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Talking Points

PepsiCo jumps after Cheetos-Hungry Americans stock up on comfort

Americans seeking out familiar flavors filled their shelves with salty, crunchy treats, driving double-digit sales growth for brands like Tostitos, Fritos, and Cheetos.
Americans seeking out familiar flavors filled their shelves with salty, crunchy treats, driving double-digit sales growth for brands like Tostitos, Fritos, and Cheetos.Bing Guan/Bloomberg News

FOOD

PepsiCo’s bottom line boosted by at-home snacking

PepsiCo Inc. reported a stronger-than-expected spring as homebound consumers looking for comfort stocked up on snack foods — and its current-quarter forecast was even more bullish. As COVID-19 raged across the US, Americans seeking out familiar flavors filled their shelves with salty, crunchy treats, driving double-digit sales growth for brands like Tostitos, Fritos, and Cheetos. Even newer snacks like fruit-chips line Bare and Off The Eaten Path, a maker of black bean and chickpea crisps, saw double-digit growth as households loaded up. Beverage sales were one key weakness, as both in-restaurant and grab-and-go gas station sales lagged during the lockdowns. — BLOOMBERG NEWS

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PHARMACEUTICALS

Moderna named to Nasdaq-100

Moderna Inc. has been named the next member of the Nasdaq-100, a tech-heavy index that’s home to some of the biggest outperformers this year, including Tesla Inc. and Zoom Video Communications Inc. Word of the index inclusion, set to happen before the market opens July 20, added fuel to the vaccine developer’s Monday rally. Moderna climbed as much as 19 percent to the highest intraday since May 20 before closing up nearly 16 percent. Thanks to market-beating gains from Internet giants like Amazon.com Inc. and Netflix Inc., the Nasdaq 100 broke into record territory early last month and has kept on going. Since March 20, the index of leading nonfinancial Nasdaq-listed stocks has climbed 58 percent, compared with a 40 percent gain in the broader S&P 500. Moderna has soared more than 150 percent as the company tests its potential vaccine for COVID-19. After starting the year with a market value of about $6.5 billion, Moderna now exceeds $28 billion. — BLOOMBERG NEWS

MEDIA

Australia wants Google and Facebook to share revenue with news publishers

Facebook and Google have for years operated like shop windows for news stories, plying their billions of visitors with free snippets and information from articles across the web. An antitrust tussle that’s coming to a head in Australia is set to change that. Australia’s competition regulator will this month publish draft rules forcing the two US tech giants to share revenue generated from news with the original publishers, including Rupert Murdoch’s News Corp. A final version of the code, the first of its kind in the world, is due to follow soon after. Between them, Facebook and Google have a dominant position in the online advertising market and that has been under intensifying regulatory and political assault in the US and Europe, with Australia now adding another front of attack. — BLOOMBERG NEWS

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SHIPBUILDING

Strike at Bath Iron Works enters fourth week with no talks planned

BATH, Maine — A strike at Navy shipbuilder Bath Iron Works entered a fourth week on Monday with no talks between the company and the union representing 4,300 production workers. Both the company and Machinists Local S6 met separately with a federal mediator last week, but there has been no resumption of talks. Shipbuilders went on strike June 22 after overwhelmingly rejecting a three-year contract proposal from the company. The dispute isn’t over money. The company offered annual 3 percent raises but the union is focused on the hiring of subcontractors, changes in work rules, and issues involving seniority. — ASSOCIATED PRESS

RETAIL

Founder of former Lerner Shops Files for bankruptcy

RTW Retailwinds Inc., the parent of New York & Co., filed for bankruptcy, and the century-old women’s apparel chain may close all of its stores. RTW “expects to close a significant portion, if not all, of its brick-and-mortar stores” and has begun the process of shutting and liquidating some locations, the company said in a statement Monday. Founded more than a century ago as Lerner Shops, the company changed its name to New York & Co. in the late 1990s. —BLOOMBERG NEWS

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REMOTE WORK

At-home workers drinking less coffee

In a work-from-home world, hitting the local cafe for a daily caffeine fix has become a ritual of the now-forgotten past. And no matter how much kitchen brewing consumers take up, that just can’t seem to make up for the demand blow. Global coffee consumption is set to fall this year for the first time since 2011, the US Department of Agriculture predicts. That’s even with a huge surge in bean buying at the grocery store amid pantry loading. Shutdowns for cafes and restaurants — which typically account for about 25 percent of demand — were overwhelming. — BLOOMBERG NEWS

AVIATION

Southwest says it needs 3 times more passengers to avoid layoffs

Southwest Airlines Co. needs passenger numbers to triple by year-end if it’s going to avoid the carrier’s first ever involuntary job cuts, its chief executive officer said, even as rising coronavirus infections prompt some states to restrict travel. Southwest employees have until Wednesday to apply for voluntary separation or extended time off to help reduce spending on labor, the largest expense for airlines. Although some workers took previous shorter-term options, the carrier remains overstaffed for current operations, CEO Gary Kelly warned employees on Monday. — BLOOMBERG NEWS

STREAMING SERVICES

‘Tiger King’ tops ‘The Lion King’

Based on how Netflix Inc. and Walt Disney Co. are trading, Wall Street is more into “Tiger King” than “The Lion King.” With the pandemic keeping audiences indoors, streaming video has emerged as the go-to entertainment option, especially as theme parks and movie theaters remain widely closed. As a result, Netflix’s market capitalization has eclipsed that of Disney by a historic degree. Currently, the platform that made a documentary on big-cat breeding must-see TV has a market value of about $250 billion, compared with the $216 billion valuation for the home of Mickey Mouse and Simba the lion. — BLOOMBERG NEWS

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AVIATION

Quiet Heathrow closes one runaway for repairs

London Heathrow airport, normally the busiest in Europe, will close one of its two runways for repairs at the height of the summer season, a reflection of passenger traffic that remains near rock bottom because of coronavirus lockdowns. The landing strip will be shut down over coming weeks to allow preliminary works to take place, before reopening during the day with construction activity taking place at night, according to parent Heathrow Airport Holdings Ltd. The number of people passing through Heathrow was down 95 percent in June from a year earlier. — BLOOMBERG NEWS

TECHNOLOGY

Huawei sales soar in face of restrictions

Huawei Technologies said sales grew even as the company faces restrictions from a number of countries on the use of its telecommunications equipment. Revenue increased 13 percent to 454 billion yuan ($65 billion) in the first six months of 2020 after barely growing in the first quarter, the Shenzhen-based company said in an e-mailed statement on Monday. The White House has spearheaded a global campaign against Huawei, warning allies not to use it in their next generation 5G wireless networks because it can be influenced by the Chinese Communist Party. Huawei says it’s an independent company and denies its products pose unique risks. — BLOOMBERG NEWS

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