U.K. Exports to the EU return to Pre-Brexit levels
For the second month in a row U.K. exports into the European Union rose above pre-Brexit levels. Just six months after the sides severed ties with several key trade issues remaining, exports rose to £14.3bn with imports running at £19.1bn in June.
Trade flows have grown by double digits compared to a year ago, while this appears to be driven by a recovery from the effects of Covid-19, it does show that the two sides are finding a way to restore the flow of goods despite the impact Brexit has had.
The FTSE 100 closed down 0.37% today, while the DAX was up 0.70% and the Euro Stoxx 50 rose 0.48%.
Reebok sold for $2.5bn
Adidas has sold the Reebok brand of shoes to Authentic Brand for $2.5bn in a mostly cash deal. Authentic is the parent of Brooks Brothers, Forever 21, Eddie Bauer and other fashion brands.
For Adidas this is a move away from a struggling sub-brand to focus on its core business while Authentic sees value in Reebok’s history and brand recognition. Going forward Authentic intends to focus on a return to Reebok’s innovation in the space as well as improving the struggling brands brick and mortar presence.
Adidas had struggled in its attempt to revive Reebok to its former glory for more than a decade. The market has reacted well to the announcement with Adidas shares rising by 2.5% in Frankfurt to €314.70.
Still the divestiture is a sting to Adidas and an admission of failure given the $3.8bn purchase price paid back in 2006 for Reebok.
Authentic Brands has now acquired more than 30 major brand names including assets out of bankruptcy such as Barneys New York and Brooks Brothers. The company has recently filed for an IPO and is expected to continue to add to its portfolio of brands.
Gates pledges $1.5bn to fight climate change
The Microsoft co-founder made a pledge that his climate fund will support joint projects with the U.S. Federal Government to combat climate change. The funding however would eb dependent on Congress passing a bipartisan plan to fund clean energy technology.
The Senate’s $1.2 trillion infrastructure bill still needs to pass House as it includes $25bn of funding for clean energy projects that Gates fund would co-invest with.
Gates and his ex-wife Melinda French Gates have been highly active in the space while Jeff Bezos’ ex-wife Mackenzie Scott has been the most active philanthropist in recent months having given away $8.6bn since her divorce from Bezos.
Other billionaires such as Larry Ellison, Richard Branson and Warren Buffet have also been making major donations through their respective foundations.
Quote of the day – “More than 99% of my wealth will go to philanthropy during my lifetime or at death. Measured by dollars, this commitment is large. In a comparative sense, though, many individuals give more to others every day.”Warren Buffet