Asia markets slide as concerns over coronavirus take hold - MarketWatch

BEIJING (AP) — Asian stock markets tumbled Tuesday as concern about the economic impact of a Chinese disease outbreak rose.

Japan’s central bank left its key interest rate unchanged and revised up its economic growth outlook.

Market indexes in Shanghai, Tokyo, Hong Kong and Sydney all retreated following the Chinese government’s announcement of a fourth death from coronavirus. The outbreak, centered on the city of Wuhan, has sickened more than 200 people.

Authorities said some infections were transmitted person-to-person, increasing the risk the disease might spread faster during the Lunar New Year holiday, the Chinese-speaking world’s busiest travel season. That prompted selling of shares in airlines, hotel operators and other travel-related companies.

Other Asian governments stepped up screening of travelers from China, highlighting the potential impact on tourism revenue.

The outbreak “is developing into a major potential economic risk to the Asia-Pacific region,” said Rajiv Biswas of IHS Markit in a report.

The outbreak and measures to stop it have could affect tourism, retailing, restaurants, air travel and other industries, said Biswas. He pointed to the example of the 2003 outbreak of severe acute respiratory syndrome, whose economic impact was felt as far away as Canada and Australia.

The Shanghai Composite Index SHCOMP, -1.41% fell 1% to 3,063.56 and Hong Kong’s Hang Seng index HSI, -2.81% was off 2.3% at 28,136.04. Tokyo’s Nikkei 225 NIK, -0.91%  retreated 0.9% to 23,866.15.

Seoul’s Kospi 180721, -1.01%  sank 0.8% to 2,245.29 and Sydney’s S&P-ASX 200 XJO, -0.19%  was off 0.3% at 7,055.40. India’s Sensex 1, -0.37%   opened down 0.3% at 41,400.48 Southeast Asian markets also declined.

Japan’s ANA Holdings Inc. fell 2.2%, while Hong Kong-based carrier Cathay Pacific dropped 4.8%. China Eastern Airlines lost 2.6%.

The Bank of Japan left its policy rate at -0.1% and reaffirmed its commitment to increase holdings of government bonds. Board members raised their projection of economic growth in the year that starts in April to 0.9% from 0.7%.

The European central bank also is due to make an interest rate decision this week.

Benchmark U.S. oil fell 17 cents to $58.41 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 5 cents on Monday to close at $58.58. Brent crude, used to price international oils, lost 35 cents to $64.85 per barrel in London. It advanced 35 cents the previous session to $65.20.

The dollar declined to 109.98 yen from Monday’s 110.18 yen. The euro gained to $1.1100 from $1.1094.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMifWh0dHBzOi8vd3d3Lm1hcmtldHdhdGNoLmNvbS9zdG9yeS9iYW5rLW9mLWphcGFuLWhvbGRzLWludGVyZXN0LXJhdGVzLWluLW5lZ2F0aXZlLXRlcnJpdG9yeS1hbmQtc3RvY2tzLWZhbGwtb24tbmV3cy0yMDIwLTAxLTIw0gFPaHR0cHM6Ly93d3cubWFya2V0d2F0Y2guY29tL2FtcC9zdG9yeS9ndWlkL0ZFM0I2NjFFLTNDMDAtMTFFQS1BQ0ZGLUY2NkIwM0IwODIyNw?oc=5

2020-01-21 07:16:00Z
CAIiEPjZjOAC0DSPDJaEDPMifRMqGAgEKg8IACoHCAowjujJATDXzBUwmJS0AQ

Stocks Pare Decline With U.S. Futures; Oil Climbs: Markets Wrap - Yahoo Finance

Stocks Pare Decline With U.S. Futures; Oil Climbs: Markets Wrap

(Bloomberg) -- European stocks and U.S. equity futures trimmed most of an earlier decline on Monday as investors awaited a fresh batch of corporate earnings and some key central bank meetings this week. Crude oil rose following supply disruptions in Libya and Iraq.

Activity was muted across most major markets because of a U.S. holiday. The Stoxx Europe 600 Index traded little changed after spending most of the morning in the red, as gains in automakers offset declines in retailers. Contracts on the main American equity benchmarks also pared their earlier losses. Equities advanced in most of Asia, though shares in Hong Kong and India slumped. European bonds were mixed and range-bound, while the pound slipped ahead of U.K. jobs data due tomorrow.

Brent crude jumped back above $65 a barrel as unrest hit key production regions. Iraq temporarily stopped output at an oil field on Sunday, while Libyan production almost ground to a halt after armed forces shut down a pipeline.

Jitters in the oil market have helped rein in optimism after recent bullishness, spurred by the signing of the initial Sino-American trade deal and economic indicators from China and the U.S. that provided signs the global outlook is improving. Investors now turn their attention back to corporate earnings after solid results from the biggest banks on Wall Street. Key central bank meetings in Europe and Japan are also on the agenda.

“We are entering 2020 on a more stable footing with economies globally stabilizing and looking like they’re turning up, and the phase one trade deal,” Anne Anderson, head of fixed income for Australia at UBS Asset Management, told Bloomberg TV in Sydney. “So it’s a bit more positive with regard to the economic fundamentals.”

Here are some events to watch out for this week:

Companies including Netflix, IBM, UBS, Procter & Gamble and Hyundai will post results.Policy decisions are due from central banks including Japan, Canada, Indonesia and the European Central Bank.The World Economic Forum, the annual gathering of global leaders in politics, business and culture, opens in Davos, Switzerland.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index dipped 0.1% as of 12:05 p.m. London time.The Stoxx Europe 600 Index was little changed.The MSCI Asia Pacific Index was little changed.The MSCI Emerging Market Index dipped 0.1%.

Currencies

The Bloomberg Dollar Spot Index climbed 0.1%.The euro was little changed at $1.1087.The British pound sank 0.2% to $1.2994.The onshore yuan dipped 0.1% to 6.866 per dollar.The Japanese yen was little changed at 110.19 per dollar.

Bonds

Germany’s 10-year yield gained less than one basis point to -0.21%.Britain’s 10-year yield climbed two basis points to 0.647%.Japan’s 10-year yield advanced one basis point to 0.01%.

Commodities

West Texas Intermediate crude climbed 0.5% to $58.86 a barrel.Iron ore fell 0.3% to $94.30 per metric ton.Gold gained 0.2% to $1,560.01 an ounce.

--With assistance from Cormac Mullen, Haidi Lun and Adam Haigh.

To contact the reporter on this story: Yakob Peterseil in London at ypeterseil@bloomberg.net

To contact the editor responsible for this story: Sam Potter at spotter33@bloomberg.net

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiS2h0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy9zdG9ja3MtaGVhZC1taXhlZC1vcGVuLXN0cm9uZy0yMTM3Mzk1OTIuaHRtbNIBU2h0dHBzOi8vZmluYW5jZS55YWhvby5jb20vYW1waHRtbC9uZXdzL3N0b2Nrcy1oZWFkLW1peGVkLW9wZW4tc3Ryb25nLTIxMzczOTU5Mi5odG1s?oc=5

2020-01-20 12:14:00Z
CBMiS2h0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy9zdG9ja3MtaGVhZC1taXhlZC1vcGVuLXN0cm9uZy0yMTM3Mzk1OTIuaHRtbNIBU2h0dHBzOi8vZmluYW5jZS55YWhvby5jb20vYW1waHRtbC9uZXdzL3N0b2Nrcy1oZWFkLW1peGVkLW9wZW4tc3Ryb25nLTIxMzczOTU5Mi5odG1s

A baby stroller sold at Target and Amazon was recalled because of a possible fall hazard - CNN

The company issued the recall Thursday for four models of the Tango Mini Stroller because the hinge joints can release.

If the hinge joints release, the stroller could collapse when under pressure, posing a fall hazard for a child, the recall says.

The company says anyone who has the stroller should immediately stop using it and contact Baby Trend for a full refund or replacement.

Those with stroller models Quartz Pink (Model Number ST31D09A), Sedona Gray (Model Number ST31D10A), Jet Black (Model Number ST31D11A), and Purest Blue (Model Number ST31D03A) are under recall. Model numbers are printed in black on a white sticker located on one of the stroller's legs.

The strollers were manufactured in China and sold at Target and Amazon between October and November of 2019. The product retailed for between $100 and $120.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiR2h0dHBzOi8vd3d3LmNubi5jb20vMjAyMC8wMS8yMC91cy9iYWJ5LXRyZW5kLXN0cm9sbGVyLXJlY2FsbC9pbmRleC5odG1s0gFLaHR0cHM6Ly9hbXAuY25uLmNvbS9jbm4vMjAyMC8wMS8yMC91cy9iYWJ5LXRyZW5kLXN0cm9sbGVyLXJlY2FsbC9pbmRleC5odG1s?oc=5

2020-01-20 08:56:00Z
52780561293111

Survey: Class divide causes trust gap over institutions like government and media - Axios

Illustration: Rebecca Zisser/Axios

Established institutions like the media and government are no longer seen as competent or ethical enough to address crises like climate change and health care, according to Edelman's 2020 Trust Barometer study. So businesses are leading the way.

Between the lines: The survey shows a stark class divide — a growing gap in institutional trust between wealthier, more educated and better informed people vs. the rest of the population.

For the first time, a record number of developed countries, including Australia, France, Germany and the UK, are experiencing double digit divides in trust between the informed class and the mass population.

Around the world, business is considered the most trusted institution. In the U.S., there are plenty of examples of business filling the void left by other institutions.

• BlackRock CEO Larry Fink surprised Wall Street last week when he released his annual letter to CEOs and clients announcing that it would make sustainability its new standard for investing.
• In August, 181 of the nation’s top CEOs agreed to embrace a new business model in which driving shareholder value is no longer their sole business objective. Rather, service to society, communities and employees would become a top priority.

Yes, but: Even though people around the world say they increasingly trust corporations to solve problems, they also say they don't trust capitalism.

• 57% of people globally believe that capitalism as it exists today "does more harm than good in the world." The percentage of people who think capitalism is working for them is down year over year by 3%.

Declining trust in media also contributes to the trust gap between the informed public and the public at large, according to the survey.

• 57% of people globally believe that the media they use is "contaminated with untrustworthy information." and the vast majority (76%) worry about false information or fake news being used as a weapon.

The bottom line: “We are living in a trust paradox,” said Richard Edelman, CEO of Edelman in a press release. “Fears are stifling hope, as long-held assumptions about hard work leading to upward mobility are now invalid.”

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiU2h0dHBzOi8vd3d3LmF4aW9zLmNvbS9nbG9iYWwtdHJ1c3QtY3Jpc2lzLWJmNDFlZmQzLTkzMTMtNDhkNy04NmJiLWM5MDdiNWRkMDc2My5odG1s0gFTaHR0cHM6Ly9hbXAuYXhpb3MuY29tL2dsb2JhbC10cnVzdC1jcmlzaXMtYmY0MWVmZDMtOTMxMy00OGQ3LTg2YmItYzkwN2I1ZGQwNzYzLmh0bWw?oc=5

2020-01-20 10:45:00Z
52780561512811

Don’t expect the earth from fund managers on climate change - Financial Times

More than three years ago, BlackRock, the world’s largest fund manager, published a paper promising to take more account of climate risks when investing in companies.

“Investors can no longer ignore climate change,” the 16-page report observed. “Some may question the science behind it, but all are faced with a swelling tide of climate-related regulations and technological disruption.”

Last week, under pressure to practice more vigorously what it preached, the fund manager’s chief executive announced a series of measures designed to show it was following through on its commitment.

Larry Fink said BlackRock would increase the number of sustainable funds it offers, divest its active funds of some holdings in coal-related businesses, and be more transparent about how it raised climate matters with companies it holds and voted in their general meetings.

Now it’s easy to scoff at the likely impact of these pledges. Not just the fuzzy ones to make more noise in company meetings. Take the vow on divestment for example.

The first tranche of sales last week amounted to just $500m in value. Given the $7tn the firm has under management, that’s hardly like amputating a limb, more a very light trim of the toenails. Anyway it only applies to the $2tn-odd BlackRock has under active mandates. As for the $5tn of passive money, that stays as it was before.

But is it really the job of intermediaries to drive environmental change through asset allocation? Groups like the activists Extinction Rebellion call regularly for rapid fossil-fuel divestment as if that were both deliverable and the answer.

Indeed, they flamed BlackRock last week for the inadequacy of its conversion, claiming the fund manager remained “waist deep” in these investments. Withdraw funds, claims Bill McKibben, leader of the campaign group, 350.org, and “fossil fuel companies would almost literally run out of gas”.

Some decarbonising measures are clearly unfinanceable by private capital, such as retrofitting Britain’s 27m homes with energy saving materials

Yet that is to misunderstand the role of finance in climate transition. Fund managers aren’t there to drag their investment clients out of profitable investments into ones where returns are more meagre. That would be quixotic and almost certainly unsuccessful. For as climate-concerned investors dumped fossil-fuel stocks, thus driving down their value, their socially neutral peers would simply take advantage of the mispricing that came about, meaning the net effect was blunted.

In the case of climate change, it could even be detrimental. Put Royal Dutch Shell out of business by dumping its shares, and state-run national oil companies in Asia or South America might pick up the slack, pumping out more polluting output.

Fund managers exist to channel capital to profitable activities. Which touches on a big difference between the task before us and the dawn of the fossil fuel era that led to global warming, namely the many frictional costs in bringing decarbonisation about.

There is no easy way to substitute the fossil fuels that we rely on. Take renewables for instance. While their cost may be falling, and they clearly have a part to play in the transition, they are not a panacea. They require huge amounts of land, costly transfers of energy over long distances, cause their own environmental problems, and depend on sun and wind that deliver their blessings independent of human need.

Recommended

Nor do they deliver certain systemic decarbonisation. Despite pumping nearly $600bn into renewables, and raising power costs by 50 per cent, Germany’s carbon emissions have been almost flat since 2009 — principally because it has closed nuclear stations and relies on coal for baseload.

Some decarbonising measures are clearly unfinanceable by private capital, such as retrofitting Britain’s 27m homes with energy saving materials to reduce their carbon footprint. Setting aside the impact on poorer citizens, the energy savings would take decades to recoup.

Governments may like the idea of subcontracting decarbonisation to financial markets. But in practice, it is the politicians who must take the lead. They alone can mandate the necessary regulatory changes, encourage new technologies, and establish the fiscal framework from which a new energy system can emerge.

It is only when this happens that fund managers can then play their part, vetting companies’ disclosed plans for cutting carbon dioxide emissions and steering capital away from those that fail to live within officially mandated emissions targets, thus helping their clients to avoid hidden climate liabilities. But government policy must be credible and consistent. That means the true costs must be set against benefits, and the public — gilets jaunes and all — somehow brought on side.

Decarbonisation cannot ultimately be palmed off to well-meaning investors, or altruistic businessmen. Disinvestment will not save the planet. Only a proper thought through policy can bring emissions down.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiP2h0dHBzOi8vd3d3LmZ0LmNvbS9jb250ZW50L2E4NjVmZjE4LTM5NGItMTFlYS1hNmQzLTlhMjZmOGMzY2JhNNIBAA?oc=5

2020-01-19 05:01:01Z
52780558403267

'You're stealing our water': Germans protest against Tesla gigafactory - Yahoo Finance

Demonstrators hold anti-Tesla posters during a protest against plans by U.S. electric vehicle pioneer Tesla to build its first European factory and design center near Berli

By Riham Alkousaa

BERLIN (Reuters) - Around 250 Germans on Saturday protested in the outskirts of Berlin where electric car startup Tesla is planning to build a gigafactory, saying its construction will endanger water supply and wildlife in the area.

The U.S. carmaker announced plans last November to build its first European car factory in Gruenheide, in the eastern state of Brandenburg.

Politicians, unions and industry groups have welcomed the move, saying it will bring jobs to the region, but environmental concerns drove hundreds of locals to the streets on Saturday.

"We are here, we are loud, because Tesla is stealing our water," protesters called.

Saturday's protest came after a Brandenburg water association on Thursday warned against "extensive and serious problems with the drinking water supply and wastewater disposal" for the proposed factory.

Anne Bach, a 27-year-old environmental activist, said Tesla's plans published earlier this month showed it would need more than 300 cubic meters of water per hour which would drain the area's declining reserves.

"I am not against Tesla ... But it's about the site; in a forest area that is a protected wildlife zone. Is this necessary?" Bach said.

"In such an ecological system like the one here and with the background that climate is changing, I cannot understand why another location was not selected from the beginning," said Frank Gersdorf, a member of "Citizens' Initiative Gruenheide against Gigafactory", a local group that organised Saturday's protest.

Environmentalist protests in Germany have previously halted and delayed major companies' plans such RWE's lignite mining at the Hambach forest, near Cologne, which has become a symbol of the anti-coal protests.

Saturday's protest, which Gersdorf and Bach said developed spontaneously from a 50-people forest walk demonstration, highlighted the deforestation of around 300 hectares to build the factory and its impact on wildlife, including birds, insects and bats.

People were also protesting against an expected "enormous" increase in traffic on a nearby highway and through the villages.

Next to the protest, on the other side of the street, around 20 people carried banners welcoming Tesla in their village, with children chanting, "We are here, we are loud, because Tesla is building our future."

Bernd Kutz, a Gruenheide local, said Tesla would bring improvement to the area, create jobs and give chances to young people.

"I am here because I don't understand those demonstrators who shout and show us the finger," Kutz said. "Why has it always to be negative?"

(Reporting by Riham Alkousaa; editing by Christina Fincher)

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiUmh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy95b3VyZS1zdGVhbGluZy13YXRlci1nZXJtYW5zLXByb3Rlc3QtMDQzMjU2MzcxLmh0bWzSAVpodHRwczovL2ZpbmFuY2UueWFob28uY29tL2FtcGh0bWwvbmV3cy95b3VyZS1zdGVhbGluZy13YXRlci1nZXJtYW5zLXByb3Rlc3QtMDQzMjU2MzcxLmh0bWw?oc=5

2020-01-19 04:37:04Z
52780559493731

This 7.4%-Yielding Dividend Stock Is Finally Giving Investors a Raise - Motley Fool

Crestwood Equity Partners (NYSE:CEQP) has come a long way over the past several years. And after lots of hard work, the energy company has finally reached an inflection point this year, where it's beginning to generate gobs of free cash flow. Because of that, it now has the flexibility to start returning more cash to shareholders above its current 7.4%-yielding distribution. While it's starting with a moderate 4.2% raise, that boost is likely the first of many to come.

That future dividend growth, when combined with the increasing strength of the company's financial profile, makes Crestwood an ideal investment for yield-seeking investors.  

Image source: Getty Images.

Turnarounds take time

Crestwood, like a lot of master limited partnerships (MLPs), found itself in a tight spot when the oil market began turning down in late 2014. The company had a bit too much debt, and it was distributing more cash to investors than it could afford to pay while also investing in expansion projects. Because of that, the company had to make some hard decisions, which included reducing its dividend, selling assets, and bringing on financial partners. These actions, however, helped bolster the company's financial profile, giving it the flexibility to invest in more high-return expansion projects as market conditions started improving.

That allowed the company to embark on a three-year, $1 billion expansion program, which it's about to complete. Because of that, its cash flow has been growing at a brisk pace, which should continue throughout 2020. Meanwhile, with capital spending winding down, Crestwood is on track to generate a significant amount of excess cash after funding its remaining projects as well as its current distribution level. As a result, it's in position to begin returning more money to investors, starting with the 4.2% distribution increase for 2020.

A big-time payout backed by top-notch financials

With its cash flow expected to grow sharply this year, Crestwood expects to cover its recently increased payout by about 2.0 times. That's by far the best level in its peer group, where the average is around 1.5. Meanwhile, the growth in both its earnings and excess cash will drive a notable improvement in its leverage ratio. While its debt-to-EBITDA level was a bit elevated at 4.2 times at the end of the third quarter, it's on track to fall within Crestwood's 3.5 to 4.0 target range by year-end. That would give it the second-lowest ratio in its peer group.

Thanks to those top-tier financial metrics, Crestwood's recently raised payout is on an excellent foundation. Furthermore, its strong financial profile gives it the flexibility to do other things that create value for investors. Among its options are to invest in additional high-return growth opportunities as they arise, as well as buy back common or preferred units. Any of those options would boost the growth in its cash flow on a per-unit basis, which would enhance its ability to increase its distribution in the future.

Predictable distribution growth is an aim for Crestwood, which is why it chose to provide its investors with a relatively modest increase this year even though its cash flow is on track to grow by more than 20%. While its pace will slow down in the future, given the reduction in capital spending, Crestwood operates in three of the best shale basins. That should provide it with plenty of investment opportunities in the coming years.

A great option for yield-seekers

Crestwood Equity Partners has finally finished a multiyear transformation program, which has firmed up its financial foundation as well as accelerated its growth engine. Because of that, it's now in the position to provide its investors with more cash, enabling it to boost its forward yield up to an even more attractive 7.7%. With that payout on one of the firmest foundations in the MLP space and more growth ahead, it's an excellent option for investors who want a low-risk way to collect a steadily rising income stream.

Let's block ads! (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiYGh0dHBzOi8vd3d3LmZvb2wuY29tL2ludmVzdGluZy8yMDIwLzAxLzE4L3RoaXMtNzQteWllbGRpbmctZGl2aWRlbmQtc3RvY2staXMtZmluYWxseS1naXZpbmcuYXNweNIBZGh0dHBzOi8vd3d3LmZvb2wuY29tL2FtcC9pbnZlc3RpbmcvMjAyMC8wMS8xOC90aGlzLTc0LXlpZWxkaW5nLWRpdmlkZW5kLXN0b2NrLWlzLWZpbmFsbHktZ2l2aW5nLmFzcHg?oc=5

2020-01-18 17:22:00Z
CBMiYGh0dHBzOi8vd3d3LmZvb2wuY29tL2ludmVzdGluZy8yMDIwLzAxLzE4L3RoaXMtNzQteWllbGRpbmctZGl2aWRlbmQtc3RvY2staXMtZmluYWxseS1naXZpbmcuYXNweNIBZGh0dHBzOi8vd3d3LmZvb2wuY29tL2FtcC9pbnZlc3RpbmcvMjAyMC8wMS8xOC90aGlzLTc0LXlpZWxkaW5nLWRpdmlkZW5kLXN0b2NrLWlzLWZpbmFsbHktZ2l2aW5nLmFzcHg