Capital One Buying Discover & The US Billion $$$ Chip Expansion
Feb 20, 2024
27:28
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Discussing Capital One's acquisition of Discover Financial Services, Trump's $355 million payment after business fraud conviction, and the billion-dollar chip expansion in the US. Also, winners of the weekend, Air Canada's refund policy, and a preview of the week ahead.
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Quick takeaways
Capital One acquiring Discover creates US credit card leader, challenging Visa/Mastercard.
US grants fund $1.5 billion chip expansion to boost domestic semiconductor production.
Deep dives
Capital One acquires Discover Financial Services in a $35 billion deal
Capital One has executed a bid to acquire Discover Financial Services for more than $35 billion, creating the number one US credit card company by loan volume. The acquisition will allow Capital One to expand its customer base and challenge competitors like Visa and Mastercard. While Discover's network is smaller compared to its competitors, Capital One sees potential in its creditworthy customer base.
Former President Donald Trump releases $400 high-top sneakers
Former President Donald Trump surprised attendees at Sneaker Con in Philadelphia by presenting a new line of gold high-top sneakers called the 'Never Surrender' line. Priced at $399 each, the 1000 pairs of sneakers quickly sold out. The release of the sneakers coincided with a court ruling ordering Trump to pay millions in penalties for financial fraud. The sneakers drew attention due to their timing and the significant penalties Trump is facing.
US government awards $1.5 billion grant to semiconductor maker Global Foundries
The US Commerce Department has granted a $1.5 billion grant to semiconductor maker Global Foundries. This grant is part of the US government's efforts to revive domestic chip production and reduce dependence on overseas suppliers. Several other major chip manufacturers, including Intel, TSMC, Samsung, and Micron, have also applied for grants to support semiconductor manufacturing projects. The grants are financed by the $39 billion allocated by the Chip Act passed in 2022.
Episode 262: Neal and Toby break down the massive credit card deal between Capital One and Discover Financial. Plus, Donald Trump has to pay over $355 million after being convicted of business fraud in New York and the billion dollar chip expansion project being funded in the United States. The guys share their winners of the weekend and why Air Canada is honoring a refund policy created by their chat bot. And finally, a preview of the week ahead.
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