New coronavirus strikes
Mystery illness spreads across China
As if trade war tensions and African Swine Fever weren’t enough, China is now grappling with a new SARS-like virus that is rapidly spreading across the country. A potential ‘black swan’ for its economy, the outbreak comes ahead of the Lunar New Year, which will see millions of Chinese citizens travel both domestically and abroad. The disease can be transmitted between humans and has now spread into Asia and beyond with the first confirmed case in the US. As countries begin implementing precautionary measures, the new virus could have far-reaching consequences across industries, from luxury retail and airlines to pharmaceuticals.
HS2 could cost £106bn
FT saw report
An unpublished official government review seen by the Financial Times said that there is “considerable risk” that the cost of the high-speed HS2 rail link could rise to £106bn – up by a fifth compared with the £81bn-£88bn range outlined in a report by HS2 chairman Allan Cook last September. According to the FT, the review said that “on balance” ministers should proceed with the railway project, albeit with “a number of qualifications”.
Gemfields to float
Aim listing
News has emerged that Gemfields Group intends to seek admission of its shares on London's junior market. The Johannesburg-listed gemstones supplier will not be raising capital as part of admission, but it is looking to effectively seek readmission in a bid to boost liquidity and attract more international investment. Gemfields left Aim in July 2017 after a takeover by former major shareholder Pallinghurst Resources. Pallinghurst changed its name to Gemfields Group in 2018.
Dixons muddles sales number
Corrected statement
Dixons Carphone (DC.) had to issue a replacement ‘peak’ trading statement hours after the document’s initial publication. Group sales had not, in fact, grown by 2 per cent; they had fallen by that amount instead. Dixons blamed a “clerical error”. UK and Ireland electricals saw 2 per cent like-for-like growth over the 10 weeks to 4 January, while international, the Nordics and Greece saw 3 per cent, 3 per cent and 6 per cent growth, respectively. UK and Ireland mobile like-for-like sales fell 9 per cent, albeit performance here was in line with expectations.
Intu to raise?
In talks with shareholders
Intu (INTU) has confirmed that it is in talks with shareholders and potential new investors over an equity raise alongside the release of its 2019 results at the end of February. The beleaguered shopping centre landlord said footfall was flat in the UK last year, compared with 2018, and 0.3 per cent ahead including Spain. Occupancy was stable at 95 per cent. To date, 97 per cent of the rent has been collected for the first quarter of 2020.
Bombardier shares crash
Delays to turnaround
Bombardier’s (Can:BBD.B) shares plunged by as much as 38 per cent after the Canadian aerospace giant cut its fourth-quarter guidance and raised the possibility of exiting a joint venture with Airbus (Fra:AIR). Bombardier has encountered delays in its bid to turn around its transportation division and expects a fourth-quarter adjusted operating loss here of around $230m (£175m). In aviation, Bombardier delivered 11 Global 7500 aircraft in 2019, at the lower end of a target range of 10 to 15 jets. Following its exit from commercial aerospace last year, the group is considering the future of its A220 aircraft partnership with Airbus.
Davos showdown
Donald versus Greta
The world’s rich and powerful gathered in Switzerland once again for the 50th annual meeting of the World Economic Forum. The theme of this year’s summit was “stakeholders for a cohesive and sustainable world”, focusing on issues such as using technology as a force for good and addressing climate change. Facing an impeachment trial at home, Donald Trump couldn’t resist making further headlines, railing against environmental “prophets of doom” to an audience that included climate activist Greta Thunberg. Unfazed by the US President’s scepticism, Ms Thunberg pressed on with her call for urgent action, noting that the world "in case you hadn't noticed, is currently on fire".
