Sears to win a reprieve from liquidation as Chairman Lampert makes a bid of $4.4 billion on the bankrupt company

Friday was the deadline for all the prospective buyers to put an offer in the market so that they are able to buy the bankrupt company.

Sears which has been bankrupt for quite a long time has finally received a bid of $4.4 billion. Sears is owned by Kmart and has been bankrupt since the month of October. Finally, other companies have come out with the proposal of purchasing this company.

Sears which is a 123-year-old company has a total of 68,000 employees when it went bankrupt. Sears which is basically a department store chain has finally won a reprieve from being liquidated this Friday after a bid of $4.4 billion was made by its chairman Eddie Lambert. Eddie Lampert is now trying to buy the retail chain and keep it alive in the market.

It is expected that keeping the business alive will not be an easy task because it has already been bankrupt, but there are people in the market who are willing to give it a try to make the company get back on its feet. Lampert has a hedge fund called the ESL Investments, which helped to process the whole deal.

ESL Investments was the one who placed the bid to the parent company Kmart with a letter which announced the formal submission date. According to CNBC, the offer which came and accepted was on deadline and was received sharply at 4 p.m.

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According to the offer which was submitted by Lampert on Friday was through the ESL Investments affiliate called Transform Holdco which has a total 435 of Sears stores. To fund the bid completely, a total of $1.3 billion was made by ESL Investment. The bid, which was offered had offer employment to up to 50,000 associates.

It will be totally up to the company taking over on how the whole operation will be conducted and how many people will be able to keep their jobs. A lot of people are very much happy because this was the only way to save the company.

Lampert has been looking for an opportunity of investment in the retail chain industry for quite a long period of time and this is why it was a perfect opportunity for them to grab this deal at a short notice and bid against the other competitors.

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China’s Industrial profits drops after almost 3 years

According to the report, the industrial profit of China dropped about 1.8 percent this year from 3.6 percent last year.

This is the first time in 3 years that China has seen a drop. The reason for the decline was the slow sales and increased prices for the producer. According to the report, from the month of January till the month of November, there has been a steady increase of 11.8 percent and finally, in the month of December, China has seen the drop of industrial profits.

This is the first time that the earning growth of the industrial firms in China has to face some kind of slackening or demand. This has highlighted the risk in the world’s second largest economy in the world. According to the data, points which are gloomy in nature, there has been a huge loss in the economic momentum which is basically a trade dispute with the country of the United States of America. This has piled up all the pressure on the manufacturing sector of China as a firm. It is expected that China will face a tough time in the coming year and they will not be able to go ahead with any of their investment plans.

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According to China, their Industrial profits went down around 1.8% in the month of November as compared to the year 2018, which was able to do a business of $594.8 billion Yuan. The National Bureau of Statistics, also known as NBS has come out and announced that the economy if China is getting affected because of this. There has been a growth in the industry for the last 11 months and finally, it was able to see a loss after a long time.

The sales numbers have already been received and it is totally up to the government of China to decide how to make a difference with the help of the sales data and how they will be able to tackle the situation.

According to the expert economist, the sales numbers in China will be decreasing day by day and this has become a huge concern for China now. The people of China who are somehow involved with this business are really worried about this problem.

China will soon not be able to balance with the momentum of the industry and all the businesses will suffer hugely.

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Elon Musk states Tesla to pay customers for missed tax credits

Tesla Inc. also was known as TSLA.O which is head by chief executing officer Elon Musk announced that the electric car company will reimburse all its customers if there is a delay in the car deliveries and they miss out on a significant amount of the tax credit.

Under the tax overhaul which was passed last year by the Republican-controlled United States that all the tax credits will be lower on the cost of all the electronic vehicles which are basically available for the first 200,000 vehicles and is sold by any company.

The tax credit is expected to fade out by 50 percent every six months until the whole idea phases out. According to an announcement of Tesla, all the car orders which are placed before the 15th of October would be eligible for a cash refund of $7,500 and it was also announced that all the customers will get their car delivered by the end of 2018.

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Tesla was unable to live up to its promise and all the cars were not ready before the end of the year. From the 1st of January, the tax refunds will go down to $3,750 and Tesla has come out and announced that they will make sure that the customers get a full refund of $7,500 even when the tax refunds are decreased from the new year.

Only a few days are left for the next year to come and a lot of customers are complaining that they did not receive their car till now and they will not be able to enjoy the tax benefits. A lot of people are also complaining about their social media page that they had not expected such service from Tesla Motors.

Elon Musk has come out and announced that all the customers who have ordered their car before 15th October will get their tax benefits from the company and they will be able to enjoy the benefit even if the car is delivered to them in 2019.

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This announcement from Tesla has made a lot of customers very happy because Tesla has really thought about their customers now. According to Elon Musk, Tesla is working really hard to make sure that the cars are delivered to the customers on time. Elon Musk also twitted that Tesla will be happy to cover the tax credit difference on cars ordered before 15th October.

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Wealthfront, world’s best robo-advisor, just settled with regulators over fraud charges

Two of the robo advisers were the first people to face the enforcement action from the Exchange Commission and Securities this Friday.

The SEC finally came with a settlement plan with Wealthfront and Hedgeable. The end of the settlement group was fined of a total amount of $300,000. Wealthfront is known for managing more than $11 billion of the clients’ money and after all these, Hedgeable will be discontinuing its investment management platform this summer to avoid all the heat.

The SEC, also known as the Securities and Exchange Commission has become the first to work against robo advisers and form a settlement this Friday with two companies on charges of fraud.

The Securities and Exchange Commission had a settlement deal of $250,000 with Wealthfront and a deal of $80,000 with Hedgeable. Both the companies which were fined by Securities and Exchange Commission was known for providing automated investing service for helping out their clients. Both the companies were charged for violating different rules on antifraud, compliance, and advertising.

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Robo advisers have become very much popular in the past few years and this is why, all the regulatory bodies kept a very close eye on them. As soon as they broke some of the laws, they were charged with a hefty fine.

According to Securities and Exchange Commission, the fine was needed for both the companies because if they failed to take a big step in the initial days then these two companies can end up creating a big fraud.

In the year 2017, the Securities and Exchange Commission made sure to issue robo adviser related guidelines for all the investors in this company so that they fall under the effective compliance program.

Technology is something that is changing very rapidly in the global market. With the growth in technology, people are also getting very much interested to invest their money. With the change in technology in the global market, all the investment advisers are also changing the way they deal with the clients and this made them change their course of action.

During this change, all the companies have not followed the guidelines and this is why they had to pay such a big amount of fine. The fine was charged to make the other companies aware that are not following the guidelines will end up in a big fine.

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Ukraine securities to get IMF funding in between Russian tensions

In the 2019 fiscal budget, it was convinced that IMF should resume their aid toward Ukraine.

The commitment of $3.9 billion will need a lot of boost from the country so that it is able to face the aggression from Russia which is escalating day by day. On 18th of December 2018, the tension with Russia on the presidential election, Ukraine was able to secure a funding commitment of $3.9 billion from IMF which stands for the International Monetary Fund.

This assurance from IMF will help Ukraine maintain its stability in their nation. Ukraine is facing a very challenging situation now so this was a perfect way to make everything smooth in the nation. This news was tweeted by President Petro Poroshenko and according to the news, the first sum of money that the country will be receiving is $1.4 billion on the 25th of December 2018. The next payments will be processed after a 14-month period on approval. This loan was approved by the IMF on the fiscal budget of 2019.

The World Bank has also come out and announced that they will be helping Ukraine with a $750 million loan so that the country is able to successfully fight against corruption and also can utilize the money toward agriculture, health care, and utility subsidies.

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Last year IMF had to freeze a $17.5 billion aid package to Ukraine because of the country’s lack of process implementing reforms. Ukraine has worked really hard on this deal so that it is successfully able to grab the funding.

Ukraine is now fighting really hard to stop corruption in the country because corruption is the only thing that is stopping them from achieving their goal as a country.

Ukraine has been struggling for quite some time and this is the reason why the IMF and the World Bank is trying to loan money to the country so that the stability of the country can be maintained.

Ukraine is facing a lot of heat from Russia after Ukraine publicly accused Russia of implementing a blockage in the economy. In March 2019, Ukraine will be electing their next president and this is why the President of Ukraine is working really hard to keep the country stable so that the election could be conducted peacefully. Petro Poroshenko is looking to win the next election and be in power.

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Credit Suisse warns ultra-wealthy clients to shift assets out of the UK

According to the FT report, which was posted on last Tuesday, all the people who are ultra wealthy and have a high net worth are advised to move their assets from the United Kingdom to some other country.

The vote of the Brexit plan is still going to be held on the 14th of January 2019 and the vote is still pending. The wealth manager of Swiss bank called Credit Suisse has advised that all the clients who have a high net worth of more than $30 million are expected to move their assets from the United Kingdom.

It is advised to accelerate their plans to move their assets outside the United Kingdom before the month of May where the vote of the Parliament will occur. Theresa is holding on to her vote on the Brexit deal till January. The opposition leader of British Jeremy Corbyn has come up with a no-confidence motion in May saying that it is totally unacceptable for the Parliament to wait one more month to vote on the Brexit deal.

United Kingdom lawmaker has initially scheduled to have their say on the withdrawal from the European Union last week, but the Prime Minister delayed the vote because of their election.

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All these delays have finally led to a lot of uncertainty around Brexit. The market and the investors are not really fond of the situation right now. All the multimillionaires are now trying hard to move their assets from one country to another because, after the Brexit deal, a lot of things will be changing in the United Kingdom.

All the millionaires are rushing to Swiss Bank in Switzerland to successfully open another bank account there. Everyone in United Kingdom is scared of what is going to happen after the deal is completed and the United Kingdom is not under the guidelines of European Union. Not all the millionaire is agreeing to leave the United Kingdom. There are people who are sure that once United kingdom gets out of the European Union, there will be a lot of good changes in the administration.

Not everyone is scared and moving their assets outside United Kingdom. According to banks of United Kingdom, people should not have to be scared about their money. Most of the people are running away with the money and this is why United Kingdom is suffering a huge cash shortage.

The economy of the United Kingdom is also going to suffer a big dent because of the Brexit deal which is not being completed till now. A lot of industries are suffering because of the Brexit deal and there is a shortage of money everywhere.

Also Read: Malaysia to file criminal charges in court against Goldman Sachs

Credit Suisse is having a hold on the house view and according to her, the clients should definitely move their money out of United Kingdom and this is total because of the chances of falling off the Brexit deal.

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Malaysia to file criminal charges in court against Goldman Sachs

According to reports, Goldman Sachs in under strict surveillance in at least six different countries for its presence in the scandal of 1 Malaysia Development Bhd state fund.

Malaysia has finally decided to go ahead with charging criminal charges against Goldman Sachs and two of its employees in their connection to the corruption and money laundering probe at the 1 Malaysia Development Bhd. Goldman Sachs, which is basically a United States of America based investment bank has been facing a lot of scrutiny because successfully raised up to $6.5 billion in three bond offerings for the 1 Malaysia Development Bhd. It is currently under strict investigations in a few of the countries because of this bond offering.

Tommy Thomas, who is basically Malaysia’s Attorney General gave a statement on 17th of December stating all the charges against Goldman Sachs has already been filed. Charges are also being filed against the subsidiaries of Goldman Sachs. Charges also include filing against Tim Leissner, Jasmine Loo Ai Swan, and Low Taek Jho, who were former employees of the 1 Malaysia Development Bhd. A Goldman Sachs employee Roger Ng Chong Hwa is also charged by Malaysia.

The charges which are filed are all because of false and misleading statements given by company to dishonestly use $2.7 billion with help of these three bonds issued. Goldman Sachs has come out and said that they have done nothing wrong and they have denied all the allegations against them.

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Goldman Sachs has mentioned in an email that all the charges filed by Malaysia are all misdirected and they will be happy to cooperate with the investigations which will be done by all the authorities.

According to reports, Goldman Sachs has successfully able to pocket $600 million from the three bonds they had with 1 Malaysia Development Bhd. According to Thomas, the fees are often higher compared to the market rates. Leissner and NG have also said that they have received a higher amount of bonuses and it had nothing to do with the bond.

According to Thomas, these allegations, which are put by Malaysia are all violation of their securities law and Malaysia will have to end up paying for all the criminal fines. Malaysia is looking for jail terms up to 10 years on each of the people who are involved in this case.

Leissner, the former chairman of Goldman Sachs of South East Asia and NG the managing director of Goldman Sachs, are serving for criminal charges because of the 1 Malaysia Development Bhd case in the United States. These charges have now converted into a total scandal that has shocked the whole industry of investment banks.

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According to authorities of the United States, a total of $2.7 billion has been embezzled from the state fund by Goldman Sachs and the money was used to buy houses and private jets and also finance films like Wolf of Wall Street.

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