Tag Archives: securities

Fashion Retailer Express Taps Adviser, Seeking Financing to Live Longer from Covid | Instant News

Fashion retailer Express Inc. has hired investment bank Lazard Frères & Co. to help raise enough financing to get the company through the Covid-19 pandemic, said CEO Timothy Baxter.

A workwear retailer based in Columbus, Ohio, wants to strengthen its finances, says Baxter. He said Express was not considering bankruptcy “and continues to take decisive and appropriate action to manage liquidity during this prolonged pandemic.”

With so many Americans working from home, the pandemic has dealt a devastating blow to Express and other retailers focused on clothing designed for the office. The company wants to increase its cash reserves to keep it afloat until enough of the US population is vaccinated against the coronavirus to allow for the resumption of direct spending and office work, according to people with knowledge of the matter. Without additional financing, which can come in the form of first-in-last-out facilities, companies could face cash shortages, people said.

Mr. Baxter said Express “has several possible options for increasing liquidity as it enters 2021.” Earlier this month, the company reported a comparable 30% drop in sales last quarter and said it would cut 10% of its company staff to help save cash.

Consumers who are stuck at home are spending more of their money on casual wear and sports, said Burt Flickinger, managing director of Strategic Resources Group, a consulting firm that focuses on retail and consumer companies.


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Place of trade: New head of Citi in Germany, chairman of Barclays in England, advises Raymond James | Instant News

Citigroup is hired Peter Kimpel | as head of banking, capital markets and advisor to Germany and Austria. Kimpel is from Barclays where he leads its operations in Germany, having joined a lender two years ago from fintech firm Rocket Internet. Former Goldman Sachs deal-maker Kimpel will replace Stefan Wintels, who has several positions at the US bank including vice chairman of the global financial institutions group and vice chairman of Germany, whom he will retain. Investment banking fees have surged 20% in the country this year, according to Dealogic, and competition for senior deal-makers is heating up.

The ring-fenced British retail bank Barclays has a new seat as Sir Ian Cheshire announced his intention to step down after more than two years of work. It is a challenging time for retail banks, which must overhaul their businesses to offset the impact of the Covid-19 crisis and a prolonged new era of low interest rates. Cheshire said he could not dedicate the time needed to do this, and has given up control Crawford Gillies.

Global co-head for HSBC investment banking advisory and protection, Peter Enns, leaving the bank early next year to take a role outside the banking sector. Enns, which is based in Hong Kong, has not been replaced, with former Deutsche executive Adam Bagshaw – who joined HSBC earlier this year – heading the unit himself on a temporary basis. Hugo Heath, vice chairman of HSBC, global banking will work closely with Bagshaw, the bank said in a memo sent to staff seen by Financial News.

Middle market investment bank Raymond James plays a major role in the consumer and retail sectors by acquiring specialist boutique advisor Financo. The move will see 25 new dealmakers and Financo’s CEO, John Berg, will lead a new consumer team, which has doubled to 50 bankers.

French bank Societe Generale is working to increase its diversity credentials by promoting more women into senior roles. The bank has pledged to ensure 30% of all senior management roles are held by women in the next three years. This means that one-third of its top 200 positions – from executive roles to management positions across business lines and functions – will be held by women.

Andrew Lake has been promoted to partner in the Swiss Mirabaud Group asset manager. He was hired by the company in 2013 and currently leads its regular income team.

Aviva has given a name Doug Brown chief executive of the UK and Irish life insurance business. Brown joined from Canada Life and will land at Aviva in April next year.

Jim Esposito, who was appointed as one of the heads of Goldman Sachs’ investment banking division following Gregg Lemkau’s unexpected departure in November, is focused on talent in his new role. Goldman continues to attract the “best and brightest” he says Financial News, but competition is growing and the need to ensure banks retain their best people has become inseparable.

Christmas jumper on top, tracksuits below? Yes, it’s a virtual Christmas party. Prepare a mini wine bottle and put a smile on your face. Here’s how enjoy the best of excitement through Zoom.

Some were able to relax during the holidays after being appointed managing directors. Citigroup, Swiss credit and Barclays all have named their new MD class over the past week.

To contact the author of this story with feedback or news, email Paul Clarke


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Citi hires Peter Kimpel of Barclays as head of the new German investment bank | Instant News

Citigroup has hired a senior investment banker from Barclays in Frankfurt, as major investment banks continue to improve their ranking on the continent.

The US bank has appointed Peter Kimpel as head of banking, capital markets and advisor to Germany and Austria, according to internal memos viewed by Financial News.

Kimpel joined Barclays two years ago to head up its Germany operations of fintech firm Rocket Internet, where he was chief financial officer. Previously he spent 20 years at Goldman Sachs, most recently as a partner spanning financial institutions across Europe.

“Peter will provide senior strategic client coverage and will align the BCMA franchise with broader and corporate strategy through a strong partnership across ICG to deliver to our clients,” said a memo from Philip Drury, BCMA’s head of Europe, Citi Middle East. and Africa.

READ Citi has just been promoted 153 to MD – this is the name

Frankfurt has been the main battleground for a deal this year as banks shift more resources to the continent because of Brexit and also because Germany has seen investment banking costs rise throughout 2020. The bank has generated $ 2.6 billion in fees this year, according to Dealogic, an increase of 19%, with the country surpassing France as the second largest wallet for investment banks in Europe, after the UK.

Kimpel will take over from Stefan Wintels, who has held several senior positions. He will continue in his role as global co-head of the financial institutions group, vice chairman of Germany and vice chairman of the supervisory board of Citigroup Global Markets Europe AG.

To contact the author of this story with feedback or news, email Paul Clarke


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Stocks Laughing on Economic Uncertainty, for Now | Instant News

US economic uncertainty remains at near record levels, and the stock market is at an all-time high. If history is any guide, something has to be given.

It’s the message that flashes from an index of economic uncertainty created by three finance professors: Scott Baker of Northwestern University, Nicholas Bloom of Stanford University and Steven Davis of the University of Chicago. Prior to this year, there was a strong correlation between the rise in this index and the decline in stocks. In fact, based on this historical pattern in 1900, the S&P 500 appears to be about 20% taller than it should be.

Such signals may seem surprising given the near-final election resolution and the hopeful news on the Covid-19 vaccine front. But this is how the professor index works.

This index is based on the frequency of mention of words and phrases related to economic uncertainty in major newspapers. In the accompanying chart, this index – known as the Economic Policy Uncertainty Index, or EPU, – has retreated somewhat from its April and May spike, but remains nearly three times higher than average over the past several decades.

In an interview, Prof. Bloom explained that there are several ways in which increasing economic uncertainty is a barrier to economic growth. This increases the cost of capital, for example, which means that businesses can’t justify new projects as much as they do. This causes businesses and consumers to delay spending. And that reduces the effectiveness of the government’s stimulus program.


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This SPBU Entrepreneur Prioritizes Food Over Fuel and Becomes Rich | Instant News

Two brothers who became billionaires in Britain with a focus on food rather than fuel at gas stations are looking for ways to launch the model globally in hopes of finding wider success.

As teenagers, Mohsin and Zuber Issa worked at a gas station in northern England owned by their parents, who emigrated from India in the 1960s. They used that experience to expand from purchasing one abandoned site nearby to one of the largest independent gas station operators in the world, with more than 6,000 locations across Europe, and more recently in Australia and the US.

They took profits because the big oil companies sold underperforming gas stations, taking locations in the UK and later in Europe. Their guidebook: multiplying higher-margin foods, selling fresh and packaged groceries, and franchising some of the world’s most famous fast food brands.

Now the Issa brothers are looking to repeat the trick at US EG Group – a business they co-own with private equity firm TDR Capital – achieving its sixth American acquisition in just two years in November.

But as the brothers scoured the stock market list for the business, they faced scrutiny over corporate governance and debt that was building up to fund its rapid expansion. And some retail analysts say the EG Group faces a tougher test in the United States.


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