​Big City Woos: It’s All About Amazon’s HQ2; Weinstein’s Ship Might Be Sinking But You Won’t Believe Who Might Come to its Rescue; Nords​trom’s Holding Out for a Santa Save

Pick me! Pick me!

ID-100376337

Image courtesy of lekkyjustdoit/FreeDigitalPhotos.net

As a Thursday deadline looms, a heated race is on for cities across the United States (okay, and Canada too) as they toss away all their dignity in desperate attempts to woo Amazon and its latest project. The e-commerce giant announced about a month ago that it wants to set up a second headquarters, dubbed HQ2 and now there’s a mad dash from Atlanta to Grand Rapids and beyond to claim that glory, not to mention the $5 billion investment that comes with it. The fact that a project of this magnitude would also create around 50,000 jobs is the icing on this proverbial fiscal cake. Of course, Amazon’s got its own formula for picking the winning city and it’s got very little to do with Tucson delivering a 70 ft. saguaro cactus to Amazon’s Seattle door or Birmingham erecting giant replicas of Amazon boxes and strategically placing them around the city. For Amazon, it will probably boil down to which city will offer up the best tax incentives and breaks from local and state governments. In fact, the company has earned quite the reputation for being able to secure those tax breaks, whether through the promise of job creation or other financial packages that would have any major city’s mouth watering. Besides financial incentives for Amazon, any city that legitimately stands a snowball’s chance is also going to have to be in close proximity to a major airport,  possess the infrastructure to support the project, have easy access to mass transit and a population that boasts at least a million people to readily fill tens of thousands of jobs. That right there puts the kibosh on a bunch of contenders. But you know which cities analysts are expecting to see on the short list? Atlanta, Denver and Pittsburgh. As for Tucson and its aforementioned cactus, well you can visit the rejected botanical specimen at the Desert Museum.

It’s all a matter of perspective…or is it?

ID-100536781

Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

The Weinstein Co. may be getting a much-needed cash-infusion to stay afloat in the wake of co-founder Harvey Weinstein’s ever-growing sexual harassment scandal. The cash-infusion could come from a private equity firm called Colony Capital, headed by an individual named Tom Barrack. If the name Tom Barrack rings a bell that’s because he served as chairman of President Trump’s Private Inaugural Committee and his name is being been bandied about as a pick for the White House Chief of Staff.  That’s right! Harvey Weinstein, an ardent Hillary Clinton supporter and staunch Democratic donor is probably getting a bailout from a Trump ally. But for Barrack, it’s all in a days work since he has a habit of picking up distressed companies in the entertainment realm, making all sorts of deals for the assets still in its clutches and making a mean mint in the process. Perhaps you can take comfort in the fact that there’s a good chance that this bailout will actually mean the Weinstein name disappears from the company, along with some of its honchos, because apparently, they knew about Harvey Weinstein’s sickening behavior for a long time. A sale could also mean that the Weinstein company, sans the name which is now synonymous with lechery, harassment, and abuse, could be restored to its former glory as a powerhouse of independent film and television production.

Let it snow let it snow let it snow…

ID-100519383

Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

We may still have Halloween ahead of us but Nordstrom is already gearing up for Christmas. The retailer, which has seen its share of loss in the last few quarters – along with every other retailer in the U.S. – previously had plans for the founding namesake family to take the company private. There’s talk that the family, who controls a third of the shares, was trying to team up with private equity firm Leonard Green Partners to achieve this goal. However, now those plans are on hold to until after the holiday shopping season because rumor has it, the Nordstroms have been experiencing some issues borrowing cash at a respectable rate, whatever that means. Interestingly enough, while the company isn’t faring as well in terms of same-store sales, its e-commerce is alive, well and thriving quite nicely.  Still, Wall Street didn’t much care for the news and sent shares plummeting over 6%  Those shares, by the way, are over 30% lower than its 52-week high of $62.82.

Advertisements

Russia Says Nyet to LinkedIn; No Regrets for Macy’s on Ditching President-Elect’s Line; Trump Making Plans

Linked Out…

id-100263432

Image courtesy of iosphere/FreeDigitalPhotos.net

It’s Game on between LinkedIn and Russia as the social network gets banned by the Russian government. Back in 2015 Russia passed a new law requiring foreign websites to store personal data of Russian users on Russian servers. While LinkedIn counts six million registered users in the country, the social media giant said no thank you to the new law and now finds itself listed in a very unflattering registry of websites that are banned in the country. Russia’s leaders would like to put an end to its dependance on foreign tech and is even in the process of developing replacements for such services like WhatsApp. In case it wasn’t obvious, Russia has been stepping up its control over internet usage in the last few years. In the meantime Google, eBay and Uber have been looking for ways to comply with the new law lest their fate ends up similar to that of LinkedIn. However, all eyes are on Facebook to see if and how the social media giant intends to deal with this lofty piece of legislation .

Trump’d Up…

id-10077368

Image courtesy of scottchan/FreeDigitalPhotos.net

Today, Macy’s CEO Terry Lundgren said that he stands by his decision to boot Donald Trump’s clothing line from his stores back in the summer of 2015. Trump had tried to retaliate by getting people to boycott the department store. But after all, Trump did say that many Mexican immigrants were rapists and murderers and well, that’s just not cool. So needless to say, his calls to boycott weren’t all that successful. Well, maybe a little as Macy’s has been struggling to post some solid quarterly gains. In any case, the retailer has been trying to court more Hispanic shoppers and getting rid of a line of clothing from a man who has been nothing short of hostile and racist seems like a prudent move. To be fair, Lundgren says he would have had to get rid of Trump’s clothing line once he entered politics anyway, even if he hadn’t made his odious comments. Macy’s doesn’t do politics and Lundgren added that even if Hillary Clinton had her clothing own line – of pantsuits, presumably – that would have to go as well once she announced her political aspirations. Incidentally, Ivanka’s clothing line at Macy’s is alive and well, which seems only right considering she has yet to offend entire races of people. Also incidentally, Ivanka’s line is manufactured in China and the Donald just hates it when American businesses outsource manufacturing there. In fact, as part of his economic plans, he wants to impose harsh tariffs on imports in an effort to curb, or perhaps even obliterate the practice. Good luck with that one, Ivanka.

More Trump’d Up…

id-100327111

Image courtesy of atibodyphoto/FreeDigitalPhotos.net

In other Trump news, rumor has it that the President-Elect wants to install JP Morgan CEO Jamie Dimon as Treasury Secretary. FYI, Dimon is a life-long Democrat and Obama supporter, although the arrival of the Dodd-Frank laws made him a less enthusiastic one. What’s so very peculiar about Trump’s choice is that he once criticized Dimon for his decision to settle civil suits against the bank. Donald is not one to settle court cases. At least that’s what he said. In the meantime, there’s no word from Jamie Dimon about whether he plans to accept. However, other rumors are swirling that he won’t as he was rooting for Hillary Clinton to win the election. And you know who probably wont be asked to join Trump’s government? Amazon CEO Jeff Bezos. As the owner of the Washington Post, Jeff Bezos didn’t care for Trump’s opinions on the mainstream media bias and said Trump was “eroding our democracy.” Incidentally, Amazon’s stock went down today over 4%. Experts say it’s because all tech stocks, including Apple, Google and Microsoft took a beating today since Trump’s economic plans don’t do much for that sector. But the experts with a better sense of humor – and serious undertones – think the drop is because it’s payback time for Bezos and company, who for the most part don’t care for the President-Elect and were pretty vocal about it during campaign season. The tech sector employs a large population of foreign engineers and, well you know how Trump feels about that. Experts also think that companies like Amazon can expect payback in the form of higher taxes and anti-trust litigation. At least Bezos had the good sense to tweet: “I for one give him my most open mind and wish him great success in his service to the country.” Maybe Bezos will get a pass this time. Wink wink, nod nod.