Tech: U.S. deals blow to Broadcom-Qualcomm merger
The U.S. government has dramatically “inserted itself into the technology industry’s biggest potential takeover,” arguing the deal “could endanger the country’s technological prowess and, in turn, national security,” said Kate O’Keefe in The Wall Street Journal. The Committee on Foreign Investment in the U.S. this week instructed California-based chipmaker Qualcomm to delay a key shareholder vote that could have helped Singapore-based chip-making rival Broadcom’s $117 billion takeover bid. In response, Broadcom this week pledged it would invest $1.5 billion in 5G technology in the U.S. “to ease regulatory concerns.”
Banking: Goldman Sachs plans aggressive expansion
Goldman Sachs is embarking on a mission “to make a new fortune off the globe’s fast-growing ranks of millionaires,” said John Aidan Byrne in the New York Post. The firm plans to hire at least 200 more financial advisers over the next three years for its private wealth management unit, increasing the division’s ranks by 30 percent. Analysts said the effort could generate as much as $1 billion in annual revenues by 2020 for the firm. Goldman has also launched a slew of new initiatives targeting middle-class consumers, with household-budgeting tools, insurance, mortgages, and car loans.
Tech: Amazon-branded checking accounts
Banking might be the next industry disrupted by Amazon, said Hugh Son in Bloomberg.com. The e-commerce giant is reportedly in talks with banks such as JPMorgan Chase and Capital One about building a checking account–like product it could offer to its customers. The product would be targeted at Millennials and those who don’t already have a bank account, and would help Amazon “lower fees it pays to financial firms and give it a bigger window into customers’ income and spending habits.”
Retail: Kohl’s to start selling groceries
Kohl’s customers will soon be able to “pick up milk and eggs along with their cargo shorts and yoga pants,” said Abha Bhattarai in The Washington Post. To boost foot traffic, the department store chain plans to join forces with German discount grocer Aldi to test grocery sales in 10 of its locations. The effort comes as Kohl’s last week reported sales growth of 6.3 percent in the last quarter, its largest quarterly increase since 2001. The move follows similar in-store partnerships with Amazon and Under Armour.