Coronavirus scare forces shutdown of global brands like Hilton in China
The novel Coronavirus epidemic is threatening a meltdown in the Chinese economy for sure with global brands bolting for the door as hotel brand, Hilton announced that it is shutting down 150 hotels in China, 60 per cent of its total capacity in the country.
 
Hilton has had to close 150 hotels in China because of the Coronavirus, CEO Christopher Nassetta announced during the company's fourth quarter earnings call. These constitute 33,000 rooms and are 60 per cent of its total capacity in China.
 
Assuming that the outbreak lasts three to six months, with an additional three to six month recovery period, Hilton expects a $25 million to $50 million hit on full-year adjusted EBIDTA.
 
The worst hit are the hotel, travel, aviation companies which have restricted travel to China and it is forecast that the Coronavirus will have a multibillion-dollar impact on the travel industry.
 
While Hilton has shut down hotels, Alibaba Group, the Chinese e-commerce giant, has warned of the impact on Chinese economy. It said that that the Coronavirus is exerting a fundamental impact on the country's consumers and merchants, and will hurt its revenue growth in the current quarter.
 
Alibaba warned that production is being hit as workers are not being able to go to work. Discretionary spending has collapsed in China including in restaurants, it said.
 
Ralph Lauren too has warned of sales taking a hit due to the virus. The apparel maker said its fourth quarter will take a sales hit of as much as $70 million because of the virus. It has warned that supply-chain disruptions in China could also affect a "small portion" of the company's fourth-quarter orders globally. About two-thirds of Ralph Lauren's stores in mainland China have been temporarily closed.
 
As the virus spreads other to countries causing deaths, the European Commission has called the virus a key downside risk, further dampening the outlook for European economic growth.
 
Japan on Thursday confirmed its death from the virus with the death of a 80-year-old woman outside of Tokyo.
 
With the global economy headed for a meltdown, the International Energy Agency (IEA) has forecast the first global oil demand drop in a decade.
 
As several events get postponed, Hong Kong Rugby Union and Sport Singapore have confirmed that the World Rugby Sevens Series 2020 will be postponed to October from April due to concerns over Coronavirus.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    SoftBank profits almost wiped out by Vision Fund losses
    Japanese technology conglomerate SoftBank Group has seen its quarterly profit being almost wiped out for a second straight quarter by losses at its $100 billion Vision Fund focused on tech companies like Uber and WeWork.
     
    The poor results have dented investor confidence in founder Masayoshi Son's big bets on new start-ups.
     
    Addressing a news conference, Son said SoftBank had turned a corner while he also acknowledged the anxiety caused to investors and also said he has been forced to scale back a second Vision Fund.
     
    "We have caused a lot of concern," Son said, adding he needs to "give everyone a piece of mind" to secure outside funds for Vision Fund 2.
     
    The tech conglomerate on Wednesday reported operating income of 2.59 billion yen ($23.6 million) for the three months ended in December, a plunge of 99% compared to the same period a year earlier.
     
    SoftBank founder and CEO Masayoshi Son's closely watched $100 billion Vision Fund was the biggest driver of those losses. The Vision Fund and a related fund reported an operating loss of 225 billion yen ($2 billion) for the quarter, blaming unrealized losses in WeWork and Uber for the hit.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
  • User

    COMMENTS

    sanjeevnandaofficial

    2 weeks ago

    Mashiyosi Son will be mourned a martyr. The man wanted to invest in innovative ideas, but he has no judge of human caliber (as in the case with Adam Neuman). I hope he is able to pick himself up by the bootstaps and have a clear vision going forward.
    ~ Sanjeev Nanda, Financial Advisor

    US FTC to probe past acquisitions by Facebook, Google, Apple, Amazon, Microsoft
    Amid growing calls for breaking down large technology companies, the US Federal Trade Commission is set to examine past acquisitions by five tech giants -- Alphabet Inc. (including Google), Amazon.com, Inc., Apple Inc., Facebook, Inc., and Microsoft Corp.
     
    The FTC on Tuesday said it issued special orders to these five companies, requiring them to provide information about prior acquisitions not reported to the antitrust agencies under the Hart-Scott-Rodino (HSR) Act.
     
    The orders require to provide information and documents on the terms, scope, structure, and purpose of transactions that each company consummated between January 1, 2010 and December 31, 2019.
     
    The Commission said it wanted to conduct wide-ranging studies of these acquisitions that do not have a specific law enforcement purpose.
     
    The orders will help the FTC deepen its understanding of large technology firms' acquisition activity, including how these firms report their transactions to the federal antitrust agencies, and whether large tech companies are making potentially anticompetitive acquisitions of nascent or potential competitors that fall below HSR filing thresholds and therefore do not need to be reported to the antitrust agencies.
     
    "Digital technology companies are a big part of the economy and our daily lives," said FTC Chairman Joe Simons.
     
    "This initiative will enable the Commission to take a closer look at acquisitions in this important sector, and also to evaluate whether the federal agencies are getting adequate notice of transactions that might harm competition. This will help us continue to keep tech markets open and competitive, for the benefit of consumers," Simons added.
     
    The special orders require each recipient to identify acquisitions that were not reported to the FTC and the U.S. Department of Justice under the HSR Act, and to provide information similar to that requested on the HSR notification and report form.
     
    The orders also require companies to provide information and documents on their corporate acquisition strategies, voting and board appointment agreements, agreements to hire key personnel from other companies, and post-employment covenants not to compete.
     
    The orders also ask for information related to post-acquisition product development and pricing, including whether and how acquired assets were integrated and how acquired data has been treated.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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