Marriott says it has received $124 million fine from UK over Starwood 2018 breach

Marriott International Inc.’s shares MAR, -0.50% slid 1.6% in premarket trade Tuesday, after the hotel chain said it has been informed by the UK Information Commissioner’s Office that it plans to fine Marriott 99.2 million pounds ($123.6 million) over the Starwood reservation database breach reported in Nov. of 2018. "We are disappointed with this notice of intent from the ICO, which we will contest," Marriott Chief Executive Arne Sorenson said in a statement. "Marriott has been cooperating with the ICO throughout its investigation into the incident, which involved a criminal attack against the Starwood guest reservation database." The company said the database in question is no longer in use for business operations. Shares have gained 30.2% in 2019, while the S&P 500 SPX, -0.48% has gained 18.7%.

Cisco plans to acquire Acacia Communications in a $2.6 billion deal

• Cisco plans to acquire Acacia Communications for $70 per share in cash in a $2.6 billion deal on a fully diluted basis, the companies announced.
• The deal is expected to close during the second half of Cisco's fiscal year 2020, the companies said.
• Cisco expects the acquisition to enhance its networking business.

Cisco plans to acquire Acacia Communications for $70 per share in cash in a $2.6 billion deal on a fully diluted basis, the companies announced Tuesday.

Acacia was up more than 38% during premarket trading Tuesday, adding more than $700 million to its market cap, which is now $2 billion. Cisco was down 1% in the premarket.

The acquisition will enhance Cisco's optical systems portfolio, according to a press release. Acacia is a networking company that is already a supplier for Cisco.

The deal is expected to close in the second half of Cisco's fiscal year 2020, according to the announcement. Acacia employees will become part of Cisco's Optical Systems and Optics business upon the close, the companies said.

Last year, Cisco announced plans in August to acquire cloud-based cybersecurity firm Duo Security for $2.35 billion in cash and stock. In December, Cisco said it planned to acquire semiconductor company Luxtera for $660 million in cash and assumed equity.

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Plans to slash Greek bank sour loan pile is ambitious, says source

ATHENS, July 9 (Reuters) – Plans by Greek banks to reduce sour loans by 54 billion euros ($60.50 billion) by the end of 2021 is ‘ambitious’, a source familiar with the situation in the country’s banking sector said on Tuesday.

“They must work hard to achieve it,” the source said.

Soured loans are the biggest challenge facing Greek banks, the legacy of a multi-year debt crisis that shrank the economy by a quarter and drove unemployment to a high of nearly 28 percent in 2013.

Canadian housing starts surge 26% in June -CMHC

TORONTO, July 9 (Reuters) – Canadian housing starts rose much more than expected in June compared with the previous month, led by groundbreaking on multiple unit urban homes, data from the national housing agency showed on Tuesday.

The seasonally adjusted annualized rate of housing starts rose to 245,657 units from a revised 196,809 units in May, the Canadian Mortgage and Housing Corporation (CMHC) said. Economists had projected starts to rise to 210,000. (Reporting by Fergal Smith)

France plans new tax on outbound flights, airline shares fall

• France to introduce an eco-tax on flights.
• European airline stocks falls on the news.
• The European Union Commission currently grants tax exemptions for jet fuel.

France will introduce an eco-tax on airlines flying out of France, which is expected to raise around 180 million euros ($201.67 million) from 2020, transport minister Elisabeth Borne said on Tuesday.

Borne said France will gradually introduce the tax, which will amount to about 1.5 euros for an economy class ticket on flights within France or the European Union, 9 euros for business class tickets, and up to 18 euros for business class ticket for flights out of the EU region.

There will be no tax on transit flights.

"We have decided to put in place an eco-tax on all flights from France," Borne said during a news conference, adding that the funds will finance daily transport in France.  Shares of Air Franceand Lufthansa extended losses and were down 4.5% and 2.5% respectively following the announcement.

French President Emmanuel Macron's government wants to tighten environmental regulation but had to abandon an attempt to increase tax on diesel fuel latelast year following the"yellow vest" protest movement.

France wants the new European Union Commission to push for an end to global tax exemptions for jet fuel to reduce CO2 emissions, and has also linked up with the Netherlands try and convince fellow European nations to tax airline travel more.

Square stock gains after Raymond James ends bearish call

Square Inc. shares SQ, -1.18% are up 1% in premarket trading Tuesday after Raymond James analyst John Davis upgraded the stock to market perform from underperform. He established his bearish call on Jan. 29. "Specifically, we had concerns that the magnitude of the top-line beats would likely wane, and more importantly, the deceleration in 2Q19 organic growth could catch some investors by surprise," Davis wrote. "Following the company’s smallest revenue beat in recent memory in 1Q (+$7 million above top end of guide), a 2Q guide that came in below expectations, and a now well-telegraphed margin cadence (~+200 bp), the negative catalysts have mostly played out and the stock has lagged peers." He said the risk-reward profile is more balanced now for Square’s stock and argued that the company’s debit card for businesses is beginning to gain traction. Square shares have fallen 1.6% over the past three months, while the S&P 500 SPX, -0.48% has risen 3.4%.