Markets Defused aims to give an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.
- Etsy wants to keep it real
- Wendy’s plans Ireland launch and scale up in the UK
- BP shares fell after $2bn refining write-off warning
- Thames Water confirmed it is running out of money
- Novo Nordisk slipped as research favoured Eli Lilly
- Dyson to Cut 1,000 jobs in UK
Etsy wants to keep it real with new product policy
Etsy Inc (NASDAQ:ETSY, ETR:3E2) is updating its seller policies to stamp-out generic and mass-produced goods, and putting the site’s emphasis back on original, handcrafted, artisan products.
It comes a week after the DIY e-commerce firm banned the sale of sex toys, vintage Playboy magazines and other ‘mature’ product categories.
The new changes are being rolled out by chief executive Josh Silverman as he seeks to once again differentiate Etsy from other e-commerce sites, especially amidst rising competition between Amazon and Chinese platforms Temu and Shein.
New guidelines will clarify what items can be sold on the platform, emphasizing the importance of handmade and unique products. The updated policies aim to make it clear to shoppers what products belong on Etsy.
Under the new rules, all items must incorporate a "human touch" and fall into one of four categories: handmade by a seller, designed by a seller, handpicked by a seller, or sourced by a seller.
Wendy’s plans Ireland launch and scale up in the UK
Wendy's (NASDAQ:WEN), the American fast-food chain, announced a plan to launch in Ireland and also expand upon its British footprint, following its 2021 return to the UK.
It comes as Wendy's plans to open hundreds of restaurants across Europe over the next decade.
The fast-food firm has now signed development agreements with franchisees in Ireland, and, has begun franchise recruitment efforts.
Wendy's aims to start opening new restaurants in 2025.
It re-entered the UK market in 2021, and it is planning to see up to 50 new restaurants by the end of this year - with a longer-term goal of reaching 400 restaurants in the U.K.
Thames Water confirmed it is running out of money
Thames Water, the water utility responsible for London’s water supply and sewerage, has warned it may run out of cash by May 2025.
The struggling company is not alone in its financial difficulties, but as the capital’s water company it is the highest profile, and, amidst a change in government it is very much in the spotlight this week.
Today’s cash warning highlights a potential need for financial intervention – either through private or public means.
The company stated it currently has £1.8 billion available but faces a £15.2 billion debt.
Despite its challenges, Thames Water paid £158.3 million in dividends to shareholders this year.
Later this week, the British water regulator Ofwat is due to mandate the next round of price determinations for the UK, with the industry calling for a substantial hike to support essential investments in maintenance and infrastructure.
BP shares fell after $2bn refining write-off warning
BP PLC (LSE:BP.) told investors that it expects to report an impairment of up to $2 billion for the second quarter of 2024, mainly due to weak refining margins.
Specifically, the oil and gas major anticipates writedowns relating to the scaling back of operations at its Gelsenkirchen refinery in Germany, which is set to be reduced by a third next year.
Also, BP flagged that its oil trading business is expected to be weak in the second quarter, while the performance of its gas trading business was described as ‘average’.
BP shares fell by 3.7% in London, to trade at 457.15p
Novo Nordisk slipped as research favoured Eli Lilly
Ozempic and Wegovy maker Novo Nordisk (NYSE:NVO) saw its shares drop nearly 2% on Monday, after a new study showed that Eli Lilly and Co (NYSE:LLY) weight loss treatments outperformed those made by its Danish rival.
The analysis, published in JAMA Internal Medicine, compared the weight loss effects of tirzepatide (Eli Lilly's Mounjaro) and semaglutide (Novo Nordisk (NYSE:NVO)'s Wegovy) in 18,000 overweight and obese adults over a year.
The study found that adults taking tirzepatide lost more weight at three, six, and twelve months compared to those taking semaglutide.
Specifically, the study claimed tirzepatide users were 76% more likely to lose at least 5% of their body weight, 154% more likely to lose 10%, and 224% more likely to lose 15%.
Nevertheless, it was not a “head to head” controlled trial, rather researchers compared health data and ‘weight loss trajectories’ of patients taking the respective drugs, and, also adjusted the findings to account for individual risk factors.
Dyson to Cut 1,000 jobs in UK
Vacuum and air-blower pioneer Dyson has announced plans to cut up to 1,000 jobs in the UK, as it pushes through a cost-cutting drive.
It will see more than a quarter of its UK workforce let go.
Dyson's employs around 3,500 employees across sites in Wiltshire, Bristol, and London.
The redundancies announced on Tuesday come as the company is reviewing its global structures.
Hanno Kirner, Dyson chief executive, said that the British vacuum innovator faces an increasingly fierce and competitive global markets.