Neiman Marcus is being sold for $6 billion and a new Van Gogh painting has been found.
Neiman Marcus to be sold for $6 billion
The Wall Street Journal is reporting that Neiman Marcus is in the final stages of negotiation for a sale to Ares Management LLC and the Canada Pension Plan. The sale would shift ownership from one private equity group to another. The sale of the luxury retailer for $6 billion would be considered a decent return for the existing owners, TPG and Warburg Pincus LLC, who purchased Neiman Marcus in 2005 for $4.9 billion. The company reported $4.5 billion in sales for the 12 months ended in April, slightly below the $4.6 billion reported in 2008.
Fewer households paying no federal income tax
The Tax Policy Center says the number of households that pay no income tax has dropped from 47 percent down to 43 percent due to the improving economy and the expiration of tax cuts enacted during the Great Recession. CNBC reports that the Tax Policy Center predicts that by 2024 only one-third of households won’t be paying any federal income tax. Currently the 43 percent includes people who are working and paying payroll taxes (29 percent) but ultimately don’t pay federal income tax. Ten percent are elderly and 3 percent are making less than $20,000 per year. One percent are subject to other circumstances.
World Trade Organization cuts world trade forecast
Reuters reports that world trade is expected to grow by 2.5 percent in 2013 and by 4.5 percent in 2014. The estimates have been revised downward from 3.3 percent in 2013 and 5 percent in 2014. The primary reason for the decline is due to the slow recovery of the European Union.
Jobless holding out for the right job
Friday’s jobs numbers were below expectations, despite reducing the unemployment rate from 7.4 percent to 7.3 percent. But a key number in the report showed that 312,000 people dropped out of the labor force because they don’t have a job or have given up looking. CNBC reports that a new survey from online placement firm Beyond.com indicates that most of the unemployed are “disappointed with the jobs available and are waiting for the right one to come along.” Sixty percent of job seekers indicated that the HR departments are responsible for their inability to find a job. They are confident they could sell themselves should they get to the decision-makers.
Google seeks to avoid $5 billion EU fine
Google has offered further concessions aimed at ending a 3-year investigation into complaints it was blocking competitors in order to avoid a $5 billion fine from the European Commission. The European Commission is the antitrust regulator for the European Union. Google has received a proposal from Google and is currently reviewing it. At the same time, lobbying group FairSearch, which includes companies such as Microsoft and Expedia, is asking for input into the proposal as well. Google currently has 80 percent market share in Europe’s internet search market.
New Van Gogh painting identified
The Van Gogh Museum says it has identified a long-lost Vincent Van Gogh painting that spent years in a Norwegian attic and was believed to be by another painter. It is the first full-size painting by Van Gogh to have been discovered since 1928. According to USA Today, “Sunset at Montmajour” depicts trees, bushes and sky, painted with Van Gogh’s familiar thick brush strokes. It was painted on July 4, 1888. The museum had originally rejected the paintings' authenticity in the 1990s, however, new research techniques and a two-year investigation changed the perceptions of the authenticators.
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.