A look at the global business stories.
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This is Business Live from BBC News
with David Eades and Ben Bland.
Has Coca-Cola lost its fizz?
The world's biggest beverage maker
reports results in a few hours -
amid a 12 year decline
in soft drink sales.
Live from London,
that's our top story on Friday
the 16th of February.
Consumers are choosing
healthier options -
which is good for the waistline,
but bad for companies
like Coca Cola's bottom line.
Also in the programme, shampoo,
deodorant and other household
products could be as hazardous
to health as car emissions,
a new study has found.
We'll find out more
in our paper review.
As for the markets, let's look at
how the European markets and the
FTSE have opened, around half a
percent, following on from
encouraging signs from the Nick
Cave. -- Nikkei.
And we'll wrap up the week's
big events with our
economics correspondent -
including what's ahead
for South Africa's new president?
What's waiting in his
economic in tray?
And we want to know have you ditched
fizzy drinks and what are you having
instead to quench thirst? No fizzy
drinks, just coffee, ignored the
three sugars! Contact us.
Hello and welcome to Business Live.
When it comes to our eating habits,
it turns out that many people
are choosing healthier options -
or at least cutting
back where they can.
But for a company like Coca-Cola,
does a shrinking waste-line mean
a shrinking bottom line?
Just to give you an idea,
one can of Coke has about seven
teaspoons of sugar in it -
and it accounts for 139 calories.
That's about the same
as eating a Daim bar!
Americans are definitely
In 2016, soda sales hit a 31-year
low in the United States.
Coke will be reporting earnings
in a few hours' time
and expectations are that revenue
will fall 21% in the last
three months of 2017.
So the world's largest beverage
company is looking to expand further
into sugar-free alternatives
and bottled water.
But will that be enough?
Andy Morton is news editor
of the online trade
magazine Just Drinks.
Good to have you with us. Already
the tweets are coming in, including
Edward, I saw the line, ditched
fizzy drinks, have swapped it for
glasses of water bodies that where
the problems lie?
something that's been ongoing for
the past picked, people drinking
fewer sodas and turning to healthier
The drinks companies
are aware of this, it's not a sudden
thing happening overnight, it's been
a long-term health push, the Rabin
government campaigns, health kick
and the drinks companies know about
this and that the past 5-6 years
they've been trying to buy as many
new and trending products as
possible. For example they bought
coconut water, sparkling water, and
they have also what plant -based
drinks such as soya -based drinks,
those kind of things, on trend,
things that have less sugar and that
people want to drink.
On trend is
one thing, persuading people is a
long-term buy, they know that
Coca-Cola sells, but it's on the
decline, what do they do?
do is they tried to convince people
that Coca-Cola is still a rewarding
It is for them.
It is still
a massive moneymaker. They don't
want to ditch it, it's still the
Crown Jewels, what able trouble they
do is reduced packaging sizes,
they've been doing that for the past
few years, you will have full sugar
drinks in smaller packages, it's
seen as and we'll be seen more as a
luxury, and indulgence. We have seen
what some people are
calling the adultification of drinks
like Coca-Cola, making them sleeker.
We have seen some bigger companies
like Pepsi, moving into things like
Kraft sodas, to see if that will
work. What has happened in the beer
industry, trying to replicate it in
the soft drinks industry, but it's
still early days.
What do you think
the future is, are we likely to see
consolidation, companies merging to
That's something that could
happen, Coca-Cola, always rumours
floating that a bigger company is
going to buy it. There are these
larger companies, owned by a large
private equity firms, these are the
kind of companies that may in the
future look to buy Coca-Cola, Pepsi
Cole have lines in food and drinks
business, they could divert the
businesses, food going one way drink
Let's take a look at some of
the other stories making the news...
Theresa May is due to hold talks
with German Chancellor Angela Merkel
today as she seeks to make progress
on negotiating Brexit.
The UK PM is expected to set
out her vision of how she wants
the financial services to operate
once Britain leaves the EU.
This comes a day ahead of a speech
on Saturday in which the British PM
will set out the security
partnership she wants
to maintain with the EU.
French car giant Renault has asked
Carlos Ghosn to stay on as chief
executive for a further four years.
If approved, he would also remain
on as head of the world's
biggest automotive group,
which also includes the Nissan
and Mitsubishi brands.
US regulators have rejected the sale
of the Chicago Stock Exchange
to a group led by Chinese based
investors, over concerns
with its ownership structure.
The deal has drawn criticism from US
lawmakers who questioned the SEC's
ability to regulate the foreign
buyers if the proposal
Japan's government has today
nominated Haruhiko Kuroda
for a second term as the country's
central bank governor.
The decision is being seen
as an indication that the country
is in no rush to dial
back its massive stimulus programme.
Let's go to our Asia business
hub where Sarah Toms
is following the story.
Tell us more.
How is this going
down? It's been a good day for
Japanese markets, investors
breathing a sigh of relief. The
markets up just 1%, the yen is the
strongest in 15 months up against
the US dollar, showing investors
want continuity over change.
Kuroda has been key to the success
of the Japanese Prime Minister,
needs approval from both houses, but
there is a comfortable majority
silver should not be a problem but
in his new term there are a couple
of problems he will to deal with,
and although Japan is out of the
dangerous cycle of falling prices,
inflation is not yet at the target
2% in the second problem he must
sort is how to figure out how to
exit from the stimulus programme.
Thanks very much. Let's look quickly
at the markets. On the Nick Cave...
Up just over 1%. -- Nikkei. Things
going in the same direction within
the Japanese economy. The markets
here in Europe... London, the FTSE,
all opening up around half a
percent. A little bit more
correction to the big correction
taking place there.
Now the details about what's ahead
on Wall Street Today.
On Friday Kraft Heinz,
known for its ketchup,
Jello and Kool-Aid -
and for its brutal
cost-cutting regime -
is expected to report an increase
in profits for the past year.
The company, which is partly
owned by billionaire
investor Warren Buffett,
attempted to buy consumer goods
giant Unilever last year,
only to be quite swiftly rebuffed.
And the world's largest soup maker,
Campbells, whose iconic tins
were immortalised by Andy Warhol,
is expected to report a drop
in second-quarter profit.
It's been hurt, in part,
by harvest delays of one
of its key ingredients,
carrots, in California.
And Wall Street will be watching
to see whether monthly home-building
data picks up after a sharp
fall in December.
A fall in demand for homes can
have a ripple effect
on the construction industry,
on employment and the
wider retail economy.
Shaun Port is chief
investment officer at Nutmeg.
Good to have you with us. The UK is
trying to ensure it has alignment of
financial rules with the EU post
Brexit, why is that so significant
and how could it affect our kids?
Financial services are a big
employer in the UK and a bigger
contributor to the budget, with tax
receipts. Under EU rules there is
something called equivalents, we
could have similar rules covering a
third financial services and the EU
could revoke that with 30 days
notice. It's important to UK gets
alignment on the rules so financial
services can export to the EU.
early days. Getting the ball rolling
with mean something.
significant, the first time we've
heard anything from the government
on financial services given how
important it is to the UK economy.
Some things the UK needs to sort out
with the EU, probably a deal will
not happen until the last minute.
Just mentioned earlier the bank of
Japan, the governor staying in situ,
that seems to have gone down nicely,
it's part of the pattern and
Yes, it's good
news, it was expected, taken off in
extra area of risk, the Japanese
economy performing the strongest in
28 years, nearly Shinzo Abe wants to
continue the strong progress. It's
also very good for financial
markets, and mortgage rates here, it
has an impact, would you believe?
Right significant. Likely to be
disappointment in China over the
blocking of the Chicago stock
exchange, what do you think is going
It's the continuation of the
theme, purchases blocked, some
things in telecom, continuation of a
theme along the lines of President
Trump protectionist policy, anti
China when it comes to trade deals.
Continuation of a theme.
continue to watch. Thank you. Still
We catch up on the week's
business highlights -
including stellar growth
for the Eurozone.
You're with Business
Live from BBC News.
Mid-earners have being locked
out of buying a home,
according to a report out today
from the Institute
for Fiscal Studies.
With those aged 25 to
34-years-old hit the hardest.
Joining us now is Jonathan Cribb,
a Senior Research Economist
at the IFS and author
of the report.
In some ways no surprises here,
I don't think it's a great
surprise what we found but I think
it's important that we work out
exactly who is being most affected
by the increase in house prices that
has gone on in the UK over the last
20 years. And quite how that has fed
through to much lower home ownership
rates for mid-income people.
terms of the scale of all if you
like, the number of people looking
to buy, how dramatic is this?
really is romantic. For middle
income people, 20 years ago, about
two thirds of young middle income
people owned their own home, now
it's done to just over a quarter.
Look across the UK, falls by ten
percentage points or more in every
single region with the largest falls
coming in the Southeast, evolve from
about 64% down to 32% over the last
number of years.
How much further is
the curve likely to go down?
predict exactly. Some reasons to
think this fall might slow. In the
regions and nations of the UK,
except for London and the south-east
over the last ten years there's been
relatively little rules in house
prices when compared to incomes. You
might think the fault would continue
to slow down in those regions but in
London and the south-east, has
prices are outpacing income growth
and so we might continue to see
falls for those regions.
and growing interest interest rates,
thank you. Plenty of business
stories updated throughout the day.
Right now, dig up a road, pay a
fine, for those who hate those
roadworks, those interminable
roadworks. Councils can start fining
utility firms who dig up roads and
cause traffic congestion, read more
about that and Brees a sigh of
relief. That's all on the business
You're watching Business Live.
Our top story -
is Coca-Cola losing its fizz?
The drinks giant is releasing
its 4th quarter results in a few
hours amid a 12 year decline
in the US market for
carbonated soft drinks.
Let's look at how the markets in
Europe are faring. All of them are
in positive territory across the
main markets. That is the pound
against the dollar, well above the
And now let's get the inside track
on this weeks big business stories.
Andrew Walker our economics
correspondent is here.
The bond markets, T-cell off. Tell
Particularly in the United
States. We had news about inflation
in the US, people were expecting
Consumer Price Index inflation to go
to 2.9%, it didn't. That led
investors to think that maybe the
outlook for interest rates, the
Federal Reserve, is for more
increases than we were currently
expecting. As a result, bond yields
were rising, the longer term
interest rate which partly reflects
what people expect is going to be
the path of the Federal Reserve
interest rates over the coming
years. It is quite a move upwards in
what it costs, basically, to borrow
in the US.
You mentioned the
inflation rate in the US coming in
higher than expected. Normally,
people would conclude that increases
the likelihood of interest rates
going up and that then pushes the
It is more attractive to
invest in assets in the dollar.
it hasn't had that effect?
immediate impact was exactly what
you would expect, the dollar going a
little bit. It quickly reversed that
entirely. There was a bit of
reaction to retail sales figures
that came out the same time, and
perhaps there was a reflection that
we shouldn't attach too much
significance to one inflation
number. The Fed will be looking at a
lot of other things before it makes
a judgment on what to do. It is
striking, over the last year, the
dollar has actually been weakening.
Looking at what happens with
interest rates, you might expect it
to be moving in the opposite
direction. There is a bit of a
puzzle. There are theories about
what is going on, but it is not
We have spent so
much time focusing on South Africa
this weekend, we should perhaps look
at the economic prospects for a
country that has been considered not
far short of basket case by some
people. Have we suddenly had a flip?
Can you see investment rushing in,
Well, the markets
did respond positively to the
political development is. We had an
increase in the value of the rand,
quite a significant spike in the
Johannesburg stock exchange. The way
I put it is that they think the new
President has got a fighting chance
of making a worthwhile difference.
It is a big call to say that one
change of regime is really going to
fundamentally change everything.
Clearly, there must be hope. But you
are absolutely right that it has
been a pretty dismal period for the
South African economy. The average
growth over the last ten years has
been 1.4%. An emerging economy like
South Africa should be managing 4%
or 5%, that is what Malaysia and
Turkey have managed over that
period. China has done a great deal
better than that. It has absolutely
dreadful story to tell about
equality. We are far enough on from
the days of apartheid to hope that
they can bring it on. No question
that the President has a big agenda.
He also has some belief among
investors that he has got a chance
of making some progress.
rand strengthened. Even with the
best will in the world, suddenly
coming into office with clear ideas
about how to tackle the problems, it
is going to take time to turn it
And there is a formidable
agenda. Dealing with the government
finances, which are a bit weak, but
not catastrophically so, is easy. We
are going to have a budget quite
soon. There is an opportunity for
the regime to make progress there.
There are things like educational
reform. South Africa is a terrible
problem with many people who do not
have the basic skills they need to
make a really strong contribution to
the labour market. That partly
reflects the fact that a lot of
their teachers were themselves and
educated because they were trained
under apartheid. Dealing with that
kind of thing, absolutely, it takes
years to turn around.
Can I ask you
about the eurozone? It has been more
buoyant than previously, is that
going to continue?
The outlook is
pretty good, we saw the economy
growing a respectable 0.6% in the
final quarter of the year. Every
individual economy in the eurozone
we have had so far, the breakdown is
not compete so far, but every
economy was in positive territory. I
think there is cause for moderate
optimism. But there are weaknesses
in the eurozone, let's not get
Good to see you.
Today is the first day
of the Lunar New Year -
it's the biggest holiday celebrated
in countries like China, Vietnam,
South Korea, and Singapore.
And with the new year comes
a new Chinese zodiac -
the Year of the Dog.
Will it be the investor's
Our reporter Leisha Santorelli met
with Chinese astrologer Joey Yap
to get his predictions.
We are doing this interview in a
special place, Singapore's biggest
dog resort. That is because we want
to get your predictions for the
Chinese year of the dog.
many types, some are like this,
docile, happy and friendly. There
are dogs that are fierce and noisy.
This one is fierce and noisy, right?
You might get some volatility, a lot
of challenges, a lot of fights, just
like how an aggressive dog would be.
In the last few weeks we have seen
extreme volatility in the stock
market. Can we expect that to
At least for the first
half of the year.
For the global
economy, what is the outlook?
year of the dog, the strongest
element is wood, so those related
industries will be the strong as
headlines, agriculture, education,
palm oil and coffee, they are all
related to wood. The second element
is fire, so that as technology, oil
and gas, and we are seeing a return
on that now. That is the peak of
That was Joey Yap on the year of the
dog. Happy Chinese New Year!
We're going to look at some of the
tweets coming in with regard to
Coke, if it is good for you or bad
for you, if you are drinking less.
We gave them a bit of a hammering.
Adam says Coke Zero four May, with
lime, it tricks me into thinking it
has sugar, but I don't read that
Another, I have not had fizzy
drinks for about ten years. Water,
coffee or alcohol. Perhaps not the
healthiest, but there you go!
Alcohol with fresh fruit juice seems
to justify it.
I think the one that
caught my eye is only tonic in a gin
Lynne said she stops flu
stopped smoking and is now addicted
to Coca-Cola. Nicholas says tap
water, black coffee and black tea.
Where is the joy in that?
have Alan Haselhurst. He is a
Let's look at some of
these stories. The household sprays,
apparently that is as bad as air
Startling story, very
interesting. In LA, apparently
pollutants from household product is
a greater source of pollution than
cars. 42% of emissions are coming
from household products, sprays,
perfume is and the like. The
interesting facet of the story is
that it is bringing more awareness
that the things we buy have a
significant impact on the
environment, like water bottles.
Part of it is that there is a good
news element, that emissions from
petrol and diesel, the improvement
is so significant that it is
bringing it on a park, in terms of
these particular emissions. But what
struck me is that this includes
shampoo, products you just think are
clean and good for you. If we are
currently take it seriously we have
to have a fundamental rethink?
chemicals are designed to evaporate,
we do not see them. They are
designed to go into the environment.
There are some businesses that just
cannot's I mean, hotels, the
turnaround is they have four rooms,
they have no choice but to ask staff
to use these sprays, bleach,
That might be a marginal
case, but everyday household
products we can move to
environmentally friendly versions.
This one is on the BBC News business
page, £10,000 for everyone. Sounds
great? Anyone under 55, reports
suggesting if they introduce this
new universal wage to deal with the
threat to jobs, from automation?
Automation is an interesting angle.
It is for over 55s, the idea of a
basic income is attractive to
economists. How it would be funded
is quite difficult. Looking at the
Norway model, they have a lot of oil
receipts, very different from here.
Attractive for commerce, difficult
And they have a small
population to deal with, which
helps, the Norwegians. Have a lovely
And a great weekend to you
as well. We will be back soon.