Coca-Cola to cut $1bn as profit slips
Coca-Cola said it would cut another $1bn in costs by 2016 as it reported an 8.4 per cent drop in fourth-quarter profit. Earnings at the world’s largest drinks company were hit in its latest quarter and in 2013 by the spin-off of its bottling operations in the Philippines and Brazil and by slowing sales growth.
Oversupply forces aluminium cuts
Two of the world’s three biggest aluminium producers have announced cuts to production in the latest sign of how weak prices and oversupply are weighing on the industry. US company Alcoa said on Monday it was shutting its 190,000 tonne-a-year Point Henry smelter in Australia since the plant had “no prospect of becoming financially viable”. Two rolling mills there will also be permanently closed. Alcoa’s total closures or curtailments to production now represent 551,000 tonnes of capacity, or about 1 per cent of world supply of the metal.
Australian warning over easy money
Australia’s finance chief has hit out at the US, Europe and emerging market economies, calling for the latter to wean themselves off the “morphine” of easy money and embrace reform, days before he is due to host his global peers at this weekend’s G20 talks. Joe Hockey, the Australian treasurer, also took a swipe at the US Congress for blocking budget increases.
New North Sea regulator planned
The government will next week back plans to create a tough new North Sea regulator to maximise production from the UK’s remaining oil and gas reserves. The independent regulator is set to receive powers to strip operators of their licences if they do not agree to share access to pipelines or co-ordinate development of large fields.
Investors issue warning to Cameron
Regulatory uncertainty could hit Britain’s ability to attract outside investment, some of the world’s most powerful institutional investors have told David Cameron.
The Daily Telegraph
Raising US min wage would cost jobs
Raising the US minimum wage would lead to the loss of about 500,000 jobs by late 2016 but lift almost 1m Americans out of poverty, the Congressional Budget Office forecast in a report that reignited debate over one of President Barack Obama’s top priorities this year.
Dubai’s $10bn debt deal eases fears
Dubai is poised to roll over a vital $10bn (£6bn) debt facility with the central bank of the United Arab Emirates at a lower rate of interest. Rolling over the debt, which is due at the end of this week, will soothe lingering concerns over the emirate’s ability to service its immediate debts.
THE WALL STREET JOURNAL
Central banks take advantage of calm
Turkey’s central bank held interest rates steady and Hungary cut rates for a 19th straight month while leaving the door open to do more, as central bankers took advantage of the recent calm in financial markets to shore up their economies.
Italian bank to raise new capital
Italy’s Banca Popolare di Vicenza Scpa is preparing to raise €1bn ($1.37bn) of new capital, the bank’s chairman has said, becoming the third Italian bank to try to shore up its finances ahead of upcoming regulatory reviews.