TOP NEWS
* Howard Schultz is stepping down as the executive chairman and a member of Starbucks Corp. board, effective June 26. The coffee company appointed Myron Ullman, former chairman and CEO of J.C. Penney Co. Inc., as its chairman, while Mellody Hobson, president and a director of investment management firm Ariel Investments, will be named vice chairman.
* Mexico is set to impose a 20% retaliatory tariff on U.S. pork imports following U.S. President Donald Trump's tariffs on steel and aluminum, Reuters reported, citing two industry officials. The pork legs and shoulders account for about 90% of Mexico's $1.07 billion annual imports of pork cuts. The government has neither given any details of the tariff yet nor commented on the news, Reuters added.
RESTAURANTS
* McDonald's Corp. said it plans to install self-order kiosks to 1,000 stores per quarter for the next eight to nine quarters, CNBC reported, citing CEO Steve Easterbrook. The report said the U.S. fast-food giant is already in the process of adding self-service kiosks and table service to stores, giving customers the option to order in advance through mobile phones. Stores in international markets like Canada, Australia and the U.K. have integrated kiosk service and mobile ordering, with France and Germany nearing completion of integration.
* McDonald's opened its new corporate headquarters in Chicago's West Loop neighborhood. The building will also be home to the Hamburger University. McDonald's office space will cover 490,000 square feet of the building. The ground floor of the new headquarters houses a restaurant that will feature a rotating menu of favorites from all over the world.
* The Hong Kong unit of Starbucks Corp. is set to cease displaying plastic utensils in all stores from July 4 as a part of its new policy, as it opens a flagship store in Lee Garden, Inside Retail Asia reported. The U.S. coffee giant will open the single story, 500-square foot "Third Place" experience June 22, introducing the city's first Teavana Bar, an extended food menu and Starbucks Reserve coffee selection, the report added.
PACKAGED FOODS
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* Tyson Foods Inc. acquired Tecumseh Poultry LLC, and its Smart Chicken air-chilled fresh poultry brand, for an undisclosed amount. The food giant plans to operate Tecumseh as a separate, wholly owned subsidiary and will retain its about 600 team members, including management, operations and sales teams.
* Fonterra Co-op Group Ltd. cut its annual profit and dividend forecasts on higher milk prices and expects its capital expenditure in fiscal 2018 to be in line with the year-ago period in the range of NZ$800 million to NZ$850 million. For the nine months to April 30, the dairy giant posted revenue of NZ$14.8 billion, a 7% year-over-year increase.
* Groupe Centrale Danone, the Moroccan operations of dairy company Danone, will report $15.84 million in losses in the first half ending June 30 after a consumer boycott in the country cut sales by half, Reuters reported, citing a company statement. Centrale Danone reportedly cut its milk supply by 30% and is expected to lay off about 1,000 workers on short-term contracts. The protest begun in April against dairy, bottled water and petrol companies because of what protesters believe are unfair prices set by groups linked to the elite or foreign brands, the report said.
BEVERAGES
* PepsiCo Inc.'s Indian unit plans to use 100% compostable and plant-based packaging for the Lay's and Kurkure snack brands in 2018 as the soda giant looks to make all its packaging recoverable or recyclable by 2025, The Economic Times (India) reported, citing Ahmed ElSheikh, Pepsi India president and CEO. Its rival, Coca-Cola Co., reportedly launched plant-based bottles, sourced from India, in some markets and Swiss food giant Nestlé SA also aims to use 100% reusable and recyclable packaging by 2025.
TOBACCO & SMOKING PRODUCTS
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* Indonesia will impose a 57% excise tax on vape juices that contain traces of tobacco used for electronic cigarettes, effective July 1, as it targets to collect 155.4 trillion Indonesian rupiah in revenue from excise duties, Reuters reported, citing Sunaryo, a senior official with the country's customs and excise office. The tax will reportedly be an expansion from the country's current tax and is expected to generate about 100 billion to 200 billion rupiah annually. The Southeast Asian nation also plans to impose excise taxes on plastic bags this year but Sunaryo declined to give information regarding its enactment.
NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE
* Walmart's sale of Brazil unit fits international strategy
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, Hang Seng gained 0.31% to 31,093.45, while the Nikkei 225 rose 0.28% to 22,539.54.
In Europe, around midday, the FTSE 100 dropped 0.33% to 7,715.60, and the Euronext 100 lifted 0.55% to 1,070.93.
On the macro front
The Redbook Index, the U.S. Services Purchasing Managers' Index, the Institute For Supply Management non-manufacturing index and the Labor Department's JOLTS report are due out today.
