Transcription:
CONWAY GITTENS: I'm Conway Gittens reporting from the New York Stock Exchange. Here's what we're watching today on TheStreet.
Investors are reacting to the June jobs report: the US economy added 206,000 jobs in June, and the unemployment rate rose to 4.1%, slightly above analysts' expectations. It is the first time the unemployment rate has exceeded 4% since November 2021. This report will be crucial when the Federal Reserve holds its next monetary policy meeting at the end of July.
In other news, HBC, the parent company of Saks Fifth Avenue, announced it will buy retailer Neiman Marcus. The merger, valued at $2.65 billion, prompted HBC to create a new firm, called Saks Global, combining Saks, Bergdorf Goodman and the newly acquired Neiman Marcus.
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But HBC isn't the only major player involved in the deal. amazon is also investing in the merger. The internet retail giant has been trying to increase its physical presence in the retail industry for years. It has also tried to break into the luxury retail market, at one point negotiating deals to start a luxury stores division. Now, it will work with Saks Global to “innovate on behalf of customers and brand partners following the close of the transaction.”
The deal could, however, come under scrutiny from the Federal Trade Commission (FTC). The FTC has already filed a lawsuit to block a major retail merger: Coach's parent company, Tapestry, proposed acquiring Capri, which owns Michael Kors.
Saks Fifth Avenue has 39 stores in North America, as well as numerous Saks Off 5th locations. Neiman Marcus has 36 locations, as well as two Bergdorf Goodman stores.
That's it for the daily roundup. From the New York Stock Exchange, I'm TheStreet's Conway Gittens.
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