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Flutter to acquire The Stars Group; Tesco H1'20 earnings beat estimates

TOP NEWS

* Ireland's Flutter Entertainment PLC, previously known as Paddy Power Betfair, agreed to acquire Canada's The Stars Group Inc. in an all-stock transaction that would create an €11.7 billion global leader in sports betting and gaming. The combined company will be based in Dublin and listed on the London Stock Exchange, with a secondary listing on Euronext Dublin. The combination is expected to be completed in the second or third quarter of 2020, subject to relevant approvals.

* Tesco PLC reported better-than-expected earnings for its fiscal first half, boosted by fatter profit margins, and it announced the appointment of a new CEO. Ken Murphy, chief commercial officer at Walgreens Boots Alliance Inc., is due to succeed Dave Lewis in the summer of 2020. Tesco reported that net income before exceptional items for the 26 weeks ended Aug. 24 rose to £720 million from a restated £419 million in the same period a year ago, while revenue rose year over year to £31.9 billion.

TEXTILES, APPAREL AND LUXURY GOODS

* Fast Retailing Co. Ltd.'s flagship apparel brand Uniqlo posted a 4.11% year-over-year drop in domestic same-store sales in September, from a 9.9% rise a month ago, due to persistently warm weather throughout the month. Sales from the Japanese fast-fashion giant's directly run Uniqlo stores, including online sales, fell 4.3% year over year during the month.

* Safilo Group SpA is not aware of any acquisition interest from France's Kering SA, a spokesperson for the Italian eyewear-maker told Reuters in response to a report by newspaper Milano Finanza. Kering declined to comment on the matter, Reuters added.

MULTILINE RETAIL

* Department store operator Hudson's Bay Co. said it completed the sale of its remaining stakes in its European real estate and retail joint ventures to its partner Signa Holding GmbH for about C$1.5 billion, or €1 billion. Hudson's Bay used the proceeds to repay its remaining C$429 million term loan.

* Marks & Spencer Group PLC CEO Steve Rowe admitted that the company is 18 months behind its turnround plan, the Financial Times reported. Rowe reportedly said poor planning and supply chain issues led to shortages of some popular items.

E-COMMERCE

* Amazon.com Inc. has signed more than 12 leases in Los Angeles as part of its plan to roll out a chain of grocery stores in the U.S., The Wall Street Journal reported, citing people familiar with the matter. A spokeswoman for Amazon told the Journal that the company does not comment on rumor or speculation.

* The American Apparel & Footwear Association, or AAFA, included Amazon-owned foreign domains in its report that identified 130 physical marketplaces and eight online marketplaces that commit copyright piracy and trademark counterfeiting. The group, which highlighted Amazon's portals in the U.K., Canada, Germany, France and India in its report, also called for the Office of the U.S. Trade Representative to expand future reports to include domestic retail platforms.

* Asos PLC named former Micro Focus International PLC executive Karen Geary, Ocado Group PLC executive director Luke Jensen, former Sky Ltd. executive Mai Fyfield and former Burberry Group PLC President of Americas Eugenia Ulasewicz as independent nonexecutive directors to its board. Geary's appointment is effective immediately, while Jensen and Fyfield will join Nov. 1, with Ulasewicz following on April 16, 2020.

HOUSEHOLD AND PERSONAL PRODUCTS

* The Unilever Group acquired skin care business Lenor Japan, which has a presence in Japan and China. The consumer goods giant did not disclose the financial details of the transaction but said Lenor Japan will complement its beauty and personal care portfolio.

* Nestlé SA completed the CHF10.2 billion sale of its skin health unit to a consortium led by Swedish private equity firm EQT Partners AB and Luxinva, a wholly owned subsidiary of Abu Dhabi Investment Authority.

FOOD AND STAPLES RETAILING

* John Lewis Partnership PLC will cut about 75 senior management roles from the current 225 head office positions, effective Feb. 3, 2020, as part of its approximately £100 million cost-savings plan to merge its namesake brand with unit Waitrose & Partners. Under the new structure, John Lewis & Partners managing director Paula Nickolds will become the brand executive director.

HYPERMARKETS AND SUPERCENTERS

* Carrefour SA will acquire 49% of digital financial services provider Ewally for an undisclosed amount, with an agreement to take a controlling stake in the Brazilian company after three years. The deal will enable Ewally to expand its solutions to business-to-consumer and business-to-business audiences in the country.

* Metro AG extended its partnership with German food bank network Tafel Deutschland EV for another three years. The wholesaler will continue to be the main financial sponsor of Tafel Deutschland, donating surplus food daily from its 103 stores across Germany.

HOUSEHOLD DURABLES AND SPECIALTY RETAIL

* Dorel Industries Inc., the maker of Schwinn and Cannondale bikes, suspended its dividend primarily due to the 25% tariffs imposed by the U.S. on Chinese goods. Dorel President and CEO Martin Schwartz said the company also raised prices midway through the third quarter, resulting in the delay of Dorel Home's expected gross margin improvement to the beginning of 2020.

LEISURE PRODUCTS AND FACILITIES

* Mattel Inc. launched Uno Braille at Target Corp.'s physical and online stores in the U.S. The toy company partnered with the National Federation of the Blind to make the gameplay more widely accessible by creating an Uno deck that indicates a card's color and number or action in braille.

Now featured on S&P Global Market Intelligence

Stitch Fix sees softer Q1'20 revenue growth

The day ahead

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

In Asia, the Hang Seng declined 0.19% to 26,042.69, and the Nikkei 225 was down 0.49% to 21,778.61.

In Europe, around midday, the FTSE 100 fell 2.01% to 7,211.84, and the Euronext 100 slid 1.56% to 1,067.79.

On the macro front

The U.S. ADP employment report and the U.S. EIA petroleum status 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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