Tuesday headlines include Marathon Petroleum forecasting a weak second quarter, McDonald's opening a restaurant in the city formerly known as Saigon, Baidu buying a Chinese app-store operator, Apollo's annuity deal drawing extra scrutiny from regulators and Beam opening a corporate office in Louisville, Ky.
Refiner Marathon Petroleum (MPC) forecast weak second-quarter results Monday. The company said it expects to earn $1.75 to $1.85 per share, including 12 cents per share in one-time pension-related charges. Analysts had expected earnings of $2.65 per share. The company said it has been hurt by lower crude oil price differentials. Marathon also said that the Renewable Fuels Standard law is having an effect on its results.
Fast-food chain McDonald's (MCD) is expanding into Vietnam. The company has awarded its first franchise in the company to the son-in-law of the country's prime minister. McDonald's will open a restaurant in Ho Chi Minh city, which was known as Saigon and was the base of operations for the United States armed forces until it fell to Communist forces 38 years ago. The company said that Vietnamese-American Henry Nguyen was selected based on a “rigorous” selection process.
Coffee chain Starbucks (SBUX) is facing a lawsuit from a group of 12 deaf customers who claim employees at a Starbucks mocked them and then called police to get them out of the restaurant. The suit claims on employee laughed at the speech of one of the plaintiffs. The suit also says that police were called to the store in lower Manhattan after more than 10 people, some of whom bought coffee and food items, assembled for a monthly meeting of a group called Deaf Chat Coffee. Police found no illegal conduct and apologized to the plaintiffs and reprimanded the store employees.
Chinese internet search giant Baidu (BIDU) reached an agreement to acquire 91 Wireless, a company that develops app stores in China. Baidu will pay $1.9 billion as it works to expand beyond its core search business to compete with rival Alibaba and others.
A deal that would have Athene Holdings, an affiliate of Apollo Global Management (APO), acquire the U.S. annuity business of Aviva Plc (AV) is drawing scrutiny from the New York Department of Financial Services. Benhamin Lawsky, who is the superintendent of the regulator, is concerned that private equity companies expanding into the annuity business may put annuity holders at risk. The regulator is in talks with Apollo on a deal that would place tough disclosure and capital requirements on Apollo. Those requirements do not apply to traditional insurance companies.
Liquor company Beam Inc. (BEAM) is opened a corporate presence in Louisville, Ky. on Monday. The company is based in Deerfield, Ill. The Global Business Services Center in Louisvill is the company's first non-liquor producing operation in bourbon country. The center will initially have about 30 employees in Louisville.