Beverages
Coke to launch Tropicana competition
Coca-Cola Co. is introducing a not-from-concentrate orange juice that will compete with PepsiCo's popular Tropicana Pure Premium brand juice.
Simply Orange Juice Co., a new subsidiary of Coke's Minute Maid unit, will begin marketing the juice in the Northeast in May, Coca-Cola said Thursday.
The new juice, to be called Simply Orange, will come in pulp-free, calcium-fortified and high-pulp varieties and be packaged in a clear carafe.
Tropicana holds a 39 percent share of the $3.1 billion chilled orange juice market.
International finance
Europe leaves rates unchanged
The European Central Bank left its key interest rate unchanged Thursday despite inflation above its target and increasing prospects for an economic slowdown.
Economists had expected the central bank's governing council to leave its main interest rate at 4.75 percent as its top officials surveyed the economic landscape, but many said the bank would cut rates as soon as inflation subsides.
Economy
Trade deficit hits record high
America's trade deficit surged to an all-time high of $435.4 billion last year, nearly one-third larger than the previous record, reflecting a flood of imports ranging from foreign cars to oil and industrial machinery.
Economists expressed concern that such a dramatic worsening in the current account, the broadest measure of trade, could make foreigners less interested in holding U.S. investments, adding to Wall Street's problems.
The Commerce Department said Thursday that the deficit in the current account was 31.3 percent higher than the previous record of $341.5 billion set in 1999.
Technology
Compaq to cut 5,000 jobs
Compaq Computer Corp., the world's biggest maker of personal computers, is cutting 5,000 jobs and replacing its chief financial officer in a major restructuring meant to help it ride out the economic slowdown.
The job cuts, which will involve 7 percent of Compaq's work force, are just one part of a series of steps meant to save $500 million to $600 million per year. But despite the savings, Compaq said, its first-quarter earnings will be only 12 to 14 cents per share.
Compaq shares closed Thursday at $18.50, up 15 cents, but dropped to $17 in after-hours trading.
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