Microsoft Joins Apple, HP in Scrapping Outlooks on Virus
- In a statement Wednesday, the company said it doesn’t expect to meet earlier guidance for fiscal third-quarter revenue in the Windows personal-computer software and Surface device business because the supply chain is returning to normal at a slower pace than expected.
- For the first time, more cases were reported in countries other than China in the past 24 hours, the World Health Organization said late Wednesday, a significant development as new cases spread around the globe, with South Korea, Italy and Iran particularly hard hit.
- Microsoft will have to account for supply issues with its Surface devices and lost software sales from Windows on PCs made by other manufacturers who may be facing the same production and parts challenges in China.
- The spread of the virus outside of China also raises the chances of impact of work shutdowns, quarantines, store closures, and conference and meeting cancellations in other countries where technology and other global firms have a significant presence.
Britain sets do-or-die June deadline for tense trade talks with EU
- London | Britain has set a deadline of June to make progress in its bid for a post-Brexit trade deal with the European Union, or else potentially walk away and prepare to quit the Brexit transition period on December 31 without an agreement.
- Releasing its negotiation mandate on Thursday for the tense, high-stakes trade talks that begin next week, the British government categorically ruled out extending the Brexit transition period, and fired off a warning that the broad outline of a deal should be clear by an EU leaders' summit set for June 18-19.
- British officials also argue that because Britain is leaving the customs union and single market, it will be setting up border inspection posts regardless of whether it has a free-trade agreement (FTA) with the EU - it's just a question of what regime they'll be policing.
US stock markets drop again as Goldman Sachs projects zero growth from coronavirus
- U.S. stock markets are down again in early trading as coronavirus fears continue to hit economists forecasts for growth, and a number of technology companies began to note the impact of the outbreak in their trailing earnings and future results.
- The Dow Jones Industrial Average was down roughly 650 points and the Nasdaq was off 240 points near midday trading, each now steeply off their recent, record highs set earlier this year.
- And earlier today, Goldman Sachs released its economic forecast for the U.S. for the year, indicating that domestic companies will see zero earnings growth in 2020 thanks to the outbreak.
- While many analysts have proven loath to call bullshit on recent market levels in light of falling global macro conditions, Goldman has taken the reins.
- Turning to the more tech-heavy markets, SaaS and cloud companies are also sharply lower — again — in today’s trading.
Magellan's new listed fund structure a game changer
- This has not escaped fund managers, their service providers, and the exchange, which have spent years trying to come up with efficient ways to make this happen.
- The new single unit structure which will be tested in the coming weeks has been described as a "game-changer" by Independent Investment Research analyst Rodney Lay, who noted Magellan were one of the pioneers of active exchange traded funds.
- The single unit structure has the potential to allow investors of all sizes to access far more investments.
- The structure could also have implications for new and existing listed investment companies or LICs. Lay believes that sub-scale listed funds that are trading at discounts could come under more pressure to convert into unlisted funds and then allow access via the single unit structure.
Bitcoin Crashes Along With U.S. Stocks, Exposing 'Haven' Myth
- Bitcoin's sudden flash crash pours cold water on the narrative that it has become a reliable safe-haven asset.
- Bitcoin’s price declined sharply on Wednesday, following in the footsteps of a plunging U.S. stock market and raising red flags about its safe-haven status.
- The cryptocurrency topped $10,500 during the high point of its rally earlier this month.
- At current values, bitcoin has a market capitalization of $160.1 billion, the lowest in a month.
- Precious metals have benefited from the coronavirus-fueled selloff, with gold setting fresh seven-year highs.
- To be fair, bitcoin and gold have shown stronger correlation in recent months, especially as tensions in the Middle East escalated and the health of global economies looked to be in jeopardy.
- Still, bitcoin’s failure to attract bids during one of the most volatile periods in years pours cold water on claims of it being a reliable safe-haven asset.
Donald Trump Will Rescue the Stock Market Just in Time for His Re-Election Campaign
- Eight months away from the presidential elections, Donald Trump issued a dire warning that the stock market “will crash like nobody has seen before” should voters choose to kick him out of the White House.
- It appears that voters don’t have to wait for the presidential elections to witness the stock market cratering.
- Trump can take advantage of the current stock market selloff to get further rate reductions from the Federal Reserve.
- The rate cuts can resuscitate a crashing stock market before the presidential elections.
- He believes that the rate cut will boost the economy and the stock market right in time for the election.
- While I’m not sure that Trump is really behind the selloff, he can definitely use the stock market crash as an opportunity to boost his candidacy.
- The opinions expressed in this article do not necessarily reflect the views of CCN.com.
New Disney CEO says company will continue to follow path Bob Iger laid
- New Disney CEO Bob Chapek told CNBC on Tuesday he will continue to steer the company down the path laid by its former leader, Bob Iger.
- Iger stepped down as Disney CEO on Tuesday, a surprise move as he had previously said he planned to retire in 2021.
- Iger has helped guide Disney through four major acquisitions — of Pixar Animation Studios, Marvel, Lucasfilm and 20th Century Fox — and the launch of its streaming service, Disney+.
- In 2005, the year Iger became CEO, Disney reported net income of $2.5 billion.
- The company's stock rose more than 400% while Iger was at the helm, increasing from roughly $25 per share to its Tuesday close of $128.
- Chapek, who has been at the company for 27 years, was most recently in charge of the Disney's parks, experiences and products.
Stocks making the biggest moves midday: Home Depot, Moderna, Mastercard, Shake Shack and more
- Home Depot — Shares of the home improvement stock rose nearly 2% after topping fourth quarter earnings estimates thanks to strong holiday and appliance sales.The company earned $2.28 per share on revenue of $25.78 billion.
- The company is expected to report fourth-quarter results after the close, a moment of truth for investors who want to see if Virgin Galactic's business can support the stock's rally this year.
- The company reported 6 cents in adjusted earnings per share and $151 million in revenue, but Wall Street expected a 1 cent loss per share and $153 million in revenue, according to Refinitiv.
- The company reported 65 cents in adjusted earnings per share, above the 54 million expected by analysts, according to Refinitiv.
- Nvidia, Micron — Shares of the two chip stocks ticked more than 3% lower following downgrades from Wall Street firms worried about the coronavirus and its impact on global growth.
Nio, the Tesla of China, surges 35% after confirming talks for $1.4 billion in government funding
- Shares of Nio surged as much as 35% in early trading Tuesday after the company confirmed that it is in talks with the municipal government of Hefei, where its main manufacturing hub is located.
- Nio is looking to raise more than 10 billion yuan, or $1.42 billion, Reuters reported.
- The electric-vehicle company has been short on cash and struggling to raise capital amid China's slowing auto market.
- In February alone, Nio has issued $200 million of short-term convertible notes in two rounds to bring in enough cash to meet its needs.
- Nio will provide additional details in the next two months, Reuters reported.
- The company's agreement with Hefei is one of eight major deals the city has signed in efforts to control the spread of coronavirus and support economic development, CNBC reported, citing a translation of the city's government website.
Earnings season gains momentum with BMO, Scotiabank both beating expectations
- Toronto-based Scotiabank reported net income of approximately $2.3 billion for the three months ended Jan. 31, an increase in profit of four per cent year-over-year and one per cent over the previous quarter.
- When adjusted for several items, such as those related to its various acquisitions and divestitures of international businesses, Canada’s third-biggest bank reported adjusted earnings per share of $1.83 for its first quarter, up five per cent from a year ago and above the $1.75 consensus of analyst estimates.
- BMO reported net income of almost $1.6 billion for its first quarter ended Jan. 31, an increase of five per cent from a year earlier.
- BMO’s capital-markets business reported a profit of $356 million for the quarter, an increase of 39 per cent.
- Scotiabank’s provisions for credit losses for the three months were $926 million, an increase of 35 per cent from a year earlier.