American Apparel used to be an icon, but went down in 2016 for three main reasons. First reason is its reliance on US manufacturing (its promise), that led to the lack of blue collar workers, then the brand needed to hire illegal employees and get published after that. Secondly, the rising price of cotton led to mounting losses, along with the company effort of opening as many stores as possible in every capital city. Finally, American Apparel did not have the appropriate strategy to deal with all financial challenges. It changed its CFO 4 times in a year and withheld from Deloitee and committed to bad practices in financial reporting.
Goldman Sachs, after trailing behind his peer last 2019 quarter, how it plans to “use” its balance sheet. The company will look into wealth management for small customers, whose assets ranges from $1 million to $15 million. Also, it is looking for more wealth-management opportunities in China, with support from president Xi Jinping to boost its stake in the joint-venture investment bank. Besides, the new strategy includes the movement from reliance in private equity to wealth management due to regulatory scrutiny associated with this kind of investment.
- #newsingeneral 5 things you need to start your day (Bloomberg)
- Oil price is expected to strike due to supply reduction: Libya commander stopped export in his port and Iraq temporarily stopped work on an oil field
- A slump in UK’s December retail sales presage a rate cut on Jan 30, which will boote the exchange rate of sterling
- Major politicians and more than 119 billionaires will gather in WEF 2019, 21-24 Devos.
- Asian stocks gain modest gains as investor continue to bid up prices, the offshore yuan extended it gains, to the strongest after July 2020
- There is a lull in European earnings this week, but it wont last long
Huy Luu's business blog 
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