, referring to food and medical supplies. Even so, the move would hopefully decrease the number of cases that made it to other countries, he added.
What about vaccines?
Last century, smallpox killed about
300 million people
, according to the World Economic Forum. Thanks to vaccines, it became the first deadly disease to be completely wiped out.
So, it's no surprise that scientists would want to develop a vaccine for the Wuhan coronavirus. According to Daszak, there are already vaccine candidates -- and scientists around the world are working towards developing
one
.
Vaccine for new Chinese coronavirus in the works
But even if scientists do successfully develop a vaccine, it might not be ready in time to treat this outbreak.
According to Dr. Anthony Fauci
, director of the US National Institutes of Allergy and Infectious Diseases, it will take a few months until the first phase of clinical trials begin -- and then more than a year until a vaccine might be available.
Heymann, from the WHO, said it's highly unlikely that any vaccines that come up for study during this outbreak would be available anytime soon.
`` They 'll be available if this outbreak continues for any long period of time, but nobody knows what will happen to this outbreak, '' Heymann said.
Even then, a vaccine can't be used to treat people with the virus -- it can only be given to people who haven't already been exposed to it.
Should the WHO declare a global health emergency?
So far, the WHO has decided not to declare a public health emergency of international concern ( PHEIC) -- although Dr. Takeshi Kasai, the WHO's regional director for the Western Pacific, warned `` it may yet become one. ''
The World Health Organization should sound the alarm on Wuhan coronavirus
A PHEIC is
defined
as something that constitutes a public health risk to other states due to the speed of it spreading overseas, which requires a coordinated international response. If a PHEIC is declared, all WHO member states must abide by the WHO Emergency Committee's
recommendations
.
Last week, the WHO said that while the outbreak was serious in China, it had not yet hit a global level. But the WHO may also be concerned about creating unnecessary panic.
During the SARS outbreak that infected more than 8,000 people and killed 774 around the world between November 2002 and July 2003, the WHO warned visitors not to travel to Hong Kong. In May 2003, the WHO withdrew that advisory, but Hong Kong remained on a list of affected areas
until June 23, 2003.
Some considered that move to be an overreaction,
according to a paper
published in the Journal of the Royal Society of Medicine in August 2003.
`` In some circles, the WHO is perceived to have overreacted to the epidemic, causing unnecessary panic on the international scene and putting unjustified barriers in the way of persons from 'infected ' areas wishing to attend such events as business exhibitions or international sports activities, '' the paper said.
What can the public do? Are masks useful?
Masks are being used so widely in Hong Kong and mainland China that stocks are running low.
Wearing masks is now mandatory for those going out in public in Wuhan. The Chinese central government has asked manufacturers of medical face masks to resume production over the
Lunar New Year period
. According to the Ministry of Industry and Information Technology, 30 factories have resumed production and are making 8 million masks each day.
Students disinfect their hands with an alcohol solution before entering class at a school in Phnom Penh, Cambodia on January 28, 2020.
But it's still unclear how the virus is spread, or whether masks would stop it, Heymann said.
`` There's no evidence that it's circulating in a way that could prevent it, '' he said. And even if the disease can spread through the air, masks might not be entirely effective. `` Masks are very tricky to wear, '' he added, explaining that if there is an air gap in the mask, it won't work.
What else can be done?
Experts say there is one simple thing you can do: wash your hands.
The WHO's Van Kerkhove
said
she recommends washing hands with soap and water and sneezing into your elbow, if you have to sneeze.
An official checks the temperature of a passenger in front of a train ticket gate at Beijing international airport on January 27, 2020, amid the outbreak of a novel coronavirus.
Informing people about what to look out for is also vital, according to Heymann. If a person who is asymptomatic shows up in an airport, they may not be picked up by authorities who are only screening for fever.
`` A border doesn't stop infections, people can cross borders while they're in the incubation period. So, screening will pick out some, but it certainly won't get others, '' Heymann said.
`` So, what's important at screening is to tell people, not only 'we're taking your temperature '. But giving them some kind of notification about where they go should they get a fever. ''
CNN's Elizabeth Cohen and Dakin Andone contributed to this report. | general |
Lunar New Year coronavirus: Extending the holiday will hurt China's economy |
China has
taken the extraordinary step of extending the Lunar New Year holiday
— in some places by more than a week — in an effort to contain
the deadly coronavirus
. Some cities have also been effectively quarantined. That means major trouble for the world's second biggest economy.
The
virus outbreak
escalated just before the new year, one of China's most significant economic events. Chinese consumers spent more than 1 trillion yuan ( $ 145 billion) last year on holiday shopping, dining, entertainment and travel, according to state news agency Xinhua.
Extensive travel restrictions and fears about the virus mean
people aren't spending as much this week
. But the extended holiday — to February 2 nationwide and for another week beyond that in Shanghai and several provinces — will impact millions of people in other ways as government offices and schools remain closed.
How the coronavirus is already hurting global business
Major companies such as
Tencent
(
TCEHY
)
, Huawei and
Alibaba
(
BABA
)
, will feel the effects, too, as head offices remain shut.
Tencent
(
TENC
)
has told its roughly 54,000 employees that it will be extending holidays until February 9.
Exactly how big the economic hit will be is hard to predict. China hasn't come to a complete standstill — the Shanghai Stock Exchange is reopening on February 3. Grocery stores and food delivery services are still up and running, even in areas under lockdown.
Read More
ING economist Iris Pang said Wednesday that the outbreak would knock a modest 0.3 percentage points off China's first quarter growth.
But Tommy Wu, analyst at Oxford Economics, said the impact could be worse than the SARS outbreak in 2003, given the coronavirus is spreading rapidly and coincides with the holiday travel rush. Economists at Nomura warned that the outbreak could knock more than two percentage points off growth in the first quarter — larger than the quarterly drop registered during SARS.
Patrick Perret-Green, an economist with research firm AdMacro, said the
hit to China's annual growth rate
could be even more severe.
`` There will be no quick recovery. China was growing strongly [ during SARS ], as was the rest of the world, '' he said. `` Now China and the global economy is like a patient on dialysis, and somebody just pulled an IV out. ''
A big hit to growth
Before the outbreak escalated this month, the International Monetary Fund and the World Bank had forecast China's annual economic growth to fall to about 6%, down from 6.1% in 2019.
Perret-Green said the outbreak and measures to contain it could push China's 2020 GDP growth rate near levels last seen in 1990, when it was 3.9%, according to World Bank data.
The Wuhan virus is the last thing China's economy needs right now
`` Officially it may be closer to 4.5% and possibly the reality could be close to zero, '' said Perret-Green, who suggested the government severely overstates
its GDP figures to begin with.
Margaret Yang, an analyst at brokerage firm CMC Markets, said the `` adverse economic impact is enormous. ''
All sectors
will likely feel the effects of the delay in getting back to work, she said in a research note Tuesday, singling out transportation, tourism, entertainment, retail and commercial property.
The Wuhan coronavirus has already killed 132 people, and infected over 6,000 others in China, but is not yet
as lethal as the 2003 SARS outbreak. SARS had a roughly 10% fatality rate, compared to the estimated 3% for the coronavirus right now.
But the economic costs aren't only about how deadly the virus is,
according to Andrew Batson and Ernan Cui, analysts at research firm Gavekal Dragonomics.
`` These costs are instead going to be determined by the measures China's government takes to contain its spread — measures which have rapidly escalated to an unprecedented severity, '' they wrote in a research note on Tuesday.
Travel and tourism will have an outsized effect, Batson and Cui said. They noted that the sector raked in 514 billion yuan ( $ 74 billion) during the seven-day holiday in 2019, equivalent to 2% of first quarter GDP.
Travel industry suffering
There has already been a plunge in the number of trips made during the holiday. Liu Xiaoming, China's vice minister for transport, told reporters on Sunday that the overall number of trips made across the country on the first day of the Lunar New Year fell nearly 30% from a year ago. Travel by plane and train fell more than 41%, he added.
Major travel companies, hotels and airlines are waiving cancellation fees and offering refunds through most of February. Some airlines are suspending services.
British Airways suspends all flights to China as coronavirus spreads
Meanwhile, major tourist spots including museums, Beijing's Forbidden City and even
Disney's
(
DIS
)
parks
in Shanghai and Hong Kong have shuttered their doors. Beijing and other cities across China also canceled Lunar New Year celebrations, trying to limit crowds.
`` This will mean a permanent loss of revenue from tourist activities, as the canceled excursions are not going to be repeated after the holiday is over, '' wrote Batson and Cui.
Even after the extended vacation ends, China won't be returning to business as usual. Many people will likely remain cautious, staying indoors and avoiding crowded areas.
— CNN's Vanessa Yung, Serenitie Wang and Yong Xiong contributed to this report. | general |
Kenya Airways: Hospital Quarantines Student with Coronavirus-like Symptoms | A student who arrived in Kenya from China Tuesday has been quarantined in Nairobi after exhibiting coronavirus-like symptoms. Kenya Airways, the airline that the patient flew, said the decision to quarantine him was made by health authorities at Nairobi'sJommo Kenyatta International Airport.
A Kenyan student who returned home from China Tuesday is currently being held in an isolation ward at the Kenyatta National Hospital ( KNH). There are fears he may have been infected with the deadly coronavirus that has claimed more than 100 lives in China.
Kenya Airways released a statement Tuesday saying the passenger was given clearance to fly by Chinese health authorities at Guangzhou Airport.
But upon arriving in Nairobi, Kenyan health authorities decided to quarantine the traveler, who exhibited coronavirus-like symptoms. The decision, they said, was a precautionary measure.
As China scrambles to contain the virus, countries in Africa and around the world are on high alert.
Dr. John Nkengasong, Africa Director of the Centres for Disease Control and Prevention, said the virus may have already made its way to Africa.
`` It is very possible that we have cases that are going on in the continent, that have not been recognized, we have to admit that, '' he said. `` We can not certainly be so fortunate that so far we do not have cases in Africa but we have it all over the world. So we have to admit that there are certain things we do not know. ''
He said there may be false rumors of suspected cases because the initial coronavirus symptoms are similar to those of a common cold, such as fever and coughing.
Nkengasong said the virus will present `` a test case '' of Africa Union members ' health surveillance systems.
`` The surveillance system is as good as the health system in member states, and we all know that we are at very different levels of strength in the member states, '' he said. `` Some countries have very strong surveillance systems, some have weak surveillance systems and some we are working with them to strengthen their systems there. ''
Suspected coronavirus cases have also been reported in Ethiopia and Ivory Coast.
In Nairobi Tuesday, Kenyans such as Moffat Maina waited to hear the status of the student who was quarantined.
`` The issue concerning the coronavirus is an issue not only for the Ministry of Health but for all Kenyans to have that safety, '' he said. `` Wherever we are, we have to report if there are any signs, you don't have to panic but report it immediately to the relevant authorities so that they can counter it and control it. ''
Coronaviruses are a family of viruses that cause disease in animals. Some strains of the virus can infect humans.
So far, the death rate of those infected with the Wuhan coronavirus is about 2 percent.
Copyright Voice of America. Distributed by AllAfrica Global Media ( allAfrica.com)., source News Service English | business |
Global Stocks Edge Up Ahead of Fed Policy Decision | By Steven Russolillo and Avantika Chilkoti
Global stocks ticked up on Wednesday as investors focused on major U.S. and European companies ' results while awaiting fresh insights on the economy from the Federal Reserve.
Futures tied to the Dow Jones Industrial Average edged up 0.1%, and the Stoxx Europe 600 index gained 0.4%. In Hong Kong, where markets opened for trading for the first time since the Lunar New Year holidays began, the benchmark Hang Seng Index closed down 2.8% as investors weighed the impact of the fast-spreading coronavirus outbreak in China.
Later in the day, U.S. companies including McDonald's, Boeing, Mastercard, Microsoft, Facebook and Tesla are scheduled to report earnings for the latest quarter.
And while the Fed is widely expected to hold interest rates stable when it concludes its latest round of policy meetings this evening, investors are likely to be watching for fresh cues on how the U.S. central bank controls short-term rates. Policy makers will be looking to unwind a program that began last year when the Fed flooded markets with cash to avoid fresh spikes in overnight lending rates. Chairman Jerome Powell's comments at a press briefing may also provide hints of what lies ahead for the world's largest economy.
In Europe, corporate earnings triggered some of the most significant moves in equities. Banco Santander rose 3.5% after the Spanish bank's fourth-quarter profit beat expectations and its core capital ratio climbed. Royal KPN lost over 7% in Amsterdam after the Dutch telecommunications company warned that its consumer segment is under pressure from competitors.
In Asia, where markets have been roiled by the rapid spread of the coronavirus originating in central China, the death toll climbed to at least 132 and confirmed infections rose to about 6,000 people. Trading in mainland China is scheduled to resume next week after authorities decided to delay the reopening of exchanges.
The Hong Kong government unveiled measures on Tuesday to limit travel to and from mainland China to try to contain the outbreak, though it stopped short of completely shutting the border. So far, there have been eight confirmed cases of coronavirus in Hong Kong.
| business |
As coronavirus spreads, so too does online misinformation |
False claims about how the coronavirus began, the number of people infected and promises of magical cures are spreading on the internet.
The rise in false or misleading online posts about the virus, which has
infected thousands of people
primarily in mainland China, could once again test the ability of social media companies to handle viral misinformation on their platforms.
Maarten Schenk from Lead Stories, a fact-checking organization that works with Facebook, said his team has observed the sharing of conspiracy theories on multiple social platforms
about the origins of the virus.
`` It always has to be something sinister, '' Schenk said of the conspiracy theorists ' misinformation, which includes false claims that the virus was the creation of a government.
Some people, Schenk said, are `` not trusting the narrative about the numbers of deaths and infections. '' He noted there are people citing `` secret military sources, '' who
almost certainly do not exist, claiming that tens of thousands of people have died as a result of the virus, far in excess of current estimates from official sources.
Read More
A Facebook spokesperson told CNN Business
it was working with its fact-checking partners to debunk false claims about the virus. Once
Facebook
(
FB
)
posts and links containing claims are fact-checked and found to be false, a Facebook spokesperson said, the platform
`` dramatically '' cuts
its distribution and people who see this content, try to share it, or already have, are alerted that it's false. ''
The company pointed to several fact-checks, including
one from PolitiFact
that reads, `` No, there is no vaccine for the Wuhan coronavirus, '' and
another from AFP
that states, `` The coronavirus plaguing China was not created by a US government agency. ''
A video
purporting to show an explosion
in Wuhan, the city in China at the center of the coronavirus, was posted on YouTube last week and has been viewed almost 90,000 times. The video's description suggests the explosion is in some way related to the coronavirus, but the video is actually from 2015, according to Lead Stories.
A
Google
(
GOOGL
)
spokesperson pointed CNN Business to policy changes in recent years
for Google
and its
video platform YouTube
, which are designed to surface information from authoritative sources at the top of search results. Like Facebook, the company doesn't wipe false claims from its platforms entirely.
On Twitter, users
searching
for `` coronavirus ''
in the US and other countries, including Hong Kong, Brazil, and Australia, are first prompted to visit official channels of information about the virus. In the US, Twitter directs users to the Centers for Disease Control and Prevention, beneath a bold headline that reads: `` Know the facts. ''
A
Twitter
(
TWTR
)
spokesperson told CNN Business on Tuesday that the company has not seen a coordinated increase in disinformation related to the coronavirus.
In a blog post Tuesday
, the company said it had seen over 15 million tweets about the coronavirus in four weeks.
While American tech companies have mostly been in the spotlight on misinformation issues in the past, TikTok, an app owned by a Chinese company, is also drawing scrutiny in how it is handling misinformation about the coronavirus.
US liberal monitoring group Media Matters for America
published research
on Tuesday showing the spread of misinformation about the coronavirus on TikTok, a video platform that is becoming increasingly popular in the US and has
come under scrutiny
from US lawmakers because of its Chinese ownership.
`` Our Community Guidelines do not permit misinformation that could cause harm to our community or the larger public, '' a spokesperson for TikTok said in a statement provided to CNN Business on Wednesday. `` While we encourage our users to have respectful conversations about the subjects that matter to them, we remove deliberate attempts to misrepresent authoritative sources of news. ''
Correction: An earlier version of this article misspelled the name of Maarten Schenk. | general |
Corona virus: Death toll climbs to 106 as China tightens measures | The death toll from the new coronavirus now stands at 106, with the number of infections almost doubling in a day.
The number of total cases confirmed by China rose to 4,515 as of 27 January, up from 2,835 a day earlier.
Japan is sending a plane to Wuhan to evacuate its citizens, as efforts to repatriate foreign nationals from the city at the epicentre of the outbreak gather pace.
The virus has spread across China and to at least 16 countries globally.
Wuhan, as well as wider Hubei province, are already effectively in a lockdown with strict transport restrictions in and out of the area. Wearing masks in public is now mandatory in some Chinese cities.
On Monday, authorities in Beijing confirmed a 50-year-old man had died - the first fatality in the Chinese capital from the virus.
The coronavirus causes severe acute respiratory infection and there is no specific cure or vaccine.
Most of the deaths have been in Hubei province with the victims being elderly people or those with pre-existing respiratory problems.
A total of 60 people had been discharged from hospital after recovery, according to Chinese state media.
The outbreak of the virus comes during the Lunar New Year celebration which usually sees millions travel across the country to visit relatives and friends.
To try and stop the spread of infections, many of the new year festivities have been suspended and the holiday period has been extended by three days to Sunday.
In the last 24 hours:
* Beijing and Shanghai have introduced a 14-day observation period for people arriving from Hubei
* Authorities have postponed the new semester for schools and universities nationwide, without giving a resumption date
* China Railway Group said would suspends hundreds of train lines throughout the country
* The immigration administration has encouraged citizens to reconsider the timing of overseas travel to reduce cross-border movement.
* In Wuhan, travel from the city of 11 million people has been severely restricted and non-essential vehicles have been banned from the roads.
* The city's mayor though said about five million people had already left the city ahead of the holidays and before the lockdown.
* Several major cities have suspended public transport systems, taxis and ride-hailing services.
* The Disneyland attraction parks in Shanghai and Hong Kong have both been closed.
* How is the virus spreading?
* The new coronavirus is thought to have emerged from illegally traded wildlife at a seafood market in Wuhan and can now spread between people.
* Chinese authorities over the weekend said the virus was - like a normal flu - able to spread during its incubation period and before any symptoms appeared.
* This would set it apart from cases like Sars and Ebola and make it much harder to contain.
* The incubation period can range from two to 10 days, according to the World Health Organization ( WHO).
* However unlike China, it said it remained unclear whether the virus was contagious before symptoms appear.
* he United States, which has also had several infected cases, has urged its nationals to `` reconsider travel '' to China and is advising against travel to Hubei.
* The country plans to fly consular staff and US citizens out of Wuhan in the coming days.
* Japan is expecting to evacuate about 200 nationals on a chartered plane on Wednesday morning, with health workers on board to monitor passengers. The evacuees will be asked to look out for any symptoms of the new coronavirus for two weeks after their return.
* Many other countries have also warned against any non-essential travel to China. Like the US and Japan, France has said it plans to airlift citizens out of Wuhan.
* The UK is yet to make a similar decision but has urged Britons to leave the area if they can - however this has upset some living in Hubei who complain they are trapped.
* The Philippines on Tuesday announced they would stop issuing visas on arrival for Chinese travellers.
* The virus causes severe acute respiratory infection and symptoms seem to start with a fever, followed by a dry cough. After a week, some people can experience shortness of breath and need hospital treatment.
* The virus itself is a new, or `` novel '' coronavirus - a family that normally affects animals.
* The effect of the coronavirus family on humans has long been observed mainly in the form of the common cold. In recent decades though, more serious coronaviruses - like Sars or Mers - have proven potentially deadly to humans.
* Yet even in the cases of severe viruses most people infected were likely to fully recover just like they would from a normal flu.
* On Tuesday, an expert at China's National Health Commission ( NHC) said one week was sufficient for a recovery from mild coronavirus symptoms.
* According to local media, the NHC also said the virus could infect children, but that their symptoms would be relatively mild.
© Pakistan Press International, source Asianet-Pakistan | business |
Air Mauritius: No Case of Coronavirus Detected Up to Now in Mauritius | No case of coronavirus has been detected up to now in Mauritius, affirmed the Minister of Health and Wellness, Dr Kailesh Kumar Singh Jagutpal, during a joint press conference held, yesterday, in Port Louis with regards to the outbreak of the novel coronavirus in China, particularly in the City of Wuhan, located in the province of Hubei.
The joint press meet was organised by the Ministry of Health and Wellness and the Ministry of Foreign Affairs, Regional Integration and International Trade. The Minister of Foreign Affairs, Regional Integration and International Trade, Mr Nandcoomar Bodha, the Ambassador of the People's Republic of China to Mauritius, Mr Sun Gongyi, the World Health Organization ( WHO) Representative in Mauritius, Dr Laurent Musango, the Chief Executive Officer of Air Mauritius, Mr Somas Appavou and other personalities were present.
Minister Jagutpal reassured the Mauritian population that all precautionary measures are being taken at the airport through strict screening of passengers via thermo detectors. Until now, he said, there have been nine symptomatic cases placed in the Quarantine Ward of Souillac hospital, out of which two persons have left for China and the remaining seven individuals have undergone screening and they are not suffering from the coronavirus.
He informed that all passengers coming from the city of Wuhan are being put in the Quarantine ward for an incubation period of 14 days and travellers coming from China are being monitored by Health inspectors. As regards the medical tests, Minister Jagutpal stated that these are being sent to Germany and South Africa and needful is being done so that they are processed in Mauritius in the upcoming days.
For his part, Minister Bodha pointed out that from January till now, 5000 passengers have travelled from China to Mauritius. Out of 20 Mauritian students studying in Wuhan, three students have already returned to Mauritius, and 13 have written letters to his Ministry to be evacuated from the affected city, he underlined.
The Ministry of Foreign Affairs, Regional Integration and International Trade, will stay in touch with the other four students to know whether they would opt to come back to Mauritius. On this score, the Minister stated that his Ministry is working in collaboration with the Embassy of the People's Republic of China with a view to helping the students return to Mauritius as Wuhan is locked down and travels are banned from the city. Minister Bodha further urged all Mauritians to submit the names of their relatives in Hubei province and China so as to trigger necessary actions to help them.
As for Ambassador Sun Gongyi, he reiterated that the Chinese Embassy will work collaboratively with the Mauritian Government with a view to provide support to Mauritians in China.
For his part, the WHO representative, Dr Laurent Musango highlighted that proper screening is being done at the airport of Mauritius and advised each and everyone to take precautionary measures while travelling.
The Chief Executive Officer of Air Mauritius, Mr Somas Appavou, spoke of the precautions that are being taken by the national airline, which he said are in conformity with all established norms and protocols. He indicated that all flights to Shanghai and Hong Kong are being maintained.
Copyright Government of Mauritius. Distributed by AllAfrica Global Media ( allAfrica.com)., source News Service English | business |
China flexes oil refining muscle, upping pain for Asian rivals | Already the world's No.2 oil refiner after the United States, China added 800,000 barrels per day ( bpd) of capacity last year - 80% of the United Kingdom's refinery throughput - and analysts expect a further 460,000 bpd to become operational in 2020.
Domestic demand, however, has failed to keep pace. Chinese exports of diesel, gasoline and jet fuel combined jumped 20% in 2019, reaching as far as Mexico, Nigeria and Italy, and weighing on global refining margins.
Asian benchmark refining margins for diesel and jet fuel are already languishing at more than two-year lows, and any increase in Chinese shipments is expected to add further pressure. < GO10SGCKMc1 >
For a graphic on Singapore refining margins spiral lower amid China's expanding fuel production surplus: https: //fingfx.thomsonreuters.com/gfx/ce/7/8278/8259/SingaporerefMarginsJan2020.png
`` The growth in product supplies will far outpace the expected demand growth of transportation fuels, adding pressure to already weak regional cracks, '' said Chen Jiyao, oil consultant with FGE.
Analysts expect aviation fuel and gasoline to lead China's export growth this year due to bulging supplies and slackening domestic consumption, with the coronavirus outbreak adding to concerns, pinching refining profits at regional exporters such as South Korea and Singapore.
China is already Asia's No.1 exporter of gasoline and jet fuel, and ranks No.3 in diesel after India and South Korea.
OIL SUPPORT
Still, with refinery throughput set to jump by 500,000 bpd to 620,000 bpd due to expansions and new refineries, according to analysts at FGE, SIA Energy and Wood Mackenzie, China's push will extend a bright spot for crude oil demand.
While the growth rate is down from last year's 921,000 bpd, it will still account for nearly half the increase in global oil demand forecast by the International Energy Agency this year.
China imports around 80% of its oil needs, and crude imports are estimated to rise by 400,000-480,000 bpd in 2020, according to FGE's Chen and Seng-Yick Tee, senior director of SIA Energy. This is down from 882,000 bpd last year, according to China customs data.
The oil will feed Sinopec Corp's greenfield 200,000-bpd plant in Zhanjiang, Sinochem's 60,000-bpd expansion facility in Quanzhou, and the 200,000-bpd crude unit of privately-led Zhejiang Petrochemical Corp which started operations in Zhoushan last December.
For a graphic on China's refining capacity & crude oil throughput:
https: //fingfx.thomsonreuters.com/gfx/ce/7/8233/8214/China's% 20refining% 20capacity% 20vs% 20throughput.png
Increased purchases will be a boon for exporters like Saudi Arabia, Kuwait and the United States, which is looking to boost energy product sales to China as part of Phase 1 of the trade deal.
Last month's Phase 1 pact means China needs to boost buying of U.S. oil, which is mainly light and of low-sulphur, but as the new plants are geared towards processing medium high-sulphur grades, importers will have to find a balance between their refining needs and Beijing's imperatives.
`` Political fiat rather than market mechanisms will dictate flows, '' said Michal Meidan, director of the China energy programme at the Oxford Institute of Energy Studies.
`` Baseloads for the new refineries are mainly Middle Eastern grades so U.S. flows will likely push out West African or North Sea oil ( of similar quality), '' she said.
JET FUEL FLOWS
Analysts expect China's exports of diesel, gasoline and jet fuel combined to maintain double-digit growth in 2020.
Aviation fuel is set to lead exports with a 20% increase, due to faster expansion in domestic production versus declining demand growth, said Wang Yanting, Shandong-based analyst at consultancy JCL Network Technology.
Curbs on air travel amid fears of a new coronavirus epidemic will further dampen jet fuel consumption, which an executive with China National Aviation Fuel Company told Reuters grew at 6.2% last year, down from 7% in 2018.
`` We were forecasting growth at 6% this year ( before the virus outbreak). It could only be lower, '' said the executive.
Exports of diesel and gasoline, however, will be capped as refiners shift production to make cleaner marine fuels to meet new international emission standards that came into force this year.
Refiners will divert more vacuum gas oil, the main feedstock for the production of very low sulphur fuel oil, to marine fuel, reducing diesel or gasoline output depending on plant configuration, refinery officials said.
Gasoline exports are still seen growing strongly, however, after surging 27% last year.
For a graphic on China's refined oil products output vs exports:
https: //fingfx.thomsonreuters.com/gfx/ce/7/8234/8215/China's% 20refined% 20oil% 20products% 20output% 20vs% 20exports.png
( This story corrects to read `` she said '', paragraph 15)
( Reporting by Chen Aizhu in Singapore and Muyu Xu in Beijing; editing by Richard Pullin)
By Chen Aizhu and Muyu Xu | business |
Ford to resume production at China joint venture with Changan on February 10 | The production plan for its factories in Chongqing and Hangzhou comes as local governments have extended Lunar New year holidays to rein in a coronavirus that has killed more than 130 people in China.
( Reporting by Yilei Sun and Brenda Goh; Editing by Clarence Fernandez) | business |
Fosun International: - First Batch of's Donated Medical Supplies Arrives in Shanghai amid Global Procurement | Flight LH8404 from Frankfurt, Germany arrived at Shanghai Pudong International Airport, and unloaded 50,000 sets of GB19082-2009 protective medical suits.
This is Fosun's first batch of global emergency medical supplies, as well as the first batch of overseas medical supplies arriving in Shanghai, which will be sent to Wuhan, Shanghai and other serious epidemic areas.
The 50,000 sets of protective medical suits with arrival in Shanghai this time were microporous membrane full-body protective clothing purchased by Fosun from Germany's ASATEX company, which meets the GB19082-2009 standard by the National Health Commission for the prevention of the new coronavirus pneumonia epidemic. It can effectively protect against particulates and liquid splattering, which makes it qualified to be used for the clinics. Some of these protective medical suits will be shipped directly to Wuhan and are expected to arrive on the evening of Jan 28.
The 100,000 masks purchased by Fosun from India will also arrive at Shanghai Pudong Airport at around 8:20 pm on Jan 28. These 100,000 masks are Honeywell N95 models, which meet the medical protection standards by the National Health Commission. The medical material dispatch to the epidemic area will help alleviate the shortage of medical supplies in the severely affected areas.
Thanks to the joint efforts of the Fosun headquarters and its German and Indian teams, the procurement and transportation of the medical materials have overcome many hurdles such as complicated procurement procedures and tight logistics coordination timing during holidays. 50,000 sets of protective medical suits purchased by Germany were packed into 84 boxes at the Frankfurt Airport's warehouse in Jan 26's afternoon at its local time, and arrived at Shanghai Pudong Airport by the latest LH8404 cargo flight.
In addition, more than 10,000 masks from Portugal as well as more than 1,900 pieces of protective medical suits and more than 900 masks from Japan have also arrived in Shanghai and are being transferred to the epidemic area.
In the past few days, the domestic epidemic situation has escalated rapidly, and the epidemic prevention work is undergoing against time. Fosun International Chairman Guo Guangchang, CEO Wang Qunbin and other top management team directly ordered the material purchase within Fosun's global system and required Fosun's overseas colleagues to make every effort to find the source and follow the actual requirements and send back by airplanes to save time. Employees of Fosun's various departments also gave up their vacation and family reunion time, entered into a state of fighting, and coordinated around the clock. Fosun has confirmed it has purchased nearly 600,000 medical supply units worldwide, including more than 330,000 medical masks and over 270,000 protective medical suits. Fosun is also actively ensuring relevant materials arrive in the country as quickly as possible, and will donate to the epidemic areas as soon as possible
The material delivery was fully supported by China's Ministry of Foreign Affairs, the embassies in Germany, India and other countries as well as relevant departments in Shanghai, and German customs and other departments. Fosun's German and Indian teams are deployed throughout the process to ensure the delivery of materials. The Embassies in Germany and India provided support immediately after learning that the materials with Fosun qualified as 'non-commercial use ', and issued notes to the foreign and customs ministries of Germany and India, urging them to open expediated windows on the weekends. Quick clearance of the medical supplies helped catch the Fosun charter flights as soon as possible and ship the supplies to the frontline of domestic epidemic areas.
After learning that the first batch of supplies successfully arrived in Shanghai from Germany, Fosun's Chairman Guo Guangchang said, 'It took less than four days from the start of our global material procurement plan to the first batch arrival in China. Cross-border and cross-departmental communication show our efficiency to truly reflect the spirit of a shared community of mankind. It also strengthens our confidence. Fosun will make full use of our global resource advantages, go all out to support the fight at domestic epidemic areas, and contribute to the early victory. '
In the early morning of Jan 28, Shang Yuying, deputy secretary general of the Shanghai Municipal Government, made a special trip to Shanghai Pudong Airport to receive the medical supplies donated by Fosun and represented by Fosun's Co-President Xu Xiaoliang. Fosun CEO Wang Qunbin said Fosun's global medical supply procurement plan is still ongoing, and medical materials purchased in the United Kingdom, Germany, India, the U.S. and other places are quickly finishing up with various procedures and strive to be shipped back to domestic epidemic areas as soon as possible.
Contact:
Ms. Betty Li
Email: IR @ fosun.com
( C) 2020 Electronic News Publishing, source ENP Newswire | business |
Novartis predicts rising sales and minimal disruption from coronavirus | The Swiss drugmaker's upbeat outlook and quarterly results on Wednesday outshone the previous day's results from Pfizer and set the bar for rival Roche, which is expected to report higher 2019 sales and profit on Thursday.
Novartis shares were up 1.5% at 1337 GMT after the company said it would raise its dividend 4% to 2.95 Swiss francs per share and as Narasimhan downplayed the threat of coronavirus disruptions.
China is one of Novartis's fastest-growing markets and has research and development operations there but also obtains supplies of active pharmaceutical ingredients from Chinese suppliers.
After the coronavirus outbreak, Novartis asked Chinese staff to work from home until Feb. 10 while suspending some business travel, but Narasimhan said he expects the company to emerge unscathed thanks to sufficient supplies to ride out interruptions.
The head of generics unit Sandoz, Richard Saynor, said the company has evaluated its stocks of ingredients and concluded that it has an adequate buffer for now.
China accounts for more than $ 2 billion in annual business for Novartis and last year produced double-digit growth including the launches of Cosentyx and Entresto, a drug Narasimhan predicts could top $ 1 billion in sales in China.
Novartis's broad drugs portfolio, including treatments for cancer, arthritis and rare diseases, helped the company post fourth-quarter core net income of $ 2.99 billion, up 13% in constant currencies, on revenue up 9% at $ 12.4 billion.
The group is benefiting from a mix of products developed in-house, such as psoriasis medicine Cosentyx and heart failure remedy Entresto, as well as $ 2.1 million-per-patient gene therapy Zolgensma, acquired through a 2018 acquisition.
`` A company of our size, with now approaching $ 50 billion of revenue... has to have a diverse approach to therapeutic areas, '' CEO Narasimhan told a news conference in Basel.
`` We want to cover the unmet needs of humanity, so that ranges from cardiovascular disease and oncology, all the way to rare diseases. ''
For 2020, Novartis expects net sales growth of up to high-single-digit percentages, with core operating income potentially rising even faster.
`` The overall results, with the focus on the main drugs business and the strong outlook for 2020, is likely to be taken positively by investors, '' said Zuercher Kantonalbank analyst Michael Nawrath, who has an `` overweight '' rating on the stock.
Overall, Cosentyx's sales for the 12-month period rose 28% to $ 3.6 billion, Entresto was up 71% at $ 1.7 billion and Zolgensma hit $ 361 million after seven months on the market.
By John Miller | business |
Apple is unstoppable, Boeing pays for past mistakes |
Earnings. Microsoft, Facebook, Mastercard, Novartis, Boeing, McDonald's, PayPal, Tesla, General Electric, and Banco Santander are among companies reporting their results today.
Apple rides an incredible momentum. Apple's share gained 2.2% in pre-trade on the day after the publication of better-than-expected quarterly results, boosted by healthy iPhone sales, although services just missed the consensus. The group's revenue forecast for the current quarter is also better than expected.
Boeing checks out. Boeing published a loss for the fourth quarter of 2019 as a result of the ongoing 737 MAX crisis, which could cost the group more than $ 18 billion.
Starbucks hit by Chinese virus. Starbucks lost 1% after it said today that it expects a financial impact from the coronavirus epidemic in China, where the group has closed several thousand outlets and reduced the opening hours of many others.
Glass half full? LVMH has recorded a slowdown in its growth rate but hits new records in 2019. Analysts point out that year-end organic growth is a little lower than expected, but they generally welcome the group's solidity and its prospects, and several price target increases have been reported since last night.
New beginnings. L Brands’ stock gained 10% after a Wall Street Journal article reported that CEO Leslie Wexner has begun discussions about his departure and is considering various options for the Victoria's Secret brand.
Very expensive compromise. Airbus will pay €3.6bn to close ongoing anti-corruption investigations in France, the United Kingdom and the United States, under protocols that have yet to be validated by the courts in the three countries on January 31. `` Airbus confirms that it has reached an agreement in principle with the French National Financial Prosecutor's Office, the British Serious Fraud Office and the United States, '' the manufacturer said. The details of the case in this paper. The end of this type of uncertainty is generally rather well perceived by the markets, even if at a high price.
Luca de Meo at the wheel. End of the suspense, with the appointment of Luca de Meo, ex-Seat, at the head of Renault, as recent rumors had suggested. He will be assisted by Clotilde Delbos. This is the anticipated tandem. He will have his work cut out to revive a group deeply bruised by months of uncertainty and the Ghosn affair.
Other results. eBay disappoints and loses ground after the closing. Salvatore Ferragamo returns to growth in 2019. Novartis quarterly earnings per share fall slightly below expectations. Banco Santander net income slightly ahead of expectations.
Nissan is restructuring. The appointments at the head of Renault were welcomed by Nissan CEO Makoto Uchida, while the Japanese is expected, according to good sources, to announce a tightening of its restructuring plan, which could lead to the closure of two plants and the loss of 4,300 jobs. Information obtained by Reuters suggests that the manufacturer is looking to save `` at least $ 4.4 billion '' on a full-year basis. Job cuts in support functions in the US and Europe are to be expected.
Kone confirms Thyssen move. Kone has confirmed that it has submitted a non-committal offer for the elevator division of ThyssenKrupp, without citing an amount, even though rumors are talking about €17 billion. However, the Finn said his proposal is `` reasonably close to the value circulated in the media ''. He could be allied to the CVC fund. In this case, the main obstacle should be antitrust, given the modest number of large players in the sector.
In short, elsewhere. Match Group CEO Mandy Ginsberg resigns. London finally allows Huawei equipment on UK networks, but with a limited role. Leonardo buys out the Swiss company Kopter for €185m. Tim Hortons ( Restaurant Brands) gives up Beyond Meat products in the last two Canadian provinces where they were sold, due to lack of consumer appetite. Xilinx will cut 7% of its workforce. Toyota ceases production in China until February 9. Vodafone is selling 55% of its Egyptian subsidiary to Saudi Telecom for 2.39 billion dollars. | business |
UK presses China to let dual nationals join coronavirus exodus | The British government is urgently pressing Beijing to allow dual nationals to leave China after public outcry over families being split up during the coronavirus evacuations.
Only British passport holders who do not also hold Chinese nationality are being allowed to leave. The British embassy in Beijing is urging the Chinese to let dependents of British nationals and British-Chinese dual nationals leave too.
“ Our priority is to keep British nationals and their family members together and we have urgently raised this with the Chinese authorities, ” a Foreign Office spokesperson said on Wednesday.
The foreign secretary, Dominic Raab, raised the issue of dual nationals with his Chinese counterpart on Tuesday, but the Chinese government has maintained its stance.
It is caused by a member of the coronavirus family that has never been encountered before. Like other coronaviruses, it has come from animals. The World Health Organization ( WHO) has declared it a pandemic.
According to the WHO, the most common symptoms of Covid-19 are fever, tiredness and a dry cough. Some patients may also have a runny nose, sore throat, nasal congestion and aches and pains or diarrhoea. Some people report losing their sense of taste and/or smell. About 80% of people who get Covid-19 experience a mild case – about as serious as a regular cold – and recover without needing any special treatment.
About one in six people, the WHO says, become seriously ill. The elderly and people with underlying medical problems like high blood pressure, heart problems or diabetes, or chronic respiratory conditions, are at a greater risk of serious illness from Covid-19.
In the UK, the National health Service ( NHS) has identified the specific symptoms to look for as experiencing either:
As this is viral pneumonia, antibiotics are of no use. The antiviral drugs we have against flu will not work, and there is currently no vaccine. Recovery depends on the strength of the immune system.
Medical advice varies around the world - with many countries imposing travel bans and lockdowns to try and prevent the spread of the virus. In many place people are being told to stay at home rather than visit a doctor of hospital in person. Check with your local authorities.
In the UK, NHS advice is that anyone with symptoms should stay at home for at least 7 days. If you live with other people, they should stay at home for at least 14 days, to avoid spreading the infection outside the home.
China’ s national health commission confirmed human-to-human transmission in January. As of 6 April, more than 1.25m people have been infected in more than 180 countries, according to the Johns Hopkins University Center for Systems Science and Engineering.
There have been over 69,500 deaths globally. Just over 3,200 of those deaths have occurred in mainland China. Italy has been worst affected, with over 15,800 fatalities, and there have been over 12,600 deaths in Spain. The US now has more confirmed cases than any other country - more than 335,000. Many of those who have died had underlying health conditions, which the coronavirus complicated.
More than 264,000 people are recorded as having recovered from the coronavirus.
Families have spoken out about the prospect of being split up during the evacuation process. Sindy Siddle travelled with her husband, Jeff, and nine-year-old daughter, Jasmine, to Hubei province to spend the lunar new year with her family. The family, from Prudhoe, Northumberland, are now facing their “ worst nightmare ” as Sindy has been told she will not be allowed on the evacuation flight as she has a Chinese passport.
Jeff Siddle said: “ Having to leave Sindy in China would be the worst thing that anyone could be put through. How am I going to tell Jasmine that her mum has to stay behind? ”
Natalie Francis, 31, a teacher from York, was told that her three-year-old son, who has a Chinese passport, would not be allowed to leave.
Chinese authorities have imposed the same restrictions on other countries evacuating citizens out of the country, including the US. China does not recognise dual nationality, meaning any citizen who wants to get a passport from another country is supposed to give up their Chinese one.
Many people unofficially hold two passports by acquiring a second nationality without informing the Chinese authorities. But in recent years, driven partly by an anti-corruption campaign, there have been greater official efforts to crack down on dual nationals.
Official advice from the UK’ s Foreign Office says: “ If you are British and Chinese, you are likely to be regarded by the Chinese authorities as a Chinese citizen, even if you travel to China on a British passport. If you enter China on a Chinese passport, we may not be able to help you if you have a problem. ”
Along with the US, Japan also began evacuating citizens out of the region on Wednesday.
Meanwhile, British Airways has suspended all flights to and from mainland China. Some other commercial airlines are still operating out of airports in the country, but with Hubei province in lockdown, people in that area have no option for leaving other than evacuation flights.
UK officials have confirmed that evacuated Britons will be placed in quarantine for 14 days upon their return. | general |
Is The Virus-Induced Oil Price Slide Finally Over? | Oil prices rose slightly on Tuesday, changing course after a brutal few days in the wake of the deadly Coronavirus that has threatened the markets the world over. Oil prices slid for five straight days, with WTI falling $ 5 per barrel from $ 58.58 a week ago Monday, to $ 53.14 yesterday. But the US benchmark price inched up slightly on Tuesday, to $ 53.40, suggesting that the worst of the market selloff courtesy of the Coronavirus could possibly be behind us. Brent prices fell nearly $ 7 per barrel, from $ 65.20 a week ago Monday, to $ 58.58 yesterday. While oil prices appear to have stopped falling, the virus is still on a tear, reaching more than 10 countries with over 100 lives lost, nearly 5,000 infected, and travel severely restricted in and out of certain regions in China & mdash; a fact which has sparked fear that oil demand could be dented as a result of the subdued economic activity and plethora of canceled flights. And on Tuesday, the CDC announced that in conjunction with the US State Department, that travelers avoid & ldquo; unnecessary travel to China. & rdquo; Oil demand concerns were already at the forefront of the oil market for most of last year, and this new hitch has been more than major outages in Libya could offset. Until now, demand for jet fuel in China has remained healthy. Some oil stocks had also stopped this week & rsquo; s brutal slide on Tuesday, with ConocoPhillips, Phillips 66, EOG Resources, Exxon, Total, Chevron, and Occidental all clawing back some of their previous losses. BP, Shell, and Hess, however, were still trading down on the day as of Tuesday afternoon. In a press conference on Tuesday, the CDC & rsquo; s Health Secretary Alex Azar warned Americans that & ldquo; This is a very fast moving, constantly changing situation, & rdquo; adding that & ldquo; part of the risk we face right now is that we don & rsquo; t know everything we need to know about this virus. & rdquo; By Julianne Geiger for Oilprice.com | business |
Illumina: Prepared Remarks ( opens in new window) | ILMN Q4 and FY19 Earnings Call
Prepared Remarks - 29 January 2020
Jacquie Ross, VP of IR and CSR:
Good afternoon everyone, and welcome to our earnings call for the 2019 fourth quarter and full year.
During the call today, we will review the financial results released after the close of the market, and offer commentary on our commercial activity, after which we will host a question and answer session. If you have not had a chance to review the earnings release, it can be found in the Investor Relations section of our website at illumina.com.
Participating for Illumina today will be Francis deSouza, President and Chief Executive Officer, and Sam Samad, Chief Financial Officer. Francis will provide a brief update on the state of our business and Sam will review our financial results.
This call is being recorded and the audio portion will be archived in the Investor section of our website. It is our intent that all forward-looking statements regarding our financial results and commercial activity made during today's call will be protected under the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to risks and uncertainties. Actual events or results may differ materially from those projected or discussed. All forward-looking statements are based upon current available information, and Illumina assumes no obligation to update these statements.
To better understand the risks and uncertainties that could cause actual results to differ, we refer you to the documents that Illumina files with the Securities and Exchange Commission, including Illumina's most recent forms 10-Q and 10-K.
With that, I will now turn the call over to Francis.
Francis deSouza, President and CEO:
Thank you, Jacquie. Good afternoon everyone.
Illumina had a solid end to 2019, with fourth quarter revenue of $ 953 million, up 10% from the fourth quarter of 2018. Highlights included 22% year-over-year sequencing consumable growth, and stronger than expected IVD partnership and non-DTC array revenue. This more than offset softer sequencing system revenue, and weaker than expected DTC revenue. While some variation of mix should always be expected in our dynamic industry, we are pleased to have delivered higher than expected revenue in the fourth quarter.
For 2019, we delivered revenue of $ 3.5 billion, up 6% and in line with the guidance we set in July of last year. We shipped more than 2,400 sequencing systems - the most in Illumina's history. We achieved our 2019 NovaSeq goal with approximately 320 shipments, slightly higher than 2018. Total sequencing consumable revenue grew 14%, and surpassed $ 2 billion for the first time, including more than $ 1 billion of high-throughput sequencing consumables. And total data generated by Illumina sequencers increased 50%, highlighting the rapidly growing demand for genomic information.
Back to the fourth quarter, NovaSeq consumable pull-through was at its highest level of the year and - indeed - the highest since the platform was launched, driven in part by the UK Biobank which is now operating at scale. We shipped more than 100 NovaSeq systems in the fourth quarter. As we expected, this was more than twice the number we shipped in the first quarter of 2019.
NovaSeq pull through per system for 2019 was approximately $ 1.2 million, and looking forward, we are targeting a pull- through range of $ 1.1 to $ 1.2 million per NovaSeq system in 2020.
As we enter NovaSeq's fourth year, HiSeq consumables continue to decline as expected, and were below $ 100 million in the fourth quarter for the first time since the NovaSeq launch. At the end of the year, we completed a review of our HiSeq customer list, indicating an active HiSeq installed base of approximately 1,300. This review identified approximately 600 currently inactive HiSeq systems that had previously been included in our installed base. Outside of this review, there were approximately 200 decommissions reported to Illumina in 2019.
Moving to mid-throughput, NextSeq delivered a record number of shipments in 2019, and now has a global installed base of about 3,600. Fourth quarter NextSeq shipments were lower than expected due to customer timing. Demand for NextSeqDx continues to grow, and represented almost a quarter of 2019 shipments, up from approximately 10% last year.
It was a record quarter for NextSeq sequencing consumable revenue, driven once again by oncology and NIPT. NextSeq pull-through per system improved from last quarter and was at the lower end of the $ 130,000 to $ 160,000 target range. With the launch of our new NextSeq 1000 and NextSeq 2000 systems, we will update our target pull-through range when we have a sizeable installed base of the new systems.
We expect to ship approximately 500 NextSeq 1000s and 2000s this year. While most NextSeq 550 prospects will transition to the new systems, we expect the NextSeqDx pipeline to remain strong, given the unique positioning of our regulatory approved system. We are looking forward to shipping the first NextSeq 2000s later this quarter, and are very pleased to announce that we have already received our first orders.
Moving to low throughput, system revenue was below our expectations in the fourth quarter, primarily due to MiniSeq. Demand for MiSeqDx continues to exceed our expectations, with particular strength in China where the system was cleared by the China NMPA in August of 2018. Earlier this month, the MiSeqDx was approved by the PMDA in Japan, which we expect to contribute to placements in 2020.
Turning to low throughput consumables, it was a record revenue quarter. MiSeq consumable pull through grew closer to our target range of $ 40,000 to $ 45,000, and MiniSeq pull through was at the low end of the $ 20,000 to $ 25,000 range.
Back to sequencing consumables, total revenue of $ 2.1 billion grew 14% - or over $ 250 million - in 2019.
Just over 40% of our sequencing consumable shipments were for clinical, which includes testing for oncology, reproductive health, and genetic disease and other. In total, clinical sequencing consumables grew about 20% - or approximately $ 130 million - in 2019, to approximately $ 830 million.
Oncology continues to represent about 20% of total sequencing consumables, and grew faster than total clinical consumables in 2019 due to increased adoption of panels, including Comprehensive Genomic Profiling. As more tests like FoundationOne CDx and Guardant360 receive coverage as companion diagnostics, demand for Illumina sequencing continues to grow. Additionally, clinical trials, like Guardant's LUNAR, drive increased sequencing consumable utilization in oncology testing.
Reproductive health once again represented a little more than 10% of sequencing consumables, primarily reflecting continued growth in NIPT due to broader coverage in EMEA where our VeriSeq NIPT solution had 80% sample volume growth, and growing adoption in China. Reproductive health continues to grow in the U.S., at a more modest rate compared to EMEA and China.
Finally within clinical, almost 10% of our sequencing consumable revenue is related to genetic disease testing, which grew slightly below the clinical average. Growth is driven by companies like Centogene, which has built a genomic repository of over 450,000 patients from over 125 countries, and is working to help diagnose patients ' genetic disease and collaborating with pharma partners to find cures. It also includes a portion of revenue from genetic testing companies like Ambry who offer tests tailored toward genetic disease diagnosis, among other clinical tests.
Turning to research and applied, shipments of over $ 1.2 billion represented just under 60% of our sequencing consumable shipments. As a group, research grew over 10% in 2019 driven by genetic disease and cancer.
Genetic disease research includes population genomics initiatives such as the UK Biobank and the Million Veteran Program. Cancer research was also a strong contributor to growth, and includes projects like the cloud initiative at St. Jude Children's Research Hospital. The St Jude team is building a database to access the whole genomes of 10,000 pediatric patients and survivors, helping researchers to gain valuable insights into the genetic causes of pediatric cancer.
Other research categories include Cell and Molecular Biology Research, Microbiology, and Infectious Disease Testing. This includes projects like J-GRID - the Japan Initiative for Global Research Network on Infectious Disease, which is a collaboration between 9 countries in Asia and Africa, and utilizes Illumina sequencing to research microbial diseases.
Moving to sequencing services and other, revenue of $ 124 million was up 19% from the same quarter a year ago, largely driven by up-front revenue from the Roche deal, partially offset by GeL which declined, as expected, to almost zero in the fourth quarter of 2019 ahead of the clinical ramp-up later this year.
And finally: Arrays delivered revenue of $ 116 million, down 12% from the same quarter in 2018 due to continued headwinds from our direct to consumer customers, offset in part by array growth in genetic disease research.
Before I hand the call over to Sam, I 'd like to comment on the novel coronavirus outbreak. Our immediate focus has been our colleagues in China, and our thoughts are with the families and communities impacted.
Over the last few weeks, Illumina has been engaged in a number of ways to help manage the coronavirus outbreak. Scientists have already used Illumina sequencers to identify and publish the genomic profile of the coronavirus into the public databases which is a critical first step to enable the development of diagnostic tests and - ultimately - potential vaccines. Our team is actively working with Chinese CDC labs to prepare Coronavirus NGS Testing Protocols and provide the necessary training. We are also working with our supply chain team to ensure that systems and consumables are delivered to labs working with novel coronavirus as quickly as possible. We plan to share these NGS testing protocols with customers to support the global infectious disease community as it mobilizes to address this threat. Further, we are exploring philanthropic programs and collaborations to ensure novel coronavirus sequencing is available by providing sequencing and consumables to those who need it to fight this epidemic.
With that, I 'll hand it over to Sam.
Sam Samad, SVP and CFO:
Thanks, Francis.
As discussed, fourth quarter revenue grew 10% year-over-year to $ 953 million, driven by 14% growth in sequencing offset by a 12% decline in microarrays.
Total sequencing revenue of $ 837 million grew 14% from the fourth quarter of 2018, and represented 88% of total revenue compared to 85% in the same quarter last year. Sequencing consumable revenue of $ 572 million grew 22% - or over $ 100 million - compared to the fourth quarter of 2018, while sequencing system revenue was down slightly sequentially and down 12% compared to last year.
With regards to sequencing systems, we are reviewing installed base counts to proactively identify the active systems.
We have completed the work for HiSeq, and are now reviewing NextSeq, MiSeq and MiniSeq. We will revise those installed bases in the next quarter or two as we complete the analysis. Importantly, this does not change the reported revenue in any way. However, we do expect system counts to decrease, while the pull through per system will therefore increase.
Sequencing service and other revenue of $ 124 million was down $ 14 million sequentially due to lower IVD licensing and milestone revenue and lower GeL volumes in the fourth quarter, but up 19% year over year. Fourth quarter results included an upfront payment associated with the recently announced Roche partnership.
Arrays represented 12% of total revenue in the fourth quarter, compared to 15% in the fourth quarter or 2018, and to 16% in the fourth quarter of 2017. Array systems were up $ 2 million sequentially, but down $ 5 million from a particularly strong fourth quarter of 2018. Array consumables grew $ 18 million sequentially due to DTC seasonality with one customer ramping ahead of the holiday season, but were modestly down from the same quarter last year. Array services were down $ 6 million sequentially and down $ 8 million, or 32%, year over year due to lower demand from our DTC customer.
Moving to regional results, Americas revenue grew 5% versus the prior-year quarter with growth in sequencing consumables and IVD partnership revenue, partially offset by DTC headwinds.
EMEA delivered a record revenue quarter with 19% growth from the prior-year quarter, including a strong contribution from the UK Bio Bank which is now sequencing in full production mode.
Greater China grew 21% from prior year quarter, with an easy year over year comp associated with tariff-related stocking in China in the fourth quarter of 2018. The region grew 2% in 2019, with slower research offsetting very strong growth in clinical.
Finally, APJ revenue of $ 73 million was up 4% from the fourth quarter of 2018, driven by genetic disease research and microbiology driving sequencing consumable growth both sequentially and year over year. For the full year, the region grew 6%.
Moving to gross margin and operating expenses, I will highlight non-GAAP results that include stock-based compensation. I encourage you to review the GAAP reconciliation of these non-GAAP measures which can be found in today's release and the supplementary data available on our website. Please note that all subsequent references to net income and earnings per share refer to the results attributable to Illumina shareholders.
Non-GAAP gross margin of 70.2% was roughly in line with expectations and decreased approximately 230 basis points compared to the third quarter, with lower IVD licensing and development revenue, in addition to variances in production and lab service absorption partially offset by product mix. Year-over-year, fourth quarter non-GAAP gross
margin increased over 100 basis points primarily due to product mix and higher IVD licensing and development revenue partially offset by lower DTC service volumes.
Non-GAAP operating expenses of $ 372 million were up $ 42 million from the third quarter of 2019, largely reflecting the timing of OpEx spend weighted toward the end of the year and were better than expected. Non-GAAP operating margin was therefore 31.0%, down from 36.1% last quarter.
The Non-GAAP tax rate of 18.5% was up from last quarter and higher than expected due to income mix in various tax jurisdictions.
For the fourth quarter of 2019, GAAP net income was $ 239 million, or $ 1.61 per diluted share, and non-GAAP net income was $ 252 million, or $ 1.70 per diluted share.
Moving to cash flow and balance sheet items:
Moving to guidance, we expect full year 2020 revenue to grow in the range of 9 to 11% or 3.86 to 3.93 billion dollars representing an increase of approximately $ 354 million at the midpoint.
Given the new system launch, and ongoing weakness in DTC, we are expecting revenue linearity to be similar to 2017, which suggests just below 22% of revenue in Q1, approximately 24% in Q2, approximately 26% in Q3, and approximately 28% in Q4.
For the full year 2020 and at the midpoint of our revenue guidance range:
We expect full year non-GAAP gross margin to be roughly in line with 2019.
We expect operating margin to be approximately 30%; and we expect the 2020 tax rate to be higher than full year 2019 due to a number of one-time discrete tax benefits in 2019 that are not expected to repeat in 2020.
We therefore expect GAAP earnings per share in the range of $ 6.45 to $ 6.65, and non-GAAP earnings per share in the range of $ 6.80 to $ 7.00. And we expect diluted shares outstanding in 2020 to be about flat compared to Q4 2019.
Note that, following the termination of the Pacific BioSciences merger agreement earlier this month, Illumina paid a $ 98 million reverse termination fee to PacBio. Additionally, Illumina will pay $ 34 million in continuation advances that may be repayable to Illumina if PacBio enters a change of control agreement or raises at least $ 100 million within a given timeframe. The impact of these payments is not reflected in our EPS guidance, pending the valuation of these amounts this quarter.
Moving to the first quarter of 2020:
With that, I 'll hand the call back over to Francis.
Francis deSouza, President and CEO:
Thank you, Sam. We're off to a strong start in 2020.
The UK Biobank is sequencing at scale, and we are contracted with GEL to provide sequencing services starting in the middle of the year, significantly strengthening our popgen visibility relative to where we were a year ago.
We launched our most innovative system to date with the NextSeq 1000 and 2000. The system offers the highest cluster density flow cell of any NGS system, driving down the cost per gigabase for mid-throughput users. And we succeeded in our ambitious target to fully integrate the hardware-accelerated, best-in-class pipeline that we acquired with Edico just 18 months ago.
We're excited about our TruSight Software Suite, a potentially transformative solution that simplifies genetic disease diagnoses and reduces barriers to adoption. I look forward to sharing updates on it after launch.
We continue to extend our clinical portfolio, and both TSO 500 and TruSight NIPT are progressing through regulatory.
And we are expanding our capabilities through partnerships with the world's leading clinical companies, including Qiagen, Roche and Adaptive, to deliver the most compelling IVD menu available on our clinical-grade sequencing systems.
As our customers discover more biological insights by sequencing at greater depths and volumes across new and emerging applications, the growing clinical utility of genomic information is becoming increasingly clear. This, coupled with growing community awareness and physician adoption, will enable more patients to benefit from the promise of genomics.
With that, I 'll invite the Operator to start the Q & A.
ILMN Q4 and FY19 Earnings Call
Prepared Remarks - 29 January 2020
Jacquie Ross, VP of IR and CSR:
Good afternoon everyone, and welcome to our earnings call for the 2019 fourth quarter and full year.
During the call today, we will review the financial results released after the close of the market, and offer commentary on our commercial activity, after which we will host a question and answer session. If you have not had a chance to review the earnings release, it can be found in the Investor Relations section of our website at illumina.com.
Participating for Illumina today will be Francis deSouza, President and Chief Executive Officer, and Sam Samad, Chief Financial Officer. Francis will provide a brief update on the state of our business and Sam will review our financial results.
This call is being recorded and the audio portion will be archived in the Investor section of our website. It is our intent that all forward-looking statements regarding our financial results and commercial activity made during today's call will be protected under the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to risks and uncertainties. Actual events or results may differ materially from those projected or discussed. All forward-looking statements are based upon current available information, and Illumina assumes no obligation to update these statements.
To better understand the risks and uncertainties that could cause actual results to differ, we refer you to the documents that Illumina files with the Securities and Exchange Commission, including Illumina's most recent forms 10-Q and 10-K.
With that, I will now turn the call over to Francis.
Francis deSouza, President and CEO:
Thank you, Jacquie. Good afternoon everyone.
Illumina had a solid end to 2019, with fourth quarter revenue of $ 953 million, up 10% from the fourth quarter of 2018. Highlights included 22% year-over-year sequencing consumable growth, and stronger than expected IVD partnership and non-DTC array revenue. This more than offset softer sequencing system revenue, and weaker than expected DTC revenue. While some variation of mix should always be expected in our dynamic industry, we are pleased to have delivered higher than expected revenue in the fourth quarter.
For 2019, we delivered revenue of $ 3.5 billion, up 6% and in line with the guidance we set in July of last year. We shipped more than 2,400 sequencing systems - the most in Illumina's history. We achieved our 2019 NovaSeq goal with approximately 320 shipments, slightly higher than 2018. Total sequencing consumable revenue grew 14%, and surpassed $ 2 billion for the first time, including more than $ 1 billion of high-throughput sequencing consumables. And total data generated by Illumina sequencers increased 50%, highlighting the rapidly growing demand for genomic information.
Back to the fourth quarter, NovaSeq consumable pull-through was at its highest level of the year and - indeed - the highest since the platform was launched, driven in part by the UK Biobank which is now operating at scale. We shipped more than 100 NovaSeq systems in the fourth quarter. As we expected, this was more than twice the number we shipped in the first quarter of 2019.
NovaSeq pull through per system for 2019 was approximately $ 1.2 million, and looking forward, we are targeting a pull- through range of $ 1.1 to $ 1.2 million per NovaSeq system in 2020.
As we enter NovaSeq's fourth year, HiSeq consumables continue to decline as expected, and were below $ 100 million in the fourth quarter for the first time since the NovaSeq launch. At the end of the year, we completed a review of our HiSeq customer list, indicating an active HiSeq installed base of approximately 1,300. This review identified approximately 600 currently inactive HiSeq systems that had previously been included in our installed base. Outside of this review, there were approximately 200 decommissions reported to Illumina in 2019.
Moving to mid-throughput, NextSeq delivered a record number of shipments in 2019, and now has a global installed base of about 3,600. Fourth quarter NextSeq shipments were lower than expected due to customer timing. Demand for NextSeqDx continues to grow, and represented almost a quarter of 2019 shipments, up from approximately 10% last year.
It was a record quarter for NextSeq sequencing consumable revenue, driven once again by oncology and NIPT. NextSeq pull-through per system improved from last quarter and was at the lower end of the $ 130,000 to $ 160,000 target range. With the launch of our new NextSeq 1000 and NextSeq 2000 systems, we will update our target pull-through range when we have a sizeable installed base of the new systems.
We expect to ship approximately 500 NextSeq 1000s and 2000s this year. While most NextSeq 550 prospects will transition to the new systems, we expect the NextSeqDx pipeline to remain strong, given the unique positioning of our regulatory approved system. We are looking forward to shipping the first NextSeq 2000s later this quarter, and are very pleased to announce that we have already received our first orders.
Moving to low throughput, system revenue was below our expectations in the fourth quarter, primarily due to MiniSeq. Demand for MiSeqDx continues to exceed our expectations, with particular strength in China where the system was cleared by the China NMPA in August of 2018. Earlier this month, the MiSeqDx was approved by the PMDA in Japan, which we expect to contribute to placements in 2020.
Turning to low throughput consumables, it was a record revenue quarter. MiSeq consumable pull through grew closer to our target range of $ 40,000 to $ 45,000, and MiniSeq pull through was at the low end of the $ 20,000 to $ 25,000 range.
Back to sequencing consumables, total revenue of $ 2.1 billion grew 14% - or over $ 250 million - in 2019.
Just over 40% of our sequencing consumable shipments were for clinical, which includes testing for oncology, reproductive health, and genetic disease and other. In total, clinical sequencing consumables grew about 20% - or approximately $ 130 million - in 2019, to approximately $ 830 million.
Oncology continues to represent about 20% of total sequencing consumables, and grew faster than total clinical consumables in 2019 due to increased adoption of panels, including Comprehensive Genomic Profiling. As more tests like FoundationOne CDx and Guardant360 receive coverage as companion diagnostics, demand for Illumina sequencing continues to grow. Additionally, clinical trials, like Guardant's LUNAR, drive increased sequencing consumable utilization in oncology testing.
Reproductive health once again represented a little more than 10% of sequencing consumables, primarily reflecting continued growth in NIPT due to broader coverage in EMEA where our VeriSeq NIPT solution had 80% sample volume growth, and growing adoption in China. Reproductive health continues to grow in the U.S., at a more modest rate compared to EMEA and China.
Finally within clinical, almost 10% of our sequencing consumable revenue is related to genetic disease testing, which grew slightly below the clinical average. Growth is driven by companies like Centogene, which has built a genomic repository of over 450,000 patients from over 125 countries, and is working to help diagnose patients ' genetic disease and collaborating with pharma partners to find cures. It also includes a portion of revenue from genetic testing companies like Ambry who offer tests tailored toward genetic disease diagnosis, among other clinical tests.
Turning to research and applied, shipments of over $ 1.2 billion represented just under 60% of our sequencing consumable shipments. As a group, research grew over 10% in 2019 driven by genetic disease and cancer.
Genetic disease research includes population genomics initiatives such as the UK Biobank and the Million Veteran Program. Cancer research was also a strong contributor to growth, and includes projects like the cloud initiative at St. Jude Children's Research Hospital. The St Jude team is building a database to access the whole genomes of 10,000 pediatric patients and survivors, helping researchers to gain valuable insights into the genetic causes of pediatric cancer.
Other research categories include Cell and Molecular Biology Research, Microbiology, and Infectious Disease Testing. This includes projects like J-GRID - the Japan Initiative for Global Research Network on Infectious Disease, which is a collaboration between 9 countries in Asia and Africa, and utilizes Illumina sequencing to research microbial diseases.
Moving to sequencing services and other, revenue of $ 124 million was up 19% from the same quarter a year ago, largely driven by up-front revenue from the Roche deal, partially offset by GeL which declined, as expected, to almost zero in the fourth quarter of 2019 ahead of the clinical ramp-up later this year.
And finally: Arrays delivered revenue of $ 116 million, down 12% from the same quarter in 2018 due to continued headwinds from our direct to consumer customers, offset in part by array growth in genetic disease research.
Before I hand the call over to Sam, I 'd like to comment on the novel coronavirus outbreak. Our immediate focus has been our colleagues in China, and our thoughts are with the families and communities impacted.
Over the last few weeks, Illumina has been engaged in a number of ways to help manage the coronavirus outbreak. Scientists have already used Illumina sequencers to identify and publish the genomic profile of the coronavirus into the public databases which is a critical first step to enable the development of diagnostic tests and - ultimately - potential vaccines. Our team is actively working with Chinese CDC labs to prepare Coronavirus NGS Testing Protocols and provide the necessary training. We are also working with our supply chain team to ensure that systems and consumables are delivered to labs working with novel coronavirus as quickly as possible. We plan to share these NGS testing protocols with customers to support the global infectious disease community as it mobilizes to address this threat. Further, we are exploring philanthropic programs and collaborations to ensure novel coronavirus sequencing is available by providing sequencing and consumables to those who need it to fight this epidemic.
With that, I 'll hand it over to Sam.
Sam Samad, SVP and CFO:
Thanks, Francis.
As discussed, fourth quarter revenue grew 10% year-over-year to $ 953 million, driven by 14% growth in sequencing offset by a 12% decline in microarrays.
Total sequencing revenue of $ 837 million grew 14% from the fourth quarter of 2018, and represented 88% of total revenue compared to 85% in the same quarter last year. Sequencing consumable revenue of $ 572 million grew 22% - or over $ 100 million - compared to the fourth quarter of 2018, while sequencing system revenue was down slightly sequentially and down 12% compared to last year.
With regards to sequencing systems, we are reviewing installed base counts to proactively identify the active systems.
We have completed the work for HiSeq, and are now reviewing NextSeq, MiSeq and MiniSeq. We will revise those installed bases in the next quarter or two as we complete the analysis. Importantly, this does not change the reported revenue in any way. However, we do expect system counts to decrease, while the pull through per system will therefore increase.
Sequencing service and other revenue of $ 124 million was down $ 14 million sequentially due to lower IVD licensing and milestone revenue and lower GeL volumes in the fourth quarter, but up 19% year over year. Fourth quarter results included an upfront payment associated with the recently announced Roche partnership.
Arrays represented 12% of total revenue in the fourth quarter, compared to 15% in the fourth quarter or 2018, and to 16% in the fourth quarter of 2017. Array systems were up $ 2 million sequentially, but down $ 5 million from a particularly strong fourth quarter of 2018. Array consumables grew $ 18 million sequentially due to DTC seasonality with one customer ramping ahead of the holiday season, but were modestly down from the same quarter last year. Array services were down $ 6 million sequentially and down $ 8 million, or 32%, year over year due to lower demand from our DTC customer.
Moving to regional results, Americas revenue grew 5% versus the prior-year quarter with growth in sequencing consumables and IVD partnership revenue, partially offset by DTC headwinds.
EMEA delivered a record revenue quarter with 19% growth from the prior-year quarter, including a strong contribution from the UK Bio Bank which is now sequencing in full production mode.
Greater China grew 21% from prior year quarter, with an easy year over year comp associated with tariff-related stocking in China in the fourth quarter of 2018. The region grew 2% in 2019, with slower research offsetting very strong growth in clinical.
Finally, APJ revenue of $ 73 million was up 4% from the fourth quarter of 2018, driven by genetic disease research and microbiology driving sequencing consumable growth both sequentially and year over year. For the full year, the region grew 6%.
Moving to gross margin and operating expenses, I will highlight non-GAAP results that include stock-based compensation. I encourage you to review the GAAP reconciliation of these non-GAAP measures which can be found in today's release and the supplementary data available on our website. Please note that all subsequent references to net income and earnings per share refer to the results attributable to Illumina shareholders.
Non-GAAP gross margin of 70.2% was roughly in line with expectations and decreased approximately 230 basis points compared to the third quarter, with lower IVD licensing and development revenue, in addition to variances in production and lab service absorption partially offset by product mix. Year-over-year, fourth quarter non-GAAP gross
margin increased over 100 basis points primarily due to product mix and higher IVD licensing and development revenue partially offset by lower DTC service volumes.
Non-GAAP operating expenses of $ 372 million were up $ 42 million from the third quarter of 2019, largely reflecting the timing of OpEx spend weighted toward the end of the year and were better than expected. Non-GAAP operating margin was therefore 31.0%, down from 36.1% last quarter.
The Non-GAAP tax rate of 18.5% was up from last quarter and higher than expected due to income mix in various tax jurisdictions.
For the fourth quarter of 2019, GAAP net income was $ 239 million, or $ 1.61 per diluted share, and non-GAAP net income was $ 252 million, or $ 1.70 per diluted share.
Moving to cash flow and balance sheet items:
Moving to guidance, we expect full year 2020 revenue to grow in the range of 9 to 11% or 3.86 to 3.93 billion dollars representing an increase of approximately $ 354 million at the midpoint.
Given the new system launch, and ongoing weakness in DTC, we are expecting revenue linearity to be similar to 2017, which suggests just below 22% of revenue in Q1, approximately 24% in Q2, approximately 26% in Q3, and approximately 28% in Q4.
For the full year 2020 and at the midpoint of our revenue guidance range:
We expect full year non-GAAP gross margin to be roughly in line with 2019.
We expect operating margin to be approximately 30%; and we expect the 2020 tax rate to be higher than full year 2019 due to a number of one-time discrete tax benefits in 2019 that are not expected to repeat in 2020.
We therefore expect GAAP earnings per share in the range of $ 6.45 to $ 6.65, and non-GAAP earnings per share in the range of $ 6.80 to $ 7.00. And we expect diluted shares outstanding in 2020 to be about flat compared to Q4 2019.
Note that, following the termination of the Pacific BioSciences merger agreement earlier this month, Illumina paid a $ 98 million reverse termination fee to PacBio. Additionally, Illumina will pay $ 34 million in continuation advances that may be repayable to Illumina if PacBio enters a change of control agreement or raises at least $ 100 million within a given timeframe. The impact of these payments is not reflected in our EPS guidance, pending the valuation of these amounts this quarter.
Moving to the first quarter of 2020:
With that, I 'll hand the call back over to Francis.
Francis deSouza, President and CEO:
Thank you, Sam. We're off to a strong start in 2020.
The UK Biobank is sequencing at scale, and we are contracted with GEL to provide sequencing services starting in the middle of the year, significantly strengthening our popgen visibility relative to where we were a year ago.
We launched our most innovative system to date with the NextSeq 1000 and 2000. The system offers the highest cluster density flow cell of any NGS system, driving down the cost per gigabase for mid-throughput users. And we succeeded in our ambitious target to fully integrate the hardware-accelerated, best-in-class pipeline that we acquired with Edico just 18 months ago.
We're excited about our TruSight Software Suite, a potentially transformative solution that simplifies genetic disease diagnoses and reduces barriers to adoption. I look forward to sharing updates on it after launch.
We continue to extend our clinical portfolio, and both TSO 500 and TruSight NIPT are progressing through regulatory.
And we are expanding our capabilities through partnerships with the world's leading clinical companies, including Qiagen, Roche and Adaptive, to deliver the most compelling IVD menu available on our clinical-grade sequencing systems.
As our customers discover more biological insights by sequencing at greater depths and volumes across new and emerging applications, the growing clinical utility of genomic information is becoming increasingly clear. This, coupled with growing community awareness and physician adoption, will enable more patients to benefit from the promise of genomics.
With that, I 'll invite the Operator to start the Q & A.
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Illumina Inc. published this content on 29 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 January 2020 23:14:06 UTC | business |
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