The daily business briefing: May 15, 2018

1. Seattle approves scaled-down 'head tax' over Amazon's objections

The Seattle City Council on Monday passed a scaled back version of the so-called Amazon tax, which will impose a $275-per-employee "head tax" on companies in the city with more than $20 million in gross revenue. Seattle Mayor Jenny Durkan had threatened to veto the original $540-per-employee tax, saying it would cost too many jobs, but said she would sign the latest version. The city plans to use the tax on big businesses to build affordable housing and alleviate homelessness. The tax is expected to raise $44.7 million a year. Amazon, which has 45,000 employees in Seattle, said it was "disappointed by today's City Council decision to introduce a tax on jobs," but added that the company would resume construction of a 17-story office tower it had placed on hold.

CNN

2. China vice premier arrives in U.S. for trade talks

A top Chinese economic official, Vice Premier Liu He, arrives in Washington on Tuesday for five days of trade talks. Liu's visit comes following a surprise announcement from President Trump via Twitter that he is working with Chinese President Xi Jinping on helping get Chinese telecom ZTE "back in business" after the U.S. banned American firms from selling parts and services to ZTE for seven years as punishment for its failure to respect an agreement on avoiding trade with Iran. Observers said Liu could respond to Trump's gesture by offering easier access to Chinese markets for U.S. goods.

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South China Morning Post

3. Stocks lose steam, threatening Dow's 8-day winning streak

U.S. stocks rose slightly on Monday, giving back some of their earlier gains in a late-afternoon pullback. Shares rose early on signs of easing trade tensions between the U.S. and China. The S&P 500 and the Nasdaq composite rose by 0.1 percent, while the Dow Jones Industrial Average closed up 0.3 percent, its eighth straight day of gains. The Dow's winning streak appeared to be in doubt early Tuesday, with the index falling by 0.3 percent. Futures for the S&P 500 and the Nasdaq-100 also fell by 0.3 percent. Fresh data on retail sales and the housing market, as well as Federal Reserve speeches, could steer the market during the day.

The Associated Press MarketWatch

4. Supreme Court rules states can allow betting on sports

The Supreme Court on Monday struck down a federal law prohibiting states from allowing sports betting, siding with New Jersey, where lawmakers passed legislation lifting prohibitions on some sports betting as part of a bid to revitalize Atlantic City as its casinos close. The majority opinion said sports gambling is controversial, with supporters saying it can provide states with revenue and opponents saying it gets young people hooked on betting and encourages "people of modest means to squander" their limited resources. The majority concluded that the legalization of sports gambling "requires an important policy choice, but the choice is not ours to make." Liberal Justices Ruth Bader Ginsburg and Sonia Sotomayor dissented.

The Washington Examiner Supreme Court

5. Toys 'R' Us sells off mascot, web addresses

Toys 'R' Us is auctioning off its Geoffrey the Giraffe mascot and hundreds of website addresses, including sex-toys-r-us.com, that the bankrupt toy retailer bought to protect its brand. Toys 'R' Us, which is winding down its business and closing 735 U.S. stores, is also selling ihatetoysrus.com, toysrussucks.com, and kinkytoysrus.com. Major companies like Toys 'R' Us often register related domain names to keep others from hijacking their brand for profit, said Bob Phibbs, a brand specialist and chief executive of the Retail Doctor consulting firm. "They just went crazy," said Phibbs. "I'm sure they were laughing and drinking Red Bull and then just came up with every iteration they could."

Reuters