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World stock markets regained strength on Wednesday, as swift updates from China about the spread of a new flu-like coronavirus raised hopes the outbreak would be contained. Worries about contagion of the virus, particularly as millions travel for upcoming Lunar New Year festivities, have knocked the world's top equity markets off record peaks. The outbreak has revived memories of the Severe Acute Respiratory Syndrome (SARS) epidemic in 2002-03, a coronavirus outbreak that killed nearly 800 people.
Aspen, Carpenter Technology, Netflix, IBM and United Airlines highlighted as Zacks Bull and Bear of the Day
* Asian shares up, investors welcome China virus response Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni.
* Asian shares up, investors welcome China virus response Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Expectations tech could get support from IBM results and the update from ASML didn't prove fully true however. The index is up just 0.2%, weighed down by a 2% slide in Prosus after e-commerce group Naspers sold a stake in its subsidiary, while ASML is also down as its Q1 2020 sales guidance disappointed.
Company INTERNATIONAL BUSINESS MACHINES CORPORATION TIDM IBM Headline Notification of filing of document The Corporation's current report on Form 8-K dated Jan. 21, 2020 was filed with the United States Securities Exchange Commission and in Luxembourg with the Luxembourg Stock Exchange as the officially appointed mechanism for the central storage of regulated information and with the CSSF on Jan. 22, 2020. The report is available at www.sec.gov and www.bourse.lu.
Over the past few years, Chief Executive Officer Ginni Rometty has been trying to shift the company's focus to the cloud through acquisitions and also by selling some of IBM's legacy businesses. IBM bought Linux maker Red Hat Inc in a $34 billion deal last year, its biggest acquisition so far, in a push to expand its subscription-based software business. Revenue from the cloud business rose 21% to $6.8 billion in the fourth quarter, its largest so far.
(Bloomberg) -- International Business Machines Corp. reported revenue in the fourth quarter that beat analysts’ estimates, breaking a streak of five consecutive declines as its push into the hybrid cloud market slowly starts to bear fruit. The shares jumped in extended trading.Sales were $21.8 billion in the quarter, up almost 0.1% from the same period a year earlier, the Armonk, New York-based company said in a statement Tuesday. Wall Street had forecast $21.6 billion.The increase stemmed from IBM’s acquisition of Red Hat, which it completed in the third quarter last year, helping boost the cloud and cognitive software division 8.7% from a year earlier. Total cloud revenue was $6.8 billion, the highest ever.Chief Executive Officer Ginni Rometty is hanging the company’s future on the market for hybrid cloud, which allows companies to store data in cloud servers on private and multiple public clouds run by its rivals Amazon Web Services and Microsoft Corp.’s Azure. IBM spent $34 billion in 2018 to acquire Red Hat to help kick this strategy into gear. The company plans to use Red Hat to offer enhanced security services and applications in the hybrid cloud.Red Hat contributed $1 billion in revenue in the quarter ended Dec. 31, but IBM was only allowed to recognize $573 million of that due to U.S. accounting standards. IBM reported earnings excluding some costs of $4.71 a share, beating the average analyst estimate of $4.69. The company said it expects adjusted earnings per share of at least $13.35 for 2020, ahead of Wall Street’s projections for $13.29.Global Technology Services, which represents about 30% of IBM’s overall revenue, continued to decline. The technology consulting unit had revenue of $6.9 billion, which is down 4.8% from the same period last year. Global Business Services also declined, to $4.2 billion -- a 0.6% drop from a year earlier.Once the world leader in technology, IBM has lagged behind rivals for years after largely missing the cloud revolution. “The company has been struggling in a raging bull market for tech stocks,” said Ivan Feinseth, a director of research and analyst at Tigress Financial. “All types of tech companies have been growing expect for IBM.”IBM has long struggled with revenue growth, a factor that has weighed on shares. The stock rose about 4% in extended trading following the report.To contact the reporter on this story: Olivia Carville in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Molly Schuetz at email@example.com, Andrew PollackFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Wall Street backed away from all-time highs on Tuesday as investors returned from a holiday weekend to face a viral outbreak in China and a downbeat global growth outlook from the International Monetary Fund (IMF). The indexes extended their losses after the Centers for Disease Control and Prevention confirmed the first U.S. case of the coronavirus, which has now killed six people in China. United Airlines was down 5.3%, while Carnival Corp dipped 2.6%.
The latest global economic news, which includes a deadly virus that began in central China. Trump's speech in Davos. Uber news. What to expect from Netflix earnings. And why GoDaddy (GDDY) is a Zacks Rank 1 (Strong Buy) stock right now...
(Bloomberg) -- Sign up here to receive the Davos Diary, a special daily newsletter that will run from Jan. 20-24.IBM called for rules aimed at eliminating bias in artificial intelligence to ease concerns that the technology relies on data that bakes in past discriminatory practices and could harm women, minorities, the disabled, older Americans and others.As it seeks to define a growing debate in the U.S. and Europe over how to regulate the burgeoning industry, IBM urged industry and governments to jointly develop standards to measure and combat potential discrimination.The Armonk, New York-based company issued policy proposals Tuesday ahead of a Wednesday panel on AI to be led by Chief Executive Officer Ginni Rometty on the sidelines of the World Economic Forum in Davos. The initiative is designed to find a consensus on rules that may be stricter than what industry alone might produce, but that are less stringent than what governments might impose on their own.“It seems pretty clear to us that government regulation of artificial intelligence is the next frontier in tech policy regulation,” said Chris Padilla, vice president of government and regulatory affairs at International Business Machines Corp.The 108-year-old company, once a world technology leader, has lagged behind the sector for years. In its fight to remain relevant, IBM has pegged its future on newer technologies like artificial intelligence and cloud services. But it’s yet to show significant revenue growth from those areas.The IBM recommendations call for companies to work with governments to develop standards on how to make sure, for instance, that African-Americans are guaranteed fair access to housing despite algorithms that rely on historical data such as zip codes or mortgage rates that may have been skewed by discrimination. In the U.S., that would likely occur through the National Institute of Standards and Technology within the U.S. Department of Commerce.Read more: A QuickTake explains algorithmic biasRometty is hosting the panel, which includes a top White House aide, Chris Liddell, OECD Secretary-General Jose Angel Gurria and Siemens AG CEO Joe Kaeser.IBM also suggests that companies appoint chief AI ethics officials, carry out assessments to determine how much harm an AI system may pose and maintain documentation about data when “making determinations or recommendations with potentially significant implications for individuals” so that the decisions can be explained.Spearheading the AI regulatory debate gives IBM a chance to come back into the spotlight as a leader in cutting-edge technology, a position it hasn’t held for years.The AI proposals are intended to stave off potential crises that could enrage customers, lawmakers and regulators worldwide -- similar to what happened with Facebook Inc. in the Cambridge Analytica data scandal, when the personal data of millions of Americans was transferred to the political consulting firm without their knowledge.“I don’t think we’re yet in the same place on AI,” he said. “So I don’t think it’s too late to try this approach.”Concerns about AI and machine learning -- software tools that use existing data to automate future analysis and decision-making -- range from identifying faces in security-camera footage to making determinations about mortgage rates. AI is central to the future of many technology companies, including IBM’s, but has spurred worries that it could kill jobs and spread existing disparities in areas such as law enforcement, access to credit and hiring.IBM has been working with the Trump administration since last summer on its approach to AI regulation. Earlier this month, the White House issued guidelines for use of the technology by federal agencies, which emphasized a desire not to impose burdensome controls. Last week, a bipartisan group of U.S. senators unveiled a bill designed to boost private and public funding for AI and other industries of the future.The European Union is considering new, legally binding requirements for developers of artificial intelligence to ensure the technology is developed and used in an ethical way. IBM advised a European committee of academics, experts and executives that recommended avoiding unnecessarily prescriptive rules.The EU’s executive arm is set to propose that the new rules apply to “high-risk sectors,” such as health care and transport. It also may suggest that the bloc update safety and liability laws, according to a draft of a so-called white paper on artificial intelligence obtained by Bloomberg. The European Commission is due to unveil the paper in mid-February and the final version is likely to change.For More: Europe Mulls New Tougher Rules for Artificial IntelligenceWhile Rometty has touted the growth potential for new offerings in cloud services, the company’s third-quarter earnings report in October missed Wall Street estimates. It was IBM’s fifth-consecutive quarter of shrinking sales despite its July acquisition of open-source software provider Red Hat, designed to bolster its hybrid cloud-services strategy. The company is set to report fourth-quarter results Tuesday at the market close.Padilla said compliance with standards could become a selling-point for companies and perhaps help lower their legal liability.“If we take a just-say-no approach, or we just wait, the chances are higher that governments will react to something that happens,” he said. “Then you will get more of a prescriptive, top-down regulation.”\--With assistance from Natalia Drozdiak.To contact the reporters on this story: Ben Brody in Washington, D.C. at firstname.lastname@example.org;Olivia Carville in New York at email@example.comTo contact the editors responsible for this story: Sara Forden at firstname.lastname@example.org, Paula DwyerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.