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Simon, Brookfield, to save JC Penny from bankruptcy, retain 650 stores

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Simon, Brookfield, to save JC Penny from bankruptcy, retain 650 stores

JC Penney store in Laguna Hills, California.

Scott Mlyn | CNBC

US shopping center owners Simon Property Group and Brookfield Property Partners are close to completing a $ 800 million deal to save JC Penney department store chain from bankruptcy, avoid liquidation and save some 70,000 jobs and 650 stores, Joshua Sassberg of law firm Kirkland & Ellis said Wednesday.

Simon and Brookfield will pay about $ 300 million in cash and take on $ 500 million in debt, Sassberg said during a court hearing.

Wells Fargo also agreed to provide Penney with a $ 2 billion revolving loan upon completion of the transaction, leaving the retailer with $ 1 billion in cash, he said. Penny plans to get bankruptcy judge approval for this rescue deal early next month.

Meanwhile, the hedge funds and private equity firms that financed Penny’s bankruptcy are set to acquire ownership of some of the retailer’s stores and distribution centers in exchange for forgiving part of Penny’s $ 5 billion debt burden. Penney’s lenders, led by H / 2 Capital Partners, will own the assets in two different real estate investment funds, or REITs, Sassberg said.

Hit hard coronavirus pandemic Having absorbed excessive debt, Penny filed for Chapter 11 bankruptcy protection in May. At the time, he had about 850 locations.

Dozens of other retailers, including department store chains Neiman Marcus, Stage Stores and Lord & Taylor, filed for bankruptcy protection during the Covid-19 crisis. Some retailers have not found buyers who could save them. Lord & Taylor, the country’s oldest department store operator, and Pier 1 Imports home furnishings chain are in the process of liquidation.

Negotiations to save Penny have been going on for weeks. During a hearing on August 31, Kirkland & Ellis’ Sussberg said negotiations with the highest bidder, which included Penny’s homeowners, had come to nothing. Instead, Penny’s lenders were about to prepare a loan application to own the retailer as a separate company, he said it was about time.

Penney’s revenues and market value have declined over the years, with shoppers visiting its stores less often and buying online instead. The company’s net sales in 2019 were $ 10.7 billion, up from $ 12.6 billion in 2015.

Sassberg also previously said that Penny’s vacant property was valued at $ 1.4 billion when the lights are onand $ 704 million in the dark. The retailer’s real estate values ​​have dropped over time, especially during the pandemic, as there is less and less desire to own bulky anchor sites in shopping centers.

Any deal between Simon and Brookfield is still subject to court approval and competing proposals.

Simon has already made deals this year rescue men’s suit manufacturer Brooks Brothers and denim retailer Lucky Brand from bankruptcy, having teamed up with licensing firm Authentic Brands Group to do so. He had previously also teamed up with ABG and Brookfield to rescue Forever 21. Brookfield said in May that it was plans to spend $ 5 billion to rescue retailers hit by the pandemic

Analysts believe that, among a number of reasons, mall owners may try to save Penny to prevent the appearance of several empty department stores in shopping centerswhich could potentially lead to so-called joint lease clauses that allow other retailers in the mall to renegotiate their own leases or be waived. The Penney ownership would also give Simon and Brookfield the opportunity to more easily refocus their properties if some of the Penney stores in their malls closed.

Representatives for Simon and Brookfield did not immediately respond to CNBC’s requests for comment.

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Economy

What factors impact financial markets?

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The global financial markets are now hugely complex, with traders and analysts around the world looking closely for signs of movement. What are some of the most important factors to be aware of that impact the financial markets?

Geopolitical events

With news breaking from different countries throughout the day, many different stories could affect the markets on any given day. For instance, economic indicators such as the European Central Bank’s inflation rates and gross domestic product numbers released by each country can determine which direction the markets take. Stocks, currencies and other financial instruments can all vary depending on these areas.

Major events such as war breaking out, natural disasters and elections also have an effect. When we look at the commodities market, climate change is an issue to bear in mind, with unusual weather sometimes causing scarcity or abundance of a certain product.

An interesting aspect of the modern financial world is the way that the different markets are linked. This means that any important event or news story that affects one area could easily affect another, even if the link isn’t obvious at first sight. We can also see how local shocks and events can quickly have an effect at a global level.

The financial crisis of 2008 is a good example, as it started with a serious downturn in the US housing market. Although this appeared to be a localized issue at first, it soon revealed some major issues with the global banking setup that caused problems around the planet affecting millions of people and diverse industries.

Speculation and investment trends

The previous factors all point toward the markets changing, and there’s no shortage of traders around the world waiting to see what happens next and how they can benefit. This means that we need to take into account other issues such as speculation and investment trends in the markets.

Armed with a variety of tools, including candlestick charts, traders try to identify trends such as support and resistance levels. They use the information they glean from the charts to make their moves, which can influence the general market if enough people make the same moves or if the amounts involved are significant.

Once an investment trend begins, it can have a knock-on effect that would have been impossible to predict at the outset. The example of Bitcoin and other cryptocurrencies shows how something that starts small can grow impressively. Cryptocurrencies have now gained enough mainstream appeal to influence and disrupt many industries, from healthcare to gaming and banking.

It’s important to understand how the leaders of a company operate and how they have faced challenges in the past. If we look at banking and the Bank of New York Mellon in particular, we can see that its history can be traced back to 1784, so it has overcome all the major events that have occurred since then. With some of the biggest names in the business world making up its key institutional investors, this is a company that we would expect to react effectively to changing markets.

Regulatory changes and company results

Just about every industry represented in the financial markets has laws and regulations that govern it. This means that the fear of harsher new laws is an almost constant threat. Meanwhile, the hope that beneficial changes to the regulations help businesses prosper is the other side of this matter that investors keep a close eye on.

Let’s not forget the role played by the profit and loss results produced by major companies. It’s clear that these results have an almost immediate effect on their stock prices. However, we should also bear in mind that this effect can reach other areas of the economy. A surprising set of results for a large business can produce shock waves that travel around the market.

What impact do they cause?

From the wide variety of examples that we’ve looked at here, it’s clear that the impact isn’t going to be the same in every case. While one set of circumstances might snowball and cause a huge impact, another might cause a limited impact before the news disappears as other events overtake it.

Having said that, one of the key issues that they cause is a higher degree of market volatility. We can see how this works by looking at an area such as the COVID-19 pandemic in 2020. The markets became a lot more volatile as the different aspects of the pandemic became clear. Streaming companies, healthcare companies and video conferencing technology firms made huge profits, while airlines and hotels were among those to lose out massively.

Working out the overall impact of a particular situation is almost impossible to do now. With so many traders looking over the latest news stories and numbers with advanced tools, the original impact can quickly grow or simply disappear. Therefore, the key for investors is to understand emerging trends and react to them before it’s too late.

These details reveal how complex the global financial market is now. It’s a fascinating world, and with more information at our fingertips than ever before, it’s something that anyone can start to research and understand in their own way.

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Economy

Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners

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Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

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Economy

The first Dacia hybrid. “The cheapest hybrid family on the market”

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The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

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