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[Misc] 2018 Reuters News - May 07 ~ May 11
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Gucci fuels booming sales at luxury firm Kering
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Its recent fashion show in Milan had a hospital theme. But Gucci, it seems, is in fine health with clothing and handbags in high demand. Sales growth across the luxury group Kering confirmed a rosy outlook for 2018, sending shares up 6 percent. A recovery in spending by Chinese shoppers over the past 18 months helping many of the top luxury players. Gucci is Kering's biggest label and it defied expectations of a slowdown in Q1. Instead revenue growth accelerated as sales in the U.S. also took off. The Italian brand's three-year revamp, completed with a flamboyant new style, helped it achieve sales growth of 49 percent year on year. For Kering, like-for-like sales grew 36 percent, with Balanciaga winning over fashion fans, too. It¡¯s even outperformed Gucci. The other European luxury giant LVMH has seen similar success. But the sector still has some challenges ahead. The strong euro is one - and the fashion for trade disputes another. Chinese buyers may not be so carefree with their cash if the US favors new tariffs. 

Boeing lifts forecasts as margins grow
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Clear skies ahead for Boeing. The aerospace giant lifted its forecasts for profit and cash flow in 2018. Strong sales of commercial jets led it to boost its outlook. Quarterly profit and revenue rose sharply and surged past Wall Street's estimates. The world's largest planemaker had already announced a rise in deliveries of commercial aircraft in the first three months of the year. Cowen senior analyst Cai von Rumohr said, "Investors should like the robust first quarter start, and early hike to 2018 outlook." Also lifting investors' spirits: Boeing said its margins had improved at the start of the year. That's a stark contrast to construction equipment maker Caterpillar, whose warning of rising metals prices sparked a market sell-off on Tuesday. Boeing shares jumped at the start of trading Wednesday. They're up more than 80 percent over the last 12 months. 

Caterpillar beats estimates, raises outlook
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Caterpillar beat Wall Street estimates in the first-quarter on strong global demand for its equipment. And it hiked its outlook for 2018 profits. Caterpillar shares skyrocketed. BMO's Joel Tiss: "Well, I think, the most important thing that people aren't really focused on, is that in the company, there's a new CEO in the last year. He's closed 30 factories. He's fired 20 percent of the permanent workforce. They're really shrinking the cost structure significantly. And now we have a little bit of revenue growth on top of that lower cost structure and earnings are exploding, and everybody thinks it's all from the cyclical recovery, and it's not. It's from the lower cost structure and the company focusing on profitability." Caterpillar said the biggest risk for its business is the threat of a global trade war. It sells more than half of its machines outside of the United States. And China is one of its biggest markets. 

Coca-Cola sales surge after Diet Coke reboot
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Coke is back. Strong demand for Coke Zero Sugar and new Diet Coke flavors helped Coca-Cola beat Wall Street targets in the first quarter. Its overall revenue topped expectations by around $300 million. But Coca Cola stock fell. Bernstein's Ali Dibadj: "Well, we were surprised the stock was down so much. They delivered five percent organic sales growth, the margins were up to 600 basis points, and they beat on EPS. There are some concerns about pricing versus volume, but we thought their results were very good and were surprised stock came down so much." The strong results come as Coke is adding more low-sugar, low-calories drinks to appeal to consumers looking for healthier products. It's also stepping up marketing of its core Coca-Cola brands.

Exercise improves brain fitness of obese children, says study
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Exercise isn't just good for kids' physical health - it can help them improve academically. University of Granada researchers say they've shown for the first time that physical exertion alters children¡¯s brain structure. They say previous research focused too much on the elderly. "Looking at how exercise can improve cognition and brain in children in a very crucial period of life and sensitive period of life when changes can be important, it's pretty unique. And there is, at the moment, barely no data on how interventions and physical exercise can improve specific dimensions of the brain." More than 100 overweight or obese children were tested in the Activebrains project. "Activebrains Project is a randomized controlled trial whose aim was to provide a physical activity program, physical exercise in four months and a half in overweight and obese children, which mainly aimed to examine the association in brain cognition and academic achievement....All of the activity is through games, in order to encourage children to play, to enjoy doing activity." Researchers carried out full brain scans on volunteers before and after physical training sessions. "We found that aerobic capacity was associated with higher grey matter volume in different brain regions, such as frontal region, premotor cortex and supplementary motor cortex. Also in some cortical regions such as hippocampus." Scans showed changes in areas of the brain associated with reading, writing, and math ability. The team hopes the research persuades decision makers to prioritize physical education in schools.