The daily business briefing: February 18, 2020

1. Apple says coronavirus outbreak will hurt revenue

Apple said Monday that it was cutting sales expectations for the current quarter, citing slowed production and weak demand in China due to the coronavirus outbreak. Last month, Apple projected record revenue for this quarter of between $63 billion and $67 billion. The coronavirus outbreak originated in Wuhan, China, home to two of Apple's top 200 suppliers. Most of Apple's products are assembled in China, and the company said there would be a temporary global shortage of iPhones, since factory closures hindered production. The announcement "confirms the worst fears that the iPhone impact was going to be more dramatic than expected," said Daniel Ives, managing director of equity research at Wedbush Securities. Apple was the first major U.S. company to reveal how the coronavirus outbreak had affected business.

The Wall Street Journal The New York Times

2. Amazon's Bezos creates $10 billion fund to fight climate change

Amazon founder and CEO Jeff Bezos announced Monday that he was forming the Bezos Earth Fund and providing $10 billion to fight climate change. The money will go toward grants to scientists and activists. "Climate change is the biggest threat to our planet," Bezos said on Instagram. "I want to work alongside others both to amplify known ways and to explore new ways of fighting the devastating impact of climate change on this planet we all share." The establishment of the fund was the latest in a series of environmental commitments by Bezos. Amazon last year made a "climate pledge" committing the company to shifting 100 percent to renewable electricity by 2030.

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The Washington Post The Verge

3. Toyota to reopen 2 China factories idled due to coronavirus

Toyota reopened two factories in China on Monday as automakers push to resume operations at facilities idled under measures imposed to contain the country's coronavirus outbreak. Volkswagen, Ford, Mercedes Benz, and Chinese brand Geely restarted some operations last week. The ruling Communist Party has ordered local governments to make it a priority to help businesses get back to work at the same time as authorities continue enforcing containment policies. "Local governments are putting their full weight behind helping businesses open," Ker Gibbs, the president of the American Chamber of Commerce in Shanghai, said in a statement.

The Associated Press

4. Stock futures weighed down by Apple's coronavirus warning, Walmart's miss

U.S. stock index futures fell early Tuesday as trading was set to resume after the Presidents' Day market holiday. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were down by 0.4 percent several hours before the opening bell. The three main U.S. indexes set record closing highs last week. But investors were cautious early Tuesday following Apple's announcement that its revenue would be hurt in the current quarter by slowed production and reduced demand in China due to the coronavirus outbreak. Walmart's announcement that its earnings fell short of expectations also dampened the mood, as its stock fell by about 2 percent in premarket trading.

CNBC

5. GM retreats from Australia, New Zealand

General Motors is accelerating its push to retreat from unprofitable markets by winding down its operations in Australia and New Zealand, and selling a plant in Thailand. The latest restructuring of the U.S. automaker's global business will cost it $1.1 billion. About 600 jobs will be lost in Australia and New Zealand, and another 1,500 jobs will be affected at the Thai plant. Australian Prime Minister Scott Morrison said on Monday that he was disappointed but not surprised. "Australian taxpayers put billions into this multinational company," Morrison said. "They let the brand just wither away on their watch."

Reuters