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Hasbro to buy Entertainment One for $4B; Amazon to acquire 49% of Future Coupons

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Hasbro to buy Entertainment One for $4B; Amazon to acquire 49% of Future Coupons

TOP NEWS

* Hasbro Inc. agreed to acquire Canadian multinational mass media and entertainment company Entertainment One Ltd. in an all-cash transaction valued at approximately $4 billion, or £3.3 billion. The transaction is expected to close during the fourth quarter.

* Amazon.com Inc. signed an agreement to acquire an approximately 3.58% indirect stake in Indian retail company Future Retail Ltd., through its deal to buy a 49% stake in loyalty cards and coupons distributor Future Coupons Ltd. Amazon also has been granted a call option, which allows the e-commerce company to acquire all or part of the stake owned by Future Retail's founding family. The Indian retailer has over 2,000 stores across 400 cities in the South Asian country.

TEXTILES, APPAREL AND LUXURY GOODS

* Gap Inc.'s second quarter 2019 adjusted diluted EPS came in at 63 cents, down from 76 cents in the year-ago period but above the S&P Global Market Intelligence consensus normalized EPS estimate of 53 cents. Net sales decreased 2% year over year to $4.01 billion from $4.09 billion. The apparel retailer affirmed its adjusted diluted EPS guidance of $2.05 to $2.15 for the full year.

* Ross Stores Inc. said it now expects EPS for the full year to be between $4.41 and $4.50, compared to its previous forecast of $4.38 and $4.52, citing the potential impact of new tariffs on Chinese imports. Adjusted EPS for the second quarter ended Aug. 3 grew to $1.14 from $1.04 in the year-earlier quarter, beating the S&P Global Market Intelligence estimate of $1.12.

* Thirty-two fashion companies, led by France's Kering SA, committed to a fashion pact that aims to have zero greenhouse gas emissions by 2050, to restore biodiversity and to remove single-use plastics from their operations. Participating companies include Adidas AG, Burberry Group PLC and H & M Hennes & Mauritz AB.

MULTILINE RETAIL

* Nordstrom Inc. named Teri Bariquit, its executive vice president of merchandise planning and solutions, to the newly created role of chief merchandising officer.

E-COMMERCE

* Amazon.com Inc. expanded its AmazonFresh grocery delivery service to Houston, Minneapolis and Phoenix. Amazon Prime members in these cities can now avail of free one- to two-hour delivery for a monthly fee of $14.99 on top of their Prime membership fee.

* Groupon Inc. CFO Michael Randolfi will step down, effective Aug. 23. The company said it appointed Melissa Thomas, chief accounting officer and treasurer, as interim CFO, effective on the same day, until it finds a permanent replacement for Randolfi.

* The CEO and founder of Utah-based online retailer Overstock.com Inc. stepped down 10 days after he spoke of his involvement in the federal government's investigation into the 2016 U.S election. Patrick Byrne said in a statement that he is in a "sad position of having to sever ties with Overstock," both as CEO and board member, effective immediately.

HOUSEHOLD AND PERSONAL PRODUCTS

* Henkel AG & Co. KGaA will invest in two beauty care startups, youtiful and Purish, in a bid to expand its expertise in new digital go-to-market business models. Under the collaboration, youtiful and Purish will have access to Henkel's open innovation platform, Henkel X.

FOOD AND STAPLES RETAILING

* Wm Morrison Supermarkets PLC confirmed that it proposed to close four of its stores, putting about 400 jobs at risk, as part of the "constant review" of its existing 494 store portfolio, Retail Gazette reported. "We are planning to invest in four new stores this year and are today, regrettably, proposing to close four," a spokesperson reportedly said. The company will consult with affected staff on how to reduce redundancies and where to possibly redeploy them within the business, the report added.

HYPERMARKETS AND SUPERCENTERS

* Walmart Inc. and Tesla Inc. are in discussions to address all issues surrounding Tesla solar installations at Walmart stores. This comes two days after the U.S. retail giant sued Tesla Energy Operations, Inc over fires at several Walmart stores, allegedly sparked by solar panels installed by the Tesla unit.

* Carrefour SA's Brazilian unit is under a corruption investigation by "relevant authorities," Reuters reported, citing a securities filing. The company reportedly disclosed that authorities are looking into "the payment of undue benefits" to the headquarters of its Atacadao brand and to a store in São Paulo that was operating without a license.

HOUSEHOLD DURABLES AND SPECIALTY RETAIL

* Dick's Sporting Goods Inc. raised its fiscal 2019 diluted EPS outlook to a range of $3.30 to $3.45, versus its prior guidance of $3.20 to $3.40, after reporting that second-quarter diluted EPS rose to $1.26 from $1.20 in the year-ago period. Net sales climbed 3.8% year over year to about $2.26 billion from $2.18 billion.

* Bang & Olufsen A/S would consider an acquisition offer if it gets an inquiry, Reuters reported, citing Chairman Ole Andersen in Danish newspaper Borsen. A spokesman for the consumer electronics producer confirmed the statement to Reuters but added that the company has not put itself up for sale.

* IKEA AB will push through with its investment in China worth 10 billion yuan over the next 12 months despite slowing sales growth in the market over the last three years, Bloomberg News reported, citing IKEA China President Anna Pawlak-Kuliga. Pawlak-Kuliga reportedly said the company will also open four more stores in the country by August 2020.

CASINOS AND GAMING

* MGM Resorts International remains committed to developing an integrated resort in the Japanese city of Osaka, shortly after rival Las Vegas Sands Corp. announced its withdrawal from the race to open Osaka's first integrated resort.

* Las Vegas-based hospitality and gaming company MGM Resorts International entered the boutique hotel business by acquiring a 50% stake in New York-based Sydell Group LLC. It aims to diversify its business and tap a younger demographic, The Wall Street Journal reported. Financial terms of the transaction reportedly were not disclosed. MGM and Sydell did not immediately respond to S&P Global Market Intelligence's requests for comment.

INDUSTRY NEWS

* Major companies pledged to take concrete actions against workplace inequality by joining the G7 Business for Inclusive Growth coalition, or B41G. The program is sponsored by French President Emmanuel Macron and overseen by the Organization for Economic Cooperation and Development. Under the initiative, companies have identified an initial pool of more than 50 projects — representing more than €1 billion in private funding — such as bigger childcare investments, supporting small businesses and enhancing refugee integration.

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The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng rose 0.50% to 26,179.33, and the Nikkei 225 increased 0.40% to 20,710.91.

In Europe, around midday, the FTSE 100 was up 0.57% to 7,169.09, and the Euronext 100 was up 0.42% to 1,049.99.

On the macro front

The new home sales report and the Baker-Hughes Rig Count report are due out today.

Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.

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