And a big drop in prices could again send speculators fleeing. In its financial prospectus, Coinbase warned that its business results would fluctuate with the volatility of crypto assets, “many of which are unpredictable and in certain instances are outside of our control.”

The industry’s biggest issue — fulfilling the promise that the technology is more than just a place to park money — could take another decade to play out.

“There’s no doubt we’re in the latest boom, and I don’t know if that’s going to turn tomorrow or two years from now,” Mr. Tomaino said. “But the busts and booms are always higher than the last.”

View Source

In Empty Amsterdam, Reconsidering Tourism

Support for the prostitutes and coffee shop owners was echoed in several interviews with Amsterdam residents, including Roy Van Kempen, a 31-year-old marketing manager who has lived in Amsterdam since 2008.

“Paris has the Eiffel Tower, and we have the Red Light District and this idea that everything is possible in Amsterdam. And I would like to keep it like this, actually,” he said.

But Irina, Mr. Helms, Mr. Van Kempen and half a dozen other Amsterdammers interviewed agreed that the city center has a major problem: A tourism “monoculture” has taken root, and residents are being pushed out. Businesses and services that used to cater to locals — high-quality bakeries, butcher shops, and the like — have been replaced by trinket shops, ice-cream parlors and “Nutella shops,” which serve takeaway waffles and other treats smeared in the hazelnut spread, mainly to tourists. Meanwhile, rising housing prices — due, in part, to the rise of Airbnb and other vacation rental platforms — have made the city center unaffordable for many locals.

This monoculture has been thrown into the spotlight over the past year, Ms. Udo said, adding that she had been struck by how deserted the city center has felt during the pandemic, especially compared to other parts of Amsterdam. “That was a real eye-opener,” she said. “There are not enough people living there and working there to get this liveliness back in the neighborhood when the visitors are gone.”

Alongside the restrictions proposed by the mayor’s office, city officials and some residents have also tried softer approaches to tackling the problems associated with tourism, some of which were rolled out with success before the pandemic.

One critical strategy has been to try to reach visitors before they even arrive. Amsterdam’s Enjoy and Respect campaign, which launched in 2018, targeted the primary source of the behavior problems — Dutch and British men between the ages of 18 and 34 — with messages about the fines they could incur by urinating in the street, littering or getting drunk in public areas. A subsequent survey showed that the messages had reached at least part of that audience, but measuring the campaign’s effectiveness has proved to be a challenge.

View Source

With Fewer Ads on Streaming, Brands Make More Movies

When the N.B.A. shut down its season last year because of the pandemic, one of the first phone calls Chris Paul made was to the Hollywood producer Brian Grazer. Mr. Paul, then a point guard with the Oklahoma Thunder, knew he wanted to chronicle what was going on, and he wanted Mr. Grazer’s help.

“The idea was, basically, film everything that had taken place in that game that night and what was going to come of it,” Mr. Paul said. “We had no clue what would happen next.”

The result was “The Day Sports Stood Still,” a documentary about the shutdown, the N.B.A.’s pandemic bubble and the impact of the Black Lives Matter movement on the league. (Mr. Paul appears in the film and is an executive producer.) It is a portrait of the ways the pandemic convulsed the sports world, but also an example of how Covid-19 has upended the entertainment industry.

The film, which debuts Wednesday on HBO and HBO Max, comes from Mr. Grazer’s Imagine Entertainment and a newer entrant to Hollywood: Waffle Iron Entertainment, Nike’s production entity.

General Electric Theater” television show from 1954 through 1962.

In the past decade, branded filmmaking has only proliferated.

Patagonia funded a feature-length documentary about dams, called “DamNation,” in 2014. Pepsi backed the 2018 movie “Uncle Drew,” which showcased the basketball star Kyrie Irving recreating his septuagenarian character from a popular series of Pepsi Max commercials. The film made $42 million and marked one of the first branded entertainment campaigns to be adapted into a major motion picture. “Gay Chorus Deep South,” a documentary produced by Airbnb, debuted on the festival circuit in 2019. And Apple’s acclaimed “Ted Lasso” began its life as an NBC Sports promotion for its acquisition of the broadcast rights to the English Premier League.

Imagine Entertainment, the production company founded by Mr. Grazer and Ron Howard in 1985, formed Imagine Brands in 2018 to pair companies with filmmakers, hiring Mr. Wilkes and Marc Gilbar, the creator of the “Uncle Drew” Pepsi campaign and an executive producer on the film, to run the group. The division has produced both feature-length documentaries and narrative films with their partners, which have included Unilever, Walmart and Ford.

Imagine is also working with the consumer goods giant Procter & Gamble. The company, which effectively created soap operas when it began to sponsor serial radio dramas in the 1930s to help promote its soap products, is cofinancing a feature-length film with Imagine called “Mars 2080.” It will be directed by Eliza McNitt and begin production later this year. The film, which is scheduled to be released theatrically by IMAX in 2022 before moving to a streaming service, focuses on a family resettling on Mars.

It grew out of a breakfast in New York in 2019, where Mr. Wilkes, Mr. Howard and Marc Pritchard, Procter & Gamble’s chief brand officer, discussed technology in the pipeline. The Imagine team later toured Procter & Gamble’s research labs in Cincinnati, seeing examples of its “home of the future” products and meeting its scientists.

Kimberly Doebereiner, the vice president of Procter & Gamble’s future of advertising division, said the company hoped to do more long-form storytelling, like “The Cost of Winning,” the four-part sports documentary its shaving brand Gillette produced. It debuted on HBO in November.

“We want to be more interesting so consumers are leaning into our experiences and we’re creating content that they want to see as opposed to messages that are annoying to them,” she said. “Finding a way to have content that is in places where ads don’t exist is definitely one of the reasons why we’re leaning into this.”

It’s all part of a deliberate shift by brands to try to integrate themselves more fully into consumers’ lives, the way companies like Apple and Amazon have, said Dipanjan Chatterjee, an analyst with Forrester. And they want to do so without commercials, which, he said, have “zero credibility” with consumers.

“If the right story has the right ingredients and it becomes worthwhile for sharing, it doesn’t come across as an intrusive bit of advertising,” Mr. Chatterjee said. “It feels much more like a natural part of our lives.”

Alessandro Uzielli, the head of Ford Motor Company’s global brand and entertainment division, first met with Imagine Brands in early 2018. He was looking for a way to augment Ford’s advertising campaign for its relaunched Bronco with a piece of entertainment that would reach a younger audience. The result was “John Bronco,” a 37-minute long mockumentary directed by Jake Szymanski (“Mike and Dave Need Wedding Dates”) and starring Walton Goggins (“Justified”) as the greatest fictional pitchman of all time.

The short film earned a slot in the Tribeca Film Festival and is now streaming on Hulu. In addition to featuring guest spots from Tim Meadows, Kareem Abdul-Jabbar and Bo Derek, it helped reintroduce the Bronco, a sport utility vehicle that the automaker pulled in the mid-1990s.

“This helped us speak to an audience that we probably weren’t going to speak to on our own,” Mr. Uzielli said.

“It was Imagine’s project, and we didn’t want to cloud their process, to try to make it feel like too much of a sales job,” he added.

Mr. Szymanski, who has directed both feature films and commercials, including ads for the Dodge Durango starring Will Ferrell’s “Anchorman” character Ron Burgundy, said Ford allowed him a great deal of creative freedom. “I think they could have tried to impose a much larger shadow on it than they did,” he said.

Now, Imagine, Mr. Szymanski and Mr. Goggins are trying to turn John Bronco into the next Ted Lasso — an effort in the early stages of development.

“It’s kind of a win-win,” Mr. Szymanski said of a possible television series based on Mr. Goggins’ character. “I don’t think Ford would have any creative control over it but to have a character named John Bronco in the world, that would be a good thing for them.”

View Source

In the Latin Quarter, Paris’s Intellectual Heartbeat Grows Fainter

PARIS — With their bright yellow awnings and sagging iron shelves, the Gibert Jeune bookstores, which sell cheap secondhand books, have been a fixture of the Latin Quarter in Paris for over a century, a mainstay of the neighborhood’s shabby-chic intellectual life and beloved by tourists too.

“So old and unchangeable,” said Anny Louchart, 74, a longtime customer who was recently rummaging through boxes of paperbacks at one of the stores, her voice filled with nostalgia.

But a sales assistant told Ms. Louchart that four of the store’s seven outposts in the area, including the one she stood in, would soon close, hard hit by a drop in sales because of the pandemic.

robbing their city of its soul has not spared the Latin Quarter, where fashion stores and fast-food restaurants have taken over many of the spaces once occupied by ancient cafes, bookstores and movie theaters. The neighborhood’s appeal has driven up rents, causing a once-vibrant student life to crumble.

Figures from the urban planning agency Apur show that 42 percent of the Latin Quarter’s bookstores have vanished in the past 20 years, and Paris’s open-air booksellers are also fighting for survival.

But the news of the closings of the Gibert Jeune bookstores — an institution that seemed immortal to many people — has sounded an unusual alarm. It strikes at the very heart of the neighborhood’s identity: access to culture at an affordable price.

Three Gibert Jeune stores just closed, and the fourth was expected to follow suit in the next few days.

student-led “May 1968” protests that took place there.

Ernest Hemingway wrote that Paris and its Latin Quarter allowed “a way of living well and working, no matter how poor you were.”

Michel Carmona, a historian and geographer specializing in Paris, said that the cultural erosion of the Latin Quarter started in the 1980s and was intertwined with the gradual decline of student life. “Cheap bookstores, cafes and movie theaters are primarily for students,” he said.

He added that residents of the neighborhood were increasingly “transit people” — wealthy foreigners eager to have a pied-à-terre or tourists renting Airbnb apartments.

At the heart of this dynamic lies a paradox: Gentrification uproots the same bohemian charm that draws people to the Latin Quarter.

Latin Quarter Committee that lobbies the authorities on defending the neighborhood’s cultural identity.

In an attempt to help, the Paris authorities said they had acquired the premises of some struggling bookstores and offered them rents slightly below the market rate.

In a statement, the leadership of the Gibert Jeune chain said that “the Covid crisis, with the emptying of the Latin Quarter of Paris,” had been the final straw.

apocalyptic” since the start of the pandemic. The gloom that has settled over Paris has been perhaps most conspicuous in the Latin Quarter, whose very heart — the cafes, restaurants, theaters and museums — stopped beating amid government lockdown restrictions to fight coronavirus infections.

The temporary shutdown of these cultural pillars has resonated among local residents as a dress rehearsal for the near future. Cafes and theaters have not reopened since the fall, when a second wave of infections was taking hold in France, and many fear that some will have gone out of business by the time restrictions are lifted.

On the Rue Champollion, a cobbled, narrow street close to the Sorbonne, the lines of film buffs that once stretched out on the sidewalks in the middle of the day are nowhere to be found today. The three art-house movie theaters there were closed for the lockdown

One of the theaters, Le Champo, has been displaying extracts from its guest book — “the memory box,” as it called them — behind its closed windows. A 2018 message left by the prolific screenwriter Jean-Claude Carrière, who died last month, read: “For Le Champo! So many years later … and how many more years to come?”

View Source

Penny Stocks Are the Latest Trading Mania

Of all the trading manias in recent months — Bitcoin, SPACs, meme stocks, nonfungible tokens — the latest has a long history of fraud and scandal. That’s right, penny stocks are booming, according to The Times’s Matt Phillips, who visited the “low-rent district of Wall Street.”

There were 1.9 trillion transactions last month on the over-the-counter markets, where such stocks trade, according to the industry regulator Finra. That’s up more than 2,000 percent from a year earlier, driven in large part by the surge in retail trading — enabled by commission-free trading from online brokerages — that has also stoked the frenzy for shares in GameStop and other speculative assets.

left interest rates at rock-bottom levels, despite improving economic growth forecasts. But the Upshot’s Neil Irwin notes that it may become harder for Jay Powell, the Fed chair, to wave away criticism of those who think monetary policy is too loose.

The I.R.S. delays the tax filing deadline. Americans have until May 17 to file their federal income taxes, a delay meant to help people cope with the pandemic’s economic upheaval and account for changes from the rescue plan.

separate its asset-management division, replace its chief and suspend bonuses over the unit’s role in financing Greensill Capital, the supply-chain financing lender that collapsed this month.

Gasoline may have hit its peak. Global demand may never return to pre-pandemic levels, the International Energy Agency said, as more electric vehicles hit the roads and transportation habits change. Use may rise for a bit in places like China and India, but overall consumption in industrialized economies will fall by 2023.

Senate confirms President Biden’s top trade official. Katherine Tai will become the U.S. trade representative. She is a prominent critic of China’s trade practices, signaling that the White House won’t completely walk back the Trump administration’s tough stance. Top U.S. officials are to meet their Chinese counterparts for the first time today, at a summit meeting in Alaska.

Google said today that it planned to invest $7 billion in offices and data centers in 19 U.S. states, making it the latest tech giant to expand its footprint while other companies retrench in a commercial real estate market roiled by the pandemic. Google’s C.E.O., Sundar Pichai, shared the plans in a blog post, saying that the move would create 10,000 jobs at the company this year. (Alphabet, Google’s parent company, employed around 135,000 people at the end of 2020.)

Google is expanding across the country. The plan includes investments in data centers in places like Nebraska, South Carolina and Texas. The company recently opened its first office in Minnesota and an operations center in Mississippi. It will open its first office in Houston this year.

“Coming together in person to collaborate and build community is core to Google’s culture,” Mr. Pichai wrote. Google was one of the first companies to tell employees to work from home, and it expects workers to begin returning to offices in September. When that happens, it will test a “flexible workweek,” with employees spending at least three days a week in the office.

Congressional hearing which focused on the relationship between brokers like Robinhood and market makers like Citadel Securities.


SPACs have already raised more money this year than in all of 2020, setting a record for blank-check deal volume. More than $84 billion has been raised by 264 SPACs to date, according to Dealogic, compared with $83 billion raised by 256 acquisition vehicles last year.

cooperating with an S.E.C. inquiry, after a short seller accused it of misleading investors about its business prospects.


Crypto Mom,” she’s been raising the profile of cryptocurrencies and blockchain technology since being appointed an S.E.C. commissioner in 2018. On “Blockchain Policy Matters,” an online show by the Blockchain Association, a trade group, Ms. Peirce described her hopes for innovation and regulation of the crypto world. DealBook got a preview of the show, which posts today.

bitcoin E.T.F.s have begun trading in Canada.

She welcomes Gary Gensler, the blockchain professor, as the agency’s next chief. President Biden’s pick to lead the S.E.C. has lectured on cryptocurrency and blockchain at M.I.T. since 2018. Ms. Peirce said she was “hopeful” that he will help the agency think “in a more sophisticated way.” She added that Mr. Gensler has “more inclination to regulate” than she does, but that she believes he’ can provide the regulatory clarity on crypto she has sought.

Blockchain technology could address the issues raised by meme-stock mania. That includes “concerns around settlement times, tracking where shares are, and who owns what shares when,” Ms. Pierce said. Distributed ledger technology like blockchain could eliminate common failure points in the financial system, rather than centralizing them, Ms. Peirce said, adding: “I hope that a lot of that innovation happens in the private sector as opposed to us taking it over as a securities regulator.”

Deals

Politics and policy

Tech

Best of the rest

We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com.

View Source

Extended Stay America to Be Acquired for $6 Billion: Live Updates

the hotel operator Extended Stay America for $6 billion, the latest deal premised on a post-pandemic rebound in travel.

The deal is a bet that the mid-tier hotel chain that provides guests with amenities like kitchens and laundry facilities will prosper as the U.S. economy recovers. The chain had a 74 percent occupancy rate last year, above the industry average, with many rooms filled by essential workers.

The company’s new owners hope those rooms will soon add more tourists and traveling professionals. Extended Stay has about 600 locations across the United States.

“Our occupancy levels across the brand now rival the pre-Covid levels,” Bruce Haase, Extended Stay’s chief executive, told analysts on the company’s earnings call last month. “And unlike the rest of the industry that was still reaching for occupancy, we can now turn much of our attention to driving higher rates.”

The company’s shares have more than doubled over the past year, and the acquisition offer is a 15 percent premium to its closing stock price at the end of last week.

Starwood and Blackstone both have experience investing in hospitality, and Blackstone has even owned Extended Stay before — twice. It acquired the company for $3.1 billion in 2004, before selling it three years later for $8 billion. It was also part of a consortium that bought the business out of bankruptcy in 2010, outbidding a group led by Starwood Capital. Extended Stay then went public in 2013.

Other private equity firms have similarly bet on a recovery of the hospitality industry. Apollo Global Management announced plans this month to join with Vici Properties to acquire the Venetian hotel and casino in a $6.25 billion deal that also includes the Las Vegas property’s large expo center.

A photo illustration of a Stripe logo on a smartphone.
Credit…Pavlo Gonchar/Sipa, via Associated Press

The payments company Stripe is worth $95 billion after a new round of funding, making it the most valuable start-up in the United States.

The San Francisco and Dublin-based company said on Sunday that it had raised $600 million in new funding from investors including Sequoia Capital, Fidelity Management and Ireland’s National Treasury Management Agency. The investment nearly triples Stripe’s last valuation of $35 billion.

The funding comes amid a surge in the adoption of digital tools and services in the pandemic as more people live, work and make purchases online. That has fueled a wave of investment into, and eye-popping valuations at, tech start-ups, as well as a frenzy of highly valued initial public offerings. Investors have valued Airbnb, the home rental start-up that recently went public, at $123 billion. Roblox, a kids gaming start-up, saw its valuation soar to $45 billion when it went public last week.

Founded in 2010, Stripe builds software that enables businesses to process payments online. As more people have turned to online shopping in the pandemic, Stripe’s offerings have been in demand. It is the largest among a class of fast-growing, highly valued financial technology companies.

Stripe is now processing hundreds of billions of dollars in payments each year across 42 countries, Dhivya Suryadevara, Stripe’s chief financial officer, said in an interview. “We are in a hyper-growth industry and within that, the company itself is experiencing hyper-growth,” she said. Ms. Suryadevara declined to share specifics on Stripe’s revenue or growth.

Credit…Richard Drew/Associated Press

Stripe has been considered a candidate to go public. Coinbase, another financial technology start-up, filed to go public later this month in a transaction that some expect could hit $100 billion. Robinhood, a stock trading app, has also seen its valuation surge in the pandemic.

Stripe said in an announcement that it planned to use the money to expand in Europe, including its office in Dublin. The company’s sibling founders, John Collison, 30, and Patrick, 32, were born in Ireland.

In a statement, John Collison, Stripe’s president, said the company would focus heavily on Europe this year. “The growth opportunity for the European digital economy is immense,” he said.

The company, which got its start working with start-ups and small businesses, will also invest in building more tools to help larger businesses handle payments. It counts 50 businesses that process more than $1 billion a year as customers.

Gene Sperling at the White House in 2013.
Credit…Chip Somodevilla/Getty Images

President Biden has tapped Gene Sperling, a longtime top economic aide to Democratic presidents, to oversee spending from the $1.9 trillion relief package that the president signed into law last week and planned to promote across the country this week.

Mr. Sperling was director of the National Economic Council under President Bill Clinton and President Barack Obama. In Mr. Obama’s administration, where he first served as a counselor in the Treasury Department, Mr. Sperling helped to coordinate a bailout of Detroit automakers and other parts of the administration’s response to the 2008 financial crisis.

He advised Mr. Biden’s campaign informally in 2020, helping to hone the campaign’s “Build Back Better” policy agenda. He will serve as the White House American Rescue Plan coordinator and as a senior adviser to Mr. Biden.

His appointment could be announced as soon as today. Mr. Biden is scheduled to give remarks on the implementation of his relief bill, known as the American Rescue Plan, on Monday afternoon. The White House press secretary, Jen Psaki, told reporters last week that Mr. Biden intended to appoint someone to “run point” on implementing the plan — a role that Mr. Biden held for the Obama administration’s $800 billion stimulus plan in 2009.

Mr. Sperling did not respond to a message seeking comment. Friends have described him in recent months as eager to join the administration, and he had been mentioned as a possible appointee to head the Office of Management and Budget after Mr. Biden’s first nominee for that position, Neera Tanden, withdrew amid Senate opposition. His appointment was reported earlier by Politico.

Mr. Sperling’s challenge with the rescue plan will be different than the one Mr. Biden faced in 2009, because the relief bill that Mr. Biden just signed differs starkly from Mr. Obama’s signature stimulus plan. The Biden plan is more than twice as large as Mr. Obama’s, and it centers on a wide range of payments to low- and middle-income Americans, including $1,400-per-person direct checks that Treasury officials started sending electronically to Americans over the weekend. It includes money meant to hasten the end of the Covid-19 pandemic, including billions for vaccine deployment and coronavirus testing.

But the plans also have similarities, including more than $400 billion each in total spending for school districts and state and local governments.

An administration official said Mr. Sperling would work with White House officials and leaders of federal agencies to hasten the delivery of the money, including partnering with state and local governments on their shares of relief spending from the bill.

The Maryland hotel executive Stewart W. Bainum Jr. had been planning to create a nonprofit group that would buy The Baltimore Sun.
Credit…Andrew Gombert/European Pressphoto Agency

A deal that would reshape the American newspaper industry has run into complications just one month after an agreement was reached, according to three people with knowledge of the matter.

As a result, the New York hedge fund Alden Global Capital may have to fend off a new suitor for Tribune Publishing, the chain that owns major metropolitan dailies across the country, including The Chicago Tribune, The Daily News and The Baltimore Sun, the people said.

On Feb. 16, Alden, the largest shareholder in Tribune Publishing, with a 32 percent stake, reached an agreement to buy the rest of the chain in a deal that valued the company at $630 million, reports The New York Times’s Marc Tracy. In the deal, Alden would take ownership of all the Tribune Publishing papers — and then spin off The Sun and two smaller Maryland papers, selling them for $65 million to a nonprofit organization controlled by the Maryland hotel magnate Stewart W. Bainum Jr.

In recent days, Mr. Bainum and Alden have found themselves at loggerheads over details of the operating agreements that would be in effect as the Maryland papers transitioned from one owner to another, the people said. In response, Mr. Bainum has taken a preliminary step toward making a bid for all of Tribune Publishing, the people said.

Mr. Bainum has asked a special committee of the Tribune Publishing board made up of three independent directors for permission to be released from a nondisclosure agreement prohibiting him from discussing the deal, so that he would be able to pursue partners for a new bid, the people said.

A spokeswoman for Mr. Bainum said he had no comment. Through a spokesman, Tribune Publishing’s special committee declined to comment. An Alden spokesman had no comment.

The pharmaceutical industry is popular right now, which is perhaps unsurprising considering that the end of the pandemic depends on Covid-19 vaccines. Drug makers’ rapid response to the crisis has transformed public sentiment about the industry, moving it from one of the most reviled to one of the most respected, according to new data from the Harris Poll, reported first in the DealBook newsletter.

A year of living in existential and economic fear created unlikely heroes. For the past year or so, the Harris Poll has monitored public sentiment in weekly surveys of more than 114,000 people. At the height of the emergency, more than half of respondents were afraid of dying from the virus and a similar share were afraid of losing their jobs. “Only in the past month, with vaccines rising and hospitalizations and deaths declining, is fear abating,” the report noted.

Business generally got good grades during the pandemic. Many respondents cited companies as important to solving problems, where previously they were considered the cause of social woes. Two-thirds said that companies could do a better job coordinating the vaccine rollout than the government could.

Approval ratings rose for many industries from January last year to February this year. But the reputation of the pharma industry — stained by its role in the opioid crisis and criticized for high drug prices — benefited the most. In January 2020, only 32 percent of respondents viewed the industry positively; late last month, that had almost doubled, to 62 percent.

“The pharmaceutical industry’s ability to innovate and perform under intense pressure and in a time of crisis is the ultimate validation for any business,” said John Gerzema, the chief executive of the Harris Poll.

The Tesla car manufacturing plant in Fremont, Calif., remained open during the pandemic despite restrictions put in place by local officials.
Credit…Jim Wilson/The New York Times

More than 400 workers at a Tesla plant in California tested positive for the coronavirus between May and December, according to public health data released by a transparency website.

The data provides the first glimpse into virus cases at Tesla, whose chief executive, Elon Musk, had played down the severity of the pandemic and reopened the plant, in Fremont, Calif., in May in defiance of guidelines issued by local public health officials.

Automakers across the country halted production and closed plants for two months last year from mid-March until mid-May. After resuming production, other automakers publicly announced when workers had tested positive for the virus and halted production to prevent further infection among employees and to disinfect work areas.

Tesla, however, has released little information about employee coronavirus cases.

The data was obtained by the website PlainSite, which works to make legal and governmental documents publicly accessible. It showed that 440 cases were reported at the Tesla plant, which employs some 10,000 people. The number of cases rose to 125 in December from fewer than 11 in May.

A year ago, after officials in California ordered manufacturing plants to close, Mr. Musk suggested on Twitter that the measure was unnecessary and that cases in the United States would be “close to zero.”

He also called virus restrictions “fascist,” threatened to move Tesla out of California, and then reopened the plant a week before health officials said it was safe to do so. More recently, Mr. Musk has questioned on Twitter the effectiveness of Covid vaccines.

Allison Herren Lee, the S.E.C.’s acting chair, will say that corporate disclosures on E.S.G. issues are a high priority.
Credit…Erin Scott/Reuters

Allison Herren Lee was named acting chair of the Securities and Exchange Commission in January, and she has been active since, especially when it comes to environmental, social and governance issues.

The agency has issued a flurry of notices that such disclosures will be priorities this year. On Monday, Ms. Lee, who was appointed as a commissioner by President Donald J. Trump in 2019, is speaking at the Center for American Progress, where she will call for input on additional E.S.G. transparency, according to prepared remarks reviewed by the DealBook newsletter.

The supposed distinction between what’s good and what’s profitable is diminishing, Ms. Lee will argue in the speech, saying that “acting in pursuit of the public interest and acting to maximize the bottom line” are complementary.

The S.E.C.’s job is to meet investor demand for data on a range of corporate activities. “That demand is not being met by the current voluntary framework,” she will say. “Human capital, human rights, climate change — these issues are fundamental to our markets, and investors want to and can help drive sustainable solutions on these issues.”

Ms. Lee will also argue that “political spending disclosure is inextricably linked to E.S.G. issues,” based on research showing that many companies have made climate pledges while donating to candidates with contradictory voting records. The same goes for racial justice initiatives, she will say.

Although Ms. Lee is only the acting chief, she’s laying the groundwork for more action, based on recent statements by Gary Gensler, President Biden’s choice to lead the S.E.C. In his confirmation hearing this month, Mr. Gensler said that investors increasingly wanted companies to disclose risks associated with climate change, diversity, political spending and other E.S.G. issues.

Not everyone at the S.E.C. is on board. Hester Peirce and Elad Roisman, fellow commissioners also appointed by Mr. Trump, recently protested the “steady flow” of climate and E.S.G. notices. They issued a public statement, asking, “Do these announcements represent a change from current commission practices or a continuation of the status quo with a new public relations twist?”

S&P 500

%

Nasdaq

%

As of

Data delayed at least 15 minutes

Source: Factset


Stocks on Wall Street were little changed on Monday after closing at a new high on Friday. Most European stock indexes were higher.

The yield on 10-year Treasury notes, a key driver of stock market movement lately, fell to 1.61 percent on Monday. It had climbed as high as 1.64 percent on Friday, a level not seen since February 2020, as investors considered whether a nearly $1.9 trillion stimulus package would be inflationary alongside an expected economic recovery as more Americans are vaccinated.

But on Sunday, Janet L. Yellen, the Treasury secretary, pushed back against these concerns. “Is there a risk of inflation? I think there’s a small risk and I think it’s manageable,” she said on ABC. She added that she expected prices to rise over the spring and summer but only temporarily because of how much they fell last year.

“We have had very well-anchored inflation expectations and a Federal Reserve that’s learned about how to manage inflation,” Ms. Yellen said.

View Source

Payments Start-Up Stripe Surges to $95 Billion Valuation

The payments company Stripe is worth $95 billion after a new round of funding, making it the most valuable start-up in the United States.

The San Francisco and Dublin-based company said on Sunday that it had raised $600 million in new funding from investors including Sequoia Capital, Fidelity Management and Ireland’s National Treasury Management Agency. The investment nearly triples Stripe’s last valuation of $35 billion.

The funding comes amid a surge in the adoption of digital tools and services in the pandemic as more people live, work and make purchases online. That has fueled a wave of investment into, and eye-popping valuations at, tech start-ups, as well as a frenzy of highly valued initial public offerings. Investors have valued Airbnb, the home rental start-up that recently went public, at $123 billion. Roblox, a kids gaming start-up, saw its valuation soar to $45 billion when it went public last week.

Founded in 2010, Stripe builds software that enables businesses to process payments online. As more people have turned to online shopping in the pandemic, Stripe’s offerings have been in demand. It is the largest among a class of fast-growing, highly valued financial technology companies.

Stripe is now processing hundreds of billions of dollars in payments each year across 42 countries, Dhivya Suryadevara, Stripe’s chief financial officer, said in an interview. “We are in a hyper-growth industry and within that, the company itself is experiencing hyper-growth,” she said. Ms. Suryadevara declined to share specifics on Stripe’s revenue or growth.

Stripe has been considered a candidate to go public. Coinbase, another financial technology start-up, filed to go public later this month in a transaction that some expect could hit $100 billion. Robinhood, a stock trading app, has also seen its valuation surge in the pandemic.

Stripe said in an announcement that it planned to use the money to expand in Europe, including its office in Dublin. The company’s sibling founders, John Collison, 30, and Patrick, 32, were born in Ireland.

In a statement, John Collison, Stripe’s president, said the company would focus heavily on Europe this year. “The growth opportunity for the European digital economy is immense,” he said.

The company, which got its start working with start-ups and small businesses, will also invest in building more tools to help larger businesses handle payments. It counts 50 businesses that process more than $1 billion a year as customers.

View Source

How Do Silicon Valley Techies Celebrate Getting Rich in a Pandemic?

For Palantir, a data analytics company that went public in September, Feb. 18 was “giraffe money” day. That was the first day that current and former employees could cash out all of their shares after the company went public.

In a Slack channel for former employees called Giraffe Money — an apparent reference to wealth that can support casual giraffe ownership — many anticipated their windfalls by sharing links, mostly in jest, to absurdly expensive home listings and boats, one former employee said.

But in reality, techies are spending in very different ways.

Instead of fine art, they are buying NFTs, or nonfungible tokens that represent ownership in pieces of digital art, memes or artifacts of internet history.

Instead of round-the-world travel, they are piling into Sprinter vans, the pandemic vacation essential. Jackie Conlin, a personal style consultant to tech executives, said she had created “van wardrobes” consisting of “comfy clothes that look put together but are oozing with laid-back vacation vibes” for clients going on road trips.

Instead of designer dresses, they are hunting for new outfits that look good on Zoom calls, virtual makeup lessons for the camera and makeovers for their Zoom backgrounds. Ms. Conlin said she redecorates a client’s Zoom room “to make whatever the other meeting attendees see look more cohesive, stylish and pleasing to the eye.” Clients are also buying weekly “comfort” gifts for friends and family like cozy blankets and robes, skin care items, pajamas, and games.

And instead of luxury condos, they are after houses with outdoor space, home gyms and good “Zoom rooms.” In San Francisco, newly rich techies are migrating from modern “white box” apartments in the neighborhood of SoMa to traditional prewar “trophy homes” in more established areas such as Nob Hill, Russian Hill, Pacific Heights and Sea Cliff, said Joel Goodrich, a real estate broker with Coldwell Banker Global Luxury in the city. They are excited by historic mansions with elaborate moldings and architecture.

View Source