Amazon is expected to show slowest sales growth in four years when it reports results after the bell

“Following [Q4’s] dip below 20% top line growth for the first time in more than three years, it appears that sub-20% growth might be the new normal,” analysts at Canaccord Genuity wrote in a note this week. Net income is expected to increase 43% to $2.3 billion, marking the sixth straight period above $1 billion in profit. The wider margins come from growth in businesses like cloud, advertising and third-party seller services, where profits are bigger but total sales are smaller. “Looking ahead


“Following [Q4’s] dip below 20% top line growth for the first time in more than three years, it appears that sub-20% growth might be the new normal,” analysts at Canaccord Genuity wrote in a note this week. Net income is expected to increase 43% to $2.3 billion, marking the sixth straight period above $1 billion in profit. The wider margins come from growth in businesses like cloud, advertising and third-party seller services, where profits are bigger but total sales are smaller. “Looking ahead
Amazon is expected to show slowest sales growth in four years when it reports results after the bell Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: eugene kim, andrew harrer, bloomberg, getty images, david ryder
Keywords: news, cnbc, companies, reports, wrote, note, billion, surveyed, growth, results, according, slowest, amazon, analysts, operating, expected, sales, vs, bell, refinitiv


Amazon is expected to show slowest sales growth in four years when it reports results after the bell

“Following [Q4’s] dip below 20% top line growth for the first time in more than three years, it appears that sub-20% growth might be the new normal,” analysts at Canaccord Genuity wrote in a note this week.

Here’s what Wall Street is expecting for the quarter:

EPS: $4.72, according to analysts surveyed by Refinitiv, vs. $3.27 last year

Revenue: $59.7 billion, according to Refinitiv, vs. $51 billion a year ago

AWS: $7.7 billion, according to analysts surveyed by FactSet, vs. $5.4 billion last year

Amazon’s operating profit margin, or the amount of money left after subtracting the cost of goods sold and operating expenses, is expected to increase to 5.2% from 3.8% a year ago and 2.8% at the same point in 2017. Net income is expected to increase 43% to $2.3 billion, marking the sixth straight period above $1 billion in profit.

The wider margins come from growth in businesses like cloud, advertising and third-party seller services, where profits are bigger but total sales are smaller. Whole Foods, a slower-growing business, is also now fully integrated into Amazon’s results.

“Looking ahead we expect steady, albeit more moderate growth, with continued margin progress,” the Canaccord Genuity analysts wrote.

Going forward, however, there are threats to Amazon’s profitability as the company invests more heavily in certain areas. Ross Sandler, an analyst at Barclays, wrote in a note earlier this month that the jump in spending will start showing up in the second quarter with increased investments in grocery delivery, international markets and Prime video content.


Company: cnbc, Activity: cnbc, Date: 2019-04-25  Authors: eugene kim, andrew harrer, bloomberg, getty images, david ryder
Keywords: news, cnbc, companies, reports, wrote, note, billion, surveyed, growth, results, according, slowest, amazon, analysts, operating, expected, sales, vs, bell, refinitiv


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Malls see tsunami of store closures as foot traffic declines further

It’s only April, but already this year more store closures — nearly 6,000 — have been announced than in all of 2018. That’s after 2017 was a record year for closures announced by U.S. retailers amounting to more than 8,000. “I expect store closures to accelerate in 2019, hitting some 12,000 by year end,” Deborah Weinswig, founder and CEO of Coresight, said. Up until the final three months of 2018, indoor shopping malls with “experiential” tenants didn’t benefit from greater shopper traffic on a


It’s only April, but already this year more store closures — nearly 6,000 — have been announced than in all of 2018. That’s after 2017 was a record year for closures announced by U.S. retailers amounting to more than 8,000. “I expect store closures to accelerate in 2019, hitting some 12,000 by year end,” Deborah Weinswig, founder and CEO of Coresight, said. Up until the final three months of 2018, indoor shopping malls with “experiential” tenants didn’t benefit from greater shopper traffic on a
Malls see tsunami of store closures as foot traffic declines further Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-15  Authors: lauren thomas, getty images, david ryder
Keywords: news, cnbc, companies, thasos, store, foot, declines, malls, shopping, closures, traffic, tsunami, tenants, stores, retailers, 2018


Malls see tsunami of store closures as foot traffic declines further

It’s only April, but already this year more store closures — nearly 6,000 — have been announced than in all of 2018.

That surely isn’t helping mall owners.

Foot traffic at some of the best shopping centers across the country peaked around August 2018 and has since started to fall, after rebounding for much of last year, according to a new report from data analytics firm Thasos, which uses more than 100 million mobile phones to track when consumers enter and leave certain trade areas.

The good news for a lot of malls was that many retailers made a “comeback” and were able to draw in more shoppers by using promotions in 2018, John Collins, Thasos co-founder and chief product officer, said. “But if you’re selling merchandise at a loss, you can only do that for so long.”

As retailers are now starting to talk about pulling back on discounting, this could be one reason why traffic is dropping at malls, he said, in addition to the fact that some purchases are moving online. Another issue is landlords have been hoping that offering shoppers new experiences would make it more exciting to go to the mall, but the early evidence isn’t showing a boost in activity.

Thasos: Traffic has peaked at enclosed malls anchored by department stores

U.S. retailers so far have announced they will shut 5,994 stores, while opening 2,641, according to real estate tracking done by Coresight Research. That’s more locations slated to go dark than during last year. In 2018, there were 5,864 closures announced and 3,239 openings, Coresight said.

The planned closures include more than 2,000 from Payless ShoeSource, which filed for bankruptcy, hundreds from clothing retailers like Gymboree, Charlotte Russe, Victoria’s Secret and Gap, and discount chain Fred’s. Meantime, chains like Aldi, Dollar Tree, Ollie’s Bargain Outlet, Five Below and Levi’s are planning to open more stores.

On the closures front, however, the outlook doesn’t appear to be getting any better, Coresight predicts. That’s after 2017 was a record year for closures announced by U.S. retailers amounting to more than 8,000.

“I expect store closures to accelerate in 2019, hitting some 12,000 by year end,” Deborah Weinswig, founder and CEO of Coresight, said. “The slowdown we saw in 2018 seems to have been a brief respite in what’s a steady, long-term trend.”

Mall and shopping center owners, looking for ways to fill empty space, have in turn been forced to negotiate on lease terms with tenants and settle on cheaper rents.

“It’s funny because none of the retailers [closing stores] are surprising,” DJ Busch, analyst at commercial real estate services firm Green Street Advisors, said. “But when it happens in a wave, it disrupts negotiating power. It creates a soft point.”

Then, landlords are turning to up-and-coming digitally native brands like shirt company Untuckit, glasses maker Warby Parker and mattress retailer Casper, which are opening hundreds of stores as a group across the country after finding success on the internet, to move into their properties. They’re hoping adding tenants that provide unique experiences, like Legoland, Crayola Experience and Dave & Busters, will lure shoppers from their homes and out to the mall.

But Thasos’ Collins said that might not be going as planned.

His firm found malls with so-called experiential tenants that aren’t just focused on selling products, like Apple, Italian food hall Eataly and Tesla, haven’t been drawing in extra traffic. Up until the final three months of 2018, indoor shopping malls with “experiential” tenants didn’t benefit from greater shopper traffic on a year-over-year basis when compared with indoor malls without any of those unique, nonapparel tenants, Thasos said.

Thasos: Experiential tenants not yet offering ‘meaningful edge’ to traffic like landlords thought

“This suggests [real estate investment trusts] are overpaying to bring in Tesla and Apple, and others, in order to drive foot traffic to the property,” Collins said.

With more store closures likely on the horizon, consumers can expect to start seeing hotels, gyms, apartment complexes, more food halls and grocery stores at traditional malls, turning them into more like city centers. The new Hudson Yards mall, which opened in New York last month, is the perfect example of this mixed-use model.

Mall owners are also experimenting with spaces that let young brands rotate in and out frequently, where they sign short-term leases and gain access to data on foot traffic and shopping patterns. Macerich, the third-largest mall owner in the nation, has a business called BrandBox that it’s rolling out at its centers across the U.S.

“I think this is a multiyear transition,” Busch said. “Cleanse out some of these retailers that lasted longer than they should have. … It’s going to be tough. Anyone who thinks otherwise is too optimistic. But it doesn’t mean this is a dead business. … It can continue to be a good business as underproductive [retailers] go away, and the strong landlords invest.”

Mall owners including Simon, Brookfield, Taubman, Macerich, PREIT, CBL and Washington Prime are expected to report quarterly earnings in the coming weeks and will offer a glimpse at the current leasing environment and how they’re dealing with the latest wave of store closures.


Company: cnbc, Activity: cnbc, Date: 2019-04-15  Authors: lauren thomas, getty images, david ryder
Keywords: news, cnbc, companies, thasos, store, foot, declines, malls, shopping, closures, traffic, tsunami, tenants, stores, retailers, 2018


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Amazon is trying to soften its image as regulatory scrutiny of Big Tech grows

But rather than fiercely fighting every battle, Amazon looks like its ready to play nice. In March, Amazon dropped a policy that prevented merchants from offering lower prices on other websites following an investigation request by Sen. Richard Blumenthal (D-Conn.). Last month, the company scaled back some of its most aggressive promotion tactics after Sen. Elizabeth Warren (D-Mass.) And late last year Amazon raised its minimum wage to $15 following criticism of the company’s working conditions


But rather than fiercely fighting every battle, Amazon looks like its ready to play nice. In March, Amazon dropped a policy that prevented merchants from offering lower prices on other websites following an investigation request by Sen. Richard Blumenthal (D-Conn.). Last month, the company scaled back some of its most aggressive promotion tactics after Sen. Elizabeth Warren (D-Mass.) And late last year Amazon raised its minimum wage to $15 following criticism of the company’s working conditions
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Company: cnbc, Activity: cnbc, Date: 2019-04-14  Authors: eugene kim, brent lewis, denver post, getty images, david ryder
Keywords: news, cnbc, companies, big, growing, tech, soften, sen, stores, scrutiny, amazon, trying, business, winatallcost, regulatory, image, following, working, looks, grows, company


Amazon is trying to soften its image as regulatory scrutiny of Big Tech grows

Amazon’s relentless pursuit of growth in retail, cloud computing, advertising and consumer devices has put the company squarely in the sights of Washington lawmakers who are concerned about Big Tech’s growing influence over consumers. But rather than fiercely fighting every battle, Amazon looks like its ready to play nice.

In March, Amazon dropped a policy that prevented merchants from offering lower prices on other websites following an investigation request by Sen. Richard Blumenthal (D-Conn.). Last month, the company scaled back some of its most aggressive promotion tactics after Sen. Elizabeth Warren (D-Mass.) called out abusive business practices. And late last year Amazon raised its minimum wage to $15 following criticism of the company’s working conditions by Sen. Bernie Sanders (D-VT).

Amazon also confirmed to CNBC that it would soon start accepting cash at the Amazon Go cashierless stores as a growing number of cities and states push for laws that require all stores to serve the unbanked. It’s all part of a strategy to be more likable at a time when tech companies are drawing heat for behavior that looks increasingly anti-competitive.

“I believe Amazon has made the connection between likability and immunity from regulation,” said NYU business professor Scott Galloway, author of “The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google.”

This is a different company from the vigorously defensive, win-at-all-cost Amazon we’re used to seeing.


Company: cnbc, Activity: cnbc, Date: 2019-04-14  Authors: eugene kim, brent lewis, denver post, getty images, david ryder
Keywords: news, cnbc, companies, big, growing, tech, soften, sen, stores, scrutiny, amazon, trying, business, winatallcost, regulatory, image, following, working, looks, grows, company


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Jeff Bezos snubbed eBay in his annual shareholder letter, sending the stock sliding

Bezos cited the Fulfillment by Amazon and Prime memberships as the company’s two “very best selling tools” to secure Amazon’s success with third-party sellers over rivals such as eBay. “We invested in both of these programs at significant financial risk and after much internal debate,” Bezos said in the letter. In response, eBay CEO Devin Wenig took to Twitter to defend the company. Bezos also challenged rival retailers to match Amazon’s minimum wage of $15 per hour. Read Bezos’ 2018 annual lett


Bezos cited the Fulfillment by Amazon and Prime memberships as the company’s two “very best selling tools” to secure Amazon’s success with third-party sellers over rivals such as eBay. “We invested in both of these programs at significant financial risk and after much internal debate,” Bezos said in the letter. In response, eBay CEO Devin Wenig took to Twitter to defend the company. Bezos also challenged rival retailers to match Amazon’s minimum wage of $15 per hour. Read Bezos’ 2018 annual lett
Jeff Bezos snubbed eBay in his annual shareholder letter, sending the stock sliding Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: matt lavietes, getty images, david ryder
Keywords: news, cnbc, companies, jeff, shareholder, sellers, letter, sending, ebay, ceo, bezos, snubbed, stock, programs, response, dont, challenged, sliding, amazons, annual


Jeff Bezos snubbed eBay in his annual shareholder letter, sending the stock sliding

EBay’s shares slid to $36.00 on Thursday afternoon. Its market cap was $32.94 billion.

Bezos cited the Fulfillment by Amazon and Prime memberships as the company’s two “very best selling tools” to secure Amazon’s success with third-party sellers over rivals such as eBay.

“We invested in both of these programs at significant financial risk and after much internal debate,” Bezos said in the letter. “We could not foresee with certainty what those programs would eventually look like, let alone whether they would succeed, but they were pushed forward with intuition and heart, and nourished with optimism.”

In response, eBay CEO Devin Wenig took to Twitter to defend the company.

“While I appreciate the ink dedicated to @ ebay from the ceo of the company not focused on competition, think I”ll dedicate my letter to customers, purpose and strategy. We don’t compete with our sellers. We don’t bundle endless services to create barriers to competition.”

Bezos also challenged rival retailers to match Amazon’s minimum wage of $15 per hour. Bezos did not call out competitors by name, but it prompted a response from Walmart’s executive vice president of corporate affairs, Dan Bartlett, who challenged Amazon to pay more taxes.

Read Bezos’ 2018 annual letter here.


Company: cnbc, Activity: cnbc, Date: 2019-04-11  Authors: matt lavietes, getty images, david ryder
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Amazon says it will bring 800 new tech jobs to Austin

Amazon will add 800 tech jobs at its Austin, Texas, location, following Apple’s expanded presence in the city, the company announced Thursday. The new employees will join the more than 6,600 workers Amazon already has in the Austin area, which already includes more than 1,000 corporate-level workers, The Austin American-Statesman reported. Facebook, Samsung, Dell, Google and other tech companies all have major offices in the Austin area. One draw for Amazon might have been the fact that it’s gro


Amazon will add 800 tech jobs at its Austin, Texas, location, following Apple’s expanded presence in the city, the company announced Thursday. The new employees will join the more than 6,600 workers Amazon already has in the Austin area, which already includes more than 1,000 corporate-level workers, The Austin American-Statesman reported. Facebook, Samsung, Dell, Google and other tech companies all have major offices in the Austin area. One draw for Amazon might have been the fact that it’s gro
Amazon says it will bring 800 new tech jobs to Austin Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-28  Authors: lauren feiner, david sucsy, getty images, david ryder, stringer
Keywords: news, cnbc, companies, bring, city, company, workers, austin, 800, long, amazon, employees, texas, jobs, plans, tech


Amazon says it will bring 800 new tech jobs to Austin

Amazon will add 800 tech jobs at its Austin, Texas, location, following Apple’s expanded presence in the city, the company announced Thursday.

The new employees will join the more than 6,600 workers Amazon already has in the Austin area, which already includes more than 1,000 corporate-level workers, The Austin American-Statesman reported. Amazon told the newspaper that it plans to hire the new employees over a period of several years to fill a 145,000-square-foot space in four floors of a North Austin development called The Domain. The employees will be focused on software and hardware engineering, cloud computing and research science.

The Texas capital made Amazon’s shortlist of 20 cities in its search for a second headquarters location. The company ultimately chose New York’s Long Island City and Northern Virginia to place 50,000 employees instead, citing the need for a robust talent pool. Amazon canceled its plans to build an office in Long Island City after facing local opposition, and said it would add new jobs in other cities throughout the country instead.

Austin is quickly solidifying its role as a tech hub. The city already attracts tech types through its annual South by Southwest festival. Apple announced in December that it would invest $1 billion into a new campus in Austin, which will accommodate an initial 5,000 employees. Facebook, Samsung, Dell, Google and other tech companies all have major offices in the Austin area.

One draw for Amazon might have been the fact that it’s grocery business, Whole Foods Market, is already headquartered in Austin. The company already has 2,600 employees working for Whole Foods in Austin, according to the American-Statesman.

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Company: cnbc, Activity: cnbc, Date: 2019-03-28  Authors: lauren feiner, david sucsy, getty images, david ryder, stringer
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French investigator: Clear similarities between Boeing 737 Max crashes

It said a prosecutor from the criminal division of the Justice Department was listed as a contact. The Journal also said that the Transportation Department’s watchdog was scrutinizing the FAA’s certification of the new 737 planes. Boeing had added an automatic anti-stall system to the Max jets when they went into service in 2017 that was not on older 737 aircraft. Many were given a roughly hourlong iPad training class to transition from older Boeing 737s to the 737 Max, according to Dennis Tajer


It said a prosecutor from the criminal division of the Justice Department was listed as a contact. The Journal also said that the Transportation Department’s watchdog was scrutinizing the FAA’s certification of the new 737 planes. Boeing had added an automatic anti-stall system to the Max jets when they went into service in 2017 that was not on older 737 aircraft. Many were given a roughly hourlong iPad training class to transition from older Boeing 737s to the 737 Max, according to Dennis Tajer
French investigator: Clear similarities between Boeing 737 Max crashes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-18  Authors: leslie josephs, david ryder, bloomberg, getty images
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French investigator: Clear similarities between Boeing 737 Max crashes

The Wall Street Journal, citing anonymous people familiar with the matter, reported Sunday that a grand jury issued a subpoena to “at least one person” involved in the development of the plane. It said a prosecutor from the criminal division of the Justice Department was listed as a contact. The Journal also said that the Transportation Department’s watchdog was scrutinizing the FAA’s certification of the new 737 planes. Boeing had added an automatic anti-stall system to the Max jets when they went into service in 2017 that was not on older 737 aircraft. Indonesia investigators have indicated that as a possible factor in the Lion Air crash in October.

Pilots said they were not informed about the new system until after the Lion Air crash. Many were given a roughly hourlong iPad training class to transition from older Boeing 737s to the 737 Max, according to Dennis Tajer, a Boeing 737 pilot and spokesman for the Allied Pilots Association, which represents American Airlines pilots.

Boeing shares were down more than 2.6 percent in afternoon trading Monday, shaving nearly 60 points off the Dow Jones Industrial Average, as the day’s biggest loser in the index.

The FAA, Justice Department and the Transportation Department’s Office of Inspector General declined to comment. Boeing did not immediately respond to a request for comment.

WATCH: Why Boeing and Airbus dominate 99% of the large plane market


Company: cnbc, Activity: cnbc, Date: 2019-03-18  Authors: leslie josephs, david ryder, bloomberg, getty images
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Amazon will need to occupy tons of office space to get tax incentives for HQ2 in Virginia

The county released the draft in preparation for a county board meeting on March 16, when the agreement will come to a vote. The draft agreement sheds light on the concessions Arlington made to Amazon to lure its business and 25,000 jobs to the area. The following year, it is expected to hold 252,800 square feet of office space to receive the incentive. And it must have over 5.5 million square feet of office space by July 2034 to qualify. The agreement also requires Arlington to set aside a port


The county released the draft in preparation for a county board meeting on March 16, when the agreement will come to a vote. The draft agreement sheds light on the concessions Arlington made to Amazon to lure its business and 25,000 jobs to the area. The following year, it is expected to hold 252,800 square feet of office space to receive the incentive. And it must have over 5.5 million square feet of office space by July 2034 to qualify. The agreement also requires Arlington to set aside a port
Amazon will need to occupy tons of office space to get tax incentives for HQ2 in Virginia Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: lauren feiner, leonard ortiz, digital first media, getty images, david ryder, stringer
Keywords: news, cnbc, companies, amazon, county, virginia, tax, office, occupy, agreement, receive, square, company, space, tons, arlington, need, area, hq2, incentives


Amazon will need to occupy tons of office space to get tax incentives for HQ2 in Virginia

Amazon will receive 15 percent of any increase in the amount of hotel taxes Arlington County, Virginia, receives provided the company meets certain occupancy goals, according to the newly released draft agreement for its second headquarters location there.

The county released the draft in preparation for a county board meeting on March 16, when the agreement will come to a vote.

Amazon has faced local opposition in the area, albeit not as loud as that in New York’s Long Island City neighborhood in Queens, which eventually drove the company to abandon its HQ2 plans there. Opposition has mainly centered around performance-based incentives offered to the company, which in Arlington’s case amount to about $573 million, according to Amazon’s initial disclosure of the incentives.

The draft agreement sheds light on the concessions Arlington made to Amazon to lure its business and 25,000 jobs to the area.

Under the agreement, Amazon would receive 15 percent of any additional revenue the county receives from its “transient occupancy tax,” or taxes on hotels and other lodgings, compared with its baseline, provided it increases the total square footage of its facilities to certain levels. This assumes tourism in Arlington will increase with Amazon’s move to the area, and compares increased revenue from visitors with a baseline calculated as the average revenues for the tax from the previous three fiscal years.

Amazon is expected to meet 90 percent of the following targets by each of the following deadlines in order to receive the payments: The company will need to have 64,000 square feet of office space by the end of July 2020 in order to receive the first payout that August. The following year, it is expected to hold 252,800 square feet of office space to receive the incentive. And it must have over 5.5 million square feet of office space by July 2034 to qualify.

The agreement also requires Arlington to set aside a portion of funds from incremental real property tax revenues in the area to fund specific projects in the area Amazon will occupy. If Amazon fulfills at least 90 percent of its facility targets, a portion of the increased tax revenue from the county’s specified fund will be set aside for these projects, which were not spelled out in the agreement, between the county’s fiscal years 2022 and 2031.

The agreement also gives Amazon the chance to shield information from the public, though it requires it to acknowledge the county will adhere to Virginia’s Freedom of Information Act, which is often used by journalists to illuminate information in the public sector. The county will give Amazon up to two business days of the request “to allow Amazon to take such steps as it deems appropriate with regard to the requested disclosure of records.”

Amazon declined to comment on the proposed agreement.

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Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: lauren feiner, leonard ortiz, digital first media, getty images, david ryder, stringer
Keywords: news, cnbc, companies, amazon, county, virginia, tax, office, occupy, agreement, receive, square, company, space, tons, arlington, need, area, hq2, incentives


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Amazon will need to occupy tons of office space to get tax incentives for HQ2 in Virginia

The county released the draft in preparation for a county board meeting on March 16, when the agreement will come to a vote. The draft agreement sheds light on the concessions Arlington made to Amazon to lure its business and 25,000 jobs to the area. The following year, it is expected to hold 252,800 square feet of office space to receive the incentive. And it must have over 5.5 million square feet of office space by July 2034 to qualify. The agreement also requires Arlington to set aside a port


The county released the draft in preparation for a county board meeting on March 16, when the agreement will come to a vote. The draft agreement sheds light on the concessions Arlington made to Amazon to lure its business and 25,000 jobs to the area. The following year, it is expected to hold 252,800 square feet of office space to receive the incentive. And it must have over 5.5 million square feet of office space by July 2034 to qualify. The agreement also requires Arlington to set aside a port
Amazon will need to occupy tons of office space to get tax incentives for HQ2 in Virginia Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: lauren feiner, leonard ortiz, digital first media, getty images, david ryder, stringer
Keywords: news, cnbc, companies, amazon, county, virginia, tax, office, occupy, agreement, receive, square, company, space, tons, arlington, need, area, hq2, incentives


Amazon will need to occupy tons of office space to get tax incentives for HQ2 in Virginia

Amazon will receive 15 percent of any increase in the amount of hotel taxes Arlington County, Virginia, receives provided the company meets certain occupancy goals, according to the newly released draft agreement for its second headquarters location there.

The county released the draft in preparation for a county board meeting on March 16, when the agreement will come to a vote.

Amazon has faced local opposition in the area, albeit not as loud as that in New York’s Long Island City neighborhood in Queens, which eventually drove the company to abandon its HQ2 plans there. Opposition has mainly centered around performance-based incentives offered to the company, which in Arlington’s case amount to about $573 million, according to Amazon’s initial disclosure of the incentives.

The draft agreement sheds light on the concessions Arlington made to Amazon to lure its business and 25,000 jobs to the area.

Under the agreement, Amazon would receive 15 percent of any additional revenue the county receives from its “transient occupancy tax,” or taxes on hotels and other lodgings, compared with its baseline, provided it increases the total square footage of its facilities to certain levels. This assumes tourism in Arlington will increase with Amazon’s move to the area, and compares increased revenue from visitors with a baseline calculated as the average revenues for the tax from the previous three fiscal years.

Amazon is expected to meet 90 percent of the following targets by each of the following deadlines in order to receive the payments: The company will need to have 64,000 square feet of office space by the end of July 2020 in order to receive the first payout that August. The following year, it is expected to hold 252,800 square feet of office space to receive the incentive. And it must have over 5.5 million square feet of office space by July 2034 to qualify.

The agreement also requires Arlington to set aside a portion of funds from incremental real property tax revenues in the area to fund specific projects in the area Amazon will occupy. If Amazon fulfills at least 90 percent of its facility targets, a portion of the increased tax revenue from the county’s specified fund will be set aside for these projects, which were not spelled out in the agreement, between the county’s fiscal years 2022 and 2031.

The agreement also gives Amazon the chance to shield information from the public, though it requires it to acknowledge the county will adhere to Virginia’s Freedom of Information Act, which is often used by journalists to illuminate information in the public sector. The county will give Amazon up to two business days of the request “to allow Amazon to take such steps as it deems appropriate with regard to the requested disclosure of records.”

Amazon declined to comment on the proposed agreement.

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Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: lauren feiner, leonard ortiz, digital first media, getty images, david ryder, stringer
Keywords: news, cnbc, companies, amazon, county, virginia, tax, office, occupy, agreement, receive, square, company, space, tons, arlington, need, area, hq2, incentives


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Amazon is working with Mexico’s government-backed bank on a mobile payments system

Mexico’s central bank is in talks with Amazon to launch a new government-backed mobile payment system that would allow consumers to pay for online purchases using QR codes, the bank’s head of payments said. The payment system, known as CoDi, is being built by central bank Banco de México, known as Banxico. CoDi will allow customers to make payments online and in person through smartphones free of charge using QR codes. Amazon and Argentine rival MercadoLibre have approached the bank about adopti


Mexico’s central bank is in talks with Amazon to launch a new government-backed mobile payment system that would allow consumers to pay for online purchases using QR codes, the bank’s head of payments said. The payment system, known as CoDi, is being built by central bank Banco de México, known as Banxico. CoDi will allow customers to make payments online and in person through smartphones free of charge using QR codes. Amazon and Argentine rival MercadoLibre have approached the bank about adopti
Amazon is working with Mexico’s government-backed bank on a mobile payments system Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: stefanie, stephen brashear, getty images, david ryder, stringer
Keywords: news, cnbc, companies, amazon, financial, working, payment, online, mercadolibre, mobile, mexicos, mexico, bank, governmentbacked, payments, codi, technology, system


Amazon is working with Mexico's government-backed bank on a mobile payments system

Mexico’s central bank is in talks with Amazon to launch a new government-backed mobile payment system that would allow consumers to pay for online purchases using QR codes, the bank’s head of payments said.

It would be the first time the world’s largest online retailer offers such scanning technology in Mexico and could eventually open a new customer base in a nation where more than half of the population has no bank account.

The payment system, known as CoDi, is being built by central bank Banco de México, known as Banxico. CoDi will allow customers to make payments online and in person through smartphones free of charge using QR codes. It aims to bring more people into the formal financial sector.

A pilot rollout of CoDi is expected this month, Banxico has said.

Amazon and Argentine rival MercadoLibre have approached the bank about adopting the system, Jaime Cortina, Banxico’s director of operations and payments, told Reuters.

“They have also said that they could implement it relatively quickly,” Cortina said, adding that CoDi was specifically designed so that it can facilitate payments online as well as in stores.

Amazon declined to comment. MercadoLibre confirmed that its payments arm MercadoPago was in contact with the central bank about digital payment solutions but declined to comment further.

Phone-based banking is popular in other emerging markets such as China, India and Kenya, and has been driven by user-friendly, affordable apps from private companies.

Cortina said online retailers should have no problem incorporating the technology at the same time as banks and other participants in the existing interbank payment system that powers CoDi.

Only 3.9 percent of retail sales were made online in Mexico last year, according to research firm Euromonitor International, with Amazon and MercadoLibre among the biggest players.

Both retailers want to encourage unbanked customers to shop online and allow cash payments at convenience stores. Amazon also launched its first debit card last year, targeting consumers without credit cards.

Mexico’s new leftist government under President Andres Manuel Lopez Obrador is betting on financial technology to help lift people out of poverty. Broad acceptance of CoDi would mark an important step in its financial inclusion strategy.

(Reporting by Stefanie Eschenbacher; Additional reporting by Daina Beth Solomon in Mexico City and Jeffrey Dastin in San Francisco; Editing by Frank Jack Daniel and Richard Chang)


Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: stefanie, stephen brashear, getty images, david ryder, stringer
Keywords: news, cnbc, companies, amazon, financial, working, payment, online, mercadolibre, mobile, mexicos, mexico, bank, governmentbacked, payments, codi, technology, system


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Amazon is working with Mexico’s government-backed bank on a mobile payments system

Mexico’s central bank is in talks with Amazon to launch a new government-backed mobile payment system that would allow consumers to pay for online purchases using QR codes, the bank’s head of payments said. The payment system, known as CoDi, is being built by central bank Banco de México, known as Banxico. CoDi will allow customers to make payments online and in person through smartphones free of charge using QR codes. Amazon and Argentine rival MercadoLibre have approached the bank about adopti


Mexico’s central bank is in talks with Amazon to launch a new government-backed mobile payment system that would allow consumers to pay for online purchases using QR codes, the bank’s head of payments said. The payment system, known as CoDi, is being built by central bank Banco de México, known as Banxico. CoDi will allow customers to make payments online and in person through smartphones free of charge using QR codes. Amazon and Argentine rival MercadoLibre have approached the bank about adopti
Amazon is working with Mexico’s government-backed bank on a mobile payments system Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: stefanie, stephen brashear, getty images, david ryder, stringer
Keywords: news, cnbc, companies, amazon, financial, working, payment, online, mercadolibre, mobile, mexicos, mexico, bank, governmentbacked, payments, codi, technology, system


Amazon is working with Mexico's government-backed bank on a mobile payments system

Mexico’s central bank is in talks with Amazon to launch a new government-backed mobile payment system that would allow consumers to pay for online purchases using QR codes, the bank’s head of payments said.

It would be the first time the world’s largest online retailer offers such scanning technology in Mexico and could eventually open a new customer base in a nation where more than half of the population has no bank account.

The payment system, known as CoDi, is being built by central bank Banco de México, known as Banxico. CoDi will allow customers to make payments online and in person through smartphones free of charge using QR codes. It aims to bring more people into the formal financial sector.

A pilot rollout of CoDi is expected this month, Banxico has said.

Amazon and Argentine rival MercadoLibre have approached the bank about adopting the system, Jaime Cortina, Banxico’s director of operations and payments, told Reuters.

“They have also said that they could implement it relatively quickly,” Cortina said, adding that CoDi was specifically designed so that it can facilitate payments online as well as in stores.

Amazon declined to comment. MercadoLibre confirmed that its payments arm MercadoPago was in contact with the central bank about digital payment solutions but declined to comment further.

Phone-based banking is popular in other emerging markets such as China, India and Kenya, and has been driven by user-friendly, affordable apps from private companies.

Cortina said online retailers should have no problem incorporating the technology at the same time as banks and other participants in the existing interbank payment system that powers CoDi.

Only 3.9 percent of retail sales were made online in Mexico last year, according to research firm Euromonitor International, with Amazon and MercadoLibre among the biggest players.

Both retailers want to encourage unbanked customers to shop online and allow cash payments at convenience stores. Amazon also launched its first debit card last year, targeting consumers without credit cards.

Mexico’s new leftist government under President Andres Manuel Lopez Obrador is betting on financial technology to help lift people out of poverty. Broad acceptance of CoDi would mark an important step in its financial inclusion strategy.

(Reporting by Stefanie Eschenbacher; Additional reporting by Daina Beth Solomon in Mexico City and Jeffrey Dastin in San Francisco; Editing by Frank Jack Daniel and Richard Chang)


Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: stefanie, stephen brashear, getty images, david ryder, stringer
Keywords: news, cnbc, companies, amazon, financial, working, payment, online, mercadolibre, mobile, mexicos, mexico, bank, governmentbacked, payments, codi, technology, system


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