The Week's Top Stories: Amazon Ditches NYC, and Facebook Fine
*From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.*
* **Amazon Breaks Up With NYC:**
Amazon abruptly abandoned its plan to build a massive campus in New York City after fierce backlash erupted over the company's labor practices and the $3 billion in tax incentives it was promised by the state. New York officials and Amazon ($AMZN) struck a deal in principle last fall that would have brought an eventual 25,000 new jobs to the Long Island City neighborhood of Queens. But a concerted effort to oppose the deal by local activists and some critical state and federal officials proved too much for the e-commerce giant, which said it would instead spread those jobs across its other hubs, including the forthcoming campus it is building in the Washington, D.C. suburbs. That deal, which also involves major financial subsidies to the company, was announced in conjunction with the New York City plan, but caused considerably less blowback. [See more](https://cheddar.com/media/breaking-amazon-cancels-plans-for-new-york-city-hq2?utm_source=All+Subs&utm_campaign=11e0a36247-EMAIL_CAMPAIGN_2019_01_17_07_57_COPY_01&utm_medium=email&utm_term=0_4b7ac66387-11e0a36247-121318217).
* **Facebook Fine?:**
Federal regulators are [reportedly](https://www.washingtonpost.com/technology/2019/02/14/us-government-facebook-are-negotiating-record-multi-billion-dollar-fine-companys-privacy-lapses/?utm_term=.f979699f8105) negotiating with Facebook ($FB) over a massive fine that would settle the government's investigation into the company's multiple data privacy lapses. The multibillion-dollar fine would amount to the largest sum ever levied against a tech company. Facebook confirmed it was in discussions with the FTC but declined to further comment. The agency has been investigating Facebook since last March, when it was revealed that the political consulting firm Cambridge Analytica had improperly accessed Facebook users' dataー sparking a national conversation about the data-collection practices of the country's largest tech firms. The largest monetary penalty ever imposed by the FTC on a technology company was a $23 million fine that Google ($GOOGL) paid in 2012.
* **Activision Layoffs:**
Call it the "Fortnite" effect. Activision Blizzard ($ATVI), the video game publisher that owns the "Call of Duty" franchise, said it's planning a major restructuring of its business after its quarterly earnings report fell short of expectations. The company said it will cut 8 percent of staff ー around 800 jobs ー and bolster its development resources around successful franchises like "Call of Duty" and "Diablo." Activision said it wants to increase in-game content and speed up releases for those successful titles, as it faces increased competition from free games like "Fortnite: Battle Royale." [See more](
https://cheddar.com/media/activision-blizzard-layoffs-8-of-staff-and-fortnite-secret-skirmish-announced-cheddar-sports-2-12-19).
* **Retail Sales Shocker:**
Economists were shocked when the December retail sales report, delayed due to the government shutdown, showed a decline of 1.2 percent for the month. The expectation was for a 0.2 percent gain. The drop happened despite blockbuster employment and other positive data points, like the Mastercard SpendingPulse survey, which showed the best holiday sales numbers in six years. Some economists said the data was so incongruous that it could actually be wrong ー revisions are always possible, after all ー or else it was a reflection of the end-of-the-year market volatility, the shutdown, or a combination of the two. Others worry the reading is accurate and presents a worrisome sign that the economy is slowing. [See more](https://cheddar.com/media/markets-drop-after-shockingly-weak-retail-data).
* **National Emergency:**
President Trump declared a national emergency in order to bypass Congress and secure billions in funding for the border wall that he first proposed as a central campaign promise. The declaration, delivered in a meandering Rose Garden announcement, comes after the president said he would begrudgingly sign a spending bill that appropriated just $1.3 billion for border fencing. He had previously asked for more than $5 billion, which precipitated the longest government shutdown in U.S. history. The White House is looking to divert billions from the Pentagon's budget for wall construction, as well as hundreds of millions from the Treasury, to cobble together an additional $6.5 billion for the wall. The move is almost certain to be challenged in the courts. Markets were unfazed by the decision, which was forecast by Senate Majority Leader Mitch McConnell (R-Ky.), and held on to finish the week with strong gains. [See more](https://cheddar.com/media/how-trumps-border-wall-differs-from-past-national-emergency-declarations).
*ー Carlo Versano*
The Super Bowl is only a few days away, and the game is currently tracking to be the most expensive one ever.
Gametime, a website and app for last-minute tickets, says the average ticket price for the NFL's championship game is $9,502.50, with the most expensive seats costing nearly $38,000. That's a far cry away from the average ticket price of the first-ever Super Bowl in 1967, which was only $12. The average ticket price increased by more than $8,000 in just the past decade. Matt Rados, Senior Operations Manager at Gametime, joins Cheddar News' Closing Bell to discuss.
Earlier this week, digital investment advisor Betterment announced that it has hired Makara, a company known for its management of cryptocurrency portfolios. Sarah Levy, CEO of Betterment, joins Cheddar News' Closing Bell, where she explains why crypto represents such a promising long-term play and how her company stands to benefit from this latest move.
At-home medical labs company Getlabs raised $20 million in a Series A round, led by Emerson Collective and the Minderoo Foundation. Getlabs aims to be the boots-on-the-ground partner to telehealth. The company says more than 70% of medical decisions still require collecting diagnostic tests in person, and that it fills that void by delivering health care directly to their patients' homes. Founder & CEO of Getlabs Kyle Michelson joined Cheddar News' Closing Bell to discuss.
The White House laid out plans for a $5 billion investment into a national network of charging stations to ease EV driving anxiety. Bruce Brimacombe, CEO of EV infrastructure GOe3 joined Cheddar News to discuss how much needs to be done for drivers to get over the fear of running out of energy. "People need to be able to do what they're doing now," he said. "But that is the way that if you're going to buy an electric car, you got to feel like you're not changing your world." Brimacombe noted that building out the infrastructure between cities was GOe3's own focus.
U.S. automakers are saying that the blockade of the Ambassador Bridge, a crucial border crossing between the U.S. and Canada, is affecting their production lines. Michelle Krebs of Cox Automotive warns that the disruption "couldn't come at a worst time," amid chip and labor shortages in Detroit.
AND DETROIT-BASED AUTO MAKERS SAY THEY ARE SHUTTING DOWN PLANTS OR SCALING BACK PRODUCTION BECAUSE OF PARTS SHORTAGES.
Sonos reported better than expected Q1 earnings amid chip shortage with the release of its Roam product. CFO Brittany Bagley joined Cheddar News to discuss the smart speaker maker's successful report and its plans to hit its 2024 targets as people leave their homes as pandemic restrictions ease. "Even as people head out in the world, it doesn't mean they don't like to listen to music at home or watch a streaming movie at home," she said. "So there's still a real role for us and our products in peoples lives, sort of, no matter what else they're doing."
Lynn Martin, president of the NYSE Group, explains why investors at the New York Stock Exchange should still feel confident despite the recent Wall Street volatility and discusses the landscape for 2022 when it comes to IPOs and retail investors.
The merger of WarnerMedia and Discovery received Justice Department approval on Wednesday, and Patty Hirsch, EVP of consumer and digital platforms at WarnerMedia, joined Cheddar News to discuss current and future offerings from the media conglomerate that will control both HBO Max and Discovery+. "Content really drives so much, and CNN has always had a very long history of creating an incredible documentaries, incredible content … and this service I think is going to ultimately provide the kind of content consumers want and the kind of content that consumers are going are going to pay for," she said. Hirsch also discussed NFTs in use through its Turner Sports and DC brands.
Black entrepreneurs lead the way in the creation of new businesses, but they often cannot get the necessary funding to get their business off the ground. The Fearless Fund is on a mission to change that, and help Black business owners get venture capital. The fund also offers a unique grant program meant to help entrepreneurs with growth, peer coaching, and more, including grants between $10,000 and $20,000. Arian Simone, Co-Founder and General Partner of Fearless Fund, joins Closing Bell to discuss the Fund's mission, how it helps Black entrepreneurs, and more.
Multinational food company Kellogg’s reported an earnings beat amid supply chain issues and an extended labor strike. Kellogg’s Chairman and CEO c joined Cheddar News to discuss overcoming the obstacles and what's to come for the company. "The first half of the year is really going to be one about rebuilding inventory, and into the second quarter, starting to reestablish promotional activity for our customers and our consumers," Cahillane said. "And then the back half of the year, obviously, we're really much more back in business, and we expect to exit the year with our business in cereal being just as strong as it's ever been."
