Coronavirus: IMF chief says the outbreak is the ‘most pressing uncertainty’ for global economy

The international health emergency that “we did not anticipate in January” now threatens to derail global economic growth that was already under pressure from a global trade war and Brexit, she said Wednesday in a blog post published on the IMF’s website. The virus has already slowed China’s economic growth this year, Georgieva said, just how much depends on efforts by world leaders to contain the fast-spreading outbreak. The IMF’s Georgieva warns that a long-lasting outbreak would have signific


The international health emergency that “we did not anticipate in January” now threatens to derail global economic growth that was already under pressure from a global trade war and Brexit, she said Wednesday in a blog post published on the IMF’s website.
The virus has already slowed China’s economic growth this year, Georgieva said, just how much depends on efforts by world leaders to contain the fast-spreading outbreak.
The IMF’s Georgieva warns that a long-lasting outbreak would have signific
Coronavirus: IMF chief says the outbreak is the ‘most pressing uncertainty’ for global economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-19  Authors: william feuer
Keywords: news, cnbc, companies, coronavirus, virus, georgieva, disruptions, world, outbreak, growth, chief, supply, economic, imf, pressing, global, uncertainty, economy


Coronavirus: IMF chief says the outbreak is the 'most pressing uncertainty' for global economy

International Monetary Fund (IMF) Managing Director Kristalina Georgieva delivers her curtain raiser speech previewing the key issues to be addressed in the Annual Meetings in Washington, DC, on October 8, 2019.

International Monetary Fund head Kristalina Georgieva said the new coronavirus, or COVID-19, outbreak is the “most pressing uncertainty” facing the world economy right now.

The international health emergency that “we did not anticipate in January” now threatens to derail global economic growth that was already under pressure from a global trade war and Brexit, she said Wednesday in a blog post published on the IMF’s website.

“It is a stark reminder of how a fragile recovery could be threatened by unforeseen events,” she added.

The virus has already slowed China’s economic growth this year, Georgieva said, just how much depends on efforts by world leaders to contain the fast-spreading outbreak.

“If the disruptions from the virus end quickly, we expect the Chinese economy to bounce back soon,” she wrote, adding that China’s GDP growth would drop sharply in the first quarter of 2020, it would be a minor hit on the year. “Spillovers to other countries would remain relatively minor and short-lived, mostly through temporary supply chain disruptions, tourism, and travel restrictions.”

Originating in the city of Wuhan, the new coronavirus has infected more than 75,200 people in over two dozen countries, killing at least 2,000 people as of Wednesday.

To contain the virus, cities around China have issued quarantine orders that have effectively shut down typically bustling places. The outbreak, as well as the effort to contain it, has already led multinational companies like Apple to warn investors about reduced demand and supply chain interruptions.

The IMF’s Georgieva warns that a long-lasting outbreak would have significant consequences for the Chinese and global economies.

“Its global impact would be amplified through more substantial supply chain disruptions and a more persistent drop in investor confidence, especially if the epidemic spreads beyond China,” she said in the post.

Georgieva told CNBC recently that this week and next are crucial in determining the economic impact of the outbreak as factories throughout China are set to resume operations. She also cautioned against comparing the COVID-19 outbreak to SARS in 2003, which some economists estimate cost the global economy $45 billion.

China only represented 8% of the world economy in the early 2000s and now makes up a 19% share, she pointed out.


Company: cnbc, Activity: cnbc, Date: 2020-02-19  Authors: william feuer
Keywords: news, cnbc, companies, coronavirus, virus, georgieva, disruptions, world, outbreak, growth, chief, supply, economic, imf, pressing, global, uncertainty, economy


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Fed calls the coronavirus a ‘new risk to global growth outlook’

Federal Reserve Chair Jerome Powell arrives for a news conference following the Federal Open Market Committee meeting in Washington, December 11, 2019. Though the coronavirus had just taken hold when the Federal Reserve met in January, officials already expressed concern about its potential economic impacts. “The threat of the coronavirus, in addition to its human toll, had emerged as a new risk to the global growth outlook, which participants agreed warranted close watching,” minutes released W


Federal Reserve Chair Jerome Powell arrives for a news conference following the Federal Open Market Committee meeting in Washington, December 11, 2019.
Though the coronavirus had just taken hold when the Federal Reserve met in January, officials already expressed concern about its potential economic impacts.
“The threat of the coronavirus, in addition to its human toll, had emerged as a new risk to the global growth outlook, which participants agreed warranted close watching,” minutes released W
Fed calls the coronavirus a ‘new risk to global growth outlook’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-19  Authors: jeff cox
Keywords: news, cnbc, companies, coronavirus, virus, minutes, world, growth, calls, market, economic, fed, global, federal, uncertainty, outlook, potential, risk


Fed calls the coronavirus a 'new risk to global growth outlook'

Federal Reserve Chair Jerome Powell arrives for a news conference following the Federal Open Market Committee meeting in Washington, December 11, 2019.

Though the coronavirus had just taken hold when the Federal Reserve met in January, officials already expressed concern about its potential economic impacts.

“The threat of the coronavirus, in addition to its human toll, had emerged as a new risk to the global growth outlook, which participants agreed warranted close watching,” minutes released Wednesday from the Federal Open Market Committee’s Jan. 28-29 meeting said.

Central bank policymakers said, for instance, that if the virus spread it could hit what appeared to be an improving growth picture in China.

The minutes noted that “early GDP releases showed a pickup in growth in China and some other Asian economies, though news of the coronavirus outbreak raised questions about the sustainability of that pickup.”

Officials also cited the potential impact on stocks, though the market has been performing well. Negative headlines about the virus have caused some volatility.

“Late in the period, concerns about the spread of the coronavirus and uncertainty about its potential economic effect weighed negatively on investor sentiment and led to moderate declines in the prices of risky assets,” the minutes said.

Officials also commented on the impact the disease had on China’s currency, which had been appreciating but tailed off as the news cycle intensified.

Those statements come amid continuing concern about the virus not only as a health threat but also as an economic one to a global growth picture that has been wobbly.

International Monetary Fund Managing Director Kristalina Georgieva called the COVID-19, outbreak the “most pressing uncertainty” in the world now.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.


Company: cnbc, Activity: cnbc, Date: 2020-02-19  Authors: jeff cox
Keywords: news, cnbc, companies, coronavirus, virus, minutes, world, growth, calls, market, economic, fed, global, federal, uncertainty, outlook, potential, risk


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Markets may face ‘pretty serious reckoning’ as coronavirus slows growth, Yale’s Stephen Roach says

The coronavirus may significantly weaken a global economy that was already in a precarious position, Yale University’s Stephen Roach told CNBC on Wednesday. “If the global economy is as weak as I think it is in the first half of this year, that points to a pretty serious reckoning for frothy financial markets,” the former Morgan Stanley Asia chairman said on “Closing Bell.” Roach’s warning Wednesday comes hours after the International Monetary Fund’s leader called the coronavirus “most pressing


The coronavirus may significantly weaken a global economy that was already in a precarious position, Yale University’s Stephen Roach told CNBC on Wednesday.
“If the global economy is as weak as I think it is in the first half of this year, that points to a pretty serious reckoning for frothy financial markets,” the former Morgan Stanley Asia chairman said on “Closing Bell.”
Roach’s warning Wednesday comes hours after the International Monetary Fund’s leader called the coronavirus “most pressing
Markets may face ‘pretty serious reckoning’ as coronavirus slows growth, Yale’s Stephen Roach says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-19  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, uncertainty, serious, roach, economy, slows, global, yales, growth, yale, reckoning, pretty, world, coronavirus, stephen, markets, face, think


Markets may face 'pretty serious reckoning' as coronavirus slows growth, Yale's Stephen Roach says

The coronavirus may significantly weaken a global economy that was already in a precarious position, Yale University’s Stephen Roach told CNBC on Wednesday.

“If the global economy is as weak as I think it is in the first half of this year, that points to a pretty serious reckoning for frothy financial markets,” the former Morgan Stanley Asia chairman said on “Closing Bell.”

Roach’s warning Wednesday comes hours after the International Monetary Fund’s leader called the coronavirus “most pressing uncertainty” for the world economy. Goldman Sachs also warned that for markets “risks of a correction are high.”

Investors have been trying to make sense of what the coronavirus means for businesses since late January. And yet, the market has only seen a few pullbacks in that stretch as the major U.S. stock indexes continue to set fresh highs.

The S&P 500 and Nasdaq Composite posted record highs Wednesday. The S&P 500 is up 4.8% so far this year, while the tech-heavy Nasdaq is up 9.4%.

Roach said the markets continued move to the upside despite coronavirus uncertainty does not make sense because “irrational exuberance never makes sense.”

“As long as central banks are opening up the liquidity spigot as wide as they are, the markets pay absolutely no attention to any potential threats to economic activity,” Roach said. “It’s the here and now, and it works until it doesn’t.”

Roach said the coronavirus outbreak carries increased financial risk due to the state of the global economy entering 2020.

He previously pointed to the IMF’s estimate of 2.9% global growth in 2019, writing in a piece for Yale that it had “slowed into the danger zone.”

“The world was only about 0.4 above the global recession threshold,” he said Wednesday.

And since the IMF published that figure in January, Roach said more sour economic data has emerged. Japan may have fallen back into recession, he said, and Germany and France reported poor December industrial output figures.

“With Europe and Japan and China in trouble, the U.S. certainly will not once again be the oasis the market seems to think it will [be] in 2020,” he said.


Company: cnbc, Activity: cnbc, Date: 2020-02-19  Authors: kevin stankiewicz
Keywords: news, cnbc, companies, uncertainty, serious, roach, economy, slows, global, yales, growth, yale, reckoning, pretty, world, coronavirus, stephen, markets, face, think


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Here’s what every major analyst had to say about Apple’s big coronavirus warning

Apple said there could be global iPhone supply shortages as the virus has resulted in the company keeping its China factories shuttered longer than anticipated alongside many store closings. The company had also previously given a wider range of guidance in its first-quarter earnings report in January due to the coronavirus uncertainty. The virus continues to cause uncertainty and havoc on various parts of the market with Apple being the latest company to warn shareholders about the consequences


Apple said there could be global iPhone supply shortages as the virus has resulted in the company keeping its China factories shuttered longer than anticipated alongside many store closings.
The company had also previously given a wider range of guidance in its first-quarter earnings report in January due to the coronavirus uncertainty.
The virus continues to cause uncertainty and havoc on various parts of the market with Apple being the latest company to warn shareholders about the consequences
Here’s what every major analyst had to say about Apple’s big coronavirus warning Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: michael bloom
Keywords: news, cnbc, companies, major, coronavirus, apples, heres, big, analyst, apple, uncertaintythe, warning, company, say, warn, tradingheres, wider, uncertainty, various, virus, guidance


Here's what every major analyst had to say about Apple's big coronavirus warning

(This story is for subscribers only.)

Apple said there could be global iPhone supply shortages as the virus has resulted in the company keeping its China factories shuttered longer than anticipated alongside many store closings. The company had also previously given a wider range of guidance in its first-quarter earnings report in January due to the coronavirus uncertainty.

The virus continues to cause uncertainty and havoc on various parts of the market with Apple being the latest company to warn shareholders about the consequences of the deadly illness.

Shares of the company were down 2.34% in early trading.

Here’s what Apple analysts are saying about the company’s revenue guidance announcement:


Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: michael bloom
Keywords: news, cnbc, companies, major, coronavirus, apples, heres, big, analyst, apple, uncertaintythe, warning, company, say, warn, tradingheres, wider, uncertainty, various, virus, guidance


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Jim Cramer reveals top four stock picks amid coronavirus uncertainty

CNBC’s Jim Cramer on Tuesday laid out a shortlist of companies that can benefit from the coronavirus outbreak. “I don’t want to profiteer off an epidemic that’s already killed 2,000 people, but we need to acknowledge how this coronavirus outbreak is changing the world,” the “Mad Money” host said. “You’ve got Clorox, Zoom Video and Teladoc on reality, Gilead on hope. Zoom Video shares are up almost 42% year to date, including a roughly 10% gain since the Feb. 3 interview. Cramer thinks the stock


CNBC’s Jim Cramer on Tuesday laid out a shortlist of companies that can benefit from the coronavirus outbreak.
“I don’t want to profiteer off an epidemic that’s already killed 2,000 people, but we need to acknowledge how this coronavirus outbreak is changing the world,” the “Mad Money” host said.
“You’ve got Clorox, Zoom Video and Teladoc on reality, Gilead on hope.
Zoom Video shares are up almost 42% year to date, including a roughly 10% gain since the Feb. 3 interview.
Cramer thinks the stock
Jim Cramer reveals top four stock picks amid coronavirus uncertainty Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: tyler clifford
Keywords: news, cnbc, companies, outbreak, clorox, picks, jim, reveals, company, zoom, uncertainty, cramer, coronavirus, virus, amid, video, china, stock


Jim Cramer reveals top four stock picks amid coronavirus uncertainty

CNBC’s Jim Cramer on Tuesday laid out a shortlist of companies that can benefit from the coronavirus outbreak. “I don’t want to profiteer off an epidemic that’s already killed 2,000 people, but we need to acknowledge how this coronavirus outbreak is changing the world,” the “Mad Money” host said. “And, yes, some companies are benefiting from that, because they benefit from keeping us healthy.” “While this virus has been a colossal contributor to a slowdown in the global economy, it simply doesn’t lend itself to goods that are working,” he added. “You’ve got Clorox, Zoom Video and Teladoc on reality, Gilead on hope. That’s about it.”

Volunteers in protective suits disinfect a factory with sanitizing equipment, as the country is hit by an outbreak of the novel coronavirus, in Huzhou, Zhejiang province, China February 18, 2020. China Daily | Reuters

Clorox

A cure has yet to be discovered for the novel flu-like virus. Consumer are likely to turn to Clorox disinfecting products — bleach and wipes — that can kill germs to play their part in keeping the coronavirus at bay, Cramer said. He added that Clorox’s cleaning business, which makes up 34% of the company’s revenue, can offset weakness in the company’s household segment. The household segment suffered double-digit declines in two of its past three quarter, according to FactSet. “You can’t afford not to have wipes of some sort because of the surface issue,” the host said. “You also know that bleach can kill it on contact on your clothes if they touch the virus.” Clorox CEO told Cramer in an interview earlier this month that the company has not seen an “impact on sales just yet,” but that it would build inventory “should consumers, customers and communities need it.” “Clorox is incredibly well run, the cost savings from their restructuring are coming through and I think the stock is a buy, which is why it’s an integral part of my charitable trust, as I’ve been telling members of the ActionAlertsPlus.com club,” Cramer said.

Zoom Video

Demand for Zoom Video Communication’s videoconferencing and collaboration tools that allow employees to work from home has shot up because of the coronavirus epidemic in China, the company’s CEO Eric Yuan said in a “Mad Money” interview earlier this month. Businesses closed operations in China, particularly in the outbreak’s epicenter of the Hubei province, to limit their employees’ chances of coming in contact with the disease. Zoom Video shares are up almost 42% year to date, including a roughly 10% gain since the Feb. 3 interview. Cramer thinks the stock is set to break through its all-time high of about $107 it set in June. The stock is within $11 of the mark. “I can’t imagine their sales slowing down just when the virus starts to spread beyond its epicenter,” he said.

Teladoc

Shares of Teladoc Health, the telemedicine company that connects patients with a doctor remotely, are up 40% in 2020. “People are starting to realize that it stands to benefit, which is why the stock roared almost 5% today,” Cramer said.

Gilead

Cramer said he would take a chance on Gilead, a biotech company that is working on a coronavirus drug. The stock pays investors a 4% yield, he noted. At $67.01, the stock is more than $2 off its June closing high. “If any drug company is going to solve the puzzle of what to give people who’ve been hospitalized with COVID-19, I bet it’s Gilead,” Cramer said. “Even if they fail, the stock’s too cheap to ignore here.”


Company: cnbc, Activity: cnbc, Date: 2020-02-18  Authors: tyler clifford
Keywords: news, cnbc, companies, outbreak, clorox, picks, jim, reveals, company, zoom, uncertainty, cramer, coronavirus, virus, amid, video, china, stock


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Uncertainty looms over Asia’s top events as coronavirus fears grip

Visitors viewing artwork at Art Basel on March 27, 2019 in Hong Kong. From art shows to golf tournaments, countries like Hong Kong, Singapore and Thailand have seen major events called off. As of Wednesday, Hong Kong had 49 confirmed cases, including one death. Stuart Bailey, chairman of Hong Kong Exhibition & Convention Industry Association, said the Asian financial hub has postponed all MICE events for now. Coronavirus impact on SingaporeSingapore has not been spared either.


Visitors viewing artwork at Art Basel on March 27, 2019 in Hong Kong.
From art shows to golf tournaments, countries like Hong Kong, Singapore and Thailand have seen major events called off.
As of Wednesday, Hong Kong had 49 confirmed cases, including one death.
Stuart Bailey, chairman of Hong Kong Exhibition & Convention Industry Association, said the Asian financial hub has postponed all MICE events for now.
Coronavirus impact on SingaporeSingapore has not been spared either.
Uncertainty looms over Asia’s top events as coronavirus fears grip Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-12  Authors: audrey cher
Keywords: news, cnbc, companies, asias, kong, grip, looms, outbreak, industry, spread, coronavirus, mice, impact, fears, hong, events, singapore, uncertainty


Uncertainty looms over Asia's top events as coronavirus fears grip

Visitors viewing artwork at Art Basel on March 27, 2019 in Hong Kong. The 2020 event in Hong Kong was cancelled due to concerns over the spread of a new coronavirus that has killed hundreds, most of them from China. Theodore Kaye | Getty Images

Events across Asia have been postponed or cancelled, as mounting fears over the spread of a new coronavirus prompt organizers to scale back — or completely withdraw — their plans. From art shows to golf tournaments, countries like Hong Kong, Singapore and Thailand have seen major events called off. The annual Art Basel Hong Kong 2020, one of Asia’s most prestigious art fairs planned for March 19-21, was cancelled “due to the severe outbreak and spread of the new coronavirus,” according to organizers. Meanwhile, both the 2020 Honda LGPA Thailand in the Thai resort city of Pattaya, and the 2020 HSBC Women’s World Championship in Singapore, were also called off. Both events were set to take place at the end of February. The Ladies Professional Golf Association (LPGA) said on Monday the decision was made due to “continued health concerns” over the spread of the virus. As of Wednesday, Hong Kong had 49 confirmed cases, including one death. The number of confirmed cases in Singapore reached 47, while Thailand reported 33 cases so far.

SARS and now

There are rising concerns within the travel and events industry that the economic impact of the new coronavirus will be felt in the coming months. Stuart Bailey, chairman of Hong Kong Exhibition & Convention Industry Association, said the Asian financial hub has postponed all MICE events for now. MICE refers to the Meetings, Incentives, Conventions and Exhibitions industry. While most can be rescheduled throughout the year, he noted that it will become harder to work around a backlog of events in the coming months.

Making reference to the 2003 SARS outbreak — which dealt a heavy blow to Asian economies including Singapore, Hong Kong and Taiwan — he said the likely postponement of events that were to be held in March and April will be “pretty damaging” to the Hong Kong economy. “If events need to be held in the summer months … July and August, maybe this is one of those years — you just do your best and muddle through,” Bailey told CNBC last week. The disease — now officially named COVID-19 — is believed to have started in a seafood market in the Chinese city of Wuhan, and has since infected more than 40,000 people and killed over 1,000 people in China alone. Most of the deaths and cases occurred in mainland China.

Coronavirus impact on Singapore

Singapore has not been spared either. The biennial Singapore Airshow, Asia’s largest aerospace and defense event, chose to carry on despite concerns about the virus. However, more than 70 exhibitors pulled out before the airshow started on Feb. 11. They included major exhibitors like American aerospace and defense firm Lockheed Martin, and Canadian business jet manufacturers Bombardier. The Singapore Tourism Board said on Tuesday: “The Novel Coronavirus has had a significant impact on visitor arrivals, especially from China, which accounts for around 20 per cent of international visitor arrivals.” “Based on the current situation, the Singapore Tourism Board (STB) expects visitor arrivals this year to fall by about 25 to 30 per cent,” according to a statement by the government agency, which helps promote the country’s tourism industry.

While the impact of the current outbreak on Singapore’s MICE industry is still uncertain, an estimated 40% to 45% of event attendees dropped out at the height of the SARS outbreak in May 2003, Aloysius Arlando, president of the Singapore Association of Convention and Exhibition Organisers and Suppliers (SACEOS), told CNBC in early February. Having gone through previous episodes of SARS, the H1N1 swine flu and even the regular haze episodes of bad air quality, the Singapore MICE industry as a whole is more prepared, Arlando said. He said comfort can be taken in the swift response put into place by the various government-led agencies, as well as what his organization SACEOS is doing as a “coordinated effort” to work with the Singapore authorities.

Fresh blow to Hong Kong


Company: cnbc, Activity: cnbc, Date: 2020-02-12  Authors: audrey cher
Keywords: news, cnbc, companies, asias, kong, grip, looms, outbreak, industry, spread, coronavirus, mice, impact, fears, hong, events, singapore, uncertainty


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Schick razor maker abandons its $1.37 billion deal for Harry’s after FTC opposition

Schick razor maker Edgewell Personal Care on Monday scrapped its $1.37 billion deal for peer Harry’s Inc after the U.S. competition regulator sought to stop the deal. The Federal Trade Commission earlier this month said it would file a lawsuit to block the acquisition, arguing it would harm competition in the U.S. shaving industry. The shaving market has long been dominated by Procter & Gamble, which makes Gillette brand razors, and Edgewell, which makes Wilkinson Sword and many private label ra


Schick razor maker Edgewell Personal Care on Monday scrapped its $1.37 billion deal for peer Harry’s Inc after the U.S. competition regulator sought to stop the deal.
The Federal Trade Commission earlier this month said it would file a lawsuit to block the acquisition, arguing it would harm competition in the U.S. shaving industry.
The shaving market has long been dominated by Procter & Gamble, which makes Gillette brand razors, and Edgewell, which makes Wilkinson Sword and many private label ra
Schick razor maker abandons its $1.37 billion deal for Harry’s after FTC opposition Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-10
Keywords: news, cnbc, companies, billion, razors, ftc, edgewell, opposition, makes, razor, shaving, schick, abandons, market, competition, unilever, harrys, deal, 137, uncertainty, maker, wilkinson


Schick razor maker abandons its $1.37 billion deal for Harry's after FTC opposition

Schick razor maker Edgewell Personal Care on Monday scrapped its $1.37 billion deal for peer Harry’s Inc after the U.S. competition regulator sought to stop the deal.

The Federal Trade Commission earlier this month said it would file a lawsuit to block the acquisition, arguing it would harm competition in the U.S. shaving industry.

“We are disappointed by the FTC’s decision and continue to disagree with its position,” Chief Executive Officer Rod Little said in a statement.

“Given the inherent uncertainty of a potential trial, the required investment of resources and time …, we determined that proceeding with our standalone strategy is the best course of action for Edgewell,” he said.

The shaving market has long been dominated by Procter & Gamble, which makes Gillette brand razors, and Edgewell, which makes Wilkinson Sword and many private label razors. The market was shaken up by the entry of Harry’s and Dollar Shave Club — bought by Unilever in 2016 — with their online-focused businesses.

Edgewell said privately owned Harry’s intended to pursue litigation against it.


Company: cnbc, Activity: cnbc, Date: 2020-02-10
Keywords: news, cnbc, companies, billion, razors, ftc, edgewell, opposition, makes, razor, shaving, schick, abandons, market, competition, unilever, harrys, deal, 137, uncertainty, maker, wilkinson


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

South African growth forecasts slashed on policy uncertainty and Eskom woes

President Cyril Ramaphosa during a pre-World Economic Forum breakfast briefing on January 18, 2018 in Johannesburg, South Africa. Moeletsi Mabe| Sunday Times | Gallo Images | Getty ImagesFinancial services firm Absa has sharply reduced its growth forecasts for South Africa as persistently weak business sentiment, electricity supply issues and a drought weigh on the economy. South African national flags hang above an advertisement for the new Mandela rand banknotes at the headquarters of the cent


President Cyril Ramaphosa during a pre-World Economic Forum breakfast briefing on January 18, 2018 in Johannesburg, South Africa.
Moeletsi Mabe| Sunday Times | Gallo Images | Getty ImagesFinancial services firm Absa has sharply reduced its growth forecasts for South Africa as persistently weak business sentiment, electricity supply issues and a drought weigh on the economy.
South African national flags hang above an advertisement for the new Mandela rand banknotes at the headquarters of the cent
South African growth forecasts slashed on policy uncertainty and Eskom woes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-05  Authors: elliot smith
Keywords: news, cnbc, companies, forecasts, uncertainty, growth, south, african, slashed, africa, 2019, getty, woes, eskom, bank, policy, absa, suggested, inflation


South African growth forecasts slashed on policy uncertainty and Eskom woes

President Cyril Ramaphosa during a pre-World Economic Forum breakfast briefing on January 18, 2018 in Johannesburg, South Africa. Moeletsi Mabe| Sunday Times | Gallo Images | Getty Images

Financial services firm Absa has sharply reduced its growth forecasts for South Africa as persistently weak business sentiment, electricity supply issues and a drought weigh on the economy. In its first-quarter report, Africa’s third-largest bank cut its full-year 2019 GDP (gross domestic product) growth forecast to an anemic 0.3% from the 0.6% expected in October 2019. The 2020 projection was reduced to 0.9% from 1.4%, with 2021 and 2022 predicted to level out at 1.2% as opposed to the 1.4% projected the previous quarter. Following a broad-based GDP contraction of 0.6% in the third quarter of 2019, fourth-quarter data is due March 3 and is also expected to be weak, coming in at around a 0.4% expansion in part due to renewed power cuts. Absa economists expect inflation to remain well contained at around 4.1% in 2019, rising to 4.4% in 2020, with traditional upside pressures like administered prices and a drought being quashed by demand weakness.

On January 16, the South African Reserve Bank (SARB) cut its repo rate by 25 basis points to 6.25%, surprising analysts, and Absa economists suggested that a divided Monetary Policy Committee, combined with low inflation and growth but substantial looming risks, made central bank policy decisions all the more unpredictable. The bank expects rates to remain on hold for the foreseeable future, but with risks skewed in favor of further easing rather than hikes, as inflation could continue below the SARB’s expectations. The rand is also “overvalued,” the report suggested, which together with the prospect of large capital outflows in the first half of the year could weaken the currency back up to round 15 rands per U.S. dollar.

South African national flags hang above an advertisement for the new Mandela rand banknotes at the headquarters of the central bank in Pretoria, South Africa, on May 23, 2013. Nadine Hutton | Bloomberg | Getty Images

Absa also anticipates more credit rating downgrades for South African sovereign debt with Moody’s holding the country’s last remaining investment-grade rating. Amid ballooning debt and an expanding fiscal deficit, however, the ratings agency last November cut its outlook for South Africa from “stable” to “negative,” and the bank said Moody’s is “more likely than not” to act on this and downgrade the country to sub-investment grade on March 27.

Political fissures

State-owned energy utility Eskom continues to blight the macroeconomic picture. The government unveiled a program for its unbundling into three entities early last year, but Absa analysts suggested that this alone will not be sufficient to fix the electricity sector’s challenges. What’s more, significant reforms of Eskom and other state-owned enterprises (SOEs) faces pushback, in part due to divisions within the ruling African National Congress (ANC), Absa economists Peter Worthington, Miyelani Maluleke, Sello Sekele and Andiswa Mdingi highlighted in the report.

A freight train leaves an Eskom power plant in Hendrina, South Africa, on February 22, 2018, after having discharged its load of coal. Marco Longari | AFP | Getty Images


Company: cnbc, Activity: cnbc, Date: 2020-02-05  Authors: elliot smith
Keywords: news, cnbc, companies, forecasts, uncertainty, growth, south, african, slashed, africa, 2019, getty, woes, eskom, bank, policy, absa, suggested, inflation


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Franchising growth could fall to lowest rate in four years amid election year uncertainty

America’s franchisees are poised for another year of growth in 2020 as the U.S. economy chugs along, bolstered by a strong consumer. But facing an election year and a historically tight jobs market, franchise establishment growth is slowing to its lowest rate in the past four years. Despite the sunny outlook, the study done by FRANdata, expects “steady but slowing growth” in the year ahead. Still, the GDP contribution by the franchising industry is expected to grow by 4.6% to nearly $495 billion


America’s franchisees are poised for another year of growth in 2020 as the U.S. economy chugs along, bolstered by a strong consumer.
But facing an election year and a historically tight jobs market, franchise establishment growth is slowing to its lowest rate in the past four years.
Despite the sunny outlook, the study done by FRANdata, expects “steady but slowing growth” in the year ahead.
Still, the GDP contribution by the franchising industry is expected to grow by 4.6% to nearly $495 billion
Franchising growth could fall to lowest rate in four years amid election year uncertainty Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-05  Authors: kate rogers
Keywords: news, cnbc, companies, amid, number, theres, 2020, election, franchise, outlook, jobs, franchising, fall, slowing, uncertainty, market, lowest, industry, rate, growth


Franchising growth could fall to lowest rate in four years amid election year uncertainty

America’s franchisees are poised for another year of growth in 2020 as the U.S. economy chugs along, bolstered by a strong consumer. But facing an election year and a historically tight jobs market, franchise establishment growth is slowing to its lowest rate in the past four years.

The International Franchise Association’s Franchise Business Economic Outlook for 2020 projects the number of franchised business in the U.S. will increase by 1.5% to a total of 785,316 — adding 232,000 jobs this year to reach 8.6 million employees. This is the tenth year in a row of establishment growth.

Despite the sunny outlook, the study done by FRANdata, expects “steady but slowing growth” in the year ahead. The expected increase in the number of franchised establishments nationwide is 1.5%, the slowest pace since 2016. Still, the GDP contribution by the franchising industry is expected to grow by 4.6% to nearly $495 billion.

“We see industry growth continuing to ride momentum and market growth in 2020 despite broader uncertainty in the rest of the economy, so there’s a slight plateau compared to other years,” said Matthew Haller, senior vice president of government relations and public affairs for the IFA, the industry’s largest franchising association. “Anytime you get into the year before or of an election, there’s some hesitation about investment.”


Company: cnbc, Activity: cnbc, Date: 2020-02-05  Authors: kate rogers
Keywords: news, cnbc, companies, amid, number, theres, 2020, election, franchise, outlook, jobs, franchising, fall, slowing, uncertainty, market, lowest, industry, rate, growth


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Coronavirus live updates: Singapore confirms infant with virus, ECB chief says outbreak fuels economic uncertainty

10:03 am: WHO schedules media updateThe World Health Organization scheduled a media briefing at 10 a.m. 9:57 am: Adidas getting hit by outbreakAdidas confirmed that it has closed a significant number of stores in China because of the coronavirus. The company is currently operating less than 500 stores in China, 4% of the 12,000 locations it has there, including franchise stores. – Miller9:35 am: Coronavirus infects six-month-old baby in SingaporeSingapore’s health ministry confirmed four more co


10:03 am: WHO schedules media updateThe World Health Organization scheduled a media briefing at 10 a.m.
9:57 am: Adidas getting hit by outbreakAdidas confirmed that it has closed a significant number of stores in China because of the coronavirus.
The company is currently operating less than 500 stores in China, 4% of the 12,000 locations it has there, including franchise stores.
– Miller9:35 am: Coronavirus infects six-month-old baby in SingaporeSingapore’s health ministry confirmed four more co
Coronavirus live updates: Singapore confirms infant with virus, ECB chief says outbreak fuels economic uncertainty Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-02-05  Authors: berkeley lovelace jr william feuer, berkeley lovelace jr, william feuer
Keywords: news, cnbc, companies, economic, uncertainty, media, updates, coronavirus, health, singapore, infant, cases, global, stores, fuels, reported, china, research, live, outbreak, virus, ecb


Coronavirus live updates: Singapore confirms infant with virus, ECB chief says outbreak fuels economic uncertainty

This is a live blog. Please check back for updates. All times below are in Eastern time. Total cases: More than 24,000 as of Wednesday morning.

Total deaths: At least 490 worldwide as of Wednesday morning.

10:03 am: WHO schedules media update

The World Health Organization scheduled a media briefing at 10 a.m. ET as the number of cases rises above 24,000 across the globe, most of them contained in China. Watch the live press conference here.

9:57 am: Adidas getting hit by outbreak

Adidas confirmed that it has closed a significant number of stores in China because of the coronavirus. The company is currently operating less than 500 stores in China, 4% of the 12,000 locations it has there, including franchise stores. In a statement to CNBC, the company said it is too early to assess the magnitude of the virus’ impact. – Miller

9:35 am: Coronavirus infects six-month-old baby in Singapore

Singapore’s health ministry confirmed four more coronavirus cases, including a six-month-old baby. Both parents of the infant, a Singapore citizen, have also been infected, the ministry said. On Tuesday, Singapore reported its first cases of citizens and residents who had contracted the virus without recent travel to China, where the outbreak first surfaced in late December. – Reuters

9:30 am: Retailer Capri Holdings takes a hit

Michael Kors owner Capri Holdings said it has taken a $100 million hit to revenue because of the coronavirus. Capri closed 150 of its 225 stores in mainland China and has seen a significantly drop in foot traffic. The company warned that travel restrictions on visitors from China could also put pressure on sales in other regions. “This is going to be a very tough period for luxury brands,” said Ben Cavender, managing director at China Market Research Group in Shanghai. “There is going to be a negative long-term effect as well, as many corporate offices are shut down or barely functioning and this is a key time period for planning future seasons.” – Miller

9:05 am: Bill & Melinda Gates Foundation commits $100 million

The Bill & Melinda Gates Foundation said it will spend up to $100 million to improve detection, isolation and treatment efforts for the new coronavirus. It also hopes to accelerate the development of vaccines, drugs and diagnostics. “Multilateral organizations, national governments, the private sector and philanthropies must work together to slow the pace of the outbreak, help countries protect their most vulnerable citizens and accelerate the development of the tools to bring this epidemic under control,” Gates Foundation CEO Mark Suzman said. – Feuer

9 am: Princess Cruises says one person from the US among 10 diagnosed on ship

Princess Cruises confirmed to CNBC that one of the people in its ship near Japan who tested positive for the coronavirus is from the United States. Of the 9 others, there are two passengers from Australia, three from Japan and three from Hong Kong and one Filipino crew member. The 3,700 people on the ship will remain in quarantine for 14 days in total. – Feuer

8 am: ECB chief says outbreak ‘adds a new layer of uncertainty’ to global growth

The president of the European Central Bank expressed concern that China’s coronavirus outbreak is fueling global economic uncertainty. “The short-term uncertainties are mainly related to global risks — trade, geopolitical and now the outbreak of the coronavirus and its potential effect on global growth,” Christine Lagarde said during a speech in Paris, according to Reuters. “While the threat of a trade war between the United States and China appears to have receded, the coronavirus adds a new layer of uncertainty.”

7:25 am: WHO says there are ‘no known’ effective drug treatments against coronavirus

The World Health Organization played down reports of a drug breakthrough against the coronavirus. “There are no known effective therapeutics against this 2019-nCoV and WHO recommends enrollment into a randomized controlled trial to test efficacy and safety,” WHO said Wednesday. “A master global clinical trial protocol for research and prioritization of therapeutics is ongoing at the WHO.” Earlier in the day, Reuters said a Chinese TV media outlet had reported that a research team at Zhejiang University had found an effective drug to treat people with the new coronavirus. The news agency, citing traders, suggested this was a reason for the move higher in stocks. Separately, Sky News reported Wednesday that a scientist from Imperial College London had made a significant breakthrough in the race to develop a vaccine. CNBC has not been able to verify the media reports.

6:20 am: China’s Xi says the country must crack down on coronavirus misinformation


Company: cnbc, Activity: cnbc, Date: 2020-02-05  Authors: berkeley lovelace jr william feuer, berkeley lovelace jr, william feuer
Keywords: news, cnbc, companies, economic, uncertainty, media, updates, coronavirus, health, singapore, infant, cases, global, stores, fuels, reported, china, research, live, outbreak, virus, ecb


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post