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During the California gold rush, many miners went bankrupt. Most investors recognize that the gold rush is on in 5G and artificial intelligence. The picks and shovels for the present-day gold rushes are semiconductors.
(MSFT)(INTC) and (AAPL) among the biggest stocks in the S&P 500 index, have well outpaced the market benchmark in the past 12 months. “MIA” stocks is an apt term, given the trio has been underweighted by fundamentally-driven large-cap portfolio managers, according to Harvey. “Ironically, some [portfolio managers] admit they have not gone ‘up-cap’ in order to avoid looking like an index fund (painful mistake!),” he wrote.
Facebook Inc. is the latest tech company to pull the plug on an event because of COVID-19. "Our priority is the health and safety of our teams, so out of an abundance of caution, we cancelled our Global Marketing Summit due to evolving public health risks related to coronavirus," a Facebook spokesman said in an email to MarketWatch late Friday. The marketing summit was to take place this week in San Francisco. Previously, Facebook dropped out of Mobile World Congress, one of the largest and best-known telecommunications conferences in the world, for the same reason, leading to the show's cancellation. Among other companies to drop out of MWC out of health concerns were AT&T Inc. , Intel Corp. , Sony Corp. , and Amazon.com Inc. [s:AMZN]. Late Friday, International Business Machines Corp. said it was skipping the RSA security conference in San Francisco later this month because of COVID-19.
Intel (NASDAQ:INTC) has seen its value drop precipitously on several occasions over the past two years. In the summer of 2018, it began a steep decline that lasted well into the fall. Last April, Intel stock dropped 25% in little over a month. However, since then, the stock has been on a tear.Source: Pavel Kapysh / Shutterstock.com It's up 50% since last August. Now trading at $67.46, it has posted a gain of nearly 13% so far in 2020 alone -- helped by a big Q4 earnings beat in January.The question is, will Intel continue to shine in 2020? Or is it due for another one of those big corrections? Here are four factors that have the potential to trip up the company's current run.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Advanced Micro DevicesAdvanced Micro Devices (NASDAQ:AMD) has been a thorn in Intel's side for the past several years. AMD has been cutting into Intel's marketshare in desktop computer PCs.At CES it unveiled new Ryzen mobile processors that seriously outperform Intel's offerings, and announced that over 100 laptops are already signed up to ship with "AMD Inside" in 2020. AMD has also launched an assault on Intel's data center business.Last fall, the company announced second generation Epyc processors that are now being used in data centers by high profile clients, including Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) and Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google. AppleThe last big drop in Intel stock was last April, and it kicked off shortly after news that Apple (NASDAQ:AAPL) was dumping Intel modems in the iPhone in favor of a return to Qualcomm (NASDAQ:QCOM).Rumors have been growing that Apple is planning to dump Intel processors in its MacBooks this fall in favor of its own ARM-designed chips. If that happens, it would be another Apple-induced blow to Intel. If Apple is successful, it could also tempt other PC manufacturers to follow suit. ChinaIntel sees 24% of its revenue generated by the Chinese market. Because of that exposure, it's one of the American chipmakers that saw its stock hit by the launch of the trade war between the U.S. and China in 2018.The company has also benefited from the thawing of trade relations between the two countries, especially since the fall of 2019, when a Phase One trade deal was first announced. However, if the trade war should heat up again, Intel is exposed. Another risk is China's slowing economy, with growth recently nearing a 30-year low. CoronavirusA wild card in the 2020 mix for Intel is the coronavirus from China. So far, it's having an impact on the Chinese economy, and there have been plant closures.Should the coronavirus breakout spread further in China, it could result in PC manufacturers closing factories and halting production, slowing demand for Intel chips. In the bigger picture, if the coronavirus turns into a worldwide epidemic, it could trigger a global recession. That would be bad news for virtually all stocks, including shares of Intel. Bottom Line on Intel StockInvestment analysts polled by The Wall Street Journal are taking a cautious line on Intel stock, giving it a consensus "hold" rating. Their median 12-month price target of $66.41 shows no confidence that Intel stock is going to continue its current gains through 2020. Among the 40 in the group, the highest price target is $85, which represents 26% upside. On the other side of the equation, InvestorPlace Markets Analyst Luke Lango has Intel in his list of Strong Value Stocks for 2020. He notes Intel's "combination of big growth exposure and dirt cheap valuation" will help it to out-perform.What will Intel's story end up being for 2020?AMD is a real threat, but other factors are conjecture at this point. If any of them end up coming into play, Intel could stumble. If they don't, Intel stock could very well continue its growth streak and perform well in 2020. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post 4 Reasons Why the Rally In Intel Stock Might Slow Down appeared first on InvestorPlace.
After weathering the chip slump, STMicroelectronics (NYSE:STM) is set up to be a leader in the Internet of Things.Source: Michael Vi / Shutterstock.com The Internet of Things combines sensors, analysis software and communications. It brings previously inanimate devices under computer control.Self-driving cars are the best-known IoT niche. STM lists Tesla (NASDAQ:TSLA) and Intel's (NASDAQ:INTC) Mobileye unit among its top 10 customers. But traffic lights, sewers, phone networks, and even biological processes, can be constantly monitored and controlled using STM microcontrollers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Exciting Stocks to Buy for Aggressive Investors A poor first half of 2019 at STM was followed by a strong second half. This sent the shares up 85% over the last six months. At its Feb. 14 opening price of $31.29 per share, STM has a market cap of $28.5 billion against revenues of about $9.5 billion. Its price to earnings ratio of 28 is close to that of Taiwan Semiconductor (NYSE:TSM). STM Business and EarningsA valuation like that of TSM makes sense because STM both designs and makes its own chips. Many are made using obscure processes like Fully Depleted Silicon on Insulator (FD-SOI), Radio Frequency Silicon on Insulator (RF-SOI) and Vertical Intelligent Power (VIPower).For its fourth quarter, announced in January, STM beat analyst estimates with earnings of $392 million, 43 cents per share fully diluted, and revenue of $2.75 billion. Management is projecting 2020 revenues of $12 billion and what it calls "solid, sustainable growth."Most people have never heard of STM because its brand name is hidden inside other companies' products. Its chips go into sub-assemblies, programmed to collect data and communicate it over fixed or variable distances. Still, the company claims about 18,500 patents and filed for 590 more last year.One example of what STM does is its new LoRA SOC. This enables long-range transmission of data for creating smart devices that are managed remotely. The company manufactures in both France and Italy, as well as Singapore, with assembly and testing facilities in Asia and Morocco. Waiting for the PunchI began writing about IoT technology in the early 2000s, calling it the "World of Always On." I now prefer to call it "the Machine Internet," and it's a focus for growth in the new decade. Growth has been slowed by a lack of standards, by questions of security, and by privacy worries. STM works, with groups like the Zigbee Alliance on standards aimed at making microcontroller communication invisible.Some of the technical hurdles are now being crossed and niches like self-driving cars are heating up. Analysts expect STM to earn $1.45 per share this year, compared with $1.14 per share last year. Zacks recently profiled it as "an incredible growth stock," because earnings estimates have been steadily rising. The Bottom LineThe biggest risks for STM stock right now would be a manufacturing slowdown caused by the coronavirus and growing international tension slowing trade.If that happens, bigger profits will be delayed, but only for a time. The productivity benefits from radio-controlled sensors are impossible to deny. STM also has over $2.7 billion in cash on the balance sheet to weather any storm, against long term debt of $1.9 billion. That's a strong capital position for a manufacturer.A big year for STM will also mean a big year for its customers, and thus for the global economy. Products that sense and manage their own condition can be fixed before they break. They're managed remotely and increase productivity.For people who grew up at the dawn of the computer age, what STM products allow may be indistinguishable from magic. But your grandkids take it for granted.Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of the environmental thriller Bridget O'Flynn and the Bear, available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this story. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Exciting Stocks to Buy for Aggressive Investors * 20 Stocks to Buy From the Law of Accelerating Returns * 7 U.S. Stocks to Buy on Coronavirus Weakness The post STMicroelectronics Waiting on the IoT appeared first on InvestorPlace.
[Editor's note: This story has been updated to include Johnson & Johnson and CVS Health Corp. It removes Crocs Inc. and Skechers USA.]The outbreak of China's coronavirus is a big deal. To date, it has infected over 40,000 people across the globe, and killed at least 1,100. Even if the disease stopped spreading today -- which it won't -- this outbreak will still go down as one of the most pervasive epidemics in modern world history.And yet, markets don't seem to care. U.S. stocks dropped big on Friday, Jan. 31, on coronavirus concerns. And that was it. Ever since, stocks have been in rally mode, with the S&P 500 cruising to fresh all-time highs in early February.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhy? Because, while the coronavirus outbreak is a big deal, it's also a short-term deal. Outbreaks happen all the time. They never last more than a few months. They hit, they spread, they peak, they go down and within a few months, they're gone. Their impact on the economy, while severe for a few months, is short-lived, and economic activity always rebounds sharply as soon as the virus disappears.It also helps that: 1) the Wuhan coronavirus isn't as deadly as other viruses with a mere 2% fatality rate (SARS, by comparison, had a 10% fatality rate), 2) it's largely contained to China, 3) significant progress has been made on a potential treatment or cure, and 4) in response to the virus outbreak, China has injected tons of fiscal stimuli and halved tariffs on U.S. goods.Consequently, when it comes to the coronavirus, you have a short-term problem. The best investment game-plan is to buy the short-term weakness in long-term winners, not to chase short-term strength in short-term winners.As Clinical Professor of Finance David Kass at the University of Maryland's Robert H. Smith School of Business wrote in an email to InvestorPlace:"The worldwide fear of the coronavirus is likely to result in the outperformance of health stocks in the near future … [but] biotech stocks trying to develop a vaccine for this virus … have already had large stocks moves to the upside. Instead of those highly visible potential beneficiaries of the spreading of this disease, I suggest looking elsewhere within the healthcare sector."I already picked some Chinese stocks to buy once coronavirus fears fade. Now, I'm picking seven U.S. stocks to buy on coronavirus weakness. * 20 Stocks to Buy From the Law of Accelerating Returns Without further ado, let's take a look at those names. Stocks to Buy: Apple (AAPL)Source: View Apart / Shutterstock.com Global technology giant Apple (NASDAQ:AAPL) has been hit hard from multiple angles thanks to the coronavirus outbreak in China. First, the company closed all corporate offices, stores and contact centers in mainland China until Feb. 9. Second, many of Apple's suppliers have been ordered to reduce or altogether halt production until Feb. 10. Third, thanks to the production pause, Apple's AirPods may have a supply shortage for the new few weeks.None of that is great news, especially since China is a big part of the Apple growth narrative. As such, it should be no surprise that Apple stock dropped 5% Jan. 31 on coronavirus fears.But, Apple will be just fine. This is true for a few reasons. First, the App Store will get a big boost during the outbreak (there are hundreds of millions of Chinese consumers stuck at home, desperate for ways to entertain themselves). Second, February typically isn't a big month for iPhone sales. Third, because an iPhone is a big-ticket purchase, any lost demand during February won't forever disappear -- it will just shift into March or April. Fourth, Apple's big iPhone launch comes in the back half of 2020. By then, the outbreak should be old news.All in all, Apple will weather the coronavirus storm just fine, and the company is still staring at huge growth potential in the back half of the year. Nike (NKE)Source: Square Box Photos / Shutterstock.com Shares of global athletic apparel giant Nike (NYSE:NKE) dropped about 8% in late January on concerns that the coronavirus outbreak could materially impact the company's operations in China.Those concerns were confirmed in early February, when management said in a press release that they expect the outbreak to have a "material impact" on operations in China. The company said it has shut down about half of its stores in China. Those that remain open are operating at reduced hours with lower-than-usual traffic volumes.That's not great news for Nike. A slowdown in this big and hyper-growth segment will have ripple effects across Nike's entire business. * 7 Large-Cap Stocks to Buy For Insulation From Volatility But, this negative impact will be short-lived. During the SARS epidemic, retail sales in China slowed during the outbreak, but as soon as the outbreak cleared up, retail sales trends came roaring back to life in a hurry. The same thing should happen this time around, especially since the People's Bank of China (PBOC) has injected stimulus packages and tariffs on U.S. goods have been halved. Thus, once the outbreak ends, retail sales in China will accelerate meaningfully, and Nike's China business will get back to firing on all cylinders. Advanced Micro Devices (AMD)Source: Joseph GTK / Shutterstock.com In the last week of January, shares of red-hot chip maker Advanced Micro Devices (NASDAQ:AMD) dropped about 10% amid concerns that the coronavirus outbreak would dampen chip demand in China. To make matters worse, AMD reported mixed fourth-quarter numbers in late January that included a light first-quarter revenue guide.But, these concerns seem overstated.As I've written before, global epidemics historically tend not to have an impact on the semiconductor market. SARS didn't hit the semiconductor market in 2002. On the contrary, global semiconductor sales actually rose during the SARS outbreak. Similarly, during the H7N9 outbreak in the 2010s, global semiconductor sales rose.The same thing should happen this time, especially since U.S-China trade tensions are easing while central banks through Asia are rushing to inject stimulus packages and support their economies. Once this outbreak ends, corporate spending on things like semiconductor chips should roar higher. AMD's numbers will charge even higher, since this company remains the market share leader in critical verticals of the semiconductor market.Big picture -- coronavirus weakness in AMD stock is overstated. Over the next few months, the fundamentals underlying AMD will improve, not deteriorate. As they do, AMD stock will go higher, not lower. Johnson & Johnson (JNJ)Source: Raihana Asral / Shutterstock.com Professor Kass from the University of Maryland is bullish on healthcare stocks, with the rationale being that the coronavirus outbreak will create a multi-year tailwind for healthcare spending in the United States."… several stocks that are currently under the radar for this possible epidemic should do very well as healthcare spending in the years ahead is likely to increase substantially," said Kass.One of his top stock picks in the healthcare industry is Johnson & Johnson (NYSE:JNJ), and I agree that the coronavirus outbreak will create a long-term tailwind for Jonson & Johnson stock.The thinking is pretty simple. Johnson & Johnson sells a variety of everyday healthcare products to U.S. consumers. While U.S. consumers at large weren't directly impacted by the coronavirus, they were indirectly impacted through a elevated sense of personal health caution. This elevated sense of caution will inevitably result in consumers spending more on things like hand-wash, wipes, sanitizers, disinfectants, etc.Johnson & Johnson sells a lot of that stuff. Consequently, demand for Johnson & Johnson products should rise over the next few years as consumers become for health-conscious. "[Johnson & Johnson] is likely to continue experiencing rapid growth in revenues and earnings in the foreseeable future," says Professor Kass. * 7 Low-Volatility Stocks to Buy In Jittery Times I couldn't agree more. And this sustained revenue and earnings growth lays a foundation for Johnson & Johnson stock to head higher. Intel (INTC)Source: JHVEPhoto / Shutterstock.com The bull thesis on global semiconductor giant Intel (NASDAQ:INTC) is very similar to the bull thesis on Advanced Micro Devices.Specifically, Intel stock dropped about 8% in late January on fears that the coronavirus outbreak in China would dampen global semiconductor demand. But, historically speaking, Chinese-originated global epidemics don't have a meaningful impact on global semiconductor demand. On the contrary, global semiconductor sales rose in 2002-03 amid the SARS outbreak, and in the 2010s amid the H7N9 outbreak.Meanwhile, Intel just reported a blowout fourth-quarter earnings report and delivered a robust first-quarter guide, the sum of which imply that demand in the company's core data-centric markets is rebounding, not falling.It will take more than a short-term epidemic in China to derail these rebounding demand trends. Plus, once the epidemic fades, these data-centric demand trends will actually accelerate higher, because of stimulus from Asian central banks as well as accelerated U.S.-China trade war deescalation.Broadly, then, the most likely path forward for Intel stock in 2020 is higher, not lower. Starbucks (SBUX)Source: Grand Warszawski / Shutterstock.com Much like Nike, global coffee house operator Starbucks (NASDAQ:SBUX) has been forced to close about half of its cafes in China, with an unclear timeline as to when those stores will re-open. Also, echoing what management at Nike said, Starbucks management said that they expect the outbreak to have a "materially" negative impact on current quarter and full-year numbers.In response to that news, Starbucks stock has shed about 10% off its mid-January highs.But, while China remains a very important piece of the Starbucks growth narrative, the country accounts for only about 10% of Starbucks' total revenue. So, the negative impacts won't be that big. Further, they will be ephemeral. They won't have any impact on the long-term growth narrative, which is centered around increasing coffee consumption, urbanization and a rising middle class in China.If anything, tons of fiscal stimulus from the PBOC will only accelerate those longer-term trends once the outbreak passes. * 7 Stocks to Buy for February Contrarians As such, if Starbucks stock keeps dropping on coronavirus fears, that weakness will ultimately be nothing more than a good buying opportunity into a long-term winner. Estee Lauder (EL)Source: Ken Wolter / Shutterstock.com One of the companies hit hardest by the coronavirus outbreak in China has been multinational beauty care giant Estee Lauder (NYSE:EL), who derives a whopping 17% of its sales from China.Thanks to the broad exposure, Credit Suisse estimates that Estee Lauder could see 3% to 5% decrease in earnings per share this quarter. This profit risk is why Estee Lauder stock dropped more than 10% in the wake of the coronavirus outbreak.But, Estee Lauder just reported fourth-quarter numbers. They were quite good, beating on both the top and bottom lines. And, while management said that retail store closures, reduced retail hours, lower store traffic volumes and travel restrictions will weigh on near-term operating results, management also sounded confident in their ability to weather the storm and mitigate adverse impacts.Specifically, instead of running away from China, Estee Lauder is doubling down on China. It is going to up research and development spending. It is going to build a new innovation center, launch new fragrance products this year and continue to build-out the online channel.Management's confident tone breathed life back into bulls. Estee Lauder stock rallied after the print. And, it appears that so long as the coronavirus outbreak doesn't get worse from here, this stock is on course to rebound over the next few months. CVS Health (CVS)Source: Roman Tiraspolsky / Shutterstock.com Another healthcare stock which Professor Kass is bullish on in the near-term is CVS Health (NYSE:CVS):"As the nation's foremost integrated health-care services provider, its revenues and profits are projected to grow at a rapid rate in the years ahead."I agree with Professor Kass. CVS is positioned for big revenue and profit growth over the next few years, and big gains in CVS stock will follow suit.The bull thesis here really breaks down into two parts. First, CVS has figured out how to differentiate itself in the pharmacy retail game with its new HealthHUBs, which are essentially CVS stores that include personalized healthcare stations. These HealthHUBs are turning CVS stores into one-stop-shops for all things pharmacy retail. Consumers are resonating with this value prop. Largely thanks to further expansion of HealthHUBs, CVS just reported yet another double beat earnings report. Continued expansion of HealthHUBs will lead to more double beat reports in the years ahead. * 10 Strong Lottery Ticket Stocks That Could Soar in 2020 Second, heightened U.S. consumer anxiety regarding the coronavirus outbreak -- which has run concurrent to a really bad flu season in America -- will lead to increased consumer spend on everyday healthcare products. CVS sells all of those products. Consequently, as consumers up their spend on everyday healthcare products over the next few quarters, traffic and revenue trends at CVS should pick up.As of this writing, Luke Lango was long AAPL. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Utility Stocks to Buy That Offer Juicy Dividends * 10 Gold and Silver Stocks to Profit Off 2020's Fear Trade * 3 Top Companies That Should Be More Careful With Your Data The post 7 U.S. Stocks to Buy on Coronavirus Weakness appeared first on InvestorPlace.
U.S. stock index futures rose on Friday, lifted by a handful of positive earnings reports, while investors kept a close watch on retail sales data and assessed the economic fallout of the coronavirus outbreak. Nvidia Corp jumped 6.4% in premarket trading as it forecast first-quarter revenue that topped analysts' expectations, reinforcing expectations of a rebound in chip demand. Shares of rival Intel Corp rose 0.6%, while Advanced Micro Devices Inc gained 1.6%.
Golden 1 Center will host the NBA’s first research-and-design site, through a partnership between Intel Corp. and the Sacramento Kings.
(Bloomberg) -- The wireless industry scrapped its biggest annual showcase after the coronavirus outbreak sparked an exodus of participants, roiling telecom companies just as they’re preparing to roll out new 5G services.It’s the first time in MWC Barcelona’s 33-year history that organizers have called off the event, which draws more than 100,000 participants from across the world to check out the latest innovations, pitch to investors and do deals.“The global concern regarding the coronavirus outbreak, travel concern and other circumstances, make it impossible” to hold the event, John Hoffman, chief executive officer of conference organizer GSMA, said in a statement to Bloomberg News.The list of big-name attendees started to crumble on Feb. 7, when Swedish wireless equipment maker Ericsson AB pulled out, saying it couldn’t ensure the safety of staff and customers. As others pulled the plug -- from Sony Corp. to Nokia Oyj, Vodafone Group Plc and Deutsche Telekom AG -- it became harder for those remaining to justify their presence.Bloomberg News reported earlier that GSMA could announce the cancellation as soon as Wednesday, after a meeting of members. As of Tuesday, the death toll in China from the virus rose to 1,113, and confirmed cases on the mainland have reached 44,653.MWC was due to run from Feb. 24 to Feb. 27. GSMA had stepped up sanitary precautions to reassure visitors -- advising against handshakes, introducing body temperature scanners and a protocol for changing microphones, and restricting entry to recent arrivals from China. Some delegations had replaced Chinese staff with colleagues from other countries or sent their China representatives ahead of time to avoid being barred.Who’ll Pay?Every year, telecom heavyweights use MWC and the oceans of publicity that come with it to generate marketing buzz around their latest wares. A big focus this year was going to be fifth-generation mobile services, and now several companies will need to reschedule launch events. Chipmaking giant Intel had planned to announce products for 5G networks and will hold an unveiling another time, according to a person familiar with its plans. Motorola was gearing up to showcase new 5G phones.The smartphone industry is trying to fire up stalled growth with the promise of higher data speeds and faster responsiveness. Smartphone shipments have been declining since 2016.The decision to scrap MWC entirely was a difficult one, and it’s not clear who will shoulder the costs -- the participants or GSMA. The industry’s biggest players often spend tens of millions of dollars to exhibit at the show. Ericsson’s absence alone left a gap bigger than a standard American football field in the conference halls.GSMA funds much of its budget from the event, charging 799 euros ($872) for a basic admissions pass.BarcelonaMWC is also important to the city of Barcelona, Spain’s second-largest city, as well as to many of the smaller companies that wouldn’t otherwise have access to such a large audience of mobile carriers and consumers. Large national contingents from Turkey to South Korea take to the show to encourage deal-making and inward investment.The regional government of Catalonia had been in touch with the conference organizers and said it saw no need to cancel events like MWC, Alba Verges, head of the Catalan government health department, said at a press conference in Barcelona.South Korea’s LG Electronics Inc. was among the first to rethink its participation, pointing out last week that most health experts had advised against “needlessly” exposing hundreds of employees to international travel.The global spread of the coronavirus has decimated other conferences, like Singapore’s annual airshow, which lost scores of corporate attendees but went ahead as planned on a smaller scale. Formula One confirmed it is postponing this year’s Chinese Grand Prix racing event due to the coronavirus outbreak, the Liberty Media Corp.-owned firm said in a Twitter post on Wednesday.(Updates with information on abandoned product launches by Intel and Motorola in seventh paragraph.)\--With assistance from Thomas Seal, Niveditha Ravi, Saritha Rai, Debby Wu, Ian King, Gao Yuan, Mark Gurman, Scott Moritz, Rodrigo Orihuela, Angelina Rascouet and Loni Prinsloo.To contact the reporter on this story: Nate Lanxon in London at email@example.comTo contact the editors responsible for this story: Tom Giles at firstname.lastname@example.org, Rob GolumFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Applied Materials Inc. gave a bullish sales forecast for the current quarter suggesting its chipmaker customers have returned to spending more on their factories.The Santa Clara, California-based company is the largest maker of machinery used in the manufacture of semiconductors, which are among the most important parts of the electronics supply chain. Its customers include Samsung Electronics Co., Intel Corp. and Taiwan Semiconductor Manufacturing Co. That makes Applied Materials’ results and forecasts important early indicators of future demand in the electronics industry.Key InsightsFiscal second-quarter sales will be $4.34 billion, plus or minus $200 million, Applied Materials said Wednesday in a statement. That compares with analysts’ average estimate of $4 billion, according to data compiled by Bloomberg.Adjusted earnings will be 98 cents a share to $1.10 a share in the period ending in April, the company said. Analysts projected 92 cents.“We believe we can deliver strong double-digit growth in our semiconductor business this year as our unique solutions accelerate our customers’ success in the AI-Big Data era,” Chief Executive Officer Gary Dickerson said in the statement.Chip-equipment makers often experience wild earnings swings. Machines cost tens of millions of dollars each. Delaying factory build outs is one of the fastest ways a chipmaker can preserve cash when they’re unsure of future demand.Net income was $892 million, or 96 cents a share, in the fiscal first quarter, compared with $771 million, or 80 cents a share, a year earlier.Revenue gained 11% to $4.16 billion in the period ended Jan. 26, making it the first quarter of year-over-year growth in five quarters. Analysts were looking for $4.11 billion.Stock ReactionShares rose about 1% in extended trading after the announcement. The stock closed at $65.37 in New York and has increased 60% over the last 12 months.More InformationFor more details, click here.To see the statement, click here.To contact the reporter on this story: Ian King in San Francisco at email@example.comTo contact the editors responsible for this story: Alistair Barr at firstname.lastname@example.org, Andrew PollackFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Achmad Zaky spoke with unusual candor after taking the stage in Jakarta that October afternoon. People stopped chattering and lowered their phones when he began recounting the decade he spent building one of Indonesia’s most successful startups. What none of the hundreds in the cavernous hall knew then: it was his last big public act as chief executive of Bukalapak.com.Unbeknownst to the crowd, the 33-year-old self-taught computer whiz was on his way out. After a series of failed experiments and missteps -- including an abortive attempt to go toe-to-toe with Alibaba-backed rivals -- Zaky had lost his board’s confidence that he could lead a vastly expanded company into its next phase of growth. Just months away from ceding the reins of the $2.5 billion e-commerce outfit he built from the ground up, he spent much of the speech reflecting on his decade-long stewardship.“I’m not smarter than you. My success rate is maybe 10%,” he told the now-silent audience. “Back then, I was an engineer focusing on the product,” he added. As the company grew, “I was thinking I have to be a leader.”Yet some of his backers had doubts Zaky was the right person to lead Bukalapak given its current complexity, people familiar with the matter said. That may surprise industry observers for whom Zaky’s name had become synonymous with Indonesian e-commerce. He acquired something akin to folk hero status because, unlike many fellow founders, the self-effacing executive from a Java village made it big without Ivy League degrees or billions from the likes of SoftBank Group Corp.His departure in January sent a signal to Southeast Asia’s largest startups, which unlike Silicon Valley remains largely founder-driven. From Grab’s Anthony Tan and Tan Hooi Ling to Tokopedia’s William Tanuwijaya, they rode a funding boom fueled by a mobile explosion to create some of the world’s largest tech startups. But they also burned enormous amounts of cash in pursuit of growth. Now that economic uncertainty is squeezing funding and WeWork’s epitomized the perils of placing expansion above profitability, the time has come for corporate mavens to take the reins, some argue.“It’s the coming-of-age” of Southeast Asia’s tech scene, said Paul Santos, managing partner at Singapore’s Wavemaker Partners. “It’s the end of an era of unbridled ambition and hopefully the beginning of a period of sustainable growth.”Read more: Indonesia’s Newest Unicorn Now Wants to Take on the Big BoysZaky is only the second founder-CEO to leave a Southeast Asian unicorn, following Gojek’s Nadiem Makarim, who became Indonesia’s education minister. While the former’s departure seemed sudden, it was the culmination of a gradual separation, the people said, asking not to be identified discussing internal matters.Some of Zaky’s decisions rankled investors. Bukalapak -- which means “open a stall” -- succeeded by becoming the go-to bazaar for shoppers seeking bargains. But a few years ago, in his zeal to bring more mom-and-pop stores into the network, Zaky pushed too hard for ever-lower prices, disrupting market pricing and upsetting some consumer brands, they said.Later, as Bukalapak expanded, Zaky grew ambitious and tried to take on rivals like SoftBank-backed Tokopedia and Alibaba Group Holding Ltd.’s Lazada by flogging pricier goods. Bukalapak backtracked when it realized it was getting too far away from its roots. Then in 2019, he incensed followers of popular Indonesian President Joko Widodo after tweeting that the government was spending too little on R&D and suggested a new leader might beef up the budget: UninstallBukalapak becoming a trending topic on Twitter.Discussions about a changing of the guard began long before that. Zaky had talked with his board about wanting to pursue his passion of helping young entrepreneurs. But that coincided with increasing pressure for the startup to turn a profit, one reason why it announced 10% job cuts. Directors felt that, while Zaky had been instrumental in Bukalapak’s early days, the company had outgrown him and proposed bringing on an experienced executive. In December, the board appointed a successor in Rachmat Kaimuddin, a former director of finance and planning at PT Bank Bukopin that Zaky himself and a co-founder recommended.“As startup capital raising and profitability come under pressure, we should expect to see more CEO exits. Not just for under-performance, but for other reasons that were ignored under hyper-growth,” said Suresh Shankar, founder and CEO of Singapore-based Crayon Data. “Travis-like (behavioral), Adam-like (financial engineering) or Moonves (CBS, alleged sexual misbehavior) exits will become more common. Sometimes one of these causes or the other will be used as the excuse, to make company under-performance seem more palatable.”Unlike Uber’s Travis Kalanick, Adam Neumann of WeWork or CBS’s Leslie Moonves (who denied allegations of impropriety), Zaky leaves Bukalapak with his reputation largely intact. He will remain an adviser to Bukalapak while chairing his own foundation to support startups.Read more: Indonesia’s Newest Startup Unicorn Taps Mom-and-Pop StoresBorn in central Java in 1986 to school teachers, Zaky got his first PC (an Intel 486) from his uncle at the age of 10 -- the only one in his village. By the time he got to high school, he was competing in national competitions, and eventually enrolled in the prestigious Bandung Institute of Technology. There, he met Nugroho Herucahyono, with whom he started Bukalapak in his dorm room. College friend Fajrin Rasyid left Boston Consulting Group to join them in 2011.By the end of the first year, they’d run out of money and considered throwing in the towel. Then a chance meeting with Japanese venture capitalist Takeshi Ebihara revived the startup (Zaky tagged along with a friend to a meeting.) To his surprise, Ebihara offered to invest in Bukalapak. He also provided early guidance to the founding team.One of the lessons was the importance of control. Zaky was cautious about raising too much money to avoid dilution. While Tokopedia and Grab raised billions, Bukalapak raised less than $500 million from investors including PT Elang Mahkota Teknologi, better known as Emtek, Singaporean sovereign fund GIC Pte and Jack Ma’s Ant Financial.“I want to make sure I have a large stake, like Mark Zuckerberg,” Zaky said in an interview in 2016 at Bukalapak’s offices in Jakarta, decorated with replicas of bird cages to convey the Asian bazaar aesthetic and slogans like “Get Sh*t Done.”Read more: Southeast Asia’s Internet Economy to Top $100 Billion This YearZaky’s and Makarim’s exits now presage a trend. “‘It’s not about you’,” Makarim wrote in his farewell email.In his own parting memo, Zaky counted professionalizing his company among his achievements. He recounted an incident in its early days when the website went down for days and no one was bothered. By mid-2019, when the company had 2 million mom-and-pop store partners and agents and more than 70 million active users, Bukalapak had executives to run finance, strategy and operations.“I remember our early years when our management style was still ‘dormitory’ style,” he wrote. “Over time, our management has become more modern.”\--With assistance from Harry Suhartono.To contact the reporter on this story: Yoolim Lee in Singapore at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Edwin ChanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Mobile World Congress, one of the largest and best-known smartphone conferences, has been canceled out of fears over the coronavirus. John Hoffman, chief executive of show organizer GSMA, said in an email that the outbreak has made it "impossible" to hold the event. Show organizers had begged the host city of Barcelona to pull the plug on the show later this month after at least a dozen tech companies dropped out of the show. AT&T Inc. , Intel Corp. , Nvidia Corp. , Facebook Inc. , Cisco Systems Inc. , Telefon AB L.M. Ericsson , LG Electronics Inc. [s:KR: 066570], Sony Corp. , and Amazon.com Inc. were among those who bowed out. "Due to the outbreak and continued concerns about novel coronavirus, Amazon will withdraw from exhibiting and participating in Mobile World Congress 2020," an Amazon spokesperson told MarketWatch on Monday.
Outsized stock price gains for Apple Inc and Microsoft Corp mean the two tech titans' shares have attained unusual status: a combined weight of 10% of the benchmark S&P 500 index. The S&P 500, which many use a proxy for the overall market, is a market-cap weighted index, meaning that large stocks carry more influence. The last time a year ended with two stocks amounting to at least one-tenth of the S&P 500 was 1982, according to data from Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, when IBM and AT&T amounted to about 10.9% of the index.
Micron Technology Inc. shares were up 5.5% in Wednesday morning trading after UBS analyst Timothy Arcuri upgraded the stock to buy from neutral and raised his price target to $75 from $47. "After only modestly outperforming the S&P 500 over the past two years, we believe the time has finally come when Micron can materially outperform over a sustained period of time," he wrote. "We consider both the cyclical and structural aspects to both Micron and the memory industry as a whole and conclude that Micron is in a much stronger position in a structurally better industry on the cusp of a cyclical upswing that, for DRAM, should last deep into C2021." He also said that he believes Micron's stock warrants a higher multiple since the company's competitive position is getting better and its "through-cycle financial performance...is comparable to or even better than other major semis peers with integrated manufacturing models like Intel or Texas Instruments ." Micron shares have added 29% over the past three months as the S&P has risen 9.2% and the PHLX Semiconductor Index has gained 12.9%.
(Bloomberg) -- While tech giants are canceling plans to attend Barcelona’s Mobile World Congress this month, smaller firms don’t see it as an option.The show, which draws more than 100,000 attendees from around the world, is a critical meeting place for founders looking to attract new investors or cement manufacturing deals. Big name dropouts from the conference this year are stacking up: Facebook Inc. and Cisco Systems Inc. on Tuesday joined Intel Corp., MediaTek Inc., Ericsson AB, Sony Corp. and others in saying they’d canceled plans to attend the show.U.K.-based FX Technology, which sells a smartphone with a slide-out physical keyboard, was relying on MWC to help it win publicity after recent news that BlackBerry-branded devices may no longer be manufactured.“We’re also fundraising so it’s important to meet potential investors and distributors,” said Adrian Li Mow Ching, co-founder of FX Technology. “We’re making every effort to go still.”Read More: Top Mobile Conference Nears Cancellation Due to CoronavirusUnlike their smaller rivals, larger exhibitors are aided by their ability to generate their own news away from MWC. Samsung Electronics Co. unveiled its new flagship phones at simultaneous events in San Francisco and London this week, well ahead of the Barcelona gathering.Some, including Sony, said instead they’ll launch their latest products via internet livestreams. Video-calling potential investors or distributors remains “our contingency plan,” Ching said.Robert Vis, chief executive officer of enterprise communications startup MessageBird, said MWC is “super important” as networking at the show “fundamentally drives our business.”The Amsterdam-based company competes with the likes of Twilio Inc., helping firms chat with customers via messaging apps, SMS and calls. To make this happen, Vis said MessageBird needs to forge and maintain thousands of relationships with businesses, software companies and mobile carriers.“I founded the company in 2011 and we used to go with three people and run 20 meetings a day,” he said. This year he’d expected to take 40 people and hold about 500 meetings, before deciding Wednesday to pull out.“We’re a 200 million-euro ($218 million) business and this is the event of the year from a carrier perspective,” he said. “But we just don’t want to take any risk in terms of our employee safety.”The GSMA, which organizes MWC, confirmed as recently as Wednesday that the event is still going ahead.If it doesn’t, there are travel, accommodation, exhibition booths and entertainment costs deep-pocketed tech companies can afford to absorb in ways startups can’t always.MessageBird’s booth costs about 750,000 euros, in addition to travel and accommodation. But, Vis said, employee safety was more important than the numbers.Less CompetitionEven before the virus scare, big companies globally have begun looking for ways to generate buzz for their products without hitting the conference circuit.Sony, the world’s biggest console maker, skipped last year’s E3 video-game conference for the first time in almost a quarter-century. It said at the time it would focus on “exploring new and familiar ways to engage our community” instead.IDC analyst Raquel de Condado Marques said that large companies, such as Samsung Electronics Co., could ultimately benefit if MWC was halted.“Smaller vendors that were planning to launch their phones at MWC were counting on the visibility they could earn,” she said. “Therefore, Samsung will benefit from the fact that some of its competitors will lose the spotlight that MWC could potentially cast on them.”ShowStoppers, a popular companion event to MWC and other tech conferences, such as the annual Consumer Electronics Show in Las Vegas, gives smaller companies an opportunity to meet industry insiders and journalists at evening networking events.Many smaller companies take booths at these evening gatherings, which draw hundreds of industry insiders and journalists with promises of early access to cool tech from the main show, peppered with food, drinks and networking.On Tuesday, its organizer, Steve Leon, said the event was still planned to go ahead.“ShowStoppers continues to monitor news and will follow health and safety advisories from the World Health Organization, Spanish authorities, GSMA, airlines and other organizations, and the Chinese and other governments,” he wrote in an email to attendees.\--With assistance from Vlad Savov.To contact the reporter on this story: Nate Lanxon in London at email@example.comTo contact the editor responsible for this story: Giles Turner at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Intel Corp. has become the latest major technology company to bail on one of the biggest mobile conferences of the year amid concerns over the outbreak of the coronavirus. Spanish media has reported that organizers will meet Friday to decide whether or not to go ahead with the annual Barcelona, Spain event. A spokesperson from the GSMA, an industry organization that represents the mobile industry and is behind the event, said it does not comment on internal meetings.
Popular technology stocks are leading the U.S. stock market higher. A way to understand the strength in those tech stocks is segmented money flows, which are like an X-ray of stocks. About a month ago I wrote that something rare had just happened in popular tech stocks.
(Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.The death toll from the coronavirus exceeded 1,000. Hubei, the province at the center of the outbreak, reported its highest number of fatalities yet and removed top officials. The disease caused by the new coronavirus has been officially named Covid-19.A first group of Americans evacuated from China are scheduled to be released from quarantine, and the U.S. State Department will allow non-essential personnel in Hong Kong to depart. A top U.S. health official raised questions about ongoing concerns of cruise ships with infections.Beijing said regions less hit by the disease should accelerate a resumption of industrial output and authorized Airbus SE to restart operations in Tianjin. The U.S. Federal Reserve singled out the crisis as among risks threatening the U.S. and world economy.Bloomberg is tracking the outbreak on the terminal and online.Key DevelopmentsChina death toll at 1,016, up by 108; confirmed cases at 42,638Hong Kong PolyU develops rapid diagnostic systemWireless event hangs by a thread as virus deters more companiesCourier services disrupted, wreaking havoc on commodities tradersWhen coronavirus hits a ship, it’s too late to batten down the hatchesJ&J Says It Will Accelerate Vaccine Work (4:34 p.m. NY)Drugmaker Johnson & Johnson will accelerate work on its attempts to develop a vaccine for the new coronavirus, expanding a collaboration with the U.S. government’s Biomedical Advanced Research and Development Authority, the company said in a statement. Under the agreement, J&J and Barda will share some R&D expenses, and J&J will will work to expand production capabilities for a potential vaccine.U.S. Raises Travel Advisory for Hong Kong (3:20 p.m. NY)The U.S. State Department raised its travel advisory for Hong Kong to level 2, which means travelers should exercise increased caution.“The Hong Kong government has reported cases of the novel coronavirus in its special administrative region, has upgraded its response level to emergency, its highest response level, and is taking other steps to manage the novel coronavirus outbreak,” the department said.Last month, the U.S. raised the advisory for mainland China to level 4, the highest designation, which means do not travel.American Airlines Extends Flight Suspensions (1 p.m. NY)American Airlines Group Inc. on Tuesday extended the suspension of U.S. flights to Shanghai and Beijing and between Los Angeles and Hong Kong through April 24.The suspension is about a month longer than planned because of an ongoing decline in demand, said the airline. The carrier also said it won’t fly between Dallas-Fort Worth and Hong Kong until at least April 24, about two months longer than it originally expected, for the same reason.U.S. Health Official Raises Concerns About Cruise Ship (12:19 p.m. NY)A top U.S. health official said that quarantining large numbers of people on cruise ships to contain cases of the coronavirus may present issues.“The increased cases count is making authorities really look critically at what is the safest thing,” said Anne Schuchat, principal deputy director of the Centers for Disease Control and Prevention, during a press event Tuesday in Washington.Several cruise ships have been quarantined or turned away from ports because of concerns about infections on board. Some older cruise passengers can be at particular risk of complications from the virus.First Quarantined American Evacuees to Be Released (10:30 a.m. NY)A first group of Americans who were quarantined after being repatriated from the center of the outbreak in China are expected to be released Tuesday, Anne Schuchat, principal deputy director of the U.S. Centers for Disease Control and Prevention, said at a press conference Tuesday.Health workers are doing final checks to make sure none of the people are showing symptoms.The U.S. has been putting those evaluated from the outbreak into quarantines of at least 14 days, part of a broad set of measures to stop potential spread of the virus by returning Americans and their family members. A first group of about 200 Americans was repatriated last month, and the U.S. has been running quarantine centers at military bases.State Department to Let Some Hong Kong Staff Depart (10:25 a.m. NY)The U.S. State Department will let non-essential diplomats and their families based in Hong Kong leave if they want to, amid growing fears about the spread of the coronavirus there.Hong Kong consular staff and their families aren’t required to leave, a State Department spokesperson said Tuesday, speaking on condition of anonymity. The move is being taken out of an abundance of caution and the consulate will remain open, the person said. Nevertheless, the decision is likely to be closely reviewed by other countries and businesses as they plan how to gauge their response to the outbreak.The State Department move comes as the number of cases in Hong Kong continues to grow, with at least 49 confirmed infections and one death. The U.S. shut its consulate in Wuhan, China, the center of the outbreak, and has allowed diplomats and family members to leave other outposts in China if they wish.Disease Is Officially Named Covid-19, WHO Says (10:10 a.m. NY)The disease cause by the new coronavirus that emerged in Wuhan, China, has been officially named Covid-19, the World Health Organization said at a press conference Tuesday in Geneva.The pathogen itself has gone by the designation 2019-nCoV. WHO Director-General Tedros Adhanom Ghebreyesus said that naming the disease it causes was important, and that the group had been conscious about not picking a name that could be inaccurate or stigmatizing.Powell Says Risks to Outlook Remain as Fed Monitors Coronavirus (8:30 a.m. NY)Federal Reserve Chairman Jerome Powell said the bank is monitoring the fallout from the deadly outbreak, “which could lead to disruptions in China that spill over to the rest of the global economy.“Airbus to Restart Production in Tianjin (7:50 a.m. NY)European planemaker says it has been authorized by Chinese authorities to restart operations at its final-assembly line in Tianjin. The company said this will allow it to gradually increase production “while implementing all required health and safety measures for Airbus employees.”Airbus had said Wednesday the assembly line was closed following government advice. The Tianjin plant produces about six narrow-body aircraft per month, or about 10% of Airbus’s total narrow-body output.Under Armour, Moncler Warn on Coronavirus Impact (7:27 a.m. NY)Moncler, the Italian maker of down jackets, and Under Armour became the latest companies to feel the effects of the coronavirus, echoing comments from Canada Goose Holdings Inc. and Burberry Group Plc.Milan-based Moncler said it has taken “significant and urgent” measures to deal with the epidemic -- including postponing some projects and investments -- but warned it was difficult to forecast the effects on 2020 results.Under Armour said the virus would lead to $50 million to $60 million in lost sales in the first quarter of 2020 and warned of a larger impact beyond the period.H.K. PolyU Develops Rapid Diagnostic System (6:17 p.m. HK)The system can identify 30 to 40 pathogens including the novel coronavirus, severe acute respiratory syndrome and Middle East respiratory syndrome in one single test and in about an hour, the Hong Kong Polytechnic University said.China Lets Local Governments Sell More Debt Early (6:08 p.m. HK)China will allow local governments to sell another 848 billion yuan ($122 billion) of debt before March, as authorities seek to offset the economic shock of the coronavirus.The new quota includes 558 billion yuan of local government debt as well as 290 billion yuan of so-called special debt, according to a Ministry of Finance statement Tuesday. The latter is mainly used to finance local infrastructure projects like highways and health facilities.The second batch of early-approved local debt quota by the Chinese authorities indicates a strong government intention to accelerate the recovery of economic activity amid the coronavirus. We now see a higher chance of the overall fiscal deficit widening while more stimulus measures get launched to cushion the impact.\-- David Qu and Chang Shu, Bloomberg Economics; Click here to view the researchChina May Delay U.S. Farm Purchase Target (5:23 p.m. HK)The coronavirus outbreak may delay the implementation of U.S. farm good purchases as part of the phase one trade deal, but they will likely be fulfilled by the end of the year, according to China’s agriculture ministry outlook committee.Two Japan Evacuees Get Virus After First Testing Negative (5:12 p.m. HK)Two Japanese men who were evacuated from Wuhan late last month have tested positive for the novel coronavirus after initially being cleared of the deadly disease, the health ministry said.The cases bring total infections in Japan to 28, excluding 135 on a cruise ship under quarantine in Yokohama. Both men had tested negative on Jan. 30 after they returned from the Chinese city on a government-chartered flight.China Urges Farmers to Wear Masks While Planting (5:11 p.m. HK)China is asking its farmers to wear face masks to prevent the spread of the virus while urging them not to miss the spring planting season.The agriculture ministry issued a notice on Monday advising farmers to wash hands and wear masks, but still prepare for planting. It also asked local villages not to block roads to ensure the timely arrival and transport of seeds, pesticides and other farming equipment.Indonesia’s Jokowi Orders Spending Spree (4:50 p.m. HK)Indonesian President Joko Widodo has called for fiscal stimulus to be accelerated in a bid to shield Southeast Asia’s biggest economy from the coronavirus crisis.While Indonesia is yet to record a single case of the deadly virus, officials have become increasingly worried about the economic impact. China is Indonesia’s biggest trading partner and its top export destination.China Starts Handing Out ‘Force Majeure’ Slips (4:49 p.m. HK)Huida Manufacturing (Huzhou) Co. became one of the earliest known companies to obtain a “force majeure” certificate in China that may help it avoid penalties for breaching contractual obligations.The China Council for the Promotion of International Trade said it issued the certificate on Feb. 2. More companies have since received the document.China Pushes Big Companies to Meet Output Targets (4:15 p.m. HK)China is urging the nation’s biggest companies to meet production targets despite the challenges presented by the coronavirus epidemic, as firms begin to restart plants that have been idled for weeks.Regions that are less hit should accelerate the resumption of production, according to a nationally televised conference held by Ministry of Industry and Information Technology. The ministry said it was “very urgent” to resume industrial production and stabilize expectations.The impact to China’s economy from the coronavirus will be short-term and won’t derail its longer term improvement, CCTV reported Monday, citing President Xi Jinping. China will strengthen controls on economic operations and monitor employment to avoid large-scale layoffs, it said.Xi told local officials during a Feb. 3 meeting of the Politburo’s Standing Committee that efforts to contain the virus had gone too far and threatened its economy, Reuters reported Tuesday, citing unidentified people familiar with the meeting.Dalio Says Market Impact Is ‘Exaggerated’ (3:57 p.m. HK)Investor concerns over the pandemic “probably had a bit of an exaggerated effect on the pricing of assets because of the temporary nature of that, so I would expect more of a rebound,” Ray Dalio, the billionaire founder of Bridgewater Associates, said at a conference in Abu Dhabi. “It most likely will be something that in another year or two will be well beyond what everyone will be talking about.”Virus Likely Cost China’s Retail and Food Sectors Billions (3:54 p.m. HK)The outbreak of coronavirus may have cost China’s retail and food service sectors billions of dollars in sales during the Lunar New Year week, according to a leading food and agricultural bank.Revenue lost in both retail and food services during the Lunar New Year week could range from 20% to 80%, representing a fall of $31 billion to $124 billion, as major chains shuttered stores across the country, Rabobank said in a report.Chipmakers Skip Premier Mobile Show on Virus Fears (3:27 p.m. HK)Intel Corp. and MediaTek Inc. have pulled out of Mobile World Congress, joining a list of marquee names skipping the wireless industry’s biggest annual showcase because of concerns about the spread of the novel coronavirus.Fellow tech giants Ericsson AB, Sony Corp. and LG Electronics Inc. have already withdrawn from the conference scheduled to kick off in Barcelona’s Fira Gran Via on Feb. 24. The growing number of cancellations has called into question an event at which smartphone and networking companies from Huawei Technologies Co. to Samsung Electronics Co. show off their wares and launch new products.The GSMA, which organizes the gathering, said it’s going ahead irrespective of the cancellations, though it’s requiring attendees to prove they’ve not set foot in mainland China in the two weeks prior to showing up.China Stats Bureau to Survey Economic Impact (3:23 p.m. HK)China’s National Bureau of Statistics will conduct a special survey on the economy amid the coronavirus epidemic and analyze the outbreak’s impact, according to a statement. The bureau will use data from the survey to advise the government on the resumption of production as well as the success of coronavirus control efforts.South Korea Advises Avoiding Japan, Singapore (2:48 p.m. HK)South Korea’s health ministry advised citizens to minimize travel to countries with confirmed cases of novel coronavirus, including Singapore, Japan, Malaysia, Vietnam, Thailand and Taiwan, according to a ministry statement. South Korea will strengthen quarantine screening on entrants from Hong Kong and Macau.China Home Sales Plunge Due to Virus (1:29 p.m. HK)Home sales in China have been dealt a huge blow by the spreading coronavirus, with figures showing transactions plunged in the first week of February. New apartment sales dropped 90% from the same period of 2019, according to preliminary data on 36 cities compiled by China Merchants Securities Co. Sales of existing homes plummeted 91% in eight cities where data is available.CDC Confirms 13th Case in the U.S. (11:38 a.m. HK)The Centers for Disease Control and Prevention confirmed another case of coronavirus in California, bringing the number in the U.S. to 13.The latest patient is in San Diego, and was among citizens evacuated from Wuhan to the U.S. and under quarantine. The CDC said it is conducting an investigation to determine the patient’s contacts and assess if they had high risk exposure.Hong Kong Won’t Enact Mask Laws (11:12 a.m. HK)Hong Kong authorities have no plans to enact laws regulating the city’s supply of surgical masks, Chief Executive Carrie Lam told reporters at a weekly briefing.Lam has faced criticism from the public in recent days as a mask shortage sent people scrambling to form long lines at pharmacies, while residents distrustful of her administration after months of pro-democracy protests staged a run on toilet paper. She urged Hong Kongers to reduce their number of social interactions as the city works to ward off a wider outbreak.Lam said the government wasn’t calling for compulsory closures, “because Hong Kong is a free society” and business operators were already taking strong precautionary measures.Singapore Sees Up to 30% Drop in Tourism (10:32 a.m. HK)Singapore could see a 25% to 30% decline in tourist arrivals and spending this year because of the coronavirus outbreak, as the industry braces for a worse impact than the 2003 SARS pandemic, the city’s tourism chief said.The city-state is losing about 18,000 to 20,000 tourists a day, and the figures could plummet further if the situation persists for longer, Keith Tan, chief executive of Singapore Tourism Board, said in an interview with Bloomberg TV.China accounts for about 20% of Singapore’s tourism intake, the biggest source of visitors ahead of Indonesia and India. China’s ban on outbound tour groups and Singapore’s move to bar Chinese nationals from entering has led to an “evaporation” of a key source of revenue, Tan said.China’s Hubei Province Removes Top Health Officials (9:04 a.m. HK)China’s Hubei province at the center of the virus outbreak has removed health commission head Liu Yingzi and party chief Zhang Jin from their posts, state-run CCTV reported.Criticism has mounted over China’s transparency and speed in handling the epidemic. The government’s struggle to stem the outbreak has fueled concerns about President Xi Jinping’s efforts to centralize power since taking office, with officials pointing fingers over who’s to blame for the spread of the illness.The death last week of a 34-year-old doctor, Li Wenliang, who was sanctioned by local authorities after warning about the disease, unleashed a torrent of grief and anger on social media.Thailand Says Ship Won’t Be Allowed to Disembark (8:56 a.m. HK)Passengers from a ship that has been blocked from other ports due to virus concerns won’t be given permission to disembark in Thailand. The Westerdam cruise ship, operated by Carnival Corp.’s Holland America, has been refused entry by a number of nations over fears that passengers may be carrying the coronavirus.The ship departed Hong Kong on Feb. 1 with 1,455 passengers and 802 crew. It is set to arrive at a port near Bangkok on Thursday, and checks with health authorities indicate there is “no reason to believe there are any cases of coronavirus on board the ship,” Holland America said in a statement Monday.China Death Toll at 1,016 (8:17 a.m. HK)The death toll in China from the coronavirus rose to 1,016, with the addition of 108 fatalities for Feb. 10, according to the National Health Commission. Hubei, the province at the center of the outbreak, reported 103 more deaths, its highest daily count so far.While the total confirmed cases in mainland China climbed to 42,638, Hubei reported 2,097 new infections, the smallest daily increase since Feb. 1.Two additional deaths have occurred outside of mainland China: one in Hong Kong and the other in the Philippines.(An earlier update was corrected to clarify that new name is for the disease, not the virus, in the item from 10:10 a.m. NY time)\--With assistance from Isabel Reynolds, Dominic Lau, Simon Lee, Cecilia Yap, Josh Wingrove, Karen Leigh, Nicolas Parasie, Ainslie Chandler, Ian King, Stephen Tan, John Lauerman and Nick Wadhams.To contact Bloomberg News staff for this story: Michelle Fay Cortez in Minneapolis at email@example.com;Robert Langreth in New York at firstname.lastname@example.org;Li Liu in Beijing at email@example.com;Drew Armstrong in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rachel Chang at email@example.com, ;Drew Armstrong at firstname.lastname@example.org, Jeff Sutherland, Mark SchoifetFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.