Amazon-Hachette feud: No end in sight

Amazon and its CEO, Jeff Bezos, rarely comments publicly about business issues. But it has weighed in on its dispute with Hachette.

NEW YORK (CNNMoney)

The unusual suggestion was made on Tuesday in an equally unusual statement titled "Hachette/Amazon Business Interruption." It was posted on an Amazon Kindle forum.

It was Amazon's first public comment about why popular books by authors like James Patterson and Malcolm Gladwell are being delayed and disadvantaged by Amazon, the world's biggest seller of books.

Amazon has reportedly been pressuring Hachette to let it lower prices for e-books and ultimately pay Hachette less for them. Hachette has resisted.

"Unfortunately, despite much work from both sides, we have been unable to reach mutually-acceptable agreement on terms," Amazon's statement said.

The online retailer rarely comments about business issues, but this one has gained widespread attention, in part because it has been so visible on Amazon.com. Some of Hachette's books have been listed as "out of stock." Last week, Amazon removed preorder capabilities for some books, according to Hachette.

The issue has also affected a wide swath of authors and journalists. Grand Central Publishing, an imprint of Hachette, published my book "Top of the Morning" in hardcover last year and in paperback this month. The book does not appear to have been delayed by Amazon.

Hachette first spoke out about the dispute with Amazon in early May.

In a letter to the company's authors last week, Chief Executive Michael Pietsch said, "Please know that we are doing everything in our power to find a solution to this difficult situation, one that best serves our authors and their work, and that preserves our ability to survive and thrive as a strong and author-centric publishing company."

Amazon's statement, which was unsigned, acknowledged that "Hachette has operated in good faith" but said that "the two companies have so far failed to find a solution." The statement added that "we are not optimistic that this will be resolved soon."

Amazon cast the battle as a rather ordinary part of the retailer-supplier relationship.

"When we negotiate with suppliers, we are doing so on behalf of customers," the company said. "Negotiating for acceptable terms is an essential business practice that is critical to keeping service and value high for customers in the medium and long term."

Amazon also said that the "business interruption" only effects about 11 out of every 1,000 items for sale on Amazon.com.

"If you do need one of the affected titles quickly, we regret the inconvenience and encourage you to purchase a new or used version from one of our third-party sellers or from one of our competitors," the company's statement said.

Hachette responded on Wednesday afternoon: "It is good to see Amazon acknowledge that its business decisions significantly affect authors' lives."

"By preventing its customers from connecting with these authors' books, Amazon indicates that it considers books to be like any other consumer good. They are not," Hachette's statement said.

The publisher said it would "spare no effort" to resolve the dispute with Amazon in a way that recognizes "the author's unique role in creating books, and the publisher's role in editing, marketing, and distributing them, at the same time that it recognizes Amazon's importance as a retailer and innovator."

First Published: May 28, 2014: 12:09 PM ET

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Apple buying Beats for $3 billion

Dr. Dre, who co-founded Beats, will join Apple.

NEW YORK (CNNMoney)

Apple (AAPL, Fortune 500) will pay $2.6 billion up front, plus another $400 million over time. Apple's getting stylish hardware from Beats Electronics and a streaming service with Beats Music.

The deal is chump change for Apple, which is sitting on a giant mountain of cash: $159 billion as of last year.

Related story: Why I broke up with Apple

Still, many think Apple is wasting its time with Beats. The music streaming service has an estimated 500,000 customers, puny compared to Spotify's 4 million subscribers. Pandora (P), which is valued by investors at $5.2 billion, has more than 250 million active accounts. Apple could buy 30 Pandoras right now.

But on Wednesday, CEO Tim Cook made his case. In a statement, he said the deal brings together "extraordinary teams so we can continue to create the most innovative music products and services in the world."

Apple expects the deal to close in late summer or early fall.

The winners of the deal are Beats co-founders Jimmy Iovine and Dr. Dre, both successful music producers who launched the company back in 2006 and quickly grew it via celebrity endorsements.

For his part, Dre is already calling himself "the first billionaire in hip hop." His stake in Beats, estimated at 20% to 25%, is expected to push his net worth of $550 million close to that number. But it's too early to tell if Dre is a billionaire just yet.
Meanwhile, Iovine described the deal as a match made in heaven. He said the whole Beats concept was inspired by Apple's perfect blend of culture and technology.

"I've always known in my heart that Beats belonged with Apple," Iovine said in a statement.

Dre and Iovine are also joining Apple, so Iovine is stepping down from his perch as CEO of the record company Interscope Geffen A&M.

First Published: May 28, 2014: 5:32 PM ET

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Why Snowden waited a whole year for his TV close-up

Edward Snowden appeared by videoconference at SXSW, but an interview with NBC is his first television sit-down.

NEW YORK (CNNMoney)

How long, they wondered, might he wait to have his first sit-down television interview, to speak out about why he did what he did? One month? Two?

Snowden actually waited one whole year, for reasons that have a lot to do with how the news media works.

Ben Wizner, the ACLU attorney who has been Snowden's legal adviser and liaison with the press, called the wait part of a "very very deliberate strategy all along" to make mass surveillance the story, not the man.

"Waiting a year meant that there was so much to ask him about other than himself," Wizner said.

Snowden ultimately decided to speak with "NBC Nightly News" anchor Brian Williams. "The interview with Williams was conducted in Moscow last week after months of preparation and is Snowden's first with a U.S. television network," NBC says.

The network will broadcast the highlights of the hours-long interview at 10 p.m. Wednesday. The interview comes just one week shy of the one-year anniversary of the first Guardian and Washington Post stories based on Snowden's leaks.

"What's going to be most interesting is to see if it moves the conversation or changes any minds," Williams told The New York Times.

Snowden, of course, has found many other ways to speak in the past year without giving a much-ballyhooed television interview. He spent hours with Bart Gellman of the Washington Post last December. He appeared via telepresence robot at a TED Conference and via videoconference at SXSW.

But "he had not sat down for the interview that would put him into ten million living rooms," as Wizner put it in a telephone interview.

Wizner said the long wait "made it much more likely that it would be a substantive conversation — because there was a year's worth of history that was made."

"I know there are still people calling him a fame-seeking narcissist," Wizner said. "The opposite is the case." While Snowden was and is willing to answer questions about himself and his motivations, Wizner said, he wanted the focus to be on the NSA's practices.

Wizner said Snowden's decision to speak with Williams first stemmed in large part from Glenn Greenwald's dealings with NBC. The Post's Erik Wemple noted that Greenwald briefly "worked as a freelancer for NBC News" and that NBC anchors have repeatedly interviewed Greenwald about his new book "No Place to Hide."

Will there be a second American television interview for Snowden? "I don't know," Wizner said. "I think we're going to let the dust settle first."

Also making media news today...

• Amazon has finally commented on its fight with Hachette. And Hachette responded...

• Chelsea Handler is the only woman with a daily late-night show. And in August, her show is ending. Where will she appear next?

First Published: May 28, 2014: 7:39 PM ET

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Correcting your credit report gets easier

(Money Magazine)

Pushed by the Consumer Financial Protection Bureau, major credit reporting companies Equifax, Experian, and TransUnion have changed their complaint systems to let people dispute reports' mistakes in greater detail.

Related: Best apps for taming your bills

Previously, any gripes and supporting paperwork you sent the Big Three were assigned a code reducing your argument to one of a handful of assertions, such as "Not his/hers."

It was this code that was relayed to the credit card issuer or other creditor supplying the information under dispute.

Now when you provide documents, the agencies have to forward that material to the creditor, letting you state your full case.

The creditor then has to fix any errors with all three agencies, which received about 8 million complaints about errors in 2011.

The earlier system "was a brick wall," says Bill Hardekopf, CEO of comparison site LowCards.com. "This gives you some additional clout."

First Published: May 27, 2014: 4:37 PM ET

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Rent gets cheaper at One World Trade Center

NEW YORK (CNNMoney)

The owners of the tower cut the rent from $75 to $69 per square foot on floors below the 64th in an attempt to attract more tenants. About 45% of the office space has yet to be leased.

The rate was too high even for such an iconic building, said Jordan Barowitz, a spokesman for Durst Organization, which oversees the construction and leasing of One World Trade Center, and also owns a minority stake. The Port Authority of New York and New Jersey owns the rest of the building.

Other office spaces in downtown Manhattan rent for closer to $50 per square foot, Barowitz said.

Related: Home prices remain on the rise

It's been three years years since Durst signed its first tenant, Condé Nast.

The media company is expected to occupy floors 20 through 44 before the end of 2014. But as of now, only two other companies have signed leases. The China Center, a liaison for U.S. and Chinese businesses, will occupy six floors (64-69). The local offices for the U.S. Army Corps of Engineers and U.S. Customs and Border Protection are planning to move in to floors 50 through 55 in late 2015.

"The next few tenants in that property are going to get a great deal on 21st century office space," said Dan Fasulo, managing director for Real Capital Analytics, a commercial real estate research firm.

One World Trade Center is just one of several buildings in the complex rebuilt after the 9/11 terrorist attacks. At 1,776 feet, it's the tallest building in the U.S.

There are 13 floors available at the new rate. Each offers between 3,500 and 4,500 square feet of office space. Floors above the 64th are more expensive. Durst asks for up to $100 per square foot for those spaces, Barowitz said.

First Published: May 27, 2014: 3:34 PM ET

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Michigan raises minimum wage to $9.25

What is the minimum wage in your state? Click the map to find out.

NEW YORK (CNNMoney)

The state's hourly minimum wage will increase in phases from $7.40 until it reaches $9.25 in 2018.

The legislature passed the bill Tuesday and Republican Gov. Rick Snyder said he expected to sign it Tuesday night. The law will also tie the minimum wage to inflation, so that it will continue to gradually increase after 2018.

Related: States act while Congress stalls on minimum wage

The governor called the raise responsible and said it "will help hard-working residents without hindering the state's improving economy."

While setting minimum wage at $9.25 brings it well above the federal rate of $7.25 per hour, Michigan lawmakers did not go as far as those in some other states.

Vermont's legislature approved a bill earlier this month that raises the minimum wage to $10.50 by 2018, while Maryland lawmakers raised it to $10.10 by the same year. Lawmakers in Minnesota, Delaware, West Virginia, Connecticut and Hawaii have also approved minimum wage raises this year.

A minimum wage hike to $10.10 at the federal level is supported by Democrats and President Obama, but is stalled in Congress. Opponents argue that raising the minimum wage forces businesses to cut workers' hours and jobs.

In Michigan, the wage hike received bipartisan support in the legislature. Two years ago, thousands of demonstrators camped outside the state house protesting a controversial change the bargaining rights of public workers.

First Published: May 27, 2014: 7:59 PM ET

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Production halt for India's iconic Ambassador

An Ambassador taxi on the streets during monsoon rain in Kolkata.

HONG KONG (CNNMoney)

Once the vehicle of choice for Indian politicians and bureaucrats, the Ambassador's design was borrowed from Britain's Morris Oxford. The car's look hasn't changed much since the 1950's, making it one of the most enduring sights on India's streets.

While the car's popularity has diminished greatly in recent years, the Ambassador is still used today as a taxi in several Indian cities including Kolkata. Last year, the Ambassador was named world's best taxi by the popular BBC show Top Gear.

The suspension of work at Hindustan Motors' Uttarpara production facility, where the Ambassador is built, has thrown the model's future into doubt. Only a few thousand of the cars are sold each year.

The company said in a stock market filing that it was working to fix substantial problems at the factory located near Kolkata.

"The Company has been transparent in sharing updates about the worsening conditions at its Uttarpara Plant which include very low productivity, growing indiscipline, critical shortage of funds, lack of demand for its core product, the Ambassador, and large accumulation of liabilities," the statement said.

Related: Inside Nissan's 'Taxi of Tomorrow'

Rajiv Saxena, a company spokesman, said that the suspension of work at the factory did not mean permanent closure.

"We have suspended operations to set things right for revival," he said.

-- CNN's Ravi Agrawal contributed reporting from New Delhi.

First Published: May 26, 2014: 2:47 AM ET

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Pfizer ditches pursuit of AstraZeneca

Pfizer has dropped its pursuit of AstraZeneca after repeated takeover attempts.

LONDON (CNNMoney)

The American drug maker announced Monday that it was withdrawing its latest in a series of unsolicited offers.

That bid valued AstraZeneca (AZN) at nearly $120 billion, a 45% premium over the company's share price in mid-April. If the deal had been accepted, it would have been one of the biggest drug takeovers in history.

But AstraZeneca's board repeatedly said that Pfizer's (PFE, Fortune 500) offers were not sufficient -- it rejected Pfizer's offers four times over the past few weeks.

Pfizer CEO Ian Read said in a written statement, "We continue to believe that our final proposal was compelling and represented full value for AstraZeneca based on the information that was available to us."

On the other hand, AstraZeneca's chairman, Leif Johansson, countered by saying he was confident his firm had solid long-term prospects as a standalone company.

U.K. takeover rules stipulate that companies seeking to make an acquisition must either make a formal offer or leave the target company alone after 28 days of making an initial approach. In this case, Pfizer faced a deadline of 5 p.m. London time. The rules are designed to ensure a company is not constantly besieged and distracted by unsolicited bids.

Related: Pfizer was banking on big tax savings in the U.K.

One factor driving Pfizer to pursue a takeover was related to taxes. Pfizer hoped to move its corporate base from the U.S. to the U.K., allowing it to pay British tax rates and save $1.4 billion annually, according to some analyst estimates.

AstraZeneca's board said last week that it was convinced Pfizer's takeover hopes were driven by potential cost savings and tax minimization.

"From our first meeting in January to our latest discussion yesterday, and in the numerous phone calls in between, Pfizer has failed to make a compelling strategic, business or value case," the board said.

The potential takeover attracted significant political attention, with some urging the British government to move to prevent takeovers by foreign firms in the interest of national security.

AstraZeneca alone accounts for about 2% of British exports.

First Published: May 26, 2014: 11:03 AM ET

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European stocks rise as elections wrap up

Alexis Tsipras leads the far-left Syriza party in Greece. His anti-austerity party that has received roughly 27% of the vote.

LONDON (CNNMoney)

Germany's DAX index led the way with a 1.3% rise. Spain's IBEX gained 1.2%, while France's CAC 40 added 0.8%. The euro recovered from earlier declines against the dollar.

Investors seemed relieved as results showed traditional left-center and right-center parties will hold a majority of seats in the European Parliament. However, many voters were increasingly supportive of anti-EU protest parties, which gained significant traction in France, the U.K. and Greece.

"The status quo prevails in Europe," explained Kathleen Brooks, a research director at FOREX.com. "Although the chorus of protest is growing louder, it is still a small force in the European Parliament."

Meanwhile, Ukrainians seem to be voting in favor of further integration with Europe. Billionaire Petro Poroshenko has declared himself the winner of the Ukrainian presidential elections after getting over 50% of the vote. The seasoned politician has been vocal about his pro-European Union views.

Related: Europe's own 'tea party' risk

The growing popularity of "euroskeptic" parties on the far right and far left indicate a severe backlash against pan-European cooperation, European institutions and austerity measures. But this doesn't threaten to tear Europe apart.

"After four years of a wrenching euro crisis, pro-European mainstream parties ... will still have close to 70% of the seats in the EU parliament," said Berenberg chief economist, Holger Schmieding. "Although it will be more difficult to negotiate a trade deal with the U.S., European institutions can function well with that result."

In France, the far-right National Front party -- which has rallied against the EU and immigration -- won a historic victory with 25% of the French vote, beating out more moderate pro-EU parties that dominated the elections five years ago. In the previous European elections, the National Front garnered just 6% of the vote.

In the United Kingdom, an increasingly prominent protest party that has loudly voiced its desire to get out of the EU won roughly 28% of the votes.

In Greece, the far-left Syriza party won roughly 27% of the vote.

The success of these anti-EU fringe parties could make for noisier Parliament debates and could complicate the passing of EU laws and appointments to the EU executive.

They also threaten to destabilize pro-EU governments in some countries and weaken the resolve of others to stick to painful economic reforms. For example, in Belgium, the prime minister handed his government's resignation after Flemish separatists scored a big win. But the Belgian benchmark stock index rose 0.5%.

Brooks, the FOREX.com research director, suggests that the rise of the anti-EU parties may actually benefit Europe.

"The increase in the protest vote could be a good thing for the markets, as it could streamline the EU," she said. "The amount of red tape created by the EU can be negative for businesses, and thus markets, so anything that could reduce this influence is a good thing."

First Published: May 26, 2014: 7:23 AM ET

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Tech stocks are back. Forget that Spring sell-off

The Nasdaq has rebounded in May and is currently up 1.7%. Click the chart for more stock info.

NEW YORK (CNNMoney)

The truncated week will also mark the end of a dramatic month for stocks.

Nasdaq rallies in May

Investors traditionally unload shares before they head off for summer vacation, but sticking it out through May looks like a wise move this year. The Nasdaq is up 1.7% so far this month, shaking off its losses from March and April when there was broad sell-off of so-called "momentum stocks."

Related: Get ready for the summer bummer in the stock market

The Dow and S&P 500 are also on track to end the month higher. On Friday, the S&P 500 closed above 1,900 for the first time ever.

Earnings season is over

Earnings season is nearly over, with 98% of S&P 500 companies having reported quarterly earnings, according to FactSet. To date, 74% of those companies have beaten expectations, but that's partly because the predictions were so low after the harsh winter. Profits are only up 2.1% over the same time last year.

Some of the last firms to report include purse and watchmaker Michael Kors (KORS), due out on Wednesday. Analysts are expecting sales to grow by more than half, but the company wouldn't be the first high-end retailer this quarter to do well.

Related: The 1% drive big gains for luxury brands.

Abercrombie & Fitch (ANF) will report on Thursday, but it is expected to show a decline. Those watching the company think sales are going to fall and profits will turn to losses for the teen retailer.

Lions Gate Entertainment (LGF), the studio behind the popular Divergent film franchise, also reveals performance on Thursday. It is expected to be flat from last quarter, though far better than the same time last year.

Economic data: Consumer confidence

Friday isn't quite the end of June, so investors have to wait another week for much anticipated American jobs report, but there are plenty of other big economic releases to dig through as they plan their summer vacations.

Consumer confidence stats drop Tuesday, along with data on home prices. Both are expected to remain relatively flat from the previous month. Initial jobless claims come out on Thursday, and economists predict they will dip lower, which would be a good sign for those hoping for a stronger labor market.

All three economic measures will be picked over by investors seeking clarity on the strength of the recovery.

Related: 3 reasons interest rates will stay low for years

Geopolitical tensions

There's still plenty of geopolitical risk to potentially spook the markets, including deadly violence in the lead up to Ukraine's elections on Sunday. Unrest also continues in Thailand, with the military shutting down international television networks and banning some politicians from leaving the country following a coup d'etat.

So far, these events have not had a major impact on world markets.

First Published: May 25, 2014: 9:44 AM ET

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