Stock Markets
Walmart unwinds JD.com investment, to focus on own China ops
By Kane Wu, Summer Zhen
HONG KONG (Reuters) -Walmart sold its entire stake in JD (NASDAQ:).com, ending an eight-year investment in the Chinese e-commerce firm that was yielding waning returns, and the U.S. retail giant said it would focus on its own operations in China.
The move comes as competition for online shoppers’ money in China has led to steep discounts from companies including JD.com as well as Alibaba (NYSE:), which has squeezed their margins.
“This decision allows us to focus on our strong China operations for Walmart (NYSE:) China and Sam’s Club, and deploy capital towards other priorities,” Walmart said in a statement, adding it was committed to a continued commercial relationship with the Chinese company, which carries Walmart goods on its website.
Walmart invested in JD.com in 2016 by selling its Chinese online grocery store Yihaodian to JD.com in return for a 5% stake in JD.com itself.
Shares of JD.com have fallen around 70% from their peak in early 2021 and prices are close to the levels in 2016. JD.com sales growth has stagnated after the pandemic as shoppers have flocked to rival low-cost e-commerce firm Pinduoduo (NASDAQ:).
The US retailer’s share sale was fully subscribed, a person familiar with the matter told Reuters on Wednesday, and would be worth $3.74 billion at the top end of the offered range.
“Walmart wanted to get exposure in China in 2016 and kind of learned the retail business there,” said Thomas Hayes, chairman at investment firm Great Hill Capital. “They did it and they expressed that interest through JD and now they have their own exposure and their own interests in China, and they no longer need a minority position in JD when they have a great business themselves.”
JD.com said in a statement on Wednesday it was confident about the future cooperation between the two companies. As part of the original contract, Walmart and JD.com worked together to leverage their supply chains, broadening the range of imported products for Chinese consumers.
JD.com’s Hong Kong-listed shares closed nearly 9% lower on Wednesday. Its U.S.-listed shares were down 5% in midday trading.
Shares of Walmart were up 0.6% on Wednesday, after hitting a record high of $75.58.
In the latest quarter, Walmart reported a 17.7% year-on-year rise in revenue from its China business to $4.6 billion on the back of strong growth in its Sam’s Club warehouse chain and its digital offering.
Its membership income in China from its Sam’s Club business grew 26% as member count continues to increase. The company has about 48 clubs in China.
Walmart offered 144.5 million American depositary shares of JD.com in the price range of $24.85 to $25.85, according to a term sheet seen by Reuters. Morgan Stanley was the broker-dealer of the offering.
The shares were offered at a discount of up to 11.8% to Tuesday’s closing price of $28.19. Morgan Stanley did not respond to a request for comment.
The stake sale allows Walmart to raise capital and refocuses JD.com on its core online business, but a strategic partnership between the pair can continue, especially in data sharing, said Jeffrey Towson, a Beijing-based partner at TechMoat Consulting.
Stock Markets
Israeli strikes kill dozens in Gaza over 48 hours, Palestinian officials say
By Nidal al-Mughrabi
CAIRO (Reuters) -Israeli military strikes across the Gaza Strip have killed at least 120 Palestinians over the last 48 hours and hit a hospital on the northern edge of the enclave, wounding medical staff and damaging equipment, Palestinian medics said on Saturday.
Among the dead were seven members of one family whose house was hit overnight in the Zeitoun suburb of Gaza City, the health officials said. The rest were killed in separate Israeli strikes in central and southern Gaza.
At the same time, Israeli forces deepened their incursion and bombardment of the northern edge of the enclave, their main offensive since early last month.
A spokesperson for the armed wing of Hamas said a female Israeli hostage in the group’s custody had been killed in a northern area under attack by Israeli forces.
“The life of another female prisoner who used to be with her remains in imminent danger,” spokesperson Abu Ubaida added, accusing the government of Israeli Prime Minister Benjamin Netanyahu of being to blame.
An Israeli military spokesperson said it was investigating the Hamas report.
“At this point, we are unable to confirm or deny it,” the spokesperson said. “Hamas continues to engage in psychological terrorism and act in a cruel manner.”
A group representing hostages’ families did not immediately reply to a request for comment.
DAMAGE, INJURIES AT HOSPITAL
Israel’s military says its operations in northern Gaza aim to prevent Hamas fighters from carrying out attacks and regrouping. Local residents say they fear the goal is to permanently depopulate a strip of territory as a buffer zone, something Israel denies.
At Kamal Adwan Hospital, one of three medical facilities on the northern edge of Gaza that is barely operational, director Hussam Abu Safiya said the ongoing Israeli bombardment in the area appeared aimed at forcing hospital staff to evacuate – something they have refused to do since the incursion began.
“Yesterday (Friday), from the afternoon until midnight, the bombardment directly targeted the entrance to the emergency and reception area several times,” he said in a statement, adding that 12 staff members including doctors and nurses were injured.
The strike also caused significant damage that disrupted the electrical generator, oxygen supply network and water supply, he added.
Asked to comment on Abu Safiya’s statement, the Israeli military said that following an initial review it was “not aware of a strike in the area of the Kamal Adwan Hospital”, adding that it does everything possible to avoid harming civilians.
Israel says Hamas uses hospitals and civilians as human shields, and has made public videos and photos to support that claim. Hamas rejects the allegations and says it does not use the civilian population or facilities for military purposes.
Israel’s 13-month campaign in Gaza has killed more than 44,000 people and displaced nearly all the enclave’s population at least once, according to Gaza officials.
The war was launched in response to an attack by Hamas-led fighters who killed 1,200 people and captured more than 250 hostages in Israel on Oct. 7, 2023, Israel has said.
Months of attempts to negotiate a ceasefire have yielded scant progress and negotiations are now on hold, with mediator Qatar having suspended its efforts until the sides are prepared to make concessions.
Hamas wants a deal that ends the conflict, and leads to the release of Israeli and foreign hostages held captive in Gaza as well as Palestinians jailed by Israel, while Netanyahu has said the war can end only once Hamas is eradicated.
Stock Markets
Trump expected to pick Brooke Rollins to be agriculture secretary, WSJ reports
WASHINGTON (Reuters) -U.S. President-elect Donald Trump is expected to pick Brooke Rollins (NYSE:), president of the America First Policy Institute, to be agriculture secretary, the Wall Street Journal reported on Saturday.
If confirmed, Rollins would lead a 100,000-person agency with offices in every county in the country, whose remit includes farm and nutrition programs, forestry, home and farm lending, food safety, rural development, agricultural research, trade and more. It had a budget of $437.2 billion in 2024.
Trump’s transition team did not immediately respond to a request for comment.
The nominee’s agenda would carry implications for American diets and wallets, both urban and rural. Department of Agriculture officials and staff negotiate trade deals, guide dietary recommendations, inspect meat, fight wildfires and support rural broadband, among other activities.
The America First Policy Institute is a right-leaning think tank whose personnel have worked closely with Trump’s campaign to help shape policy for his incoming administration. She chaired the Domestic Policy Council during Trump’s first term.
If confirmed, Rollins would advise the administration on how and whether to implement clean fuel tax credits for biofuels at a time when the sector is hoping to grow through the production of sustainable aviation fuel.
The nominee would also guide next year’s renegotiation of the U.S.-Mexico-Canada trade deal, in the shadow of disputes over Mexico’s attempt to bar imports of genetically modified corn and Canada’s dairy import quotas.
Trump has said he again plans to institute sweeping tariffs that are likely to affect the farm sector.
He was considering offering the role to former U.S. Senator Kelly Loeffler, a staunch ally whom he chose to co-chair his inaugural committee, CNN reported on Friday.
Stock Markets
ICC warrants are binding, EU cannot pick and choose, EU’s Borrell says
By Michele Kambas
NICOSIA (Reuters) – European Union governments cannot pick and choose whether to execute arrest warrants issued by the International Criminal Court against two Israeli leaders and a Hamas commander, the EU’s foreign policy chief said on Saturday.
The ICC issued the warrants on Thursday against Israeli Prime Minister Benjamin Netanyahu, his former defence minister Yoav Gallant and Hamas leader Ibrahim Al-Masri, for alleged crimes against humanity.
All EU member states are signatories to the ICC’s founding treaty, called the Rome Statute.
Several EU states have said they will meet their commitments under the statute if needed, but Hungarian Prime Minister Viktor Orban has invited Netanyahu to visit his country, assuring him he would face no risks if he did so.
“The states that signed the Rome convention are obliged to implement the decision of the court. It’s not optional,” Josep Borrell, the EU’s top diplomat, said during a visit to Cyprus for a workshop of Israeli and Palestinian peace activists.
Those same obligations were also binding on countries aspiring to join the EU, he said.
“It would be very funny that the newcomers have an obligation that current members don’t fulfil,” he told Reuters.
The United States rejected the ICC’s decision and Israel said the ICC move was antisemitic.
“Every time someone disagrees with the policy of one Israeli government – (they are) being accused of antisemitism,” said Borrell, whose term as EU foreign policy chief ends this month.
“I have the right to criticise the decisions of the Israeli government, be it Mr Netanyahu or someone else, without being accused of antisemitism. This is not acceptable. That’s enough.”
Israel’s 13-month campaign in Gaza has killed about 44,000 Palestinians and displaced nearly all the enclave’s population while creating a humanitarian crisis, Gaza officials say.
Israel began its offensive after the Hamas-led attack on Oct. 7, 2023, which killed 1,200 people in southern Israel, with more than 250 others taken hostage, Israel has said.
In their decision, the ICC judges said there were reasonable grounds to believe Netanyahu and Gallant were criminally responsible for acts including murder, persecution and starvation as a weapon of war as part of a “widespread and systematic attack against the civilian population of Gaza”.
The warrant for Masri lists charges of mass killings during the Oct. 7, 2023, attacks. Israel says it has killed Masri.
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