🛍️ Bricks and barter

Another big oil deal | Brighter times for alternative assets | [Finimize](   TOGETHER WITH   Hi {NAME}, here's what you need to know for December 12th in 3:11 minutes.   🎬 That’s a wrap! If you couldn’t get enough of our two-day summit, don’t fear: there’s more to come. Join our recap event next week, featuring [Gargi Pal Chaudhuru](, head of iShares Investment Strategy Americas at BlackRock, and Mrs. Dow Jones, zillennial finance expert. It’s happening [on Tuesday, December 12th](. Today's big stories - Macy’s is attracting a different kind of bargain shopper: the kind that wants to buy the whole firm - Things could soon be brighter for alternative assets – [Read Now]( - Occidental Petroleum’s got the checkbook out again, snapping up privately owned CrownRock for $12 billion Miracle on 34th Street [Miracle on 34th Street] What’s going on here? Shopping mall and Thanksgiving Day parade mainstay [Macy’s]( is browsing the details of a $6 billion buyout offer, according to news out Monday. What does this mean? With consumers increasingly favoring clicks over bricks, department stores like Macy’s and its more-upscale sister Bloomingdale’s are left with just their perfumed entrances and a waft of nostalgia to entice shoppers through the door. But private investors aren’t known for their sentimentality, so there must be something else that’s pulled Arkhouse Management and Brigade Capital to put an offer on the table. That something might be the fact that Macy’s owns a lot of its bricks and mortar – and those real estate holdings alone are rumored to be worth almost [$6 billion](. Arkhouse is a real estate specialist firm, after all, and sees the world in price-per-square-feet. Why should I care? For markets: Inspect the stitching. Bolt the heavy glass doors on retailers and it’s easy to figure out what they’re worth. Add up all the assets – the New York flagship Herald Square, all the other stores, unsold merchandise, and any cash in the bank. Then subtract what’s owed – debt and unpaid bills. Do that with Macy’s and you get just $4 billion – considerably less than what’s on offer. So, these private equity bidders clearly see some other opportunity riding Macy’s old wooden escalator: a more profitable retail future or some new kind of magic on 34th Street. The bigger picture: Shop away the blues. Shopping was Carrie Bradshaw’s cardio, and plenty of US consumers seem to be keeping fit that way. Ecommerce accounts for just [15%]( of what they buy. That percentage, though, has been trending upward, suggesting there could be far tougher days ahead for physical stores. Then again, maybe not. With younger generations spending so much time on their phones doomscrolling, maybe there’s a future for good, old-fashioned, in-person retail therapy. You might also like: [The zombie (company) apocalypse is coming](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Miracle on 34th Street&utm_campaign=daily-global-12-12-2023&utm_source=email) Analyst Take It’s Been A Dark Time For Alternative Assets. That May Soon Change [It’s Been A Dark Time For Alternative Assets. That May Soon Change]( Alternative assets can offer valuable [diversification benefits]( when stock markets are volatile. But, as we’ve seen lately, it doesn’t always work out that way. Stocks have stumbled for much of the past two years, but alternatives like private equity, infrastructure, and renewable energy have been [a letdown]( too. That might be about to [change](. From our partners at ii: [why things might soon become brighter for alternative assets](. [Read or listen to the Insight here]( SPONSORED BY INVESTALERT.AI Your unbiased, pro investing sidekick Sometimes you just want a second opinion on your investment decisions. Ideally, one from a pro. And while we can’t get Warren Buffett on speed dial, [InvestAlert’](s Portfolio Copilot can tighten up your investment strategy with the help of cutting-edge AI technology and industry expertise. That means you can [get an unbiased second opinion on your investments]( in seconds, based on comprehensive and reliable analysis. Plus, InvestAlert’s platform can [evaluate your portfolio in an instant](, providing unique insights about how you could optimize your holdings. [Better yet, you can try out a demo today, completely free of charge](. See Terms and Conditions at [investalert.ai]( [Find Out More]( When you support our sponsors, you support us. Thanks for that. Oxy Seeks The Crown(Rock) [Oxy Seeks The Crown(Rock)] What’s going on here? Occidental Petroleum, a favorite of Warren Buffett’s, continued big oil’s big spending spree on [Monday](. What does this mean? Santa’s busy right now, so he might have to send an elf to deliver a stack of billion-dollar-bills to CrownRock’s owners. Mind you, they probably won’t mind if it’s not the big man himself delivering the parcel. After all, $12 billion – between three and four times the company’s [sales]( – is a pretty special present, especially in light of oil’s recent price decline. But CrownRock’s on the nice list: it’s got a growing production of crude from one of the most attractive oil wells – the Permian Basin. Why should I care? Zooming in: Well wishing. This time of year is pricey for everyone, but Occidental (OXY, to its trader pals) has only just put its finances back in order, after spending $55 billion on a poorly timed acquisition of Anadarko, right before the pandemic. So this deal, which will add another $9 billion in debt, will raise some eyebrows, especially with interest rates this high. Oxy’s not worried: it says the deal will add $1 billion to its cash flow, assuming that crude sticks above $70. Problem is, that’s a big assumption: it’s not far from that now. And Occidental could lose money here if it goes lower. The bigger picture: Bigger fish. Oil companies have tended to use the money they make from higher-than-normal energy prices to explore and extract as much oil as possible. But if predictions are right and the world continues to swap fossil fuels for greener alternatives, then flooding a declining market with even more oil is probably a bad idea. Occidental, Exxon, and Chevron all sense a shifting wind: instead of drilling more wells, they’re snapping up smaller players – and looking to ultimately command a bigger share of what might be a smaller market. The Assets That Are Beating Inflation, And The Ones Falling Short You might also like: [The assets that are beating inflation, and the ones falling short](. Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Oxy Seeks The Crown(Rock)&utm_campaign=daily-global-12-12-2023&utm_source=email) SPONSORED BY AJ BELL MONEY MATTERS The UK has a serious issue The UK gender investment gap is £1.65 trillion. Yup, trillion. That means on average women end up with smaller savings, pensions, and investments than men – and no excuses: a major reason is because they’re held back and paid less. AJ Bell is on a mission to change that. [The Money Matters campaign]( offers a range of educational material including free events, podcasts, and articles focused on female finance. And crucially, AJ Bell researched the major issues that are keeping women from building their own wealth fairly. After all, it’s hard to solve problems if you don’t know where the problems are. Let’s educate ourselves and right the wrong: [dig in with the free report today](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. 💬 Quote of the day "Reality is nothing but a collective hunch." – Lily Tomlin (an American actress and comedian) [Tweet this]( 🎯 On Our Radar 1. "Hey, I'm drinking 'ere." Now you relax like [you're a Sopranos character](. 2. As good as (white) gold. The global energy revolution needs lithium – and [this company]( could plug the gap.* 3. Spit is flying everywhere. 23andMe keeps [spilling data](. 4. Crypto can be the Wild West of the finance world. Here's how to [spot the next big (legit) crypto project](.* 5. Avocados and a mortgage. Millennials say they [need half a million each](. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Coming Up Soon... All events in UK time. 🗻 [Beyond the Summit: A Recap of Modern Investor Trends:]( 5pm, December 12th 🤖 [The AI Advantage: Enhancing Portfolio Protection Strategies:]( 5pm December 14th ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} 😉 We’d love to hear your thoughts. [Give feedback]( Want to advertise with us too? 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