Transcript:
CONWAY GITTENS: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Investors are reacting to the June jobs report – the U.S. economy added 206,000 jobs in June, with the unemployment rate ticking up to 4.1 percent, slightly above analyst expectations. This is the first time the jobless rate has been over 4 percent since November 2021. This report will be crucial when the Federal Reserve holds its next policy meeting at the end of July.
In other news - HBC, the parent company of Saks Fifth Avenue, announced it’s buying retailer Neiman Marcus. The $2.65 billion merger prompted HBC to create a new firm, dubbed Saks Global, that combines Saks, Bergdorf Goodman, and freshly acquired Neiman Marcus.
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But HBC isn’t the only big player involved in the deal. Amazon is also investing in the merger. The internet retail giant has tried growing its physical presence in the retail industry for years. It’s also tried breaking into the luxury retail market, at one point brokering deals to start a luxury stores division. Now, it will work with Saks Global to “innovate on behalf of customers and brands partners following the close of the transaction.”
However, the deal could face scrutiny from the Federal Trade Commission. The FTC has already sued to block one mega-retail merger - Coach parent Tapestry proposed an acquisition of Capri, the owner of Michael Kors.
Saks Fifth Avenue has 39 stores in North America to go along with numerous Saks Off 5th locations. Neiman Marcus has 36 locations, as well as two Bergdorf Goodman stores.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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