World Street: Tokyo Metro Rises, Starbucks Faces Challenges, Tupperware Agrees to Lender Takeover

Tupperware Agrees to Lender Takeover

Tupperware Brands, the bankrupt food storage company, has agreed to sell its business to a group of lenders for $23.5 million in cash and more than $63 million in debt relief. This deal cancels plans for an open-market auction of its assets. The agreement was announced at a bankruptcy court hearing in Delaware where US Bankruptcy Judge Brendan Shannon stated that the sale was likely the best outcome considering the company's difficult and challenging circumstances.

Tokyo Metro Rises on Stellar Debut

Shares of Japanese subway operator Tokyo Metro surged nearly 45 percent following its stellar public listing. The company raised 348.6 billion yen ($2.3 billion), becoming Japan's largest IPO in six years. Priced at the upper end of the 1,100 yen to 1,200 yen range, Tokyo Metro is a major player in Japan's subway industry and the largest operator in Tokyo, co-owned by the national government and the Tokyo metropolitan government.

General Motors Surges After Strong Earnings

General Motors shares soared 10 percent overnight, posting their largest single-day gain since the volatile trading days of March 2020. This surge came after GM exceeded Wall Street’s third-quarter earnings expectations and updated its guidance for 2024, reaffirming its commitment to rewarding shareholders with returns.

Starbucks Faces Sales Struggles

Starbucks Corp. has withdrawn its guidance for 2025 after experiencing its third consecutive quarter of declining sales. The coffee giant reported a 7 percent drop in same-store sales for Q4, ending September 29, with US transactions down 10 percent and a 14 percent decrease in comparable sales in China. This strategic withdrawal is aimed at allowing new CEO Brian Niccol to evaluate business operations.

Market Insights

Norway’s sovereign wealth fund, among the largest globally, reported a third-quarter profit of 835 billion Norwegian kroner ($76.3 billion), connected to stock market gains. The fund’s total value reached 18.870 trillion kroner by the end of September, achieving a 4.4 percent return, slightly under its benchmark index.

Impact of E. Coli Outbreak on McDonald's

McDonald's shares dropped 7 percent after the CDC linked an E. coli outbreak to their Quarter Pounder burgers, resulting in multiple hospitalizations and one death. McDonald's has since removed suspected ingredients from affected locations.