How Can the City of London Survive Brexit?

LONDON — Coming out of Brexit this year, Britain’s government needed a new blueprint for the future of the nation’s financial services as cities like Amsterdam and Paris vied to become Europe’s next capital of investment and banking.

For some, the answer was Deliveroo, a London-based food delivery company with 100,000 riders on motor scooters and bicycles. Although it lost more than 226 million pounds (nearly $310 million) last year, Deliveroo offered the raw promise of many fast-growing tech start-ups — and it became a symbol of Britain’s new ambitions by deciding to go public and list its shares not in New York but on the London Stock Exchange.

Deliveroo is a “true British tech success story,” Rishi Sunak, Britain’s top finance official, said last month.

It was a false start. Deliveroo has since been called “the worst I.P.O. in London’s history.” On the first day of trading, March 31, the shares dropped 26 percent below the initial public offering price. (It has gotten worse.)

impacts from Brexit were immediate: On the first working day of 2021, trading in European shares shifted from venues in London to major cities in the bloc. Then London’s share of euro-denominated derivatives trading dropped sharply. There’s anxiety over what could go next.

Financial services are a vital component of Britain’s economy, making up 7 percent of gross domestic product — £132 billion in 2019, or some $170 billion. Exporting financial and other professional services is something Britain excels at. Membership in the European Union allowed London to serve as a financial base for the rest of the continent, and the City’s business ballooned. Four-tenths of financial services exports go to the European Union.

The government has begun hunting for ideas to bolster London’s reputation as a global finance center, in a series of reviews and consultations on a variety of issues, including I.P.O.s and trading regulations.

For many, the changes can’t come soon enough.

“The United Kingdom is not going to sit still and watch its financial services move across” to other European cities, said Alasdair Haynes, the founder of Aquis, a trading venue and stock exchange for equities in London. This will make the next three or four years exciting, he said.

But this optimism isn’t universal. The prospects of a warm and close relationship between Britain and the European Union have considerably dimmed. The two sides recently finished negotiations on a memorandum of understanding to establish a forum to discuss financial regulation, but the forum is voluntary, and the document has yet to be signed.

Duff & Phelps found that fewer see London as the world’s leading financial center but that it topped the leader board for regulatory environment.

Here are some of the plans.

Mr. Sunak told Parliament on March 3, the same day a review commissioned by the government recommended changes designed to encourage tech companies to go public in London. It proposed ideas, common in New York, that would let founders keep more control of their company after they began selling shares.

For example: allowing companies with two classes of shares and different voting rights (like Facebook) to list in the “premium” section of the London Stock Exchange, which could pave the way for them to be included in benchmark indexes. Or: allowing a company to go public while selling a smaller proportion of its shares than the current rules require.

The timing of Deliveroo’s I.P.O. wasn’t a coincidence. It listed with dual-class shares that give its co-founder William Shu more than half of the voting rights for three years — a structure set to “closely align” with the review’s recommendations, the company said.

But the idea may be a nonstarter among some of London’s institutional investors. Deliveroo flopped partly because they balked at the offer of shares with minimal voting rights.

the latest craze in financial markets, having taken off with investors and celebrities alike. SPACs are public shell companies that list on an exchange and then hunt for private companies to buy.

London has been left behind in the SPAC fervor. Last year, 248 SPACs listed in New York, and just four in London, according to data by Dealogic. In March, Cazoo, a British used car retailer, announced that it was going public via a SPAC in New York.

Already there are signs that Amsterdam could steal the lead in this booming business for Europe. There have been two SPACs each in London and Amsterdam this year, but the value of the listings in Amsterdam are five times that of London.

Britain’s financial regulatory agency said it would start consultations on SPACs soon and aim to have new rules in place by the summer.

regain ground lost to Germany, France and other European countries on the issuing of green bonds to finance projects to tackle climate change.

London’s finance industry isn’t in danger of imminent collapse, but because of Brexit a cornerstone of the British economy isn’t looking as formidable as it once did. And as London tries to keep up with New York, it is looking over its shoulders at the financial technology coming out of Asia.

The government has continuously billed Brexit as an opportunity to do more business with countries outside of the European Union. This will be essential as international companies begin to ask whether they want to base their European business in London or elsewhere.

When it comes to the future of Britain, it’s “almost a back-to-the-future approach of London as an international center as opposed to being an international and European center,” said Miles Celic, the chief executive of the CityUK, which represents the industry. “It’s doubling down on that international business.”

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Gauging the Prospects for International Travel

If 2020 was the summer of the pandemic-enforced road trip, many people seem to be hoping that 2021 will be the summer they can travel overseas. But that’s a big “if.” Roadblocks abound, among them, the rise of variant cases in popular destinations like Europe and confusion about the role that vaccine “passports” will play as people begin crossing borders. The recent pause on Johnson & Johnson’s coronavirus vaccine adds a new wrinkle.

Still, there is reason for optimism. The number of vaccine doses administered each day in the United States has tripled in the last few months, and President Biden has said the United States is still on track to vaccinate every American adult who wants it by the end of May. Globally, the number of shots has been rising, with more than 840 million vaccines administered worldwide.

Currently, Americans are restricted from entering many countries for nonessential trips. Travelers can check the U.S. State Department website for specific country entry restrictions, the Centers for Disease Control and Prevention website to view recommendations for international travelers (vaccinated and unvaccinated), and the C.D.C. COVID Data Tracker to monitor country conditions.

Iceland announced on March 16 that it would allow all vaccinated travelers into the country, Delta Air Lines followed soon after with an announcement that in May it would resume its Iceland routes from New York’s John F. Kennedy International Airport and Minneapolis St. Paul Airport, and offer a new route from Boston.

it’s been reported that the Biden administration may cancel existing travel restrictions for foreign nationals coming from Britain, Europe and Canada, around mid-May.

Still, the market is very much in flux, Mr. Grant said, so even though airlines may be increasing their flight schedules, they will continue to adjust to demand, possibly consolidating some of the flights.

United Airlines plans to increase international flights, but will still be operating just about half of its 2019 schedule. Among the flights it is eyeing are those between Chicago and Tokyo’s Haneda airport and Tel Aviv. The company also plans to increase service from Los Angeles to Sydney and Tokyo Narita.

Beach destinations that are open to Americans have seen an increase in demand and United is scheduling 90 more flights per week to or from the Caribbean, Mexico, Central and South America than it had in May 2019.

Patrick Quayle, the vice president of the United Airlines’ international network, said the company had been adding more flights to countries that were open, but was uncertain when additional destinations like Canada — which is currently closed to American tourists and which has recently seen a rise in cases — would be added to that list. United is trying to be nimble, he said, so “if something were to open up, we can put our aircraft in the sky quickly.”

At American Airlines, new routes are planned this summer from New York to Athens and Tel Aviv, and from Miami to Suriname and Tel Aviv. (Israel has announced it would allow some vaccinated tourists into the country beginning May 23.) American also announced it was restarting a number of flights to Europe. Beyond that, the company won’t speculate on where air travel will open next.

Travel-Ready Center allows passengers with booked tickets to view country-specific entry requirements and schedule tests, and will soon allow customers to upload and store their vaccination records on the website before they travel. American’s online travel tool on the company’s website already allows passengers to store required documents like proof of negative coronavirus tests.

One airline that has been focusing on flights between the United States and international destinations is not a U.S. carrier, but a Middle Eastern one: Emirates. The United Arab Emirates opened up to leisure and business travelers last July and Emirates is already offering direct service to Dubai from Los Angeles, San Francisco, Dallas, Houston, Chicago, Washington, D.C., New York and Boston. Passengers can also connect from there to other destinations in the Middle East, Africa and West Asia. The company recently announced it would resume its flight between Newark and Athens on June 1.

health and cleaning protocols they put in place during the pandemic. Some have been adding on-site virus testing. In addition, so-called “touchless technology,” like phone apps for ordering food, will continue to be rolled out. A report by Medallia Zingle, a communications software maker, found that 77 percent of consumers surveyed said the amount of in-person interaction required at a business will factor into their decision on whether or not they visit that business.

Marriott, one of the world’s largest international hotel companies, with some 7,600 hotels under 30 brands, has implemented a set of practices it calls Commitment to Clean that includes sanitizing properties with hospital-grade disinfectants, using air-purifying systems and spreading out lobby furniture to facilitate social distancing. Some properties offer free coronavirus testing.

Recently the company announced a pilot program introducing self-serve check-in kiosks that create room keys and allow guests to bypass the front desk. It is also adding more “grab and go” food options.

Hyatt, another major international brand, is also continuing to focus on cleanliness. Currently, it is working with the Global Biorisk Advisory Council and Cleveland Clinic to create its Global Care and Cleanliness Commitment. Those practices will “remain in place during the pandemic and beyond,” Amy Weinberg, Hyatt’s senior vice president of loyalty, brand marketing and consumer insights, wrote in an email.

its Hôtel du Palais in Biarritz, France, one of its last remaining closed properties. Almost all Hyatt properties have been open since last December, and in February the company began arranging for guests staying at Hyatt resorts in Latin America who planned to travel back to the United States to get free on-site coronavirus testing.

IHG’s Kimpton brand with 73 hotels in 11 countries plans on modifying its protocols this summer where it feels they are safe and local ordinances allow — for example, bringing back the manager-hosted social hour, a guest favorite.

The four Kimpton hotels in Britain that closed because of the pandemic are currently scheduled to reopen by the end of May. A new Kimpton property in Bangkok that opened in October of 2020 to local guests will welcome international travelers this fall. The company also plans to open a new hotel in Bali and one in Paris later this year.

“Hoteliers are chafing at the bit” to reopen and are able to do so quickly, said Robin Rossman, the managing director of the hospitality analytics company STR. The global hotel sector, though, will likely take up to two years to make a full return, he said.

Geographic Expeditions, which did not run any trips last summer, reported that its bookings have picked up significantly in the past few months. It plans to run 20 international trips this summer, both to familiar destinations such as the Galápagos, and some off the beaten path, including Pakistan and Namibia. There are only about 25 percent fewer guests signed up now than there were for 2019 summer trips, according to the chief executive, Brady Binstadt, and they are “spending more than before — they’re splurging on that nicer hotel suite or charter flight or special experience.”

The company chose its first destinations based on entry requirements and client interest and then adjusted itineraries to avoid crowds, minimize internal flights and make sure guests had access to required testing. One expedition required flying a Covid-19 test into a safari lodge in Botswana via helicopter.

A guest recently moved a Geographic Expeditions trip planned for 2022 departure forward to 2021. The company hopes this will become a trend.

Abercrombie & Kent restarted its small-group and private trips last fall and early winter to places like Egypt, Costa Rica and Tanzania, and is continuing to expand choices as countries open up. “There’s been a noticeable spike in people calling who have had their first vaccine,” said Stefanie Schmudde, the vice-president of product development and operations. Bookings in March rose more than 50 percent over bookings in February, according to the company.

Ms. Schmudde monitors global travel conditions intently, and can rattle off names of countries that have been open to tourists for a few months and those she expects to open soon. She predicts Japan and China will open up this fall, but does not expect Europe to welcome many visitors any time soon.

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Fervor Over Coinbase I.P.O. Spreads: Live Business Updates

Coinbase, a company that allows people and companies to buy and sell various digital currencies, begins publicly trading on Wednesday, after its shares received a reference price of $250 each on Tuesday evening.

Coinbase, which makes money through transaction fees, estimated it took in $1.8 billion in revenue in the first three months of the year as crypto prices have soared. On Wednesday, the fervor continued: Dogecoin, a cryptocurrency which started as a joke, jumped to a new high (albeit just 14 cents), and Bitcoin, the largest cryptocurrency, climbed above $64,000 to its own record high.

Shares in blockchain-linked companies also rose in premarket trading. Riot Blockchain shares rose nearly 5 percent. Shares in Bit Digital, a Chinese bitcoin mining company, rose nearly 25 percent in premarket trading in the United States.

Brian Armstrong, co-founder and chief executive of Coinbase, at the company’s office in San Francisco in 2017.
Credit…Michael Short/Bloomberg

Coinbase, the cryptocurrency exchange, is set to begin trading on the Nasdaq on Wednesday — and probably at a much higher valuation than the $65 billion preliminary estimate set last night. Here’s what you need to know about crypto’s move into the mainstream.

The company is the first major crypto business to trade publicly in the U.S. Its size means that its stock is likely to be held by mainstream index funds, giving average investors (indirect) exposure to the world of crypto. “Hopefully Coinbase going public and having its direct listing is going to be viewed as kind of a landmark moment for the crypto space,” Brian Armstrong, Coinbase’s chief executive, told Andrew in a CNBC interview.

Digital currency, once mocked as a tool for criminals and reckless speculators, is sliding into the mainstream. On Wednesday, Coinbase, a start-up that allows people to buy and sell cryptocurrencies, goes public on Nasdaq, marking the biggest step yet toward wider acceptance.

From Crypto Art to Trading Cards, Investment Manias Abound

Each market frenzy seems crazier than the last. But all have the same roots.

Why an Animated Flying Cat With a Pop-Tart Body Sold for Almost $600,000

A fast-growing market for digital art, ephemera and media is marrying the world’s taste for collectibles with cutting-edge technology.

Coinbase Users Say Crypto Start-Up Ignored Their Pleas for Help

As Coinbase prepares to be the first major cryptocurrency company to go public, it is struggling with basic customer service, users said.

Cryptocurrency Start-Up Underpaid Women and Black Employees, Data Shows

An analysis of internal pay data at the San Francisco company Coinbase shows disparities that were much larger than those in the tech industry.

Satoshi Tsunakawa, the chairman of Toshiba, in 2017. He will succeed Nobuaki Kurumatani, the company’s chief executive and president, whose departure was announced Wednesday.
Credit…Toru Hanai/Reuters

Toshiba announced on Wednesday the resignation of its top executive, Nobuaki Kurumatani, a move that comes as the Japanese conglomerate faces a potential buyout and a shareholder-initiated investigation into its management practices.

The board appointed Satoshi Tsunakawa — the current chairman and previous president — to replace Mr. Kurumatani, the company said in a brief statement. It did not explain the reason for the change.

Toshiba, once among the crown jewels of Japanese industry, a maker of products ranging from personal printers to railroad locomotives, has struggled in recent years, overshadowed by the legacy of a major accounting scandal and its acquisition of the American nuclear power company Westinghouse, which declared bankruptcy in 2017.

Seeking to rebuild, Toshiba looked for a new leader from outside its own ranks, and in 2018 it appointed Mr. Kurumatani, an executive with CVC Capital Partners, a private equity company based in Europe, as chief executive. It was an unusual decision for a company that had long been headed by company insiders. Last year, he was appointed president, solidifying his control over the firm.

During a news conference Wednesday, board member Osamu Nagayama deflected questions about the resignation, saying that Mr. Kurumatani, 63, had been considering the move for months and had come to the decision with his family. Unusually, Mr. Kurumatani did not make an appearance, but in a letter that was read aloud to reporters, he said he had chosen to resign after “achieving my mission to rebuild the company.”

The announcement on Wednesday followed months of unrest at Toshiba as disgruntled shareholders agitated for reforms aimed at improving the company’s performance and increasing its value.

Toshiba investors tried to shake up the company’s management at the annual general meeting last summer. But Mr. Kurumatani was re-elected — albeit with less than 60 percent of the vote — following a showdown that angered some key shareholders and raised questions about whether the company had inappropriately interfered in the decision.

Effissimo Capital Management, a Singapore-based hedge fund that holds about 10 percent of the company and had led the campaign to unseat its management team, subsequently called for an investigation into the outcome. Other shareholders agreed, voting, over management’s objections, to begin an independent inquiry in March.

Earlier this month, Toshiba announced that it had received a buyout offer from CVC Capital Partners for a reported $20 billion, a substantial premium on the company’s share price. The offer has raised questions of conflict of interest, as Mr. Kurumatani had previously served as president of CVC’s Japan office.

In recent years, Japanese companies have increasingly been the focus of activist investors from abroad, who believe that sclerotic management and opaque governance practices have prevented many of Japan’s blue chip firms from achieving their full value.

Hisako Ueno contributed reporting.

Lemonade, which sells insurance to consumers online, went public in July. Individual investors make up about half of its shareholder base.
Credit…Associated Press

Dozens of companies are suddenly paying more attention to individual investors.

Small investors who buy single stocks have not been a major force in financial markets for the better part of half a century. They were growing in influence before the pandemic, partly because of the popularity of free trading apps such as Robinhood.

But with millions of Americans stuck at home during the pandemic, the trading trend escalated, Matt Phillips reports for The New York Times.

“Retail trading now accounts for almost as much volume as mutual funds and hedge funds combined,” Amelia Garnett, an executive at Goldman Sachs’s Global Markets Division, said on a recent podcast produced by the firm. “So, the retail impact is really meaningful right now.”

Tesla has long eschewed traditional communications with Wall Street. Ark Investment Management — the high-flying, tech-focused exchange-traded fund company run by the investor Cathie Wood — and Palantir Technologies, are also trying to reach small investors directly.

Before Lemonade, a company that sells insurance to consumers online, went public in July, it went on a traditional tour of Wall Street, meeting big investors and talking up its prospects. However, the company has since discovered that more than half of its shares are held by small investors, excluding insiders who own the stock, said Daniel Schreiber, its chief executive.

That has prompted a strategy adjustment. In addition to spending time communicating with analysts whose “buy” or “sell” ratings on the stock can move its price, Mr. Schreiber said, he has made a point of doing interviews on podcasts, websites and YouTube programs popular with retail investors.

“I think that they are, today, far more influential on, and command far more following in terms of stock buying or selling power than the mighty Goldman Sachs does,” Mr. Schreiber said. “And we’ve seen that in our own stock.”

East Austin, Texas, in February, when a huge storm left more than $10 billion in losses that insurers could dispute.
Credit…Bronte Wittpenn/Austin American-Statesman, via Associated Press

Two months after the storm crippled large swaths of Texas, insurers are sketching out a legal strategy to pin the costs on utilities and power companies that they say failed to adequately prepare for bitterly cold weather.

At stake could be more than $10 billion in insured losses for insurers and their business partners, as well as almost-certain premium increases for property owners if the insurers have to pay for the damage themselves, Mary Williams Walsh reports for The New York Times.

But decades of deregulation have made the state’s power grid a dizzying web of companies that could make determining fault tricky. Insurers will also have to show that the damage was the result of “gross negligence.” And there are dozens of small companies in the supply chain — some of which have gone bankrupt since the storm — that interact with one another in myriad ways.

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Some companies are focusing on wooing individual investors, who are becoming a market force.

Dozens of companies are suddenly paying more attention to individual investors.

Small investors who buy single stocks have not been a major force in financial markets for the better part of half a century. They were growing in influence before the pandemic, partly because of the popularity of free trading apps such as Robinhood.

But with millions of Americans stuck at home during the pandemic, the trading trend escalated, Matt Phillips reports for The New York Times.

“Retail trading now accounts for almost as much volume as mutual funds and hedge funds combined,” Amelia Garnett, an executive at Goldman Sachs’s Global Markets Division, said on a recent podcast produced by the firm. “So, the retail impact is really meaningful right now.”

Tesla has long eschewed traditional communications with Wall Street. Ark Investment Management — the high-flying, tech-focused exchange-traded fund company run by the investor Cathie Wood — and Palantir Technologies, are also trying to reach small investors directly.

Before Lemonade, a company that sells insurance to consumers online, went public in July, it went on a traditional tour of Wall Street, meeting big investors and talking up its prospects. However, the company has since discovered that more than half of its shares are held by small investors, excluding insiders who own the stock, said Daniel Schreiber, its chief executive.

That has prompted a strategy adjustment. In addition to spending time communicating with analysts whose “buy” or “sell” ratings on the stock can move its price, Mr. Schreiber said, he has made a point of doing interviews on podcasts, websites and YouTube programs popular with retail investors.

“I think that they are, today, far more influential on, and command far more following in terms of stock buying or selling power than the mighty Goldman Sachs does,” Mr. Schreiber said. “And we’ve seen that in our own stock.”

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How to Use Technology to Prepare for Travel During the Coronavirus Pandemic

Once you’ve figured out the logistics to get in and get out, you will have more homework to do. Don’t expect your favorite airport restaurants or lounges to be operating normally. Before leaving home, check your airport website to see what’s open near your terminal; if your options are lacking, pack a meal. Likewise, when you arrive at your destination, make sure to check the websites for the restaurants and tourist sites that you hope to visit for their hours. The travel industry is far from returning to normal.

To make traveling smoother, airlines may require travelers to present a vaccine passport, digital documentation proving that they have been vaccinated. Airlines have been testing mobile health apps including CommonPass, ICC AOKpass, VeriFLY and the International Air Transport Association’s travel pass app to ensure travelers can present their health data in a secure, verifiable way.

Most of the apps will, in theory, work like this: If you get vaccinated at a medical facility, the app connects with the database of that facility to retrieve your information. The app then loads a QR code, which is a digital bar code, verifying that the vaccine was administered. You could then show that bar code at the airport check-in counter, the boarding gate or immigration control.

Too much is still up in the air with vaccine passports for widespread use, Mr. Harteveldt said. Airlines, government agencies and cruise lines are still testing the apps to determine which products are the most reliable and easy to use. Things could get chaotic if different parties require people to download different passport apps, and many experiments may fail. Vaccine passports have also set off a fierce political debate over the legality of requiring digital credentials for a vaccine that is ostensibly voluntary. (The Biden administration has said it would not push for mandatory vaccination credentials or a federal vaccine database.)

So the best we can do with vaccine passports right now is nothing. Don’t upload your data to any of the apps just yet — but when it comes time to travel, do check your airline’s website for updates on vaccine passports and follow the instructions.

The rest of your travel tech prep will largely be the same as it was in pre-Covid times. Pack a spare battery pack, charging cables and a safety pin to eject your SIM card. Then do the following:

Unlock your phone. Your phone must be unlocked to work with foreign SIM cards. Many newer smartphones come unlocked by default, but you should call your carrier to confirm that your device will work with other wireless carriers.

Buy a foreign SIM card. If you’re traveling abroad, you can avoid paying expensive international roaming fees to your carrier by temporarily using a foreign phone plan. When you arrive at your destination, you can usually buy a SIM card at the airport or a cellphone store and insert that into your phone; you can also order a SIM card online and have it delivered to your home before you travel. (Some newer smartphones work with eSIMs, which are essentially a digital SIM card to add a separate phone plan. I’ve had mixed experiences, including eSIMs that failed to activate when I reached my destination, so I prefer physical SIMs.)

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Disney and ad-tech firms agree to privacy changes for children’s apps.

In legal settlements that could reshape the children’s app market, Disney, Viacom and 10 advertising technology firms have agreed to remove certain advertising software from children’s apps to address accusations that they violated the privacy of millions of youngsters.

The agreements resolve three related class-action cases involving some of the largest ad-tech companies — including Twitter’s MoPub — and some of the most popular children’s apps — including “Subway Surfers,” an animated game from Denmark that users worldwide have installed more than 1.5 billion times, according to Sensor Tower, an app research firm.

The lawsuits accused the companies of placing tracking software in popular children’s gaming apps without parents’ knowledge or consent, in violation of state privacy and fair business practice laws. Such trackers can be used to profile children across apps and devices, target them with ads and push them to make in-app purchases, according to legal filings in the case.

Now, under the settlements approved on Monday by a judge in the U.S. District Court for the Northern District of California, the companies have agreed to remove or disable tracking software that could be used to target children with ads. Developers will still be able to show contextual ads based on an app’s content.

cases against individual developers and ad-tech firms. But children’s advocates said the class-action cases, which involved a much larger swath of the app and ad tech marketplace, could prompt industrywide changes for apps and ads aimed at young people.

Viacom, whose settlement covers one of its children’s apps, called “Llama Spit Spit,” Kiloo, a Danish company that codeveloped “Subway Surfers,” and Twitter declined to comment. Disney, whose settlement agreement covers its children’s apps in the United States, did not immediately response to emails seeking comment.

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Corporate Leaders Urged to Wade Into Debate Over Voting Laws: Live Updates

across the United States. Snap polls during the call suggested that most of the participants favor doing something, though what that would be isn’t yet clear, the DealBook newsletter reports.

The voting-rights debate is fraught for companies, putting them at the center of an increasingly heated partisan battle. Ken Chenault, the former American Express chief, and Ken Frazier, the Merck chief executive, urged the executives on the call to publicly state their support for broader ballot access. The two had gathered 70 fellow Black leaders to sign a letter last month calling on companies to fight bills that restrict voting rights, like the one that recently passed in Georgia.

A survey this month of 1,221 Americans shows support for companies wading into politics. The data, provided by the market research firm Morning Consult, was presented to the business leaders on the call, which was convened by Jeffrey Sonnenfeld, a professor at Yale. Here are some highlights:

In a separate survey of 2,200 Americans by Morning Consult, 62 percent of “avid” fans said they supported Major League Baseball’s decision to move the All-Star Game from Georgia in response to the state’s new voting restrictions. Support was lower among all adults (39 percent), but if the league was worried about the effect on its most dedicated fans, this is an important finding.

Satya Nadella, the chief executive of Microsoft, which is pushing to expand its health care technology services.
Credit…Kyle Johnson for The New York Times

Microsoft said on Monday that it would buy Nuance Communications, a provider of artificial intelligence and speech-recognition software, for about $16 billion, as it pushes to expand its health care technology services.

In buying Nuance, whose products include Dragon medical transcription software, Microsoft is hoping to bolster its offerings for the fast-growing field of medical computing. The two companies have already partnered on ways to automate the process of transcribing doctors’ conversations with patients and integrating that information into patients’ medical records.

Nuance is also known for providing the speech recognition software behind Siri, Apple’s virtual assistant. In recent years, however, it has focused on creating and selling software focused on the medical field.

Under the terms of the deal announced on Monday, Microsoft will pay $56 a share in cash, up 23 percent from Nuance’s closing price on Friday. Including assumed debt, the transaction values Nuance at about $19.7 billion.

The deal is Microsoft’s biggest takeover since its 2015 acquisition of LinkedIn for $26.2 billion.

“Nuance provides the A.I. layer at the health care point of delivery and is a pioneer in the real-world application of enterprise A.I.,” Satya Nadella, Microsoft’s chief executive, said in a statement.

“We’re not talking about how the caregiving crisis is impacting the learning loss for kids and how it’s disproportionately impacting girls and girls of color,” said Reshma Saujani, the founder of the nonprofit group Girls Who Code.
Credit…Amr Alfiky/The New York Times

A year into the pandemic, there are signs that the American economy is stirring back to life, with a falling unemployment rate and a growing number of people back at work. Even mothers — who left their jobs in droves in the last year in large part because of increased caregiving duties — are slowly re-entering the work force.

But young Americans — particularly women between the ages of 16 and 24 — are living an altogether different reality, with higher rates of unemployment than older adults. And many thousands, possibly even millions, are postponing their education, which can delay their entry into the work force.

New research suggests that the number of “disconnected” young people — defined as those who are in neither school nor the work force — is growing. For young women, experts said, the caregiving crisis may be a major reason many have delayed their education or careers.

Last year, unemployment among young adults jumped to 27.4 percent in April from 7.8 percent in February. The rate was almost double the 14 percent overall unemployment rate in April and was the highest for that age group in the last two decades, according to the Bureau of Labor Statistics.

At its peak in April, the unemployment rate for young women over all hit 30 percent — with a 22 percent rate for white women in that age group, 30 percent for Black women and 31 percent for Latina women.

Those numbers are starting to improve as many female-dominated industries that shed jobs at the start of the pandemic, like leisure, retail and education, are adding them back. But roughly 18 percent of the 1.9 million women who left the work force since last February — or about 360,000 — were 16 to 24, according to an analysis of seasonally unadjusted numbers by the National Women’s Law Center.

At the same time, the number of women who have dropped out of some form of education or plan to is on the rise. During the pandemic, more women than men consistently reported that they had canceled plans to take postsecondary classes or planned to take fewer classes, according to a series of surveys by the U.S. Census Bureau since last April.

“We’ve focused in particular on the digital divide and the impact of that on the learning loss for kids,” said Reshma Saujani, founder of the nonprofit group Girls Who Code. “But we’re not talking about how the caregiving crisis is impacting the learning loss for kids and how it’s disproportionately impacting girls and girls of color.”

All of this can have long-term knock-on effects. Even temporary unemployment or an education setback at a young age can drag down someone’s potential for earnings, job stability and even homeownership years down the line, according to a 2018 study by Measure of America that tracked disconnected youth over the course of 15 years.

Decorating a restaurant before its reopening on April 12.
Credit…Andrew Testa for The New York Times

For the past year, the British economy has yo-yoed with the government’s pandemic restrictions. On Monday, as shops, outdoor dining, gyms and hairdressers reopened across England, the next bounce began.

The pandemic has left Britain with deep economic wounds that have shattered historical records: the worst recession in three centuries and record levels of government borrowing outside wartime.

Last March and April, there was an economic slump unlike anything ever seen before when schools, workplaces and businesses abruptly shut. Then a summertime boom, when restrictions eased and the government helped usher people out of their homes with a popular meal-discount initiative called “Eat Out to Help Out.”

Beginning in the fall, a second wave of the pandemic stalled the recovery, though the economic impact wasn’t as severe as it had been last spring. Still, the government has spent about 344 billion pounds, or $471 billion, on its pandemic response. To pay for it, the government has borrowed a record sum and is planning the first increase in corporate taxes since 1974 to help rebalance its budget.

By the end of the year, the size of Britain’s economy will be back where it was at the end of 2019, the Bank of England predicts. “The economy is poised like a coiled spring,” Andy Haldane, the central bank’s chief economist said in February. “As its energies are released, the recovery should be one to remember after a year to forget.”

Even though a lot of retail spending has shifted online, reopening shop doors will make a huge difference to many businesses.

Daunt Books, a small chain of independent bookstores, was busy preparing to reopen for the past week, including offering a click-and-collect service in all of its stores. Throughout the lockdown, a skeleton crew “worked harder than they’ve ever worked before, just to keep a trickle” of revenue coming in from online and telephone orders, said Brett Wolstencroft, the bookseller’s manager.

“The worst moment for us was December,” Mr. Wolstencroft said, when shops were shut in large parts of the country beginning on Dec. 20. “Realizing you’re losing your last bit of Christmas is exceptionally tough.”

He says he is looking forward to having customers return to browse the shelves and talk to the sellers. “We’d sort of turned ourselves into a warehouse” during the lockdown, he said, “but that doesn’t work for a good bookshop.”

With the likes of pubs, hairdressers, cinemas and hotels shut for months on end, Brits have built up more than £180 billion in excess savings, according to government estimates. That money, once people can get out more, is expected to be the engine of this recovery — even though economists are debating how much of this windfall will end up in the tills of these businesses.

Monday is just one phase of the reopening. Pubs can serve customers only in outdoor seating areas, and less than half, about 15,000, have such facilities. Hotels will also remain closed for at least another month alongside indoor dining, museums and theaters. The next reopening phase is scheduled for May 17.

Over all, two-fifths of hospitality businesses have outside space, said Kate Nicholls, the chief executive of U.K. Hospitality, a trade group.

“Monday is a really positive start,” she said. “It helps us to get businesses gradually back open, get staff gradually back off furlough and build up toward the real reopening of hospitality that will be May 17.”

Part of Saudi Aramco’s giant Ras Tanura oil terminal. The company said it would raise $12.4 billion from selling a minority stake in its oil pipeline business.
Credit…Ahmed Jadallah/Reuters

Saudi Aramco, the national oil company of Saudi Arabia, has reached a deal to raise $12.4 billion from the sale of a 49 percent stake in a pipeline-rights company.

The money will come from a consortium led by EIG Global Energy Partners, a Washington-based investor in pipelines and other energy infrastructure.

Under the arrangement announced on Friday, the investor group will buy 49 percent of a new company called Aramco Oil Pipelines, which will have the rights to 25 years of payments from Aramco for transporting oil through Saudi Arabia’s pipeline networks.

Aramco is under pressure from its main owner, the Saudi government, to generate cash to finance state operations as well as investments like new cities to diversify the economy away from oil.

The company has pledged to pay $75 billion in annual dividends, nearly all to the government, as well as other taxes.

Last year, the dividends came to well in excess of the company’s net income of $49 billion. Recently, Aramco was tapped by Crown Prince Mohammed bin Salman, the kingdom’s main policymaker, to lead a new domestic investment drive to build up the Saudi economy.

The pipeline sale “reinforces Aramco’s role as a catalyst for attracting significant foreign investment into the Kingdom,” Aramco said in a statement.

From Saudi Arabia’s perspective, the deal has the virtue of raising money up front without giving up control. Aramco will own a 51 percent majority share in the pipeline company and “retain full ownership and operational control” of the pipes the company said.

Aramco said Saudi Arabia would retain control over how much oil the company produces.

Abu Dhabi, Saudi Arabia’s oil-rich neighbor, has struck similar oil and gas deals with outside investors.

Jerome Powell, the Federal Reserve chair, said the economy was at an “inflection point.”
Credit…Pool photo by [PLEASE FILL IN]

Global stocks drifted lower from recent highs on Monday ahead of a batch of first-quarter earnings reports. The S&P 500 was set to open 0.4 percent lower, futures indicated, after reaching a record high on Friday.

Most European stocks indexes fell. The Stoxx Europe 600 also declined from a high reached on Friday. The index was 0.2 percent lower on Monday, with energy and airline stocks among the companies that fell the most. The FTSE 100 in Britain was down 0.2 percent.

Stocks have recently been propelled higher by expectations that the global economy will recover strongly from the pandemic this year. Much of the impetus is expected to come from the United States, where trillions of dollars are being spent on various economic recovery packages. On Sunday, Federal Reserve chair, Jerome H. Powell, said the economy was at an “inflection point” and on the cusp of growing more quickly.

But there are still concerns about the uneven nature of the global recovery. For example, parts of Europe and South America are still struggling to contain outbreaks of the coronavirus and the vaccine rollout is slower than in the United States and Britain.

The deadline to file a 2020 individual federal return and pay any tax owed has been extended to May 17. But some deadlines remain April 15, Ann Carrns reports for The New York Times. So it’s a good idea to double-check deadlines.

Most, but not all, states are following the extended federal deadlines, and a few have adopted even more generous extensions.

But the Internal Revenue Service has not postponed the deadline for making first-quarter 2021 estimated tax payments. This year, the first estimated tax deadline remains April 15. Some members of Congress are pushing for the I.R.S. to reconcile the deadlines, but it’s unclear whether that will happen, with April 15 less than a week away.

Most states have retained their usual deadlines for first-quarter estimated taxes. One exception is Maryland, which moved both its filing deadline and the deadline for first- and second-quarter estimated tax payments to July 15.

During the pandemic, Amazon workers around the country have joined groups and staged walkouts to amplify their concerns about safety and pay.
Credit…Elaine Cromie for The New York Times

Even as unionization elections, like the lopsided vote against a union at Amazon’s warehouse in Bessemer, Ala., have often proven futile, labor has enjoyed some success over the years with an alternative model — what sociologist of labor calls the “air war plus ground war.”

The idea is to combine workplace actions like walkouts (the ground war) with pressure on company executives through public relations campaigns that highlight labor conditions and enlist the support of public figures (the air war). The Service Employees International Union used the strategy to organize janitors beginning in the 1980s, and to win gains for fast-food workers in the past few years, including wage increases across the industry, Noam Scheiber reports for The New York Times.

“There are almost never any elections,” said Ruth Milkman, a sociologist of labor at the Graduate Center of the City University of New York. “It’s all about putting pressure on decision makers at the top.”

Labor leaders and progressive activists and politicians said they intended to escalate both the ground war and the air war against Amazon after the failed union election, though some skeptics within the labor movement are likely to resist spending more revenue, which is in the billions of dollars a year but declining.

Stuart Appelbaum, the president of the retail workers union, said in an interview that elections should remain an important part of labor’s Amazon strategy. “I think we opened the door,” he said. “If you want to build real power, you have to do it with a majority of workers.”

But other leaders said elections should be de-emphasized. Jesse Case, secretary-treasurer of a Teamsters local in Iowa, said the Teamsters were trying to organize Amazon workers in Iowa so they could take actions like labor stoppages and enlist members of the community — for example, by turning them out for rallies.

Unfair housing, zoning and lending policies have prevented generations of Black families from gathering assets.
Credit…Alyssa Schukar for The New York Times

President Biden’s sweeping pandemic relief bill and his multitrillion-dollar initiatives to rebuild infrastructure and increase wages for health care workers are intended to help ease the economic disadvantages facing racial minorities.

Yet academic experts and some policymakers say still more will be needed to repair a yawning racial wealth gap, in which Black households have a mere 12 cents for every dollar that a typical white household holds.

The disparity results in something of a rigged game for Black Americans, in which they start out behind in economic terms at birth and fall further behind during their lives, Patricia Cohen writes in The New York Times. Black graduates, for example, have to take out bigger loans to cover college costs, compelling them to start out in more debt — on average $25,000 more — than their white counterparts.

The persistence of the problem affects the entire economy: A study by McKinsey & Company found that consumption and investment lost because of the gap cost the U.S. economy $1 trillion to $1.5 trillion over 10 years.

It also has deep historical roots. African-Americans were left out of the Homestead Act, which distributed land to citizens in the 19th century, and largely excluded from federal mortgage loan support programs in the 20th century.

As a result, the gap is unlikely to shrink substantially without policies that specifically address it, such as government-funded accounts that provide children with assets at birth. Several states have experimented with these programs on a small scale.

“We have very clear evidence that if we create an account of birth for everyone and provide a little more resources to people at the bottom, then all these babies accumulate assets,” said Michael Sherraden, founding director of the Center for Social Development at Washington University in St. Louis, which is running an experimental program in Oklahoma. “Kids of color accumulate assets as fast as white kids.”

A QR code in a London cafe, for use with the British government’s contact tracing app.
Credit…Neil Hall/EPA, via Shutterstock

An update to the contact tracing app used in England and Wales has been blocked from release by Apple and Google because of privacy concerns, renewing a feud between the British government and the two tech giants about how smartphones can be used to track Covid-19 cases.

In an attempt to trace possible infections, the update to the app would have allowed a person who tests positive for the virus to upload a list of restaurants, shops and other venues they recently visited, data that would be used by health officials for contact tracing. But collecting such location information violates the terms of service that Google and Apple forced governments to agree to in exchange for making contact tracing apps available on their app stores.

The dispute, first reported by the BBC, highlights the supernational role that Apple and Google have played responding to the virus. The companies, which control the software of nearly every smartphone in the world, have forced governments to design contact tracing apps to their privacy specifications, or risk not have the tracking apps made available to the public. The gatekeeper role has frustrated policymakers in Britain, France and elsewhere, who have argued those public health decisions are for governments, not private companies to make.

The release of the app update was to coincide with England’s relaxation of lockdown rules. On Monday, the country began loosening months of Covid-related restrictions, allowing nonessential shops to reopen, and pubs and restaurants to serve customers outdoors.

An older version of the contact tracing app continues to work, but the data is stored on a person’s device, rather than being kept in a centralized database.

To use the app, visitors to a store or restaurant take a photo of a poster with a QR code displayed in the business, and the software keeps a record of the visit in case someone at the same location later tests positive.

Apple and Google are blocking the update that would let people upload the history of the locations they have checked into directly to health authorities.

The Department of Health and Social Care said it is in discussions with Apple and Google to “provide beneficial updates to the app which protect the public.”

Apple did not respond to a request for comment. Google declined to comment.

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Myanmar Coup Puts the Seal on Autocracy’s Rise in Southeast Asia

Late last month, foreign officials in army regalia toasted their hosts in Naypyidaw, the bunkered capital built by Myanmar’s military. Ice clinked in frosted glasses. A lavish spread had been laid out for the foreign dignitaries in honor of Myanmar’s Armed Forces Day.

That very day, the military, which had seized power on Feb. 1, gunned down more than 100 of its own citizens. Far from publicly condemning the brutality, the military representatives from neighboring countries — India, China, Thailand and Vietnam among them — posed grinning with the generals, legitimizing their putsch.

The coup in Myanmar feels like a relic of a Southeast Asian past, when men in uniform roamed a vast dictators’ playground. But it also brings home how a region once celebrated for its transformative “people power” revolutions — against Suharto of Indonesia and Ferdinand Marcos of the Philippines — has been sliding back into autocracy.

From Cambodia and the Philippines to Malaysia and Thailand, democracy is languishing. Electoral politics and civil liberties have eroded. Obedient judiciaries have hobbled opposition forces. Entire political classes are in exile or in prison. Independent media are being silenced by leaders who want only one voice heard: their own.

alliance of democracies.” With China and Russia involved, the United Nations Security Council has done nothing to punish Myanmar’s generals.

Covid-19 with them.

A scheduled special meeting on Myanmar by the Association of Southeast Asian Nations offers little hope of action. That consensus-driven group avoids delving into members’ internal affairs. Earlier negotiations among regional foreign ministers didn’t result in a single policy that would deter Myanmar’s coup-makers.

Besides, many of the region’s leaders have no wish to uphold democratic ideals. They have used the courts to silence their critics and met protest movements with force.

But if authoritarians are looking out for one another, so, too, are protesters. In Thailand, students have stood up to a government born of a coup, using a three-fingered salute from the “Hunger Games” films to express defiance. The same gesture was adopted after the putsch in Myanmar, the leitmotif of a protest movement millions strong.

its first commoner president, and Malaysia would shunt aside a governing party bloated by decades of graft and patronage. Thailand’s generals had managed to go years without a coup. Even in Vietnam, the Communist leadership was pushing forward with liberalization.

The most significant transformation seemed to be in Myanmar. The military had led the country since a 1962 coup, driving it into penury. In 2015, the generals struck a power-sharing agreement with a civilian leadership fronted by Daw Aung San Suu Kyi, the Nobel laureate who spent 15 years under house arrest. President Barack Obama went to Myanmar to sanctify the start of a peaceful political transition.

Now Ms. Aung San Suu Kyi is again locked in her villa, facing possible life imprisonment. Her supporters have been arrested and tormented. Soldiers picked up one of Ms. Aung San Suu Kyi’s followers and burned a tattoo of her face off his arm.

Much of the rest of Southeast Asia is in full-fledged democratic retreat. The leader of Thailand’s last coup, Prayuth Chan-ocha, is still the prime minister. His government has charged dozens of student protesters, some in their teens, with obscure crimes that can carry long sentences. Thai dissidents in exile have turned up dead.

After a brief interlude out of government, Malaysia’s old establishment is back in power, including people associated with one of the largest heists of state funds the world has seen in a generation. Vietnam’s crackdown on dissent is in high gear. In Cambodia, Hun Sen, Asia’s longest-ruling leader, has dismantled all opposition and set in place the makings of a family political dynasty.

President Rodrigo Duterte of the Philippines may enjoy enduring popularity, but he has presided over thousands of extrajudicial killings. He has also cozied up to China, presenting it as a more constant friend than the United States, which once colonized the Philippines.

Protesters in Thailand, who gathered by the hundreds of thousands last year, have resumed their rallies, even though most of their young leaders are now in prison.

As the riot police fired rubber bullets near the Grand Palace in Bangkok last month, Thip Tarranitikul said she wanted to erase the military from politics.

army chief, appears to have underestimated the people’s commitment to democratic change. Millions have marched against him. Millions have also joined nationwide strikes meant to stop his government from functioning.

There is little reason to believe the military will back down, given its decades in power. Over the past two months, it has killed more than 700 civilians, according to a monitoring group. Thousands have been arrested, including medics, reporters, a model, a comedian and a beauty blogger.

But the resistance has demographics on its side.

Southeast Asia may be ruled by old men, but more than half its population is under 30. Myanmar’s reforms over the past decade benefited young people who eagerly connected to the world. In Thailand, this same cohort is confronting the old hierarchies of military and monarchy.

Regional defenders of democracy, including the besieged dissidents of nearby Hong Kong, have formed what they call the Milk Tea Alliance online, referring to a shared affinity for the sweet brew. (Twitter recently gave the movement its own emoji.) On encrypted apps, they trade tips for protecting themselves from tear gas and bullets. They have also bonded over the disproportionate impact the pandemic has had on young workers, in countries where income inequality is growing wider.

“The youth of Southeast Asia, these young digital natives, they inherently despise authoritarianism because it doesn’t jibe with their democratic lifestyle. They aren’t going to give up fighting back,” said Mr. Thitinan of Chulalongkorn University. “That’s why, as bad as things may seem now, authoritarianism in the region is not a permanent condition.”

In Yangon, the largest city in Myanmar, protesters have faced the military’s rifles with a sense of an existential mission.

“I’m not afraid to die,” said Ko Nay Myo Htet, a high school student manning one of the barricades built to defend neighborhoods. “I want a better life for the future generation.”

Muktita Suhartono contributed reporting.

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Biden’s Corporate Tax Proposal Could Raise Trillions

The Biden administration has unveiled its corporate tax overhaul, intended to raise $2.5 trillion over 15 years to pay for an infrastructure program. “Debate is welcome. Compromise is inevitable. Changes are certain,” President Biden said, but he stressed that “inaction is not an option.”

“America’s corporate tax system has long been broken,” the Treasury secretary Janet Yellen wrote in a Wall Street Journal op-ed coinciding with the plan’s release. In addition to raising the headline corporate tax rate, the administration’s proposal takes aim at companies that shift profits abroad, especially to low-tax havens like Bermuda or Ireland. Some of the changes could be enacted by regulation, but things like raising the corporate tax rate will need the approval of Congress.

What’s in the plan? Here are the main provisions:

  • Raise the corporate tax rate to 28 percent. The increase from 21 percent would put the U.S. more in line with other big countries and, the administration says, lift corporate tax receipts that have fallen to their lowest levels as a share of the economy since World War II.

global minimum tax rate by midyear, but previous efforts have faltered when it came to nailing down the details.

  • Punish companies that headquarter in low-tax countries. A provision in the plan would target “inversions,” where American companies merge with a foreign entity in order to move headquarters to a low-tax country.

  • Replace fossil-fuel tax subsidies with clean-energy incentives. Previous attempts to eliminate subsidies on oil and gas met with stiff industry and congressional opposition.

  • Beef up the I.R.S. The agency’s enforcement budget has fallen by 25 percent over the past decade, and the proposal would bolster the budget for experts in complex corporate litigation.

What effect would it have? A Wharton School budget model concluded that the corporate tax rate increase would “not meaningfully affect the normal return on investment,” but when combined with the proposed minimum tax on book income, business investment would fall somewhat. All told, by 2050 the tax provisions would reduce government debt by more than 11 percent from the current baseline, but also reduce G.D.P. by 0.5 percent over that period.

“I’m actually OK at 28 percent.”

For more on this, see our sister newsletter, The Morning: “Corporate Taxes Are Wealth Taxes

The counting of votes in the Amazon union drive begins soon. The union seeking to represent workers at a warehouse in Alabama said that 3,215 ballots were cast, representing 55 percent of eligible workers. The hand count of the ballots will begin either later today or tomorrow.

Britain curbs the use of AstraZeneca’s vaccine for people under 30. The decision came as regulators increasingly suspect a link between the shot and rare blood clots. While Britain has enough vaccines from other makers to avoid a slowdown in its inoculation efforts, the concerns may dent vaccination efforts in developing countries.

Senator Mitch McConnell walks back his comments on companies and politics, sort of. The minority leader conceded that his criticism of companies for speaking out against voting restrictions was not spoken “artfully.” (Democrats noted that Republicans have benefited from corporate donations.) “They are certainly entitled to be involved in politics,” Mr. McConnell said.

Tencent’s biggest shareholder sells a slice of its holdings for $14.7 billion. Prosus, the Europe-based tech investor, sold 2 percent of its stake in the Chinese tech giant in the biggest-ever block trade (breaking its own record). Prosus still owns a 29 percent stake in the company.

hadn’t told top executives or his board of the arrangement. He is accused of having the gun-rights group file for Chapter 11 to stymie an investigation by New York State’s attorney general.

Many parts of the economy have held up during the pandemic — but corporate real estate isn’t one of them. Landlords and cities are worried that remote working will irreversibly sap demand for office space, The Times’s Peter Eavis and Matthew Haag report.

The numbers are grim for landlords. The national office vacancy rate in city centers has hit 16.4 percent, according to Cushman & Wakefield, a decade-long high. In Manhattan alone, over 17 percent of all office space is available, the most in over 30 years. And rents on existing space could also face pressure from new buildings coming online, representing 124 million square feet.

Some are staying hopeful. Landlords like Boston Properties and SL Green haven’t suffered big financial losses from the pandemic, thanks to many tenants being locked into long leases. They’re also betting many companies want their workers to meet in person to better collaborate and train younger employees.

The final damage won’t be known for some time. Companies are still trying to figure out their real estate needs, based on their work policies: While Amazon expects a return to an “office-centric culture,” JPMorgan Chase’s Jamie Dimon said that the bank may need only 60 seats for every 100 employees after the pandemic.


— Peter Thiel, the tech investor, on how cryptocurrency threatens the U.S. dollar. “China wants to do things to weaken it, so China’s long Bitcoin,” he added.

Florida and Texas banned them. Airlines, universities, event venues and other businesses are also testing various methods of vaccine verification. The starkly different approaches reflect a wider national and global debate on proof of health in the pandemic era.

“There are a lot of ways it could be done badly,” Jay Stanley of the American Civil Liberties Union told DealBook, but he suggested a “narrow path” to a certification system that could work. The ideal system would be paper-based with a digital supplement, Mr. Stanley argues, so that people who lack access to technology aren’t disadvantaged. Encrypted data would be stored on a decentralized network, protected with a public key for vaccine providers and private keys for users to ensure privacy. Fairness also demands a standardized approach, rather than the current variety of systems, which could result in “a mess for civil liberties, equity and privacy,” he said.

The Biden administration has said it won’t mandate vaccine passports, a point it reiterated this week, but it is working on standards the private sector can adopt. New York partnered with IBM on the state’s opt-in Excelsior Pass, which allows access to restricted activities and venues.

The certificates can raise a slew of social and legal issues, depending on who is asking for proof of vaccination and why, according to the Stanford law professor David Studdert. Government mandates trigger more concerns than opt-in programs, he noted, and companies will have different considerations if they seek certification from customers or workers. Given all the variations, he said, “within reason” the market should decide what works, and officials should avoid both mandates and bans: “Different communities and employers have a different tolerance for risk.”

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