Private-equity firm Blackstone to acquire majority stake in Spanx, create all-female board
Blackstone Inc. undefined said Wednesday it has agreed to acquire a majority stake in Spanx Inc., the womenswear brand founded by Sara Blakely in 2000, in a deal that values the brand at $1.2 billion. Blakely will retain a "significant equity stake" in the company, and will continue to oversee daily operations and become executive chairwoman once the deal closes. The deal "will enable SPANX to accelerate its already rapid digital transformation and strong online presence in the e-commerce channel, expand its global footprint, and fuel its commitment to creating innovative, ground-breaking products for its customers across even more categories," the companies said in a joint statement. The companies are planning to create an all-female board for the company. Blakely started the company by inventing the first Spanx undergarment in her own apartment, at a time when she was earning a living selling fax machines door to door. Blackstone shares were slightly higher Wednesday and have gained 96% in the year to date, while the S&P 500 undefined has gained 21%.
Businesses say labor shortage is hurting sales, expansion and the U.S. economy
Small-business owner Christine Lantinen says she has 200 employees and needs 100 more --- but she can't find them. "My business faces a dire shortage of workers."
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Markets
10-year Treasury yield holds at five-month high following 20-year auction and Beige Book
The 10-year rate held at levels not seen since May after Wednesday's 20-year Treasury auction garnered premium yield and the Fed's Beige Book report was released.
Investing
Citizens net income up 69% as ROTCE rises
Citizens Financial Group Inc. said Wednesday its third-quarter net income rose to $530 million, or $1.18 a share, from $314 million, or 68 cents a share, in the year-ago quarter. Adjusted earnings rose to $1.22 a share from 73 cents a share. Revenue fell to $1.66 billion from $1.75 billion. Analysts expected the regional bank to earn $1.16 a share on revenue of $1.64 billion, according to data from FactSet. The company's adjusted return on total capital employed rose to 14.2% from 9% -- a measure that's been a focus of CEO Bruce Van Saun. Shares of Citizens are up 3.4%. Prior to Wednesday's gains, the shares had gained 37.3% so far this year, compared to an increase of 41.8% by the KBW Nasdaq Bank Index .
Oil futures finish higher after an unexpected weekly fall in U.S. crude inventories
Oil futures settled higher on Wednesday after the Energy Information Administration reported a weekly decline of 400,000 barrels in U.S. crude inventories, defying some expectations for a weekly climb. The crude market is coming out of an "overbought situation" and may see prices consolidate, before grinding higher, said Tariq Zahir, managing member at Tyche Capital Advisors. He also said he wouldn't be surprised to see the Biden administration try and pressure the Organization of the Petroleum Exporting Countries to produce more oil or see renewed talk of a release of oil from the Strategic Petroleum Reserve, amid efforts to "try and halt the recent upward movement in crude prices." On its expiration day, West Texas Intermediate crude for November delivery rose 91 cents, or 1.1%, to end at $83.87 a barrel on the New York Mercantile Exchange, the highest finish for a front-month contract since Oct. 13, 2014, according to FactSet data. December WTI crude , now the front-month contract, added 98 cents, or 1.2%, to settle at $83.42.
Economy & Politics
U.S. economy could come to a “screeching halt,” small business owner warns Congress
The U.S. economy could come to a "screeching halt," a small business owner warned Congress, if labor shortages and supply-chain disruptions aren't fixed quickly.
Real Estate
New-home construction subsides as supply-chain and labor problems persist
U.S. home builders started construction on homes at a seasonally-adjusted annual rate of 1.56 million in September, representing a 1.6% decrease from the previous month, the U.S. Census Bureau reported Tuesday. Compared with September 2020, housing starts were up 7.4%. The pace of permitting for new housing units also dropped in September. Permitting for new homes occurred at a seasonally-adjusted annual rate of 1.59 million, down 7.7% from August, in line with the rate of permitting from a year ago. Economists polled by MarketWatch had expected housing starts to occur at a pace of 1.61 million and building permits to come in at a pace of 1.67 million. The drop in permits was driven mainly by a decrease in multifamily housing units, though fewer single-family homes were permitted as well. New construction on multifamily buildings also decreased in September, though single-family starts remained flat.
