US and European stocks are at record levels, but analysts at Goldman Sachs have cautioned the risk of a correction in equity markets is “high” as the impact of the coronavirus on earnings is being underestimated by investors.
Federal Reserve policymakers discussed maintaining the Fed’s policy rate at 1.5 to 1.75 per cent “for a time” at their meeting at the end of January, to support both a recovery in business investment and a labour market with room still left to improve.
Macy’s credit rating was cut to junk status at S&P Global Ratings, two weeks after it unveiled a $1.5bn cost-cutting plan amid pressure to adapt to declining mall traffic and consumers’ growing appetite for online shopping.
The world’s biggest retailer Walmart has reported a drop in profits and a sharp slowdown in US revenue growth after sales of toys, computer games and clothing were unexpectedly weak in the run-up to Christmas.
InterContinental Hotels Group, the owner of Crowne Plaza and Holiday Inn, has continued to ink deals with franchisees in China despite the coronavirus outbreak closing thousands of hotels across the country.
Investor sentiment in Germany dropped sharply in February as the effects of the coronavirus outbreak weighed on exporters, a survey revealed, adding to an increasingly gloomy picture for Europe’s biggest economy.
Wage growth in the UK dipped to its slowest rate in more than a year at the end of 2019 but the labour market remained resilient, with a new record high employment rate despite the economy’s stagnation.
The new chief executive of BHP said he wanted to expand in the commodities that would be needed in the shift to a low-carbon economy and was prepared to sell its thermal coal assets at the right price.
French high-speed rail maker Alstom has agreed to buy Canadian Bombardier’s train unit in a deal worth close to €7.5bn, as it looks to bulk up in the face of rising Chinese competition and growing demand in Europe.
Jupiter Fund Management’s chief executive Andrew Formica has launched a defence of stock picking even after the fund management group agreed to buy a rival that has lost a third of its value in the past two years.
Despite a holiday-shortened week in the US, investors have a busy calendar ahead with remarks from Federal Reserve policymakers, the release of Fed minutes, elections in Iran and negotiations over the European Union’s budget.