(Bloomberg) -- Stocks dropped globally and U.S. index futures fluctuated on Wednesday as investors fretted fresh evidence of the widening coronavirus outbreak. Gold advanced and Treasuries were steady.The Stoxx Europe 600 Index fell for a fifth straight session, suffering its longest losing streak since July, as companies including Diageo Plc and Danone SA warned the virus outbreak will hit their sales in China. Futures on the three main American equity gauges swung between gains and losses, a day after the S&P 500 Index fell 3% to cap its worst two-day slide since 2015.South Korean and Australian stocks led declines in Asia, with the won falling toward its weakest since 2016 after the country reported a further escalation in cases of the virus. The yen gave up some recent gains. Ten-year Treasury yields hovered close to their record-low close set Tuesday, while the dollar edged higher.Risk assets are showing few signs of...
(Bloomberg Opinion) -- The stock market with the most to lose from a wider coronavirus outbreak is the one in the U.S.Global markets sold off on Monday and Tuesday on reports that authorities are struggling to contain the virus, which has now spread to more than 30 countries and increasingly threatens the global economy. Until this week, the declines in global stocks seemed to be driven by proximity to the virus’s epicenter in China, but it’s becoming increasingly clear that few markets will escape harm if the virus isn’t contained.What’s not clear is which stock markets would suffer the sharpest declines. That obviously depends on how the crisis unfolds — where the virus spreads, how many people are affected, the impact on regional economies and trading routes, and so forth. But it also depends on the extent to which markets have already digested the potential risks, and by that criterion, the...
(Bloomberg) -- Rio Tinto Group’s chief executive officer said the world must be prepared to sacrifice growth to achieve climate goals as the natural resources industry comes under increasing pressure to curb emissions.“The challenge for the world, and for the resources industry, is to continue the focus on poverty reduction and wealth creation, while delivering climate action,” Jean-Sebastien Jacques told investors on Wednesday. “This will require complex trade-offs.”Jacques said consumers, governments and shareholders must all be willing to make sacrifices -- in the form of lower consumption, growth and returns -- if climate targets are to be met. The mining industry, a key pillar of growth in many developing countries, is facing investor demands to cut the scale of emissions created by its products, from thermal coal to iron ore.“There are no easy answers,” Jacques said. “There is no clear pathway right now for the world to get to net zero...
(Bloomberg Opinion) -- A combination of hefty dividends and contracting output is turning the world’s second-largest miner into the poster child for a $1.5 trillion industry’s growth quandary.Rio Tinto Group announced a record $3.7 billion final dividend Wednesday, adding to $11.9 billion of cash returns already paid in 2019. Yet it produced less iron ore, copper and aluminum, leaving market prices to lift underlying earnings by 18%. Rio’s Pilbara operations stumbled early in the year. Its Mongolian copper mine, a key source of future production and the basis of a greener portfolio, is now not only sorely overdue and over-budget, but also tangled in international tax arbitration. The $86 billion mining giant isn’t alone. High dividend yields and pedestrian output have begun to define resources heavyweights that used to be known for the exact opposite. Diversified groups relied on their varied sources of cash to expand, but large-scale opportunities are scarcer than ever, and portfolios look far less diverse too,...
(Bloomberg) -- Stocks fell in Europe and Asia on Wednesday and U.S. index futures erased an advance following another strong sell-off on Wall Street. Treasuries extended gains.Declines in travel and leisure shares led the Stoxx Europe 600 Index lower for a fifth straight session. Futures on the three main American gauges erased an earlier gain to turn lower, a day after the S&P 500 Index fell 3% to cap its worst two-day slide since 2015. Korean and Australian stocks led losses in Asia. South Korea’s won fell toward its weakest since 2016 after the country reported a further escalation in coronavirus cases. Ten-year Treasury yields dropped, on track for another record-low close, while the yen gave up some recent gains.Risk assets are showing few signs of a rebound as the number of global coronavirus cases continues climbing. South Korea said its national total rose to more than 1,000, while American health...
