The daily business briefing: July 6, 2020

1. Developers cancel long-delayed Atlantic Coast Pipeline

The developers of the Atlantic Coast Pipeline announced Sunday that they were canceling the long-delayed, $8 billion natural gas project. The companies, Dominion Energy and Duke Energy, won a Supreme Court battle over a key permit last month, but they said "recent developments have created an unacceptable layer of uncertainty and anticipated delays" for the 600-mile pipeline, which was to cross West Virginia and Virginia into North Carolina. The problems included permitting, costs, and lawsuits. The huge infrastructure project was announced in 2014, but faced intense opposition from landowners and environmental activists. Sierra Club Executive Director Michael Brune said in a statement that the decision marked a major defeat for fracking and "a historic victory for clean water, the climate, public health, and our communities."

The Associated Press

2. Report: Uber buying Postmates to bolster its food delivery business

Uber Technologies has agreed to acquire restaurant delivery service Postmates in a $2.65 billion all-stock deal, Bloomberg reported Monday, citing people familiar with the matter. The takeover is expected to be announced as soon as Monday morning, according to Bloomberg. Uber Eats head Pierre-Dimitri Gore-Coty is expected to run the combined business, although Postmates CEO Bastian Lehmann will continue to manage Postmates as a separate service, one Bloomberg source said. The acquisition will help Uber compete with DoorDash, the leader of the food deliver market in the United States. Postmates will give Uber Eats a stronger position in Los Angeles and the Southwest. Uber and Postmates had discussed a deal on and off for four years, but the talks picked up after Uber's failed bid for GrubHub.

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Bloomberg

3. Stock futures jump after July 4th break

U.S. stock index futures surged early Monday, signaling possible further gains after Wall Street's strong performance last week. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq all rose by more than 1 percent several hours before the opening bell. The Dow gained 3.3 percent and the S&P 500 about 4 percent in the four-day trading week before the three-day Fourth of July weekend. Concerns about spiking coronavirus cases in an increasing number of states prevented the market from making stronger gains, as investors worried about states halting or reversing their plans to let businesses reopen. "That reopening momentum has been halted by the spike in COVID-19 cases," said Marc Chaikin, CEO of Chaikin Analytics, in a post.

CNBC

4. Berkshire Hathaway energy unit buying Dominion's natural gas network

Warren Buffett's Berkshire Hathaway announced Sunday that its energy unit would buy Dominion Energy's natural gas transmission and storage network. Along with the $4 billion purchase price, Berkshire Hathaway will assume debt that will make the deal worth $10 billion. Berkshire Hathaway Energy will acquire Dominion Energy Transmission, Questar Pipeline, Carolina Gas Transmission, 50 percent of the Iroquois Gas Transmission System, and 25 percent of the Cove Point liquefied natural gas facility in Maryland. The deal, which came as Dominion and Duke Energy dropped plans for the delayed Atlantic Coast Pipeline, will allow Dominion to increase its focus on operating its utilities. The Berkshire unit expects to close on the deal in the fourth quarter, pending regulatory approval.

Reuters

5. Fujitsu makes work-from-home program permanent

Japanese technology firm Fujitsu announced on Monday that it would make its work-from-home program permanent, allowing it to reduce its office space in Japan by half. The company said the extension of its "Work Life Shift" program was part of an effort to establish a "new normal" as businesses worldwide adjust to the coronavirus pandemic. Fujitsu staff will have flexible work hours and be allowed to work from home whenever possible, giving the company's 80,000 workers in Japan unprecedented flexibility. Fujitsu said it was embracing "a new way of working that promises a more empowering, productive, and creative experience for employees that will boost innovation and deliver new value to its customers and society." Twitter announced a similar move in May.

BBC News