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Union, Deere reach tentative deal to end strike

Charlie Neibergall/Associated Press


Union, Deere reach tentative deal to end strike

A tentative deal struck between Deere & Co. and the United Auto Workers union offers substantial improvements over one that workers rejected before going on strike, including larger wage increases, no new tiers to retirement benefits, and a signing bonus of $8,500. The deal, which is subject to approval by union membership, suggests that John Deere backed down rather than get drawn into a protracted work stoppage with farm equipment demand at the strongest in a decade and earnings at a record. The contract includes wage hikes of 10 percent in the first year of the contract and 5 percent in the third and fifth years, according to a published document of the deal on the union website Sunday. No one was available at John Deere to comment on the latest accord. Details of the agreement come more than two weeks after some 10,000 John Deere employees went on strike for the first time since 1986, having rejected a prior deal that called for a 5 percent to 6 percent wage increase for the first year. — BLOOMBERG NEWS



PG&E expects to lose $1.5 billion due to Dixie Fire

PG&E Corp., the California utility driven into bankruptcy after its equipment caused deadly wildfires, expects to take a $1.15 billion loss from a massive blaze this year that burned for months in the northern part of the state. The Dixie Fire, which is suspected to have started after a tree fell on a PG&E power line, burned nearly 1 million acres. The company disclosed in a filing Monday that it received a subpoena from the US attorney’s office for the Eastern District of California federal investigators in connection with the blaze. The expected loss and federal probe are the latest blows for embattled PG&E, which emerged from Chapter 11 last year after its power lines started some of the worst fires in California history. Five county district attorneys are also investigating the company’s role in the Dixie Fire. — BLOOMBERG NEWS



Uber Eats not just for food anymore

On Monday, Uber Eats introduced a new delivery category: ‘’Babies and Kids,’’ for parents in need of emergency diapers and thermometers. It is the latest in a series of new verticals launched by Uber during the pandemic, including the delivery of groceries, prescriptions, alcohol, and flowers. Uber is partnering with national brands including buybuy BABY and Bed Bath & Beyond. They are also creating exclusive partnerships with direct-to-consumer companies, like organic baby food brand Yumi. From June to August, there were more than 20,000 searches for baby supplies on the Uber Eats app including diapers, baby food, and wipes, according to Beryl Sanders, head of partnership for new verticals for the United States and Canada for Uber Eats. — BLOOMBERG NEWS


A Michelin-starred restaurant in Disney World?

As recently as a decade ago, the idea that Michelin would start awarding stars in Miami, not to mention the Magic Kingdom, would have sounded like a stand-up comedy setup. But on Nov. 1, the Michelin Guide announced that it is expanding its presence in the United States by adding three Florida cities: Miami, Orlando, and Tampa. The list will be announced in 2022. Michelin is partnering with Visit Florida to produce the newest guide. Details of the partnership were not disclosed, but in 2019, when the guide introduced awards for the entire state of California, it was reported that the state’s tourism board, Visit California, paid $600,000 to expand the guide. — BLOOMBERG NEWS



Coca-Cola buys rest of BodyArmor

Coca-Cola agreed to acquire the remaining stake that it doesn’t own in BodyArmor for $5.6 billion in cash, giving the soft-drink giant full control of the sports-drink brand and more ammunition to take on market leader Gatorade. Coca-Cola, which already owns 15 percent of BodyArmor, is buying the remainder from investors including cofounder and chairman Mike Repole. Repole and his leadership team will remain in place and work with Coca-Cola on other parts of its still-beverage portfolio, the company said Monday. BodyArmor’s sales have risen quickly after the drink was created in 2011. The brand has enjoyed the backing and marketing power of professional athletes including baseball’s Mike Trout, basketball’s James Harden, and golf’s Dustin Johnson. — BLOOMBERG NEWS


Zillow putting about 7,000 homes up for sale

Zillow is looking to sell about 7,000 homes as it seeks to recover from a fumble in its high-tech home-flipping business. The company is seeking roughly $2.8 billion for the houses, which are being pitched to institutional investors, according to people familiar with the matter. Zillow will likely sell the properties to a multitude of buyers rather than packaging them in a single transaction, said the people, who asked not to be named because the matter is private. The move to offload homes comes as Zillow seeks to recover from an operational stumble that saw it buy too many houses, with many now being listed for less than it paid. — BLOOMBERG NEWS


Prefab housing is a draw as affordable options dwindle

Investors are pouring record levels of money into manufactured housing, seeking stability and yield as the need for affordable living options increases across the United States. Jones Lang LaSalle projects investment volume of $4.5 billion in mobile-home communities in the third quarter — an all-time high on a trailing four-quarter basis. Valuations for the communities reached a record in the second quarter of $46,970 per pad, the real estate services firm said in a report. Occupancies also climbed to a new high, at 95.4 percent. And rents rose throughout the pandemic, to a record $800 a month on average. — BLOOMBERG NEWS



Need for warehouses draws investors to industrial property near cities

A new joint venture between alternative investment firm Arcapita Group Holdings and Arden Group plans to acquire $2 billion worth of industrial property assets in the United States as capital pours into niche real estate sectors amid the global pandemic. The venture already completed the purchase of multi-tenant industrial properties in urban centers valued at over $550 million, with an additional $250 million of real estate closing in the near term, according to a statement on Monday. The goal is to grow the portfolio to as much as $2 billion in gross asset value across the top 25 US industrial markets, it added. The shift toward online shopping is altering supply chains and giving a boost to industrial landlords, especially those with space around major cities. While hotels and retail properties have been battered by the pandemic, investors have flocked to warehouses as an e-commerce boom that was flourishing before the pandemic accelerates with consumers increasingly shopping online. — BLOOMBERG NEWS



Bank of America looks to set up securities firm in China

Bank of America is planning to apply to set up a securities firm in China, playing catchup to rivals including JPMorgan Chase and Goldman Sachs in an expansion into the $54 trillion financial market. The bank aims to apply for regulatory approval early next year, people familiar with the matter said, asking not to be named discussing a private matter. It plans to submit applications for licenses allowing it to trade and underwrite stocks and bonds as well as hedge risk, one of the people said. — BLOOMBERG NEWS