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[Misc] 2018 Reuters News - May 21 ~ May 25
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Trump discusses fuel rules with automakers
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Executives from ten American and foreign automakers went to the White House to push for a weakening of U.S. fuel efficiency standards through 2025. The Trump administration is already working on a proposal to freeze those standards starting in 2021. But the automakers say they don't really want the freeze. They want new rules to address lower gas prices and U.S. consumer affinity for bigger, less fuel-efficient vehicles. Trump's White House will formally unveil the proposal later this month or in June. Edmunds' Jeremy Acevedo: "This would be an enormous change for the auto industry. You know, for so long the industry's been beholden to these really ambitious CAFE standards, and, if Trump completely does away with them, it will be an all new landscape for automakers. It'll really reflect that in their portfolio, what they're going to be selling, and the size is certainly gonna grow the efficiency. If it's no longer an issue, will, certainly, change as well." California, and a number of other states, have sued the Trump administration over its efforts to freeze the fuel efficiency rules. Automakers expressed hope that - despite the row - the administration can keep nationwide emissions standards.

Ocado courts global food retailers with robot army
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Meet the robots catching the eye of the world's retail bosses. The race to crack internet food shopping is a competitive one.... And this new high-tech plant owned by British online supermarket company Ocado is setting the pace. It claims to be the most advanced system for online shopping on the planet. 600 robots swarm on top of a huge steel grid.... Selecting items from stacks of containers underneath. Ocado's first generation warehouses would take several hours to fill an order....But here in Andover the average 50 item shopping list is picked within a matter of minutes. "Last week's mega deal which saw Sainsbury's offer 7.3 billion pounds agreed deal with Asda, that's partly driven by online grocery and fears of where Amazon will be in about 10 years¡¯ time. That's the major development and what Ocado is doing is tapping into that.¡± Supermarkets around the world are struggling to develop a sustainable system that delivers food to customers. In the last six months three of the biggest - in France, Canada and Sweden - have turned to Ocado.... "What they do is they call them partnership deals whereby Ocado provides... sets up an automated warehouse, provides the hardware, fits them out with the software and they earn fees from that retailer." The recent partnerships have been lapped up by those investors who see it as central to the development of grocery shopping. Skeptics see only a costly and complicated venture that will never make sustained profits. But for now, it's giving future revenue streams that 10 years ago Ocado couldn't have imagined getting. 

Pizza Hut expanding beer delivery test
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Pizza Hut is expanding its beer delivery test to nearly 100 restaurants in Arizona and California this month. The company hopes that adding booze will help it counter weak traffic and fight competition. Pizza Hut owner Yum Brands' stock traded slightly higher on the news. Technomics' David Henkes: "Our research has shown that any time a consumer has an alcohol drink with a restaurant order that guest satisfaction goes up, and so certainly it's in the interest of Pizza Hut or any restaurant, both from a profitability, from a sales perspective, and from a guest satisfaction, to try and get that drink order wherever they can. Challenge with delivery is that typically beverage is not included as part of the delivery, so operators miss out on that incremental, profitable occasion. Pizza Hut is smart to be focused on it. It's challenging, you know, given that each of the 50 states has different laws and regulations governing alcohol delivery. So, it's going to be challenging for them to have a national roll out of this." Pizza Hut's rival, Domino's Pizza, does not deliver alcohol. But it recently added 150,000 new delivery "hotspots" at U.S. parks, beaches and other destinations that do not have traditional addresses. 

Disney revenue up on 'Black Panther'
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Walt Disney reported a 9 percent rise in quarterly revenue. Its superhero movie "Black Panther" was a box-office hit. And more people went to Disney's parks and resorts. The company's CEO Bob Iger said on a conference call with investors that he is confident Disney's deal to buy media assets from Twenty-First Century Fox will go forward. Disney shares rose after hours. CFRA's Tuna Amobi: "The earnings were pretty, very encouraging. I think they demonstrated that the business has some momentum, especially on the theme parks and film studio. The deal with Fox, you know, came up, and I think, as you can expect, I think the company, Bob Iger, remains extremely positive on the deal. One thing that I was hoping that he would address, was the potential rival bid from Comcast, which, understandably, he did not address. But, just listening to him, you get the sense that they are as committed as ever to acquiring these assets. And I would not be surprised at all, based on, you know, the reaction that Disney would, probably, come up with some type of response that could actually spark a bidding war." Comcast said it's planning to make a counter offer for Fox assets. But, Reuters sources said, only if a federal judge lets another deal go through - AT&T's acquisition of Time Warner for $85 billion. 

Starbucks to sell rights to Nestle
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Starbucks is selling the rights to sell its packaged coffee and tea in grocery and retail stores around the world to Nestle for more than $7 billion. The deal includes brands such as Starbucks Reserve and Teavana. Nestle will also sell Starbucks coffee in its coffee pods. Overall, the deal gives Nestle access to Starbucks's business with annual sales of nearly $2 billion. Technomics' David Henkes: "I think when, you look at Starbucks, what they're gaining is global distribution. They're gaining the ability to focus on their coffee cafe business, while still expanding through distribution that Nestle is able to bring to the table. I think, from Nestle's perspective, what they're gaining is a powerhouse brand. Certainly, they have Nespresso and Nescafé, which is strong globally. It's not quite as strong in the United States, and so, what they're gaining here in the U.S., is a strong partner and a powerhouse brand that helps them accelerate their growth, and positions in well against competition." Nestle and Starbucks are teaming up as their competitor - JAB Holdings - has also made a series of deals, like buying Keurig Green Mountain. Other big players are growing as well, including Italy's Lavazza, which is now the world's No. 3.