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What will Amazon look like post-Bezos? | ticker VIEWS

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Amazon founder Jeff Bezos has handed over his CEO reins to the creator of Amazon Web Services

Jeff Bezos will officially step aside as CEO of Amazon, while Andy Jassy takes over the position.

It’s not the last everyone will see of Bezos though, he will stay on as the board’s executive chairman. However, Jassy will take on a lot of pressure, as he inherits the responsibility of the $1.7 trillion e-commerce giant.

The pressure is on for Jassy

Andy Jassy rose to his success during his time at Amazon’s cloud computing business, Amazon Web Services. He is now about to take over the e-commerce empire that employs over 1.3 million people.  Amazon generates more than $400 billion a year in revenue, while still averaging an annual growth rate of 30%.

The company is more valuable than it’s ever been. Amazon is the fourth of the five big tech firms like Apple, Microsoft, and Google’s Alphabet to go beyond founder control. Each of these firms went on to reach new levels of financial success by their subsequent leaders.

This shake-up comes at a critical time for the company. The pandemic saw an increase in consumer demand like never before. However, this only shone a light on the need for heightened regulatory action into the ever-growing empire and its market dominance.

Amazon has also faced growing criticism for its treatment of workers.  However, this is something Bezos has vowed to address as executive chairman.

What’s next for Bezos?

Bezos founded Amazon in his garage 27 years ago. The 57-year-old now has a net worth of $200 billion and will continue to have significant influence at the company. He will remain the largest individual shareholder. As of last month he owned around 51.2 million shares, which equates to about 10%.

It’s unclear how exactly Bezos will govern Amazon from the sidelines. But, the entrepreneur has no doubt created a legacy at Amazon. He defined Amazon’s culture as “customer obsession.” In April, Bezos told investors he would focus on new initiatives to continue to make Amazon a better place to work.

He might be stepping aside but he has plenty of other interests to occupy his time.

Outside of Amazon, he’ll spend more time with his space efforts at Blue Origin. Bezos is planning a joy ride to suborbital space with his best friend and brother, on July 20.

On his Instagram, Bezos has clearly shown his interests in Tinsel Town, posting about Golden Globe wins for Amazon Studios. During his last meeting as CEO, he spoke about re-imagining screen heroes for the 21st century through Amazon’s deal to buy MGM.

Bezos will also focus on his philanthropic efforts and ventures at the Washington Post.

Expert predictions for Amazon

Wall Street experts predict Amazon will surpass supermarket giant Walmart to become the largest U.S. company by annual sales next year. This is according to consensus estimates from FactSet.

Planning for success

Bezos stepping aside after 27 years definitely marks a new era for the e-commerce giant. It’s undeniable that he has revolutionised the streaming, shopping, technology, and internet space forever.

In his final letter to shareholders, Bezos laid out a broad vision for the company’s future, committing to extend Amazon’s famous obsession over its customers to the same level of care for its employees.

The first principle is to Strive to be Earth’s Best Employer, which is to strive for a safer, more productive, more diverse work environment. This urges leaders to ask if their employees are growing, feeling empowered and having fun.

The second principle is Success and Scale Bring Broad Responsibility, which is to strive to be humble. With a focus of the secondary effects of actions, including the planet, communities, customers, and world at large. This urges leaders to leave everything and everyone better than they found them.

Final words before stepping aside

“If you want to be successful in business (in life, actually), you have to create more than you consume. Your goal should be to create value for everyone you interact with. We are all taught to “be yourself.” What I’m really asking you to do is to embrace and be realistic about how much energy it takes to maintain that distinctiveness.”

Jeff Bezos

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Powell defends the Fed’s independence from Trump

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As Trump’s presidency approaches, Fed Chair Jerome Powell signals he won’t back down on protecting the central bank’s autonomy.

With the election results still rolling in, Federal Reserve Chair Jerome Powell has already made it clear that he intends to uphold the Fed’s independence, even if it means clashing with the new administration.

In a statement on Thursday, Powell declared he would not resign if President-elect Trump asked him to, asserting it would be illegal for any president to fire or demote a sitting Fed governor.

This stance comes amid signals from Trump’s team indicating they may seek influence over the Fed’s monetary policies, including interest rate decisions, challenging the longstanding norms that keep the Fed separate from politics.

Not stepping down

Powell’s terse response to questions on the issue emphasized his commitment: when asked if he would step down at Trump’s request, Powell replied simply, “No.” And when asked if the president could legally demote Fed governors, he affirmed, “not permitted under the law.”

Historically, Trump has shown impatience with Powell’s decisions, especially on interest rates.

If Trump tries to replace Powell or other Fed leaders prematurely, he could face legal challenges and market backlash.

Economists argue that an independent Fed actually benefits Trump’s agenda by stabilising rates.

 

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Federal Reserve lowers rates amid eased job market

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The Federal Reserve has cut interest rates by a quarter-point, bringing the benchmark rate to a range of 4.5% to 4.75%, as economic growth continues but job gains slow.

The Fed noted that labour market conditions have “generally eased,” even with low unemployment, signalling a more cautious approach amid a stable economic expansion.

The statement marks a shift in Fed language, now saying inflation has “made progress” toward the 2% goal instead of the prior “further progress.”

With inflation holding steady around 2.6%, policymakers aim to keep economic risks balanced, despite pressures from slower job growth.

This rate cut reflects a strategic move to sustain economic momentum while cautiously watching inflation’s gradual trend toward the Fed’s target.

The decision was unanimous, aligning Fed priorities with a balanced approach to support both employment and price stability.

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Trump victory sparks market surge as Wall Street soars

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Donald Trump’s election victory has sparked a massive rally in the stock market.

Banks and industrial companies led the surge as investors bet that Trump’s plans for deregulation and tax cuts will boost economic growth.

Shares of big banks, like JPMorgan and Goldman Sachs, soared as investors predicted fewer regulatory restrictions.

Meanwhile, industrial giants such as Caterpillar and steelmakers like Nucor also hit record highs, reflecting optimism about U.S. manufacturing.

In contrast, clean-energy stocks took a hit, as Trump’s policies are expected to favour traditional energy sectors.

This surge comes amid rising Treasury yields and falling gold prices as investors gain confidence in the transition to a Trump administration.

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