6 Most Important Things in Business Today
Retailer Nine West has filed for bankruptcy. According to Reuters:
U.S. footwear and apparel company Nine West Holdings Inc filed an amended Chapter 11 bankruptcy plan that will reduce its pre-bankruptcy debt obligations by more than $1 billion, the company said on Wednesday.
The plan is expected to provide $105 million cash recovery to stakeholders through the settlement of potential claims and causes of action against the company’s indirect equity owners, it said.
EBay.com Inc. (NASDAQ: EBAY) has taken rival Amazon.com Inc. (NASDAQ: AMZN) to court. According to The Wall Street Journal:
EBay.com Inc. on Wednesday filed a lawsuit against Amazon.com Inc. accusing the company of illegally poaching sellers on its marketplace via eBay’s internal messaging system.
The lawsuit, filed in Santa Clara County in California, accuses Amazon of having “perpetrated a scheme to infiltrate and exploit eBay’s internal member email system” over the past few years. The alleged scheme was used by dozens of Amazon sales representatives in the U.S. and abroad to recruit high-value eBay sellers to Amazon, the lawsuit said.
Tesla Inc. (NASDAQ: TSLA) plans to build a factory in China. According to The Wall Street Journal:
Tesla Inc. gained a foothold in the world’s biggest market for electric vehicles, completing the purchase of land for its new Shanghai plant, the company announced.
“Securing this site in Shanghai, Tesla’s first Gigafactory outside of the United States, is an important milestone for what will be our next advanced, sustainably developed manufacturing site,” said Robin Ren, Tesla’s vice president of world-wide sales, in a statement issued following a signing ceremony in Shanghai on Wednesday.
The United States decides not to name China a “currency manipulator.” According to The New York Times:
The Trump administration is eagerly embracing a trade war with China, but on Wednesday, it opted once again not to label that nation a currency manipulator despite President Trump’s repeated complaint that Beijing is weakening the renminbi.
The Treasury Department’s biannual currency exchange report, the fourth of Mr. Trump’s presidency, criticized China’s trade and currency practices but still did not conclude that the Chinese government was improperly devaluing the renminbi. Doing so would have significantly ratcheted up tension between the United States and China; however, its status remained unchanged largely for technical reasons.
Global wealth continues to rise. According to CNBC:
Household wealth in the U.S. is continuing to see an “unbroken spell of wealth gains” but China has replaced Japan in second place in the world wealth hierarchy, according to Credit Suisse’s latest report on global wealth.
During the 12 months since the bank’s last report to mid-2018, aggregate global wealth rose by $14 trillion to $317 trillion, representing a growth rate of approximately 4.6 percent, according to the Global Wealth Report 2018, published by Credit Suisse’s Research Institute on Thursday.
Uber raises money via a huge debt issue. According to CNBC:
Uber has raised $2 billion in a junk bond sale, according to a report, as it gears up for its 2019 stock market debut.
The ride-hailing firm raised $1.5 billion through the sale of eight-year notes with a yield of 8 percent — it had initially pitched $1 billion — and an additional $500 million by selling five-year notes with a yield of 7.5 percent in a private placement led by Morgan Stanley, according to the Financial Times.