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Japan's first female Prime Minister sends markets soaring.
It's World Business Express from the BBC World Service.
I'm Leanna Byrne.
In the US, Coca-Cola's results pop, and in Brazil, a major oil drill gets the green light.
So we start in Japan, where Sanae Takeishi has become the country's first female prime minister.
A staunch conservative.
Takeishi takes over at a challenging economic moment, as Japan grapples with a rising cost of living and a frustrated public.
Now, it's been an uncertain time for the world's fourth largest economy.
Our correspondent, Shaima Khalil, is in Tokyo.
One thing is the fact that she is a big fan of Abenomics.
She has been the protege of the late former Prime Minister, Shinzo Abe, and plans to bring back economic reform.
And central plank of that is the Abenomics, which essentially means big government spending massive policies that have to do with tax relief for people.
And I think that in itself makes markets optimistic, because this is really what people have been asking for.
They've been struggling with inflation.
They've been struggling with rising prices.
And I think The idea that you have a prime minister that's not afraid to spend, at least in the beginning of her leadership, has had a positive effect on the markets.
Well, let's talk about some of those policies you mentioned, because her coalition they're talking about defence spending, tax cuts, restarting nuclear power.
That's a lot, isn't it?
It is.
One of the big concerns, I think, is going to be about Japan's debt levels.
Remember that investors are already concerned that Japan's debt levels are among the highest in the.
Don't know how the effect is going to be when there's big government spending.
There is a great deal of frustration among Japanese people.
Wages have been stagnant for years now.
And I think after the COVID-19 pandemic, the Japanese really felt the pinch.
If you look, for example, at how weak the yen is, the record number of tourists that come to Japan the Japanese households is looking at that and seeing people coming here with their money going far but with their yen not going far enough for them to make ends meet, to put enough food on the table.
And I think this is really her number one priority.
This is the one thing that she needs to address.
And then on top of all this, a new finance minister is Japan's first woman in that role.
So do markets expect to shift in fiscal strategy under her?
Yeah, that's right.
Sanae Takeuchi is expected to appoint Satsuki Katayama as the finance minister.
And also like Takeuchi, Katayama is a protege of the former conservative prime minister.
Shinzo Abe.
Shaima Khalil there.
With us now, Fiona Sincotta, Senior Market Analyst for Citi Index.
Fiona, the Nikkei really hit record territory today.
What's driving that?
Is it really about the policies, people excited about them?
Yes, so you're right.
You know, the indicate rose to just shy of 50,000.
Now the market reaction, I think, is a combination of optimism of sort of some political stability, but also mainly surrounding the fact that Takechi is considered a fiscal dove.
So the market's expecting increased spending to stimulate the economy further.
And it could also see some pressure on the Bank of Japan to keep rates low.
So as a result of that sort of environment, that's strong for domestic stocks.
And also we did see the yen weaken as a result of this as well.
Well, Fiona, let's hear from a business owner in Japan, Asuka Kuwabara, co-founder at AxarToys.ai.
That's a company which is building AI-powered soft toys that talks with children.
For a long time as a Japanese woman, I have seen how the politics has been a place for men mostly.
And I was like doubting that I would ever like be alive when a female prime minister comes.
And in terms of the policies, I think she's quite similar to Mr Abe, who is known as very conservative.
And of course, some people talk positively about his period.
But in terms of the policies etc.
I wouldn't think that she would do anything drastic to make a huge difference.
But I acknowledge the fact that she's very concerned about the middle class, especially the people with the lower income, to be more protected through less tax etc.
So As a business, of course, I'm very interested in how she's going to carry out the economic tax policies around businesses.
But at the same time I'm also very curious how she's going to play a role in making sure that lower income families are supported.
Interested, curious, but are you confident as a business owner?
Does it give you confidence to go into the future?
Put in more investment into your business if you think tax cuts are coming down the line.
Sure.
I think this attention from overseas would definitely help Japan to have more visibility in international markets.
And if it leads to the tax reduction for the companies to establish in Japan, etc.
This is definitely going to be a very positive thing scenario for us like small entrepreneurs in Japan.
But, you know, my company is also looking at global market.
So, when it comes to tax reduction to have an office in Japan, but being able to operate from Japan to different countries, it would be really great.
That was Aska Koubara, co-founder at AxarToys.ai.
A toxic haze in India's capital Delhi is back.
The city's air quality plunged after Diwali.
Despite a ban on most firecrackers, the smog is choking daily life and raising new economic concerns.
Flight delays, lower productivity and mounting health costs are all issues in one of Asia's biggest urban economies.
Experts warn pollution could shave billions off India's output, as factories slow and workers fall ill.
Meanwhile, the Brazilian oil giant Petrobras, says it's been given the green light to start drilling for oil near the mouth of the Amazon River, off the coast of the world's largest tropical rainforest.
The BBC's Ione Wells reports from Sao Paulo.
The company says it demonstrated that it had a robust environmental protection structure in place.
Oil exploration in the region has been supported by Brazil's President Lula da Silva.
However, the plans have been opposed by many environmental organizations.
Some fear that the proximity to the Amazon River and rainforest, coupled with sea currents, could mean any oil spills would have disastrous impacts on the Amazon's biodiversity.
Others have pointed out, it could undermine Brazil's climate leadership ahead of hosting the COP30 climate summit in the Amazon in November.
That was Ione Wiles reporting.
Fiona is still with us.
Now, Fiona, Coca-Cola's earnings were out today.
They looked pretty good.
Yeah, so Q3 sales growth beat Wall Street expectations in a sign that consumers are still really buying the firm's beverages, despite higher prices.
The price mix, and that's basically what it charges across a range of products.
Rose 6, which was higher than forecast.
But the share price is up over 3.5% following the results.
It's interesting.
There's also news about one of its bottling companies.
But before we go into that, a lot of people don't really realise those two are separate companies, don't they?
Coca-Cola Company and the bottling companies.
Yeah, that's right.
So over the past decade, Coca-Cola has been spinning out its bottling business.
And it took another step in that direction with Coca-Cola HBC.
That's the London listed Swiss based bottling company acquiring a 75 stake in Coca-Cola Beverages Inc.
And basically, this deal allows Coca-Cola to sell off its last big stake in its network of large bottling providers as it moves to concentrate on the syrup and the liquids.
London listed and Swiss based.
It's really complicated, isn't it?
Yeah, exactly.
But one thing I saw, I mean, demand is slowing for Coca-Cola.
People aren't necessarily buying Coca-Cola anymore.
So, you know, expansion into Africa, is that a risky move?
Yeah, it could be.
But I mean, that's where they are.
They're actually seeing the demand lower in Asia and in North America, it's stagnating.
So actually, this is sort of a move strategically to expand further into Africa.
All right, Fiona Sincotta, Senior Market Analyst for Citi Index.
Thank you so much for joining us.
And that's it from World Business Express with me, Leanna Byrne.
Please subscribe to get the latest.
Just search for World Business Express wherever you get your podcasts.
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And Good Bad Billionaire is back for a new season.
Delving into the lives and livelihoods of more of the world's billionaires.
Like the owner of Russia's largest online retailer, Wild Berries, she's Russia's first self-made female billionaire.
Tatiana Kim.
The action movie icon and former governor of California, Arnold Schwarzenegger.
And the co-founder of Snapchat, a billionaire at just 25 years old, Evan Spiegel.
Simon and I are asking you to decide if they're good, bad or just another billionaire.
That's good, bad billionaire from the BBC World Service.
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