Jumat, 31 Januari 2020

Bayer considers new tactic in Roundup settlement talks - Reuters

(Reuters) - As Bayer AG (BAYGn.DE) tries to settle U.S. lawsuits claiming that its weedkiller Roundup causes cancer, the company is considering a proposal that would bar plaintiffs’ lawyers involved in the litigation from advertising for new clients, according to a person familiar with the matter.

FILE PHOTO: The logo of Bayer AG is pictured outside a plant of the German pharmaceutical and chemical maker in Wuppertal, Germany August 9, 2019. REUTERS/Wolfgang Rattay

Bayer has said it is engaged in mediation to resolve the litigation, which has hit its share price since it acquired Roundup as part of its $63 billion takeover of Monsanto in 2018.

The company has denied claims that Roundup or its active ingredient glyphosate causes cancer, saying decades of independent studies have shown the product is safe for human use.

The person said that Bayer believes an agreement with plaintiffs’ attorneys to ban advertising would limit the company’s future legal exposure since the “vast majority” of U.S. law firms that would bring such claims would be bound by the agreement.

Bayer declined to comment.

German newspaper Handelsblatt reported on Thursday that Bayer was considering stopping retail sales of glyphosate while continuing to serve farmers, because the bulk of plaintiffs are private users. Bayer did not comment to Reuters on this report.

The company has ruled out putting a cancer warning on the weedkiller because market regulators such as the U.S. Environmental Protection Agency have deemed it save to use, but that means lawsuits could keeping piling in.

In October, Bayer largely blamed law firms’ TV ad campaigns for the more than doubling of U.S. plaintiffs seeking damages to 42,700 within just three months.

A provision such as the one the company is considering could result in “dramatically fewer claims” so that the litigation is no longer a “big drag on Bayer’s balance sheet,” said David Noll, a professor at Rutgers Law School and expert in mass torts, who is not involved in the litigation.

In January, court-appointed mediator Ken Feinberg put the number of Roundup cancer claimants at more than 75,000, which includes those that have not been filed. Bayer said the claims it has been served with in court were below 50,000.

While such a provision is unusual, there is precedent.

As part of a 2013 settlement between Merck & Co and plaintiffs claiming the company’s Fosamax osteoporosis drug caused jaw injury, lawyers pledged that they did not intend to “solicit claims” that arose after the settlement.

Perry Weitz of Weitz & Luxenberg, one of the leading plaintiffs’ firms involved in the Roundup litigation, criticized an idea to bar firms from advertising for future clients.

“A company cannot ask a lawyer to enter an agreement to restrict his practice in the future,” he said.

He said there had not been “serious discussions about future cases,” but declined to elaborate.

Michael Miller of The Miller Firm, another major party in the talks, said that “it is possible, if done correctly, to manage the exposure to future claims.” He declined to elaborate. Three other plaintiffs firms who have brought the bulk of the claims - Baum Hedlund Aristei & Goldman; Andrus Wagstaff PC; Holland Law Firm - declined to comment. Moore Law Group PLLC did not respond to requests for comment.

Bayer’s shares have lost about 20% of their value since August 2018 when a California jury in the first lawsuit over Roundup found Monsanto should have warned of the alleged cancer risks. Bayer has lost two more jury verdicts and is appealing all three rulings.

Editing by Noeleen Walder and Edward Tobin

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2020-01-31 15:33:00Z
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There's a new kind of Coke on shelves. You'll be forgiven if you missed it - CNN

Four varieties, including Coke Energy, Coke Energy Zero Sugar, Coke Energy Cherry and Coke Energy Cherry Zero Sugar, recently reached US retail shelves. The Coke-energy-drink hybrid beverage became available in international markets last year.
Coke Energy, which is made with guarana extracts and B-vitamins, has 114 mg of caffeine per 12-ounce serving. A 12-ounce can of regular Coke has about 34 mg of caffeine. But the two products should taste about the same.
"It's the energy you want and the taste you love," Geoff Cottrill, senior vice president of strategic marketing at the company, told CNN Business, adding that the proposition is "very simple and very direct."
Coke Energy landed on US retail shelves earlier this month.
It may seem like an unusual drink, but it's an important part of Coke's strategy: Coca-Cola has been diversifying its portfolio of beverages while innovating its core product.
So far, the product may have flown under the radar. But Coke is planning a splashy US rollout for the drink.
"We're putting the full marketing muscle behind our Coke Energy launch in the US," CEO James Quincey said during a call discussing the fourth quarter and full year financial results Thursday.
To ensure Americans are aware of the energy drink, Coca-Cola is advertising the product during the Super Bowl. It also plans to offer samples across the country.
Americans will get a slightly different version of the drink than people in other places around the world, Quincey said, describing it as a "version 2.0." The US version will taste more like classic Coca-Cola, while the international version is more citrusy, he said.
People are increasingly seeking functional beverages, which offer an added nutritional or practical benefit, like a boost of energy.
Coke Energy and Coke Plus Coffee, which is made with real coffee and is more caffeinated than regular Coke, could help those consumers from losing interest in cola, Coca-Cola's most important product. Expanding the Coke portfolio is also a way to give diehard Coke fans more options.
The efforts are paying off so far.
Coca-Cola thinks Americans are finally ready for Coke with coffee
Last year, trademark Coke, which includes variations on the classic cola, popped 6% in terms of retail value globally, driven in part by Coca-Cola Zero Sugar. The company reported overall net revenue growth of 16% for the quarter and 9% for the year. Its stock jumped about 3% on the news during trading hours Thursday.
The energy category in particular is a good bet for Coke.
US energy drinks and shots sales amounted to about $13.5 billion in 2018, a growth of about 30% from 2013, according to the research company Mintel. The market will continue to grow, according to Mintel's projections.
"We're looking to expand the access to the energy category, and we think Coke can do that," Quincey said. Coca-Cola already has a distribution agreement with Monster Energy.
Coca-Cola is also leaning into other trends with product launches, revamps and acquisitions.
AHA, the company's new caffeinated flavored seltzer water brand, reaches shelves in March. Powerade, the sports drink made by Coca-Cola, is redesigning packages and launching new products this winter. And earlier this month, Coca-Cola announced the acquisition of Fairlife, which sells lactose-free milk, to cash in on interest in specialty dairy drinks.

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2020-01-31 14:44:00Z
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Here’s the daring way Europe’s largest fund manager is reacting to the coronavirus outbreak - MarketWatch

There is considerable debate whether to “buy the dip” or not as financial markets react to the coronavirus outbreak.

Amundi Asset Management, Europe’s largest fund manager with €1.45 trillion ($1.6 trillion) in assets under management, is taking it one step further, and saying it sees opportunities in emerging market equities.

“Unless the ‘elevated uncertainty’ is able to derail the global economy into a shock—which is not our scenario now—excessive downward setbacks in prices could provide entry points for asset classes with attractive valuations and good fundamentals. In particular, we see selective opportunities in EM [emerging market] equity given the reacceleration of earnings growth, attractive valuations and the prospect of a weaker U.S. dollar DXY, -0.17%. The short-term issue due to the Chinese situation is an opportunity to add to this asset class, barring any disruption to the global outlook,” said Pascal Blanqué, Amundi’s chief investment officer.

In particular, the firm is recommending emerging markets that are relatively insulated from the virus and can benefit from either strong domestic demand or the continuing shift in the value chain.

“For example, we expect strong growth to remain in Vietnam, activity to slightly rebound in Indonesia and, the Singapore economy to benefit from stabilization and the eventual pickup of industrial production and global trade,” he wrote. On China, Amundi recommended being more cautious on vulnerable sectors such as hospitality and aviation, as well as tourism-related companies sensitive to Chinese demand.

Also see: Mark Mobius says he’s boosting emerging-market bets

The buzz

The State Department warned Americans not to travel to China in the wake of the coronavirus, even as the World Health Organization said there was no need to cut off travel. The U.K. reported its first two cases.

The technology sector was in focus on two major stories. Amazon AMZN, +0.68%  was on track toward a $1 trillion valuation after reporting a $3.3 billion quarterly profit on stronger-than-forecast holiday sales. IBM IBM, -0.67%  announced Ginni Rometty’s eight-year run as chief executive will end and that she’ll be replaced by Arvind Krishna, who currently runs the cloud division.

Reynolds Consumer Products REYN, +0.00%  said late on Thursday it priced its initial public offering at $26 a share, raising $1.2 billion. World Wrestling Entertainment WWE, +2.23%  may stumble after the resignation of its two co-presidents.

Oil giants Exxon Mobil XOM, +1.06%  and Chevron CVX, +0.93%  both reported stronger-than-expected.

A wave of U.S. data showed steady wage growth and spending that slightly outpaced income. Chinese PMI data didn’t disappoint, though the survey period was largely before the spread of the coronavirus. South Korean and Japanese industrial production improved, while the eurozone economy barely grew in the final three months of the year.

On the political front, the U.K. officially exits the European Union on Friday night, though the relationship will be largely unchanged until the end of the year. The remaining drama from the impeachment trial ended on Thursday night as Sen. Lamar Alexander said he opposes calling witnesses, likely sealing a quick end.

The markets

U.S. stock futures ES00, -0.42%  declined on Friday, after three consecutive gains for the Dow Jones Industrial Average DJIA, +0.43%.

Gold GC00, -0.28%  edged lower while crude oil CL.1, +0.38%  inched up.

Asian stocks ADOW, -0.30%  rose and European stocks SXXP, -0.29%  fell.

Random reads

The 2011 thriller Contagion has surged into the iTunes Top 10 U.K. movie rental chart because of the coronavirus.

Sweet home, Alabama—suddenly, the Yellowhammer state is near the top of the rankings for incoming U-Haul trucks.

Neil Young compared the MacBook Pro’s audio capabilities to Fisher-Price’s.

Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. Be sure to check the Need to Know item. The emailed version will be sent out at about 7:30 a.m. Eastern.

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2020-01-31 13:42:00Z
CAIiEN8wJWPody0bpX18dcla5kkqGAgEKg8IACoHCAowjujJATDXzBUwiJS0AQ

Here’s the daring way Europe’s largest fund manager is reacting to the coronavirus outbreak - MarketWatch

Need to Know

By Steve Goldstein

Published: Jan 31, 2020 7:18 am ET

An aerial view shows commercial and residential buildings in central Singapore, June 22, 2019.

An aerial view shows commercial and residential buildings in central Singapore, June 22, 2019.

There is considerable debate whether to “buy the dip” or not as financial markets react to the coronavirus outbreak.

Amundi Asset Management, Europe’s largest fund manager with €1.45 trillion ($1.6 trillion) in assets under management, is taking it one step further, and saying it sees opportunities in emerging market equities.

“Unless the ‘elevated uncertainty’ is able to derail the global economy into a shock—which is not our scenario now—excessive downward setbacks in prices could provide entry points for asset classes with attractive valuations and good fundamentals. In particular, we see selective opportunities in EM [emerging market] equity given the reacceleration of earnings growth, attractive valuations and the prospect of a weaker U.S. dollar DXY-0.06% The short-term issue due to the Chinese situation is an opportunity to add to this asset class, barring any disruption to the global outlook,” said Pascal Blanqué, Amundi’s chief investment officer.

In particular, the firm is recommending emerging markets that are relatively insulated from the virus and can benefit from either strong domestic demand or the continuing shift in the value chain.

“For example, we expect strong growth to remain in Vietnam, activity to slightly rebound in Indonesia and, the Singapore economy to benefit from stabilization and the eventual pickup of industrial production and global trade,” he wrote. On China, Amundi recommended being more cautious on vulnerable sectors such as hospitality and aviation, as well as tourism-related companies sensitive to Chinese demand.

Also see: Mark Mobius says he’s boosting emerging-market bets

The buzz

The State Department warned Americans not to travel to China in the wake of the coronavirus, even as the World Health Organization said there was no need to cut off travel. The U.K. reported its first two cases.

The technology sector was in focus on two major stories. Amazon AMZN+0.68%  was on track toward a $1 trillion valuation after reporting a $3.3 billion quarterly profit on stronger-than-forecast holiday sales. IBM IBM-0.67%  announced Ginni Rometty’s eight-year run as chief executive will end and that she’ll be replaced by Arvind Krishna, who currently runs the cloud division.

Reynolds Consumer Products REYN  said late on Thursday it priced its initial public offering at $26 a share, raising $1.2 billion. World Wrestling Entertainment WWE+2.23%  may stumble after the resignation of its two co-presidents.

Oil giants Exxon Mobil XOM+1.06%  and Chevron CVX+0.93%  report results.

The economics calendar features the employment cost index, personal income and Chicago purchasing managers index data. Chinese PMI data didn’t disappoint, though the survey period was largely before the spread of the coronavirus. South Korean and Japanese industrial production improved, while the eurozone economy barely grew in the final three months of the year.

On the political front, the U.K. officially exits the European Union on Friday night, though the relationship will be largely unchanged until the end of the year. The remaining drama from the impeachment trial ended on Thursday night as Sen. Lamar Alexander said he opposes calling witnesses, likely sealing a quick end.

The markets

U.S. stock futures ES00-0.33%  declined on Friday, after three consecutive gains for the Dow Jones Industrial Average DJIA+0.43%

Gold GC00-0.33%  edged lower while crude oil CL  inched up.

Asian stocks XX:ADOW-0.32%  rose and European stocks XX:SXXP-0.36%  fell.

Random reads

The 2011 thriller Contagion has surged into the iTunes Top 10 U.K. movie rental chart because of the coronavirus.

Sweet home, Alabama—suddenly, the Yellowhammer state is near the top of the rankings for incoming U-Haul trucks.

Neil Young compared the MacBook Pro’s audio capabilities to Fisher-Price’s.

Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. Be sure to check the Need to Know item. The emailed version will be sent out at about 7:30 a.m. Eastern.

Follow MarketWatch on Twitter, Instagram, Facebook.

See original version of this story

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2020-01-31 11:20:00Z
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As the coronavirus spreads, fear is fueling racism and xenophobia - CNN

The headlines drew immediate outrage. Readers accused the paper of using ignorant and offensive language.
"Yellow Peril" was an old racist ideology that targeted East Asians in Western countries. The phrase embodies the worst of anti-Asian fears and stereotypes, which have plagued immigrant communities since the first waves of Chinese immigration to the United States began in the 19th century.
In the US, government propaganda and pop culture at the time spread wildly racist and inaccurate images of Chinese people as unclean, uncivilized, immoral, and a threat to society.
To invoke the term now, in a story about death and illness in Asia, seems thoughtless at best and blatantly racist at worst.
The newspaper apologized quickly and said they had no intention of perpetuating "racist stereotypes of Asians." But the damage is not so easily undone, and the paper is not the sole culprit -- merely the latest in a wave of anti-Chinese sentiment as the coronavirus spreads worldwide.
The escalating global health crisis has claimed more than 200 lives -- all in China -- and infected close to 10,000 people worldwide. As they seek to contain the virus, authorities in multiple countries are balancing the need for warnings against the risk of creating global panic.
However, there are signs that's already happening, with face masks selling out in stores and people locking themselves at home. Some people in central China -- the epicenter of the outbreak -- are desperately taking any flight out, regardless of destination, as governments worldwide suspend flights from China and impose restrictions on travelers from the mainland.
But the panic has also taken another, more familiar form -- the re-emergence of old racist tropes that portray Asians, their food, and their customs as unsafe and unwelcome.

As panic spreads, so does racism

As news of the virus has spread, many people of Asian descent living abroad say they have been treated like walking pathogens.
Writing for the UK's Guardian newspaper, one British-Chinese journalist in London said a man quickly moved seats when he sat down on a bus.
A Malaysian-Chinese social worker experienced the same thing on a London bus this week. "A couple people at an East London school I work in have asked me why Chinese people eat weird food when they know it causes viruses," she told CNN.
In Canada, there have been reports of Chinese children being bullied or singled out at school. In New Zealand -- where there are no confirmed coronavirus cases -- a Singaporean woman says she was confronted and faced racist harassment in a mall.
These instances echo a long history of racism in the West. During the Yellow Peril era, anti-Chinese fears led to lynchings of Chinese immigrants, racial violence, systemic discrimination -- even an outright ban on Chinese immigrants for 61 years in the US under the country's Exclusion Act.
That's why the term "Yellow Peril," which contains centuries of trauma, is so charged -- and why the use of it in a contemporary headline was so stunning.
However, this time around anti-Chinese racism is spreading beyond the West. In Vietnam, signs have been seen outside restaurants declaring "No Chinese." The tourist who took the photo told CNN the sign appeared in the past week. Similar signs were also posted outside a Japanese shop, turning away Chinese customers.
And people online from various different places are making racially driven jokes; when TV host James Corden posted a photo with Korean-pop band BTS, one person tweeted, "BREAKING: James Corden dies of the coronavirus." The joke racked up nearly 25,000 likes on Twitter.
Signs outside restaurants in Hoi An, Vietnam, taken in January 2020.

Targeting Chinese food

Perhaps the most widespread form of xenophobia comes in fearmongering, sensationalist stereotypes about Chinese food.
The novel coronavirus is believed to have started in a Wuhan seafood and wildlife market, and scientists have pointed to bats and snakes as possible virus carriers. And while the wildlife trade poses legitimate problems, the outbreak has prompted a racially tinged wave of disgust toward Chinese food, and anger from many who accuse Chinese people of recklessly causing a potential global pandemic.
"Because of some folks in China who eat weird (foods) like bats, rats, and snakes, the entire world is about to suffer a plague," said one popular tweet.
This idea has been reinforced by recent media coverage of the coronavirus, some of which has featured misleading videos or photos. One widely shared video, of a Chinese travel blogger eating bat soup, was filmed three years ago in the Pacific island nation of Palau, and the dish has been sampled by Western TV hosts in the past.
The video and the blogger have no connection to Wuhan or the current outbreak -- but the video has gone viral nonetheless, with many Western viewers expressing horror on social media. There was such an uproar that the blogger came forward to apologize last week.
What viral misinformation and breathless media coverage often miss is that only a small minority of people in China actually eat wild animals. Most people eat much of the same things you would see in other cuisines, like pork or chicken. Ultimately, what people like to eat is culturally relative -- a lot of the Western disgust toward "weird" Chinese food is itself Eurocentric.
That's not to say all criticism of Chinese food is invalid; the country does have a problem with badly-regulated trade of wild animals, which has led to previous outbreaks.
Chinese officials crack down on wildlife markets as coronavirus outbreak nears 3,000 cases
The deadly 2003 outbreak of severe acute respiratory syndrome (SARS) was traced to the civet cat, considered a delicacy in southern China. And though the government has introduced some measures limiting wildlife trade, it has been reluctant to take more aggressive action, and illegal trade continues.
It's also difficult to end these practices because of the cultural significance and prevalence of traditional Chinese medicine. Many of these wild animals are thought to hold important medicinal properties -- for instance, people drink snake soup for arthritis and snake bile for a sore throat.
There is undoubtedly a larger issue that needs to be addressed -- how the government can balance tradition with safer regulations.
But the beliefs and customs that drive consumption of these foods are centuries old and interwoven in peoples' lives -- they are not so easy to undo, even less so when they are dismissed as primitive and unclean by foreign countries.

'Standing with our Chinese community'

Right now, we are only seeing early signs of a xenophobic backlash against the East Asian diaspora -- tasteless jokes online, bad headlines, people acting fearfully in public. But if the 2003 SARS epidemic is any model to go by, these strands of xenophobia could potentially escalate into more dangerous, explicit forms of racism.
At the peak of the 2003 outbreak, people of Asian descent were treated like pariahs in the West. There were reports of white people covering their faces in the presence of Asian coworkers, and real estate agents who were told not to serve Asian clients.
Asian people suffered threats of eviction, had job offers rescinded with no explanation, and some Asian Canadian organizations received outright hate messages. Chinese and Asian businesses suffered heavy losses; in Boston, an April Fool's hoax falsely warned of infected employees at a Chinese restaurant, reportedly causing a 70% drop in the restaurant's business.
An employee of an empty Chinatown restaurant in Chicago on April 24, 2003, as fears over the SARS epidemic kept customers away.
This all happened 17 years ago, when China was still slowly opening up. Now it's an emerging superpower, and its role in a range of recent conflicts -- the ongoing US-China trade war, security concerns surrounding telecommunications company Huawei, allegations of Chinese spies in America and Australia -- mean that many in the West already view China with greater suspicion and tension than they did before.
Add the threat of a global pandemic, and a wave of heightened discrimination could be even uglier this time around.
Diaspora communities and local authorities are preparing for this, with many trying to calm fear before it becomes hysteria. In France, the newspaper controversy sparked a social media campaign, with many French Chinese citizens using the hashtag #JeNeSuisPasUnVirus -- I am not a virus.
In a statement confirming the first case of coronavirus in Los Angeles this week, the local health department stressed that "people should not be excluded from activities based on their race, country of origin, or recent travel if they do not have symptoms of respiratory illness."
The head of Toronto Public Health also warned that misinformation about the virus had created "unnecessary stigma against members of our community."
"I am deeply concerned and find it disappointing that this is happening," said the head, Eileen de Villa, in a statement Wednesday. "Discrimination is not acceptable. It is not helpful and spreading misinformation does not offer anyone protection."
Toronto Mayor John Tory also spoke out this week about the coronavirus panic. "Standing with our Chinese community against stigmatization and discrimination," he said. "We must not allow fear to triumph over our values as a city."

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2020-01-31 06:59:00Z
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Kamis, 30 Januari 2020

Dow Jones Today, Stocks Pare Opening Losses; Microsoft, ServiceNow Rally; Facebook Dives - Investor's Business Daily

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  1. Dow Jones Today, Stocks Pare Opening Losses; Microsoft, ServiceNow Rally; Facebook Dives  Investor's Business Daily
  2. Stocks fall as coronavirus death toll rises, Facebook shares tumble  CNBC
  3. World markets tumble as fears over virus outbreak spread  Yahoo Finance
  4. Recovery From Monday's Gaps; NASDAQ And Dow At Channel Support  Investing.com
  5. Stock market live updates: Dow falls 150, Facebook is biggest loser, GDP not great  CNBC
  6. View full coverage on Google News

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2020-01-30 14:59:00Z
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Wanted: 3 men accused of helping Carlos Ghosn escape Japan in a case - CNN

The Tokyo Prosecutor's Office said in a statement Thursday that Ghosn left Japan illegally without permission from the immigration office on December 29.
The prosecutor also alleges that three foreign nationals — Michael Taylor, George-Antoine Zayek, and Peter Maxwell Taylor — helped Ghosn move from Tokyo to Osaka. The statement adds the three collaborators hid Ghosn in "luggage" and helped him go through the security area at Kansai International Airport without the knowledge of ground staff.
Ghosn then left Japan on a private jet, according to the Tokyo Prosecutor's Office, and later fled to Lebanon.
The arrest warrants were issued for the suspected violation of Japanese immigration law and violation of criminal law for "hiding criminals."
Carlos Ghosn: Reports of my escape are inaccurate
Ghosn was first arrested in Japan in November 2018 and subsequently charged with financial misconduct and abusing his position while chairman of automaker Nissan (NSANF). He was eventually released on bail in April 2019, under strict conditions, including that he remain in Japan.
The Tokyo Prosecutor's Office did not disclose the nationalities of the three named individuals, but according to reports from the Wall Street Journal and Bloomberg, Taylor is a former US Green Beret and private security expert and Zayek is a Lebanese-born private security expert.
In an interview in mid-January, Taylor would not confirm the scope of his involvement but said Ghosn's legal case resonated with him because of his previous experiences with the US judicial system, according to the Wall Street Journal.
CNN has not been able to contact the three individuals named by the Tokyo Prosecutor's Office. CNN has reached out to the Ghosn family for comment.
Renault tries to leave the Carlos Ghosn era behind by hiring an outsider as CEO
Ghosn, who resigned as chairman and CEO of Renault (RNLSY) in the wake of his arrest, told CNN Business earlier this month that he made the decision to flee Japan several weeks ago after determining he wouldn't receive a fair trial.
"I didn't leave Japan to hide somewhere," Ghosn said. "I left Japan because I'm looking for justice and I want to clear my name," he said, claiming he was nervous but felt he had "nothing to lose."
Asked about media reports that he made it past Japanese authorities and onto a private plane by hiding in a box used to store audio equipment, Ghosn chuckled. He initially declined to comment, before continuing to CNN's Richard Quest: "Freedom, no matter the way it happens, is always sweet."
Ghosn also said he felt bad that people who aided his escape could face potential prosecution. But everyone involved knew what could happen, he said.
"We knew from the beginning what are the risks, you know, involved [in] an operation like this," Ghosn said. "We all knew that. I knew what were my risks, I knew what were the risks of all the people who supported the operation."
— Sherisse Pham contributed reporting.

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2020-01-30 14:10:00Z
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U.S. economy grew 2.3 percent in 2019, the slowest of Trump’s presidency - The Washington Post

Growth was 2.1 percent in the final three months of the year, better than economists expected and a sign the economy is not falling into a recession. But it is a pace that has been typical of this decade-long recovery and it was helped by a big decline in imports as companies had rushed to bring in goods from China before Trump’s latest tariffs went into effect in September. Growth was 2.1 percent in the third quarter and 2 percent in the second.

The U.S. economy is largely driven by consumer spending, and American households continued to buy goods and experiences at a steady pace. Numerous polls and surveys show that consumer confidence is high because Americans believe it is easy to get a job and their incomes are likely to stay the same or improve in the coming months.

Government spending has also increased under Trump, providing a boost to economic growth. The deficit neared $1 trillion in 2019, an unprecedented level during good economic times when there is not a major war effort underway. Trump’s tax cuts and additional funding for the military and domestic programs have pushed the gap wider.

Despite the additional government stimulus, Trump has yet to achieve a year of 3 percent economic growth as he vowed before taking office. Trump has repeatedly blamed the Federal Reserve for the shortfall, but most economists say Trump’s escalating trade war and weak growth abroad were major drag on the economy last year. The ongoing fallout at Boeing after the two 737 Max plane crashes also dampened growth since Boeing is usually the largest U.S. exporter but orders dried up after the tragedies.

“The United States is by far the strongest economic power in the world,” Trump said in a speech last week at the World Economic Forum in Davos, Switzerland. “It’s despite the fact that the Fed has raised rates too fast and lowered them too slowly.”

But economists point out that companies have a lot of cash on hand and the Fed has set interest rates at relatively low levels, meaning firms aren’t struggling for money right now. Instead, business confidence plummeted over the summer as Trump escalated his trade war with China and threatened to hit Mexico with extensive tariffs. Business investment outside of housing shrank 1.5 percent in the fourth quarter, 2.3 percent in the third quarter and 1 percent in the second quarter of last year.

Trump has frequently boasted about the economy’s performance since his election. Growth so far during his tenure in office has exceeded the average under President Obama’s and President George W. Bush’s first or second terms, but it is not unprecedented growth. Growth under President Clinton and President Reagan both exceeded Trump’s average so far.

Economists caution against giving presidents too much credit for economic growth, but surveys show voters often feel otherwise. Late last year, a Washington Post-ABC News poll found 44 percent of Americans said the economy had improved under Trump, and among that group, nearly 4 in 5 said he deserves at least a good amount of the credit.

Gross Domestic Product represents all of the more than $20 trillion of goods and services produced in the U.S. last year, with adjustments for things like international trade and business inventories. The preliminary estimate released this month is the culmination of a yearlong effort to measure everything from fenders to blenders that U.S. consumers and firms have purchased or produced this year. It will be revised in the coming months as more information rolls in.

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2020-01-30 13:54:00Z
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U.S. economy grew 2.3 percent in 2019, the slowest of Trump’s presidency - The Washington Post

Growth was 2.1 percent in the final three months of the year, better than economists expected and a sign the economy is not falling into a recession. Growth was 2.1 percent in the third quarter and 2 percent in the second.

The U.S. economy is largely driven by consumer spending, and American households continued to buy goods and experiences at a rapid pace. Numerous polls and surveys show that consumer confidence is high because Americans believe it is easy to get a job and their incomes are likely to stay the same or improve in the coming months.

Government spending has also increased under Trump, providing a boost to economic growth. The deficit neared $1 trillion in 2019, an unprecedented level during good economic times when there is not a major war effort underway. Trump’s tax cuts and additional funding for the military and domestic programs have pushed the gap wider.

Despite the additional government stimulus, Trump has yet to achieve a year of 3 percent economic growth as he vowed before taking office. Trump has repeatedly blamed the Federal Reserve for the shortfall, but most economists say Trump’s escalating trade war and weak growth abroad were major drag on the economy last year. The ongoing fallout at Boeing after the two 737 Max plane crashes also dampened growth since Boeing is usually the largest U.S. exporter but orders dried up after the tragedies.

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2020-01-30 13:34:00Z
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Coca-Cola meets earnings estimates - CNBC

A man walks past shelves of Coca-Cola bottles and cans at a shopping mall in Lagos, Nigeria November 5, 2019.

Temilade Adelaja | Reuters

Coca-Cola on Thursday reported quarterly revenue that topped analysts' expectations as new products under its namesake brand boosted sales.

Shares of the company rose 2% in premarket trading.

Here's what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: 44 cents, adjusted, vs. 44 cents expected
  • Revenue: $9.1 billion vs. $8.9 billion expected

The beverage giant reported fiscal fourth-quarter net income of $2.1 billion, or 47 cents per share, up from $870 million, or 20 cents per share, a year earlier.

Excluding items, Coke earned 44 cents per share, meeting expectations of analysts surveyed by Refinitiv.

Net sales rose 16% to $9.1 billion, topping expectations of $8.9 billion. New products, such as Coke Plus Coffee and the expansion of Coke Zero Sugar, lifted sales during the quarter. The company also benefited from an extra day in the quarter and more customers buying higher priced products.

Global organic revenues increased 7% during the quarter.

In 2020, Coke is forecasting that organic revenue will grow by 5% and adjusted earnings per share will increase by 7% to $2.25. Its earnings outlook falls one cent below analysts' estimate of $2.26 a share for fiscal 2020.

Read the full press release here.

This story is developing. Please check back for updates.

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2020-01-30 11:31:00Z
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Japan Issues Arrest Warrants for Three Men Suspected of Helping Ghosn Escape - The Wall Street Journal

Carlos Ghosn in Beirut on Jan. 8. Photo: mohamed azakir/Reuters

TOKYO—A Japanese court on Thursday issued arrest warrants for three Americans who prosecutors said were suspected of helping former Nissan Motor Co. NSANY -0.64% Chairman Carlos Ghosn escape Japan in late December by hiding inside luggage.

Tokyo prosecutors said former Green Beret Michael Taylor, 59, and his son Peter Taylor, 26, as well as Lebanese-born U.S. citizen George Zayek, 60, were suspected of violating Japan’s immigration-control laws. The three didn’t immediately respond to a request for comment.

In a statement, prosecutors confirmed the widely reported outlines of Mr. Ghosn’s daring escape, saying he hid in a piece of luggage and boarded a private jet that departed Kansai International Airport in Osaka at about 11 p.m. on Dec. 29. Tokyo deputy chief prosecutor Takahiro Saito also described for the first time what he said was the central role played by the younger Mr. Taylor.

Carlos Ghosn Details Why He Escaped Japan

Former automotive executive Carlos Ghosn said he “fled injustice” in Japan. WSJ’s Chip Cummins explains what a recent crowded press conference in Beirut tells us about Mr. Ghosn’s next steps. Photo: Maya Alleruzzo/Associated Press

Mr. Saito said Peter Taylor came to Japan in the summer of 2019 and met Mr. Ghosn four times at the office of Mr. Ghosn’s Japanese lawyer in Tokyo. Peter Taylor and Mr. Ghosn met again on Dec. 6 and Dec. 28, the day before Mr. Ghosn’s escape, according to the prosecutor, who declined to give the location of those meetings. He said authorities believed the meetings were to plan an escape.

Mr. Saito said he believed Mr. Taylor handed Mr. Ghosn a key to a Tokyo hotel room at the Dec. 28 meeting. On the afternoon of the next day, Mr. Ghosn went to the hotel from his Tokyo house and let himself into a room reserved by Mr. Taylor, the prosecutor said. Mr. Ghosn changed his clothes at the hotel before heading to Osaka, prosecutors said.

Michael Taylor and Mr. Zayek accompanied Mr. Ghosn to the Kansai airport and onto the private jet, Mr. Saito said, confirming earlier reports in The Wall Street Journal. He didn’t say what Peter Taylor did after helping Mr. Ghosn prepare for the journey, but a Japanese magazine called Friday said an American in his 20s resembling Peter Taylor took a taxi to Tokyo’s Narita Airport from the Tokyo hotel and left the country.

At the Kansai airport, Mr. Ghosn sneaked onto the private jet by hiding inside luggage, evading the immigration officers who normally check those departing the country, and flew to Turkey en route to Lebanon, prosecutors said.

Prosecutors didn’t specify the type of luggage in which Mr. Ghosn hid, but The Wall Street Journal has reported it was a black box normally used to carry musical equipment.

Mr. Ghosn was living in Tokyo awaiting trial on financial charges before his escape. After spending 130 days in jail over two separate stints, he was freed on bail in April 2019. He was permitted to travel within Japan but was barred by the Tokyo District Court from leaving the country.

Mr. Saito, the prosecutor, said a raid Wednesday on the office of former Ghosn lawyer Junichiro Hironaka, in which prosecutors broke open drawers to view documents, was aimed at gathering evidence against Peter Taylor.

Mr. Ghosn has said he is innocent of the charges against him. Citing his lengthy detention after his arrest and Japan’s conviction rate of more than 99% for people charged with a crime, he has said he couldn’t get a fair trial in Japan and fled injustice. Another former lawyer for Mr. Ghosn, Takashi Takano, has said he understands why Mr. Ghosn chose to flee given what he described as the Japanese justice system’s bias in favor of prosecutors.

Mr. Saito said people who expressed such views were spreading lies. He said his office, which typically doesn’t announce the issuance of arrest warrants, made an exception in the case of the alleged Ghosn collaborators to make clear its view that the escape was a crime and Mr. Ghosn should have stayed in Japan to face trial.

Write to Peter Landers at peter.landers@wsj.com

Copyright ©2019 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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2020-01-30 09:47:00Z
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The Hang Seng is down 5% in two days and the yuan is slumping as the coronavirus spreads - CNN

The Hang Seng (HSI) slid 2.6% on Thursday, adding to losses posted Wednesday when investors returned from an extended break over the Lunar New Year and subjected the index to its worst trading session in months.
In total, the index has fallen more than 6% this month.
The yuan tumbled in offshore trading, briefly breaking below the 7 yuan per US dollar mark for the first time this year. That amount is considered to be a psychologically important marker — when the yuan crossed that threshold last year, markets were briefly rattled.
The currency was last trading offshore, where it moves more freely than on the mainland, at 6.997 yuan per US dollar.
Japan's Nikkei 225 (N225) and South Korea's Kospi (KOSPI) each ended down 1.7% Thursday. Among other Asian markets, Taiwan's benchmark Taiex sank 5.8%, making it the biggest loser in the region.
European stocks and US futures are also falling. The Dow (INDU), S&P 500 (SPX) and Nasdaq Composite (COMP) were all down roughly 0.6%.
The coronavirus crisis keeps escalating. It has now left 170 people dead in mainland China. Mainland China also has more than 7,700 confirmed cases of the virus, with dozens more worldwide.
Airlines around the world have suspended flights to China in response. And analysts have said the virus could hurt China's economy.
"We expect Asian investors to remain focused on the downside risk from the coronavirus outbreak for now as the number of confirmed cases continue to rise, albeit the majority of them in China," said Tai Hui, Asia chief market strategist for JP Morgan Asset Management.
US Federal Reserve Chairman Jerome Powell, meanwhile, said Wednesday that the central bank is "carefully" monitoring the coronavirus situation. Powell predicted it will probably disrupt the Chinese economy. But he also noted that the economic disruption from the disease remains in "very early stages," and it's unclear how far it will spread and how much damage it will do to economies.
The Fed held interest rates steady at its meeting, as expected.
Chinese markets remain closed on Thursday for the Lunar New Year holiday and are expected to reopen Monday.
On the oil market, Brent crude and US oil futures each dropped 1.4% during Asian trading hours. Prices have fallen since last week because of worries that the coronavirus outbreak could affect global oil demand.
— Donna Borak contributed to this report.

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2020-01-30 09:24:00Z
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