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In yet another big purchase, JAB Holding, one of the largest and spendiest conglomerates on the planet, just bought Pret A Manger, the upscale sandwich/tea shop that are incredibly popular in the United Kingdom. This will be JAB Holding Company’s first foray into the retail sandwich market.
Pret A Manger is very popular with the white collar, urban crowd in the centers of cities. Office workers in particular tend to flock to the chain. This is a core demographic that JAB wishes to target. They will do so using corporate rewards programs, purchase tracking, and other data centric strategies that will allow them to grow and absorb Pret A Manger’s business.
The negotiations to purchase the sandwich chain ended up with a final price that is almost 2 billion USD. This deal also includes the acquisition of the assets and debt of Pret A Manger. This acquisition is the latest in a series of moves that JAB is making at the behest of their majority owners, the German Reimann family.
The company has spent 10s of billions of dollars in the food and drink markets. They have been snapping up properties left and right, from casual dining to beverage wholesalers. They own many companies across Europe, Asia, and the United States. Their first foray into the food/beverage market started like things often do, with coffee.
After purchasing standouts like Stumptown Roasters and Peet’s Coffee Jab turned their attention to the restaurant business. Krispy Kreme and Panera were their first acquisitions in this space. They later made an 18.7 billion dollar deal to purchase the company behind Dr. Pepper and Snapple.
Pret A Manger is one of their largest acquisitions to date. The roughly 3-decade old chain of sandwich shops prides itself on fresh ingredients and fresh baked daily bread. They are also in the coffee business and are reported to have one of the finest cups in London. They currently have around 530 locations globally, in Asia, Europe and North America.
Bridgepoint Advisors has had a controlling interest in the firm since 2008, during the financial crisis. If this sale goes through JAB foods will establish a critical foothold on the European market and have a new weapon to use in North America.
There is level of planning for financial management that can be very helpful if you are in debt. A lot of people think that it is all about cutting up credit cards and making drastic decisions to eat scarcely with no dining out as you endure a life of boredom. This may work for some people, but getting your finances in order does not have to be a miserable journey. In fact, you can still get your finances together and have a great time if you know how to plan.
There is a common myth going around that credit cards are evil. People tend to think that they cannot have credit cards and stay out of debt if they have gotten into debt with credit cards. This cannot be further from the truth. Getting a credit card is going to work for some people that may need money on a short-term basis. It is actually very much like getting a loan.
This can be like a short-term loan for people that may have a payment that they need to make on the first but they may not get paid until the 15th. If they have the ability to charge it to the card and pay the full amount back on the 15th there really is no harm in having this done with the credit cards. Where most people find themselves in trouble is with the credit card purchase where they do not pay the full amount back.
This always leads to more interest rates and it essentially equates to more debt. This is a bad practice for anyone, but using a credit card where you are paying the full amount is a much better idea.
Some people are going to be able to use a credit card and earn points as rewards. This allows them to get cash back bonuses and gift cards. This is only considered a reward if you are paying the full amount for your credit card each month. If you are simply paying the minimum payment you are only rewarding the credit card company. This company is collecting an interest rate so you are just rewarding the company if you are paying an interest rate. Pay your balance and impove your finances.
he collapse of the proposed Italian government with President Mattarella’s veto of proposed financial minister Savona dented confidence throughout markets worldwide. Italy’s return to the polls after only four months points to a stronger, joint populist government. Both populist parties, the League and 5 Star Movement, are expected to take a more significant share of parliamentary seats than they did in March. The League and 5 Star Movement voice anti-EU, anti-Euro views, causing many to fear a possible Italian exit from the Eurozone.
In the aftermath of this weekends Italian drama, US yields are down to their lowest since the announcement of Brexit. On Tuesday afternoon, the ten-year treasury yield dropped roughly 15 points to 2.77 percent. More troubling was the reversal of the yield curve, which has short-term rates higher than long-term rates. A metric that is considered a warning sign of a coming recession
On Tuesday the S&P 500 financial sector declined 500 points or 3.4 percent while the Dow toppled 400 points. This drop was mirrored overseas as European stocks across the continent continuing a run-off spurred by the news coming out of Italy. With market uncertainty high, the US Federal Reserve was seen as unlikely to raise interest rates in June. A huge turn around from what last week was seen as a certainty. The increasing stress on the market has led investors to wonder if the Reserve will meet its projection of three interest hikes this year.
Analyst Jordi Visser explained since an Italy exit from the Euro is unlikely, this drop in stock was seen as a result of positioning, with Hedge Funds caught off guard by an unexpected rise in US Treasury yields. By noon on Wednesday, Visser’s comment were backed up as the S&P 500 had shown a slight rebound of 200 points that was echoed in US stocks. In Europe, Italy’s FTSE MIB was back up 2 percent while Germany’s Bayer was up 4 percent at close.
The United States may not be done with threatening financial tariffs against China, continuing the back and forth the rhetoric that is leading to much uncertainty in the greater market.
As part of the economic threats made by the United States towards China are indications that tariffs can be imposed on up to $150 billion of goods imported from China. The introduction of tariffs may lead to an increase in manufacturing jobs in the United States, a point often repeated by President Donald Trump on the campaign trail, but may be a double-edged sword in that it will potentially lead to higher prices for consumers.
In addition to the trade imbalance between the United States and China are concerns regarding abuses of intellectual property by many Chinese businesses. These intellectual property abuses are not persecuted by Chinese authorities who take a more hands-off approach.
China has also been accused of propping up the businesses through state support in a number of industries and making it difficult for other global companies to compete. An example of this is in the steel industry where many Chinese state-sponsored companies will flood the market with cheap steel, making it difficult for global steel producers to survive, particularly in countries with social welfare programs that add significantly to the cost of operation.
This state support is part of China’s 2025 platform, in which the Chinese government is seeking dominance of certain key industries, a process that has infuriated many in the U.S. The United States is proposing a 25% tariff on certain Chinese exports to the U.S.
China has responded to the latest threat today by indicating that they are ready for a trade war if the United States is pursuing one. China indicated that it will protect their own interests of the United States continues an arbitrary and relentless verbal attack on their economy.
The increased rhetoric comes just days before a scheduled meeting by the Commerce Secretary of the United States, Wilbur Ross.
Although markets have taken notice of some of the earlier interactions between China and the United States in regards to these trade action, the current reaction has been muted and unobservable. If a trade war were to hit between the two countries, it might spell a large negative factor on economic trade and the stock market.
Shares of some of the major financial companies dropped on the heels of some dovish comments by some of the major banks on Monday.
Bank of America and JPM Morgan Chase announced that earnings in Q2 will be muted and believe that the total revenue earned for the 2018 year will be flat from the prior year. Daniel Pinto, the head of JP Morgan Chase announced this prediction for the year which helped to temper the run on stocks in financials and other companies.
Pinto provided some additional insight into the flat earnings prediction. He predicted that the core earnings of JP Morgan Chase would grow in the single digits, but that minor growth would be offset by other items. Pinto noted some positive headway in terms of growing interest rates that come on the back of rising interest rates from the Federal Central Bank, rising commodity prices, and improvement in the corporate credit business. The bank did have a major write-off of about $100 million on its fixed income unit.
The Head of Banking at Bank of America, Alastair Borthwick indicated that he couldn’t predict the remainder of the year, though he does see that companies tend to be gaining optimism for the macro economy, which is typically a good sign.
The flat revenue target came as a big disappointment to investors who were expecting that these stocks and companies would grow as a result of an overall growth of the economy. Other factors can also harm banks such as a decreased need to borrow money on the back of tax relief for businesses, which leave them flush with cash and decrease their need to borrow domestically to avoid repatriating foreign sourced cash.
Both Bank of America and JP Morgan Chase were down on the news. Both of these stocks decreased by approximately 5% on Tuesday. These bank stocks have been flat for 2018 after bouncing back from the lows in 2009 and recovering to prices that are close to their pre-crash highs.
Investors seem to be increasingly anticipating a pull back in these financial stocks and the lack of optimism and price reduction may end up being a positive thing for the larger market which may need to consolidate before reaching new heights.
George Soros, the iconic billionaire is concerned that the world will soon experience another financial crisis. Soros, while speaking in Paris on Tuesday, says that factors including the disruption of the deal with Iran, increased negative feelings toward the European Union, a soaring dollar, and divestment in emerging markets have combined to potentially create negative effects in the global economy.
Soros said through previously prepared remarks that many things have gone wrong with the European Union and the rise of populism on the continent has become a serious issue.
Soros expanded on these thoughts by saying that strict policies have served to instigate the euro crisis. Soros also explained that the resulting anti-European movements that resulted from these policies share some responsibility for the Brexit crisis as well as the political turmoil that has recently taken place in Italy.
Soros went on to say that young people have grown disillusioned with the European Union and blames the entity for depriving them of jobs and promises of the future. Populists politicians, according to Soros, have effectively exploited these resentments to further their own parties and movements.
Soros pointed to the growing disagreement between the United States and Europe regarding relations with Iran as another major concern that could have negative implications on the global economy.
Soros said that the decision by United States President Donald Trump to no longer honor a previously signed nuclear arms treaty with the Iranian government has in effect destroyed the transatlantic alliance. Soros added that Trump has succeeded in shocking the entire world with his actions.
Soros feels that the end of the deal will directly result in problems for the European economy and other locations just as a strengthening dollar is causing investors to abandon emerging market currencies.
Despite the warnings, Soros did express some optimism that financial turmoil can be avoided.
One measure Soros suggests is a new Marshall Plan, funded by money that can be borrowed by the European Union, that would properly address the problem of refugees in Africa. The original Marshall Plan was enacted by the United States in an effort to rebuild Europe in the wake of World War II.
Soros expressed that there would be difficulty in getting the many countries in the EU to stand in accord on the matter but said that reality may dictate that personal interests be set aside to preserve the union.
Markets around the globe took a beating on Tuesday due to investors being worried about the rising political tensions in Italy. The political crisis in the country could lead to the nation’s withdrawal from the Eurozone, which would follow in the footsteps of Britain, a country that voted to leave it 2 years ago.
Investors sold out of bonds in southern Europe, and the Italian banks and stock markets were jittery due to concerns that Italians may do away with the euro. In terms of some of the worst performances in European stock markets, the Italian and Spanish markets suffered losses of around 2.5%. Stocks in Britain and Germany under performed as well, which was quite expected with the sour news from Italy.
The Dow Jones industrial average closed down 391 points, a slight improvement from the lowest point of the day which was a drop of 505 points. Along with the Dow, the S&P 500 also suffered a loss, as well as the Nasdaq Composite and the Russell 2000.
In terms of this year as a whole, the Dow Jones industrial average is down 1.45%, while the S&P 500 so far stands at a slight gain.
Continuing with the US market, financial stocks took the largest beating, with JP Morgan Chase dropping 4.2%, Goldman Sachs down 3.4%, and American Express sinking 3.3% in late-day trading. Coca-Cola was the only Dow stock finishing in the green instead of the red, barely keeping positive ground before the closing bell.
With regards to the anxiety in the marketplace, billionaire investor George Soros added to the negative sentiments, stating that he believes the globe is headed for yet another financial crisis. The hedge fund manager and philanthropist cited increasing negativity towards the European Union, the United States withdrawing from the Iran Nuclear Deal, and a rising dollar as recipes for a worldwide financial disturbance.
On CNBC Tuesday morning, economist Mohamed El-Erian also shared negative views towards the globe’s overall financial future, stating that the seeming worldwide economic boom may not be exactly what most people thought.
Is America in Debt More Ways Than One? Here’s How to Get Out of Debt Starting Today2018 Number One Debt Solution
Article: Its Official Most Americans are Currently In Debt by Maurie Backman (TMFBookNerd)
Although we live in one of the richest countries in the world, we are currently $21 trillion dollars in debt. It is a well-know fact that America is run on debt. We are in financial debt as a result and when interviewed, most have ever considered the trickle-down financial affect the overall national economy could possibly have on us as individuals.
According to the Comet’s data in a recent article, Most Americans are Currently In Debt, Maurie Backman (February, 2018), there are many suffering debt, but the following groups are in overwhelming debt:
– 80.9% of baby boomers
– 79.9% of Gen Xers
– 81.5% of millennials
This debt primarily consists of living expenses such as mortgage(s), credit cards, automobiles and unfortunately medical debt.
According to the legal and banking industries, mortgage debt contributes to the majority of bankruptcy filings in the United States.
Statistically speaking, millennials have abused credit card debt the least, yielding an average of $4,868 in average credit card usage versus the $8,291 for Gen Xers and $7. 175 for baby boomers.
Regarding mortgages, it appears the younger generations have signed up for the highest mortgage amounts and although mortgage debt is considered the “better debt”, this has contributed to a constantly flowing stream of bankruptcy cases this year alone ( Motley Fool Newsletter (April, 2018)).
The purpose of this article is to assist in providing steps to get out of debt that are practical and simple. Here are a few things you can do right away and some tips that are assisting our clients:
– Get organized – budget calendar, spending logs, what’s affordable?
– Figure out what you owe, make a chart for repayment and consolidate debts
– Multiple credit cards can be rolled into a single card and interest rates negotiated (balance transfer)
– Use a low interest long-term repayment personal loan to consolidate multiple debts (student loan, auto, wedding loans). One payment is simpler to make than many.
– Refinance home and/or auto for reduced principal and interest to save money for the short and long-term. It may lower your monthly payments.
– Student loans can be recast and there are income-based repayment options and loan forgiveness plans, so call your provide to ask.
– Medical bill providers and credit card companies are willing to negotiate settlements, which could save your credit and create better repayment options. They will still get paid something vs. nothing.
– Steer clear of debt for a few years at least
– Create an 8 year emergency fund (for unplanned events)
Commit to cash and carry for awhile today. Cash is king and there is a freedom in not having or securing future debt burden. Taking action can not only relieve the debt and the stress too! Look for our future articles and click the link below for reference.
The Chief Financial Officer of Willis Towers Station was recently interviewed by Ideamensch concerning his life. He had much to say about his life. His day begins at 5 in the morning. He then makes his bed as it makes him feel that he has accomplished something. After preparation, he gets his Peleton bike or looks for one and thinks about what he needs to accomplish for that particular day. At the beginning of a month or week, he gets to reflect on the upcoming month or week respectively.
His organization consists of many individuals that have bright ideas and therefore he tries to make the ideas are brought to light and don’t stay buried. The trend that most excites him was InsureTech. When asked about what advice he would give to his younger self, he said he would tell his younger self that collaboration doesn’t really equal consensus. Consensus will also lead to one having the lowest common denominator. And the final advice would be to be careful when trying to make everyone happy, although it is always nice if one can do it. See This Article for more information.
When asked about something that’s true but no one agrees with him about it, he said that he believes technology needed to support growing micro-communities would be key. He also went on to say that the one thing he would over and over and recommend to everyone would be to be a good listener and build one’s network. Michael Burwell further went on to say that everyone has something interesting about them and that the question he posed is whether we really have time to know what it is. He concluded on this question by saying he tries to be in the moment when communicating with people and engaging them so as to understand them.
The one strategy that has helped him grow his business was being positive and relentless even though everyone will try to undermine you. Mike Burwell spent more than three decades at PriceWaterHouse Coopers LLC. During his time in PWC, He served on business advisory services for more than a decade. He was elected as a partner in the year 1997 where he moved into PWC’S Detroit transaction business. He went on to be the company’s Chief Financial Officer in the year 2009. His success in PWC led him to be the Vice Chairman Global and U.S. Transformation enabled PWC to grow even further. Mike Burwell is a business graduate of Michigan State University and was named the university’s alumnus of the year 2010. He is also a CPA. He replaced the current CFO because the current CFO retired.
If you are currently in credit card debt, you know the problems that this could mean for you and your family. This is a real issue for a lot of different people, since millions of individuals all over the country are in some type of debt. Out of all ways to get into debt, credit cards are still the number one cause of debt. If you are dealing with credit card right now and are struggling to see the light at the end of the tunnel, you need to know ways that you can overcome the problem and get your finances back on track where they need to be.
The most important thing to remember is that credit cards should only be used for emergency purposes. If you’re using your card for just about any and every purchase that you make, you’re going to find that this is what causes a lot of problems for you and your family. If this has been an issue, it might be time to close out certain accounts, consolidate and work through the debt so that you owe less. While closing accounts may affect your credit score, this is well worth it when considering you won’t be stuck with a credit card any longer.
You can also work with a financial expert who is trained with debt consolidation specific to credit cards so that you can be sure you’re getting rid of the problems once and for all and will not have to worry that this is a problem for you in the future. Plus, a lot of people find that when they are trying to get out of debt, they have a lot of problems and are unable to do this on their own. Now is a good time for you to take a look at this as a viable option and for you to know that this is a choice that is going to change your finances and have you feeling better about the situation that you have gotten yourself into and are noticing that this is something that is going to be a whole lot better for you.