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BBVA And Sabadell Break Their Merger Accomodations

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11 days after BBVA and Sabadell announced that they were opening official talks to merge, the two entities have broken the negotiations that were held until the early hours of this Friday.

The reaction of the Stock Exchange has been clear at the opening of the day: the Sabadell has set a first price at 0.33 euros, which represents a fall of 18% while it was inhibited from trading. After starting to fluctuate , it was down 12% .

For their part, BBVA shares started falling, but soon turned green with a rise of 2% , to 3.84 euros.

Without reaching the end of the technical analysis ( due diligence) , Sabadell considered that the price that BBVA was willing to pay did not value the potential of its business and the loss of independence that the sale entailed.

“Banco Sabadell has decided to end these talks as the parties have not reached an agreement on the eventual exchange ratio of the shares of both entities,” as the bank notified the National Securities Market Commission (CNMV) this Friday .

For its part, BBVA has also informed the CNMV that “the talks related to a potential merger operation with Banco Sabadell have concluded without an agreement having been reached”, without giving further details.

After these two announcements, which will have deeply displeased supervisors who see mergers as a way to strengthen banks in the face of the crisis, now the key is the reaction of the markets.

The Sabadell has risen 32% since the announcement of the talks, although it started from very low prices. BBVA has risen 19% in this same period.

The valuation differences between the two banks were very relevant. BBVA had planned to make the payment through an exchange of shares, so it is likely that the president of Sabadell, Josep Oliu, would have demanded a vice-presidency and Carlos Torres, the head of BBVA, would have refused.

Financial sources commented this Thursday afternoon on the serious differences and mutual distrust that had arisen in the talks, to the point that they could end in rupture.

Regarding the vice-presidency of Oliu, these sources indicated that Torres did not want to introduce the rival executive due to the uncertainty that exists over the BBVA-Villarejo case . If Torres were to be imputed by the National Court and had to give up the presidency, it could end up in the hands of Oliu.

Sabadell assumes the rupture saying that the bank “will develop a new business plan that will prioritize the domestic market as a formula to increase efficiency in the use of the Group’s capital and resources, thus increasing profitability and creating value for shareholders. ”.

As for BBVA, if Sabadell’s plan did not come out, analysts believe that it could carry out a buyback of its own shares to boost the price, as well as expand its presence in the capital of Garanti, its Turkish subsidiary, of which it controls 40 %. However, this option would increase risk in a very geopolitically unstable region.

The Bank of Spain warned of this danger a few weeks ago, which is why it was more in favor of the merger with Sabadell. It should not be forgotten that the CEO, Onur Genç, is Turkish and held this position at Garanti.

In this return to the origins, Sabadell insists in the note that “without prejudice to the fact that the main axes and objectives of the plan will be made public during the first quarter of 2021, Banco de Sabadell is in a position to anticipate that it will contemplate.

Among other measures, the expansion of the efficiency and transformation program in the retail market ( retail banking) in Spain ―with a neutral impact on capital― and will analyze with its advisors strategic alternatives for creating value with respect to the Group’s international assets, including TSB “.

In an act of realism, Sabadell admits the poor future of TSB, which has had serious computer problems that led to the temporary blocking of accounts. Additionally, UK regulatory requirements have delayed the bank’s return to profits. The market values ​​this entity at zero.

Finally, Sabadell claims to have “a solid franchise in Spain and is the leader in the customer satisfaction index in the SME segment”.

The Catalan entity announces that it will focus “on these segments with the highest added value and profitability” and that it will implement its new plan “improving both its efficiency and the organic generation of capital”. The market will be the one to judge the consequences of this divorce.

Top 5 RV Destinations for Your First RV Adventure

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Traveling via RV is one of the best ways for you to go on a road trip with family and friends. With an RV, you can feel a close intimacy with the places you’ll be staying, not to mention the relaxation you can get from being able to relax while on the road.

However, one of the most overwhelming but exciting parts of planning an RV adventure is deciding where to go. Well, that is if you already have an RV of your own. But if you don’t have one yet but you plan on buying an RV soon, you can visit My Financing USA for an RV loan if you’re interested. After all, you have a lot of places to choose from, and if you can go to every single one of them, you would do it in a heartbeat. But you can’t. That’s why picking places to go can also be stressful.

Lucky for you, we listed the places that we think are worth for you to try and visit on your own during your adventure. Here are some of them.

The Oregon Coast

One of the most popular RV destinations that people tend to go to first is the Oregon Coast. It’s popularity checks out because it indeed is a sight to behold, especially during the sunset. Its location is convenient, too, if you’re planning to the California border. Along the way from the Columbia River, it’s about 362 miles.

On the Oregon Coast, you can watch the puffins go about their daily lives on the rocks along the shores of Cannon Beach and Pacific City. You can also check out several lighthouses that dot the coastline.

US National Parks

If you’re new to RVing, knowing the different US national parks near your area is a good move. Currently, the country has around 58 national parks, which boasts a great selection of parks that gives you an intimate experience with nature and the great outdoors.

Most national parks like Yosemite, Zion, and Yellowstone have a suitable campground in the area. In them, there are public campgrounds that you can share with everyone else. However, if you’re looking for a more private area, there is a private campground as well.

Because of their beautiful campgrounds and probably the limited lodging around the area, national parks are an excellent way to start your RV adventure.

The Florida Keys

If you’re looking to escape the winter, the Florida Keys is your best bet. This place is one of the few places that offers sunshine and warmth all year long and boasts the most breathtaking tropical views and atmosphere.

There are different activities you can participate too, like kayaking, snorkeling, and diving. If you’re looking for parks instead, they have several. A few of these parks are Dry Tortugas National Park, Everglades National Park, and Biscayne Park. You don’t have to have each of them too since they can be located pretty quickly since they’re near.

Campgrounds are plenty too so it’ll be easy to find one that you find suitable for you. However, since it’s a popular RV destination, you may also book yourself a spot in the campgrounds to secure one. This is especially true during the summer, where many people will be visiting, resulting in long peak hours that can last for months.

Route 66

Route 66, also called the Mother Road, runs from Chicago to Santa Monica, California. It’s even featured in the novel “The Grapes of Wrath,” written by John Steinback in 1939. Not only that, but it also had a television show centered around Route 66. However, the road was taken out of the US highway system back in 1985 and featured as a tourist destination. Now, it’s divided by various National Scenic Byways.

If you’re planning to have a road trip on this historical road, then be prepared to plan for a long one. There are a lot of tourist spots along Route 66. Several of these are the Santa Monica Pier, Cadillac Ranch in Amarillo, and the National Route 66 Museum in Elk City.

If you’re looking for a stop, you can see a lot of motels along the way, such as the Wigwam Motel in Arizona. However, if you want to be on a genuine road trip and are planning to stay in a campground instead, you can find RV-friendly stops like St. Louis West/Route 66 KOA.

The Black Hills, South Dakota

The Black Hills Region is one of the most popular RV tourist destinations that everyone wants to go to. The place is RV-friendly, and it’s home to several significant landmarks in the US, such as Mount Rushmore and the Crazy Horse Monument. There are also several National Forest areas in this place, such as Wind Cave National Park, Jewel Cave National Monument, Custer State Park, and Devil’s Tower.

If you’re looking for lodging, you can visit some of the small western towns that are nearby in the area. However, if you want to stay in campgrounds, then it’s no problem. The area is large enough for your RV to camp and to explore around the area for as long as you like.

The Great Smoky Mountains

Some people call the Great Smoky Mountains, the Blue Ridge Parkway Part 2. However, that’s far from the truth. Although the Blue Ridge Parkway is excellent, the Great Smoky Mountains also have a lot to offer for people who want to hike and camp in the area. The Great Smoky Mountains National park is big and spans around 816 miles. If you entered from Cherokee, North Carolina, you wouldn’t see the vast majority of the site.

That said, it’s mostly recommended by a lot of people to just come into the other entrance in Gatlinburg, Tennessee, since along the way, you can visit the other tourist spots near the area, such as the Pigeon Forge, Ripley’s Aquarium, and yes, Dolly Parton’s amusement park.

Takeaway

All of the RV tourist destinations mentioned above are great and excellent starting points for your RV adventure. However, if you want to visit all of them at once, you’re free to do so. It’s essential to note that this list is in no way a ranking list since every one of these tourist destinations has its way of welcoming everybody with what they can offer. Happy trip!

Author Bio:

Lauren Cordell is a writer that is adept in writing articles about travelling, the fashion industry, and finance. She’s mostly busy studying about the aforementioned topics and can be seen reading articles about them. Whenever she’s not busy, she browses her social media accounts or read novels. She also walks her dogs when everyday and whenever she feels like it.

Asia has Lessons for America’s Blockchain Sector

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Bitcoin is enjoying a surge in value this year due to COVID-19 fears and increase accessibility. The digital currency’s appeal has been boosted by-products like Bitcoin ATMs (BTM) that have been installed across the globe. Yet across the US, blockchain start-ups are struggling under the weight of unclear regulations and are eyeing Asia as an alternative. 

Shifting markets

While stock markets rallied following the news of Pfizer and BioNTech’s vaccine effectiveness and the US election result, markets are still uneasy as Europe and the US continue to be dragged down by spiking infection rates – any vaccine would also be several months away from the final delivery.  

The stay-at-home companies that defined the COVID era are beginning to lose steam as stock market investors shift from tech into more long-term growth options like banks. Meanwhile, the precedent for high returns established after the March rebound has pushed many investors into cryptocurrency markets – they are trading at record volumes. Traders who saw 200%-500% returns in Tesla, Zoom, and Netflix are now turning to Bitcoin and DeFi (decentralized finance) markets to find similar returns.  

It’s easy to see why Bitcoin is a strong contender. Its bull run that began in March has yet to subside and many analysts are expecting it to go beyond its record high of 2017.

It could even challenge gold as a ‘safe-haven’ investment. Just this week, investment bank JP Morgan described Bitcoin’s potential long-term upside as “considerable as it competes more intensely with gold as an ‘alternative’ currency” and that it was becoming an “important component of investors’ universe”.

While Bitcoin has had its fair share of downturns, its growth trajectory is predicted to continue as demand remains unabated.

Underscoring this demand are BTMs that serve the hundreds of millions around the world without sufficient access to a bank account. So popular are these machines now that over 12,000 of them have been installed worldwide as consumers seek more convenient gateways to access cryptocurrency markets. These machines, as convenient as using a traditional ATM, undercut the exorbitant charges and restrictions that plague the traditional banking sector – and allow users to share in Bitcoin’s upside.

In the US, for example, African Americans and Latinos are said to be paying higher fees in the traditional banking system than white Americans. According to research produced by Bankrate, average bank fees were around $5 a month (which includes overdrafts, ATM charges and penalties), yet people of color were paying anywhere between $12 and Hispanics $16 a month on average.

Digital currencies can do much to transform the banking sector for those who have trouble accessing it because of the benefits of their decentralized structure – i.e. minimal fees, security, and equality by design. Advocates of crypto finance keen on promoting the benefits for the underbanked. Ben Weiss, COO of CoinFlip, the world’s largest Bitcoin ATM operator, says his company aims to empower those who have no access to centralized banking systems.

Despite the benefits and potential to democratize finance, US regulators are slow to introduce clear regulation that could allow the crypto industry to flourish.

This reluctance is due, in part, to the negative reputation cryptocurrencies garnered after they were used by criminals on the Silk Road marketplace, the Darknet, and other platforms that allowed the financing of terrorists, drugs, and money laundering.  

With its hesitancy over creating a crypto-friendly environment, America runs the risk of being left behind. Some Asian countries have noticed the benefits and have, in turn, established clear regulations that have allowed the industry to flourish.

Singapore, for example, appears to have struck a regulatory balance that will keep illicit entities in check while allowing legitimate operators to conduct their business. In January, it introduced the Payment Services Act 2019 (PSA) covering all crypto businesses under AML (anti-money laundering) and CTF (counterterrorist) rules.

Even before it introduced regulation it always kept a keen eye on blockchain business and crypto activity.

The country is now considered to be in a good position to lead crypto growth globally as its regulatory stance, along with its reputation as a financial hub, is set to attract more start-ups and exchanges.

Other Asian countries have made great strides too. South Korea is considered to have one of the most comprehensive cryptocurrency laws in the world. In March, it passed a bill to regulate cryptocurrency and exchanges. Two years ago – to prevent money laundering and other criminal activities – the country introduced the ‘Real Name System’, which banned the use of anonymous bank accounts.

In Japan, exchanges and operators must get a regulatory license. Japan currently has 23 FSA (Financial Services Agency) approved exchanges and its rules have prompted an exodus of unlicensed exchanges.

Recently, Hong Kong’s Securities and Futures Commission (SFC) announced the regulations of crypto trading platforms operating in the region. Some of the world’s largest exchanges operate in Hong Kong.

While Asia is steaming ahead some US blockchain firms, such as CoinFlip, are keen on seeing similar progress on US soil and are advocating for a more business-friendly environment.  

Just recently, Weiss and the Blockchain Advocacy Coalition gave their backing to legislation in California that would set up the state as a cryptocurrency hub. Weiss has also played a role in progressive legislation in New Jersey.

So, what can the US do? To take back some control and compete with Asia, the US must establish clear regulations that do not restrict innovation. Regulations must also provide clarity so businesses can operate stateside with confidence.

As America ponders its options, its innovators and job seekers end up losing out. Weiss states “regulations in the US are required not just to protect consumers, but to spur innovation as several institutional and retail investors realize the risk of not having some Bitcoin in their balance sheets.”

America has typically been the jurisdiction of choice for setting up large multinational tech companies. But this is about to change – the next major ‘Apple’ or ‘Amazon’ will establish its roots in Asia instead.

If the US continues to delay the creation of a crypto-friendly environment it stands to lose out on major talent and investment potential – if it hasn’t done so already. 

ECB Is Inclined To Lift Veto On Bank Dividends

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The European Central Bank could lift the veto on banking dividends next year if banks’ balance sheets are strong enough to overcome the coronavirus pandemic .

BBVA, like Santander. Joins the dividend car and plans to improve results

The final decision will depend on how conservative the banks’ internal models and their provisioning are, in addition to the ECB’s vision of the trajectory of its capital, according to the entity’s member, Yves Mersch , in an interview. with the ‘Financial Times’.

The decision is important for the two giants of Spanish banking. A few months ago, Santander became the first major bank to announce the return of dividends as soon as the ECB allowed, and BBVA joined the bandwagon a few days later.

The ECB acknowledges that euro zone banks have faced the pandemic with a stronger capital position than in the 2008 crisis. However, Mersch points out that it would be inconsistent for them to take advantage of relief measures deployed by regulators to pay dividends .

It will be very difficult to maintain the veto on dividends beyond this year, Mersch acknowledged. It is a decision that creates legal uncertainty.

However, the ECB will look closely at the circumstances in which the return to the dividend occurs and will be very conservative in relation to the resumption of payments compared to the amount they had before the crisis.

The ECB recognizes that the dividend veto creates legal uncertainty and will lift it if balance sheets are strong.

As soon as the pandemic broke out, the ECB asked the banks not to pay dividends and to concentrate on reinforcing their capital to face the crisis in better conditions. After the summer, the ECB began to send signals about a possible withdrawal of the veto on dividends.

With interest rates at historic lows, margins on the decline and non-performing loans on the rise, the regulator’s decision was a heavy burden for financial institutions.

In the third quarter results it was already possible to verify the significant effort made by the banks to reinforce their capital levels and increase their provisions. In short, the vast majority did their homework. Yet another argument for the ECB to lift the veto.

For Spanish financial institutions, the return of dividends could be an important catalyst, which would add to the process of sectoral consolidation opened after the merger of Caixabank and Bankia. The punishment has been very harsh. The two giants, Santader and BBVA, reached their two-decade lows.

Five Tips to Choose the Best Claims Denial Management Comprehensive Solution

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Claims denial management solutions have positioned itself as a crucial element of the healthcare industry and a must-to-have solution. The strategized end-to-end denial management services with root cause analysis is proved to reduce the denied claims rate and increase the claims settlement. Most importantly, it serves as a crucial element to ensure steady cash flow for operational efficiency and revenue cycle management.

Claims Denial Management Process

The key is lower claims denial ratio and improving the acceptance and recovery of claim value through analysis and review.

The healthcare industry, in recent years, has witnessed a huge adoption of outsourced solution/ in-house software deployments. Similarly, the claim denial section has also been revamped. However, with umpteen number of service providers and profuse product availability, the final decision-making regarding the best solution is difficult.

This blog gives an insight into the features that one should look in for choosing the best claims denial management solution.

Parameters Governing the Best Claims Denial Management solution:

  • Delivery of cost and value propositions – The claims denial management solution should be able to deliver precise identification of quantitative characteristics of denied claims along with root cause analysis. The solution should be able to import ERNs manually or electronically, automatic email reporting, and quality audits, as well. Overall, the solution should improve the cash-inflow and reduce the cost of managing and administering the denied claims.
  • A simplified overview with categorized denials– Keeping in mind the complexity of claims management, the claims denial management solution should offer simplified segregation. Classification of denials based on distinguishing factors like source, department, the reason for denial, date, geography, etc. streamlines the process. The solution should also track the common denial errors like name spell errors, pre-existing conditions, accidental details, among others.
  • Real-time claims management – In the present digitalized world, the claims denial management solutions need to act on a real-time basis. It has become critical to gain a competitive edge with real-time claims monitoring and resolution of petty errors.
  • Robust rule engine for facilitating process – The claims denial management solution should have a well-defined rule engine to track payer-specific regulations for claims payment, trend analysis, and denial activity identification. This sophisticated technical system can immensely help in defining the claims management for each user base and automatically populate current rules over the entire network. These search engines also facilitate the creation of intuitive analyzed reports for unpublished rules and recommend fixation of denied claims appropriately.
  • Analytical edge – Once the rule engine can track the issue and generate trends, the analytical edge is gained. Post this, the analysis should form the base for corrective action plans and prevent future denials. The claims denial management solution should be able to uncover issues, reduce denials, increase the quantum of claim denials, and efficiently submit the clean reports for acceptance and settlement.

Conclusion:

Overall, the chosen claims denial management solution should work on the three components of data capture: denial analysis, reporting, and process redesign. With effective implantation, the solution adds value to the businesses’ bottom line and creates holistic growth acceleration.

The Battle For Abengoa Focuses On The Control Of Assets

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The approval of Abengoa’s restructuring plan was left up in the air after the resignation of the board of directors. Now, Gonzalo Urquijo and his team are negotiating with Abengoashares , the minority that fired them, a strategy to carry out the rescue.

Conversations flow, as reported to finanzas.com sources familiar with the negotiations, and recent agreements, postponement of the judicial confrontation and acceptance of new candidates for the board, are a sign of the approach.

Although the latest news about the company is only the tip of the iceberg and underwater the biggest differences appear and where the meetings are centered.

Minorities request a new assessment of the financial situation of the company and the assets that compose it, considering that Covid-19 , an argument that the company used to request a rescue and calibrate the status of the group, is not valid.

The fact is that in order to clean up the accounts, Abengoa has had a divestment plan since 2016 with which to pay suppliers and creditors .

Since its inception and until last year, it allocated 870 million euros from the sale of Atlantica Yield to repay one of its debt issues, New Money.

According to the information provided by the company, Abengoa has in its portfolio 12 assets from which it can obtain returns and these are included in the rescue plan to amortize the support of creditors or make payments in payment to suppliers.

The assets are spread over Spain , the United States , India , Latin America and Africa . These include plants in Algeria , Ghana , India and Mexico .

On the other hand, they are pending collections or litigation in Spain , Kenya , the United States or Poland and awaiting government approvals in countries such as Peru .

The company insists that just by winning the international arbitrations it has open it can pocket more than 1,000 million euros, which would be a real boost for the viability of the multinational.

Abengoashares requests a new audit
This plan is not enough for minority shareholders and they insist on having access to the audit carried out by KPMG to know the status of the accounts. To date, the company has withheld this report on the grounds of confidentiality.

Abengoashares also requests another audit for the 2019 accounts, which are not submitted to the National Securities Market Commission ( CNMV ) with the signature of a consultant.

In this sense, Marcos de Quinto , the candidate of small investors for the presidency of Abengoa, pointed out in an interview with Finanzas.com that the Sevillian hides information regarding the status of the group.

Despite this statement, De Quinto shows a conciliatory attitude with Urquijo, another example of smoothing the rough edges between both positions and the objective, according to the former executive vice president of Coca Cola Company , is to speed up the signing of an agreement as much as possible.

Even, he pointed out to finance.com, they would be willing to renounce part of their requests in order to achieve an agreement that is as favorable as possible for all parties.

Of course, the objectives of increasing Abengoa’s position in Abenewco 1 and that the current parent continues to command the future of the group seem, for the moment, the red lines of the negotiation.

And it is that it will be in the control of the subsidiaries where the control of the group will reside. The desire of Abengoashares is that the advice of Abengoa and Abenewco 1 be the same .

Urquijo’s dismissal did not mean that he and his council also left the management of Abenewco 1, the recipient of the rescue, and therefore, the one that currently brings together the group’s activity, since Abengoa has been emptied of activity.

By preventing a new board from voting at the extraordinary meeting, the company managed to get the incoming team to convene a universal meeting for Abenewco 1 and resolve this situation.

To date, Abengoa maintains a position of 77.25% in Abenewco 1, so De Quinto’s triumph would have allowed him to also take over the position in Abenewco to command a new negotiation with suppliers, creditors, banks, ICO , etc. Cesce and the Junta de Andalucía .

But now we have to wait for the extraordinary meeting in December to appoint a new board in the old Abengoa. With this assembly, Urquijo intended to close the role of the Sevillian in the new group with three independent directors .

Now, the minority have proposed their own, as a previous step to the appointment of De Quinto and subsequent call for a universal meeting.

As the power play continues, the company’s bailout remains unsigned. Billions are in the air and the injection of up to 250 million from the ICO from the IBEX 35 bank , except for Sabadell , plus Credit Agricole and 300 million guarantees from Cesce are not signed.

A pact that could be blown up if retailers succeed and take root in the need for Abengoa to continue as the predominant company and the one listed on Abenewco 1.

And, according to the company, the signatories of the viability plan would only accept the agreement that is already over the week and that they will be inflexible in the face of an increase in the position of what would be the old matrix.

The Pandemic Brings The Youth Emancipation Rate Down To 17.3%

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The pandemic has aggravated the low capacity for emancipation that young people already dragged from the last economic crisis in 2008, according to the latest report from the Emancipation Observatory presented this Thursday by the Youth Council of Spain (CJE).

Despite the fact that the second semester of 2019 was already traumatic, the confinement and growth of youth unemployment in the first six months of 2020 lowered the rate to lows at the beginning of the century: only 17.3% of Spaniards aged between 16 and During this period, 29 years lived away from the home of his parents or a relative.

You have to go back to 2002 to find a lower percentage, and the future does not look promising: “Without quality employment, it will not be possible to reach the expected rates,” said Elena Ruiz, president of the CJE,

Adrià Junyent, vice president of the Council, has related the low emancipation with the job insecurity of the population under 30 years of age.

“We young people have suffered more from ERTE – 29.6%, compared to 24% of the rest of the population – with the loss of wages that this implies.” Worse still is the employment rate, where only one in three of Spaniards between 16 and 29 years old has a job, and it drops to 18.2% between 16 and 24.

In addition, youth unemployment is double that of among the rest of the population, 30%. “We have suffered the biggest rise in unemployment this year [compared to other age groups], 4.8 percentage points more,” Junyent added.

Women continue to be much more likely to become independent: 20.8% of them do so, compared to 14% of men. However, this year the number of emancipated women has fallen slightly more than men, as they have been more affected by the pandemic.

“They have gone more to the ERTE, have a higher rate of inactivity and concentrate more part-time,” has detailed the political scientist of the CJE.

The crisis has also hit the population that only has primary education the hardest, due to their job insecurity. In this group, emancipation has fallen 2.3 percentage points, to 23%, between January and June 2020. Immigrants are the next most affected. 34.6% live independently, 3.4 points less than in 2019.

On the other hand, Joffre López, author of the study, sociologist and professor at the Autonomous University of Barcelona, ​​has highlighted the ironic situation that has occurred this year, in which there has been a reduction in the price of the real estate market that has not been taken advantage of .

“For young people, even though prices have dropped, the chances of emancipation are even lower than last year.”

In this way, in rent the prices start from 900 euros on average, an average mortgage from 600 euros and a shared flat from 269 euros. But with an average salary of 973 euros among young Spaniards, the rent would represent 93% of their net salary, “above the reasonable 30% [established by various organizations]” , López pointed out.

A mortgage would be 56% and share 27.7%. In the case of the mortgage, in addition, the entry and taxes should be added, “the equivalent of three full years of salary.”

Compared with previous years, emancipation reached minimums in 1997 —with 15% – and maximums of 26% in 2008.

Since then, the figure has decreased until this year, when the decline has been accentuated by the health situation , which has led to the deepest drop in emancipation since 1988 (1.3 points less from 18.7% in 2019).

By Communities, the Basque Country is the region where more young people have returned to live with their parents in the first half of the year (three points less in the emancipation rate), followed by Extremadura (2.5 points less) and Asturias (2, 1 point less).

Clarks the decline of the creator of the pisamierdas

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Clarks, the iconic British shoe brand , may have its days numbered as a family business. After staying at the helm for 195 years, the Clarks, who own 84.8% of the company, are ready to hand over control to LionRock Capital, a Hong Kong-based venture capital fund.

Its managers have committed to injecting 100 million pounds (111.7 million euros) to try to float a business that had already been making water before the commercial bump generated by the pandemic.

Founded in 1825 by brothers James and Cyrus Clark in the small town of Street, south-west Britain, the firm has been under the command of a traditional , discreet family line with Quaker roots for almost two centuries .

Despite the international expansion and growth of the company, the Clarks never moved the headquarters and their hometown benefited for years from the shoemaker’s prosperity. At least until 2006, when production was completely delocalized.

Today, its offices are still on the street, but the vast majority of its products come from Vietnam, Cambodia, India and China.

The difficult situation in which the company finds itself has been leaving a trace on the streets of Street.

Among the most recent examples is the robotic-assisted plant the Clarks tried to return to production with on British soil in 2017. It was closed less than two years later for failing to meet targets.

The same fate befell the Shoe Museum last year, where Clarks had been exhibiting relics for 70 years, such as James and Cyrus’ first creation: slippers made from scraps left over from their sheepskin rug business.

But the firm’s challenges are too great to allow for sentimentality. “Clarks is in survival mode,” says Nicholas Found, Senior Analyst for Retail Week, a publication specializing in the UK retail industry. “Their profits before taxes have been falling for five consecutive years .So this problem expands beyond the pandemic,” explains the expert by phone.

The footwear brand had a turnover of 1,469 million pounds (1,640 million euros) last year, which represented an annual fall of 4.6%, according to the Statista portal.

The end result was losses of 83 million pounds (93 million euros), more than double the red numbers of 31 million pounds that they showed from the accounts of the previous year.

The company announced 900 layoffs around the world last May, in addition to another 170 made in December 2019. Although the firm insists that there will be no “immediate” closures of premises and that its employees will continue to receive their salaries , has already opened a consultation period, the first step towards a collective redundancy, with its 4,000 employees in the UK.

For Found, the Clarks case is a good example of the challenges faced by “old-school” British brands, which include the emergence of e-commerce and the dilemma of whether to maintain their traditional stores. Internet sales are gaining ground in the United Kingdom and before the pandemic they accounted for 20% of the total, according to the United Kingdom’s Office for National Statistics.

With the confinement, they reached 32.8% and now they are around 26%. This and the rise of teleworking are accelerating the crisis that the British high street was already experiencing, which between January and August 2020 suffered the destruction of almost 125,000 jobs, according to the Center for Retail Research.

A situation that led another icon, the department store chain Marks & Spencer, to register its first half of losses this year since its IPO in 1926.

“What the covid-19 has done is to test the accounts of results to the point where these historic businesses are fighting for their lives, ”says Found.

One of the main drawbacks, according to the expert, is the excess of establishments, with a surplus of 20%, according to a study by Retail Week and the consulting firm Alvarez & Marsal. Fixed costs such as renting the premises are another heavy burden.

It is not surprising that LionRock Capital has made the signing of an agreement with Clarks creditors to lower the rent of its stores in the United Kingdom and Ireland as a condition of the operation.

The proposal includes that the price is no longer fixed and is calculated according to the billing of each establishment, reducing to zero in 60 of its 320 stores. An “absolute necessity,” Philip de Klerk, the company’s acting chief financial officer, said in a press release.

This company voluntary agreement (CVA), a kind of pre-bankruptcy for creditors, must be approved in December by 75% of them.

Renters are a long way from reaching the 26% needed to block it, according to the British business premises association, the British Property Federation (BPF), which accuses the shoe brand of abusing this legal mechanism.

“The owners are the only creditors that will be affected by the CVA of Clarks, since they represent a small percentage of the vote and cannot influence the result,” lamented in an email Melanie Leech, chief executive of the BPF.

Criticisms also come from the labor sector. Gareth Lowe, regional head of the Unite union, lamented in the publication This is Money that the Clarks received “lavish dividends” of 13.4 million pounds during two years in which the company added losses of 114.2 million. “This calls into question the corporate priorities of the Clarks,” he said.

The firm is confident that the entry of LionRock Capital will serve to “revitalize” the brand and “position it for future sustainable growth in the long term,” it said in a press release.

The Hong Kong fund has stakes in Didi, known as the “Chinese Uber,” Inter Milan and Hailo, another taxi app. According to LionRock Capital founder Daniel Tseung, the investment “will not only strengthen Clarks’ position as one of the world’s most recognized brands, but will also allow expansion into key emerging markets.”

The Clarks, who together with the other shareholders will vote in December for LionRock Capital to be the majority shareholder, will continue to have a stake in the business, although the percentage has not yet been made public.

Currently, the company that created the Wallabees boots and moccasins has 10,000 employees in more than 100 markets, including Spain, where there are 34 stores that, according to the company, will not be affected by the operation.

López Obrador Is In Front Of Biden

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President Andrés Manuel López Obrador must hurry to get on Joe Biden’s train, for his sake, that of his government and that of Mexico.

He will already pay the cost of backing President Donald Trump in his allegations of electoral fraud and his attempts to reverse an election violating the principles of democracy, but that can be maintained on a personal level, but his stubbornness must turn to pragmatism in the face of the announcements that the president-elect is doing in matters of foreign and security policy, and that his collaborators establish contact with those who will be the heads of those sectors to start working.

López Obrador does not need to congratulate Biden, but rather act intelligently because the first appointments have policies antagonistic to his.

The most confrontational issue will be energy. During the Trump administration, frictions were continuous with the US private sector due to the change of rules, but the indifference of the head of the White House and the lack of energy of Ambassador Christopher Landau to defend the interests of the energy sector of his country before the violations, will change in the Biden Administration.

The next Secretary of State will be Antohny Blinken, very close to him for 30 years, and with extensive experience in foreign policy issues.

Blinken will have among its missions that the United States returns to the Paris Climate Change Agreement, which seeks to promote clean energy.

López Obrador is an enemy of them, and has opted for dirty energies. Its entire policy has been focused on the injection of resources for the generation of fossil fuels, even seeking to renovate refineries – such as Cadereyta -, despite environmental pollution studies.

Ignoring the evaluation studies of her in projects such as the Mayan Train, Dos Bocas and the Santa Lucia airport, go against the guidelines outlined by Biden since the campaign. “Either we adjust our policies, or the demands under the trade agreement with the United States, could be continuous,” admitted a Mexican diplomatic source.

The energy issue is transversal in the new Biden team. Avril Hines, who will hold the position of Director of National Intelligence, a key position within the White House because under her supervision are all the intelligence services, civil and military, of the United States government, worked in recent years in energy responsibilities She worked during the Barack Obama administration as deputy director of the CIA and deputy director of the National Security Council.

The Obama White House was particularly tough on Peña Nieto for his rapprochement with China, and intervened so that the Bullet Train between Mexico City and Querétaro was frustrated by the financing of Beijing.

The government abandoned other plans for heavy Chinese investment at Cabo Pulmo in the Sea of ​​Cortez and at the Dragon Mart in Cancun.

When Peña Nieto invited Trump during the 2016 presidential campaign, the then head of the National Security Council, Susan Rice, demanded from former Foreign Minister Claudia Ruiz Massieu, during a G-20 meeting in Asia, that there had to be consequences for that affront to the Democrats.

Upon returning, Peña Nieto dismissed Luis Videgaray, the Secretary of the Treasury who promoted the meeting. Currently, although Foreign Minister Marcelo Ebrard worked on the relationship with Trump like Videgaray, it was López Obrador who showed his dedication to the head of the White House, accepting his impositions.

A measure that López Obrador did to satisfy Trump, will be reversed in the first 100 days of Biden’s government, the Migrant Protection Protocols, when sovereignty was ceded to accept that Central Americans seeking asylum in the United States would wait in Mexican territory the process of your request, through a memorandum with the Trump administration, signed by Alejandro Celorio, the legal consultant of the Foreign Ministry.

The person responsible for dismantling that infamous agreement will be the new Secretary of Territorial Security, Alejandro Mayorkas, a Cuban-American who, as a federal prosecutor in California, took the cases against the so-called Mexican Mafia, which operated from prisons, and was director of Migration.

In the Obama administration, whose work on behalf of the human rights of immigrants was widely recognized. Mayorkas, on the other hand, has had a godmother for 20 years, California Senator Dianne Feinstein, who since the Obama administration defended arbitrariness in Mexico against the Sempra company, whose subsidiary Ienova was painted by López Obrador and the director of the CFE , Manuel Bartlett, as the enemy of the Nation.

On the issue of security, what will probably change radically is the architecture of bilateral cooperation, which was managed through the High Level Group between the two countries, where Ambassador Landau sat in front of six secretaries, at a table chaired by the Secretary of Defense, General Luis Cresencio Sandoval.

It was deficient, and today it can be described as failure due to the mutual loss of credibility. The rebuilding of trust will be very uphill, because the release of General Salvador Cienfuegos was for political reasons, given the recent criticism of the new intelligence director, Haines, of Trump’s politicization of justice.

The networks of ties of the next officials do not look good for López Obrador, who says he knows Biden, when in reality, the then vice president met him in Mexico when in the 2016 presidential campaign, he came to palomear the candidates.

However, the bilateral relationship is very important for the United States, which will help López Obrador to qualify his disdain for Biden, if he hurries the reconstruction of the relationship with the Democrats, discreetly if he wants, but effectively, and gives the green light to officially have your diplomats come up and work with the president-elect team.

Santander Offers Early Retirement From 55 Years

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Banco Santander has proposed this Thursday to the unions that employees can take advantage of early retirement from the age of 55 in the framework of the negotiation of the Employment Regulation File (ERE) that it prepares.

The entity plans to eliminate 5,072 jobs, through some 4,000 early retirements and 1,000 relocations, according to the unions, which qualify these figures as “inadmissible” and demand to reduce them. They also want to lower the 900 planned office closures before talking about the specific economic conditions that the bank has presented to them.

The unions, who will meet with the bank again on December 1, believe that the proposed adjustment is disproportionate and the conditions “totally insufficient to cover this file with real voluntary will.”

The workers ‘representatives, led by the Workers’ Commissions (CC OO) as the majority union, affirm that if Santander has little budget to pay those it wants to fire, “what it must do is reduce the number of casualties from this ERE ”, They indicate in CC OO.

According to the entity’s proposal, employees who take early retirement would have to have been at the bank for at least 15 years.

By age groups, from youngest to oldest, those aged 55 to 57 would receive 65% of the pensionable salary (with a discount of the unemployment amount for two years) and a special agreement up to 63 years of age, with a maximum revaluation of 1% .

Employees between 58 and 61 years of age would receive 70% of the pensionable salary (discounted from the unemployment amount for two years) plus the same special agreement until age 63.

For those over 62 years of age, the entity offers 20 days per year worked, with a ceiling of 12 monthly payments.

Likewise, those over 55 who do not reach the required minimum seniority of 15 years would receive 30 days of pensionable salary with a limit of 20 monthly payments, plus volunteer bonuses, seniority and a special agreement with a maximum revaluation of 1% up to 63 years .

Those under 55 years of age are offered incentive leave of 30 days of pensionable salary, with a limit of 20 monthly payments plus voluntary bonuses.

From the UGT they demand “real voluntariness within the process, quotas by age, province and a maximum percentage of denials of voluntary adhesions”.

They also consider that priority of permanence in the bank should be given to the groups established by the bank and that there is “equalization of the handicaps of children and employees so that both are equal to or greater than 33% and extend it to spouses with serious illness or handicap ”.

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