Welcome to the business section. Arnon Dror is the former Chief Financial Officer and Senior Operations Executive with extensive expertise in managing global business.
Here’s the latest business news this week:
“Threat to National Security” Stops $140bn Qualcomm Bid
Singapore-based rival Broadcom has put forward a $140bn takeover bid for chipmaker Qualcomm. However, US President Donald Trump has blocked the planned takeover, citing “credible evidence” that “threatens to impair the national security of the US.”
The presidential order stated: “The proposed takeover of Qualcomm by the Purchaser (Broadcom) is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited.”
Had the deal pushed through, Arnon Dror shares that it would have created the world’s third-largest maker of microchips, behind Intel and Samsung.
GE’s Top Executives Will Not Get Bonuses
In a move rarely seen in the business landscape, C-suite executives will not receive bonuses because of their terrible performance. The news comes as a welcome surprise as it’s become the norm for top executives to receive such bonuses despite their poor performance. GE reported in a corporate filing that no past or present CEO, CFO, vice chair, general counsel or HR director will receive a bonus in 2017, save for one head at GE’s aviation unit which performed very strongly. Arnon Dror is all for executives to get the total compensation they rightfully deserve.
U.S. Government Racks Up Largest Monthly Deficit in 6 years
The New Treasury Department racked up a $215 billion deficit last month, which is the largest monthly deficit in six years. It was $23 billion higher compared to the deficit for February last year. Arnon Dror explains that a deficit is an excess of expenditures over revenue, or the difference between cash inflows and outflows.
The federal government spent roughly $371 billion last month while tax receipts only amounted to $156 billion. The year prior, for the same time period, government spending was at $364 billion while tax receipts were higher at $172 billion.
Check back soon for more business news.