a what amazon is the situation in which commerce occurs in a private arena and amazon sets the termsf trade. it basically creates thehe rules and regulations by which other companies and other participants are allowed to operate. i think in light of that, it is knows a price that amazon is expanding its presence in washington, d.c., because we have antitrust laws that are designed to put a check on this kind of concentrated economic power. i think jeff bezos clearly sees that as really the only threat to his future growth. so cozying up to federal government is part of his strategy. juan: i would like to ask greg leroy, on the whole issue of whether amazon needed to be courted and provided all of these subsidies to relocate to new york city or -- the reality is, because of the model they created of delivering products the same day in some cases, to people around the country, they need to be in certain places, specially the population centers. my students at rutgers university did a series of articles about the tent amazon warehouses that have developed in central new jersey to serve

york and the amazon headquarters. call (202) 748-8000. if you were in the eastern or central time zone, call in at (202) 748-8001. if you're in the mountain or pacific time zone, call in at (202) 748-8002. again, you can always reach us on social media, twitter at @cspanwj and on facebook. heard the things we have from both the york in virginia is that what they call performance-based direct incentives. guest: cities and states have gotten a little bit better over time in structuring their incentives and how they are offered, even though they are generally a waste of money. performance-based incentives apply that rather than giving a large cash handout, they offer subsidies based upon each individual job created or dollar of investment offered. the problem is these jobs in investments most likely would have been created without it. some of the best research at the upjohn institute finds only between 2% and 25% of the time to subsidies actually sway where a firm decides to locate. three out of every four subsidies, at

and say, oh, that is just amazon. we don't want to overly regulate them. they are not a danger. they want to normalize amazon and policymakers' minds. -- in policymakers' minds. there is an enormous amount of tech talent in the area, but i think that is a major application or side benefit that d.c. offers that no other city could offer. and the fact that jeff bezos has homes in both new york city and washington, d.c., that is what people were saying at the beginning that this could motivate the decision. i think a corporate executive finds himself flying to a given city very often. rather than staying in a hotel constantly, he says why not go ahead and build a home in the city and have a second home? it is a signal of the company getting ready to expand into the city. host: if you are a politician, a mayor or governor, and the state next to you is offering all of these incentives that you know you shouldn't. how do you explain it to your constituents? this is why we are not going to give to amazon or others. what is t

start new. >> it's amazon! >> they're hook to make a big splash. >> the impact, amazon's arrival. live team coverage right now. >>> first at 6:00, a lookorther. amazon released these renderhags. >> hugees are on the way and we have a team of reporters cover every angle of the transformation. >> we start with julie carey. reporter: hey, national landing? i think it will take a little while to get used to at. i want to call your attention on a dark space behind me. there is an old paneled ond warehouse. pretty soon, it is coming down and the new amazon east coast headquarters will take their place. >> reporter: these renderings give you a look at how the new amazon headquarters are expected to transform crystal city, pentagon city and potomac yard. it will fill up t vak an office spaces here. >> that's why i'm proud today to announce that amazon f hasnd its next hole for innovation right here in our commonwealth of virginia. >> amazon officials citing the work force as a factor. >> in this location amazon will be able to attract the top tier talent that will help innovate. >> the pa

>> how did amazon land on virginia? we've got team coverage of it all. >> reporter: if you haven't heard it already, get used to a name. national landing is what this new area headquarters called. and take a look. you see the old red brick warehouse? that is coming down. in its place a high prize will be the location of the newest headquarters building. these g renderinge a look at how the new headquarters are expected toransform portions of crystal city, pentagon city and potomac yard. more importantly it will help transform this area. >> thas why i'm proud to announce today that amazon has found itsext home for innovation right here in our commonwealth of virginia. >> reporter: the incentive package to lure amazon worth hundreds ofmi ions. virginia will pay $22,000 for each high paying job created. the figure could be even higher if the amazon work force expands. part of the commonwealth investment is aimed at high-tech talent to fill amazon jobs. or example, virginia will invest $375 million over the next two decades

amazon has become the go to.y capture nearly 50% of e-commerce sales amazon will continue to do that. i'm just saying the growth rates at amazon are going to slow dramatically as the physical stores learn to catch up it is all about competing. they carry a lot of the same products, offer a lot of the same prices, but the physical stores have the magic of convenience because you can go to the store or have the store come to you. that's a real asset. these physical stores are basically warehouses that fuel e-commerce strategies. amazon doesn't have that infrastructure target has over a thousand stores shipping miles to people's homes. it is a real asset that's been m misunderstood. >> i want your thoughts on jcpenney, earnings have not been good this year the stock is moving dangerously close to penny stock territory are we going to be talking about, consumers still shopping at jcpenney a year from now? >> i hope they are there are a lot of great people. i feel for people working in the stores there are a lot of pe

imagine two systems, the current one and imagine another ecosystem, apple, itunes, amazon, aws, amazon fulfillment, facebook, instagram, whatsapp, messenger, google, youtube which echo system has more hiring? which has more job creation? which has a broader tax base, more vc funded startups? which echo system probably has a company that will raise its and it's a as a value proposition to advertisers try to stand out we ensure the would not be objectionable content and to make the requisite investments to make sure no foreign government weaponized is this platform. competition is the key. these markets have become noncompetitive. these firms are effectively monopolies in the respective sectors i believe we need to embrace full throated full body contact capitalism and break these companies of. >> host: are these monopolies more or less a natural progression just like we're down to three car companies, the big three? >> guest: sure, but you have a lot of choice. i just bought a car, and there's a lot of great cars out there. if you are unadvertised and want to drive traffic to your websi

amazon, facebook and google and imagine apple, itunes, amazon, aws, amazon fulfillment, facebook instagram. and youtube.ogle which in ecosystem has more job creation, which has a broader tech space, more v.c. funded startups, which ecosystem has a that will raise attendance has a value added to advertiser trying to stand out and ensure we do not have objectionable content and we will make the investment to make sure that no foreign government weaponize is this platform. competition is the key here. markets have become noncompetitive. these firms are monopolies in their sectors. i believe we need to embrace full throated, full body contact capitalism and break these companies up. host: but aren't these monopolies more or less a natural progression, just like we are down to three car companies, the big three? dr. galloway: sure, but you have a lot of choice. i just bought a car. there's a lot of great cars out there. now, if you are an advertiser and you want to drive traffic to your website, you really only have two choices. you have google and you have facebook. if you're a consumer, ultim

some tell us they are interested in exploring possibilities with amazon. >> you see workingor amazon? >> yeah. i like bigger companies that do big things. >> ama county feels knitsf the work force coupled with its proximpi >>er cat worityo the for ce and a great match-up for this tech s system tort up the mid-size companies already here. >> this will offer digital masters degrees and doctoral s.gr >> this is going to be at the forefront of the entire world in math, science, especially computer science. >> reporter: thestimate they will begin hiring in the middle of next year. >>pi d the perceived positives, not everyone is loving the idea of amazon and its thousands of workers coming into northern virginia. the concerns about real estate. >> you have cranes everywhere and this is without amazon.ce just sin this morning's announcement,ocal realtors say they're experiencing wh they call the amazon effect. drivean through neighborhood you can appreciate what is so welcoming for young families. close to d.c. without all the congestion, yet. >> peopl see we'll see an instant impact. think

it amazon is the most reputable -- you write amazon is the most reputable? their execution is outstanding. they've done a great job managing the brand. amazon right now according to interbrand is the most trusted brand in the world. host: what do you mean by weaponize? prof. galloway: it's the ultimate trojan horse, this story of people breaching the walls with something innovative. imagine the trojan horse the spartans paid for. that's effectively what happened here. the most innovative thing in the last decade in terms of technology wasn't the apple launch, it wasn't amazon echo think it was russian intelligence, the russian intelligence arm of the russian government weaponizing facebook and blowing it up in our face, and subterfuge in our democracy using assets that we not only built but are the object of our affection. these platforms have been weaponize by bad actors. if these companies don't have regulation they are never going to connect the dots and ensure they won't be weaponize to get. the rhetoric coming out of facebook is, there will always be ba

acco, itunes, amazon, aws, amazon settlement, facebook, et cetera. [inaudible converstations] app, messenger, google, youtube which echo system is more hiring and more operation in which echo system is a broader tech space and more vc funded startups in which echo system is a company that will raise his hand and say i have spread value to advertisers and stand out that there will not be of sexual content and make the requisite investments to ensure no for government which arises the popper. i believe competition is the key here and believe market to be noncompetitive in terms of effectively monopolies in their respective sectors. the place full body contact capitalism and break these companies up. >> host: are these monopolies more or less a natural progression just like we down to three car companies, the big three? >> guest: sure but you have a lot of choice. i just bought a car and there's a lot of great cars out there. if you are an advertiser and want to drive traffic to your website you only have two choices. google and facebook. if you are a c

it will teach the skills amazon employees need. >> the plans were already in place, and amazon was a catalyst for this. >> this innovatn campus is really focused on creating more tech talent that will serve not only amon, but t existing and future business community. >> reporter: amazon begins to hire locally next year. >> reporter: i'm cory smith in crystal city, or, should i say, national landing. yep, that is the name amazon is callin h the newe of hq-2.e not every is onboard with the new name just yet. >> i understand that amazon wants to take the world over, t they don't need to change everything. >> glen levis loves it. >> it's tired, it's worn. start fresh, start new. it's amazon, man >> reporter: i'm david culver in the roslyn part of arlington county, where not everybody is loving this idea of amazon bringing their second headquarters to our region. one group launched a campaign several months back, trying to keep amazon from deciding on nortrn virginia as their hq-2 location. >> we're going to see, i think, n explosion in rents and housing prices. >> reporter: more than eve

currently with the holiday amazon -- 93% of items that overlapped, amazon is cheaper than target.almart, it was about 85%. the battlefront has become fierce. , it was armageddon this year for retailers. , thenes that remain battlefront has just become extremely fierce for them to compete. walmart havedoes an edge? where does target have an edge? >> they have to strategically think about where to put their stores. if you just go to battle with amazon on their battlefront with price and selection, you're going to lose. but if there is a convenience or discounts from coming into the store, things like that. what about more niche retailers and specific brands? seenlk about how we have many of them not survive the rise of amazon but i also wonder if some are stronger than ever because i can offer something amazon does not. -- because they can offer something amazon does not. are very big brand ride on the brande name and the cachet of that. that may be a reason for consumers to go into the store and shop. a consumer you are brand or a commodity retailer, you have to really win the toin

will be off of oracle and running amazon dynamo db or amazon aurora. 97% of the mission critical databasesl be off of oracle and run on dynamo db and aurora. on november 1st, we turned off our oracle data warehouse and moved it to red ship we're virtually done moving away from oracle on the database side and by mid-2019 we'll be done. >> wow, so that soon, before next year is done you'll be off oracle. >> that's our plan on the database side. >> about two months ago i was in orlando with microsoft, adobe and s.a.p. and they were talking about this open data initiative, this idea that they think it should be easy for customers to take data from one cloud and mingle it with data from another cloud and figure out how to run their business based on data that they have got stored with a number of different providers. philosophically, what do you think of that idea >> i think over time -- my suspicion is over time it will be easier and easier to move data around. people we see all the time in our business that people will move data around from one place to another the complexity of it is not to

amazon could move right in. >> project management, i.c., tech hardware. >> amazon is o of our partners. >> arlington is expensive but livable for now >> i'm actually a real estate agent so i know what's going to happ happen. >>> amazon workers would havce to good, public schools. >> only half of hq-2 is 25,000 workers and their falies. >> we' concerned about the schools. they're overcrowded as it is. it would be nice it jeff bezos can build as you new school. >> are youbo excited the possibility here? and n >> it's going to be ridiculous. parking is difficult here as it is. park? are we going to i can't even imagine. >> reporter: it's going to be a change but they'reryg to brand this as a win for the entire region. murial bowser said amazon is a win for d.c. it will be part of cstal city, pentagon city and even part of potomac yard. for more on how hg will impact our area, here's justin finch. >> reporter: we are a looking a potential huge economic windfall for our area here.ht you m recall the initial call for amazon hg-2 is for 50,000 jobs. reports say we can see about half that comi

often i have said amazon would be the first. where i was preaching that amazon would be the first trillion dollar company so maybe an honorable mention over two or $300 billion. >> host: but you write amazon is the most reputable company? we mac it is the most trusted because they are not in the business they do a great job managing the brand the most trusted brand in the world. >> host: what you mean by weapon eyes? we mac if those breaching the laws imagine the trojan horse that paid for in the object of the affection. there was an apple potter amazon eco. weapon i using the object of our affection. and then to use our own - - assets we had not only built but the object of our affection. they absolutely have been recognized in what has become clear with these externalities they will never connect the dots to ensure the safety they will not be weapon eyes again. there will always be bad actors to say it will happen again. >> host: facebook is thought to be the best firm to work for? >> yes. there are different surveys but the a

it's already number one on amazon. kick off

amazon. it's the trillion-dollar company that has everything from a progressive show about transgender family to an overnight shipping of an inflatable dildo chair, which sat $49.99 is an absolute steel stael, people. you can't put a price on pleasure. anyway, as you know by now-- something is still on my face. ( cheers and applause ) you ghie goois weren't even going to tell me! you guys weren't even going to tell me! you were going to let me do the show with the stuff on my face. anyway, asun by now, this week amazon announced they're going to be opening two new headquarters, which sort of defeats the purpose of "headquarters." but whatever. although politicians in new york are take a victory lap at getting amazon to move into their state, some people are giving the move one star. >> amazon's decision to put part of its new headquarters in queens brought a bit of a backlash. >> in long island city some people are voicing concerns about their new neighbors. >> this is one of the big concerns

those are amazon's major office locations. it is 11:00 a.m. on wall street. "squawk alley" is live ♪ ♪ ♪ >>> happy tuesday. welcome to "squawk alley." i am jon fortt, here with david faber, morgan brennan. carl is on assignment. and we start with the market tech coming off the worst day since october 24th, nasdaq dropping below the 200 day average with apple leading the slide. is this a clear sign of deteriorating sentiment for tech weighing in, bob peck, head of internet global investment banking at credit suisse good to see you. >> thanks for having me. >> at least in the short term it seems that some folks are souring on tech. what has fundamentally changed, aside from interest rate, trade stuff we are dealing with for months, is anything that different? >> you're right. investors are thinking about interest rates, trade wars, and regulation what's important, pull the lens back a little. look at the broader picture of how tech has done this year. nasdaq is up 4, 5% s&p and dow are up, we had a decent year. when you look at big tech names, microsoft up over

>> understand the amazon playbook. amazon is not a traditional merchant.are not making decisions on understanding the mechanics of the industry. they are looking at consumer purchase patterns of behavior of consumers who shop on amazon. what are they using? how much are they buying? what description do i need to put on it? what title? all of this creates decisions amazon is able to make through its automation engine. products go through the manufacturer. can i call the manufacturer that is producing goods for black & decker and directly work with them? amazon has started a program where manufacturers can directly work with amazon to cut the middle brand and sell items under a different brand name, which is amazon's brand name. products like paper towels, diapers, microwaves, things like that, and eventually getting into more fashion brands and things like that which might be a little harder for amazon to penetrate. emily: there's no question that amazon has an advantage. how do you see the competition with target, walmart, and other retailers playing out?

you buy stuff on amazon.heory is amazon is a monopoly when you buy on the third-party market are you buying from amazon or from a third company uber for example, are you dealing with the driver or uber. it opens up these questions. if apple wins it makes it easier for those companies. >> if apple loses what companies to keep an eye on. >> if apple loses, i think life returns to normal. but if apple wins it's a big victory for everyone who can point to someone else. like uber, airbnb. >> that's fascinating. thanks we're watching for campbell's re-open. as faber said a few moments ago coming to an agreement with third point, adding two members to the board i think we have the resumption of trade down 2%. between that and gm. and everything that's headed our way this week. powell and g-20. fed minutes on thursday. sales force earnings we'll get as well. >> yep that's coming. a number of tech stocks, including adobe. >> let's get to the judge. >>> carl, thanks i'm scott wapner and welcome to the most critical wee

emily: what about amazon?ecause you know this is a , company that has faced verbal and twitter assaults from the president. we will talk about german regulators later in the show. do you think tariffs could have an impact on amazon given their reliance on the third-party sellers? cathie: i don't think so. i think at the end of the day, amazon is all about customer first, delighting customer. the customer. i think that is awfully hard for politicians to fight. when their electorates love a product. and i feel the same way about apple. so if we get temporary tariffs, i do think they will be just that temporary. ,these are products that delight the consumer and these are the people politicians want to make happy. emily: now the wall street journal is reporting the trump administration has set up this roundtable with tech executives including the ceo's of microsoft , google, sundar pichai, who is scheduled to testify next week. do you think anything promising can come out of the meeting like this that you know wou

a big amazon customer. and there's already lots of o vacaice space from defense contractors that used to be here. but perhaps most important, this area has rkers, well educated workers and amazon has plans to hire 50,000 of them. >> i think i will be pretty awesome. i think it would potentially end up creating a better workforce around here. >> a source with knowledge says amazon had a lengthy koms conf call with local officials. among the topics, a big transportaon upgrade. the decision almost rests with the ceo jeff bezos who said just lale week you c as much data as you can, you immerse yourself in that data, but then you make the decision with your heart. bezos already owns "the washington post" and he's renovating a home here. no wonder three d.c. area locations made the nals. but is there enough tech talent here? that question is why amazon may be looking at splitting hq-2 in two. and why officials in the other finalists like nashville are not giving up yet. bids. can't compa i think there's, again, i

cartel office president andreas month said the decision to investigate is meant to address amazon's alleged anti-competitive policies and practices regarding treatment of third party vendors on the platform mr blunt said amazon access kind of a gatekeeper to customers the double role is biggest trader and biggest market place means there is a pick. henschel to impede other traders on the platform in september e.u. competition commissioner margaret vest of your announced an investigation into amazon's use of data it tames from those third party sellers and sticking with retailing renegade amazon what might surprise some is another revenue stream of the company to discuss we are pleased to be joined by the c.e.o. of strong mark hillary ford which and holland cook host of the big picture right here in r.t. america hilary but let's start with the hollande i want to start with you actually we've talked about cloud computing and that is the area that suspense is going its cloud computing but how big a deal is this for amazon at all and well it's very big read an analysis from jefferies th

. >> a company like amazon may invest themselves. >> amazon is known to be generous to employees. >> it will behe in self-interest if it's going to inefit everybody in the area the long run. >> amazon only plans to hire about a few thousand workers ans then thous after that. so there is time to make changes. >> we have much more on amazon's arrival throughout the hour. >> newly elected members of congress are getting the lay. la this week before they're sworn in next week, but their first order of business is to choose party leadership for the house and the senate today. tracee potts has more of what's going on on capitol hill. >> more than 100 new members of congress are in washington this week. >> it's very exciting obviously. >> some like mitt romney taking on the new acting attorney general. >> that's an interesting question. i'll get to talk to you about that but not yet. >> new york's alexandriaor ocasi ocasio-cortez. >> america voted in record numbers to deliver an nambiguous message. they wantedchange. >> tonight republicans have one common goal. >> make sure we win the major

emily: what about amazon? this is a company that has faced verbal and twitter salts from the president. now under fire from german regulators as we will talk about later. do you think tariffs could have an impact on amazon given their reliance on the third-party sellers? cathie: i don't think so. at the end of the day, amazon is all about customer first. i think that is hard for politicians to fight. when their electorate's love a product. i feel the same way about apple. if we get temporary tariffs, i think they will be just temporary. these are products that the light the consumer and these are the people politicians want to make happy. emily: the wall street journal is reporting the trump administration has set up this ground cable with tech ceostives including many including pichai who scheduled to testify next week. do you think anything promising could come out of the meeting like this that would impact an investment strategy? cathie: i do think it is good that they are talking. much better that than arg

s back and later there's some of amazon news the giant retailing read again also makes money from a place you might not expect holland cook host of the big picture here in r.c. america and the c.e.o. stroke mark over tours which will be with us all that coming up but first we get some headlines let's go to. banks breaking bad lead our global report today is scandals where around deutsche bank and dansk a bank on thursday morning a total of one hundred seventy german federal police and prosecutors raided and searched six separate deutsche bank office locations in germany including their headquarters in frankfurt the price of deutsche bank stock fell three point eight percent on the frankfurt stock exchange on the news in a statement on the action the bank confirmed what many suspected quote the investigation has to do with the panama papers and today in berlin deutsche bank spokesman george anggun door had this to say on the investigation. yvonne don i live i live and we believe that we have provided all relevant information to the authorities regarding the panama. of course we will now co

shira: and i was struck looking on amazon over the holiday on how much amazon was promoting its own productssaw a lot of deep discounts on it could devices and the ring which is the home security -- on echo devices and the ring which is the home security company that amazon now owns. as you said, there were promotions for things like prime video releases and amazon's digital music service in the -- and the four-star stores and bookstores. it is interesting to see how much amazon uses the holidays to promote itself. perhaps no big surprise there. brad: i will serve you up a softball. amazon appears to have coined the phrase in this press release. "the turkey five." i have not heard of this before. what is it and what you make of it? shira: i had not heard of it before either. turkey five refers to the five days between thanksgiving and cyber monday. i guess a frenzy of thanksgiving related deals. i've seen it somewhat catch on in the analyst community, much to my chagrin. if you can see my eyes rolling this morning when i read turkey five, it would have been quite a sight. brad: i think maybe

amazon is a good customer.ink they will be a bigger customer in the years to, if they continue to grow. they will do some of the deliveries for themselves for many reasons. the biggest single entity that --l lose traffic is amazon is the u.s. postal service. ceo.r: that was fedex groundup, foxconn broke for the first time in the u.s. and it is in desperate need of a workforce. bloomberg tech livestreaming on twitter. he sure to follow our breaking news network tictoc. this is bloomberg -- be sure to our breaking news network tictoc. this is bloomberg. ♪ ♪ in september, wisconsin became the home to the first u.s. foxconn factory. now, less than two months later, the maker is struggling to staff the facility. the company responsible for microsoft, apple and sony is china.g in workers from the author of the fall of wisconsin has spent months on the ground studying the deal. he joins us now from new york. of course, this was a huge announcement. president trump included, how big of a problem is it that this factory

amazon is 500,000 people.t's hard to remember for you, but for me, it was like yesterday i was driving the packages to the post office myself. i was hoping one day we could afford a forklift. so for me, i have seen small things get big. it is part of this mentality. i like treating things as if they are small. amazon, even though it is a large company, i wanted to have -- i want it to have the heart and spirit of a small one. the day one foundation will be like that. we will wander a bit too. we have some specific ideas about what we want to do, but i believe in the power of wandering. all of my best decisions in business and life have been made with heart, intuition, guts, you know, not, not analysis. when you can make a decision with analysis, you should do so, but it turns out in life that your most important decisions are always made with instinct, intuition, taste, heart, and that is what we will do with this day one foundation. the customer will be the child. this is so important. the secret sauce of ama

it's already number one on amazon. mrs. obama will kick off her tour in chicago today. >> and we continue to pay tribute to comic book legend stan lee. los ed yesterday in angeles. mourners layedrs flo and pictures of the super heros he created next to his hollywood star including superman, ironman, and the incredible hulk. he was 95 years old. an unusual sight in the the story behind this elephant found aming in new jersey. >> the owner of a california bar targeted we all want white teeth. you know doc how can i get whiter, brighter teeth. and the dentist really has to say let's take a step back and talk about protecting your amel. it's important to look for white teeth.l because n i believe dentists will recommend pronamel strong and bright because it's two fold. it strengthens your enamel, but then also it polishes away stains f whiter teeth. so it's really something that's a win-winan for the patienthe dentist. >>> according to police he was o er employee at the warehouse. victims were taken to the hospital in critical

shopper. >> i do most my shopping on amazon. >> amazon polling out all the stops trying to break i own cyber monday record. last year's was the company's biggest day ever, selling about 3.5 million items per hour. >> we expect it will be even bigger. we're offering bigger selection and bigger discounts than ever before. we're offering free shipping not just for our prime members. >> the forecast i a 20% in jump overall this year. black friday, famous for its brick and mortar deals, broke online shopping records up nearly 24% over last year according to adobe. >> cyber monday is becching so more important because online sales are up high 20s. that's where the growth is. that's where the business is to be won. >> amazon competitors intent on stealing market share with more people shopping online. big retailers are generally offering free shipping. but mostith strings attached. amazon's free for all will cottage with a cost. last quarter aman said it spent $6.6 billion on shipping, nearly double its operating income. but clearly something about its strategy is working. >> i'm buying thing

>> i think amazon is a big winner. they made the selection process highly public and the generated kind of a year of free publicity nationally and in each of the -- andin which amazon each of the city's for the location of hq two. i think amazon is probably the biggest winner here. emily: i know you are a skeptic about this, the you think amazon took advantage of cities in this process? >> absolutely. there is no doubt about it. as we were talking about, amazon got an immense amount of data from cities all across this country. it's not just publicly available data, this is data available about what kind of deals tax deals, tax breaks, subsidies that these administrations will put forth to lower in investment by amazon. a lot of this information was entirely secret and available to no other company. thisn is huge winner in problem is a general across the country in terms of how we treat large companies. emily: what did you think of jay carney's response to this? as a company creating this many jobs, shouldn't they be ge

i actually think amazon played this just right. t amazon did whateded to do as a company. the real fault -- and when i began to speak out on this was the u.s. mayors and governors, people i knoe,w and l progressive mayors bill de blasio and many others talking about upgrading jobs, having higher minimum wage, oese mayors know another and go to conferences like theon u.s.rences and mayors, why not have an agreement and s we're not giving amazon incentives, we're competing on the merits. we'll make investments onio educ public space, in transit, but why are we going to hand out hundredss hundr millior billions to a trillion-dollar company and the world's richest men? that was really the thing that galled me on this and p other people are the war progressive cities and mayors, our blu cities and mayors really caved into this competition. >> richard florida from the university of toronto, thank you so much. >> thank you very much, a pleasure being with you. >> woodruff: songwriter gabriel kahane wrote his latest album "book of travelers" while riding a train across the united

now let's get to amazon., some stuff we hit on before thanksgiving, i just want to make everybody clear, because there were a lot of reports out there that amazon is looking -- has bid in the first round on all 22 fox regional sports networks that are up for auction by allen and company and jpmorgan. the first round just ended in the last week. we should point out, i have gotten this confirmed by two sources with direct knowledge of the auction, that they did not bid in the first round -- liz: amazon did not bid? >> they did not. they may bid as this thing proceeds. they are kicking the tires on the other regional sports networks. but from what i have from two sources, directly involved in the bidding process, they did not bid on all of them. they are primarily right now in the first round interested in one of them, which is the yes network. we should point out that's the yankee entertainment network. it is basically sold on various cable operators here in the new york area. i guess you can get it elsewhere.

the day after amazon's official announcement on city exciting a supposed h.q. to which turned out not to be a new headquarters some critics are looking at a previously secret winning bid and calling them bad deals most notably in new york city here to discuss this controversial topic and the huge hype around the issue our noted amazon critic council member schama sawan of seattle john grace of investors advantage and servant of commentator steve malzberg thank you all for being here and now we know that cities committed to offer the greatest incentives but not all of them one actually there if you do some quick math at one point five billion incentives from new york city divided by twenty five thousand jobs that suggest they per job sudden city of forty eight thousand dollars new york magazine today asserted that real incentive figure is more about three billion dollars but either figure is it a good deal councilman you've got a whole lot of experience an out there let's start with you what do you think. well i think the spectacle of two hundred thirty eight am

>> anti-trust. >> for amazon?e. >> that's the president telling axios the administration is looking into whether google, amazon have violated anti-trust law. amazon has publish aid blog post confirming that new york city and northern virginia will be the site of its new headquarters, investing $5 billion, creating more than 50,000 jobs, jim. >> i think that these are companies that -- i don't want to put words in his mouth but historically he thought these were great american company doesing great things and he's an independent man. the justice department is not. you may say he's in charge, the president. the justice department has maintained its independence. >> being a monopoly is not necessarily -- beyond being a monopoly, that is the test. >> right you must be trying to put people out. now the best game -- if i were the president, they took this up to really hurt the competition, then they're able to undercut everybody but that's such a thin case. >> what do you do when your monopoly is disinflationary? >> see

amazon. amazon or amazon your smart sexy city that thinks outside. please join us. where should amazon locate h q two in fiscal well in the plot twist worthy of a bad television show amazon picks two big winners not just one the new offices will be in arlington virginia just across the river from washington d.c. and the new york city borough of queens now at this point jeff bezos the owner of amazon is presenting himself as your friendly neighborhood billionaire the team did a great job selecting the summits and we look forward to becoming in the even bigger parts of these communities but not all new yorkers are exactly thrilled many are concerned the already high cost of living will increase and others worry that small businesses will suffer the newly elected democratic socialist congresswoman alexandria kazuo cortez is ready for battle amazon is a billion dollar company the idea that it will receive hundreds of millions of dollars in taxes. breaks and it's time when i was subway scrambling and all communities need more investment not less is extremely concerning t

amazon could turn new york city into a version of silicon valley by making it an incubator where amazon workers quit to create other tech companies. >> to be clear. in wisconsin they will train wisconsin workers. they are going to improve their skill set in wisconsin schools. they don't have the skill set now but they will in a couple years to get the high-paying jobs. when you get high-tech companies in your community it's great for spawning new growth. because the skill set in the communiti' is good as well. liberals argued against donald trump. he reduces taxes and lower regulations. the liberals are hitting him for that as jobs are coming back from jeff seas. donald trump did the same thing and they bash him every single day. lower taxes, less regulation, big companies, small come any, and more jobles for our country. i don't think they understand what impact the taxes and regulations have. and i think it would be great if amazon had looked elsewhere and we didn't see northern virginia, a suburb of d.c. and new york city. if they had gone to mitch mcconnell or kansas city or somewhe

shira: i think amazon is the big winner.hey have made the selection process highly public, so it has generated a year of free publicity, both nationally and in each of the cities in which -- in each of the cities vying places location of hq2, like birmingham, calgary, alberta. so i think amazon is probably the biggest winner. emily: barry, i know you are a skeptic about this, but do you think amazon took advantage of cities in this process? barry: absolutely. there's no doubt about it. as we were just talking about, amazon got an immense amount of data from cities across the country. and it is not just publicly available data. it is data about what kind of deals, tax deals, tax breaks, subsidies, will these administrations put forth in order to lure in investment by amazon. that information is entirely secret, available to no other company. amazon is, as just mentioned, a huge winner in this. this is a general problem across the country in terms of how we treat large companies. emily: shira, what did you think of jay carney'

we'll tell you where it looks like amazon may head and the latest move by amazon in the battle with targetrt and why you're going to benet. alth is coming up on "power lunch" each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate changes and airlines hedge fuel costs. all so they can manage their risks and move forward. it's simply a matter of following the signs. they all lead here. cme group - how the world advances. >>> welcome back to "power lunch" the online giant is going to pick northern virginia for the second head quarters scott is live in crystal city, virginia is that the place? >> reporter: well, we don't know yet, and all of those same reports say amazon has not made its final decision yet but the company has said that it would make a decision before the end of this year we have about eight weeks left to go in the year. it stands to reason the speculation is heating up. here are where things stand. "the washington post" repor

to amazon. there were others that reportedly offered more. maryland, newark, new jersey among others, would you argue that these companies would have placed these headquarters in the same place absent the subsidies? >> i do. you're right newark offered 7 billion well new jersey st. louis offered 7.3 billion, they didn't make it, incentives almost never determine where a company expands or relocates they can't, because they're not the big cost variable. less than 2% of a company's cost structure. it's the business basis. and talent pool. >> talent is the number 1, 2 and 3 criteria for corporate headquarters like this >> they're going to hire brain yaks they need a lot of talent. >> how does this stack up to past megadeals with cities were luring other headquarters. past ones have cost an average of $658,000 a job. per year obviously that counts that job for that first year, it really should be a.moramortized over te length of time >> the megadeal we put out is for the life of those deals, what we

amazon says this is a winner. virginia stand to receive $3.2 billion in tax revenue over the next 20 years with workers averaging over $150,000 a year. virginia will give amazon $573 million in breaks. $550 million a cash front and. and money from a long on for infrastructure projects. an average salary of $150,000. new york will give $1.525 billion in performance. that's and refundable tax credit and a cash grant for buildings being occupied the next 10 years so long as they hit those targets. not everyone is thrilled with this. the ceo of the national housing conference joins us in studio. when you talk about 25,000 jobs in each one of these major cities, each person getting $150,000 in salary. some people would say what's wrong with that? >> there is nothing wrong with that. but the trick is it needs to stay great news. the problem we have to deal with, when you put that's people into a community into a community over a short period of time you will see housing prices go up for renters and home buyers. if the a