Afternoon Coffee: Walmart e-commerce losing $1 billion; Huawei still blacklisted?

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Walmart’s acquisition of the e-commerce website jet.com is doing a lot of business in the store’s bid to take on Amazon, but it is projecting a loss of about $1 billion, the media site Vox reports in a lengthy look at Walmart’s e-commerce play.

“Walmart is, by most measures, in a more competitive position than it was before it acquired Jet,” Vox reports.

“But it’s still far behind Amazon, and inside Walmart, tensions are rising. Multiple sources tell Recode that the company is projecting losses of more than $1 billion for its U.S. e-commerce division this year, on revenue of between $21 billion and $22 billion. Walmart does not disclose these figures publicly and declined to comment.”

Huawei Still Blacklisted?

A senior U.S. official told the Commerce Department enforcement staff this week that the Chinese tech company Huawei should still be considered blacklisted after U.S. President Donald Trump promised to ease the ban on sales to the firm days ago at the G20 summit, Reuters said. Reuters said it had seen a copy of the internal memo. It is unclear whether additional guidance surrounding Trump’s statements will be issued by the Commerce Department. The U.S. is concerned about Huawei over allegations of intellectual property theft and violating U.S. sanctions against Iran.

Mexican Consul General Says Tariffs Off the Table

Mexican Consul General F. Javier Diaz reassured automakers and other industries that tariffs on Mexico’s supply chains to American companies were “off the table,” reports the media website AL.com. “Any kind of uncertainty, whether it’s (caused) by political reasons or not creates a situation that we need to take care of,” Diaz said in a press conference on a visit to Huntsville, Alabama. He said his government was touching base with automakers like Toyota in meetings in Huntsville and elsewhere “to move forward.”

Belgian Company Buys Bankrupt U.S. Freight-payment Assets

The Wall Street Journal says a Belgian freight-payment service will purchase the assets of a bankrupt U.S. rival, IPS Worldwide LLC, for $2.3 million. IPS filed for Chapter 11 bankruptcy, owing over $100 million to creditors. The Europe Management SPRL handles the transactions of freight payables audit and payment services through its EM6 Logistics in regions across the world. EM6 now handles IPS’s remaining contracts in an attempt to maintain vendors and prevent services from being disrupted. The judge who is handling this transaction placed IPS under an outside vendors control due to “gross mismanagement and incompetence by top executives.”

Happy Holiday

Afternoon Coffee will go on a short hiatus for the holiday and will return Monday, July 8. Happy Independence Day!

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