The daily business briefing: January 31, 2020

1.

Brexit day arrives, launching U.K. transition out of EU

Britain officially leaves the European Union on Friday. The U.K. is scheduled to leave the 28-nation trading bloc at 11 p.m. local time, marking the first time a member nation has left. Prime Minister Boris Johnson is scheduled to deliver a televised address in which his office said he would call Brexit "not an end but a beginning." Britain voted in 2016 to leave the EU by a 52 percent to 48 percent margin, with England and Wales voting to leave and Scotland and Northern Ireland wanting to remain. The U.K. and the EU will continue to trade under the bloc's rules through an 11-month "transition period" during which the two sides will negotiate new agreements on trade and security. The talks are scheduled to start in March. [The Associated Press]

2.

Amazon shares surge after strong earnings report

Amazon on Thursday reported holiday quarter results that far exceeded Wall Street's expectations, sending its stock soaring 13 percent higher in after-hours trading. The gains returned Amazon to the small club of companies with a market capitalization above $1 trillion. If the online retailer can hold onto the gains on Friday, it will see its biggest one-day jump since October 2017. Amazon also reported more sign-ups for its Prime loyalty club thanks partly to the expansion of its one-day shipping program, capping a 50 percent increase in Prime membership in two years. Amazon CEO and founder Jeff Bezos said Amazon now has more than 150 million paid Prime members. [Reuters]

3.

Trump administration proposes rollback on bird protections

The Trump administration on Thursday proposed a regulation that would erase punishments for companies that "incidentally" kill birds while they work. Under the proposal, oil and gas companies wouldn't be punished if a spill killed birds. Construction crews that kill birds during work would be spared, as would farmers who spray pesticides and companies owning wind turbines that strike and kill birds. The rule change comes from a 2017 Interior Department opinion regarding the 1918 Migratory Bird Treaty Act. Previous administrations had interpreted the act "too broadly," the agency had argued, and it determined the act was only supposed to punish actions explicitly intended to kill birds. Conservation groups and some states previously sued the administration over the opinion. [The New York Times]

4.

Stocks remain under pressure due to coronavirus concerns

U.S. stock index futures dropped early Friday as markets continued to focus on concerns about economic fallout from China's rapidly spreading coronavirus outbreak. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were down by 0.3 percent or more several hours before the opening bell. China's National Health Commission said Friday the number of confirmed cases of the flu-like virus in China had risen to 9,692, with 213 deaths. The World Health Organization on Thursday declared the outbreak to be a global health emergency due to the possibility it could spread to countries with health systems too weak to contain it. The virus was first discovered in the Chinese city of Wuhan but has spread to at least 18 other countries. [CNBC]

5.

American Airlines pilots sue to halt flights to China

The American Airlines pilots' union filed a lawsuit on Thursday seeking to force the carrier to halt flights to and from China due to the quickly spreading coronavirus outbreak, which has killed 213 people. The Allied Pilots Association, which represents the carrier's 15,000 pilots, asked a court in Dallas, Texas, to immediately stop the flights after the World Health Organization declared the outbreak to be a global health emergency. "The safety and well-being of our crews and passengers must always be our highest priority — first, last, and always," union president Eric Ferguson said. An American Airlines spokesman said the airline was "in close contact" with public health officials "to make sure we are taking all necessary precautions for our customers and team members." [The Associated Press]