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(Bloomberg) -- U.S. President Donald Trump and federal health officials plan to brief the public Wednesday on efforts to prevent the spread of the coronavirus. A top American health official said that the increase in outbreaks outside China will make it harder to keep the virus outside the U.S.Brazil confirmed an infection, the first in Latin America. Greece also reported its first case, Italy and Iran confirmed additional infections, and 700 people remained confined in a hotel in Tenerife, the Canary Islands.Chevron Corp. asked traders and other staff at its Canary Wharf office in London to work from home as a precaution after an employee was tested for the coronavirus.Key DevelopmentsChina death toll at 2,715, Hubei province adds 52 fatalitiesGlobally 2,771 have died and 81,233 people have been infectedStocks rise in U.S., pare losses in EuropeHong Kong sets stimulus package with one-time cash handoutsClick VRUS on the terminal for news and data on the coronavirus and here for maps and charts. For analysis of the impact from Bloomberg Economics, click here.NIH’s Fauci Says Global Spread Raises U.S. Risk (10 a.m. NY)A top American health official said that the spread of cases outside China will make it harder for the U.S. to keep the coronavirus outside its borders.“The more you see outside of the United States, the greater the risk of it spilling over into the United States,” said Anthony Fauci, director of the National Institute of Allergy and Infectious Disease, which is part of the National Institutes of Health.“Nothing has changed inside our country, but things have changed outside that may ultimately have an impact here,” Fauci said during a television interview Wednesday.Schumer Prepares $8.5 Billion Funding Request: (9:55 a.m. NY)U.S. Senate Democratic leader Chuck Schumer is preparing a request for emergency coronavirus funding totaling $8.5 billion, according to a senior Senate Democratic aide. His request is expected to be finalized early Wednesday and sent to Appropriations committee members.Six Nations Rugby Match on March 7 Is Called Off (9:46 a.m. NY)The Six Nations rugby match between Ireland and Italy, scheduled for March 7, has been called off. Ireland had on Tuesday recommended the match be scrapped on public health grounds.Four More Cases Reported at Resort in Italy (9:30 a.m. NY)The total number of cases in Italy rose to 378. Four infections were reported at a hotel in the coastal resort of Alassio in the Liguria region, which is in lockdown with an adjacent hotel, according to regional Governor Giovanni Toti. Some of the 147 tourists will be transferred and quarantined back home as they don’t show symptoms.Brazil Confirms Coronavirus Case, First in Latin America (9:21 a.m. NY)Brazil has confirmed the first coronavirus case in Latin America and will announce it shortly at a press conference, according to a person with direct knowledge of the matter.A 61-year-old Brazilian who recently traveled to Northern Italy for work tested positive in a preliminary test, the Health Ministry said in a statement late Tuesday evening. A second round of tests have confirmed the diagnosis, said the person, who isn’t authorized to speak publicly ahead of the press conference.Russia Limits Visas for Iranians, Cuts Korea Flights (9 a.m. NY)Russia has stopped issuing visas to most citizens of Iran and is limiting flights to South Korea, as the country’s top public-health official warned of growing risks that the virus will spread in the country.Authorities are also calling on Russians to refrain from visiting Italy and will extend restrictions already imposed on travel to China until April 1.Though its shares a long land border with China, Russia has so far reported only two local cases of COVID-19, both involving Chinese nationals.Trump Will Hold Coronavirus Press Conference (8:11 a.m. NY)U.S. President Donald Trump said he’ll hold a press conference at the White House Wednesday evening with top health officials at the Centers for Disease Control and Prevention.The White House has been emphasizing that the coronavirus is firmly under control in the U.S., though officials at the CDC have offered up more dire predictions about the virus’s eventual arrival in the U.S. and what the impact would be.U.K. Focused on Containing Virus: Minister (8 a.m. NY)U.K. Health Secretary Matt Hancock said his focus for now is on containing the virus. Britain will roll out a wider public information plan in the coming days and an isolation facility has been set up at London’s Heathrow Airport.EU Health Commissioner Urges Member States to Keep Borders Open (7:28 a.m. NY)European Union member countries plan a joint procurement program to ensure there’s enough protective gear for health-care workers, EU Health Commissioner Stella Kyriakides said.De Beers Lets Customers Stop Buying Diamonds Destined for China (7:19 a.m. NY)De Beers is allowing its customers to refuse to buy diamonds that are particularly popular with consumers in China and Hong Kong as the coronavirus crisis hits demand in a key gem market, people familiar with the matter said.Vietnam Sees Manufacturing Growth Slowing on Virus (6:47 a.m. NY)Vietnam sees first-quarter growth in the manufacturing sector slowing to 6.28% year-on-year, compared with an earlier projection of 10.47%, if the virus outbreak continues until the end of March.Italy Coronavirus Cases Rise to 374 With 12 Deaths (6:25 a.m. NY)Italy’s coronavirus-linked deaths rose to 12 after a fatality was reported in the Emilia-Romagna region, the head of Civil Protection told a press conference. The total number of cases rose to 374, from 322 previously.Greece Confirms First Coronavirus Case: State-Run ERT TV (6:09 a.m. NY)A 38-year old woman hospitalized in the northern city of Thessaloniki tested positive for the coronavirus, state-run ERT TV reported, citing the Health Ministry.Moody’s Expects Coronavirus to Weigh on 2020 Global Auto Sales (6:48 p.m. HK)Global auto sales are forecast to decline 2.5% in 2020, compared with a previously projected 0.9% drop, Moody’s said in a report.Weibo Says 1Q of 2020 ‘Significantly Impacted’ by Coronavirus (6:06 p.m. HK)Weibo’s first-quarter business has been “significantly impacted” by the coronavirus outbreak in China, the social media platform said.China’s Car Sales Continue to Plunge (5:48 p.m. HK)Retail sales fell 83% from a year earlier in the seven days through Feb. 23, the China Passenger Car Association said on Wednesday. The drop followed a 92% tumble in the first two weeks of February.Europe Cases Rise, More Dead in Iran (5:35 p.m. HK)Italy said cases in Lombardy rose to 259 from 240. France said it found three more cases and reported a fatality.Iran confirmed 44 new cases, taking its total to 139, and the death toll there rose to 19. Bahrain reported a total of 26 cases and shut schools for two weeks, while Kuwait has reported 18 cases so far. Standard Chartered PLC warned Gulf economies will grow at a slower pace than estimated this year as the coronavirus hurts oil demand, trade and tourism.Europe Debt Risk Jumps to Six-Month High (5:30 p.m. HK)The Markit iTraxx Europe Crossover index of credit-default swaps on high-yield companies rises for a third day on Wednesday to its highest since Aug. 23, as the relentless coronavirus spread threatens global growth. The index rose as much as 11.1bps to 268, following a 34-point climb this week.Thailand at Risk of Widespread Outbreak, Minister Says (4:46 p.m. HK)With Thailand’s 40 total confirmed coronavirus cases, the country is at risk of entering “phase 3,” which is the highest level of outbreak advisory, the country’s health minister said.Japanese Doctors Test Avigan to Treat Virus (4:40 p.m. HK)Doctors in Japan are testing several drugs including Fujifilm Holding Corp’s anti-influenza drug Avigan on preclincal research to treat the new coronavirus, according to the health ministry.Fujifilm soared earlier this week following Japanese Health Minister Katsunobu Kato’s comments on the country’s plans to recommend its Avigan drug to treat coronavirus.Spanish Hotel Remains in Lockdown (4:38 p.m. HK)Around 700 guests remained confined to their Canary Islands hotel as Spain stepped up efforts to contain the spread of the coronavirus. Italy and other European nations were on high alert.The number of infections in Tenerife has risen to four after two more Italians at the hotel were found to have the virus. Separately, Madrid’s regional government has confirmed a second coronavirus case, Cadena Ser radio reported.Virus to Hurt Diageo, Danone Sales (4:10 p.m. HK)Diageo said the coronavirus will reduce sales by as much as $422 million this year after bars and restaurants were shut in many parts of China. Danone, which sells Evian water, cautioned that first-quarter sales growth will grind to a halt.Hermes International said it’s too early to predict when the Chinese market will recover as the spread of the coronavirus hammers luxury spending there. The French company closed 11 stores in China and has since reopened seven of those.Earlier on Wednesday, Cathay Pacific Airways Ltd. said 25,000 staff will take unpaid leave. Chief Executive Officer Augustus Tang said in an internal memo that Cathay’s challenges “remain acute,” and thanked employees for their support. The Hong Kong-based airline this month asked its 33,000 workers to take three weeks off between March 1 and June 30.South Korean Cases Jump to 1,146 (4:07 p.m. HK)South Korea confirmed 115 more coronavirus cases, bringing total infections to 1,261. A week ago, the country had only 51 cases. The country is emerging as a second coronavirus hot spot in Asia, as the outbreak in China starts to show signs of plateauing. About two dozen countries have levied restrictions on travelers from South Korea, while flights and tour-group trips to the nation are being canceled.The lack of strong containment measures from the South Korean government in the city of Daegu, where most cases are emerging, is sparking questions over whether the virus will continue to spread through the country.A U.S. soldier stationed at a base near Daegu has tested positive, the first time a U.S. service member has been infected, the United States Forces Command said. U.S. Forces Korea raised the risk level to ‘high.’Businesses Rework Asia Supply Chains (12:46 p.m. HK)More than one-quarter of businesses grappling with coronavirus in Asia say they’re setting up or using supply chains that reduce their reliance on China, according to a survey by the American Chamber of Commerce in Singapore.The poll offers a glimpse into firms’ evolving strategies as confirmed cases of the virus accelerate in countries within and outside Asia, slamming global financial markets and forcing policy makers to unveil stimulus packages and monetary easing.Japan Wants Big Events Halted or Scaled Back (12:28 p.m. HK)Japanese Prime Minister Shinzo Abe called for major sporting and cultural events to be called off, postponed or scaled down over the next two weeks, saying the move was crucial in preventing the domestic spread of the new coronavirus.Abe introduced a new government plan on Tuesday to control the disease that called on employers to encourage telework and stagger working hours in an attempt to slow the spread of the disease.One major concern facing Abe has been whether the virus will derail Tokyo’s plans to host the Summer Olympics later this year. Japanese and Olympic officials have said there is no change to holding the games as planned, but there is a lot at stake for Abe. Tokyo has been preparing for the games for about seven years, spending more than $26 billion to ready the city, according to some estimates.Hong Kong Unveils $15 Billion Stimulus Package (11:49 a.m. HK)Hong Kong Financial Secretary Paul Chan announced a HK$120 billion ($15.4 billion) relief package, in an effort to shore up economic confidence in a city battered by political unrest and the coronavirus. The main feature of Chan’s annual budget announced Wednesday is a payment of HK$10,000 to each permanent resident of the city 18 or older.Carrie Lam’s administration is seeking to put a floor under the collapsing economy, rolling out a bolder budget than has been seen in recent years. Months of political unrest pushed Hong Kong last year into its first annual recession in a decade, with economists forecasting a second annual contraction in 2020 as disruptions from the coronavirus outbreak further depress the city’s output.Brazilian Tests Positive in First Latin America Case (10:44 a.m. HK)A 61-year-old man in Sao Paulo tested positive for the new coronavirus, in what can be the first case of the disease in Latin America. A counter-test is being made by Brazil’s reference hospital, Instituto Adolfo Lutz, the Health Ministry said in a statement published on its website and in its Twitter account.The man traveled to Northern Italy for work Feb. 9 through Feb. 21, and has mild symptoms that match the ones of a suspected Covid-19 infection, the statement said.China Reports 406 Additional Coronavirus Cases (9:50 a.m. HK)China reported 406 new cases from the coronavirus, bringing the total number of cases in the country to 78,064. China’s death toll rose by 52 to 2,715, with all the fatalities occurring in Hubei province.A total of 29,745 patients have been discharged from hospitals since the outbreak, the commission said. Hubei province, where the outbreak originated, reported 401 additional confirmed cases.Researchers Make Advances in Virus Testing (8:52 a.m. HK)A medical research team in Singapore has managed to establish links between cases in the city-state using a new testing method.Using a serological test developed by researchers from the Duke-NUS Medical School, the team was able to confirm that two individuals had earlier been infected with the coronavirus, also known as COVID-19, the Ministry of Health announced Tuesday. Serological tests identify antibodies in blood samples, which the immune system produces in response to an infection.\--With assistance from Fabiola Moura, Andrey Biryukov, Marco Bertacche and Dara Doyle.To contact Bloomberg News staff for this story: Adveith Nair in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Stuart Wallace at email@example.com, Adveith NairFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Diageo , the world's biggest spirits company, said on Wednesday the spread of coronavirus in greater China and the Asia Pacific region could knock up to 200 million poundsoff its profit in 2020. The company said that in China, bars and restaurants have largely been closed and there has been a substantial reduction in banqueting. After that Diageo anticipates a gradual improvement with consumption returning to normal levels towards the end of fiscal 2020.
The London-based company - whose brands include Johnnie Walker Scotch whisky, Smirnoff vodka, Tanqueray gin and Guinness beer - did not admit or deny wrongdoing, but agreed to cease and desist from further violations, the SEC said on Wednesday. According to the SEC, Diageo failed to publicly disclose how employees at its most profitable unit, Diageo North America, pushed distributors in its 2014 and 2015 fiscal years to buy more wine and spirits than they needed. The SEC said this "overshipping" enabled Diageo to report higher growth in operating profit and net sales than analysts expected, but was unsustainable because distributors would likely eventually push back on orders, and some did.
Diageo (DEO) relocates its North America headquarters to Lower Manhattan. The move adds 350 new job opportunities for the city, in addition to the 150 jobs already on payroll.
Diageo's (DEO) first-half fiscal 2020 results reflect gains from strong price/mix and higher operating profits. It cut the top-line view for fiscal 2020 on uncertainty in global trade conditions.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Diageo Plc, the world’s largest distiller, lowered its outlook for sales growth amid weakness in key markets including India as the industry faces risks from trade battles and the spread of the coronavirus.Sales growth will probably be near the lower end of the 4% to 6% targeted range in the year through June, Diageo said Thursday. Previously Diageo guided to the midpoint. Sales rose 4.2% on an adjusted basis in the six months through December, matching analysts’ estimates.Chief Executive Officer Ivan Menezes said in a statement that the distiller was facing increased levels of volatility and uncertainty in the global trade environment “and we would not be immune from further policy changes.” Diageo warned investors in September that trade tensions could undermine a positive start to the financial year.Sales from the travel retail division declined 18%, hindered by rising tensions and challenging trading conditions in the Mideast region and lower passenger traffic in cities including Hong Kong, which has been impacted by social unrest. Growth slowed in India as the economy weakened there. Economic and political unrest in countries such as Mexico, Peru and Chile affected Diageo’s business in Latin America.Diageo finds it hard to predict when economic conditions might improve in markets such as India, Chief Financial Officer Kathryn Mikells said on a call with journalists.She said it’s too soon to see what impact the coronavirus will have on business in China, where Diageo owns the Shui Jing Fang baijiu brand and has opened retail outlets for its Johnnie Walker Scotch whisky. Sales grew 24% in the market last year.Diageo has suspended travel to China, and ensuring the safety of staff in that country is the main priority, she said, adding that the mainland accounts for about 4% of total revenue.The shares rose 1.1% as of 8:36 a.m. in London. They have dropped about 9% in the past six months.Diageo benefits from geographic and portfolio diversity, Mikells said. The U.K. division held up fairly well despite concerns Brexit would weigh on consumption. The North American business --which accounts for a third of sales -- delivered revenue growth of 6%, helped by growth of spirits.(Updates with comments from CFO starting in fifth paragraph)To contact the reporters on this story: Thomas Buckley in London at firstname.lastname@example.org;Deirdre Hipwell in London at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, Thomas Mulier, Anne PollakFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The maker of Johnnie Walker Scotch whisky, Smirnoff vodka and Guinness stout said it expected annual underlying net sales growth to come in towards the lower end of its 4 to 6% mid-term guidance range, amid rising global trade uncertainty. The company highlighted volatility in India, Latin America and the Caribbean and said it saw reduced inventory levels and lower passenger traffic including through Hong Kong in its travel retail arm. Diageo, which sells 200 brands in 180 countries, also said operating profit rose 0.5% to 2.44 billion pounds ($3.21 billion) in the six months ended Dec. 31.
Investing.com - Here is a summary from the most important regulatory news releases from the London Stock Exchange ahead of the U.K. market open on Thursday 30 January. Please refresh for updates for U.K. market news from the LSE’s RNS on individual U.K. shares from FTSE 100, FTSE 250 and FTSE All-Share.
Diageo's (DEO) acquisition and expansion efforts as well as operating margin growth are likely to aid results in the first half of fiscal 2020.
(Bloomberg Opinion) -- Growing up in the U.K. in the 1980s, the Christmas season was associated with particular foods and drinks. Pies made from fruit “mincemeat”; the same dried fruits cooked into Christmas pudding; grandparents passing round glasses of sherry.Believe it or not, that nostalgic memory hints at a long-term risk to the most bullish corner of the global liquor market: China’s sorghum-based firewater, baijiu.The past few years have seen extraordinary growth for baijiu makers. Kweichow Moutai Co., the maker of the most prestigious brand, overtook Diageo Plc to become the world’s biggest distiller by market capitalization in 2017. Now it’s in a whole other league, overtaking even Anheuser-Busch InBev SA and PepsiCo Inc. on that measure and within spitting distance of taking Coca-Cola Co.’s crown as the world’s largest beverage company.What’s more, this success has been built on the back not of a valuation bubble, but of relatively pedestrian assumptions about earnings. Kweichow Moutai is on a lower price-earnings multiple than Brown-Forman Corp., Davide Campari-Milano SpA and Remy Cointreau SA. Luzhou Laojiao Co. is cheaper on that measure than any major western distiller.What could possibly put a cloud on the horizon of this thriving market? The most serious looming risk is embodied in those nostalgic memories of a British Christmas: demographics.Throughout baijiu’s boom, it’s struggled to shake the perception that it’s primarily a drink for older men. Its former image as an unofficial currency of corrupt government officials has receded since a campaign against official graft in the early years of President Xi Jinping’s reign. Still, the connotations of rich older men exchanging drunken toasts remain, even if the drinkers in the stereotype are now more likely to be employed in the private than the public sector.“Many young people still think that baijiu isn't for them, that no matter the flavor, it's not a drink for the young,” according to a China Daily article this year. “Drinking baijiu is increasingly seen as a dated behavior by younger Chinese uninterested in banquets and bravado,” wrote Jing Daily, a site specializing in the Chinese luxury market.That association with oldsters is a problem Spain’s sherry industry has been enduring for several decades. In the 1970s and 1980s, exports to the U.K., the Netherlands and the U.S. boomed in an unprecedented manner, to the point that bodega conglomerate Rumasa was reported to account for as much as 2% of Spanish GDP.Since then it’s been in long-term decline. Sherry’s core consumers outside Spain have reached a more abstemious age or died out, while younger drinkers shun a product they associate with their grandparents. For all that many wine connoisseurs sing its praises and lament sherry’s fall from grace, it’s hard to see the glory days returning.This trajectory is a common one in the alcohol business, which lives and dies on the changing demographics of its consumers. One reason Japan’s brewers have been so desperate to acquire overseas businesses while Vietnamese ones have been M&A targets is that beer is drunk by thirsty workers, and Japan’s labor force is declining while Vietnam’s is rising. The same goes for clear spirits like baijiu. Its success is hard to separate from the fact that China’s population of men aged 40 to 60 increased by more than half over the past two decades, adding about 78 million people to the core baijiu-drinking market. That demographic is set to stagnate over the coming decade, though, before beginning an accelerating decline after 2030.To the extent that the industry is making any inroads with women and younger people, it’s in lower-cost, lighter-flavored “rice aroma” products where margins are tighter. The giant listed baijiu-makers specialize in the complex, higher-cost “sauce aroma” and “strong aroma” varieties such as Maotai and Luzhou Laojiao, which is quite a different product.This needn’t be the end of the world. The drinks market’s best defense against unfavorable demographics is “premiumization” — counting not on a larger number of consumers, but a small group paying more and more. Premiumization is already the strategy of the high-end listed baijiu companies, so there's no reason they can’t keep going with it.Still, chasing the luxury market is notoriously expensive in marketing terms, and baijiu makers for years have been able to rely on a product that sells itself.Major distillers typically dedicate a third or more of their revenue to selling, general and administrative costs — mostly marketing and distribution. Baijiu makers are far more thrifty, one reason their profit margins are so much fatter than those of peers. As their core demographic ages out of its drinking habit, though, they’re likely to have to spend more and more converting younger drinkers.Every cellar manager knows that liquors can get better with age, but the process of maturation has to be carefully monitored and cultivated if the precious drink isn’t to turn into drain-cleaner. Marketing departments of baijiu companies will have to be no less careful over the coming decades maintaining the shine on their storied brands. To contact the author of this story: David Fickling at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
David Duncan, Silver Oak Cellars CEO, told Yahoo Finance his brand is actually increasing in popularity with millennials.
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