“It’s not one worth risking your life over” — Hannah Sugarman, avid Pokémon Go player who thought about going for a virtual Pokémon on the edge of a subway platform but decided against it. See more on the Pokémon Go craze below. This is getting nuts.
MARKET SNAPSHOT
Big Picture
- U.S. markets reached all-time highs yesterday, continuing the momentum gained from Friday’s positive jobs report
- The Nikkei Index jumped 4% after Japanese Prime Minister Shinzo Abe won a landslide victory, sparking optimism of a possible stimulus package to revive the country’s equity market
Market Movers
- Shares of Sagent Pharmaceuticals leapt 40% after it quickly accepted a $736 million buyout offer from Japanese pharma giant Nichi-Iko, which is working to expand into U.S. markets
CORPORATE PRIMER
Need a Summer Job?
…Become a barista. Starbucks is increasing wages anywhere from 5-15% this October in U.S. stores. And it’s not just about hourly wages: annual stock plans will double for employees who have worked for two or more years. The move comes amid thousands of Starbucks employees signing an online petition last month after the Seattle-based coffee chain made “extreme labor cuts.” Ask, and you shall receive.
UFC Closes a Knockout Deal
…With long time talent agent, WME-IMG Hollywood. The deal is worth around $4 billion, a price that the original investors never saw coming after purchasing the mixed martial arts business for just $2 million fifteen years ago. UFC’s public image transition from brutal fighting to mainstream, pay-per-view entertainment has come with plenty of profits. With WME-IMG stepping into the ring, we can expect UFC to keep on winning.
Change is Fashionable
…Especially for struggling retailers. Burberry’s Current CEO and creative director Christopher Bailey announced that he is stepping down from his impressive dual role at the luxury fashion brand, but he’s not exactly on his way out. Bailey will be the new president and chief creative officer, while the current CEO of French fashion house Céline steps in to fill his shoes. Amid lagging sales and tumbling share prices, these changes might do Burberry some good.
Walmart Says
…Challenge accepted. Today is Amazon Prime Day, a “holiday” filled with deals for Amazon’s most loyal customers. It’s great news for Amazon, but Walmart isn’t just going to stand idly by and let this one happen. Not today, Amazon. That’s right, Walmart is taking a stand by offering free shipping through Friday, as well as some killer deals on products like Apple TVs and Xbox One consoles. Retailers in general have had a disastrous 2016 largely due to Amazon’s success. Walmart’s move represents a serious challenge to Amazon’s status as the number one online retailer. Now, time for some shopping.
OTHER STORIES
- SEC investigating Tesla for possible securities-law breach
- Theresa May to become Britain’s next prime minister
- Boeing to create 2,000 new jobs in the U.K
- Lyft, GM expand Express Drive car rental program
ECONOMIC CALENDAR
- Monday: Labor Market Conditions Index (-)
- Tuesday: Wholesale Trade
- Wednesday: Yum! Brands Earnings; Import and Export Prices; Treasury Budget
- Thursday: BlackRock, Delta, JPMorgan Chase Earnings; Weekly Jobless Claims
- Friday: Citi, Wells Fargo Earnings; Consumer Price Index; Retail Sales
SUSPICIOUS PHONE BEHAVIOR
Have you seen people walking around town staring down at their phones more often than usual? If yes, chances are that you’ve just witnessed the Pokémon Go craze. Pokémon Go brings classic Pokémon to life with augmented reality, and has been a huge hit ever since it launched in the U.S. last week.
- First things first, here’s how it works: the mobile phone app uses GPS to direct players to real-world locations. You’ll have to go exploring your neighborhood to find a Pokémon, and maybe battle your pesky neighbor Jimmy for it as well.
- Nintendo, which owns a stake in the studio that developed the game, has seen its stock go ballistic since the app was released in the U.S.—adding more than $7 billion to the company’s market value.
- Perhaps most impressively, players are spending an average of 43 minutes per day on the app. That’s more time than people devote to Whatsapp and Snapchat.
- Some analysts predict that if it dominates Japan, the app could add 10.5 billion yen ($104 million) to Nintendo’s full-year net profit.
- Furthermore, the game could be the start of a whole new set of products that go beyond your phone. For example, a wristband is in the works that will alert you to nearby Pokémon. It seems that Pokémon’s back in style. What year is it again?
INTERVIEW QUESTION OF THE DAY
Fill in the blank numbers at the end:
6 + 4 = 210
9 + 2 = 711
8 + 5 = 313
5 + 2 = 37
7 + 6 = 113
9 + 8 = 117
10 + 6 = 416
15 + 3 = 1218
?? + ?? = 123
(Answer)
BUSINESS TERM OF THE DAY
Market Cannibalization — Market cannibalization refers to a situation where a new product takes away from the sales and demand of an existing product—where both products are produced by the same company. This term can also be related to the opening of new store locations.
FOOD FOR THOUGHT
Using your friend’s Netflix or HBO Go account? Well, the U.S. Ninth Circuit Court of Appeals issued an opinion which found, in part, that sharing passwords is a crime prosecutable under the Computer Fraud and Abuse Act (CFAA). Whoops.
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