6 Most Important Things in Business Today
People are no longer going from one city to another to get new work. According to The Wall Street Journal:
Fewer U.S. workers are moving around the country to seek new job opportunities, as changing family ties and more openings near home make people less willing to uproot their lives for work.
About 3.5 million people relocated for a new job last year, according to U.S. census data, a 10% drop from 3.8 million in 2015. The numbers have fluctuated between 2.8 million and 4.5 million since the government started tracking annual job-related relocations in 1999—but have been trending lower overall, even as the U.S. population grew by nearly 20% over that stretch.
Decisions about the future of Sears Holding Corp. (NASDAQ: SHLD) could drive a wedge between its CEO and its board. According to The Wall Street Journal:
For years Edward Lampert has called the shots at Sears Holdings Corp. SHLD -9.62% as its chief executive, largest shareholder and biggest lender. But his latest play to keep the struggling chain afloat is out of his hands.
The hedge-fund manager turned CEO said earlier this year that he would be interested in buying the Kenmore appliance business and other assets, after a two-year strategic review by the company failed to result in a deal for the units. Frustrated by the pace of deliberations, Mr. Lampert stepped in last week with a $400 million offer to buy Kenmore himself.
Now the Sears board’s four independent members must decide whether to sell one of the company’s prized brands to its controlling shareholder or hold out at a time that Sears’s business has deteriorated and a major debt payment looms.
“Crazy Rich Asians” ruled the box office last weekend. According to Box Office Mojo:
August may be a notoriously slow month at the box office, but Warner Bros. has now delivered back-to-back strong performers. Last weekend The Meg topped all expectations and continued its strong global performance this weekend, while the new release of Crazy Rich Asians delivered an estimated $34 million in its first five days of release. Between the two films, WB secured the weekend’s top two spots, and helped deliver the third straight August weekend this year to top the same weekend last year. Unfortunately, the weekend’s two other new wide releases, STX’s Mile 22 and Sony’s Alpha, weren’t able to have such splashy debuts.
PepsiCo Inc. (NYSE: PEP) made a major acquisition. According to CNBC:
Beverage and snack giant PepsiCo announced Monday plans to acquire at-home carbonated drink-maker SodaStream for $3.2 billion.
The Purchase, New York-based company agreed to pay $144 per share in cash for SodaStream’s outstanding stock, a 32 percent premium to its 30-day volume weighted average price.
The deal gives Pepsi a new line through which it can reach customers in their homes, rather than through stores
Used car prices mysteriously have risen. According to CNBC:
Surrounded by the quiet corn fields of Pennsylvania’s Amish country are 400 acres of paved lots packed with used cars that make up the world’s largest used auto auction here.
The voices of dozens of auctioneers across 36 lanes simultaneously rattle off prices, makes and models in a rhythmic repetition. “SOLD!” is cried out with each purchase — at least once every 60 seconds, 500,000 times a year.
The prices at the Manheim auto auction have been better than usual lately, especially since President Donald Trump started pushing for new tariffs on imported vehicles, parts as well as the steel and aluminum used to make cars, said Jonathan Smoke, the chief economist of Cox Automotive. Cox runs the auction, which draws dealers from around the country to bid online or in person at the auction house.
Pay packages are moving higher. According to The New York Post:
Workers will finally be bringing home the bacon — salaries are about to break out of a decade-long slump.
US professionals nationwide will soon be taking home their biggest paychecks, as the tightening labor market and economic recovery will spur companies to confidently raise salaries and pay bigger bonuses, according to a new study by Willis Towers Watson Data Services.