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Since Lina Khan became Federal Trade Commission chair in 2021, she’s taken on Meta, Microsoft, and Amazon, and that’s made her a lightning rod for controversy. WSJ breaks down the battles she’s picked and why she’s willing to lose. Photo illustration: Xingpei ShenAmazon .com executives discussed how its pricing policies had a “punitive aspect” on sellers, according to internal documents quoted in newly unredacted portions of the Federal Trade Commission’s monopoly lawsuit against the company. The commission also said Amazon knowingly raised the number of irrelevant ads on its website to boost profits and alleged that executives intentionally deleted internal messages to thwart the commission’s investigation of the company.
Persons: Lina Khan, she’s, that’s, Shen Organizations: Federal Trade Commission, Meta, Microsoft, Federal Trade
A renovated home in Aspen, Colo., is set to be sold via auction as a package deal with a ranch about 30 miles away. The sellers are entrepreneur Daniel Burrell and his wife, Nikola Burrell. Daniel Burrell said he paid $19.5 million for the estate on Aspen’s Red Mountain in 2017, then spent years on the renovation before moving in about a year ago. The Burrells bought the roughly 4,200-acre ranch, which they use as a getaway, for around $18.5 million in 2021, he said.
Persons: Daniel Burrell, Nikola Burrell Organizations: Burrells Locations: Aspen, Colo
CNBC's Jim Cramer on Thursday said his "Magnificent Seven" mega-cap tech stocks stood out during earnings season, even though they took a hit as investors fretted over an unsettled bond market. But many of the stocks have since recovered from post-earnings declines, Cramer noted, perhaps leaving some sellers full of regret. Cramer dubbed investors' reactions to Alphabet's Google Cloud miss "extreme," saying the stock is starting to come back. Apple reported Thursday after the market close, with its stock seeing a pullback in after-hours trading. "I think it's safe to say that the sellers missed out on a real buying opportunity and, worse, they created that opportunity themselves," Cramer said.
Persons: CNBC's Jim Cramer, Cramer, Cramer's Organizations: Big Tech, Apple, Nvidia, Microsoft, Google
Major auction houses are hedging their bets in the fall season of sales that begins Monday, offering fat guarantees to sellers to secure their works — and pricing some of their top items more conservatively after the spring season demonstrated weakness in the blazing-hot $60 billion art market. And now, sellers are trying to anticipate how the uncertainty of a new war in the Middle East will affect them. Auctioneers at the three rival companies, Christie’s, Sotheby’s and Phillips, have been digging deeper into private collections for one-off paintings that might spice up their modern and contemporary art sales, given the thinning availability of estates to draw from (typically driven by deaths and divorces). “We have built the sale in a very old-school way,” said Alex Rotter, chairman of Christie’s departments overseeing 20th- and 21st-century art, who said that his team shopped around individual collectors to acquire works by Joan Mitchell ($25 million to 35 million), Claude Monet ($65 million) and Francis Bacon ($50 million). “We went for paintings that would create the most buzz.”
Persons: Auctioneers, Phillips, , Alex Rotter, Joan Mitchell, Claude Monet, Francis Bacon, Organizations: Sotheby’s
Home values have held up this year despite historically high mortgage rates, but a new report from Realtor.com suggests that property prices could fall under pressure in the coming months. The firm said that price growth was flat — even as mortgage rates rose to a 23-year-high. Higher borrowing costs dampened demand, though it's possible homebuyers were worried that mortgage rates would soar even higher and wanted to buy before that could happen. Limited supply kept property prices afloat, as Realtor.com found that inventory fell 2% from October 2022. 13 cities where sellers are cutting pricesWhile listing prices are falling across the nation, the trend is especially noticeable in the South and Midwest.
Persons: Danielle Hale, Realtor.com, Hale, it's Locations: West, Midwest, Antonio , Texas, San Jose , California, Memphis , Tennessee, Dallas , Texas, Miami , Florida, South
Amazon flooded its search results with irrelevant "defect" ads at the direction of Founder Jeff Bezos, pumping Amazon profits while steering shoppers to higher-priced goods, the Federal Trade Commission alleged in a newly unredacted portion of its antitrust lawsuit against the company. Amazon began running ads on its site over a decade ago, allowing brands and sellers to bid for higher placement in search results to have their product stand out from competitors. Amazon in 2022 began breaking out advertising revenue in its quarterly earnings reports, revealing just how big the business has become. Last month, Amazon said its ad business brought in more than $12 billion in revenue in the third quarter. "Kantar, an independent data and insights firm, found Amazon's advertising to be the most useful and relevant to customers around the world."
Persons: Jeff Bezos, Bezos, David Zapolsky, Tim Doyle Organizations: Federal Trade Commission, FTC, Amazon, Microsoft, Facebook Locations: U.S
watch nowThe late Ivana Trump's townhouse in New York has sat on the market for one full year with no takers. He was hired by Ivana Trump's estate, which benefits her three children Ivanka, Donald Jr. and Eric, according to Erickson. Ivana Trump's former NYC townhouse sits between Fifth and Madison Avenue on 64th Street. Living room Evan Joseph / Douglas EllimanPublic records show Ivana bought the limestone townhome in 1992 for $2.5 million. Primary bedroom Evan Joseph / Douglas EllimanIvana's former en suite bedroom spans the entire third floor and includes a fireplace and terrace.
Persons: Ivana Trump's, Ivana Trump, Donald Trump's, banister, Evan Joseph, Douglas, J, Roger Erickson, Douglas Elliman, Ivanka, Donald Jr, Eric, Erickson, It's, Ivana, Louis the, Jonathan Miller, Miller Samuel, Miller Organizations: Madison, Miller Samuel Inc, CNBC Locations: New York, Versailles, Fifth, St, NYC
The FTC's excerpts say the tool - codenamed “Project Nessie” - has been used by Amazon to pinpoint products that will allow it to rake in more cash. The company used it to predict where it can raise prices and have other shopping sites follow suit. Amazon activated the algorithm to raise prices on some products, and when other sites followed its lead, it kept the elevated prices in place, the agency said. The agency said Amazon deployed Project Nessie in 2014 and has turned it on and off at least eight times between 2015 and 2019. In 2018 alone, Amazon used the algorithm to set prices for items that were viewed more than 400 million times by shoppers, according to the complaint.
Persons: Tim Doyle, ” Doyle, Jason Del Ray, Nessie, Doyle, “ Nessie, Jeff Bezos Organizations: Federal Trade Commission, FTC, Amazon, Wall Street Journal, Nessie
The decline brought the average rate on a 30-year mortgage down to 7.76% from 7.79% last week, mortgage buyer Freddie Mac said Thursday. As mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already out of reach for many Americans. The average rate on a 30-year home loan climbed above 6% in September 2022 and has remained above that threshold since. And higher yields on 10-year Treasurys tend to push up mortgage rates. The average rate was unchanged from last week at 7.03%.
Persons: Freddie Mac, , Sam Khater, Freddie Mac’s, it’s, Lisa Sturtevant, Bob Broeksmit Organizations: ANGELES, Treasury, U.S, Federal Reserve, Bright MLS, , Treasury Department, Mortgage, Association, Locations: U.S
The Chicago-based NAR said Thursday that Bob Goldberg would be stepping down after a 30-year career at the trade association. Nykia Wright, former CEO of the Chicago Sun-Times, was tapped to take over on an interim basis, beginning Nov. 20. Real estate agents must be dues-paying members of the NAR in order to advertise themselves as Realtors. Its size and influence in the U.S. real estate industry has not only made the trade association a target in litigation, but also brought it under the scrutiny of the Justice Department. The department filed a complaint in 2020 against the NAR, alleging it established and enforced rules and policies that illegally restrained competition in residential real estate services.
Persons: Bob Goldberg, Nykia Wright, Goldberg, , Wright, Kenny Parcell, Tracy Kasper Organizations: ANGELES, National Association of Realtors, Chicago Sun, NAR, The New York Times, Realtors, Justice Department, of, U.S ., Times Locations: Chicago, Kansas City , Missouri, Missouri, The, Utah, U.S, Western, of Missouri
Morgan Stanley’s new CEO inherits rich pickings
  + stars: | 2023-11-02 | by ( John Foley | ) www.reuters.com   time to read: +7 min
A good place to start is outside Morgan Stanley’s home market. Morgan Stanley’s two last big acquisitions were chunky, at a combined $20 billion, but also filled niches. E*Trade, an online brokerage, brought millions of households and company employees that Morgan Stanley hadn’t previously served. Eaton Vance, a U.S. asset manager, peddles investment products that Morgan Stanley now funnels through sales teams in far-flung markets. CEO Jane Fraser shows no inclination to sell private banking, which for now sits within the group’s $756 billion global wealth management bucket.
Persons: Ted Pick’s, Morgan Stanley, Pick, James Gorman, Morgan, Gorman, Germany’s, Britain’s, Morgan Stanley’s, Morgan Stanley hadn’t, Eaton Vance, Smith Barney, watchdogs, Jane Fraser, It’s, Noel Quinn’s, Ping, Colm Kelleher, Ted Pick, Peter Thal Larsen, Thomas Shum Organizations: Reuters, Credit Suisse, McKinsey ., Morgan, Reuters Graphics Reuters, Infrastructure, Citi, U.S, HSBC, HK, UBS, Thomson Locations: U.S, American, Asia, Pacific, Japan, India, China, French, Europe, Switzerland, HK, Swiss
Mortgage rates have cooled somewhat in recent days, and 30-year mortgage rates are now the lowest they've been since mid-October. If the Fed is able to stop hiking rates, mortgage rates should recede a bit. See more mortgage rates on Zillow Real Estate on ZillowToday's refinance ratesMortgage type Average rate today This information has been provided by Zillow. But whether mortgage rates will drop in 2023 hinges on if the Federal Reserve can get inflation under control. This means your entire monthly mortgage payment, including taxes and insurance, shouldn't exceed 28% of your pre-tax monthly income.
Persons: isn't, Jerome Powell, Powell, you'll, Fannie Mae Organizations: Federal Reserve, Zillow, Fed, Mortgage, Association, Sky Locations: Chevron
About 90 percent of the students who reported vaping said they used flavored products, citing favorites that tasted like fruit and candy. Public health experts also linked other state and local flavor bans and education campaigns to the falling high school vaping rate, which is the lowest in nearly a decade. In all, about 2.1 million middle and high school students reported using e-cigarettes, down from 2.5 million last year. While the agency has authorized about two dozen vaping products for sale, thousands of illicit candy-colored flavored vapes have flooded the country and are top sellers. Other researchers noted that the combined general use of tobacco products by middle and high school students barely fell, to 10 percent this year from 11 percent last year.
Persons: vaping, Juul, Brian King, There’s, Dr, Neff, , ” Dr, , Karen Knudsen Organizations: Public, ., Food and Drug Administration, Federal, University of Southern, American Cancer Society Locations: California, University of Southern California
It has earned Amazon more than $1 billion from US households, newly unredacted portions of the suit allege. Public revelationsThe complaint’s newly unsealed portions, filed Thursday in Seattle federal court, uncover a wide range of previously non-public allegations. More than 70% of Amazon shoppers do not click past the first page of search results, according to the unsealed complaint. In another situation, Amazon allegedly took steps to promote its own, proprietary products — such as the Amazon Kindle tablet — as having been recommended by expert reviewers when the Amazon products had not earned such a recommendation. If the Amazon price went up, the competing retailers would increase their prices as well, according to the complaint.
Persons: Amazon’s, Jeff Bezos, Biden, , Tim Doyle, ” Doyle, , Nessie, David Zapolsky Organizations: Washington CNN, Federal Trade Commission, Amazon, FTC, Amazon Prime Locations: Seattle, Bezos
Apple shares, which have risen 37% so far this year, dropped 3.4% after-hours, following the forecast. Maestri said Apple expects to have higher iPhone sales for the fiscal first quarter, even though this year's holiday quarter has one fewer week of sales than the year-ago. Cook said the company's new high-end handset models - the iPhone 15 Pro and Pro Max devices - are facing supply constraints. Apple's sales in China fell to $15.08 billion from $15.47 billion in the fourth quarter a year ago. Cook said that after accounting for foreign-exchange rates, Apple's business in China grew year-over-year, driven by iPhone sales and services revenue.
Persons: Tim Cook, Apple, Cook, Luca Maestri, Bob O'Donnell, Davidson, Tom Forte, Aly, Max, Nabila Popal, Lionel Messi, Stephen Nellis, Yuvraj Malik, Sayantani Ghosh, Peter Henderson, Matthew Lewis, Leslie Adler Organizations: Huawei, Apple, TECHnalysis Research, Mac, REUTERS, Huawei Technologies, U.S, Reuters, Pro, Apple Watch, Thomson Locations: China, Cupertino , California, Shanghai, San Francisco, Bengaluru
NEW YORK (AP) — “Junk fees” are just what they sound like: hidden or misleading charges that increase the total cost of concert tickets, hotel rooms, utility bills and other goods and services. Here's what to know:WHAT QUALIFIES AS A JUNK FEE? That should reduce junk fees for financial advice for people saving for retirement. HOW CAN I AVOID PAYING JUNK FEES? HOW MUCH DO THESE FEES COST CONSUMERS?
Persons: Biden, Ariel Nelson, Nelson, , , Lina Kahn, Lael Brainard, Charles Schwab Organizations: Federal Trade Commission, Consumer Finance Protection Bureau, Department of Labor, National Consumer Law Center, Republican, Consumer Financial, Department, Labor, Securities and Exchange Commission, Interest, White, National Economic Council, FTC, Associated Press, Charles, Charles Schwab Foundation, Inc, AP
The FTC says Amazon used a tool to predict where it can raise prices and have rival sites follow suit. The company used it to predict where it can raise prices and have other shopping sites follow suit. Amazon activated the algorithm to raise prices on some products, and when other sites followed its lead, it kept the elevated prices in place, the agency said. The agency said Amazon deployed Project Nessie in 2014 and has turned it on and off at least eight times between 2015 and 2019. In 2018 alone, Amazon used the algorithm to set prices for items that were viewed more than 400 million times by shoppers, according to the complaint.
Persons: , Tim Doyle, Doyle, Jason Del Ray, Nessie, Jeff Bezos Organizations: Federal Trade Commission, Amazon, FTC, Service, Wall Street Journal, Nessie
They're using AI to write product descriptions and analyze reviews to understand their customers. Sellers using e-commerce platforms like Amazon and Shopify are experimenting with AI to help them write product descriptions, optimize for SEO, and collate reviews so they can better understand how customers feel about their products. Matt Rollens owns a drinking-glass brand called Dragon Glassware and sells his wares on Amazon, Shopify, Etsy, and Walmart. Matt RollensHe told Insider he uses Perci, which uses AI to generate optimized product listings for Amazon sellers. Amazon, Shopify, and eBay have all launched their own AI tools and integrated them directly into the platform.
Persons: , Matt Rollens, Rollens, there's, Mikey Kim, Olivier Toubia, Toubia, Robert Gomez, Gomez, hasn't, Kaffe, they're, Miqdad Organizations: Service, Walmart, Columbia Business School, Target, QVC, eBay Locations: Shopify
A Big Legal Defeat for the Realtors
  + stars: | 2023-11-01 | by ( The Editorial Board | ) www.wsj.com   time to read: 1 min
Journal Editorial Report: The week’s best and worst from Kim Strassel, Bill McGurn and Dan Henninger. Images: AP/Reuters Composite: Mark KellyThe National Association of Realtors has objected to our editorials challenging its anti-competitive business model, but what do you know. On Tuesday a federal jury found the Realtors liable under U.S. antitrust laws for conspiring to fix prices in the class-action case Burnett v. NAR. Missouri home sellers challenged a Realtor rule requiring seller agents to provide a blanket offer of compensation to a buyer’s broker to list a home on the association’s affiliated multiple-listing service (MLS). These databases of homes for sale are similar to stock exchanges in that they match brokers and sellers.
Persons: Kim Strassel, Bill McGurn, Dan Henninger, Mark Kelly, Burnett Organizations: Reuters, National Association of Realtors, Realtors, NAR Locations: Missouri
An open house at a home for sale in Scarsdale, N.Y., early this year. Photo: Tiffany Hagler-Geard/Bloomberg NewsHome buyers and sellers face the prospect of major changes to how much and in what way they pay their real-estate agents, following Tuesday’s historic verdict against the National Association of Realtors and large residential brokerages. Those changes could range from minor tweaks to the commission system to a more radical restructuring of the residential real-estate industry, such as more people buying homes without using agents or buyers paying their agents by the hour.
Persons: Tiffany Hagler Organizations: Geard, Bloomberg News Home, National Association of Realtors Locations: Scarsdale, N.Y
China October factory surveys disappoint, weigh on Q4 momentum
  + stars: | 2023-11-01 | by ( ) www.reuters.com   time to read: +4 min
The Caixin/S&P Global manufacturing PMI fell to 49.5 in October from 50.6 in September, marking the first contraction since July and missing analysts' forecasts of 50.8 by a large margin. A slowdown in Chinese manufacturing will also soften China's imports. Following the release of the gloomy data, China shares (.SSEC) eased 0.15%, while Hong Kong's Hang Seng Index (.HSI) fell 0.75%. PMI surveys track business conditions and offer the first monthly snapshot of China's economic performance. New export orders for Chinese manufactured goods have shrunk for four consecutive months amid a relatively sluggish global economic climate.
Persons: China's, Hong, HSI, Bruce Pang, Jones Lang Lasalle, Goldman Sachs, Ellen Zhang, Ryan Woo, Kim Coghill, Lincoln Organizations: P Global, PMI, Manufacturers, London Metal Exchange, Jones, Goldman, Thomson Locations: BEIJING, Japan, South Korea, China, Guangzhou
The verdict could upend decades-old practices that have allowed real estate agents to boost commissions by forcing sellers to pay commissions to buyers' real estate brokers. Representatives of Compass and Douglas Elliman declined to comment. BTIG analyst Soham Bhonsle in an investor note said the fact that Douglas Elliman, Redfin, Compass and eXp were being sued by the same lawyers was a negative for their stocks. Zillow (ZG.O) shares initially fell 0.33% after brokerage Jefferies cut its price target, citing the impact of Tuesday's verdict. While Zillow is not a defendant in either lawsuit, Jefferies said Tuesday's verdict "increases the chances of a ban on commission sharing and Zillow having to pivot the business model."
Persons: Douglas, Mike Segar, Douglas Elliman, Berkshire Hathaway's, eXp, Glenn Kelman, Soham Bhonsle, Jefferies, Zillow, HomeServices, Chibuike Oguh, Jonathan Stempel, Michelle Price, Bill Berkrot, Matthew Lewis Organizations: REUTERS, World Holdings, National Association of Realtors, Compass, NAR, Thomson Locations: Manhattan's, New York City , New York, U.S, Kansas City , Missouri, Berkshire, America, Western Missouri, Missouri , Kansas, Illinois, New York
A jury found Tuesday that real-estate agents and brokerages kept their commissions artifically high. The verdict, she added, is "a wake-up call for real-estate agents." The seller might no longer pay out both agents' commissions after the sale closes. Currently, home sellers often list their properties for higher sums because they expect to pay broker fees. AdvertisementAdvertisement"NAR and corporate real-estate companies have had a stranglehold on real-estate commissions for too long," the plaintiffs' lawyer, Michael Ketchmark, said outside the courtroom Tuesday, according to the Journal.
Persons: brokerages, , Sissy Lappin, James Rodriguez, Rodriguez, Bernstein, Keller Williams, Michael Ketchmark Organizations: Service, National Association of Realtors, NAR, Wall Street, Keller, Keller Williams Realty Locations: Houston , Texas, Midwest
It also provides apps for merchants to sell directly on marketplaces like Amazon and Walmart, which are also building out AI additions for merchants. As part of the AI suite, Shopify launched AI app Sidekick, which helps sellers decide on inventory, promotions and marketing, lessening their dependence on third-party widgets. Analysts expect sales of Shopify's merchant products, which includes Shopify Magic, to increase 21% to $1.2 billion compared to last year, the first deceleration in four quarters. Shopify Magic is part of the company's long-term strategy to gain more merchants on its platform that will pay higher prices for its services. Shopify's subscriptions include Shopify Magic at no additional charge.
Persons: Chris Wattie, Jeff Hoffmeister, Shopify, Michael Morton, Hunter, Harley Finkelstein, Angelo Zino, Zino, Arriana McLymore, Josie Kao Organizations: REUTERS, Walmart, CFRA, Thomson Locations: Ottawa , Ontario, Canada, LSEG, Ottawa, New York City
"The story is on track, and I think you buy the stock," Jim Cramer said during Wednesday's Morning Meeting . Since its 2023 lows on July 13, Humana stock rallied more than 23% compared with a roughly 7% slide in the S & P 500 over the same stretch. Management's initial commentary on 2024 earnings and Medicare Advantage membership growth — discussed in more detail below — may also have left investors wanting. Humana also expects EPS growth in 2024 to fall on the lower end of its historical long-range 11%-to-15% target. Capital allocation Humana still expects to buy back about $1.5 billion worth of stock in 2023, finance chief Diamond said on the earnings call.
Persons: , Jim Cramer, they've, UnitedHealth, Humana, Susan Diamond, Diamond, Bruce Broussard, Jim Rechtin, Broussard, Jim Cramer's, Jim Organizations: Medicare, Revenue, Humana, UnitedHealth, CNBC, Inc
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