Canada markets open in 4 hours 4 minutes

Morning Brief: Rite Aid, Albertsons scrap $24 billion merger

Thursday, August 9, 2018

What to watch today

Thursday comes with the July producer price index report (+0.2% estimated, +0.3% ex-food and energy estimated) and the latest weekly tally of initial jobless claims (220,000 estimated). On the earnings front, we’ll get second quarter financial results from media giants Viacom (VIAB) and News Corp. (NWSA).

Top news

.(AP Photo/Matt Rourke, File)

Rite Aid and Albertsons terminate $24B mergerDrug store chain Rite Aid Corp. (RAD) and U.S. grocer Albertsons Companies Inc. agreed to terminate their merger agreement, the companies said on Wednesday, a little over 10 days after a shareholder advisory firm opposed the deal. [Reuters]

Fox tops estimates as ‘Deadpool 2,’ cable earnings drive gains: Twenty-First Century Fox Inc.’s (FOXA) quarterly profit and revenue topped Wall Street targets on Wednesday, thanks to the popularity of edgy superhero movie “Deadpool 2” and as the company’s cable unit earned higher fees from distributors. The results come as the Rupert Murdoch-controlled media conglomerate prepares to sell the bulk of its film and TV assets to Walt Disney Co. (DIS) in a $71 billion deal. [Reuters]

Elon Musk’s Tesla tweet brings the ‘Reed Hastings rule’ into play: Tesla CEO Elon Musk sent markets into a tizzy on Tuesday when he tweeted that he may take the company private. Many are now wondering whether the tweet opens up Musk to lawsuits from the very short-sellers he has long complained about. The issue brings to mind a little-known 2013 SEC report that determined, in the SEC’s own wording, “Social media OK for company announcements if investors are alerted.” The SEC has already made inquires to Tesla (TSLA) about Musk’s tweet. [Yahoo Finance]

US imposing new Russia sanctions over chemical attack: The United States says it will impose new sanctions on Russia for illegally using a chemical weapon in an attempt to kill a former spy and his daughter in Britain earlier this year. The new sanctions, to be imposed later this month, come despite President Donald Trump’s efforts to improve relations with Russia and its leader, Vladimir Putin, and his harsh criticism of the investigation into Russian interference in the 2016 election. [AP]

NYC votes to cap Uber, Lyft vehicle licenses: The New York City Council on Wednesday agreed to cap the number of licenses for ride-hailing services such as Uber Technologies Inc. for one year, dealing a blow to the companies that have relied on the largest U.S. metro area for a major source of their revenue. The first such cap by any major U.S. city was part of a package of measures that also includes setting a minimum wage for drivers. [Reuters]

For more of the latest news, go to Yahoo Finance

Rescuers continue to search for victims at Jamiul Jamaah mosque collapsed by an earthquake in North Lombok, Indonesia, Thursday, Aug. 9, 2018. The north of Lombok was devastated by the powerful quake that struck Sunday night, damaging thousands of buildings and killing a large number of people. (AP Photo/Firdia Lisnawati)

Yahoo Finance Originals

Every Wells Fargo consumer scandal since 2015: A timeline

Here’s your Trump trade war scorecard

Papa John’s is getting a $50 million makeover

What the Les Moonves and Urban Meyer investigations say about #MeToo

How somebody stole $7,800 out of my wife’s checking account

Like what you just read? Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. And feel free to share it with a friend!

The Morning Brief provides a quick rundown on what to watch in the markets, top news stories, and the best of Yahoo Finance Originals.