Stocks fall…US tariffs hit EU goods…No-sugar drinks and innovations power Coke in 3Q
NEW YORK (AP) – Stocks are slipping in morning trading on Wall Street, weighed down by losses in technology companies. Investors are also absorbing the latest economic data showing that growth in China sank to a new multi-decade low. Some stocks are rising following solid earnings reports, including Coca-Cola and ETrade Financial. Oilfield services company Schlumberger (SHLUM’-bur-zhay) is also gaining, lifting energy stocks. The market is still on track for its second weekly gain after three straight losing weeks.
BEINE, France (AP) – French vintners are begging for government aid, Italian farmers are scrambling for new export markets and American shoppers are about to face supermarket sticker shock on European products. Some $7.5 billion in U.S. tariffs on European food, wine and other goods took effect today, in response to illegal EU subsidies to plane maker Airbus. The U.S. is also accused of illegal subsidies – to Boeing – and EU Trade Commissioner Cecilia Malmstrom is threatening to impose retaliatory tariffs on U.S. products.
ATLANTA (AP) – Coca-Cola is reporting strong third-quarter sales as it makes strides with new drinks like Coca-Cola Plus Coffee and no-sugar drinks. Revenue jumped 8% to $9.51 billion, edging out Wall Street expectations for $9.48 billion, according to a survey by Zacks Investment Research. The Atlanta company continues to book double-digit volume growth with drinks like Coca-Cola Zero Sugar.
TOKYO (AP) – Japan has decided not to join a U.S. coalition to protect commercial vessels in the Middle East, but will send its own force to ensure the safe shipment of oil to Japan. Japan’s energy needs rely heavily on oil imports. It has kept friendly ties with Iran and is reluctant to join such a force. Japanese Prime Minister Shinzo Abe (shin-zoh AH’-bay) has tried to help ease tension between Washington and Tehran.
BRUSSELS (AP) – European Union leaders have approved the appointment of Christine Lagarde as the next president of the European Central Bank. The former International Monetary Fund managing director will replace Mario Draghi (DRAHG’-ee), who has served as ECB president since 2011. Lagarde will take office on Nov. 1 and will serve a non-renewable term of eight years. The ECB sets monetary policy for the 19 countries that use the euro currency.