tv Bloomberg Markets Americas Bloomberg February 14, 2019 1:30pm-2:01pm EST
we are joined by our guests. max, clearly amazon made a miscalculation here, as well as perhaps the governor of new york and the mayor of new york city. where do you think the biggest fault lies? what happened here, amazon has a ton of power. when you are making a deal, you want the best deal possible, you don't want to leave the counterparty in a situation feeling like they had been had. unfortunately for amazon, they kind of misjudged their own power, the optics of what this would look like. this enormous tax incentives, particularly, if you go back to when this deal was announced, google also announce it was adding jobs in new york without any tax incentives. it just led to a narrative that this was a company holding up some taxpayers.
then you have this swirl of news happening elsewhere in the country, including in wisconsin, where we had a governor basically lose a reelection bid because of a tax incentive situation. it was a situation where amazon misjudged their own deal and maybe misjudged how their power was going to be seen. a statement from michael gianaris, who was opposed to the deal. he says today's behavior by amazon shows why they would have been a bad partner for new york in any event. rather than seriously engage with the community they propose to change, amazon continued its efforts to shakedown government to get its way. it is time for a national dialogue about the perils of these types of corporate subsidies. spoke to an analyst earlier who said she does not think this impacts the business, do you? >> from the expectations of growth and spending, it mixed no change. the expansion was mostly corporate offices responsible
for running their global business. it doesn't affect them if they are scaling elsewhere. what would affect them is if it were to impact aws expansion, impact the logistics expansion plans. those are the things that would have an impact on revenue growth. as far as fundamentals are concerned, no change. emily: will there be political repercussions here? they had not only alienated the local lawmakers, the mayor is angry that amazon did not work through this. and the many people who supported amazon coming to the city may be upset as well. actually, that press conference in long island city is just getting underway with some of the state leaders. to standided we wanted and fight once again on behalf of the rights of immigrants in new york city and in this country. some people want to make more money, it is still important to fight for
immigrants in the city and country. just because some people own property and want to make more money, it is important to fight or men and women who want to organize and fight to form a union in the city and in this country. men and women. amazon has a track record of oppressing workers, of oppressing workers. they deserve to be represented by unions. amazon is a bad employer. $3 billion plus. $3 billion plus in corporate welfare. $3 billion in corporate welfare. $3 billion in corporate welfare is something we fought for. amazon chose to walk away. amazon chose to walk away rather than fight for what it believes in because what they believe in is fighting the rights of working people, the rights of men and women to organize. in those centers, the
distribution center workers, men and women making $18 an hour, $20 an hour, amazon declared that they would fight their rights to organize, that they would crush their rights to organize and form a labor union. that was wrong. forproud that we thought our values, new york values, the rights of immigrants, the rights of workers. that is what was important here. fromt to recognize deborah make the road new york, to say a few words. incredibly -- we win! .> when we fight >> we win! we are incredibly grateful to stand here with the most extraordinary allies and elected officials to say that we are
reclaiming our economy and our democracy. these are our neighborhoods. we have stood against ttempts toes' a extract our tax dollars and shove us out of our communities. we are grateful to stand here today at the beginning, only the beginning of our fight to stop the predatory practices of amazon. killing off jobs, replacing them with terrible jobs, partnering spiking, and justification to push our communities out of our homes. we are thrilled today to be able to say community pressure has stood up to the power, the most powerful and wealthy men in the world. this is a victory that we are proud to stand behind. thank you. i will hand it off to marissa.
united will never be defeated. the workers united will never be defeated. thank you. my name is maria. i'm the executive director of a line, an organization fighting for economic justice, fighting to ensure our immigrant communities are represented in our neighborhoods. we are fighting to ensure workers are protect did. that is what amazon is not doing. gift, i received the best that anyone can receive. we actually heard from amazon and learned about who they really are. the fact that they are stepping back is a testament about what kind of company this is. we are going to continue fighting this company. sounds like amazon has
made itself a lot more enemies and galvanized the enemies it already had. what are the occasions of that? look at this as amazon beating a strategic retreat. theng those images, hearing statements of the opposition, you see exactly why they wanted to pull out. this is not a good look. take a few steps back and think jeff bezoselse is dealing with right now. he is dealing with this twitter war, a more in the media with president trump, the national going afterump amazon for various reasons. i think he probably decided he didn't want to make another enemy. it doesn't make sense to be fighting a two front war. as somebody who lives in queens, pretty close to where this is going down, it is pretty stunning amazon made little effort to sell this thing. we started getting mailings at
my house a month ago, but before that very little. this was popular, if you look at the polling, this was relatively popular in new york city. it is surprising the political situation spiraled so quickly and that they were not able to stand their ground. max chafkin, thank you. on the phone we now have a new york city council with. -- whip. certainly sounds like some of these folks are claiming victory . who are the winners and losers here in your view? some of my colleagues now celebrating the fact that new york will be without a 5000 jobs. i don't know if that is something anyone should celebrate. -- 25,000 jobs. it says a lot about the problems of living in a high-tech state when the only reason that a big company would look at us as if we dangle these tax benefits. that is a separate argument.
but i'm just shocked to see people tie everything from immigration to gentrification into why they did not support a company that by all accounts would have been great for the community, great for jobs for new yorkers. it is shocking for me to see this being celebrated. emily: that said, you have plenty of giant tech companies in new york city who have brought lots of jobs without these huge incentives. couldn't amazon have done this without asking so much of new york? certainly, and i wrote to jeff bezos, reached out to amazon, and offered places on staten island where rent and land values are cheaper and could have done this without any of the type of incentives they would have needed to go to long island city. i think they gave up two quick, and i will blame them for that. where i will not blame them is reading the tea leaves and seeing so many of these elected officials in queens and elsewhere in new york were not
willing to negotiate with them in good faith on some legitimate concerns that they will face wherever they go in any urban environment they set up in. emily: did jeff bezos respond to your letter? >> he didn't. i wish he would have. i would have offered free pizza and would have been glad to show him the sites. emily: do you think that was part of the problem, amazon was not engaged to the very top as it should be, with unions, local politicians who would argue they were cut out of this process? >> they certainly were. this was a problem with the governor and mayor who couldn't seem to agree on anything but this amazon deal. this was sort of run down the throats of some of the local elected officials. i can understand why they would have concerns over a huge company purchasing and developing huge parts of new york city. that in another itself is not a reason to be celebrating that they will not come. we have had big companies do great things in new york city,
members of the council and legislature have always been able to negotiate a compromise where the community wins and the city overall, and the company. it did not happen in this situation. jova rally, thank you so much for calling in. we will continue our coverage. i want to get to romaine bostick who has been watching the markets. the stock has not moved much. what is the actual impact on real estate? romaine: this is more about a story about the company that would benefit. biggestth, one of the landlords in the crystal city area in virginia where amazon is putting one of its headquarters. shares are up about 1%. amazon has been working closely with them not only to take existing properties, but they had a deal to buy up to dubya plots of land near the pentagon. the speculation with the pullout from new york city, that they
may move to expand that relationship with jb g further. excuse me, side -- in nashville, the other city that people think will benefit from this, you have high woods. they are up 1% today because of speculation that that company, reit, will strengthen its relationship with amazon. the company losing are the landlords in new york city, hernando, sl green, one of the bigger losers, as they owned a lot of property in the queens area where amazon was relocating. emily: romaine bostick, thank you for that additional context. specialcontinue our coverage of amazon pulling out of its new york city headquarters. more coming up next. this is bloomberg. ♪
emily: welcome back to a special edition of "bloomberg technology." we are covering amazon's decision to pull out of new york city, its new headquarters out of new york city. joining us from seattle to glenn kelman, who ran over to our bureau from the redfin offices in seattle. you have so much contact on the challenges amazon has faced in seattle, special insights into the controversy they been facing in new york. are you surprised amazon through in the towel? not.m really if you look at the political climate amazon faced in new york, what they would try to leave behind here in seattle, it
makes sense they would pull back. a were tired of having protests, product -- tired of having people challenge their efforts to build a local economy. i know there are many well-founded criticisms of any business that size, but i'm just trying to give you some understanding of where i think the amazon folks are coming from. there are hundreds of cities that really want and amazon, and i got to new york and realized that town was not one of them. reason toat is a good have a portfolio approach, and they welcome the call to all of us in tech that we really have to think about how we treat our workers, how we are perceived by the general public, because we are not necessarily going to be welcomed everywhere we go anymore. emily: should and amazon have known better, if they engaged havelocal leaders, if they perhaps the office of more, why do they need all of those incentives? >> who am i to judge? amazon has been incredibly
successful because of the narrowness of its focus. it is the most customer centric company on the planet. that focus on the customer has sometimes given it a blind spot for political and social issues and all of the other context that businesses are now being asked to address. so i think it is fair to say that they may have been naive in trying to anticipate the political backlash, but i think the people who have really been shortsighted about this for all the folks protesting amazon's arrival in new york. i just heard a woman saying that we won. nobody won today. no one. emily: give us some context on the pushback amazon has faced in seattle. why do they need to do this in the first place? how do they avoid creating these problems elsewhere? amazon needed to do this because it made seattle one of the most prosperous places on the planet. everyone here pose a debt of gratitude to amazon for that but now we are just bursting at the
seams. there is not enough space for the people that amazon wants to hire. definitely political controversy about whether or not amazon should be doing this or that, when it originally understood itself as a business. amazon realized it had to have its eggs in more than one basket. it went to new york and came to another realization, that it should not be in the basket. i think amazon will spend more time and money burnishing its image, more time and money investing in its community, but it will also continue to be really focused on getting packages delivered on time, building the cloud, all the other things it needs to build its business. it is very disciplined about its focus. so the idea that amazon will somehow turn into something it is not, that is not going to happen. they: what does it mean for long island city real estate market not having amazon there, what does it mean for northern virginia?
it appears amazon will be setting up shop there. i just never believed amazon would have only two headquarters. it employs people all over the world. it will open up another engineering headquarters somewhere else. obviously, that will put more pressure on northern virginia, we will see that housing market really take off. i would expect amazon to continue looking, continue comparing the cost of living in different places, the government incentives it gets, but part of the criteria will be where is the political climate where our business feels welcome? you have to remember that all of us in tech are being used to being viewed as heroes, we create jobs, generate prosperity. any other kind of welcome is so disconcerting for a business that has done so much for many of the towns it's been in. i know you have some earnings to report, so i will let you get back to your own business.
emily: welcome back to a special edition of "bloomberg technology." i'm emily chang. ceo.e joined by greathouse they are a hiring platform used by airbnb, lyft, and pinterest. what does amazon pulling out of new york city mean for jobs? short-term, everyone is nervous when a big tech employer moves into town. i was a recruiter in 2005 when google moved in, announcing they were hiring 1500 engineers. it kind of suck the oxygen out of the room. in the short-term, it creates a
lot of competition and stress on companies. of course, over the long-term, you need employers in a town in order for it to be a vibrant ecosystem. continuest new york to be able to attract great technology companies, as it has over the last several decades, and that this is not the start of a trend. emily: let's talk about that. alexandria ocasio-cortez tweeting anything is possible, today was the day that a group of dedicated everyday new yorkers and there it neighbors and the amazon exploitation and power of the man's richest world. do you see worker expectation happening here? whatey didn't say a lot of the employee base would be here in new york. there was a lot of criticism of their hiring and implement practices, particularly in his warehouse and his division locations, and many of those are well-founded. i tend to think about things through the lens of the talent
market, technology talent market . from that perspective, new york has always been home to lots of great companies, but only in the last couple decades, certainly since the 2008 financial crash, has the rise of technology companies played such a big role in the economy here, as opposed to historically a wall street town. now for today's technology worker, you want to have large employers working on challenging problems in technology. you need those big companies. there is a growing, vibrant base of high-growth tech companies in new york, but you won a couple of those bigger anchor organizations to provide growth opportunities, have experienced managers to draw from, these other things that are part of the ecosystem. congressman carol maloney, we are getting reaction from lawmakers here. she put out a statement saying disappointed new york city will not be home to 25,000 new jobs
and that long island city will lose out on infrastructure improvements. this is not the valentines that new york needs. new york is home to a lot of giant corporations, tech companies. amazon already has 5000 workers there. google has a big presence. quickly -- about one minute left , does this -- how much does is hurt jobs in new york city? infrastructure investment, i'm not sure how much it would drive. new york city is very big. the attention of even one very big employer will not make or break the city. in long island city, where they have to take trains in and out of the borough, you do put a strain on the other transportation platforms. years, weorker for 25 did more infrastructure regardless. i don't think this will destroy or impact overall the economy here in new york. we are a big town, we can handle it. there will be a lot of good
employers here now and later. emily: interesting context there on jobs. we will continue to cover the story. amazon has officially pulled out of new york city, canceled its plans to build a new headquarters there. that means 25,000 or so jobs will not be coming to new york city over the next several years. coverageontinue this throughout the day. stay here on bloomberg television. i will be back at 5:00 eastern to talk with the deputy leader of the new york city council, one of the biggest opponents to this deal. this is bloomberg. ♪
hasn't committed to signing it. the plan provides $1.3 billion for new border fencing, far short of the $5.7 billion the president had demanded. the president has until midnight friday to avoid another government shutdown. mccabe says he had good reason to start obstruction of justice and counterintelligence investigations involving president trump's ties to russia. he took the action following a conversation with the president in may of 2017. it was just hours after his boss, james comey, had been fired. >> i was very concerned that i was able to put the pressure case on absolutely solid ground in an indelible fashion that were i removed quickly or fired, that the case could not be closed or vanish in the night without a trace. mark: