— Goldman Sachs Uses Chinese Capital to Buy Sensitive Firms; GSK to Build Vaccine Hub in Belgium; US GDP Growth Revised Down; Barbie’s Box Office Success Inspires Lego; Japanese Department Store Workers Threaten Strike; Visa and Mastercard to Raise Fees; US Pending Home Sales Index Rises
1. Goldman Sachs Uses Chinese Capital to Buy Sensitive Firms
In 2017, Goldman Sachs and China’s sovereign wealth fund CIC (China Investment Corporation) jointly established a $2.5 billion private equity partnership.
Sources revealed that Goldman used the joint fund to acquire seven companies in the UK and US, including one that provides cybersecurity services to the UK government.
Other acquisitions included an international supply chain tracking startup, a cloud consulting firm, a pharmaceutical testing company, an AI systems manufacturer, and firms involved in drones and EV batteries.
Given recent tensions in China–US relations, Goldman’s use of Chinese capital to invest in sensitive firms has sparked controversy.
Although Goldman had previously disclosed these acquisitions, it never clearly stated the origin of the capital.
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2. GSK to Build Vaccine Hub in Belgium
Pharmaceutical giant GSK has announced a €250 million investment in Wavre, Belgium, to build a freeze-drying vaccine production facility.
The facility will also store vaccines for diseases such as shingles and RSV, with an expected annual output of tens of millions of doses.
According to GSK Belgium head Emmanuel Amory, Belgium has been a major exporter of vaccines during the pandemic and invests €1.5 billion annually in the biotech sector.
Prime Minister Alexander De Croo stated that in recent years, biopharma has become increasingly important for national geopolitics, and Belgium demonstrated its capabilities during the pandemic.
The facility is scheduled to go online in 2027 and is located southeast of Brussels.
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3. US GDP Growth Revised Down
Today, the US government released revised data showing that the second-quarter annualized GDP growth rate was cut to 2.1%, below previous government estimates.
While business investment was revised downward, the key growth driver of household spending was revised up to 1.7%.
Adjusted Gross Domestic Income (GDI) rose 0.5%, reversing two consecutive quarters of decline.
Although a series of positive data has eased recession fears, steady economic growth could mean prolonged Fed tightening.
In Q2, the personal consumption expenditures price index rose 3.7%, the lowest in two years.
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4. Barbie’s Box Office Success Inspires Lego
In 2014, Lego A/S released The Lego Movie, which achieved great box office success. Recently, rival toy company Mattel released Barbie, breaking multiple records.
Lego CEO Niels Christiansen said he was pleased that toy-themed family films continue to attract large audiences and hinted at plans to bring Lego back to the big screen.
The Lego Movie grossed $470 million worldwide — four times its production cost. In comparison, Barbie has already earned $1.34 billion globally.
Niels said the company is hiring film experts capable of adapting toys into feature films.
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5. Japanese Department Store Workers Threaten Strike
Workers at Tokyo’s iconic Seibu department store have warned of a major strike — the first since the 1950s — shocking the public.
The strike threat comes as parent company 7&i Holdings plans to sell ten Sogo & Seibu stores to US investment fund Fortress.
Employees fear that the sale could result in a merger with Fortress-owned electronics chain Yodobashi Camera, leading to layoffs.
Worker strikes are rare in Japan, but a labor shortage in recent years has given workers more bargaining power.
Disputes between the Sogo & Seibu labor union and 7&i management have lasted for several months.
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6. Visa and Mastercard to Raise Fees
According to documents reviewed by Bloomberg, Visa plans to raise online transaction fees for merchants starting in October, and will increase charges for commercial credit, debit, and prepaid cards starting April next year.
Mastercard also plans to introduce a pre-authorization fee on credit cards beginning in October.
Although Visa and Mastercard set the fees, most of the revenue goes to the partner banks that issue the cards.
In 2022, US merchants paid a record $160.7 billion in fees — a 16.7% year-over-year increase.
Consulting firm CMSPI estimates that merchants may pay an additional $500 million annually.
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7. US Pending Home Sales Index Rises
The National Association of Realtors (NAR) reported today that the Pending Home Sales Index rose 0.9% in July to 77.6, a three-month high and better than economists’ forecast of a 1% decline.
NAR Chief Economist Lawrence Yun said the index has the potential to continue rising.
Year-over-year, the index is still down 14%. Typically, existing homes are sold one to two months after contract signing.
Pending sales increased in the US West, driven by price corrections.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.