General Mills is doubling down on the recall of flour due to its likeliness of being a source of an E. coli outbreak, which has sickened 46 people in 21 states thus far. Aside from that, a handful of companies have released their quarterly earnings, including Apple and Twitter, which you can keep track of on Sentifi.
1/ General Mills Inc: Recalls flour after link to E. coli
The Centers for Disease Control and Prevention has pointed to General Mills plant in Kansas City, Missouri, as the possible source of an E. coli outbreak, which prompted the company to recall more flour produced through Feb. 10. Thirteen out of 46 people who affected by the outbreak have been hospitalized, with at least one person having symptoms of kidney failure. No casualties have been reported.
2/ Caterpillar: Reports better-than-expected quarterly earnings
Caterpillar surprised investors with quarterly earnings of $1.09 versus analysts’ estimates of 96 cents per share. Revenue was registered at $10.3 billion compared to estimates of $10.1 billion. The company’s shares rose more than 5% with the report, and the company is confident that the worst of the slump in the mining equipment sales may be over.
3/ McDonald’s: Posts disappointing sales
All-Day Breakfast and McPick 2 promotions couldn’t help McDonald’s not disappoint investors with a lower-than-expected U.S. sales, indicating that a turnaround in the U.S. might still be a ways off. The company posted net income of $1.25 per share on sales of $6.26 billion versus estimates of $1.38 per share on revenues of $6.27 billion. Same-store sales in the U.S. rose 1.8% but fell short of estimates of 3.4 percent.
4/ NatWest Bank: Nearly one million of its customers may be affected by negative rates
NatWest has issued a warning that it may introduce negative rates to around 850,000 of its business banking customers. It’s all due to the record low global interest rates, and if the current market conditions persist into the future, the bank may charge interest on credit balances.
5/ Under Armour Inc: Earnings meet expectations
In the second quarter, the athletic apparel company saw its net revenues increase 28 percent and its operating income decrease 39 percent. Its net income also fell 58 percent, resulting in its shares falling 5 percent. The traders are debating whether it’s time to get into the company.
6/ SABMiller: Receives a bigger offer from AB InBev
Budweiser maker AB InBev had to increase its cash offer for SABMiller to £45 per share from £44 per share, all due to the pound losing its value.
7/ Flipkart: No future M&A after Jabong deal
After acquiring Jabong in a $70 million deal, Flipkart announced it has no plans for further M&A in the future as Flipkart, and its subsidiaries Myntra and Jabong, now owns 70 percent of the e-commerce market share in India, while Myntra owns the fashion category space in India. This puts the company in an ideal position to have an upper hand on Amazon in India.
8/ LogMeIn Inc: Acquires service from rival
Boston-based web conferencing service LogMeIn is acquiring GoToMeeting, a video conferencing service, from its rival Citrix. This M&A will position LogMeIn to compete with Cisco’s WebEx, Microsoft’s Skype for Business and Blue Jeans Network.
9/ Anheuser-Busch: Raises its offer for SABMiller
AB InBev has increased its bid for SABMiller to combat the falling pound and to continue its effort to compete the takeover. AB InBev has received regulatory approval for the deal from many countries, with the U.S. being the most recent. China regulators will offer their view soon.
10/ Verizon: The crowd is still buzzing about deal for Yahoo
The potential marriage between Verizon and Yahoo’s operating business is being examined closely by the crowd. The deal is expected to help Verizon’s product offerings, and help Yahoo to scale its content footprint using Verizon mobile data and audience platforms.
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