♪ this is bloomberg technology. york, pulls out of new scrapping its plans to build a second headquarters in the city after backlash from some residents and politicians. we will speak with local officials who opposed the deal. plus, amazon had pledged to require thousands of new workers but was it a size $43 billion in an financial incentives. will this impact help other take

firms explained. to get a newworks deal off the ground as the senate just best a spending bill to avert the government shutdown. theto the top text story of day. a backlash of government officials has caused amazon to back out of plans to build a campus in new york city. the deal had promised for 2000 jobs with an average salary of $150,000. local opposition was fervent from the beginning. lawmakers resented being excluded from negotiations. community groups fear that rising rents would kick out residence. governor andrew cuomo said the new york senate has done a lot of damage for this lost economic opportunity. joining us to discuss is the democratic queens city councilmember.

also here with me in the studio is brad stone. victory here,ng running a sort of victory lap, but is this really a win? >> no one is running a victory lap. this is a victory because we fought for our values. the steel from the beginning because amazon has a track record of not treating its workers right and is being horribly antiunion. we exposed that during this process over the last few months when they declared once and for all that they would fight any attempts of any employees to organize. that is antithetical to my values as a progressive new york city democrat. i think it is antithetical to most of us in new york city. they refused to budge. at the end of the day, amazon chose to leave. no one killed amazon. amazon walked off the field. they refuse to change their ways

and they simply did not want to risk having to allow their employees to organize. which is outrageous. amazon has turned some of its supporters into enemies. governor bill de blasio said they gave amazon a chance to be a good neighbor. instead, they threw away that opportunity. if amazon cannot recognize what that is worth, it's competitors well. >> i think mayor de blasio is doing some damage control. he was a proponent of the deal his face.up in this is a catastrophic outcome for everyone involved. amazon was looking for a partner, which it fell it did not have any more in seattle. it conducted this very public search. it made mistakes in new york city. it should have trotted out jeff bezos more to help the steel. putting him in a room with

politicians and councilman could've helped. i would like to ask the councilman, you're never going to change amazon's stripes. it has historically been antiunion when it comes to its fulfillment centers. these are white collar jobs in queens. it will sell technology like -- facial recognition to the federal government. how does losing these 25,000 jobs help your constituents? many of them supported the deal. >> it helps our city in the long run and it helps the nation, quite frankly. if we had not thought this fight in new york city, we would've had other corporations saying you let amazon not only come to new york city by get $3 billion in taxpayer money the clearing themselves to be so antiunion that they would not allow workers to organize. if we allow them to do that, everybody else coming after that

will say we are doing the same thing. i think at the end of the day this is a fight that needed to be fought. and also with respect to their use and support of work against immigrants in this country. queens is the most diverse county in the country. we have so many immigrants, but documented and undocumented. how can we as elected officials to represent union workers and a lot of immigrants allow amazon to dictate the terms of this deal? dictate the terms of their arrival? the truth is amazon could have fought, could have actually proposed new ways to do it. i agree with you, amazon did not fight very hard here. we never heard or saw from jeff bezos. there was a was no discussion by the time this deal was announced in early november until today, and i was surprised by the announcement today, since that time there has been a no work on

behalf of of amazon in the governor or mayor's office to solve the problems. labor said to amazon that if you do agree to be neutral, we might be able to go along with this. emily: congressman, let's talk about what the people wanted or what they appear to want. amazon said 70% of new yorkers were in favor. we looked at an independent poll that said that the 7% of new yorkers were in favor. when you ask them if they were in favor of $3 billion in incentives, they were more split. done anything differently to keep amazon at the table? tothis is their decision take their marbles and go home. i've met with amazon, took some criticism from some folks, and i believe they, at the end of the day, are unwilling to move on

anything. i believe it is their core values. --crush unions and anybody ability of their workers to organize. that is on them. i'll must like to put in no effort to respond to the criticism initially. they rollout was totally mishandled. bypassing community review. they were almost destined to fail. even worse was how they handle the last three months. there are appearances before the city council were dreadfully bad. to movee simply unable and maneuver through what they were going through. damage hasmuch amazon's unto itself. amazon done to itself here? >> they will recover easily. those jobs will go elsewhere.

they will not change their antiunion stance. i think new york and queens of particular loses out. could they have done it differently? i think they were unprepared for choosing a location that had this much opposition. they did not have the tools to counter the groundswell of c andn that came from ao her allies. they could've have done things ,hat relate, but new york is unfortunately, sacrificing the longer-term economic benefits that amazon would have brought the city. we refer tologize, you as a congressman, but you're a city councilman. are you concerned about political consequences? >> i understand there are people angry today because of what happens. there are consequences when we take stances. i am willing to stand up for

what i believe in. i'm willing to fight even the most powerful man in the world because of where i come from and what i believe. if there are people who will not support me going forward because i chose to defend working men and women, because i chose to defend immigrants undocumented and documented, because i chose to defend the city councils meaningful role in land use be it. then so i know what i took on this fight and i'm proud of it. emily: thank you so much for joining us. coming up, the green new deal. mitch mcconnell wants to put it to a vote. democrats are calling him out for it. we speak to one of the cosponsors. like bloomberg news, check us out on the radio,

listen up to us on the bloomberg app or sirius xm. this is bloomberg. ♪

emily: the green new deal is a sweeping proposal by alexander called to cortez. -cortez.o a strategy by senate majority leader mitch mcconnell to put it to a vote is called a move to shift a spotlight on two divisions between democrats. chuck schumer called the plan a cheap, cynical ploy. joining me from washington is blumenauer.earl

he is a cosponsor of the green new deal. what do you make of the pushback here? rep. blumenauer: my republican friends put through a tax deal that cost $2 trillion of additional deficit spending. something that was written literally while they were voting on it. never had a committee hearing. lavishing massive tax breaks on people who did not need them. now they are suggesting that having a broader view of -- a bolder vision for renewing the country, polite think i'm a change, and dealing with things like income inequality is somehow beyond our capacity. i think that is wrong. it is consistent with what they have tried to do as far as shifting the subject away from the failures of the republican in the white house and failed policies dealing with climate

change and economic development. we are going to try to provide an alternative. emily: what do you say to republicans who labeled as a socialism? or say it is too expensive? at. blumenauer: look policies we have now. we just best a farm bill that is subsidy forssive farmers who do not necessarily need it. at the expense of normal farmers and ranchers, smaller scale activities. there is socialism that is involved in supporting defense spending. doing with nuclear weapons programs that will cost us over $1 trillion for weapons that we do not need a cannot afford. socialism is in the eye of the beholder. why is it that we cannot negotiate drug pricing for the federal government, who is the

largest consumer of pharmaceuticals in the world? socialism is in the eye of the beholder. about i want to ask you the amazon situation in new york, even though it is not happening in your state. do you think there are winners and losers here are just losers? rep. blumenauer: it is an interesting statement. we are watching around the country. people are looking at the consequence of urban development that has placed strains on the fabric of community, and it needs to be done right. it seems clear that there was not the groundwork laid to work with the people in the affected community. , but wee some upsides have seen in seattle, some real problems that have been visited. every successful city has a housing crisis in this country.

putting together multibillion-dollar packages of incentives without really being able to address the challenges that people perceive in their in new york, a transportation system that is strange. there is a housing crisis there. people are concerned about what would happen and eight neighborhood that would be rapidly gentrified. thatnk it is a message every community needs to look at with businesses that want to expand their footprint. you start working with the community and dealing with needs people have. there was enough money on the you could have fashion something that would've been a win-win situation. you have been one of the biggest advocates in congress for the legalization of marijuana. was a hearing this week on marijuana banking, but must

banking industries do not want to service the marijuana industry. do you think there is movement on this? rep. blumenauer: absolutely. we have watched state after state approved initiatives to legalize some form of marijuana. now 47 states have some form of state legal marijuana. the problem with the banking industry is not that they do not want the money. toy desperately would like do business with a multibillion-dollar enterprise that is growing in leaps and bounds. but the federal government has an insane policy to deny these businesses that are legal at the state level from having access to financial services. i've worked on this issue for years from coast to coast. i've never met a single person who thinks there is any benefit in forcing legal enterprises and not have banking

services. if you care about money laundering, tax evasion, and theft. a very critical initial hearing. i think it will pass. and i think we will watch other things move forward in this congress like dealing with bipartisan legislation on research and allowing veterans in states where it is legal to be able to work with the da -- va on medical marijuana. this train has left the station and the station and a hearing this week was an important mark on the way. emily: thank you so much for stopping by. coming up, we continue our coverage of amazon pulling the plug in the art city. what the departure means for the states real estate market. and we are live on twitter. follow tictoc on twitter. this is bloomberg. ♪

j.p. morgan chase plans to run trials using cryptocurrency. tech will only involve tiny amounts of payments at the start. it is based on blockchain technology. continuing our coverage of amazon, the abrupt breakup was new york city sent a shockwave through the city's real estate community. amazon's arrival had promised thousands of high paying jobs and economic opportunities. now there are concerns over the market and the power tech companies have over the real estate market. i want to start, you worked at

amazon for a couple of years before joining redfin. your attitudebout as a former employee. they have faced backlash in your hometown of seattle. years ago, amazon was going head-to-head with our city council and were cast as villains. they do not want to have to deal with that all over in. they want to go someplace where they will be welcomed with open arms. they don't want to get into issues like housing affordability are wealth inequality. how will this impact the real estate market? to some of our real

estate agents in long island city and they told us that it was already on the up and up. there was are a lot of investment before amazon made its announcement and there has been a lot of growth and new construction. amazon leaving probably won't change that. island city long for a good reason. they have a really good approximate location to manhattan. have a chart here showing the distribution of amazon's real estate. the majority of it goes to data centers. office space is blue. so this is really a tiny portion of amazon's real estate expansion, which probably speaks to your point. what does it mean for northern virginia? will it bring benefits when it comes to the real estate market? or could we see pushback from those rather than -- those residents years down the line? they have announced another

and 5000thern virginia jobs in nashville. those areas will be better at absorbing good migrants and good jobs. nashville has had a great record for absorbing people moving to their city. because they have been able to supply, --housing emily: amazon saying they will not further pursuit and hq to search. they will stick with northern virginia and nashville as a sort of mini hub. do you think that is a loss for anyone? >> i think those cities are very able to absorb new amazon jobs. i think what will happen is some cities will be eager to take on new jobs, whether they are from amazon or other tech companies.

there will be some cities that really have to deal with their housing affordability issues before they can absorb new migrants. new york is an example. so our san francisco and seattle. they will have to look at rezoning increasing housing density before starting to take in more jobs. otherwise they will see their housing rates go up and have more on affordability -- unaffordable housing. emily: you are a seattle resident and you are very familiar with the pushback amazon got there. do they need to do a better job of dealing with the community? >> from their perspective, they have been a lot of positive things for seattle. i came to seattle for amazon because i was offered an attractive job and i really enjoyed living in seattle. i think seattle has benefited from the migrants that have come here. at the same time, amazon feels like they could go to another city that has more room to grow and bring prosperity there.

expands,that the city they had to do with inequality and the residents who have been there for a long time go up and they have to grapple with that. amazon's isk it is possibility. it is up to local governments to plan ahead in order to absorb prosperity. we appreciate you stopping by. coming up, this local politician has been at the center of the backlash against amazon. this is bloomberg. ♪

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emily: this is "bloomberg technology." story -- amazon scrapping plans to build a campus in new york city. before the payment of the plug, there was one person that could have potentially scuttled the deal single-handedly, and that is michael g norris -- michael gianaris. he joins us now from new york. also here, tom giles. for comingank you back here. do you think this is really a win for you? i do not view

this as a day to celebrate, but just a matter of standing up for new york and hopefully beginning a conversation nationally about if these corporate subsidy and incentive programs are with it. the largest company in the world coming to new york but only if they are able to squeeze 3 million public dollars to do it. to deal withilling legitimate concerns that the community had, negotiated this deal in secret, and when it was discovered by the public, the public outrage disturbed them. all we did was raise our hand and say we have some questions about this deal, and that of dealing with a, they think of their ball and went home, so it says a lot about them and how they do business. you've been following developments all day.

what is the latest you are hearing? tom: goldman sachs' ceo, blankfein, came out very critical of the backlash. emily: i actually have the tweet. tom: i guess i would put the question back on the senator. when it is all said and done, the sense is that the real turning point was the possibility that you were going to join that commission that had veto power over this. i would love to hear your yoution to the idea that were very much the linchpin in getting this deal scuttled. sen. gianaris: as much as i like to give myself also as of credit, it's a little bit laughable. as we talk today, i do not sit on this board. i was a nominee. the governor gets to appoint me

or decline the appointment. he did not do either as we sit here talking to the fact that there was a surge of opposition a poll 70% figure was commissioned by amazon itself, so the leave it if you want. i choose not to because i have talked to people over the last month. there was great concern about what it would do to the housing market, great concern about the already stressed subway system currently already stressed schools, and there was never a dialogue about how new york city and long island were going to accommodate the present of this giant footprints they wanted to place. for they said was give us the $3 million, we don't want to talk about the rest of it, and if we don't get our way, we are leaving. when the city council did to try to raise revenue to provide service for the homelessness crisis caused in part by amazon

's effect on the housing market, they threatened not to finish construction on a building that already started. thatn customer learned they are not bigger than new york city and should not be bigger than any government body in this city that speaks for its people. they do not get to dictate to governments what they need. they should work collaboratively like this onslaught of the citizens when they want to enter a community. 70% of newon said yorkers supported this. we looked at an independent for the set 57 percent of new yorkers support this, but when you look at the second question about if they support $3 billion in financial incentives, they are more split. said,r that, so that there is potential here if you had worked it out. now you have not. amazon has pulled out. is that a loss for new york? >> we always like jobs and job growth and this was an

opportunity. right away, in their statement announcing this decision, they also said they are going to continue to grow their presence new york city locations where they already have a presence. one wonders how many people will be grown into those other areas without the promise of these incentives at all and how much that will compensate for this decision, but we also should put it in context. new york city over the last decade or more has been growing jobs at a rate of about 90,000 for years. we talked about 25,000 jobs over 2%or 15 years, it is about of the normal job growth in new york city. it is not insignificant. all of jobs and greater employment, but it is also not some earth shattering situation the link it has been -- the way it has been presented. >> income taxes from individuals that would have moved to new york, the different corporate

taxes that you would have been able to collect from amazon would really have washed away that $3 billion in incentives. are we talking about tax receipts that could have been used to improve infrastructure, the subway, and in turn, creates more jobs for new york? an. gianaris: it is interesting argument, except i would say to you new york city has been growing over the past decade. and yet, the misplaced priorities of decision-makers have not led to investment in that critical infrastructure, so i have no reason to believe this would be different. at the end of the day, this was a giveaway to a corporation that demanded it in order to come here and the deal never should have been made in the first place. once it was, when people who most affectedbe by said let's put a positive this and discuss what this means for all of us, they decided to leave. emily: i asked councilman van show, earlier on the

considering what you just said, do you have any concerns about the political consequences for you? sen. gianaris: no, i do not. i do not do things because of the political consequences. i do the best for my constituents. i am confident in the way i have purported myself. there was no consideration, zero consideration about what this would do to the people of long island city who get priced out of their homes, the parents who already do not have enough school seats for their kids or the commuters who as it exists today cannot get on the seven whichon vernon boulevard, was where this facility was going to be built. i cannot even fathom what the effect of increasing the population of that community by 50%, what that would have done to that neighborhood without any consideration of the affects of those things in the people spoke

up and said, wait a minute, what will this mean for us? the moment someone started speaking for them, amazon grabbed its suitcase and left. it tells you a lot about what they think of the communities where they set up. one of the executives said they did not care about the people being displaced. well, i do care about the people and that shoulded not lead to someone acting like a petulant child and picking up their ball and leaving town, which is what amazon did. emily: coming up, we discuss amazon's influence among investors and venture capitalists and what this decision means. this is bloomberg. ♪

emily: what does amazon's decision to pull out of new york mean for tech investing? we are joined by flying fish cove is -- flying fish partner and cofounder and the founder of techonomy. obviously, you're familiar with the impact amazon has had on seattle. what do you think about impact of this decision is on new york's economy or will be? >> it is interesting for new york in particular. they have had a rising tech economy for a while and it has been a lot of press coverage about google moving and an itseasing -- and increasing footprint there, but what i

think is interesting is what we have seen in seattle and silicon valley is when you have major anchor tenant companies like amazon that are on the cutting edge and continually coming up with new businesses to start, it is very valuable to the rest of the start of ecosystem. it attracts venture capitalists and other large companies which we have certainly seen here in seattle. all of the big toys are here in large part because of microsoft and amazon headquarters here. new york has lost a good opportunity to add that anchor tenant to their tech ecosystem, and that will have reverberations, i'm quite sure. only: we talk about techlash the show, that's my word for the pushback on tech companies that in the past have always been welcome. do you think this is part of a longer running trend? >> income inequality is a huge force in american and global

culture right now, and the fact that it is the world's richest does play in. there was a feeling of wrongness bet these tax breaks would going to jeff bezos' company. i would disagree with your other guests. as a new yorker, this is not that big of a deal for the new york tech economy. look at the scale of google's expansion. they just announced a new campus in addition to the one they already have. i do think it would have been better for new york if this deal had gone through, but i also know there's tremendous concerns about gentrification and amazon did not engage with the community effectively. i think it is somewhat petulant as the state senator in your earlier segment suggested. when they got resistance, they just said, you know what? we're going home. i don't admire that.

emily: amazon could have stuck at the table longer and try to work it out, right? >> they certainly could have. one of the things that is hard to internalize if you are on the outside, particularly if you are in early-stage tech, i think we do not understand how hard it is for these very large companies to make moves quickly, so for amazon to make a big investment and continuing this process with a very uncertain outcome right populace and the politicians are all over the map. i think it is very hard for them we can bet the future of some really big initiatives we have on this going the way it was advertised to go for us. when i think of who failed in this overall picture, i think it is very much the political leaders of new york. when you think of who should have had the conversations with the unions, with the

representatives of that specific community, you know, why was the senator you had on earlier not brought into the confidence of the mayor and governor earlier what we should do and why, what the company is prepared to do, let's get this all done so we don't have this big a big hole of uncertainty in front of a very large company that has to build up the space for a growing workforce -- the planning required for that is just huge and the risk they would be exposed to if they stuck it out and then ultimately failed to get approval for what they have decided to build -- it is really a large risk. as a shareholder of a publicly held company, you would not want your company to take that kind of risk if they did not have to. emily: we have this, we have the facebook,gainst congresspeople looking into it, google as well.

how does this impact your outlook on tech this year? in the doghouse. another story the washington post reported today is ace book may be paying a multibillion dollar fine for violating its -- facebook may be paying a multibillion dollar fine for violating its decree on privacy. facebook has demonstrated they do not know how to deal with pushback. these are immature companies in general and i think they have become haughty and somewhat arrogant, and i think we see that in both situations. i think it would have been better for new york if amazon came here, but the entire process amazon drove from the beginning of announcing its second headquarters project was supersecret and in very many people's opinion quite furtive and manipulative the way they in,ed all the cities grabbed at all this data. everybody was throwing money at them.

it was not an attractive process in my opinion and i don't think .he company handled it well emily: lots more to discuss as we watch the fallout from this. amazon deal was the a good one stifled by bad politics? we will talk about that with a supporter next. this is bloomberg. ♪

emily: real estate flipping has gone high-tech thanks to algorithms. zillow better known for operating apps that help users buys houses,ow fixes them up, and resells them and guarantees providing simple and fast transactions. a new study finds new york city is the best place on the planet

for technology. some people in silicon valley might quibble with that but new york ranks first in an index tech heavy cities. amazon may have had the right idea, but politicians did not see it that way. with the tech giant out of the city, one of the -- what are the impacts new york might face? the director of tech n.y.c. which represents the companies and leaders that make up the city's fast-growing city joins us. this? a loss is >> i was definitely in favor of the deal. it's really disappointing. it's a big loss. you are talking tens of thousands of jobs that as of this morning were going to come here and as of right now are not. while we are incredibly disappointed and think this is a huge missed opportunity for the

tech ecosystem but much more broadly for the city and even the region, the tech ecosystem is still growing. tech in new york is in really good shape, as you said at the outset, and we still feel quite bullish about that. emily: amazon shares did not change much today, ended the day 1% down. does this affect amazon's business? >> longer-term applications are different, but if you look at expectations for this year and next year, this does not impact them because it was mostly a multiyear plan to expand corporate offices. the spending going up this year's mostly on aws and logistics and content. near-termnot impact expectations for amazon at all, but longer-term implications with the political backlash, regulations, those things on order.o be

emily: what does it mean for new york's tech ecosystem? is this an opportunity, or does this now leave a vacuum? >> i think you have to think about what we see here already. amazon is committed to new york with 5000 jobs and i understand those will continue to grow. new york has seen incredible, really great incremental job growth in the sector. we have well over 300,000 tech jobs in the city. at number will continue to grow. tech companies want access to the unique things you find in urban landscapes, particularly new york. diverse talent base, amazing academic institutions, cultural and arts institutions, public transit, when it's working. these things that are uniquely new york. these companies will continue to come here, i have no doubt. they will continue to grow here. you will also see companies that we don't think of traditionally as tech companies increasingly are becoming tech companies,

that the tech ecosystem will continue its growth. is aissed opportunity here really big bet. we are about thousands of jobs here and there over years. that disappointing to lose in one day. emily: from what you hear from theyentrepreneurs, what do say? >> by a large, disappointment. -- byhose who had been and large, disappointment. from those who have been diligently growing the ecosystem, what amazon meant, the idea that as you attract more engineers, as you train more new yorkers to be engineers and entrepreneurs and they come to the amazon ecosystem and the google ecosystem and leave and build their own companies and hire their networks and that is how an ecosystem grows, and that is what took a hit today. to turn totime, another big story we have been

following today, "the washington post" reporting facebook could face a multibillion dollar fine over privacy practices. we do not know the exact number, but how big a blow is that? >> if you look at what happened , it was basically a one quarter hit and moved on. with facebook, the worry is more about what is coming next. the last record fine was $28 million, so we do not know how big this will be in that context, but what is coming next is sort of what scared us more than what we saw with google. emily: a little bit more from this washington post report, the fine has yet to be agreed on, the ftc could take facebook to court if negotiations fall through. more broadly, could something like this force facebook to change its business model and could that have a big impact on

facebook's business? arene catalyst is they trying to merge instagram, messaging service, and all those two monetize that are. if regulators get in the way, on -- from apact business standpoint. >> do you feel the same backlash against facebook in new york that we have seen among customers in the media? >> i don't think so. facebook is a really great neighbor here in new york. they are part of the broader tech ecosystem. one of the things about tech companies in new york, today's news aside, is that they are really increasingly part of a very diverse economy. tech is not the only economic giant new york. in fact, it is not the economic giant in new york and that creates a much different political dynamic here.

with: i did sit down sheryl sandberg a couple of weeks ago, and she told me they were in talks with the ftc, so we will keep watching how this unfolds. both so much for joining us. wraps up a big day. the big news today -- amazon pulling out of new york city. we are going to continue to cover the fallout from this right here on bloomberg television. of course, we are live streaming on twitter. check us out on technology and follow our global news network tictoc on twitter. this is bloomberg. ♪ i'm a veteran

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hannity: a very good morning in sydney where australian markets ave just opened -- haidi: very good morning from sydney where us trillion markets have just opened. shery ahn: welcome to "daybreak asia." haidi: wall street closes lower in listless trade after disappointing retail sales data and signs that president trump will declare a national emergenc