Boeing is close to a deal to supply more 787 Dreamliners to Japan’s ANA Holdings in what would be the planemaker’s first commercial order announcement so far this year. The deal is a boost for the planemaker after it posted no January orders for the first time in decades.
The Dow sank more than 1,000 points Monday as the spread of the coronavirus threatened wider damage to the global economy. The drop was the worst for the index in two years and wiped out its gains so far in 2020. The price of oil fell sharply on expectations that demand for energy would tumble. The Dow lost 1,031 points, or 3.6%, to 27,960.
Global markets have tanked Monday as the number of coronavirus cases outside China surged, stoking fears of a prolonged global economic slowdown. South Korea’s Kospi index closed down 3.9% while Italy’s FTSE MIB plunged nearly 6%. The Dow Jones Industrial Average futures is indicating a drop of nearly 900 points at the open. Meanwhile, Gold prices continue an upwards trend rising nearly 2%.
Warren Buffett says the viral outbreak in China has slowed economic growth, but said that it was no time to sell stocks despite the threat of a pandemic. ’This is scary stuff. I don’t think it should affect what you do in stocks,’ Buffett said, adding that the long-term investors should not get caught up in daily headlines.
US Treasury Secretary Steven Mnuchin said he does not expect the coronavirus outbreak to have a material impact on the Phase 1 US-China trade deal. However, he added that it was too soon to determine the extent of the impact.’I don’t expect that this will have any ramifications on ’phase one,’ Mnuchin said. ’Obviously that could change as the situation develops,’ he added.
Primark owner AB Foods has warned that there is a risk of supply shortages on some of the retailer’s lines later in the year if factory delays in China caused by the coronavirus outbreak are prolonged. AB Foods, which sources more than 40% of Primark’s product from China, said it typically builds inventories in advance of Chinese New Year, meaning it is well stocked for several months.
Hedge fund Third Point called on the British insurer Prudential to split into two companies, and end its 172-year presence in the UK. Third Point has amassed a more than $2 billion stake in Prudential. Third Point’s CEO Dan Loeb wrote to the board of Prudential Monday that he wanted it to spin off its Asian business and its US arm into separate firms.
Countrywide and LSL Property Services have said they are in talks over a possible £500m merger which could create the UK’s largest estate agency. The announcement comes after a testing few years for Countrywide, which has seen its share price slump on the back of mounting losses. Countrywide owns the Hamptons and Gascoigne-Pees brands while LSL owns Your Move and Reed Rains.
Intuit Inc. is close to a $7 billion deal to acquire personal-finance portal Credit Karma Inc. and beef up its position in the consumer-finance market, the Wall Street Journal reported. The newspaper reported that the deal could be announced as soon as Monday. According to the deal, Credit Karma will function as a stand-alone business with its chief executive, Kenneth Lin, remaining in charge.
In his latest annual letter to shareholders, Warren Buffett took to reassuring investors on Berkshire Hathaway’s future leadership. Buffett, 89, plainly addressed his eventual demise and that of 96-year-old vice chairman Charlie Munger, writing that the company is ’100 percent prepared for our departure’. Additionally, he wrote that his will directs his executors not sell any Berkshire shares.
In a new campaign image, Burger King’s juicy Whopper looks completely unappetizing, with fuzzy green and white mold spreading over the meat, lettuce, and bun. The photo is meant to highlight the fact that Whoppers will decay over time, now that Burger King has removed artificial preservatives from the Whopper sandwich in over 400 restaurants in the US.
Elon Musk’s SpaceX is looking to raise about $250 million, taking the private rocket company’s valuation to about $36 billion. The company plans to raise the amount at a price of $220 per share. The funding round would come months ahead of SpaceX’s first manned mission to space under NASA’s Commercial Crew Program.
Nikola Motors unveiled a concept for a new electric pickup truck called the Badger on Monday. The automaker plans to offer the Badger as both a purely battery-electric vehicle and as an electric/fuel-cell hybrid. The company claims the hybrid powertrain model will feature a maximum range of approximately 600 miles, while the battery model will be limited to 300 miles.
New Mexico’s attorney general sued Google Thursday over allegations the tech company is illegally collecting personal data generated by children in violation of federal and state laws. The lawsuit filed in U.S District Court in Albuquerque claims Google is using its education services package that is marketed to school districts, teachers and parents as a way to spy on children and their families.
Wells Fargo & Co. will pay $3 billion to resolve criminal and civil probes into fraudulent sales practices. The bank admitted to pressuring employees in a fake-accounts scandal, U.S. officials said on Friday, wrapping up one of the last major investigations looming over the bank. They admitted that managers were aware of ’unlawful and unethical’ practices for 14 years.
Royal Mail, UK, is increasing the price of stamps because of financial worries. From 23 March, the price of a first class stamp will rise by 6p to cost 76p, while the cost of a second class stamp will increase by 4p to 65p. The postal service said the increased were necessary in order to ’maintain the quality of service’.
The impact of coronavirus outbreak on demand will cost airlines globally more than $29b— mostly in the Asia-Pacific, the International Air Transport Association estimated. IATA said that the virus has the potential for causing a 13% decline in demand for Asian carriers. Global air traffic will be reduced by 4.7% for the year, marking the first decline since the financial crisis of 2008 and 2009.