Clothing retailer Express shares jump on plans to shutter 100 stores by 2022, cut costs

Pedestrians walk past an Express Inc. store in New York, U.S., on Wednesday, May 31, 2017. Clothing retailer Express said Wednesday it plans to shutter roughly 100 of its stores by 2022, as part of its strategy to save $80 million in costs annually over the next three years. Express has a market value of roughly $313 million. Express currently operates more than 600 stores, including factory outlet locations, in the U.S. and Puerto Rico. But it said the lower costs will help boost its earnings b


Pedestrians walk past an Express Inc. store in New York, U.S., on Wednesday, May 31, 2017.
Clothing retailer Express said Wednesday it plans to shutter roughly 100 of its stores by 2022, as part of its strategy to save $80 million in costs annually over the next three years.
Express has a market value of roughly $313 million.
Express currently operates more than 600 stores, including factory outlet locations, in the U.S. and Puerto Rico.
But it said the lower costs will help boost its earnings b
Clothing retailer Express shares jump on plans to shutter 100 stores by 2022, cut costs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: lauren thomas
Keywords: news, cnbc, companies, retailer, costs, past, expected, express, store, shares, plans, jump, cut, clothing, strategy, company, earnings, million, roughly, shutter, stores


Clothing retailer Express shares jump on plans to shutter 100 stores by 2022, cut costs

Pedestrians walk past an Express Inc. store in New York, U.S., on Wednesday, May 31, 2017.

Clothing retailer Express said Wednesday it plans to shutter roughly 100 of its stores by 2022, as part of its strategy to save $80 million in costs annually over the next three years.

Express shares were last up more than 18% on the news. Express has a market value of roughly $313 million. As of Tuesday’s market close, it had watched its stock fall roughly 21% over the past 12 months.

The company also announced a restructuring of its workforce, which it says will impact roughly 10% of the jobs at Express’ headquarters in Columbus, Ohio, and a design studio in New York. CNBC was not immediately able to determine exactly how many jobs are being cut.

The store closures add to the malaise that U.S. shopping malls have been hit with in recent years. A record of more than 9,000 store closures were announced by retailers — ranging from Gap to Forever 21 to Sears — in 2019. The apparel category within retail has been under pressure especially with more shoppers either pulling back their spending on clothing, or turning to subscription and rental services like Stitch Fix and Rent the Runway.

“When I joined Express, I outlined three priorities: changing the trajectory of the business, developing a corporate strategy, and putting the right team in place,” CEO Tim Baxter said in a statement. “We have spent the past six months developing a strategy with the intent to return Express to long-term growth and a mid-single digit operating margin. Today we took the necessary steps to put the right organization in place to support that strategy.”

Baxter was appointed CEO in June of last year. Previously, he had spent more than two decades working at Macy’s. He succeed Matthew Moellering, who had served as Express’ interim CEO since January 2019.

The company said Wednesday that nine of the roughly 100 stores set for closure are already dark, with another 31 expected to close by the end of this month, and another 35 shuttering by the end of January 2021.

Express currently operates more than 600 stores, including factory outlet locations, in the U.S. and Puerto Rico.

The closures will reduce sales by $90 million by 2022, the company said. But it said the lower costs will help boost its earnings before interest, taxes, depreciation and amortization by $15 million.

Express also has narrowed the range for its fourth-quarter earnings outlook, pegging it toward the lower end.

Adjusted earnings per share are expected to be between 17 cents and 19 cents, with same-store sales expected to drop roughly 3% during the fourth quarter, which includes the latest holiday season. Analysts polled by Refinitiv were calling for earnings of 19 cents a share.


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: lauren thomas
Keywords: news, cnbc, companies, retailer, costs, past, expected, express, store, shares, plans, jump, cut, clothing, strategy, company, earnings, million, roughly, shutter, stores


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Stocks making the biggest moves after hours: Texas Instruments, Raymond James, Sallie Mae and more

The semiconductor company did beat estimates, reporting earnings of $1.11 per share on revenue of $3.35 billion, while analysts expected earnings of $1.02 per share on revenue of $3.22 billion, according to Refinitiv. Raymond James — Shares of Raymond James fell more than 3% after-hours following an earnings report that showed net revenue declining slightly compared with the previous quarter. Sallie Mae – Sallie Mae stock surged more than 19% in extended trading on Wednesday after it announced a


The semiconductor company did beat estimates, reporting earnings of $1.11 per share on revenue of $3.35 billion, while analysts expected earnings of $1.02 per share on revenue of $3.22 billion, according to Refinitiv.
Raymond James — Shares of Raymond James fell more than 3% after-hours following an earnings report that showed net revenue declining slightly compared with the previous quarter.
Sallie Mae – Sallie Mae stock surged more than 19% in extended trading on Wednesday after it announced a
Stocks making the biggest moves after hours: Texas Instruments, Raymond James, Sallie Mae and more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: jesse pound sunny kim, jesse pound, sunny kim
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Stocks making the biggest moves after hours: Texas Instruments, Raymond James, Sallie Mae and more

Take a look at the companies making headlines after the bell.

Texas Instruments – Texas Instruments’ stock fell 1% in extended trading on Wednesday after the company said its revenues declined in the fourth quarter and may do so against in the current three-month period. The semiconductor company did beat estimates, reporting earnings of $1.11 per share on revenue of $3.35 billion, while analysts expected earnings of $1.02 per share on revenue of $3.22 billion, according to Refinitiv. However, revenue decreased 10% from the same quarter a year ago, and the midpoint of its first-quarter guidance is about 9% below the first quarter of 2019.

Citrix Systems — Shares of Citrix Systems rose more than 4% in extended trading after the company beat expectations for the fourth quarter on the back of strong subscription revenue growth and announced it was expanding its stock buyback program. The tech company reported revenue for the quarter of $810 million and $1.71 in adjusted earnings per share, above the $802 million in revenue and $1.68 EPS expected by Wall Street analysts, according to Refinitiv. The company said its board approved a $1 billion increase in its stock buyback authorization, which is now at $1.75 billion.

Raymond James — Shares of Raymond James fell more than 3% after-hours following an earnings report that showed net revenue declining slightly compared with the previous quarter. The bank reported $2.01 billion in revenue for the fourth quarter, up 8% year-over-year but 1% lower than the third quarter. Raymond James’ interest income and investment bank income fell compared with both prior time periods.

Sallie Mae – Sallie Mae stock surged more than 19% in extended trading on Wednesday after it announced a new stock buyback program in its fourth-quarter earnings release. The financial company, which has a market cap of around $3.7 billion, said it planned to buy back $600 million worth of stock over the next year. The company also said its net interest income and average private education loans outstanding were both up for the quarter compared with the same period in 2018.

PTC – Shares of the computer software company jumped nearly 8% after it released fourth-quarter results that beat expectations for revenue. PTC reported earnings of 57 cents per share on revenue of $356 million, while analysts expected earnings of 44 cents per share on revenue of $342 million, according to Refinitiv. The company said it saw strong growth in Europe and Asia during the quarter.

Paycom Software – Shares of the human resource software company jumped more than 4% in extended trade after the announcement that the company will replace WellCare Health in the S&P 500 on Jan. 28. WellCare is being acquired by Centene and that deal is expected to be completed soon, the S&P Dow Jones Indices said in a release announcing the change.

HB Fuller – Shares of the specialty chemical product company fell about 2% in extended trade after the company missed analyst expectations for fourth-quarter earnings. HB Fuller posted earnings of 88 cents per share, excluding some items, on revenues of $739 million in the fourth quarter. Analysts expected EPS of 92 cents on revenue of $744 million, according to Refinitiv.

CNBC’s Chris Eudaily contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2020-01-22  Authors: jesse pound sunny kim, jesse pound, sunny kim
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Netflix shares rise slightly despite weak guidance, domestic subscriber miss

Shares of Netflix climbed as much as 2.3% in after-hours trading on Tuesday after the company reported fourth-quarter results. The company beat on the top and bottom lines for the quarter, but gave disappointing guidance for the first quarter. That’s compared to analyst expectations for earnings of $1.20 per share and $5.76 billion in revenue. Netflix reiterated that its cash burn peaked in 2019 and said it’s now moving slowly toward being free cash flow positive in the future. “We’re on the gli


Shares of Netflix climbed as much as 2.3% in after-hours trading on Tuesday after the company reported fourth-quarter results.
The company beat on the top and bottom lines for the quarter, but gave disappointing guidance for the first quarter.
That’s compared to analyst expectations for earnings of $1.20 per share and $5.76 billion in revenue.
Netflix reiterated that its cash burn peaked in 2019 and said it’s now moving slowly toward being free cash flow positive in the future.
“We’re on the gli
Netflix shares rise slightly despite weak guidance, domestic subscriber miss Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: annie palmer
Keywords: news, cnbc, companies, miss, subscriber, billion, expected, revenue, company, netflix, share, domestic, weak, slightly, despite, shares, thats, guidance, rise, quarter, cash


Netflix shares rise slightly despite weak guidance, domestic subscriber miss

Shares of Netflix climbed as much as 2.3% in after-hours trading on Tuesday after the company reported fourth-quarter results. The company beat on the top and bottom lines for the quarter, but gave disappointing guidance for the first quarter. Here are the key numbers: Earnings per share : $1.30 per share, however that’s not comparable to Refinitiv estimates

: $1.30 per share, however that’s not comparable to Refinitiv estimates Revenue : $5.47 billion vs. $5.45 billion expected, per Refinitiv

: $5.47 billion vs. $5.45 billion expected, per Refinitiv Domestic paid subscriber additions : 550,000 vs. 589,000 expected, per FactSet estimates

: 550,000 vs. 589,000 expected, per FactSet estimates International paid subscriber additions: 8.33 million vs. 7.17 million expected, per FactSet For the first quarter of 2020, Netflix expects to report earnings of $1.66 per share on revenue of $5.73 billion. That’s compared to analyst expectations for earnings of $1.20 per share and $5.76 billion in revenue. The company also expects to add 7 million paid customers in the first quarter, which fell short of analysts expectations for 7.86 million subscribers. The company reported negative free cash flow of $1.7 billion for the quarter and expects to see negative free cash flow of about $2.5 billion for 2020. Netflix reiterated that its cash burn peaked in 2019 and said it’s now moving slowly toward being free cash flow positive in the future. “We’re on the glide path, slowly, towards positive free cash flow,” Netflix CEO Reed Hastings said on the company’s earnings call. “We’re excited about that but that’s not coming from shrinking back our content spending. That’s coming from the increase in revenue and operating income.”

In the company’s letter to shareholders, Netflix cited recent price changes as a reason for low membership growth in the U.S. and Canada, along with recent launches of rival streaming platforms. The company said it has seen a “more muted impact” from competitive launches outside the US. However, streaming services from competitors like Disney have yet to launch globally. “As always, we are working hard to improve our service to combat these factors and push net adds higher over time,” the company said.


Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: annie palmer
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5 charts show the latest IMF forecasts for the global economy

Those forecasts were detailed in an update to the IMF’s World Economic Outlook report, which is widely read by both public and private sectors globally. Here are five charts that show the fund’s latest assessments of the world economy. Global recoveryThe IMF has forecast the global economy to rebound to 3.3% this year from an estimated 2.9% last year. China’s upgradeChina’s growth forecast for 2020 was revised higher by 0.2 percentage points to 6.0%, according to the IMF. These are the IMF’s gro


Those forecasts were detailed in an update to the IMF’s World Economic Outlook report, which is widely read by both public and private sectors globally.
Here are five charts that show the fund’s latest assessments of the world economy.
Global recoveryThe IMF has forecast the global economy to rebound to 3.3% this year from an estimated 2.9% last year.
China’s upgradeChina’s growth forecast for 2020 was revised higher by 0.2 percentage points to 6.0%, according to the IMF.
These are the IMF’s gro
5 charts show the latest IMF forecasts for the global economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: yen nee lee
Keywords: news, cnbc, companies, imf, fund, points, forecasts, charts, global, economy, expected, growth, world, revision, forecast, latest, percentage, imfs


5 charts show the latest IMF forecasts for the global economy

A US cargo ship is seen at the Yangshan Deep-Water Port, an automated cargo wharf, in Shanghai on April 9, 2018. Johannes Eisele | AFP | Getty Images

The International Monetary Fund on Monday released its latest projections for the global economy. Those forecasts were detailed in an update to the IMF’s World Economic Outlook report, which is widely read by both public and private sectors globally. Here are five charts that show the fund’s latest assessments of the world economy.

Global recovery

The IMF has forecast the global economy to rebound to 3.3% this year from an estimated 2.9% last year. However, that projection for 2020 is a downward revision from 3.4% stated in its October 2019 World Economic Outlook.

The fund attributed “the lion’s share” of the downward revision to “a more subdued growth forecast” for India.

India’s growth markdown

India, Asia’s third-largest economy, is expected to grow by 5.8% in 2020 — a 1.2 percentage point markdown from the organization’s October forecast.

The IMF said India’s “domestic demand has slowed more sharply than expected” amid stresses in the financial sector and a decline in credit growth. Still, the 5.8% forecast for this year is an improvement from the estimated 4.8% growth for last year, owing to both monetary and fiscal measures, and subdued oil prices, said the IMF.

China’s upgrade

China’s growth forecast for 2020 was revised higher by 0.2 percentage points to 6.0%, according to the IMF. That’s partly because the country’s “phase one” trade deal with the U.S. is likely to reduce some risks facing the world’s second-largest economy, the fund said.

“However, unresolved disputes on broader US-China economic relations as well as needed domestic financial regulatory strengthening are expected to continue weighing on activity,” the fund wrote in its report.

US growth moderation

The U.S., the world’s largest economy, is projected to grow by 2.0% this year — a downward revision of 0.1 percentage points compared to the IMF’s October forecast.

Max Lin, a strategist at NatWest Markets, said the downgrade reflects a slowing manufacturing sector in the U.S. and potential risks from the presidential elections later this year.

Euro area pick up

Growth in the euro area for this year was revised down by 0.1 percentage points to 1.3%, according to the IMF.

But that projection reflects a pick up from last year’s 1.2% estimate, which the organization attributed to an expected improvement in external demand. These are the IMF’s growth forecasts for major European economies this year: Germany: 1.1%

France: 1.3%

Italy: 0.5%

Spain: 1.6%

WATCH: How economists make predictions


Company: cnbc, Activity: cnbc, Date: 2020-01-21  Authors: yen nee lee
Keywords: news, cnbc, companies, imf, fund, points, forecasts, charts, global, economy, expected, growth, world, revision, forecast, latest, percentage, imfs


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Winter storm sweeps Midwest and Northeast, bringing snow and ice

National Weather Service forecasters issued winter weather advisories affecting much of the Midwest and into the Northeast, including heavy snow that could make travel difficult in some areas. In the Dakotas, parts of Interstate 29 and Interstate 94 were closed on Saturday. The danger on the roads was highlighted byrecorded from a delivery truck and made public by the Iowa State Patrol. Snow was expected to move across the Midwest and into the Northeast by Saturday evening. Snow totals could rea


National Weather Service forecasters issued winter weather advisories affecting much of the Midwest and into the Northeast, including heavy snow that could make travel difficult in some areas.
In the Dakotas, parts of Interstate 29 and Interstate 94 were closed on Saturday.
The danger on the roads was highlighted byrecorded from a delivery truck and made public by the Iowa State Patrol.
Snow was expected to move across the Midwest and into the Northeast by Saturday evening.
Snow totals could rea
Winter storm sweeps Midwest and Northeast, bringing snow and ice Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-18
Keywords: news, cnbc, companies, sweeps, winter, bringing, weather, parts, interstate, northeast, midwest, flights, ice, snow, iowa, storm, expected, state


Winter storm sweeps Midwest and Northeast, bringing snow and ice

A winter storm that has already caused problems at airports in Chicago and Kansas City was expected to bring blizzard conditions to parts of the Plains and Midwest on Saturday and could dump up to a foot of snow in parts of the Northeast by Sunday.

National Weather Service forecasters issued winter weather advisories affecting much of the Midwest and into the Northeast, including heavy snow that could make travel difficult in some areas.

Forecasters also warned of blizzard conditions expected Saturday afternoon in parts of North Dakota, South Dakota, Minnesota and Iowa, including wind gusts topping 50 mph (80 kph). Officials in those states were urging people to stay inside if possible and noted that high winds coupled even with just a few inches of snow could make it nearly impossible to see in some areas.

In the Dakotas, parts of Interstate 29 and Interstate 94 were closed on Saturday.

The danger on the roads was highlighted by

recorded from a delivery truck and made public by the Iowa State Patrol. The video shows a state trooper and a person who had been involved in a crash along Interstate 80 near Council Bluffs in western Iowa on Friday looking at the damage when another truck loses control on the slick interstate and barrels into the crash scene, barely missing the trooper and other man.

Snow was expected to move across the Midwest and into the Northeast by Saturday evening. Snow totals could reach a foot (30 centimeters) or more in parts of Vermont and New York state. But most areas in the region were expected to get just a few inches.

On Friday night, the Federal Aviation Administration halted all flights in and out of Chicago’s O’Hare Airport for several hours, and a plane slid off an icy taxiway at Kansas City International Airport. The Chicago Department of Aviation reported about 200 cancellations at O’Hare on Saturday morning out of nearly 2,000 total flights, and the FAA said some flights were being delayed by weather conditions.

After the storm, temperatures were expected to drop to the single digits and even below zero (-18 degrees Celsius) in parts of the Plains and the Midwest.


Company: cnbc, Activity: cnbc, Date: 2020-01-18
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European stocks climb as China’s GDP grows as expected; Stoxx 600 hits record high; Casino down 12%

European stocks advanced on Friday after China’s GDP (gross domestic product) numbers grew in line with expectations, lifting global markets. The pan-European Stoxx 600 added 0.7% in early trade to reach a fresh record high, basic resources jumping 1.2% to lead gains as all sectors and major bourses traded in positive territory. Markets in Asia rose on Friday in response to the figures, with Hong Kong’s Hang Seng index adding 0.5% to lead gains. A strong handover from Wall Street, which saw the


European stocks advanced on Friday after China’s GDP (gross domestic product) numbers grew in line with expectations, lifting global markets.
The pan-European Stoxx 600 added 0.7% in early trade to reach a fresh record high, basic resources jumping 1.2% to lead gains as all sectors and major bourses traded in positive territory.
Markets in Asia rose on Friday in response to the figures, with Hong Kong’s Hang Seng index adding 0.5% to lead gains.
A strong handover from Wall Street, which saw the
European stocks climb as China’s GDP grows as expected; Stoxx 600 hits record high; Casino down 12% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: elliot smith
Keywords: news, cnbc, companies, grew, trade, sales, high, stoxx, climb, hong, european, major, lead, strong, hits, positive, gdp, expected, record, stocks, grows, richemont


European stocks climb as China's GDP grows as expected; Stoxx 600 hits record high; Casino down 12%

European stocks advanced on Friday after China’s GDP (gross domestic product) numbers grew in line with expectations, lifting global markets.

The pan-European Stoxx 600 added 0.7% in early trade to reach a fresh record high, basic resources jumping 1.2% to lead gains as all sectors and major bourses traded in positive territory.

The world’s second-largest economy grew by 6.1% in 2019, its slowest in 29 years but meeting analyst expectations even amid the protracted trade war with the U.S., which reached a truce this week after Washington and Beijing signed an initial “phase one” trade deal.

Markets in Asia rose on Friday in response to the figures, with Hong Kong’s Hang Seng index adding 0.5% to lead gains. A strong handover from Wall Street, which saw the S&P 500 hit record highs on Thursday following a host of strong earnings reports from major banks, also offered positive momentum.

In corporate news, Swiss luxury goods giant Richemont on Friday reported a slowdown in sales growth as political unrest in Hong Kong weighed on its fourth-quarter turnover. Richemont shares climbed 4.9% in early trade.

Volkswagen CEO Herbert Diess said on Thursday that the German carmaker must accelerate urgent reforms to its business in order to avoid the same fate as Nokia, which relinquished its handset market dominance to Apple, Reuters reported.

Investors will also be monitoring key December inflation data and November construction output figures out of the euro area, due at 10 a.m. London time on Friday. U.K. retail sales are due at 9:30 a.m.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: elliot smith
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Prohibition began 100 years ago – here’s a look at its economic impact

New York restaurant with a sign in the shop window: ‘No Booze Sold Here – Booze Hounds Please Stay Out.’ Prohibition, which began 100 years ago Friday, didn’t just put the squeeze on the booze industry. The stock market crash of 1929, which triggered the country’s worst economic slump, proved to further test Prohibition with nearly half of the nation’s banks failing and some 15 million Americans unemployed. Theater revenues declined rather than increase, and few of the other economic benefits th


New York restaurant with a sign in the shop window: ‘No Booze Sold Here – Booze Hounds Please Stay Out.’
Prohibition, which began 100 years ago Friday, didn’t just put the squeeze on the booze industry.
The stock market crash of 1929, which triggered the country’s worst economic slump, proved to further test Prohibition with nearly half of the nation’s banks failing and some 15 million Americans unemployed.
Theater revenues declined rather than increase, and few of the other economic benefits th
Prohibition began 100 years ago – here’s a look at its economic impact Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: amanda macias
Keywords: news, cnbc, companies, heres, expected, alcohol, 100, war, ago, prohibition, cocktail, million, booze, market, impact, economic, americans, look, began


Prohibition began 100 years ago – here's a look at its economic impact

New York restaurant with a sign in the shop window: ‘No Booze Sold Here – Booze Hounds Please Stay Out.’

Prohibition, which began 100 years ago Friday, didn’t just put the squeeze on the booze industry. It took a much broader toll on the American economy.

On Jan. 17, 1920, the United States stumbled into a dry era following the ratification of the 18th Amendment and the passage of the Volstead Act. For 13 years, Americans waited for the quality of their lives to improve while the federal government spent millions trying to enforce the “noble experiment.”

A century later, Prohibition is known for accomplishing everything it wasn’t supposed to — it provoked intemperance, eliminated jobs, created a black market for booze, and triggered a slew of unintended economic consequences.

“When Prohibition went into effect about a quarter of a million people lost their jobs. We were already in a mild recession, we were coming out of World War I, and we had all these soldiers that were coming back from Europe that we had to reintegrate into the economy,” historian Garrett Peck told CNBC.

“So this was a big deal and it became an even bigger deal come the 1930s with the Great Depression,” Peck, the author of “The Great War in America: World War I and Its Aftermath,” added.

The stock market crash of 1929, which triggered the country’s worst economic slump, proved to further test Prohibition with nearly half of the nation’s banks failing and some 15 million Americans unemployed.

Meanwhile, Prohibition created a “shadow economy” that was run by crooks and thugs, said spirits and cocktail expert Derek Brown, while causing lasting damage to the alcohol and hospitality industries.

“Institutions closed. Distilleries floundered. We wouldn’t regain craft bartending skills until the late 20th century with the emergence of the craft cocktail movement,” said Brown, who owns Washington, D.C.’s famed cocktail bar Columbia Room and wrote “Spirits, Sugar, Water, Bitters: How the Cocktail Conquered the World.”

“You have to remember that in the mid-19th century Americans were drinking nearly seven gallons of pure alcohol per person. It was ingrained in our economy. It was even sometimes used as currency,” he added.

According to historian and author Michael Lerner, other industries believed they would reap benefits from Prohibition –but the social and economic impacts of Prohibition were largely negative:

When the law went into effect, they expected sales of clothing and household goods to skyrocket. Real estate developers and landlords expected rents to rise as saloons closed and neighborhoods improved. Chewing gum, grape juice, and soft drink companies all expected growth. Theater producers expected new crowds as Americans looked for new ways to entertain themselves without alcohol. None of it came to pass. Instead, the unintended consequences proved to be a decline in amusement and entertainment industries across the board. Restaurants failed, as they could no longer make a profit without legal liquor sales. Theater revenues declined rather than increase, and few of the other economic benefits that had been predicted came to pass.

Lerner adds that the federal government lost approximately $11 billion in tax revenue and spent more than $300 million trying to keep America on the wagon.

What’s more, doctors pocketed an estimated $40 million in medicinal whiskey prescriptions and the bootleg market saw earnings of $3.6 billion in 1926, or approximately $50 billion in today’s dollars.

On Dec. 5, 1933, the 21st Amendment repealed the 18th Amendment, ending the increasingly unpopular nationwide prohibition of alcohol.

“A hundred years later, the alcohol and hospitality industry is worth hundred billions of dollars,” cocktail expert Brown said. “Can we just agree that next time we want people to drink less, that instead of tanking an entire industry, and everyone who depends on it, we just ask nicely?”


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: amanda macias
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Labor costs for Detroit automakers expected to increase upward of $1 billion by 2023

DETROIT – Labor costs for the Detroit automakers are expected to increase by up to roughly $1 billion in the coming years as a result of contracts ratified last year with the United Auto Workers union. Based on the number of workers in each company, the increased labor cost would add between $800 million and $1 billion to the automakers’ expenses by 2023. Labor costs for non-unionized foreign automakers in the U.S. are expected to increase by an average of just $2 an hour by 2023, according to C


DETROIT – Labor costs for the Detroit automakers are expected to increase by up to roughly $1 billion in the coming years as a result of contracts ratified last year with the United Auto Workers union.
Based on the number of workers in each company, the increased labor cost would add between $800 million and $1 billion to the automakers’ expenses by 2023.
Labor costs for non-unionized foreign automakers in the U.S. are expected to increase by an average of just $2 an hour by 2023, according to C
Labor costs for Detroit automakers expected to increase upward of $1 billion by 2023 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: michael wayland
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Labor costs for Detroit automakers expected to increase upward of $1 billion by 2023

DETROIT – Labor costs for the Detroit automakers are expected to increase by up to roughly $1 billion in the coming years as a result of contracts ratified last year with the United Auto Workers union.

The Center for Automotive Research on Wednesday forecast average hourly labor costs during the four-year deals will increase by $11 per worker for Fiat Chrysler and $8 per worker at General Motors and Ford Motor.

Based on the number of workers in each company, the increased labor cost would add between $800 million and $1 billion to the automakers’ expenses by 2023. Those are costs the companies will look to offset in other ways, however they are expected to widen labor cost gaps with foreign competitors that don’t have a unionized workforce in the U.S. like Toyota Motor.

“The gap with the non-union automakers has widened quite a bit,” Kristin Dziczek, vice president of industry, labor and economics at CAR, said during a presentation on the results.

Labor costs for non-unionized foreign automakers in the U.S. are expected to increase by an average of just $2 an hour by 2023, according to CAR, a nonprofit research group based in Ann Arbor, Mich.

CAR estimates Fiat Chrysler’s average hourly labor costs per worker will increase to $66 by 2023; GM will hit $71; and Ford will jump to $69. That compares to non-unionized foreign automakers at $52 an hour on average during that time period.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: michael wayland
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Treasury brings back the 20-year bond to pay for the ballooning deficit

The Treasury Department is issuing a 20-year bond for the first time in 34 years to help pay for the ballooning $1 trillion dollar budget deficit. On Friday, news of the 20-year triggered a so-called “steepening” trade where Treasury yields on the long end of the curve rose, like 10-year and 30-year yields, and shorter duration yields, like the 2-year, fell. Strategists say investors were betting the new 20-year will help drive rates higher at the long end of the Treasury curve. “At that time, w


The Treasury Department is issuing a 20-year bond for the first time in 34 years to help pay for the ballooning $1 trillion dollar budget deficit.
On Friday, news of the 20-year triggered a so-called “steepening” trade where Treasury yields on the long end of the curve rose, like 10-year and 30-year yields, and shorter duration yields, like the 2-year, fell.
Strategists say investors were betting the new 20-year will help drive rates higher at the long end of the Treasury curve.
“At that time, w
Treasury brings back the 20-year bond to pay for the ballooning deficit Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: patti domm
Keywords: news, cnbc, companies, bond, long, treasury, yields, ballooning, brings, issuance, trillion, pay, strategists, issue, 20year, deficit, expected, end


Treasury brings back the 20-year bond to pay for the ballooning deficit

The Treasury Department is issuing a 20-year bond for the first time in 34 years to help pay for the ballooning $1 trillion dollar budget deficit.

The Treasury announced the new issue Thursday, and strategists said it could start trading as early as May. Treasury will announce more details Feb. 5, but strategists say the new bond should see good demand though it may trade at a discount initially as the market adjusts to it.

On Friday, news of the 20-year triggered a so-called “steepening” trade where Treasury yields on the long end of the curve rose, like 10-year and 30-year yields, and shorter duration yields, like the 2-year, fell. Yields move opposite price. Strategists say investors were betting the new 20-year will help drive rates higher at the long end of the Treasury curve. The 10-year yield Friday rose 2 basis points to 1.82%, while the 2-year yield was at 1.55%, off from a high of 1.58%.

“You’ve got more supply coming at the back end, and people think implicitly Treasury won’t take all of the 20-year supply out of the 10-years and 30-years, so there’s more long issuance coming and there will be less front end,” said Michael Schumacher, director, rates at Wells Fargo. Strategists expect the Treasury to trim back some of its 10-year and 30-year bond issuance to make room for the 20-year and Schumacher said the Treasury could pare some Treasury bill issuance, which is its shortest term debt including 1-month and 3-month maturities.

Schumacher said the new 20-year could carry a yield similar to old 30-year bonds that mature in 2040, now yielding about 2.16%. He expects the Treasury would issue about $150 to $160 billion a month of the new security.

“For the 20-year, the plumbing is still all set up. This would fit nicely into the futures contracts,” Schumacher said, noting the Treasury’s net issuance is about $1 trillion a year. “If the Treasury had gone with the 50-year, it would have been out there by itself. It’s guess work where that would have to price. This is a lot more clear.”

Schumacher said he polled investors and there was much more interest in the 20-year than 50-year bonds. “We’re fans of this,” he said, adding he expects strong investor interest.

Other strategists do as well, though the issue may take some time to catch on.

“Out of the gate, we think it might trade a little cheaper than 10s and 30s, as the liquidity is built out and the investor community becomes used to the new auction schedule,” said Ben Jeffery, fixed income strategist at BMO. “It makes a lot of sense to fulfill their funding needs. Given there’s a natural demand point on the curve at the 20-year space, it matches better. It meshes with some of the traditional buyers of duration, like pension funds.”

Strategists say the way Treasury made the announcement was a surprise, particularly since it could have announced it when it releases details on its refunding in February.

NatWest Markets strategists said they were surprised the Treasury was issuing the 20-year now, while it would have made more sense two years ago when the Treasury was looking forward to larger auctions.

“While deficits are still running high, the current auction calendar should already cover most of those funding needs, with bills (which will largely be absorbed by the Fed) picking up the difference. Contrast this to 2017, when coupon issuance was set to rise significantly and a 20-year could have easily been added to the calendar without needing to scale back at any other point,” the NatWest strategists wrote in a note. “At that time, we had been strong advocates for a 20-year issue, and had even penciled one into our baseline forecasts. Now, with existing coupon auction sizes expected to remain flat, we had assumed the urgency to roll out a 20-year security would have waned.”

The Treasury issued a total $2.7 trillion in Treasurys in calendar year 2019, including gross coupon bills, notes and bonds; floating rate notes and TIPS, and until this announcement those amounts were not expected to change, according to NatWest Markets.

Andrew Brenner of National Alliance says he would have preferred longer duration issuance, so the Treasury could take advantage of low interest rates to cover the growing debt.

“I would have loved to see a 40-year of 50-year but they [dealers] convinced the Treasury there wasn’t demand for them,” he said. “We really need to lock in low yields long term but 20-years was the compromise.”

The budget deficit is expected to surpass $1 trillion for the first time since 2012 in this fiscal year, and it is expected to continue growing. For the year ended last Sept. 30, the deficit was $984 billion.


Company: cnbc, Activity: cnbc, Date: 2020-01-17  Authors: patti domm
Keywords: news, cnbc, companies, bond, long, treasury, yields, ballooning, brings, issuance, trillion, pay, strategists, issue, 20year, deficit, expected, end


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Amazon reportedly wanted to secure $1 billion in incentives on top of HQ2 deal

The company set the lofty incentive goal in 2017 as it experienced high capital investment costs, according to the Journal. Executives hoped to secure $1 billion worth of incentives to pursue real estate projects, on top of the inducements it expected to receive for its second headquarters, called HQ2. Amazon ultimately abandoned the plan after it was unable to secure $1 billion in incentives and decided it wasn’t the right course of action, the Journal said. It’s unclear what kinds of incentive


The company set the lofty incentive goal in 2017 as it experienced high capital investment costs, according to the Journal.
Executives hoped to secure $1 billion worth of incentives to pursue real estate projects, on top of the inducements it expected to receive for its second headquarters, called HQ2.
Amazon ultimately abandoned the plan after it was unable to secure $1 billion in incentives and decided it wasn’t the right course of action, the Journal said.
It’s unclear what kinds of incentive
Amazon reportedly wanted to secure $1 billion in incentives on top of HQ2 deal Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: annie palmer
Keywords: news, cnbc, companies, deal, reportedly, set, amazon, expected, journal, secure, billion, tax, incentives, company, receive, million, hq2, wanted


Amazon reportedly wanted to secure $1 billion in incentives on top of HQ2 deal

Amazon CEO Jeff Bezos and his senior executive team sought $1 billion in economic incentives for real estate projects around the country, on top of what the company expected to receive for HQ2, The Wall Street Journal reported Thursday.

The company set the lofty incentive goal in 2017 as it experienced high capital investment costs, according to the Journal. Executives hoped to secure $1 billion worth of incentives to pursue real estate projects, on top of the inducements it expected to receive for its second headquarters, called HQ2.

Amazon ultimately abandoned the plan after it was unable to secure $1 billion in incentives and decided it wasn’t the right course of action, the Journal said. It’s unclear what kinds of incentives Amazon had hoped to secure.

An Amazon spokesperson said the company doesn’t have goals for the amount of incentives it receives.

“Like many other companies, we are eligible to access incentive programs created and regulated by cities and states to attract new investors – as they know that these investments pay a long-term dividend in the form of jobs, new economic opportunity, and incremental tax revenue,” the spokesperson said. “The vast majority of these incentives are statutory and post-performance – Amazon is eligible only after having created and maintained a certain number of jobs within the community.”

In 2017, Amazon launched a nationwide search for its second headquarters, which kicked off a bidding war among states across the country. Officials tried to lure Amazon by offering copious incentives, such as tax credits and grants, in exchange for the promise of job creation and other investments from the company.

Amazon was forced to abandon its HQ2 plans in New York City’s Long Island City neighborhood after it faced local opposition. Before it pulled out, Amazon was set to receive $3 billion in incentives, as well as $800 million in tax credits and grants, according to a separate report from the Journal.

Construction is set to begin soon on Amazon’s second headquarters in northern Virginia. The company will receive about $573 million in performance-based incentives from the state and local government, as well as a $23 million cash grant paid over 15 years from the county, tied to expected increases in hotel tax revenue to the area.

Amazon is also building an Operations Center of Excellence in Nashville, Tennessee, where it’s expected to receive up to $102 million in performance-based incentives for its investment there.

Read the full report from The Wall Street Journal here.


Company: cnbc, Activity: cnbc, Date: 2020-01-16  Authors: annie palmer
Keywords: news, cnbc, companies, deal, reportedly, set, amazon, expected, journal, secure, billion, tax, incentives, company, receive, million, hq2, wanted


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