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Ex-MIT professor agrees to plead guilty to fraud

Written By Unknown on Kamis, 14 Agustus 2014 | 00.32

BOSTON — A former Massachusetts Institute of Technology professor and his son who ran hedge funds have agreed to plead guilty to securities fraud charges that federal prosecutors say cost their investors $140 million.

Federal prosecutors said Tuesday that 69-year-old Gabriel Bitran and 36-year-old Marco Bitran misled their investors, telling them they had a history of successfully earning money based on the elder Bitran's theories.

Authorities say some money was put into funds connected to Bernard Madoff. The duo ultimately lost $140 million of their investors' principal. Some investors lost as much as 75 percent of their principal.

Both agreed to plead guilty to conspiracy to commit securities fraud, wire fraud and obstruction of justice.

Gabriel Bitran is a former professor and associate dean of MIT's Sloan School.


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Asia stocks drift as Iraq, Ukraine tensions simmer

MUMBAI, India — Asian stocks drifted on Wednesday as investors remained cautious amid uncertainty over potential conflict in Ukraine and Iraq plus new numbers showing a slowdown in Japan's economy.

KEEPING SCORE: Japan's Nikkei 225 was up 0.2 percent to 15,186.10. Hong Kong's Hang Seng shed 0.1 percent to 24,662.88. China's Shanghai Composite dropped 0.6 percent to 2,207.30 and Australia's S&P/ASX 200 fell 0.3 percent to 5,515.20. Seoul's Kospi added 0.6 percent to 2,053.75.

JAPAN SLOWS: Government figures showed Japan's economy shrank at an annual pace of 6.8 percent in the second quarter after spending got slammed by a sales tax hike that kicked in from April. The weak figures were expected as consumers and businesses had front-loaded spending in the first quarter to beat the April 1 increase in sales tax. Economists expect spending to pick up again in coming months.

INSTABILITY JITTERS: Fears of a Russian invasion of Ukraine have faded in recent days, but worries about conflicts around the globe are likely to keep investors on edge. A convoy of more than 260 Russian trucks, reportedly packed with supplies, moved toward Russia's border with Ukraine on Tuesday, but Kiev said the goods would only be allowed to cross if they were inspected by the International Red Cross. Ukraine is fearful that Russia could use the move as a cover for sending troops into separatist-held territory. Investors are also watching political machinations in oil-rich Iraq. On Tuesday, that nation's embattled prime minister, Nouri al-Maliki, tried to stay in power as Iraqi politicians and the international community rallied behind a political rival.

ANALYST TAKE: "It certainly seems to be a headline geopolitical risk driven market at the moment, as any news out of Russia, Ukraine or Iraq dictates sentiment," said IG market strategist Stan Shamu.

WALL STREET: The Dow Jones industrial average lost 0.1 percent to 16,560.54 on Tuesday. The Standard & Poor's 500 fell 0.2 percent to 1,933.75 and the Nasdaq composite fell 0.3 percent to 4,389.25.

OIL LEAK: U.S. crude oil futures slipped 16 cents to $97.21 a barrel in electronic trading on the New York Mercantile Exchange. That followed three days of increases over concerns about the reliability of Iraqi oil production. U.S. crude is trading at a seven-month low.

CURRENCIES: The euro slipped to $1.3365 from $1.3370 late Tuesday. The dollar was steady at 102.29 yen.


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City eases zoning appeals for changes to small properties

Boston is trying to make it easier for small businesses and homeowners to make changes to their properties, the latest in what the city says is a series of improvements to the zoning process.

A new Zoning Board of Appeals subcommittee will hear requests for variances from zoning rules exclusively from small businesses and 1-2 family owner-occupied homes — a move that will "streamline" the process for minor changes, according to Mayor Martin J. Walsh.

"This change will allow one- and two-family homeowners and small business to request zoning relief without having to take time out of the weekday schedule to do so," said William Christopher, commissioner of Inspectional Services.

Meg Mainzer-Cohen, president of the Back Bay Association, said the zoning appeals process — formally asking for an exception to the zoning code — needs to be fixed.

"Without a question, something should be done and must be done," Mainzer-Cohen said. "It's part of what has contributed to Boston's reputation for being hard for small businesses."

Still, some said the changes don't go far enough.

"The limit to the one-two family owner-occupied is a really tight definition of what small is," said Skip Schloming, executive director of the Small Property Owners Association.

Kate Norton, a spokeswoman for Walsh, said the subcommittee guidelines are based on the state building code, which defines a building with more than two units as commercial.

Last month, Walsh announced extended hours for ZBA hearings and that they would be televised.

"This is one part of a bigger initiative we've been rolling out over time and will continue to roll out," Norton said. "Everything we're doing around ZBA is designed around making it a more user-friendly experience."


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Expert: Market Basket threat may be illegal

Market Basket issued letters to hundreds of protesting employees yesterday giving them until Friday to return to work or lose their jobs — a move that legally will be difficult to enforce, a labor expert told the Herald.

"An employer in this situation has to be very careful because no matter how this has been labeled, the rank and file employees are on strike, and strikers have certain rights, including the right not to be terminated for engaging in a strike," said Keith H. McCown, a top labor lawyer at Morgan, Brown & Joy, LLP. "Even though there's no union in the picture, these employees are withholding their services collectively and that is a strike."

Strikers can technically be replaced, but even then retain certain protections. McCown told the Herald that, under the law, supervisors do not have a similarly protected right to strike.

Workers launched the protests and walkouts July 18 calling for the reinstatement of Arthur T. Demoulas, who was fired as CEO in June by the company's board, which is controlled by rival cousin Arthur S. Demoulas.

Market Basket said yesterday it had issued the letters to about 200 "associates" — both at the supervisor level and in administrative support — working at headquarters and distribution centers who have stopped showing up.

The protesting workers estimated as many as 700 letters went out.

"Should you choose to ignore either of these directives, the company will consider you to have abandoned your job, thereby ending your employment with the company," Market Basket wrote in the letter, according to the web site WeAreMarketBasket.com.

Mike Meuse, a Market Basket operations supervisor and safety manager, told the Herald he was "shocked" when he received the letter yesterday, but vowed not to cave.

"If they release me on Friday, I guess they release me on Friday," said Meuse. "They can call it job abandonment, but I look at it as them terminating me."

Now that Market Basket has given workers an ultimatum, it has to follow through to preserve its credibility in the ongoing mess, said supermarket analyst David Livingston of DJL Research in Milwaukee.

"They'll have to let people go because if they don't, no one's going to believe anything they say," said Livingston. "I think these employees are prepared for that. I think they've got a cult-like following of Arthur T., and they're prepared to lose their jobs for this man."


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Entrepreneurship the answer for some with autism

NEW YORK — When Matt Cottle asked his boss to let him work in the supermarket's bakery, she told him he'd never do anything more than collect grocery carts.

After six years of bagging groceries and pushing carts, Cottle wanted more. He had already learned how to do some baking.

Cottle is autistic. And today he's an entrepreneur, the owner of Stuttering King Bakery, turning out batches of cookies, brownies and scones for cafes and businesses and groups that need catering.

"I was like, OK, I am destined to do something greater than that," Cottle says in the kitchen of his family's Scottsdale, Arizona, home, where he spends hours each day filling orders. He generates $1,200 monthly. He named the business for Britain's King George VI, whose struggles to speak were the subject of the film "The King's Speech."

Cottle is one of a few known small business owners with autism, a brain disorder that affects a person's ability to comprehend, communicate and interact socially. There are varying degrees of autism, but even autistic people with the greatest capabilities can find it impossible to get a job because they take longer to read or process information, or because they struggle to hold conversations. One in 68 people have some form of autism, according to government figures.

There is a growing movement to help autistic adults find jobs, but for Cottle and his family, the answer was a business of his own.

Cottle had taken training to do search and rescue operations. And he tried working in a bakery. Both times, he encountered people who didn't understand him, and who ended up yelling at and insulting him, his mother, Peg Cottle, says. He wanted to enroll in a culinary school, but an administrator gently told him and his parents it wouldn't work out. Four years ago, the Southwest Autism Research and Research Center, or SAARC, connected Cottle with a pastry chef who mentored him. In August 2012, he unexpectedly got an order from a cafe operated by Phoenix-based SAARC. At that point, Cottle told his parents he was starting his own baking business.

"I'm happy as an angel," he says.

CHANGING ATTITUDES

Many autistic people can run businesses if they're given the chance to discover something they like and develop skills around their interests, says Temple Grandin, one of the best-known advocates for people with autism.

"If you get them exposed to something, they can get a career," says Grandin, author of "The Autistic Brain."

Grandin, who has autism, didn't speak until she was four years old. In her teens, she was bullied by classmates who made fun of the way she spoke — she repeated the same phrases over and over.

"They called me 'tape recorder.'" she says.

In her teens, Grandin was exposed to horses at a boarding school and cattle on her aunt's ranch, and she began working with farm animals. She eventually created a business designing equipment for handling livestock.

People with the most severe autism aren't able to work because their disabilities limit their ability to learn. But it's only in the last two decades that society has come to realize that many people with disabilities including autism can work, says Paul Pizzutello, principal of Reach Academy, a West Harrison, New York, school whose students include some who are autistic.

"With many people with autism, it's not their intellect that a problem, it's their ability to engage with their environment and manage social contacts," he says.

INSPIRED BY A KING

When Cottle's parents tried to help him get a job, they explained to prospective bosses that because he is autistic, he needs more time to understand instructions. The companies either didn't want to take the time to learn how to work with him or they assumed Cottle might do or say inappropriate things. He grew frustrated by the unsuccessful attempts to find work.

"He was at a brick wall before he started his bakery," Peg Cottle says.

Soon after starting, Cottle and his mother attended entrepreneurship training classes offered by Seed Spot, an organization that helps socially responsible businesses.

"He's legitimate. The product he produces is the real deal. His disability doesn't even come into play as far as I'm concerned," says Chris Norcross, general manager of building company and Stuttering King customer Mortenson Construction. He orders as many as 300 cookies at a time.

The Cottles recently moved to a home with a larger kitchen, one that will allow Cottle to bake more and increase his revenue. He wants to expand.

"I hope I can set up shop and hopefully start interning and mentoring other people with autism," he says.

A FAMILY AFFAIR

Autistic owners don't run their companies by themselves. Support from family members to interact with the public, take orders and handle marketing and billing is vital.

Peg Cottle takes orders and does marketing for Stuttering King Bakery. Cottle is able to speak, but talking on the phone can be difficult. If a customer gets chatty and strays from the basics of placing an order, it can be hard for Cottle to understand.

Vinnie Ireland has little language ability but owns landscaping company Weed Whacking Weasel in Chapel Hill, North Carolina. The autistic man does leaf-blowing, hedge-trimming, mulching and other tasks, and works with an assistant trained to help the autistic. His mother, Lori Ireland, handles marketing and billing. The business has between six and 10 residential and commercial customers, depending on the time of year.

"When we tell him it's time to go to work, he jumps up," Lori Ireland says.

Autistic business owners are much like other entrepreneurs who concentrate on creating a product or delivering a service, and delegate the administrative work to others, says Vinnie's father, Gregg Ireland, a mutual fund portfolio manager and co-founder of Extraordinary Ventures, a group that finds opportunities for autistic people.

"In my business, I wouldn't be marketing. I wouldn't be able to keep the books," Gregg Ireland says.

Ireland's parents wanted to find a way to keep their son occupied and to build his self-esteem. They got the idea for Weed Whacking Weasel because he enjoyed doing gardening.

"A small business is so flexible and adaptable, and it's just suitable to solving our problems," Gregg Ireland says.

OVERCOMING AUTISM AND MORE

Joe Steffy is autistic and has Down syndrome, a congenital condition that affects a person's ability to understand and learn. He's unable to speak. But he has owned and run Poppin Joe's Gourmet Kettle Korn in Kansas City, Kansas, since 2005.

Steffy loves to work, his father Ray says. His family didn't believe teachers and counselors who said when he was in his teens that he'd need to live in a group home, that he wouldn't be able to work because he has a short attention span and can't focus. Instead, his parents looked for something he could do. They found the answer in a popcorn company.

About two-thirds of the company's revenue comes from events such as fairs and festivals. Customers also include convenience stores and corporations that give popcorn bags to employees.

"There isn't any job he can't do," Ray Steffy says of his son. He pops, seasons and bags the corn. And he supervises five part-time workers, all of whom he helps interview before they're hired.

Joe Steffy responded in writing to questions asked by a reporter. He said he loves his work and the independence it gives him.

"I have choices. I pay for things I love (skiing, swimming, flying)," he said. Steffy loves taking flights, especially to visit his sister in Milwaukee, his father says.

But Steffy also feels the stress that any business owner feels at times. When asked what he finds difficult about being a boss, he responded, "the intensity of producing (a) product when busy."

He oversees the entire process of popping the corn, paying close attention to details, says Christy Svoboda, one of Steffy's employees.

"He wants the bags looking presentable, like they come from a big manufacturer," Svoboda says.

PLAYING TO HIS STRENGTHS

Although Christopher Tidmarsh graduated from college with a degree in languages, environmental science and chemistry, he was in the same limbo as other autistic people. A post-college internship didn't work out because co-workers didn't make the accommodations he needed, like labeling drawers where he could find supplies, or communicating with him through emails rather than by talking. Job interviews were nearly impossible because he needs time to process the questions and come up with answers.

"People in the traditional work place don't know how to work with people with autism like me," Tidmarsh says.

The solution was starting Green Bridge Growers, a company that grows vegetables in water, a process called aquaponics. Tidmarsh has been building the business in South Bend, Indiana, with his mother, Janice Pilarski, the last two years. They came up with the idea for the business because it would allow him to use the knowledge he developed in college and internships with organic farmers.

While the company is still in its early stages, Tidmarsh is already thinking ahead to expand it beyond its current one greenhouse.

"Having my own business makes me feel as though I've accomplished something," he says.

_____

Online:

www.saarc.org

www.templegrandin.com

www.autismspeaks.org

www.stutteringkingbakery.com

www.poppinjoes.com

www.greenbridgegrowers.com

_____

Follow Joyce Rosenberg at www.twitter.com/JoyceMRosenberg


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US retail sales flat in July

WASHINGTON — U.S. retail sales were essentially flat in July, providing evidence that consumers have yet to shed their doubts about the economy despite recent job gains.

The Commerce Department said Wednesday that seasonally adjusted retail sales were unchanged in July compared with the prior month. Total sales rose a statistically insignificant $161 million from $439.6 billion in June.

Spending dipped at auto dealers and department stores last month. The losses were offset by gains at grocery stores, gasoline stations, restaurants, clothiers and building material stores.

The figures suggest that Americans are hesitant to spend, which could limit growth for the economy. Retail sales are closely watched because consumer spending accounts for 70 percent of economic activity.

Retail sales have flat-lined even though employers have added more than 200,000 jobs a month for the past six months. Payrolls increased by 209,000 in July and 298,000 in June.

But those gains have yet to meaningfully boost wage growth above inflation, causing spending to be more restrained.

Retail sales have increased 3.7 percent over the past 12 months, but economists doubt that spending can grow much faster unless incomes increase.

"Consumers just don't have the cash flow to finance sustained gains above 4 percent," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

The weak sales in July mean that consumer spending is off to a slow start in the third quarter.

Consumer spending did pick up in the April-June quarter after a sluggish showing in the first three months of the year. It grew at a 2.5 percent annual pace, after increasing just 1.2 percent in the first quarter, which was the weakest reading in nearly three years. In a healthy economy spending growth is typically 3 percent or higher.

Americans are sending mixed signals about their willingness to spend. Consumer confidence jumped to its highest level in nearly seven years in July, according to the Conference Board. That suggests Americans may be more willing to open their wallets.

And auto sales grew 9 percent in July from a year earlier to 1.4 million, the best showing for July since 2006.

But purchases of large items like autos may be leaving many Americans with less money to spend on discretionary items like clothing and electronics. Rising grocery prices may have squeezed household budgets as well.

A separate measure of consumer sentiment by the University of Michigan, released last week, showed that confidence slipped last month.


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Macy's 2Q profit falls short; sales outlook cut

NEW YORK — Macy's Inc. on Wednesday reported a 4 percent profit increase in its fiscal second quarter as business rebounded from slow sales earlier in the year.

But the department store chain cut its full-year outlook for a key sales measure, saying it couldn't make up the sales shortfall from the first quarter, when winter storms kept shoppers at home.

Shares of Macy's tumbled nearly 5 percent, or $2.83, to $56.93 in trading Wednesday.

Macy's, a standout among its peers throughout the economic recovery, is the first of the major retailers to report second-quarter results, which should provide insight into shoppers' mindset heading into the critical final months of the year. Wal-Mart Stores Inc., Nordstrom Inc., Kohl's Inc. and J.C. Penney Co. are set to report their results Thursday.

Like many retailers catering to the middle class, Macy's is facing economic challenges. While the job market is improving and the housing market is rebounding, the gains are not strong enough to sustain big shopping sprees.

Macy's said Wednesday that it's been pleased with the start to the back-to-school season, which typically begins mid-July and ends in mid-September. But Macy's said it needs to continue to discount to bring shoppers in.

"Our outlook for the fall season reflects our confident optimism tempered with the reality that many customers are feeling the impact of an economic environment that, at best, is improving very gradually," Chief Financial Officer Karen Hoguet told investors during a conference call Wednesday.

Still, Macy's, which also operates the upscale chain Bloomingdale's, has benefited from its focus on tailoring merchandise to local markets. It's also aiming to create a more seamless experience for shoppers who are going back and forth from stores to websites.

Macy's, which has corporate offices in Cincinnati and New York, said it just finished rolling out a program that allows shoppers to order online and then pick up items at stores. The company also said that its sharpened marketing and merchandising aimed at 13- to 30-year-old customers has re-energized the back-to-school business.

Macy's said its second-quarter net income increased to $292 million, or 80 cents per share, from $281 million, or 72 cents per share, in the same quarter a year earlier. The average estimate of analysts surveyed by Zacks Investment Research was for profit of 86 cents per share.

The company said revenue rose 3.3 percent to $6.27 billion from $6.07 billion in the same quarter a year earlier, but missed Wall Street forecasts. Analysts expected $6.29 billion, according to Zacks.

Macy's said that sales at stores open at least a year rose 4 percent. The figure includes business from departments licensed to third parties. But Macy's said that it now expects that measure to increase by 2 percent to 2.5 percent for the year, down from its previous projection of 2.5 percent to 3 percent.

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Follow Anne D'Innocenzio at http://www.Twitter.com/adinnocenzio


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Insurer WellPoint plans name change to Anthem

INDIANAPOLIS — WellPoint, one of the biggest players on the health care overhaul's new insurance exchanges, wants to switch its corporate name back to the Anthem brand its customers know by the end of this year.

The nation's second-largest health insurer said the name it used before combining in 2004 with WellPoint Health Networks is the best brand to go by in a market that's becoming more consumer-focused.

WellPoint sells coverage using its Anthem name in several states, including California, Kentucky and its home state of Indiana. The company doesn't sell plans under the WellPoint name.

The Blue Cross Blue Shield insurer has jumped aggressively into a new marketplace created by the health care overhaul in which brand recognition is important. The federal law debuted public insurance exchanges last fall on which insurers complete side-by-side to sell coverage to individuals, many of whom have income-based tax credits to help them buy a plan.

WellPoint added 769,000 customers through those exchanges. That represents a small slice of its total enrollment, which tops 37 million. But the insurer also depends more than its competitors on selling coverage in the individual market and to small companies that provide coverage for their employees, two more areas where brand recognition also is important.

"We believe it is important to call ourselves by the name that people know best — Anthem," CEO Joseph Swedish said in statement released Tuesday afternoon by the company.

The insurer plans to pick a new ticker symbol for its stock, which currently trades under "WLP," and it will need a new Web address to replace www.wellpoint.com .

A WellPoint spokeswoman declined to detail the company's cost for the name change.

WellPoint will hold a shareholder vote on the change to Anthem Inc. in November.

The company's shares closed at $108.66 on Tuesday and have climbed more than 17 percent so far this year, hitting several all-time highs. That advance tops the 4.6 percent gain from the Standard and Poor's 500 index.

___

AP Health Writer Matthew Perrone contributed to this report from Washington, D.C.


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US businesses boosted stockpiles 0.4 pct. in June

WASHINGTON — U.S. businesses added to their stockpiles at a slightly slower pace in June compared with May, possibly reflecting weaker sales in the past two months.

Business stockpiles increased 0.4 percent in June on a seasonally adjusted basis after a 0.5 percent gain in May, the Commerce Department said Wednesday. Sales rose 0.3 percent in June, matching the May increase. Sales have slowed after rapid gains from February through April.

The sales slowdown was also evident in a separate report showing that July retail sales were flat. But analysts say they think solid job growth will give a boost to consumer spending and the economy in coming months. Many foresee an annual economic growth rate of around 3 percent in the second half of this year.

The 0.4 percent rise in inventories in June was in line with economists' expectations. It reflected a 0.5 percent increase in inventories held by retailers and 0.3 percent gains in inventories held by manufacturers and by wholesalers.

Inventory growth is closely watched by economists. When companies add goods to store shelves and warehouses, it shows optimism about future demand. Increasing orders to restock lifts factory production and overall economic growth.

In the April-June quarter, an acceleration in inventory building contributed 40 percent of the economy's 4 percent annual growth rate during the period.

That strong growth rebound followed the first three months of the year, when severe winter weather put the economy into reverse, shrinking at an annual rate of 2.1 percent. During the first quarter, the slowdown in inventory restocking subtracted 1.2 percentage points from growth.

For the rest of the year, most analysts predict that inventory building will support economic growth but will not exhibit the sharp swings seen in the first and second quarters.


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Amazon debuts mobile payment app and card reader

NEW YORK — Amazon is taking direct aim at mobile payment systems such as Square by introducing the Amazon Local Register, a credit-card processing device and mobile app designed to help small business owners accept payments through their smartphones and tablets.

The move places the largest U.S. e-commerce retailer in competition with Square and other established mobile payment processing systems such as PayPal Here and Intuit's GoPayment.

Amazon's technology includes a card reader that attaches to a smartphone, Kindle or tablet. The reader processes credit or debit card payments via a secure Amazon network, the same one that processes Amazon.com purchases. The service is designed to serve on-the-go small business owners who might otherwise only accept cash or checks, including massage therapists, food truck operators and artists who sell their work at outdoor fairs.

Small businesses can start using Local Register by creating an account on http://localregister.amazon.com . Businesses must buy Amazon's card reader for $10, and download the free mobile app from the Amazon app store, the Apple app store or Google Play. The app works on most smartphones and tablets, including the Kindle Fire.

Similar to Amazon's strategy in many of its businesses, the company aims to compete on price in the mobile payment arena. For customers who sign up for the service by Oct. 31, Amazon will take as its fee 1.75 percent of each payment processed, or each "swipe" of the card, a special rate that will last until Jan. 1, 2016. For people who sign up after Oct. 31, Amazon will take a service fee of 2.5 percent of each payment processed.

The first $10 in transaction fees will be credited back to the customer, essentially paying for the card reader.

That's below most of its competitors' rates. Square takes a fee of 2.75 percent of each transaction. PayPal Here takes 2.7 percent of each transaction and Intuit's GoPayment rates start at 1.75 percent per transaction if businesses pay a $19.95 monthly rate or 2.4 percent of each transaction without a monthly payment.

"I've actually heard some business owners say the only thing that would make them change (point of sale) systems is cost savings," said Matt Swann, vice president of local commerce for Amazon.

"Payments are hard and that's one of the things that gets in the way of serving customers, especially for small businesses," Swann said. "Payment tools need to be inexpensive, simple and trusted to get the job done."

Amazon is entering the mobile payment space as the industry continues its rapid growth. IDC estimates that mobile payments could top a trillion dollars globally within the next five years. That includes all forms of mobile payments, such as items purchased online via a phone or tablet, fund transfers and items bought using a mobile gadget as a payment-accepting device.

It's difficult to isolate the exact portion of that market represented by point-of-sale mobile commerce, since the biggest player, Square, is private and doesn't divulge sales. Also, PayPal doesn't break out specific revenue from its Here product.

Baird Equity analyst Colin Sebastian said Amazon's move was partly expected since the company bought mobile payment company GoPago in 2013.

"The announcement suggests the lines between commerce and payment platforms continue to blur, and we still anticipate other large technology players (like Google and Apple) to expand their own existing payment initiatives, including in-store point-of-sale services."

Local Register is part of a slew of new products and services that Seattle-based Amazon has introduced this year. The company's Fire smartphone debuted this month. In April, it began selling the Fire TV, a media streaming device. Meanwhile, Amazon is expanding its same-day delivery service and offering grocery delivery and video and music streaming for its Prime loyalty club members.

Investors have largely given Amazon a pass on profit as it focuses on spending the money it makes to grow and expand into new areas. But there are some signs patience may be waning. The company's most recent quarterly report in July showed a deeper-than-expected second quarter loss despite surging revenue. Since then, the company's stock has fallen about 11 percent.

Amazon has been expanding into the payment space with other products: Amazon payments, which lets users with stored credit card or banking information on the Amazon site use their Amazon login to pay at sites other than Amazon. And Amazon Wallet, a beta app that lets users store gift cards, loyalty and rewards cards and membership cards and redeem them in store or online.


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