Coca Cola Sees Signs of Recovery After First-Half Profits Dropped

[Investment News Web]( [TODAY'S DEAL: Honestly, you should get this book](mailto:editor@investmentnewsweb.com?subject=Give+me+my+top+stocks+for+2020&body=Give+me+my+top+stocks+for+2020) Todays Top News [Coca Cola Sees Signs of Recovery After First-Half Profits Dropped] Coca Cola Sees Signs of Recovery After First-Half Profits Dropped Soft-drink company Coca Cola recorded a drop in first-half profits on Wednesday. This has been attributed to the closure of hotels, restaurants, and other public places due coronavirus virus social distancing restrictions. The beverage giant, however, announced that sales had recovered some momentum after record lows in April. Coca Cola, which bottles and sells drinks in over 28 countries, said that the operating profit dropped by 35.8% to $246.49 million for the six months ending June 25, missing out on the projected figure of $308 million. The company added that out-of-home volumes dropped by 70% but started improving in May and June as restrictions were eased. What measures should Coca Cola put in place to increase profits during coronavirus pandemic? Investing [Honda Forecasts 68% Drop in Annual Profit] Honda Forecasts 68% Drop in Annual Profit On Wednesday, Japan’s automotive company Honda predicted a 68% decrease in its annual operating profit for 2020. This would be the lowest figure in 10 years. The global demand for cars is expected to drop significantly due to the economic impact of coronavirus pandemic. Honda, which is Japan’s third largest car maker, expects the profit to fall to $1.89 at the end of this financial year. The figure will be the lowest since 2010/11 when the company was experiencing financial difficulties. The automobile industry has generally been hit hard by the pandemic as most factories were forced to shut down. Demand for cars has also dropped as travel restrictions were implemented. What should carmakers do to limit the impact of COVID-19 on the business? Don't Miss This [Gold Scales a New High on Wednesday] Gold Scales a New High on Wednesday Spot gold recorded a new high on Wednesday as it went for $2,030 per ounce. Bond yields on the other hand, hit new lows. Gold prices have increased by about 33% this year, making it the biggest rise ever recorded. In recent months, risk assets like gold have surged in prices. Many individuals are now seeking to trade in gold with the belief that coronavirus pandemic cannot affect it. Analysts predict that the price of gold could go even higher as its demand increases during due to the threat of rising inflation. Gold producing countries will likely rely on the product to recover from the adverse economic effects of the pandemic. Is it a good idea to trade in risk assets during this pandemic? [Japanese Carmakers Post Sales Growth in China] Japanese Carmakers Post Sales Growth in China Japanese automakers post an increase in sales in China by more than 10%. This is a significant improvement from last year as the world’s biggest car market sustained its recovery. Nissan, one of Japan’s top automakers, announced on Wednesday that its sales increased by 11.6% in China last month to 120,945 cars compared to the previous year. Nissan is focusing on the Chinese market as the troubled carmaker struggles to fix its leadership wrangles. Toyota, on the other hand, sold around 165,600 cars to China in July, a 38% increase compared to 2019. And Honda, another top carmaker in Japan, announced that it sold 136,645 cars in China, a 17.8% improvement. Why do you think the car sales went up in china while they are dropping in the rest of the world? [British American Tobacco Names Meldrum as Head of US Unit] British American Tobacco Names Meldrum as Head of US Unit On Wednesday, British American Tobacco (BAT) named Guy Meldrum, the former regional director of Asia-Pacific, as the new head of US business. Meldrum will now succeed Oberlander Ricardo, who became president of Newport cigarette maker American Reynolds after the company acquired BAT back in 2017. Guy Meldrum’s tenure will be effective from September 1, 2020. The United States unit is the biggest contributor to BAT’s overall profits. BAT is among the few companies worldwide that are recording profits amidst the coronavirus pandemic. In its first-half results, the cigarette company posted a 6.7% improvement from last year. The company attributes its success mostly to the US market where consumption has almost doubled. Do you think Guy Meldrum is the right man to lead the US unit? [Vote Now] PS. How useful did you find today’s update? 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