Business Briefs – October 24, 2019

Amazon’s Profit Falls As Faster Shipping Costs Soar

NEW YORK (AP) – Amazon’s push for faster delivery is hurting its profits. The online retailer reported third-quarter earnings Thursday that missed expectations. Its stock sunk 9% in after-hours trading. Amazon is moving to cut its delivery time in half to one day instead of two for Prime members, who pay $119 a year. The Seattle-based reported net income of $2.1 billion, or $4.23 per share, in the quarter ending Sept. 30. That’s 36 cents below what analysts expected, according to FactSet.

Facebook Defends Policy Allowing False Political Ads

WASHINGTON (AP) – Facebook is defending its policy of not fact-checking political ads or comments of politicians after CEO Mark Zuckerberg faced withering criticism from Democratic members of Congress. Facebook said Thursday that private tech companies shouldn’t be in the position of censoring politicians — even in the case of advertisements that make false claims about a politician or their opponent. The policy is similar to those at other platforms that have also declined to remove false political ads.

Visa 4Q Profits Up 6%, Helped By More Spending on Network

NEW YORK (AP) – Visa’s fiscal fourth-quarter profits rose by 6% from a year ago, helped by the steady rise of payments being processed over the company’s namesake network. Consumers and businesses spent $2.267 trillion on Visa’s network last quarter, up roughly 9% from a year earlier. Visa earns a small fee for every transaction on its network.

Ad-Tech Problems, Weak Revenue Eclipse Twitter User Growth

SAN FRANCISCO (AP) – Bugs in Twitter’s advertising technology led to disappointing third-quarter profit and revenue numbers, overshadowing surprisingly strong user growth and sending shares of the social media company plummeting 16% before the opening bell. The San Francisco company also lowered its outlook for the fourth-quarter and the year on Thursday.

Iconic AmEx ‘Green Card’ Turns 50, Gets A Needed Revamp

NEW YORK (AP) — For 50 years, the American Express “Green Card” has been the card many people wouldn’t leave home without. Launched in 1969, the Green Card gave travelers a sense of importance they didn’t feel carrying travelers’ cheques. For many people, it was their first AmEx card. Over time, however, the Green Card became neglected in favor of its fancier siblings, the Gold and Platinum Cards. Now, the Green Card is getting a much-needed revamp, with a new look and more travel benefits — and, yes, a higher annual fee.

Outgoing ECB Chief Defends Legacy Against Stimulus Skeptics

FRANKFURT, Germany (AP) – Mario Draghi ended his eight-year term as head of the European Central Bank by defending his most recent stimulus package and reminding that the eurozone is now in better shape than during the days when the Greek crisis threatened to break it apart. Draghi resisted extensive reminiscence about his term at his last news conference. He downplayed the recent and unusually public criticism from a minority of the 25-member governing council members after the bank decided Sept. 12 to re-start bond purchases with newly printed money.

U.S. New Homes Sales Fell 0.7% In September

WASHINGTON (AP) – U.S. new home sales fell slightly in September with all regions of the country except the Midwest showing declines. The Commerce Department reported Thursday that sales of new homes fell 0.7% last month following a big 6.2% surge in sales in August. Homes were sold at a seasonally adjusted annual rate of 701,000, 15.5% higher than a year ago.

Israel Improves Business-Friendly Rating

YERUSHALAYIM (Hamodia) – The annual World Bank Doing Business report, which assesses the ease of doing business in various countries, has raised Israel’s ranking to 35th place from 49th last year and 54th the previous year.

Upon receiving the report, Israeli Prime Minister Binyamin Netanyahu‏‏ said it was “a very great jump,” and commended the work of the Finance Ministry, including the Accountant General, the Justice Ministry and the PMO’s Business Office.

The annual survey of 190 countries examines regulations including those related to starting businesses, obtaining construction permits, getting electricity, registering property, paying taxes and obtaining credit.