PepsiCo selling Tropicana, other juice brands for $3.3bn – as it happened

Joanna Partridge

from on 2021-08-03 14:43 (#5MWZE)

Rolling coverage of business and economics news as PepsiCo agreed to sell its Tropicana and juice brands for $3.3bn

3.43pm BST

Closing summary - US stock indices have reversed gains made at the open and moved into negative territory.

Stocks on Wall Street cut some of their losses after June factory orders data came in higher than anticipated at 1.5%. Despite this, the Nasdaq Composite has dipped into the red, while the Dow Jones and the S&P 500 remain flat.

US Factory Orders (Jun) come in at 1.5%, exp: 1%, prev: 1.7%

3.13pm BST

China's largest social media and video game company Tencent is limiting the amount of time children can spend playing its flagship video game.

Honor of Kings, the world's top-grossing game for the past two years, is is popular among students, some of whom reportedly play it for up to eight hours a day.

Fears over Chinese regulatory interference aren't going away, with Tencent the latest stock to slump on chatter about Beijing seeking to wield its power. [Tencent's shares] are now down by more than a fifth year-to-date as investors reassess their willingness to have exposure to big Chinese names.

3.03pm BST

Oil is having another volatile day today, and has been moving between positive and negative territory.

Fears over rising cases of the Delta coronavirus variant have kept prices subdued, while on the other hand there are expectations that US inventories will decline.

#Oil - continuation of yesterday so far #OOTT

Btw ICYMI - inventories falling doesn't mean #oil price has to go up regardless of where the price is, esp if headwinds emerge ahead #OOTT #Opec https://t.co/eWuPgETFsr

2.48pm BST

The main Wall Street stock indices have risen at the open, buoyed by upbeat corporate earnings and an increase in global deals activity.

At the opening bell, the Dow Jones nudged higher by 25 points, or 0.07%, while the S&P 500 rose by 0.13%, or 5.6 points. The Nasdaq also remained in positive territory at the open, climbing 0.2%.

2.16pm BST

News of another deal today - activewear brand Sweaty Betty has been sold for $410m (295m) to US footwear firm Wolverine Worldwide.

Wolverine, known for its Keds, Saucony and Merrell sneakers, scoops up Sweaty Betty athletic apparel brand https://t.co/gp1UPqXXl4

1.58pm BST

As PepsiCo's future strategy focusses on zero-calorie drinks, a reminder that hasn't been able to call its Naked Juice all natural" for the best part of a decade, following a US lawsuit.

The company said it would no longer call these juice drinks all natural" after a 2013 lawsuit, which complained that the beverages didn't contain ingredients which lived up to that description. Pepsi also paid $9bn to settle that lawsuit.

1.21pm BST

PepsiCo's boss has explained the company's reasons for selling a controlling stake in its juice brands.

The company is looking to move from high-sugar drinks - like the one which gives the firm its name - to healthier options.

This joint venture with PAI enables us to realise significant upfront value, whilst providing the focus and resources necessary to drive additional long-term growth for these beloved brands.

In addition, it will free us to concentrate on our current portfolio of diverse offerings, including growing our portfolio of healthier snacks, zero-calorie beverages, and products like SodaStream which are focused on being better for people and the planet.

The juice category has seen lower growth in the last couple of years because of the sugar content. There's a lot of natural sugar in juice, but there are good things too in terms of vitamins and fibre.

12.31pm BST

PepsiCo is selling its controlling stake in Tropicana and other juice brands including Naked in North America for $3.3bn.

Pepsi announced it is selling the brands to French private equity firm PAI Partners, as it looks to concentrate on its growing portfolio of health-focused snacks and zero-calorie drinks.

12.12pm BST

A look at some of the action on Asian stock markets today.

India's main stock indices closed at a record high today as investors bet on the continuation of stimulus in the country, to help it recover from the Covid crisis.

#CNBCTV18Market | Nifty hits 16,000 for the 1st time ever #NiftyAt16000 pic.twitter.com/BI9Z88o8ry

11.16am BST

On Greggs - a reminder that the company is among those which hasn't yet repaid the business rates relief received from the government.

Greggs has posted its highest ever profits and announced a dividend as it shrugs off pandemic woes - so should the sausage roll maker really be keeping 13m of business rates relief?
Doesn't sit right with the brand's usual feel good factorhttps://t.co/OSzM2Jws7E

10.50am BST

Fancy a pasty for dinner?

Ok, it's not yet lunchtime, but Greggs is thinking about the evening meal as it looks to keep growing the business.

Pre-ordering is a market trend that we believe will support, in particular, our ambition to grow sales in the evening daypart, a segment of the market where we are currently underrepresented. Delivery will also have a role to play here, giving customers convenient access to Greggs' products wherever they are throughout the day.

10.31am BST

Producer prices in the euro zone moved higher again in June, driven by another rise in energy prices.

Factory gate prices across the 19 countries which use the euro increased by 1.4% month-on-month in June, which is a 10.2% year-on-year rise, according to data from Eurostat, the EU's statistical office.

Euro area industrial #ProducerPrices +1.4% in June over May 2021, +10.2% over June 2020 https://t.co/HLyq614eBU pic.twitter.com/Malpkcwu9E

9.28am BST

That news from BP has seen its shares rise by 2.9% this morning, making it the biggest riser on London's FTSE 100.

Elsewhere, it's looking like a mostly positive start to the day on the European stock markets, although the main indices are only nudging slightly higher.

9.11am BST

BP has raised its oil price forecasts for rest of this decade, but lowered them for the longer term, writes the Guardian's energy correspondent Jillian Ambrose.

You can read her story on BP's results here:

9.07am BST

Now for some corporate news.

Oil giant BP is to hand its shareholders a 1bn windfall through share buybacks, while it is also promising to up its dividend by 4% a year up to 2025.

9.03am BST

IMF warns on crypto

Another word on the IMF - it's repeated its warnings to countries which are planning to use the digital currency as legal tender.

8.42am BST

What they said about the IMF announcement.

Following the news about the IMF's allocation of $650bn special drawing rights - some campaigners are calling for rich nations to donate their share to poorer countries.

Wealthy countries receive most of these emergency reserves and must donate them to developing countries. - Eric LeCompte, executive director, Jubilee USA Network

Richer nations must share all of their new SDRs with poorer nations. Because of the way they are allocated, just 4 per cent will flow to poorer nations. Of the new SDR issue, $623bn is set to flow to richer nations, which frankly do not need it. We need a bold proposal to issue these SDRs without the old-fashioned traditions that meant wealthier countries only share 50 per cent of their quotas. The UK should lead the negotiation. - Liam Byrne MP

8.05am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

Overnight, the board of governors of the International Monetary Fund (IMF) approved the largest resource injection in its history to boost global liquidity and help countries which are struggling as a result of the pandemic.

The SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy.

It will particularly help our most vulnerable countries struggling to cope with the impact of the COVID-19 crisis.

The IMF's Board of Governors approved a new general allocation of SDRs equivalent to US$650 billion. Managing Director @KGeorgieva says it's a historic decision reached at a time of unprecedented crisis. Read more: https://t.co/x8KCBR7G3l pic.twitter.com/ZYUbZyih4n

All member countries will benefit from the newly approved allocation of SDRs, effective on August 23, 2021. Read more: https://t.co/x8KCBR7G3l pic.twitter.com/2N0xavjFq5

Emerging market and developing countries will receive about US$275 billion, boosting their reserves and liquidity. Read more: https://t.co/x8KCBR7G3l pic.twitter.com/h5pviLOn6o

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