Afternoon Coffee: Trump Blocks Broadcom-Qualcomm Merger, Amazon Commits to $22 Billion in Future Food Purchases

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President Trump nixed via executive order Tuesday the proposed merger of Singapore-based Broadcom and California-based semiconductor designer Qualcomm on national security grounds, according to Quartz.  The primary concern was that Broadcom would manage its acquired company in a way that prioritized short-term profits over long-term R&D investments, potentially causing the U.S. to fall behind China in the development of 5G wireless technology.

Amazon Commits 

Amazon noted in its annual report that it had made “unconditional purchase obligations” with food suppliers over multiple years to the tune of $22 billion, CNBC reports. The move is unusual for both grocery retailers and Amazon’s usual strategies, which emphasize short-term agreements to maintain pricing pressure on suppliers. Analysts say the commitment is an indication of long-term planning, showing Amazon sees Whole Foods as a major revenue driver.

For Pickup

The shift to online ordering is playing out well for some retailers, who are using their brick-and-mortar stores to manage inventory as well as drive sales, according to Supply Chain Dive. One case in point: Kohl’s during the holiday season grew its sales 6.3%, with 36% of online orders fulfilled during that quarter through store pickups.

OECD Forecast  

And finally, an economic update: The OECD updated its global forecast Tuesday to reflect upgraded growth prospects, the Financial Time reports. The Paris-based body revised up its forecast for 2018 global growth to 3.9% from 3.7% in November, with improvements expected in almost every country.

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