​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.

Smackdown: Google, Facebook vs. Fake News; Controversy Over New Balance Seems Unbalanced; Ford Revs Up Tariff Debate with Trump

Just faking it…

id-100246910

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

As the Trump controversies keep on pouring in, Google and Facebook have now decided to crusade against fake news, as widely shared, yet wholly fabricated stories about the candidates may (or may not) have adversely influenced the presidential election. Part of the problem began when Google realized that the top results for search phrases such as “final election results” and “who won the popular vote” were directing users to a fake news site. By Monday, Google started pulling AdSense from several sites that “misrepresent, misstate or conceal information” and were profiting off such bogus political news stories. As for Facebook, it plans to put the kibosh on ad money from fake sites, but it’s not entirely clear how it will achieve this objective and identify these sites. However, it seems to be a prudent move considering that, according to a Pew study, 44% of Americans get their news from the social network giant. No matter how you slice it, the internet and social media figured prominently last Tuesday and now everyone’s looking to find out what went wrong – or right.

Unbalanced…

id-100428099

Image courtesy of sukanda/FreeDigitalPhotos.net

Privately-held company New Balance has inadvertently, and presumably unwillingly, become the unofficial “official shoes of white people.” Unlike its much more enormous rival, Nike, the 110 year old Boston-based New Balance has always been committed to manufacturing its products in the U.S. across 14 factories where it employs over 1,400 people of various races, ethnicities, genders, religions etc. Hence, the company never cared much for the Trans-Pacific Partnership Trade Agreement that gives companies – like Nike – a very humongous edge because they can manufacture a greater quantity of goods abroad, for a lot lot less money than doing it here. The TPP basically jeopardizes companies who choose to domestically produce goods by making for a very un-level playing field. Because Trump is a huge fan of domestic manufacturing and job creation, his election was welcome news for New Balance. And when New Balance said as much, social media either skewered the company and called for boycotts and mass destruction of the sneakers or had white supremacists proclaiming it as their footwear of choice.  Incidentally, New Balance supported the trade policies of Hillary Clinton and Bernie Sanders too.  A fact that both Trump haters and white supremacists seemed to have overlooked.

Have you manufactured a Ford lately?

id-100240498

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

After congratulating Donald Trump on his election last week, Ford Motors CEO Mark Fields shared some thoughts about Trump’s proposed 35% tariffs on imports – he thinks they’re a bad idea. After reporting a 12% decline in car sales for October earlier this month, Fields said in a speech given at the L.A. Auto show, that those tariffs will have a very big bad impact on the U.S economy and trusts (or hopes) that Trump will do what’s in the best interests of the United States. However, Trump, early on in his campaign spoke about how he didn’t appreciate the fact that Fields moved Ford’s small car production to Mexico, where wages are a whopping 80% less than what they are in the U.S. If you recall, Trump thinks NAFTA is “the single worst trade deal ever approved in this country” and he’s licking his chops to put the kibosh on it. Although, to counter that last tidbit, Fields did say that Ford added 25,000 jobs since 2011. In the meantime, experts have said that Trump’s tariffs, which are on this side of punitive, in fact, violate the rules of the World Trade Organization. So it’s anybody’s guess how far those tariffs will actually go.

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.

 

Game Over for Gawker; Yelp-ing With Joy; Election Triggers Record Gun Sales

 

Over and done with…

id-100212729

Image courtesy of suphakit73/FreeDigitalPhotos.net

The invasion of privacy lawsuit that forced Gawker into bankruptcy has finally come to a close. Well, almost. All Gawker needs to do is write a check to Hulk Hogan for $31 million, which is actually small potatoes considering that the original judgement against Gawker was for $140 million. Hogan’s suit was helped by the fact that PayPal co-founder Peter Thiel secretly financed the suit. He’s no fan of Gawker founder Nick Denton ever since he outed Thiel back in 2007. Of Hogan’s lawsuit, Thiel said, “I saw Gawker pioneer a unique and incredibly damaging way of getting attention by bullying people even when there was no connection with the public interest.” He makes a valid point. In any case, Gawker was forced to file Chapter 11 bankruptcy and the company’s assets were sold in a government auction to Univision for the bargain price of $135 million. But I guess that’s what you’d call payback.

Surprise!!!

id-10099768

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Yelp had a nice surprise today in the form of a profit. And who doesn’t like a surprise like that?  However, with that profit came the news that the company would be saying goodbye to 175 employees – 4% of its workforce – since the company has been unsuccessful in its attempts to expand across the pond. Yelp, which reviews restaurants and other assorted businesses, makes its money through advertising, of course, and also through other services like online reservations. The company’s third quarter net income was $2.1 million, earning the site 22 cents per share, even though experts predicted a 3 cent per share loss. The company’s revenue rose by 30% to $186.2 million, again beating expectations of $183 million. That was a major change from Yelp’s year-over-year profit loss of $8.1 million and 11 cents per share. The company saw a 29% uptick in reviews which brought its total customers to 115 million users.

Oh shoot!

id-100384109

Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

Leave it to the presidential race to send gun sales soaring. Both Sturm-Ruger and Smith & Wesson have been reporting months of record gun sales. In the meantime, FBI background checks to purchase firearms rose 16% to 2.3 million this year from last year’s 2 million during the same period. And you can expect background checks to set a new record for 2016. How’s that for a correlation?  Anticipating new gun-control regulations, gun enthusiasts are stocking up as the second amendment figures prominently in this election. As a result, Sturm-Ruger not only experienced a sales surge back in the summer, but saw net sales in its third quarter jump 34% 10 $161.4 million as consumers loaded up on such favorites like concealed-carry pistols and AR-15 rifles.  Profits also went up for the company 66% to $20 million and $1.03 per share. Sturm-Ruger took all possible political outcomes into consideration both in the White House and the Senate.  While Hillary Clinton hopes to bring back the assault weapons ban, Donald Trump wants to tweak gun legislation and focus on healthcare for the mentally ill instead. The irony is that Sturm-Ruger sales went up following incidents involving gun violence that led to politicians demanding stricter gun-control laws. If gun enthusiasts feel that it will be more difficult to purchase guns in the future, they stock up now. During Sturm’s second quarter earnings call, the company implored its customers and “all freedom-loving Americans to take action in support of the Second Amendment.” Sturm-Ruger pledged $2 to the NRA for every gun it sold and offered to match all donations up to $5 million. Incidentally, despite record gun sales, shares of both Smith and Wesson and Sturm-Ruger had been down 11%. Look for Smith & Wesson’s earnings December 6.

 

Billionaire Gets Booed Over Trump Support; Pes -Oh No! Clinton Investigation Hurts Chances and Currency; Lumber Liquidators Low on Liquid

Are you sure about that?

id-100103537

Image courtesy of fotographic1980/FreeDigitalPhotos.net

Tech billionaire Peter Thiel s taking a lot of heat for his support of Republican presidential candidate Donald Trump. People are enraged that Thiel, who happens to be a PayPal co-founder, had nothing better to do with his money than throw $1.25 million into Trump’s campaign coffers. In fact, there are some who would like to see Thiel ousted from his board positions at Facebook and Y Combinator. However, Mark Zuckerberg has already said he wouldn’t do that and while Y Combinator CEO Sam Altman can’t stomach Donald Trump, he also has no plans to boost Thiel despite his political leanings. “What Donald Trump represents isn’t crazy, and it’s not going away,” Thiel said during his speech at the National Press Club in Washington where he griped about all the problems that America continues to face. From not benefitting from free trade, to watching taxpayer money go down the toilet to fund overseas conflicts, to raging about America’s over-priced healthcare system, Thiel’s speech had all the makings for a Trump rally. Well, except for assaulting women and imposing bans on Muslims entering the U.S. At least Thiel does not agree with all of Trump’s statements and sentiments and he even finds Trump’s comments about grabbing women “clearly offensive and inappropriate.” And that is oddly reassuring.

Trump-ed Up Currency…

id-100418071

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Speaking of the election…The peso, while maybe not the preferred currency for many, is actually a fairly reliable gauge of how the markets feel about our Presidential candidates. Today, the Mexican currency was down as the FBI investigation of Hillary Clinton’s emails on Anthony Weiner’s computer continues to rear its ugly inconvenient head. The Peso favors Hillary and when she does well, it goes up. Following the debates, the peso experienced a nice boost, as it was not keen on Trump’s plans to build a wall along the Mexican border and renegotiate NAFTA with terms more favorable to the United States. Back in September, the peso hit a record low when Trump began making considerable gains in the election. But alas, it was news of this latest FBI investigations that sent the peso tumbling to its worst fall in seven weeks. On the bright side, if you can call it that, today the dollar rebounded signaling that the investigation isn’t affecting the U.S. currency. It also presumably means that the dollar would like to see Clinton installed in the White House.

No kidding…

id-100121006

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Speaking of things that make you sick, we now shift our attentions to Lumber Liquidators and its ongoing saga over its formaldehyde-laced flooring.  Investors had hoped the stock would rebound right about now. But those hopes were dashed when the company reported its third quarter earnings with the stock taking a 14% hit. The company posted an $18.4 million net loss, losing 68 cents per share, which was way over the expected 21 cents per share loss. The worst part of that figure was that the loss was larger than expected as legal fees continue to plague the company and no timeline has been established for when the company will finally settle its litany of lawsuits.  Interestingly enough, sales were actually up and hit $244 million, beating expectations of $232 million. Who would have thunk it? In the meantime, the company saw half its value go down the proverbial toilet since the scandal broke out in March, courtesy of “60 Minutes” and its relentless investigative journalism.  At least the U.S. Consumer Product Safety Commission ended their investigation back in June, issuing no recall. Shares closed at $15.51.

Peso: 1, Trump: 0; Trump Gets Shut Down – Just Not the Right One; How Nobel! Contract Theory Gets Props

Adios…

id-100407830

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

The peso is rising and ironically, Mexico has Donald Trump to thank. Who would have thunk it? The more Donald’s chances for the presidency dwindle, the higher the peso goes.  There is an O’Henry novel in there somewhere. The peso, in fact, had hit a record low just hours before the first debate on September 26 after falling 9% against the dollar this year.  Then this weird thing happened: the Mexican currency rebounded when Hilary Clinton went into full-court debate/attack-mode; or maybe from the negative momentum spewing from Donald’s Trump’s mouth – you decide. However, the peso did lose some of its gains when Trump began attacking Clinton’s use of her private e-mail server and all of her own shifty activities. But over the weekend the peso has been enjoying some new impressive gains and even surged to a one-month high, at least in part owing to Trump’s 2005 “Locker Room Talk” video which viscerally offended…everyone. Of course, we mustn’t rule out his performance at Sunday night’s debate. His showmanship seemed to just about clinch the demise of his presidential aspirations and also presumably helped the peso gain some much needed mojo. I guess that’s what they call karma. After all, he did say that if he wins, he’s going to slap some hard-core tariffs on Mexican imports and that’s a scary thought for a country who sees 80% of its exports going to the U.S. Trump wants to chuck NAFTA, or at the very least, renegotiate the terms so that they are more favorable to the U.S. That’s besides having our neighbor to the south foot the bill for a wall to keep out immigrants.

Loser…

id-10052288

Image courtesy of Mister GC/FreeDigitalPhotos.net

In other Trump news, the Trump Taj Mahal closed its doors…for good. Wish you could say the same of the candidate with the same name, huh? Trump opened the Trump Taj Mahal in 1990, and billed it as “The eighth wonder of the world.” Try not to throw up in your mouth. It was one of the largest casinos in the world and held the dubious distinction of having gone through multiple bankruptcies. Talk about the Trump theme song. In case you were hoping this closure puts a ding in Trump’s armor, don’t bother. He hasn’t owned it for years. He lost his share to bondholders and then resigned as chairmen. The property belongs to activist-investor Carl Icahn, and after massive losses and a breakdown in negotiations with unions, 3,000 employees now find themselves out of work.  Not that the news came as any great shock seeing as how the closure was announced in July. A thousand union members went on strike back then, in part angered that they only saw 80 cents per hour in raises for the last twelve years. Believe it or not Trump hadn’t even owned the casino for much of that time. So we don’t get to completely blame him. Meanwhile, the cost of living in the A.C. went up 25% for the same period so things weren’t adding up for all the casino’s employees. Union members wanted healthcare and pension benefits. Icahn said his last bid offered medical benefits, though the union still didn’t bite. Keeping the casino open would have meant more than $100 million in losses, that would have been in addition to the $350 million that the casino lost in the last few years. And nobody I know likes to lose money. Especially when there are so many commas involved.

Winner winner…

id-100423539

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Now let’s move on to two people who actually make the world a better place. Too bad neither one of them is running for President. Oh well. But I guess winning the Nobel Economics Prize probably means you’re over-qualified for the position anyway. In any case, congrats are in order for MIT’s Bengt Holmstrom and Harvard University’s Oliver Hart. Their work on “contract theory” is so impressive that it seems only fair to hand them the prestigious award, which also comes with a $928,000 cash prize. As for contract theory, it deals with how to best design contracts, taking into consideration human behaviors in business. Whether you like it or not, contract theory has played a big part in executive pay. It helps out in all kinds of situations like how to effectively run corporations, dole out corporate compensation and even formulate bankruptcy legislation. It also studies the implications of workplace pay, like whether managers should get bonuses or stock options, or if teachers and healthcare workers should be paid a fixed rate or a salary that is performance-based. Contract theory also examines whether certain institutions, like schools hospitals and prisons, would fare better if they were privatized. Although, I find it somewhat disconcerting that prisons were lumped with hospitals and schools. Just saying.

The Hits Keep on Coming for Wells Fargo; Janet Yellen Gets a Grilling; Perk Up! Thursday is National Coffee Day

Smacked…

id-100262448

Image courtesy of iosphere/FreeDigitalPhotos.net

The hits just keep on coming for Wells Fargo as the great state of California gave the bank a major diss in the form of a year-long suspension of its business relationships. The bank is officially barred from underwriting debt and handling bank transactions for the Golden State. And if Wells Fargo still can’t get its act together, it can expect a “complete and permanent severance.” Yikes. I guess that’s what happens when you open up 2 million fraudulent accounts and according to State Treasurer John Chiang, promote “a culture which actively promotes wanton greed.” More yikes. Since Chiang oversees $2 trillion worth of banking transactions, besides managing a $75 billion investment pool, he’s probably a bit sensitive about the way banking institutions handle all that money. In the meantime, Wells Fargo CEO John Stumpf will kiss goodbye his $41 million in unvested stock awards.  Carrie Tolstedt, who oversaw the division that was responsible for green lighting the fraudulent accounts, loses all of her unvested awards and gets no further retirement benefits.  Other than the really good ones she already received.

Awkward…

id-100125063

Image courtesy of iosphere/FreeDigitalPhotos.net

Fed Chairwoman Janet Yellen took a beating today from Congressman Scott Garrett over Lael Brainard’s chummy relationship with Hillary Clinton. Brainard, in case you might not know, is the governor of the Fed and is rumored to be the top pic for Treasury Secretary. She also gave $2,700 to the Clinton campaign. Congressman Garrett doesn’t take too kindly to this appearance of impropriety and asked the Chairwoman if this doesn’t pose a conflict of interest for the Fed, seeing as how Brainard is in talks with the Clinton campaign. After all, the Fed is supposed to be non-partisan. Yellen, said she was’t aware that there was, in fact, a conflict while also maintaining that the Central Bank has no biases as far as politics are concerned. Of course, Donald Trump disagreed vehemently with that assessment during Monday night’s presidential debate when he insisted that the Fed is keeping rates low to make Obama look good.  Incidentally, Janet Yellen chaired President Bill Clinton’s Council of Economic Advisers. Besides all that, there apparently is no issue with Fed officials giving money to campaigns. Who knew.

Oh the perks…

id-100290556

Image courtesy of Iamnee/FreeDigitalPhotos.net

Consider this next bit a public service announcement:  Thursday September 29 marks National Coffee Day. Yes, that’s a real thing. And before you whip out your wallet, you might want to know which eating establishments wont be charging you for your java fix. If you happen to be near a Krispy Kreme store, then I urge you to step inside. Rumor has it you’ll score a free coffee and glazed donut just for showing up. But be sure to say thank you! Manners are key. If you’re a fan of Wawa coffee, then you’re in luck as that chain is also offering free cups of its brew. Particpating 7-Elevens are also giving out free coffee. Just make sure you have their smartphone app and register for its 7Rewards program. Dunkin’ Donuts will offer medium-sized cups of coffee for just 66 cents in honor of the company’s 66th birthday. As for Starbucks, don’t expect any freebies. Ever. However, the company is affording you the opportunity to be charitable. For every brewed cup of Mexico Chiapas Starbucks sells, the company will donate a coffee tree to Latin American growers whose crops have been destroyed by fungus.