From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
Coronavirus Fears Chill Markets
The CDC has confirmed a second case of Coronavirus in Chicago, causing another pullback in U.S. markets and dampening investor sentiment worldwide. That story moved markets all week, with China taking the unprecedented step of putting several cities — with a combined population of millions — under quarantine. Travel stocks, including major airlines like American Airlines, Delta Air Lines, and even hospitality and tourism companies like Hilton Worldwide, all fell on Tuesday when China publicly announced the virus. The World Health Organization declared on Thursday that the Coronavirus outbreak in China is not yet a global public health emergency. The virus tanked markets in Asia, with the Shanghai Stock Exchange seeing a miserable Thursday close, ending down 2.75 percent. Markets in Shanghai will remain closed until the 30th for the Chinese New Year holiday. The U.S. 10-year Treasury also fell to lows not seen in months, with perceived safe-havens like gold rising in response to the outbreak.
Bezos Unfriends Bin Salman
Be careful who you add to your contact list. Amazon CEO and Washington Post owner Jeff Bezos learned this the hard way in 2018 when Saudi Arabia allegedly hacked into his phone, blackmailing the billionaire over the Post's critical coverage of the regime. Things began rather innocuously, with Bezos casually swapping numbers with Saudi Crown Prince Mohammad Bin Salman during the latter's three-week trip across the U.S. Four weeks later, Bezos received a video file from a WhatsApp account allegedly belonging to the royal that included spyware ー the ensuing fallout exposing Bezos's extramarital affair, allegations of blackmail against the Trump-aligned tabloid The National Enquirer ー and the publication of some rather private pictures of the billionaire. Now, experts from the United Nations are calling for an investigation into the allegations. The White House has broken its silence on the scandal, calling Saudi Arabia 'an important ally,' but saying they take the reports 'seriously.'
Trump Brings Fire to Davos
The President brought his fiery rhetoric to the Swiss Alps, telling multiple outlets at the 2020 World Economic Forum in Davos that he intended to slap tariffs on European products including automobiles in a play to give the EU no choice but to negotiate a new trade deal with the U.S. The Europeans weren't the only ones in the crosshairs, though. President Trump blasted the Fed for hindering economic growth, and in his closing remarks to reporters took swings at Democrats, the media, and his impeachment trial back at home.
Tesla Charges Past $100 Billion
Tesla surged past $100 billion in market valuations this week, surpassing both Ford and General Motors ー combined ー and now worth more than any other automaker with the exception of Toyota. The electric automaker's rally comes just weeks after it passed its mythical $420 per share milestone and sees no sign of abating. Shares of Tesla first hit $100 billion during extended trading on Tuesday, and made it the first publicly listed U.S. car company to achieve the goal. A note from New Street Research helping fuel the rise after it raised its price target on the stock to $800 per share.
Boeing's Blues Continue
Boeing missed yet another self-imposed deadline to return its grounded 737 Max to service. The planemaker announced on Tuesday that its jet would likely not receive regulatory approval until July ー pushing the timetable for airlines back even further. Southwest Airlines, which relies heavily on the 737 Max, reported a more than 21 percent fall in its profit over costs incurred from the delay. The beleaguered jetmaker saw its stock halted on Tuesday following a six percent fall on the news. The Max remains grounded over two fatal crashes in 2018 and 2019.
