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New York City sues Chipotle; SEC questions Starbucks on accounting practices

TOP NEWS

* The New York City government sued Chipotle Mexican Grill Inc. for allegedly breaching "nearly every aspect" of the city's Fair Workweek Law, according to a statement by Mayor Bill de Blasio's office. In a lawsuit filed at the Office of Administrative Trials and Hearings, the city accused the Mexican fast food chain of violating the labor law after more than 30 workers from five different Chipotle locations filed complaints with the Department of Consumer and Worker Protection.

* Starbucks Corp. agreed to disclose additional information on how it recognizes revenue after the U.S. SEC questioned some of the coffee giant's accounting practices in its earnings for the second quarter ended March 31, The Wall Street Journal reported. The agency reportedly sought more information on Starbucks' revenue-recognition policy and how the company documented the $7 billion upfront payment from Nestlé SA for the rights to sell Starbucks-branded products.

FOOD RETAIL & DISTRIBUTION

* Whole Foods Market Inc. partnered with meal-kit provider Snap Kitchen LLC to launch fresh, ready-to-eat meals at six of its stores in Austin, Texas. The food range features 35 fresh prepared meals and beverages, including plant-based offerings.

* Food retailer Albertsons Cos. Inc. promoted Geoff White, president of its own brands segment, to executive vice president and chief merchandising officer.

* Walmart Inc. has appointed Nuala O'Connor senior vice president and chief counsel of digital citizenship to support the retailer on issues related to privacy, use of data and emerging technologies.

* Target Corp. said it is looking to hire more than 130,000 seasonal workers across the U.S. for the upcoming holidays, compared to the 120,000 it added during the 2018 festive season.

* Walmart Inc.'s U.K. arm Asda Stores Ltd. is testing an edible coating on fresh produce to reduce food waste. The coating, developed by California-based startup Apeel Sciences Inc., is made from existing materials in peels, seeds and pulp of fruits and vegetables, and can reportedly double to triple the shelf life of many goods.

* French retailer Carrefour SA denied reports that it is evaluating a potential bid for struggling rival Casino Guichard-Perrachon SA, Reuters reported, citing a company spokeswoman. French media outlet BFM TV said Carrefour was considering an all-share bid that would have valued Casino at between €4 billion and €4.2 billion, the report said. Casino reportedly declined to comment.

BEVERAGES

* Brewer MillerCoors LLC partnered with La Colombe Coffee Roasters to launch an alcoholic ready-to-drink cold brew coffee in Boston; Tampa, Fort Myers and Treasure Coast, Fla.; and Denver.

* Fitch Ratings upgraded French liquor producer Pernod Ricard SA's long-term issuer default rating and senior unsecured rating to BBB+ from BBB, with a stable outlook, citing Pernod's strong business profile, continued momentum in revenue and profit growth, and strong free cash flow. The rating agency also upgraded Pernod's short-term IDR rating to F2.

PACKAGED FOODS

* Meat processor Tyson Foods Inc. appointed John Tyson as its chief sustainability officer, effective immediately. He replaces Justin Whitmore, who will now lead the company's alternative protein business.

* Japanese food and beverage producer Kagome Co. Ltd. is looking to enter markets including Singapore and Mongolia as part of its goal of increasing shipments to Asia to ¥5 billion by the mid-2020s from the current ¥600 million, the Nikkei Asian Review reported.

* Food-additive maker Innophos Holdings Inc. is working with financial advisers to review its options, including a sale, Bloomberg News reported, citing sources with knowledge of the matter. The New Jersey-based company reportedly declined to comment.

* Nestlé India Ltd. will appeal a 2015 case in which it was fined 2 million Indian rupees for wrongly labeling its Maggi instant noodles as having no added monosodium glutamate, The Economic Times (India) reported, citing a company spokesperson. "Maggi Noodles are 100% safe for consumption and Nestlé India does not add MSG as an ingredient to it at any stage of the manufacturing process," the Nestlé SA unit's spokesperson reportedly said.

* The Kraft Heinz Co.-backed Evolv Ventures led a $3.5 million seed funding round in San Francisco-based biotechnology startup New Culture alongside venture capital firms Bee Partners, Mayfield, CPT Capital, Boost VC and SOSV. The startup develops animal-free dairy cheese through fermentation of plant-based fats, sugars and the traditional cheesemaking process.

* Private equity firm Swander Pace Capital acquired baked-goods maker Cafe Valley Inc. for an undisclosed sum.

RESTAURANTS

* McDonald's Corp. agreed to acquire Apprente Inc., a California-based startup that specializes in voice-based conversational technology. The deal is aimed at improving McDonald's drive-thru service and possibly its mobile ordering and kiosks.

* McDonald's Corp.'s Japan unit plans to integrate tax into prices for eat-in and takeout orders after the country increases consumption tax to 10% from 8% on Oct. 1, Jiji Press reported. The prices for about 70% of menu items, including Big Macs and premium roast coffee, will reportedly remain unchanged, while the prices of the remaining items will increase by ¥10.

* California-based Del Taco Restaurants Inc. partnered with Postmates Inc. to roll out a delivery service from participating restaurants.

* J D Wetherspoon PLC's founder Tim Martin said suppliers would not bear the cost of price cuts at the British pub operator, The Telegraph reported, citing Martin's draft response to a complaint by the Society of Independent Brewers. Martin on Sept. 6 said he would slash the price of some beers at certain sites in an attempt to show how "protectionist" tariffs could be avoided by a no-deal Brexit.

* Burger King India Pvt. Ltd. received a further 450 million Indian rupees of funding plus a 1.5 billion-rupee loan facility from its private equity owner Everstone Group, The Economic Times (India) reported. The fast-food restaurant chain reportedly intends to use the funds to open new outlets, refurbish existing ones and cover transaction-related expenses.

* Catering to outsourcing services provider Sodexo SA said it appointed Eduard Erbiceanu as global head of energy for Sodexo Energy & Resources Worldwide. Erbiceanu was previously senior vice president of global strategic planning for Sodexo's Energy & Resources business, which provides onshore and offshore services.

INDUSTRY NEWS

* China released two lists covering 16 product types imported from the U.S., including whey and fish meal, that will be exempt from additional tariffs imposed last year, ahead of the next round of face-to-face discussions in October.

* The California State Senate voted late Sept. 10 to pass a bill that could force "gig economy" companies like Uber Technologies Inc. and DoorDash to classify their workers as employees instead of independent contractors. The bill, called AB 5, now awaits approval of California Gov. Gavin Newsom, who earlier endorsed the bill, to become law. Advocates of the bill say that if implemented, the law will give independent contractors such as drivers for food delivery companies more protections, like overtime, minimum wage and the right to unionize.

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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 gained 1.78% to 27,159.06, and the Nikkei 225 increased 0.96% to 21,597.76.

In Europe, around midday, the FTSE 100 climbed 0.92% to 7,334.87, and the Euronext 100 was up 0.46% to 1,084.33.

On the macro front

The PPI-FD index, the Atlanta Fed business inflation expectations report, the wholesale trade report and the 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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