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Trump announces flavored vaping ban; AB InBev revives Asia IPO

TOP NEWS

* The Trump administration plans to ban all non-tobacco flavored vaping products in the wake of reports of deaths and diseases related to vaping. Manufacturers of tobacco-flavored e-cigarettes would have to file by May 2020 with the FDA to get approval for their products, Secretary of Health and Human Services Alex Azar said. Trump's push comes after reports of six deaths and over 450 possible cases of illnesses associated with the use of e-cigarette products.

* Anheuser-Busch InBev SA's Asian arm Budweiser Brewing Co. APAC Ltd. revived its IPO on the Hong Kong Stock Exchange. AB InBev plans to raise about $5 billion through the listing by the end of September, Bloomberg News reported.

FOOD RETAIL & DISTRIBUTION

* The Federal Trade Commission approved Illinois-based food distributor US Foods Holding Corp.'s $1.8 billion cash offer to acquire SGA's Food Group of Cos. US Foods said the transaction is expected to be modestly accretive to fiscal 2019 adjusted diluted EPS and raised its full-year EPS outlook to a range of $2.30 to $2.40 from $2.15 to $2.25.

* Walmart Inc. will expand its grocery delivery membership program to over 1,400 stores across the U.S. later this fall, after testing its Delivery Unlimited service in Houston, Miami, Salt Lake City and Tampa.

* Walmart Inc.'s Chile unit opened a distribution center in the San Bernardo municipality. The company invested $180 million in the site and Walmart Chile CEO Horacio Barbeito said it aims to create 4,000 jobs there in the next three years.

* U.K. retailer Co-operative Group Ltd. said total sales increased 12% year over year to £5.4 billion during the first half of 2019. Adjusted pretax profit fell to £30 million from £44 million as gains in its food division were offset by a decline in its funeral and life planning operations. The company also said it extended online food delivery trials across London in partnership with Roofoods Ltd., which operates as Deliveroo.

* British grocer Wm Morrison Supermarkets PLC reported a 4.1% year-over-year increase in 2019 first half EPS before exceptionals to 6.38 pence compared with 6.13 pence in the year-ago period. For the six months ended Aug. 4, like-for-like sales, excluding fuel and taxes, rose 0.2% and revenue came in 0.4% higher at £8.83 billion. Morrisons said it is on track to meet its target of £75 million to £125 million incremental profit for the second half.

* Food retailer Waitrose Ltd.'s parent John Lewis Partnership PLC said the group is no longer exploring an online grocery fulfillment partnership with Today Development Partners and instead will focus on using in-house expertise. Waitrose previously worked with Ocado Group PLC on online delivery, but that deal will end following Ocado's tie-up with Marks & Spencer Group PLC.

BEVERAGES

* French cognac-maker Rémy Cointreau SA named Eric Vallat as CEO, effective Dec. 1. Vallat replaces Valérie Chapoulaud-Floquet, who said in July he would step down, citing personal reasons.

* Australian retailer Woolworths Group Ltd.'s spirits arm Endeavour Drinks acquired McLaren Vale winery Chapel Hill from Swiss company Permafix for an undisclosed sum.

* Beverage-maker Celsius Holdings Inc. agreed to buy Finnish wellness company Func Food Group Oyj for about $15.1 million in cash and the assumption of $9.5 million of outstanding debt.

* South Africa's Competition Tribunal is examining liquor producer Distell Group Holdings Ltd.'s accusations that the combined entity of Anheuser-Busch InBev SA and SABMiller PLC, formed in 2016, breached merger terms, Reuters reported, citing a statement by the antitrust authority. SABMiller reportedly told the tribunal that Distell's complaint has no merit and is an "attempt to restrict competition."

TOBACCO & SMOKING PRODUCTS

* British American Tobacco PLC will cut 2,300 jobs, including more than 20% of its senior staff, as part of a drive to reduce costs and invest in new categories such as vapor, tobacco heating products and oral tobacco. The program is expected to be complete by January 2020.

* Philip Morris International Inc.'s board increased its regular quarterly dividend by 2.6% to $1.17 per share from $1.14.

* Vaping-devices maker Juul Labs Inc. began selling its products in China through Alibaba Group Holding Ltd.'s Tmall and JD.com Inc.'s online stores, Reuters reported, citing a note posted by Juul on both e-commerce companies' platforms.

PACKAGED FOODS

* Danish Crown AmbA opened a pork production plant near Shanghai and plans to sell its branded pork products at a 10% to 15% premium to local goods, Reuters reported, citing CEO Jais Valeur. The Danish company will reportedly sell its produce through Alibaba Group Holding Ltd.'s online platforms and Hema supermarkets for the first five years.

* Conagra Brands Inc. agreed to sell its direct store delivery snacks business to Utz Quality Foods LLC, without disclosing financial terms.

* Seafood producer StarKist Co. was given a $100 million criminal fine by the U.S. Department of Justice in relation to the company's involvement in a price-fixing scheme for packaged tuna products between November 2011 and December 2013. The DOJ said the company will be on a 13-month term of probation.

* Swedish edible oils producer AAK AB acquired an 80% stake in U.K.-based Soya International (Europe) Ltd. to expand its ingredients portfolio. AAK said the acquisition will have no significant impact on its earnings and the company may acquire the remaining 20% stake within the next two to five years.

* The U.S. Food and Drug Administration said House of Spices (India) Inc. issued a recall of some of its 3.5-ounce boxes of MDH sambar masala that tested positive for salmonella.

INDUSTRY NEWS

* In response to the U.K. government's Yellowhammer report, Food and Drink Federation CEO Ian Wright said the government "must be upfront about the chaos a no-deal Brexit would bring." He added that the scenario would cause "significant and adverse changes" to the availability of food and drink products with possibilities of random shortages.

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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 dropped 0.26% to 27,087.63, and the Nikkei 225 rose 0.75% to 21,759.61.

In Europe, around midday, the FTSE 100 was up 0.02% to 7,339.28, and the Euronext 100 climbed 0.13% to 1,087.33.

On the macro front

The consumer price index, the jobless claims report, EIA natural gas report, the treasury budget report, the Fed balance sheet and the money supply 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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