International News (Issue 454) – June 23rd, 2017
In the international space, it seems not a day goes by where Amazon does not dominate the headlines.
Amazon’s announcement that it will acquire upscale supermarket chain Whole Foods for nearly $14b is a big deal.
Amazon will inherit 450 stores in the deal giving it a physical presence but its greatest competitive advantage is not its e-commerce network; it is its innovation engine.
Naturally, shares in Costco, Walmart and Kroger all tumbled on this news.
Still on Amazon, Nike Inc announced overnight that it intends to finally sell some of its products directly to Amazon, having refused for many years to buckle to the pressure.
The deal gives Nike better control over regulating the sale of knockoffs from third-party sellers and provides Amazon with a new source of revenue in the footwear and apparel market.
On another note, China has finally been added to the MSCI Emerging Markets index. MSCI will add 222 Chinese A large cap stocks on a gradual basis beginning next year although these additions only represent 0.7% of the overall index.
Thursday Closing Values
|U.S. S&P 500||2435||+3||+0.1|
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