Jim Cramer says this earnings season might be ‘a rough one’

US Top News and Analysis 

CNBC’s Jim Cramer on Thursday said he thinks the upcoming earnings season might be tough thanks to continued inflation, as well as new weight loss drugs seeding fear for investors in the food and beverage sector.

“This time, it already feels like it’s going to be a rough one because the market seems to be nauseated by the companies that’ve already reported, with the sole exception of tech, which is once again getting a pass,” he said. “I think it’s because we’re rooting for lower inflation and less wage growth, but so far we just aren’t getting that scenario.”

Cramer said the market is facing an “unforgiving backdrop” that may cause many on Wall Street to interpret earnings negatively. He pointed to Thursday’s consumer price index report, which saw inflation rise more than expected, as well as weak demand for the government’s 30-year Treasury bond auction as factors.

He also also highlighted PepsiCo, one of the first big companies to report earnings this season. The Frito-Lay parent’s Tuesday report beat Wall Street’s expectations and it raised its full-year outlook. However, its stock has dropped in the past few days, finishing Thursday down 2.79%.

Cramer attributed the stock’s losses in part to fears about GLP-1 drugs. He said investors may be worried that food companies, especially ones that sell junk food, will see their business hurt if consumers on weight loss medication no longer crave their products. Cramer also said many might see PepsiCo’s price-to-earnings multiple as too high, trading at more than 20 times earnings.

Price-to-earnings is a valuation metric that compares a company’s share price to its earnings per share.

However, Cramer said investors should still be wary of being too negative.

“If the bond market behaves, like it had the last couple days, if there’s no new issuance of long-term paper by the Treasury, if we get some less hot economic numbers, then we will stabilize,” he said. “But, right now, the combination of higher rates and these drugs that impact diabetes, obesity, renal failure, heavy drinking, and strokes, and even high blood pressure — not to mention sleep apnea — have been anathema to the stock market, especially the overvalued packaged food plays.”

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Scalise hits a wall. Time for Plan B?

Congress 

He still doesn’t have the votes: House Majority Leader Steve Scalise might have won the House GOP’s nomination to serve as speaker. But a growing number of members say he doesn’t have the 217 votes he needs to win the gavel on the floor — and some are casting serious doubt on whether he can ever get there.

The GOP conference met Thursday afternoon for almost three hours, with a majority of the members emerging frustrated, disillusioned and ready to turn to other options.

None of the dozen-plus members who raised objections to Scalise after Wednesday’s nomination vote indicated they had changed their minds. In fact, Scalise lost support Thursday, with Rep. Anna Paulina Luna (R-Fla.) reversing course after previously saying she’d back the Louisianan.

Rep. Scott Perry (R-Pa.), the House Freedom Caucus chair, stopped short of calling on Scalise to drop out but warned, “I don’t see a path for Steve to get to 217.” Rep. Greg Murphy (R-N.C.) posted to X, “I love Steve, but if the votes are not there, let’s move on.”

The way forward for the House GOP continues to be murky. Scalise has not shown any interest in taking his fight to the floor the same way former Speaker Kevin McCarthy did in January. Instead, he’s spending the evening meeting with small groups of members in hopes of moving the needle in his direction. Members have been told there could be another Republican conference meeting later Thursday night.

Hopes that any further talks will be fruitful are fading.

“In terms of our ability to advance a candidate to become the 56th speaker I don’t see the light at the end of that tunnel,” Rep. Steve Womack (R-Ark.) told reporters after the GOP conference meeting. “That’s a mirage right now.”

Plan B: Some Republicans are saying the quiet part out loud: Is it time to rally behind another candidate for speaker? Or is it time to empower the acting speaker pro tempore, Patrick McHenry?

Many conservative members continued to profess their support for Rep. Jim Jordan (R-Ohio), who fell short to Scalise in Wednesday’s nomination vote and is now publicly backing Scalise. Others are pining for another candidate to step forward, one wholly outside the current GOP leadership ranks.

But with pressing issues for Congress to address — including a Nov. 17 government funding deadline and a potential aid package for Israel — talk of a temporary arrangement that would allow the House to get back to business is heating up.

“If we are still at [loggerheads], in short order, that’s going to have to be something that is discussed,” Rep. Mike Lawler (R-N.Y.) told Huddle, on the possibility of granting McHenry expanded powers.

How that could go: McHenry was chosen to step in as acting speaker by McCarthy ahead of last week’s booting, but — as we discussed last week — his powers are limited: McHenry is claiming he can only facilitate a new speaker’s election.

Some Republicans are discussing moving to give McHenry expanded abilities to temporarily run the chamber as the GOP infighting drags on and pressure mounts for the House to start governing again.

But even that is a point of contention inside the House GOP. Some conservatives are wary of McHenry, a close McCarthy ally, and others say they don’t want to ease the pressure to pick a new permanent speaker.

“The solution is not added powers for the speaker pro tem,” said Rep. Mark Alford (R-Mo.). “The solution is getting a speaker to the floor.”

VIBE CHECK: Lots of Republicans shared their grievances with Thursday’s conference meeting and how long it’s taking for them to elect a new speaker. Here are a few of the spicier quotes:

Rep. Nicole Malliotakis (R-N.Y.): “This is petty. This is petty. And I’m getting frickin’ tired of it.”
Rep. Ronny Jackson (R-Texas): “If you see smoke, it’s not a speaker. Someone just set the place on fire.” (h/t Ali Vitali)
Rep. Doug LaMalfa (R-Calif.): “I don’t know that Mother Teresa could walk in there and get to 217.” (h/t Ben Jacobs)
Rep. David Joyce (R-Ohio), singing on his way in: “Fly me to the moon — so I can get the hell out of here.”

Katherine Tully-McManus contributed.

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[World] Bob Menendez: US Senator faces new charges of acting as agent of Egypt

BBC News world-us_and_canada 

Image source, Getty Images

Image caption,

US Senator Bob Menendez faces new charges

US senator Robert Menendez, who is already facing corruption charges, has now been accused of acting as a foreign agent of Egypt.

The new indictment alleges Mr Menendez and his wife Nadine, provided “sensitive US government information” that helped Egypt’s government.

This comes weeks after the couple were accused of bribery, which they pleaded not guilty to.

The senator called the accusations false and has denied any wrongdoing.

In September, prosecutors charged Mr Menendez and his wife Nadine with accepting bribes of cash, gold, payments toward a home mortgage and a luxury vehicle from three New Jersey businessmen as part of a scheme to use the senator’s influence to increase US aid and military sales to Egypt.

During a search of the senator’s New Jersey home last year, investigators found $480,000 (£393,000) in cash hidden throughout the residence, as well as 13 bars of gold bullion worth an estimated $155,000 (£127,000), prosecutors allege.

The new indictment filed by New York federal prosecutors on Thursday alleges Mr Menendez used “his influence and power to breach his official duty in ways that benefited the Government of Egypt”.

While part of the Senate Foreign Relations Committee – which he has now stepped down from – he allegedly encouraged fellow senators to lift a hold on $300m (£246m) in aid to Egypt and provided sensitive US government information to its government, according to prosecutors.

The indictment alleges the conspiracy occurred between January 2018 and June 2022.

It also includes new photos of Mr Menendez and his wife, Nadine, dining with Egyptian officials at a steakhouse in Washington, DC. Nadine asked: “What else can the love of my life do for you?” prosecutors alleged.

According to the indictment, “public officials, including Members of Congress, are prohibited from agreeing to be or acting as an agent of a foreign principal required to register under FARA”, which is the Foreign Agents Registration Act.

In last month’s indictment, the pair each face three criminal counts: conspiracy to commit bribery, conspiracy to commit honest services fraud, and conspiracy to commit extortion under colour of official right.

In a statement on Thursday, the 69-year-old lawmaker defended himself against the new charges.

“Piling new charge upon new charge does not make the allegations true,” he said. “I have been, throughout my life, loyal to only one country — the United States of America,” he said.

More than 30 Senate Democrats have called on him to resign, including fellow New Jersey Senator Cory Booker.

On Thursday, Pennsylvania Senator John Fetterman called on the Senate to bring a resolution to expel Mr Menendez from the chamber in the wake of new charges.

“We cannot have an alleged foreign agent in the United States Senate,” Mr Fetterman said in a statement. “This is not a close call.”

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Developers make pledge to finish NJ’s first offshore wind farm by 2025

Latest & Breaking News on Fox News 

The Danish wind energy company Orsted has put up a $100 million guarantee that it will build New Jersey’s first offshore wind farm.

But it will lose that money if the project is not operating by Dec. 2025 — a year after the deadline approved by state utility regulators.

New Jersey’s Board of Public Utilities approved an agreement Wednesday with Orsted under which the company would forfeit the money if the project is not up and running within 12 months of a series of deadlines previously ordered by the board.

4 NEW OFFSHORE WIND PROJECTS PLANNED IN NEW JERSEY

Those deadlines call for the project to reach commercial operation in stages by May 1, Sept. 1 and Dec. 1, 2024. But it would forfeit the guarantee money if the project is not operational by December 2025.

The money put up on Oct. 4 by Orsted and placed in an escrow account was required under the terms of a law Gov. Phil Murphy signed in July allowing Orsted to keep federal tax credits that it otherwise would have had to return to New Jersey ratepayers.

The Democratic governor, who wants to make New Jersey the East Coast hub of the nascent offshore wind industry, said the tax break was needed. He said it would help Orsted complete the project in the face of financial challenges buffeting the industry. which also faces substantial political opposition, mostly from Republican legislators and their supporters.

As an example, on Thursday, New York regulators rejected a request from companies for larger subsidies to complete large-scale wind, solar and offshore wind projects, saying the expected the companies to abide by the terms of their deals with the state.

Orsted said in a statement that Wednesday’s approval by the New Jersey utilities board “continues the process of complying with the statutory requirements outlined in legislation signed by Governor Murphy earlier this year.”

But it did not address its own timetable for completing the first of two offshore wind projects it plans to build off the New Jersey coast.

In August, Orsted said the project would be delayed until 2026 due to supply chain issues, higher interest rates, and a failure so far to garner enough tax credits from the federal government.

The company said during an earnings conference call that it could be forced to write off about $2.3 billion on U.S. projects that are worth less than they had been. It also said it had considered simply abandoning the Ocean Wind I project off the southern New Jersey coast, but decided for the time being to stick with it.

The company did not respond to repeated requests Wednesday and Thursday for clarification of its timetable for the project. Its website says only, “The project is scheduled to become operational in 2025, with final commissioning in 2026.”

OFFSHORE WIND OPPONENTS SUE TURBINE COMPANY, STATE OF NEW JERSEY OVER TAX BREAK

An affidavit filed with the board last month by David Hardy, CEO of Boston-based Orsted North America, committed the company to carrying out the project once the board approved the guarantee, which was done on Wednesday.

“I can affirm that Ocean Wind I shall complete and operate the Ocean Wind I approximate 1,100-megawatt qualified offshore wind project,” he wrote.

Orsted has federal approval for the Ocean Wind I project, and has state approval for a second New Jersey project, Ocean Wind II. Under Wednesday’s agreement, the company would get its $100 million back if it does not receive all the government approvals it needs to build and operate the first project.

If Orsted forfeits the money, it could be returned to New Jersey utility ratepayers.

 

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Developers call off natural gas plant planned for central New Jersey

Latest & Breaking News on Fox News 

Opponents of a natural gas-fired power plant planned for an already polluted low-income area in New Jersey celebrated Thursday after hearing the company that proposed the project no longer plans to build it, citing low energy prices.

Competitive Power Ventures wanted to build a second plant beside one it already operates in Woodbridge, about 20 miles south of Newark. The company previously said the expansion is needed because of growing demand for energy, pitching it as a reliable backup source for solar and wind energy when those types of power are not available.

But in a statement Wednesday night, the Silver Spring, Maryland-based CPV said market conditions have deteriorated to the point where the project is no longer feasible.

PATERSON POLICE SUE NEW JERSEY AG OVER STATE TAKEOVER OF DEPARTMENT

Company spokesman Matthew Litchfield said CPV’s agreement with PJM Interconnection, a regional power transmission organization, required it to either begin construction or terminate the agreement by Sept. 30.

“In light of current PJM market conditions that do not support construction of the project at this time, CPV had to withdraw from the interconnection agreement,” he said.

Litchfield said market prices for energy were too low, and that unlike many other types of generation projects, including offshore wind and nuclear power, the natural gas plant wouldn’t be subsidized by the state.

“These prices currently do not support the construction of the project,” he said.

The company will continue to operate its existing plant, he added. It’s evaluating uses for the adjacent land where the second power plant had been proposed.

A wide coalition of residents from Woodbridge and surrounding low-income communities, environmental and social justice groups opposed the project, saying it would have placed an unacceptably high health burden in an area that already deals with serious pollution.

In public hearings regarding the proposal, area residents said their children developed chronic breathing problems, including some so severe that the children had to be rushed to hospitals.

The American Lung Association gives Middlesex County, which includes Woodbridge, a grade of “F” for ground-level ozone pollution. That type of pollution is caused by car exhaust, the burning of natural gas, and other human activities, according to the EPA. It’s known to exacerbate lung problems.

New Jersey’s environmental justice law is designed to prevent overburdened communities from having to accept additional sources of pollution. Signed by Gov. Phil Murphy in 2020, it did not apply to the CPV proposal, which completed its air quality permit application in 2017, before the law took effect.

INDIANA RESIDENTS PUSH BACK AGAINST PROPOSED PLANS TO BUILD UNDERGROUND CARBON DIOXIDE STORAGE WELLS

“The CPV power plant scheme would have dumped air pollution into already overburdened communities, and undermined the Murphy administration’s climate goals,” said Charlie Kratovil, an organizer for Food & Water Watch. “The inspiring grassroots movement to stop this plant won a major victory for clean air, environmental justice, and our climate.”

He noted that two other gas-fired power plants remain under consideration in the state, both proposed by government agencies in Newark and Kearny, and called on the governor “to back up his rhetoric with decisive action to stop all fossil fuel expansion projects.”

Anjuli Ramos Busot, director of the Sierra Club’s New Jersey chapter, said the project would have pumped over 2 million metric tons of additional planet-warming greenhouse gases into the environment, increasing the state’s output by 2%.

“The people won against the polluters in New Jersey,” she said. “Our state does not need more natural gas. “This is a massive victory for our communities, environmental justice, and in the fight against climate change.”

 

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Zimbabwean opposition leader calls for reinstatement of 15 expelled lawmakers

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Zimbabwe’s main opposition leader on Thursday urged the Parliament speaker to reinstate 15 of his party’s lawmakers, saying they were removed from their positions because of a fraudulent letter.

Opposition leader Nelson Chamisa said the lawmakers’ removal was part of an attempt by the ruling ZANU-PF party “to silence us.”

The issue has added to the political tension in the southern African nation since President Emmerson Mnangagwa won a second term and ZANU-PF retained its parliamentary majority in disputed elections in August. Chamisa rejected the results of the elections as a “blatant and gigantic fraud.”

ZIMBABWE’S OPPOSITION CALLS FOR INTERNATIONALLY-SUPERVISED REDO OF CONTROVERSIAL ELECTION

The lawmakers from Chamisa’s Citizens Coalition for Change party were removed Tuesday after a man claiming to be the secretary-general of the CCC sent a letter to Speaker of Parliament Jacob Mudenda saying they were being withdrawn.

Chamisa told Mudenda the man who sent the letter had no authority in his party and was an impostor, and his letter should be disregarded. But Mudenda, an official from ZANU-PF, still removed the lawmakers and declared their seats vacant. That led to a protest in Parliament by other CCC lawmakers, who were ejected by police.

ZIMBABWE ARRESTS 41 POLL MONITORS, ACCUSES THEM OF TRYING TO RIG VOTE COUNT FOR OPPOSITION

The CCC has said it will boycott parliamentary business until the 15 are reinstated, widening the post-election political cracks. Chamisa has also accused Mnangagwa and ZANU-PF of post-election intimidation and violence.

Justice Minister Ziyambi Ziyambi denied government or ruling party collusion in the removal of the opposition lawmakers and said others would lose their positions if they missed 21 consecutive Parliament sittings.

Although ZANU-PF retained its control of Parliament, it did not get a two-thirds majority that would give it the votes to change the constitution and possibly allow Mnangagwa, 81, to remain as leader beyond two terms, which is currently the limit. Mnangagwa has said this is his last term, though some in his party have called for him to stay on.

Mnangagwa replaced long-ruling autocrat Robert Mugabe after a coup in 2017 with promises of democratic reforms. Mnangagwa won his first term in another disputed election in 2018 and is now being accused of being as repressive as his predecessor.

 

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Kansas AG Kobach asks high court to drop school funding lawsuit

Latest & Breaking News on Fox News 

Kansas’ Republican attorney general asked the state’s highest court to reward the GOP-controlled Legislature for following through on a decade’s worth of court-mandated education funding increases by making it harder for local school districts to force higher spending in the future.

Attorney General Kris Kobach’s office wants the Kansas Supreme Court to close a lawsuit that four school districts filed against the state in 2010. The request was filed Wednesday by Tony Powell, a former state Court of Appeals judge who now serves as Kobach’s solicitor general.

The state Supreme Court issued seven rulings from 2013 through 2019 requiring the Legislature to increase funding for public schools and to make its formula for distributing its funds fairer to poorer areas of the state. The justices said in 2019 that the Legislature had complied with their directives, but they kept the case open to ensure that lawmakers fulfilled their promises.

KANSAS BECOMES 10TH STATE TO REQUIRE 2-PERSON TRAIN CREWS AS RAILROAD INDUSTRY OBJECTS NEW RULE

The state expects to provide $4.9 billion in aid to its 286 local school districts during the current school year, which would be about 39% more than the $3.5 billion it provided for the 2013-14 school year. Powell noted that the court approved a plan four years ago to phase in a series of funding increases through the previous school year.

“The phased-in remedy has been completed,” Kobach said in a statement Thursday. “It’s normal to close a case at this time.”

Kansas has been in and out of school funding lawsuits for several decades, with lawmakers promising increases in spending and then backing off when the economy soured and state revenues became tight.

Kobach said his office’s request won’t affect current funding levels.

“Kansas is governed by elected representatives who will make decisions on how the state spends taxpayer money,” he said.

KANSAS GOV. KELLY ANNOUNCES JUNETEENTH WILL BECOME STATE HOLIDAY

With the lawsuit still open and in the state Supreme Court’s hands, the school districts can go directly to the justices each year if they don’t believe lawmakers have provided enough money. If the case were closed, districts would have to file a new lawsuit in district court that likely would take several years to reach the state Supreme Court.

Democratic Gov. Laura Kelly opposes Kobach’s request. Spokesperson Brianna Johnson described it as an “attempt to allow the Legislature to remove funding from our public schools.” She also noted that it came the same week that state education officials reported improvements in scores on standardized exams, including the best math scores since 2017.

She said, “It makes no sense to undo all the progress.”

The state constitution says lawmakers “shall make suitable provision for finance” of the state’s “educational interests.” The state Supreme Court has ruled repeatedly that the language requires legislators to provide enough money and distribute it fairly enough to finance a suitable education for every child.

 

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Former North Dakota Lt. Gov. Rosemarie Myrdal dead at 94

Latest & Breaking News on Fox News 

Rosemarie Myrdal, the second woman to serve as North Dakota’s lieutenant governor, has died. She was 94.

Myrdal died Wednesday night in Grafton due to old age, said state Sen. Janne Myrdal, her daughter-in-law. Funeral and burial services are planned for Monday at Pioneer Church in Gardar.

“She had her garden, and she ate healthy, and she ground her own wheat from the farm, and she lived the North Dakota way,” Janne Myrdal, a Republican, told The Associated Press. “I think this is going to reverberate throughout the state because she was one of a kind, for sure, of a public servant.”

YOUNGEST KNOWN TULSA RACE MASSACRE SURVIVOR DEAD AT 102

Rosemarie Myrdal was lieutenant governor to former Gov. Ed Schafer. The two Republicans served from 1992-2000. Myrdal had previously served in the state House of Representatives from 1985-92. She was a teacher and a mother of five.

As lieutenant governor, Myrdal presided over the state Senate and was first in the line of succession for the governor’s seat. Her daughter-in-law said Myrdal was respected by Democrats and Republicans alike.

FUNERAL SERVICES SET FOR NORTH DAKOTA SENATOR AND HIS FAMILY WHO DIED IN UTAH PLANE CRASH

Schafer and Myrdal did not seek re-election in 2000.

Schafer described Myrdal as “a really good public servant” and “a wonderful human being” who was a great personal friend and political colleague.

“She just was that ultimate kind, honest, compassionate person that we were all joyful at being able to work with and interact with,” Schafer told the AP.

North Dakota Gov. Doug Burgum in a statement called Myrdal “a tireless advocate for the citizens of our state and a champion for children, education and agriculture.” He praised her past school board service and involvement in organizations supporting heritage preservation, conservation and other causes.

 

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Target CEO meets with Biden as the company — and White House — try to figure out U.S. consumers

US Top News and Analysis 

In this article

TGT

Target CEO Brian Cornell.
Scott Mlyn | CNBC

Target CEO Brian Cornell met with President Joe Biden on Thursday afternoon as the retailer — and the White House — try to figure out U.S. consumers.

Cornell is one of about a half dozen business leaders across industries who offered up their point of view on the economy and the labor market at the White House. Other attendees at the meeting with Biden were expected to include Brendan Bechtel, CEO of construction and engineering firm Bechtel Group; Calvin Butler, CEO of energy and utility company Exelon; Kenneth Chenault, chair and managing director of venture capital firm General Catalyst; Thasunda Brown Duckett, CEO of financial services company TIAA; Arvind Krishna, CEO of IBM; and Judy Marks, CEO of Otis Worldwide, a manufacturer of elevator, escalator and similar equipment, according to the White House.

Through a spokesperson, Target confirmed Cornell’s attendance at the meeting, but deferred to the White House for more details about the content of the meeting. The CEO huddle is closed to press.

Biden’s meeting with the business leaders comes as the White House gears up for the next presidential election, a time when his track record on the economy and inflation will be under the microscope. Inflation remains stubbornly high — a factor that has cut into consumer spending at Target — but Biden on Thursday cheered new data showing the rate of price increases continues to slow.

For Target, the meeting comes at a pivotal moment when the retailer’s business has taken a hit from a tougher economic backdrop and the divisive political climate. The big-box retailer also recently announced it would close nine stores in major American cities, including New York City and San Francisco, blaming the shuttered locations on heightened levels of organized retail crime and concerns about violence.

The big-box retailer cut its full-year forecast in August, saying its shoppers have continued to watch their dollars and spend mostly on necessities even as inflation cools. At the time, Cornell cited other factors that could hurt sales in the coming months and during the critical holiday season, including higher interest rates and the return of student loan payments.

Target also got caught in the crosshairs of conservative political furor over its Pride month merchandise. It has had a collection of LGBTQ-themed items for more than a decade, but the merchandise drew backlash this year. The company removed some items, citing concerns about employee and customer safety.

In August, Cornell said on an earnings call that the “negative reaction” contributed to the company missing Wall Street’s sales expectations for the most recent quarter.

Cornell has met with the White House before. During the early months of the Covid-19 pandemic in 2020, he joined Walmart CEO Doug McMillon and other top executives at a press conference in the Rose Garden with then-President Donald Trump and pledged to help ramp up access to Covid testing.

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Google is opening a cafe, store and event space to the general public near its headquarters

US Top News and Analysis 

In this article

GOOGL

Google has opened its first west coast visitor Experience” center which is located by its Mountain View headquarters.
Mark Wickens

Google is opening a sliver of its main campus to the general public starting this week.

The company opened its doors to what it’s calling its “Visitor Experience” center the public Thursday, following a ceremony where Google executives and local leaders gathered hear its headquarters in Mountain View, Calif.

“We’ve always been focused on the experience of Googlers and their friends,” said Google’s head of real estate Scott Foster. “But this project was designed intentionally for the general public.”

Ruth Porat, Google’s President and Chief Investment Officer, was also in attendance and helped cut the celebratory ribbon to the space.

Google’s new Mountain View “Visitor Experience” center features a Google store.

Although the public can’t walk into Google’s actual office space, the new visitor center features a room where a community group or nonprofit can request to reserve the space for meetings or events. It also includes a cafe and retail Google store, which comes two years after the company opened its first public Google retail store in New York’s Chelsea neighborhood.

The center’s cafe features dishes like sandwiches, soup, and desserts from local eateries. It’s Google’s first cafe open to the public, but has a lighter selection than a typical large campus cafeteria. It also features an outdoor “plaza” for events as well as a small craft space and a small local shop that will feature a rotation of local retailers.

Google’s new visitor center feature a space where a community group or nonprofit can request to reserve the space for meetings or events.
Mark Wickens

Executives said that the center, which has been in the works for several years, comes at a time when technology is moving quickly and a post-pandemic need for more in-person spaces.

“Innovation is moving so fast that having a place to be together is even more important,” campus research and design director Michelle Kaufmann told CNBC, referring to artificial intelligence and cloud computing. “It’s a step in not being an ivory tower and hopefully it can be a blueprint for how community can be more involved.”

Google’s new visitor experience includes an outdoor event space for the public.

It comes amid a trend of Silicon Valley tech companies like Facebook (now Meta) and Google departing from the traditional style of campus designs, which have historically been closed off from the general public. The trend comes as companies face pressure to appease both top talent and their non-tech neighbors.

Facebook re-worked its big Menlo Park campus plans for a similar model that would include affordable housing, a full-service grocery, and pharmacy among other amenities. 

Google was approved for plans for an even larger 80-acre mixed-use campus 10 miles down the road in downtown San Jose to house 25,000 employees. Executives have maintained it is still committed to doing a project in the area long-term after CNBC found that it halted project plans after the first demolition phase, due to economic concerns and cost-cutting this year.

Google executives and local government leaders gathered for the company’s new visitor center opening Wednesday.
Mark Wickens

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