Beyond Meat's stock falls after former investor Tyson Foods announces plant-based nuggets - CNBC

Shares of Beyond Meat fell about 4% in premarket trading Thursday after Tyson Foods announced plans to launch plant-based nuggets later this summer.

Since going public in early May, Beyond's stock has soared 468%. Its market value is about $8.3 billion, roughly one third of that of Tyson, the nation's largest meat producer.

But one early investor has missed out on the success of Beyond's market debut: Tyson. The company sold its stake prior to Beyond's initial public offering because it planned to offer its own meat alternative products. The meatpacker announced Thursday that it planned to launch imitation chicken nuggets later this summer, as well as burger patties blending meat with vegetables in the fall.

Beyond does not currently offer any plant-based chicken products, but the company is working on a new and improved version of its chicken strips, which it pulled from grocery store shelves earlier this year.

Even with shares falling Thursday to around $137, Beyond's stock price remains above the price targets of analysts, the highest of which is $123. No one on Wall Street recommends buying the stock anymore because of its hot streak. The stock has been gyrating as analysts have raised concern about its monster run and short sellers have taken an interest.

Tyson's announcement comes as Beyond faces increased competition in the plant-based meat market. Nestle is planning to launch its own plant-based burger this fall in the U.S. under its Sweet Earth brand.

Credit Suisse analyst Robert Moskow wrote in a note Thursday that he does not view Tyson's hybrid burgers as a major threat to Beyond.

"Although competing hybrid burgers offer less saturated fat than the 100% plant-based products from Beyond and Impossible, they simply don't taste as good in our experience," he wrote.

Euromonitor expects that the market for meat alternatives will hit $22.9 billion globally by 2023. Tyson said that alternative protein could be a billion-dollar business for the company someday. The flexitarian diet is driving that growth, with nearly 60% of U.S. consumers expressing interest in eating less meat, according to Mintel.

While Beyond has said that the company has enough capacity to handle projected demand for the next two years, Big Food companies like Tyson and Nestle have even more muscle when it comes to production and research and development.

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2019-06-13 13:35:34Z
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Oil Prices Surge as Suspected Tanker Attacks Eclipse OPEC Demand Forecast - Investing.com

© Reuters.

Investing.com - Oil prices surged on Thursday as suspected attacks on tankers in the Gulf of Oman eclipsed the fact that OPEC cut its forecast for global demand and recognized “significant downside risks”.

New York-traded jumped $2.06, or 4.0%, to $53.20 a barrel by 8:31 AM ET (12:31 GMT), while , the benchmark for oil prices outside the U.S. soared $2.42, or 4.0%, to $62.39.

The reports of near the Strait of Hormuz, a major strategic waterway through which a fifth of global oil consumption passes from Middle East producers, sent prices soaring.

Coming after attacks on four tankers near the Persian Gulf last month, the news raised concerns over potential disruptions to oil flows. It wasn't clear who was responsible for the attacks. The tankers had been loaded in Saudi Arabia and the United Arab Emirates, according to reports.

Crude had plunged nearly 4% on Wednesday after a surprisingly large increase in spurred further concerns over the state of demand in a weakening world economy.

Investing.com senior commodity analyst Barani Krishnan referred to the weekly report as “another woeful data sheet hardly reflective of the peak season for oil demand”.

Oil had its worst monthly performance of 2019 in May as traders shifted their focus from tightening supply (in the form of OPEC-led output cuts) to weakening demand, exacerbated by concerns that the ongoing trade dispute between the U.S. and China will dent the global economy.

In its released Thursday, this year from 1.21 million barrels per day (bpd) to 1.14 million bpd and noted that “significant downside risks from escalating trade disputes spilling over to global demand growth remain”.

OPEC joined the U.S. Energy Information Agency, which also lowered its global demand forecast earlier this week. The International Energy Agency will likely follow suit when it releases its own monthly report on Friday.

Ellen Wald, president of Transversal Consulting and Investing.com contributor, suggested that oil market’s obsession with a potential demand collapse may be overdone. She that revealed that growth in energy consumption was nearly double the 10-year average rate.

“The BP (LON:) report should remind market watchers that even though organizations and banks are cutting their forecasts for oil demand growth in 2019, the world still needs energy in general - and more of it,” she said.

In other energy trading, rose 2.5% at $1.7289 a gallon by 8:34 AM ET (12:34 GMT), while traded up 3.0% at $1.8338 a gallon.

Lastly, fell 0.7% at $2.369 per million British thermal unit.

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2019-06-13 12:36:00Z
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Tyson Launches Its First Plant-Based Protein Brand to Compete With Beyond Meat - Gizmodo

Image: Tyson Foods

Tyson Foods is launching the company’s first plant-based protein brand, called Raised & Rooted, that will feature vegetarian nuggets that taste like chicken and vegetarian burgers that taste like beef. Tyson’s new brand will compete with Beyond Meat, one of the first companies along with Impossible Foods to make a completely plant-based burger that tastes exactly like a beef hamburger.

The news about Tyson, first reported by The New Food Economy, comes in the wake of Beyond Meat going public in May with a $1 billion valuation. Beyond Meat’s stock has surged 500 percent since its IPO.

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“Today’s consumers are seeking more protein options so we’re creating new products for the growing number of people open to flexible diets that include both meat and plant-based protein,” Noel White, president and CEO of Tyson Foods, said in a press release.

Tyson’s new Raised & Rooted nuggets will first hit supermarket shelves later this summer and its burgers are expected to be available this autumn.

Tyson, the largest meat producer in the U.S., explains that both the nuggets and burgers are primarily made from pea protein:

The Raised & Rooted nuggets are made from a blend of pea protein isolate and other plant ingredients and contain five grams of fiber and omega-3s, and less saturated fat than traditional nuggets. The blended burger is made with Angus beef and pea protein isolate and has fewer calories and less saturated fat than the plant-based burgers sold by several competing companies.

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While the first product categories for Raised & Rooted are limited to “chicken” nuggets and burgers, the company hinted that it will be exploring other categories soon.

“While most Americans still choose meat as their primary source of protein, interest in plant and blended proteins is growing significantly,” Noelle O’Mara, Tyson Foods’ chief marketing officer, said in a statement.

“These products appeal to a broad cross section of consumers who enjoy food from a variety of protein sources and we expect interest to continue to grow across protein types. The Raised and Rooted launch and our pipeline of innovation will reflect our consumers expectations for 100% plant based, blended, and traditional protein offerings.”

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Photo: Tyson

Tyson was an investor in Beyond Meat until the company recently sold its 6.5 percent stake back in April. That stake was reportedly worth about $79 million.

Tyson’s sausage and meatball brand Aidells is also launching a new Aidells Whole Blends brand which will feature chicken as well as plant-based products, hoping to appeal to health-conscious consumers looking to cut red meat from their diets.

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Tyson is betting that American consumers want to introduce more plant-based options to their plate, even if they’re not vegan or vegetarian on a full time basis.

“For us, this is about ‘and’ – not ‘or,’” CEO White said. “We remain firmly committed to our growing traditional meat business and expect to be a market leader in alternative protein, which is experiencing double-digit growth and could someday be a billion-dollar business for our company.”

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2019-06-13 11:45:00Z
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Tyson Foods unveils plant-based nuggets as it moves into meat alternatives - CNBC

Tyson Foods' Raised & Rooted plant-based nuggets

Tyson Foods

The nation's biggest meat producer is plotting its entry into plant-based meat substitutes.

Tyson Foods said Thursday it will debut plant-based nuggets this summer as part of a new brand, Raised & Rooted, that will sell plant-based and blended meat products.

Tyson executives have been teasing the company's move into meat alternatives since February, but this is the first time the meatpacker is revealing its plans to compete with the likes of Impossible Foods and Beyond Meat.

Shares of Beyond Meat fell 4% in premarket trading Thursday after the announcement, while Tyson's stock rose 3%. The maker of plant-based meats has a market value of $8.5 billion, roughly a third of Tyson's market value. 

"We remain firmly committed to our growing traditional meat business and expect to be a market leader in alternative protein, which is experiencing double-digit growth and could someday be a billion-dollar business for our company," Tyson CEO Noel White said in a statement.

The flexitarian diet is driving the growth of the market for meat alternatives, which Euromonitor expects will hit $22.9 billion globally by 2023. Nearly 60% of U.S. consumers are interested in eating less meat, according to Mintel.

Beyond Meat, a former Tyson investment, previously sold plant-based chicken strips, but the company pulled the product from grocery store freezers earlier this year.

Tyson's imitation nuggets use pea protein in place of chicken. The company also plans to release a blended burger made with Angus beef and pea protein under the new brand.

The Springdale, Arkansas-based company said it plans to introduce more alternative protein products across its portfolio of brands and to food-service operators. The company's Aidells brand already sells sausage and meatballs that blend chicken with plant-based ingredients.

Perdue Foods, another large meat producer, said Wednesday it will distribute new chicken nuggets, tenders and patties that blend meat with vegetables.

In addition to the new brand, Tyson has been investing in start-ups focused on alternative proteins. The company's venture capital fund has invested in mushroom-based protein producer MycoTechnology and cultured meat producers Memphis Meats and Future Meat Technologies.

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2019-06-13 11:00:36Z
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OPEC's oil output falls to 5-year low in May as group warns of weaker demand - CNBC

Workers drill at the Saudi Aramco oil field complex facilities in Shaybah, Saudi Arabia.

Reza | Getty Images

Oil output from OPEC fell in May, hitting a five-year low as the group warned that U.S.-China trade tensions could lead to slower economic growth and weak fuel demand.

Production from the 14-nation producer club fell by 236,000 barrels per day last month to 29.88 million bpd, according to independent sources cited by OPEC in its monthly report. It was the first time OPEC pumped below 30 million bpd since June 2014.

The slump in production comes as OPEC is considering whether to extend a six-month deal to hold down output. In the monthly report, OPEC says it will carefully consider the economic outlook when it meets with Russia and other oil-exporting nations in coming weeks.

"Throughout the first half of this year, ongoing global trade tensions have escalated, threatening to spill over, and geo-political risks remained in many key regions," OPEC said. "This has resulted in a slowdown in global economic activities, and weaker growth in global oil demand, both compared to a year earlier."

OPEC expects the global economy to remain under pressure in the second half of 2019, largely due to trade disputes, casting uncertainty over oil demand.

The group now expects global oil demand to grow by 1.14 million bpd in 2019, slightly lower than its last forecast. OPEC expects producers outside the group to hike output by 2.14 million bpd this year, meaning supply growth will swamp the rise in demand.

Concerns about softening demand have pushed oil prices to five-month lows, but crude futures rose about 3% on Thursday on reports of tanker attacks in the Gulf of Oman.

OPEC's output cuts and supply disruptions continue to lend support to the market. Together with Russia and other producers, OPEC is trying to keep 1.2 million bpd off the market.

In May, top OPEC producer Saudi Arabia's output fell by 76,000 bpd to 9.69 million bpd. The kingdom continues to voluntarily pump well below its quota of 10.31 million bpd.

Oil supplies also continued to fall in Iran and Venezuela, both of which have been targeted by U.S. energy sanctions. In Iran, production fell by 227,00 bpd to 2.37 million bpd, while Venezuela's output fell 35,000 bpd to 741,000 bpd.

Nigeria, Africa's largest producer, also saw output fall by 92,000 bpd to 1.73 million bpd.

The losses were slightly offset by production increases in Iraq and Angola.

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2019-06-13 10:42:18Z
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Hong Kong leads Asian stocks lower, oil fragile at five-month lows - Investing.com

© Reuters. A woman points to an electronic board showing stock prices as she poses in front of the board after the New Year opening ceremony at the Tokyo Stock Exchange (TSE), held to wish for the success of Japan's stock market, in Tokyo

By Hideyuki Sano

TOKYO (Reuters) - Asian shares slumped on Thursday as the Hong Kong market was hit for the second straight session following a day of massive street protests, while oil prices flirted with five-month lows due to higher inventories and a bleak demand outlook.

Fading hopes that the United States and China will clinch a deal on the sidelines of a Group of 20 summit meeting in Osaka on June 28-29 also hurt sentiment and drove bond yields down.

"There's not even a plan of ministerial-level bilateral meetings ahead of the G20 summit. You can't expect any major agreement," said Hirokazu Kabeya, chief global strategist at Daiwa Securities.

European stock are expected to fall, with futures Britain's and Germany's down about 0.2%.

MSCI's broadest index of Asia-Pacific shares outside Japan fell as much as 1% and was last off 0.6%.

Hong Kong's tumbled 1.8% at one point following Wednesday's 1.7% fall.

The selling pressure in Hong Kong came after legislation that would allow citizens to be extradited to China triggered a mass protest and some of the worst unrest seen in the territory since Britain handed it back to Chinese rule in 1997.

Japan's lost 0.8% while U.S. stock futures slipped 0.2% in Asia, following small losses the previous day when the shed 0.20%.

Oil hovered near five-month lows, pressured by another unexpected rise in U.S. crude stockpiles, as well as the bleaker outlook for demand posed by prospects of a protracted trade war between China and the United States.

futures barely moved at $60.06 after a 3.7% slide on Wednesday to $59.97 a barrel, the international benchmark's lowest close since Jan. 28.

U.S. West Texas Intermediate crude futures stood at $51.12 per barrel, compared to the previous day's close of $50.72 a barrel, its weakest settlement since Jan. 14.

"It is a bit of mystery that oil prices are so low when global stock prices remain relatively supported. But one thing is certain. Weaker oil prices will curb inflation and boost rate cut expectations," said Daiwa's Kabeya.

Government data showed on Wednesday U.S. consumer prices barely rose in May, with the core annual inflation slowing to 2.0%, compared to a peak of 2.4% last July, adding to the growing expectations of a Federal Reserve rate cut in coming months.

Investors will be looking to what Fed policymakers will say after its next policy meeting on June 18-19, with Fed Funds rate futures pricing in a 25-basis-point rate cut for the subsequent policy review on July 30-31.

That is completely at odds with the Fed's projection three months ago, when policy makers saw gradual rate hikes in coming years.

"The U.S. real economy has not worsened that much. But given market expectations, the Fed will have no choice but to cut rates... It will take an action as an insurance against potential downside risks to the economy as a Sino-U.S. trade deal looks unlikely for now," said Kozo Koide, chief economist at Asset Management One.

The 10-year U.S. Treasuries yield dipped to 2.103 percent, near Friday's 2.053 percent, its lowest level since September 2017.

Bond yields also fell in Asia. Long-dated Japanese government bond yields hit their lowest levels since August 2016, with 20-year yield down 2.5 basis points at 0.220 percent, before they rose back on a weak 30-year bond auction.

In Australia, long known for its high-yield currency, rates fell to record lows, with three-year yield now slipping below 1 percent after the country's jobs data pointed to another interest rate cut in July to follow one just last week.

In the currency market, the yen gained 0.2% to 108.32 to the dollar as risk sentiment soured while the Australian dollar dropped 0.25% to $0.6910.

The euro stood little changed at $1.1293, having taken a hit on Wednesday after U.S. President Donald Trump said he was considering sanctions over Russia's Nord Stream 2 pipeline project and warned Germany against being dependent on Russia for energy.

The British pound is on the back foot after British lawmakers defeated an attempt led by the opposition Labour Party to try to block a no-deal Brexit by seizing control of the parliamentary agenda from the government.

Sterling fetched $1.2688, not far from this week's low of $1.2653.

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2019-06-13 08:05:00Z
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Ford recalls 1.2 million Explorer SUVs over suspension failure fears - CNET

Ford's Explorer is being recalled over potential fractured rear toe links in the vehicle's suspension.

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Ford has just released a quartet of safety recalls, with three of them impacting US customers. 

The biggest one covers Ford's very popular 2011-2017 Explorer SUV, and it focuses on the possibility of a fractured rear toe link in the vehicle's suspension. In all, approximately 1.2 million vehicles are covered in the US and its federalized territories, as well as Canada and Mexico.

According to an official release by Ford, affected fifth-generation Explorers that are "exposed to frequent full rear suspension articulation (jounce and rebound)" may experience the toe link failure, a condition that could significantly impact the vehicle's ability to be steered, increasing the chances for a crash.

The automaker says it's unaware of any injuries related to this potential failure, reporting only that one customer's SUV hit a curb after their toe link failed.

Affected Chicago Assembly Plant-built models will see dealers replace the potentially faulty suspension toe links on both sides and align the rear suspension.

Select 2013 Ford F-150 models face a recall of a recall.

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F-150 recall

Also being recalled are select 2013 Ford F-150 pickup trucks equipped with six-speed automatic gearboxes. The safety campaign, which covers around 123,000 North American models, is in effect a recall of a previous recall.

Affected F-150 models equipped with either a 5.0-liter or 6.2-liter V8 gas engine previously had their powertrain control module reprogrammed as part of another recall service action. Those vehicles may have received an incomplete software update.

According to the Dearborn-based automaker, the F-Series models under recall may not have received the necessary software updates "to prevent a potential unintended downshift into first gear." At speed, an unexpected and unwanted shift to first gear could trigger loss of control, possibly leading to an accident.

Additionally, F-150 models with the faulty programming may not properly trigger a fault indicator light when a problem is detected.

Ford dealers will reprogram affected powertrain control modules to remedy the issue.

Taurus, Flex, MKS, MKT recall

Speaking of fractured rear toe links, a handful of Ford's other models are vulnerable to a similar failure, including some upscale Lincoln derivatives. Those models include the 2010-2017 Ford Taurus and the 2009-2017 Flex crossover, as well as the 2009-2015 Lincoln MKS and the 2010-2017 Lincoln MKT crossover. 

Interestingly enough, Ford is only recalling around 12,000 Canadian-market vehicles located in the Alberta, Manitoba and Saskatchewan provinces. The automaker says it is aware of a single crash resulting in minor injuries.

As with the Explorer recall, Ford dealers will replace the left- and right-side toe links with new forged units.

Select Ford E-Series trucks are being recalled over faulty transmission welds.

Ford

Econoline recall

Finally, the Blue Oval is recalling around 4,300 examples of its 2009-2016 Econoline trucks equipped with the company's 5.4-liter V8 and 5R110W Torqshift transmission. Only Ford E-Series models equipped with a school bus or ambulance prep package are affected by the campaign.

According to the recall notice, the transmission's clutch component could have faulty capacitive discharge weld that may fail. While Ford says that "all normal engine, braking and steering functionality" remains unaffected, if fatigue leads the weld to fail, the vehicle may become immobilized -- potentially a particularly dangerous situation when children or patients are involved.

Ford will replace affected Econoline vehicles' coast clutch cylinder and swap a dual-engaging one-way clutch in for the single-engagement unit currently in place.

All recall-related repairs on all vehicles will be performed free of charge.

Now playing: Watch this: 2020 Ford Explorer is a more efficient, spacious and...

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2019-06-12 16:05:00Z
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