TOP NEWS
* Nestlé SA may slash up to 500 IT positions in its Switzerland office as it plans to reorganize some of its global IT operations over the next 18 months. The decision was made in a bid to enhance operations and benefit from the company's existing technology hub in Spain and other Nestlé locations. There will be a period of consultation with affected employees with options that include jobs offers within the company, early retirement and outplacement support.
* Alibaba Group Holding Ltd. agreed to sell part of its Tmall Pharmacy business to its Hong Kong-listed subsidiary Alibaba Health Information Technology Ltd. in exchange for HK$10.6 billion of newly issued shares in the latter company. Upon deal completion, Alibaba Group's holding in Alibaba Health will increase to 56.2% from the previous 48.1%. The Chinese e-commerce giant is looking to develop Alibaba Health into its flagship healthcare platform as part of a strategy to create "the best healthcare ecosystem in China," Alibaba Group CEO Daniel Zhang said in a statement.
TEXTILES, APPAREL AND LUXURY GOODS
* L Brands Inc.-owned Victoria's Secret, in partnership with luxury goods firm Valiram Group, will open its flagship store in Melbourne, Australia, before Christmas 2018, Fashion Network reported. The Melbourne location will be the first Victoria's Secret store to offer the brand's complete collection, which includes apparel, undergarments, fragrance and beauty categories. The specific date of the launch has not been confirmed, the report added.
E-COMMERCE
* The Confederation of All India Traders filed a petition with the Competition Commission of India to oppose Walmart Inc.'s $16 billion takeover of Flipkart Online Services Pvt. Ltd., Reuters reported, citing a statement from the trader group. CAIT reportedly said the deal would create unfair competition and result in predatory pricing.
* The Australian arm of eBay Inc. will launch eBay Plus, a membership program that offers free delivery, free returns and other benefits for A$49 a year. Shoppers can access the service for A$29 in their first year after a free 30-day trial. About 15 million items are available for purchase under the membership program, Australian news site news.com.au reported, citing eBay Australia and New Zealand's managing director Tim MacKinnon.
HOUSEHOLD AND PERSONAL PRODUCTS
* L'Oréal SA has signed a long-term license agreement with Italian luxury fashion company Valentino Fashion Group SpA, according to an announcement jointly issued by both companies. Under the agreement, effective Jan. 1, 2019, the French cosmetics company will create, develop and distribute fragrance and beauty products under the Valentino brand.
* Japanese cosmetics company Shiseido Co. Ltd. said it appointed Isabelle Gex as president of global fragrances, effective June 11. Gex will be in charge of perfume brands such as Dolce&Gabbana, Narciso Rodriguez, Issey Miyake and Elie Saab. In addition, she will oversee the company's Paris-based Fragrance Center of Excellence.
FOOD AND STAPLES RETAILING
* The Japanese subsidiary of Nestlé SA plans to expand its nutrition service platform, the Nikkei Asian Review reported. The new subscription-based healthcare platform will offer nutritional advice based on a customer's blood, DNA and dietary habits, the report said, citing Nestlé Japan CEO Kozo Takaoka. The company has also partnered with Japanese startups Genesis Healthcare and Halmek Ventures to examine DNA and blood tests.
* X5 Retail Group NV opened a new Pyaterochka store in the Russian city of Vladikavkaz, making it the food retailer's 13,000th store. During the opening, X5 signed an agreement with the government of North Ossetia-Alania to open 25 stores in the region by the end of 2019 and to increase the number of Pyaterochka outlets to 15 by 2018-end.
SPECIALTY RETAIL
* Dixons Carphone PLC will close 92 Carphone Warehouse stores in fiscal 2018-19 as part of its ongoing cost-saving initiatives. The U.K. electronics company also predicts that its profit before tax for the same period will be £300 million, down from its expected headline profit before taxes of approximately £382 million for full year 2017-18. For the 16 weeks ended April 28, Dixons Carphone reported that its international business is "in good shape" as group revenue went up 3% year over year and like-for-like sales grew 4%.
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, Hang Seng lost 1.00% to 30,484.58, while the Nikkei 225 fell 0.55% to 22,358.43.
In Europe, around midday, the FTSE 100 dropped 1.36% to 7,625.13, and the Euronext 100 shed 1.16% to 1,054.14.
On the macro front
The S&P Corelogic Case-Shiller home price index, the consumer confidence report, the State Street Investor Confidence Index and the Dallas Fed manufacturing survey are due out today.
The Daily Dose is updated as of 8 a.m. ET. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.
