(San Francisco)

It has been several years in the making, but drone delivery appears as though it is about to become a reality. Google has just had its drone delivery project approved by the FAA, the first such approval. The caveat is that the approval is only for an area in rural Virginia. But still, it is a breakthrough for the growing and fiercely competitive drone industry. Amazon and others are vying for FAA approval as companies want to be the go-to provider of nation-wide drone delivery. The division of Alphabet running the drone program is called Wing Aviation.

FINSUM: UPS, FedEx, and USPS drivers should be nervous about this, but it is a major breakthrough that has been a long-time coming.

(New York)

Life insurance and annuities have always been a strange grey area for RIAs. They tend to be quite high commission products, a fact which obviously does not blend well with the no-commission, fiduciary mandate. This has left RIAs in an odd position. However, a new and quick growing company, DPL Financial, is now offering a solution. The company serves as an insurance network helping RIAs utilize products from the space. It works with providers of insurance products to help them tailor their offering for RIAs, such as making products commission-free. DPL has already signed up 200 RIAs to use its service. In an example of what they do, DPL’s founder and CEO, David Lau, commented on signing up Jackson National Life Insurance recently, saying “Jackson has long been a market leader in variable annuities, and we are excited to be their partner in launching their fee-based products to the independent RIA market”.

FINSUM: This seems like a very smart and useful approach and the utility for RIAs appears clear. It is obvious they are solving a big problem given their pace of growth.

(New York)

Kohl’s did something we think is really brilliant. The company announced yesterday that it has entered an agreement with Amazon to accept all the online retailer’s returns. Kohls’ shares soared on the news. The program is an expansion of a pilot it started in 100 stores, but will now offer the service in all 1,150 stores. Kohl’s will also be selling Amazon merchandise.

FINSUM: We know from in-depth retailing experience that returns are a huge driver of foot traffic and extra sales. This is a very smart way to bring new customers into the store. Kohl’s revenue will rise materially from doing this. Brilliant strategy and very synergistic for both sides.

(New York)

The term that property owners and landlords generally cringe at hearing is echoing in cities all across the US. That term is rent control. Oregon passed a law this February to cap rent increases at 7% plus inflation, and now many other locations, including Colorado and New York are considering such measures. In some instances, it is a matter of repealing an existing ban on rent control, which would then let cities set their own rules.

FINSUM: The biggest hit to public markets from the spread of such measures will be in apartment REITs like Equity Residential, AvalonBay Communities, and Essex Property Trust.

(New York)

The real estate market has been worrying and disappointing for well over a year now. Home sales and new constructions have been trending poorly, all of which has worried investors that a recession may be on the way. However, this year’s drop in yields has made mortgages much more affordable, which seems to be helping the market. Big market player Realtor.com has just put out its updated outlook for the year, saying “lower, but still increasing mortgage rates that will buoy home prices and sales by boosting buyers’ purchasing power beyond what we initially projected”.

FINSUM: For a $200,000 mortgage, the difference in monthly payments right now is already almost a $150 lower versus what it was in the fourth quarter. That is a meaningful difference for many families.