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Update on the latest in business:

November 13, 2018

FINANCIAL MARKETS

Stocks gain after Monday’s big plunge

NEW YORK (AP) — Stocks are moving higher on Wall Street as technology companies bounce back following big losses the day before.

Chipmakers were doing especially well after taking a beating on Monday. Nvidia was up 6 percent and Intel rose 2.6 percent.

Amazon was up 1 percent. The booming online retailer said it would split its much-anticipated second headquarters operations between New York and northern Virginia.

AMAZON HQ

Amazon confirms new headquarters will be split between New York and Arlington, Virginia

NEW YORK (AP) — Amazon has confirmed that it will split its much-anticipated second headquarters between New York City and Arlington, Virginia.

Its New York location will be in the Long Island City neighborhood of Queens, while its Arlington offices will be located in an area called National Landing. Each site will get 25,000 jobs.

In addition, the online retailer said it will open an operations hub in Nashville, creating 5,000 jobs.

The decision ends an intense competition between North American cities to win Amazon and its promise of 50,000 new jobs. Some locations tried to stand out with stunts, but Amazon made clear that it really wanted incentives, like tax breaks and grants. The company received 238 proposals before narrowing the list to 20 in January.

AMAZON HQ-NEW YORK REACTION

Governor cheers announcement of Amazon headquarters sites

NEW YORK (AP) — New York officials are cheering Amazon’s decision to build a new headquarters in a quickly developing corner of the city.

Governor Andrew Cuomo, who said he’d be willing to change his name to “Amazon Cuomo” to land the deal at one point, said the state should be proud for landing, “one of the largest, most competitive economic development investments in U.S. history.”

The state offered Amazon more than $1.5 billion in incentives if it creates 25,000 jobs in the Long Island City neighborhood of Queens.

One-time mayor Michael Bloomberg said Amazon’s arrival affirms New York City’s long-term push to attract the nation’s top tech talent. Bloomberg pushed aggressive development in Long Island City while he was mayor.

AMAZON HQ-VIRGINIA REACTION

Virginia governor welcomes Amazon news

RICHMOND, Va. (AP) — Virginia Governor Ralph Northam cheered Amazon’s choice of Arlington as one of two new headquarters locations for Amazon. He says the state will continue to invest in infrastructure and education as a key part of the partnership.

Northam is calling the state’s proposal to land the headquarters a “new model of economic development for the 21st century.”

Amazon is set to invest about $2.5 billion in its new Virginia headquarters and the state has promised a raft of incentives, including infrastructure investment and tax breaks.

Virginia plans to invest in college-level computer science and related fields along with investing $50 million over 20 years in tech education for grammar and high school students.

AMAZON HQ-CRITICISM

Some state lawmakers aren’t welcoming Amazon headquarters

NEW YORK (AP) — Not everyone in New York and Virginia is happy about being chosen to become the spot for new Amazon headquarter locations.

Some see the billions in tax breaks as corporate welfare while others are worried about home values and school overcrowding in areas where it’s already a problem for many residents.

New York State Senator Michael Gianaris and New York City Councilman Jimmy Van Bramer in a joint statement asked why scarce public resources are being offered to one of the profitable corporations in the world.

In Virginia, state representative Lee Carter warned that thousands will be priced out of their homes with the influx of high-paid tech workers. She also raised the issue of overcrowded schools and traffic.

AMAZON HQ-NASHVILLE

Tennessee governor hails ‘largest jobs commitment’ in state history

NASHVILLE, Tenn. (AP) — Gov. Bill Haslam’s office says Amazon’s plans for a Tennessee operations hub expected to create 5,000 jobs represent “the single largest jobs commitment made by a company in Tennessee’s history.”

A Haslam news release Tuesday says Amazon will invest $230 million-plus to locate its Operations Center of Excellence in Nashville Yards, a 15-acre (6-hectare), mixed-use downtown development. Holly Sullivan of Amazon Public Policy says Nashville will become the eastern U.S. hub for its retail operations division.

Amazon’s new 1 million square-foot Nashville office space will host tech and management functions.

Amazon says it will receive up to $102 million in performance-based incentives based on the creation of 5,000 jobs with an average wage exceeding $150,000 in Nashville.

The state says Amazon currently has six Tennessee facilities employing more than 6,500 people.

CNN VS TRUMP

CNN sues Trump, demanding return of Acosta to White House

NEW YORK (AP) — CNN is suing the Trump administration, demanding that correspondent Jim Acosta’s press credentials to cover the White House be returned.

The administration revoked them last week following President Trump’s contentious news conference, where Acosta refused to give up a microphone when the president said he didn’t want to hear anything more from him.

The lawsuit was filed Tuesday in Washington, D.C., District Court. CNN claims the revocation of Acosta’s press pass violates the constitutional rights to freedom on the press and due process. CNN is asking for an immediate restraining order to return Acosta to the White House.

There was no immediate comment from the administration.

BREXIT

UK Cabinet to discuss draft Brexit deal

LONDON (AP) — British Prime Minister Theresa May’s office has confirmed that the Cabinet will meet Wednesday to consider a draft divorce deal with the European Union.

Downing Street says negotiators from the U.K. and EU have reached a proposed agreement on Britain’s withdrawal terms, which now needs political approval from Britain and the bloc.

May’s office says Cabinet ministers are being invited to read the text ahead of their meeting.

Britain is due to leave the EU on March 29, and Britain is keen to seal a deal this fall.

If the U.K. Cabinet backs a deal, it will then need approval from all 28 EU nations and from the British and European parliaments.

RUSSIA-SWITZERLAND

Russia threatens to boycott Davos forum

MOSCOW (AP) — Russia’s Prime Minister Dmitry Medvedev says Moscow will boycott the annual World Economic Forum in the Swiss ski resort of Davos if it fails to lift restrictions on the attendance of Russian businessmen.

Organizers of the WEF, which takes place every January, have reportedly warned Russian billionaire tycoons Oleg Deripaska and Viktor Vekselberg, and head of the state-controlled VTB bank Andrei Kostin that they’re not welcome. All three have been targeted by U.S. sanctions.

Medvedev, speaking Tuesday on a visit to attend a Libya conference in Palermo, Italy, said he discussed the situation with Swiss President Alain Berset and warned that Russian officials and heads of state-controlled companies will stay away from Davos if the restrictions against the three Russians aren’t lifted.

JOHNSON CONTROLS-SALE

Johnson Controls selling power solutions unit

UNDATED (AP) — Johnson Controls International PLC is selling its power solutions division to Brookfield Business Partners LP for $13.2 billion.

The power solutions business, which makes and distributes advanced battery technologies for various vehicles, posted $8 billion in revenue in fiscal 2018.

Johnson Controls CEO George Oliver said Tuesday the sale will let the company streamline its business, provide increased financial flexibility to strengthen its balance sheet, return capital to shareholders and create options in its buildings unit.

Cork, Ireland-based Johnson Controls anticipates using $3 billion to $3.5 billion of the $11.4 billion in proceeds from the sale to pay down debt.

UNSAFE TOYS

Consumer group releases ‘worst toys’ list for holidays

BOSTON (AP) — A Black Panther “slash claw” and a plastic Power Rangers sword are among the toys topping a consumer safety group’s annual list of worst toys for the holiday season.

Massachusetts-based World Against Toys Causing Harm, or W.A.T.C.H., unveiled its list Tuesday at a Boston children’s hospital.

A Nerf gun, a Cabbage Patch Kids doll and a xylophone for infants also made the list.

The nonprofit organization’s president, Joan Siff, says many of the toys represent choking, eye and other safety hazards that surface year after year.

But the Toy Association, a toy industry trade group, says the annual list is biased and inaccurate. The association says W.A.T.C.H. does not test the toys.

W.A.T.C.H. has been releasing its list for more than four decades.

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