At Altitude

Asian markets fall as concerns about Coronavirus spread and Hong Kong gets a downgrade.

The Express | Insight Before the Bell By Caleb Silver, Editor in Chief & Deborah D'Souza, News Editor  Tuesday's Headlines 1. Asian and European markets fall, but U.S. futures are perking up 2. Moody's downgrades Hong Kong's debt 3. The IMF cuts global growth outlook 4. Uber Eats exits India 5. Smartphone sales to return to growth in 2020     Headlines Global markets are mixed this morning as U.S. investors get back to work. Asian markets are down more than 1% as concerns about a recent outbreak of the coronavirus spread, and investors contemplate Moody's downgrade of Hong Kong's debt. High up in the Swiss Alps, world leaders, teenage environmental activists, CEOs, celebrities and the media have gathered in Davos for the World Economic Forum's annual meeting. Climate change and what to do about it is one of this year's main themes as global companies realize their contribution to global warming and the impacts on the long-term success of their businesses if they don't do something about it. Billionaire investors are bemoaning the scarcity of things to invest in given rising asset prices, and concerns that stock prices are feeling bubbly. It sounds like January in Switzerland! See what's on the agenda here. Boeing is reportedly in talks with banks to secure a loan of $10 billion or more, according to CNBC, as the company faces rising costs related to the two fatal crashes of its 737 Max planes. Earlier this month, Boeing suspended production of the troubled planes as the grounding stretches into its 11th month. Banks that have already committed to contribute to the loan include Citigroup, Bank of America Merrill Lynch, Wells Fargo and J.P. Morgan, according to the report. France has agreed to suspend its 3% digital services tax until the end of 2020 after the U.S. threatened additional tariffs up to 100% on French goods worth $2.4 billion. In return, the U.S. will postpone retaliatory tariffs this year, according to an official speaking with The Wall Street Journal. The U.S. Trade Representative said in December that the tax is unfairly burdensome for U.S. tech giants.  Uber has sold its Uber Eats India business to local market leader, Zomato. The all-stock transaction gives Uber 9.99% ownership in Zomato. Founded in Delhi 11 years ago, Zomato is present in 24 countries and its backers include China's Ant Financial. Uber CEO Dara Khosrowshahi credited the firm's ability to grow rapidly in a capital-efficient manner. Moody's has downgraded Hong Kong's debt rating to "Aa3" from "Aa2" and changed the outlook to stable from negative. The agency said the absence of an effective government response to the protests reveal Hong Kong's institutions are weaker and under more constraints than previously estimated. The stable outlook reflects superior fiscal strength and consistent macroeconomic stability, it said. The IMF cut its forecast for global economic growth in 2020 by 0.1% to 3.3%. "The downward revision primarily reflects negative surprises to economic activity in a few emerging market economies, notably India, which led to a reassessment of growth prospects over the next two years. In a few cases, this reassessment also reflects the impact of increased social unrest," said the January World Economic Outlook. SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More »           Image courtesy: WEF Big Story Trump at Davos The 50th annual meeting of elite government and industry leaders in Swiss ski town Davos began today, and President Donald Trump delivered a special address at 11:30 a.m. local time, returning to the stage after 2 years. He skipped the Q&A that was meant to follow.   His impeachment trial is also set to get underway in the Senate today, but the president didn't seem overly concerned (he's expected to be acquitted) when he tweeted this last night:     That thread of confidence continued in his speech about America's "stunning turnaround" after the economy was left in a "dismal state." He said this economic prosperity could not have been possible without cutting taxes, slashing regulations, fixing broken trade deals and tapping energy resources.   "America is thriving, America is flourishing, and yes, America is winning again like never before," he said before listing and describing the "wins" achieved under his leadership. The wins touted include record low unemployment, stock market all-time-highs, the China phase one and USMCA trade deals, child care reforms, energy self-sufficiency, the appointments of 190 federal judges and record foreign direct investment.   He also couldn't resist another swipe at the Fed, saying it raised rates too fast and lowered them too slowly. "We compete with nations that are getting negative rates," he said.   Klaus Schwab, the founder and executive chairman of the WEF, thanked Trump for "injecting optimism" into the discussions at Davos.   You can watch the speech here.     Image courtesy: Qualcomm/Giphy The Big Number: 1.7% That's how much the worldwide mobile phone market will grow in 2020 year-over-year, driven by the shift to 5G, according to a new Gartner report. This is after shipments fell 2% in 2019. The global shipments of PCs, tablets and mobile phones together are expected to grow 0.9% to 2.16 billion units from 2.15 billion units in 2019.   The report says 5G models will account for 12% of mobile phone shipments in 2020 and 43% by 2022. "From 2020, Gartner expects an increase in 5G phone adoption as prices decrease, 5G service coverage increases and users have better experiences with 5G phones. The market will experience a further increase in 2023, when 5G handsets will account for over 50% of the mobile phones shipped," said Ranjit Atwal, research senior director at Gartner. .     Image courtesy: Gartner Read more: 5 Things to Know About 5G Wireless Technology Chip Makers, IoT to Gain From New 5G More coverage: Economic Cycles Show the U.S. is Slowing Economic cycles show the U.S. is slowing as other countries accelerate. While a recession may not be imminent, the slowdown is underway. Read Now »   Intel Stock Could Sell Off After Earnings Dow component Intel has failed to break out above major resistance, despite broad market tailwinds. Read Now »   Bitcoin Institutional Investment Ramps Up New Bitcoin derivatives help to drive up institutional investment volume as well as Bitcoin's price and the overall market capitalization. Read Now »   Uber Stock Enters New Uptrend Uber stock has attracted significant buying interest, signaling a new uptrend, while rival Lyft remains stuck in the mud. Read Now »   How can we improve The Express? Tell us at theexpress@investopedia.com Enjoy The Express?  Copy and share the link below to invite friends to sign up: https://link.investopedia.com/join/53o/00-fwd-theexpress CONNECT WITH INVESTOPEDIA Email sent to:  geezers.mail@gmail.com To update your newsletter preferences or unsubscribe, click here.   114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC. All Rights Reserved | Privacy Policy