European luxury stocks blasted over virus worries as UBS hit by lowered guidance - MarketWatch

European stocks slumped on Tuesday as worries over a spreading virus in China as well as weak guidance from Swiss banking giant UBS weighed.

The Stoxx Europe 600 SXXP, -0.68%  declined 0.75% to 420.79, with declines from luxury-goods producers that rely on Asia for demand. LVMH Moet Hennessy Louis Vuitton MC, -2.87%  , Burberry Group BRBY, -3.65%   and Compagnie Financiere Richemont CFR, -3.32%  each fell over 3%.

U.S. stock futures ES00, -0.36%   also were lower as American traders returned from the three-day break.

More than 200 people have been infected by a new coronavirus outbreak, and four have died, which a Chinese government official said can be spread from human to human. The spreading virus is reminiscent of the SARS outbreak in 2002 and 2003.

Of stocks in the spotlight, UBS shares UBSG, -5.27% UBS, -0.45%   fell 5% on the Swiss banking giant’s downbeat guidance even as fourth-quarter results beat analyst estimates.

UBS forecast a cost-to-income ratio between 75% and 78% in 2022, versus guidance of 72% by the end of 2021. UBS also targeted a return on capital between 12% and 15% between 2020 and 2022, against a previous target of 17% through 2021.

EasyJet EZJ, +4.55%  shares rose 4.7% as the budget airline expects to narrow its first-half loss before tax and said its first-half revenue per seat at constant currencies will grow mid-to-high single digits, versus a previous expectation of low-to-mid-single-digit growth. Fiscal first-quarter revenue rose 9.9% to £1.425 billion.

The airline said it benefited from the collapse of rival Thomas Cook in September.

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2020-01-21 09:55:00Z
CAIiEDIizltDEx4P6zDoOMT1lRcqGAgEKg8IACoHCAowjujJATDXzBUwiJS0AQ

Hong Kong leads Asian markets lower on credit downgrade and coronavirus fears - CNN

The city's benchmark Hang Seng Index (HSI) ended down 2.8% as it received a double dose of bad news. First, Moody's downgraded the city's credit rating to Aa3 from Aa2, citing an "absence of effective response and lack of clarity" on how the government plans to address political and economic concerns. The city has been gripped by pro-democracy protests for months.

Second, China confirmed that the Wuhan coronavirus — a disease that has killed at least four people and sickened more than 200 in the country — can be transmitted between humans.

There have been no confirmed cases of the virus in Hong Kong. But there have been 14 cases in neighboring Guangdong province, including one in nearby Shenzhen.

Shares of Hang Seng components were down across the board. Major property developers like Wharf Real Estate Investment Company and Hang Lung Properties were among the worst performers, having lost more than 4%. Chinese car maker Geely Auto was the worst performer — down 5.3%.

Losses in other major Asian markets also accelerated Tuesday: China's Shanghai Composite (SHCOMP) slumped 1.4%, while South Korea's Kospi (KOSPI) and Japan's Nikkei 225 (N225) closed down 1% and 0.9%, respectively.

While the outbreak of the respiratory virus originated in Wuhan, the largest city in central China, market and economy analysts suggested that it could become a major economic risk for the region should it continue to spread.

The timing of the outbreak is of particular concern, since it coincides with the Lunar New Year holiday, said Rajiv Biswas, IHS Markit's chief economist for Asia Pacific. Millions of people are expected to travel within China and throughout other regions in Asia during this time.

Earlier this month, Chinese scientists identified the pathogen as a new strain of coronavirus, the same family as severe acute respiratory syndrome (SARS). SARS infected more than 8,000 people and killed 774 in a pandemic that ripped through Asia and spread as far as Canada nearly two decades ago.

Since the SARS outbreak, China's international tourism has boomed, so the risks of a SARS-like virus epidemic spreading globally have become even more severe, Biswas said.

The "sea of red" in Asian markets on Tuesday highlights "if nothing else, that the global economy has precious spare capacity to absorb unexpected crises," wrote Jeffrey Halley, senior market analyst for Asia Pacific at Oanda, in a research note Tuesday.

Major airline stocks in the region also fell Tuesday. At least one Chinese state media outlet, the China Youth Daily, suggested that the nation's railway operators and airlines waive cancellation fees to help "contain the spread of the disease."

Air China, China Eastern Airlines and China Southern Airlines — the country's three biggest airlines — fell between 5.9% and 6.7% on Tuesday in Hong Kong, where they trade but are not components of the Hang Seng.

Many stocks in mainland China were also lower Tuesday. Theme park operator Jiangsu Tianmu Lake Tourism and travel service China International Travel Service Corp tumbled 6.1% and 3.6%, respectively, in Shanghai.

Pharmaceutical stocks surged, though: Jiangsu Lianhuan Pharmaceutical and Jiangsu Sihuan Bioengineering shot up 10% in Shenzhen, hitting their daily limit.

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2020-01-21 08:55:00Z
CAIiEAqdK5Aq8Frq8uZOLqyT0X4qGQgEKhAIACoHCAowocv1CjCSptoCMPrTpgU

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, -0.36%   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.

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

69% of Older Americans Are Missing Out on This Key Retirement Savings Opportunity - The Motley Fool

Your senior income will need to come from somewhere, and unless you're privy to a pension, which many workers today are not, you'll most likely rely on a combination of Social Security benefits and retirement savings to cover your bills once your time in the workforce wraps up. Social Security will probably replace around 40% of your pre-retirement income, provided you're an average earner. But most seniors need roughly double that amount to live comfortably, and so if you want to enjoy your golden years, you'll need a healthy level of savings in your IRA or 401(k).

But a large number of older Americans are behind in this regard, reports TD Ameritrade in a new survey. An estimated 37% of workers in their 50s, 28% of workers in their 60s, and 20% of workers in their 70s have less than $50,000 socked away for the future. And these are the people who really need to catch up.

IMAGE SOURCE: GETTY IMAGES.

Thankfully, that option is very much on the table with IRAs and 401(k)s, as both plans allow workers 50 and over to contribute more money on an annual basis than their younger counterparts. Younger workers can contribute up to $6,000 a year to an IRA, but for those 50 and over, that limit increases to $7,000. Meanwhile, workers under 50 can put up to $19,500 into a 401(k), but that limit rises to $26,000 among those 50 and older.

But despite the option to make catch-up contributions in an IRA or 401(k), 69% of workers aged 50 to 79 aren't taking advantage of it. If you're behind on building savings, you'd be wise to capitalize on the catch-up option in your retirement plan. Otherwise, you may not be happy with your financial picture later on.

What can catch-up contributions do for you?

As a general rule, it's a good idea to aim to close out your career with 10 times your ending salary saved up. If you're not all that far away from retirement and are also nowhere close, then taking advantage of catch-up contributions could be your best bet.

Imagine you're 55 with $40,000 in your IRA and that you're aiming to retire at age 70. If you contribute $6,000 a year to that plan over the next 15 years, and your investments generate an average annual 7% return (which is doable when you invest heavily in stocks), you'll grow your balance to about $261,000. But if you max out your IRA at $7,000 a year instead during that decade and a half, you'll wind up with a little more than $286,000. And that extra $25,000 could make a huge difference down the line.

The gap between making catch-up contributions or not gets even wider with a 401(k). Let's adjust the above scenario to account for 401(k) limits. If you're starting with $40,000 at age 55 and contribute $19,500 to your savings over 15 years, you'll wind up with about $600,000, assuming an average annual 7% return. But if you take advantage of catch-ups in that account, socking away $26,000 annually for the next 15 years instead, you'll end up with close to $764,000.

Of course, if you're doing fairly well savings-wise and are on track to retire with 10 times your ending salary or more, then you may not need to push yourself to make catch-up contributions to your IRA or 401(k). But if you're behind on savings, don't miss out on that key opportunity to make up for lost time.

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2020-01-20 11:16:00Z
CAIiEP3GtWLqkkKESZClutJy_NcqFQgEKgwIACoFCAowgHkwoBEw2vCeBg

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.”

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2020-01-20 10:45:00Z
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First 2020 Chevrolet Corvette Stingray auctioned for $3 million - Fox News

2020 Chevrolet Corvette Stingray revealed

The eighth-generation Chevrolet Corvette Stingray is the first mid-engine version in the model's history, and promises supercar performance at a bargain basement price less than $60,000.

And you thought dealer markups on hot new cars were big.

(Barrett-Jackson)

The rights to the first 2020 Chevrolet Corvette Stingray off the production line were auctioned at the Barrett-Jackson event in Scottsdale, Ariz., on Saturday night for $3 million. The base price for the model is just $59,995.

As the first-ever mid-engine Corvette, the coupe is set to be one of the most historic examples of the model ever built. NASCAR team owner Rick Hendrick was the winning bidder. Hendrick has one of the largest Chevrolet sports car collections in the world and has purchased several significant examples at past charity auctions.

GM CEO Mary Barra with auction winner Rick Hendrick. (Barrett-Jackson)

All of the proceeds from the sale were earmarked for the Detroit Children’s Fund, which is aimed at improving the city’s schools. A red pre-production prototype stood in for VIN001 on the auction block, while the actual car will be black with a black interior, red seat belts, GT2 performance seats, performance data recorder and outfitted with both the 3LT trim and Z51 performance packages.

The price Hendrick paid sets a record for a new Corvette sold at a charity auction, eclipsing the $2.7 million that the final front-engine Corvette went for at a Barrett-Jackson event last summer.

Production of the 2020 Corvette is expected to begin in February.

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2020-01-19 13:30:37Z
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'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)

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2020-01-19 04:37:04Z
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