Billionaires have had a pretty good pandemic. There are more of them than there were a year ago, even as the crisis has exacerbated inequality. But scrutiny has followed these ballooning fortunes. Policymakers are debating new taxes on corporations and wealthy individuals. Even their philanthropy has come under increasing criticism as an exercise of power as much as generosity.
One arena in which the billionaires can still win plaudits as civic-minded saviors is buying the metropolitan daily newspaper.
The local business leader might not have seemed like such a salvation a quarter century ago, before Craigslist, Google and Facebook began divvying up newspapers’ fat ad revenues. Generally, the neighborhood billionaires are considered worth a careful look by the paper’s investigative unit. But a lot of papers don’t even have an investigative unit anymore, and the priority is survival.
This media landscape nudged newspaper ownership from the vanity column toward the philanthropy side of the ledger. Paying for a few more reporters and to fix the coffee machine can earn you acclaim for a lot less effort than, say, spending two decades building the Bill and Melinda Gates Foundation.
$680 million bid by Hansjörg Wyss, a little-known Swiss billionaire, and Stewart W. Bainum Jr., a Maryland hotel magnate, for Tribune Publishing and its roster of storied broadsheets and tabloids like The Chicago Tribune, The Daily News and The Baltimore Sun.
Should Mr. Wyss and Mr. Bainum succeed in snatching Tribune away from Alden Global Capital, whose bid for the company had already won the backing of Tribune’s board, the purchase will represent the latest example of a more than decade-long quest by some of America’s ultrawealthy to prop up a crumbling pillar of democracy.
If there was a signal year in this development, it came in 2013. That is when Amazon founder Jeff Bezos bought The Washington Post and the Red Sox’ owner, John Henry, bought The Boston Globe.
“I invested in The Globe because I believe deeply in the future of this great community, and The Globe should play a vital role in determining that future,” Mr. Henry wrote at the time.
led a revival of the paper to its former glory. And after a somewhat rockier start, experts said that Mr. Henry and his wife, Linda Pizzuti Henry, the chief executive officer of Boston Globe Media Partners, have gone a long way toward restoring that paper as well.
Norman Pearlstine, who served as executive editor for two years after Dr. Soon-Shiong’s purchase and still serves as a senior adviser. “I don’t think that’s open to debate or dispute.”
From Utah to Minnesota and from Long Island to the Berkshires, local grandees have decided that a newspaper is an essential part of the civic fabric. Their track records as owners are somewhat mixed, but mixed in this case is better than the alternative.
Researchers at the University of North Carolina at Chapel Hill released a report last year showing that in the previous 15 years, more than a quarter of American newspapers disappeared, leaving behind what they called “news deserts.” The 2020 report was an update of a similar one from 2018, but just in those two years another 300 newspapers died, taking 6,000 journalism jobs with them.
“I don’t think anybody in the news business even has rose colored glasses anymore,” said Tom Rosenstiel, executive director of the American Press Institute, a nonprofit journalism advocacy group. “They took them off a few years ago, and they don’t know where they are.”
“The advantage of a local owner who cares about the community is that they in theory can give you runway and also say, ‘Operate at break-even on a cash-flow basis and you’re good,’” said Mr. Rosenstiel.
won a prestigious Polk Award for its coverage of the killing of George Floyd and the aftermath.
“The communities that have papers owned by very wealthy people in general have fared much better because they stayed the course with large newsrooms,” said Ken Doctor, on hiatus as a media industry analyst to work as C.E.O. and founder of Lookout Local, which is trying to revive the local news business in smaller markets, starting in Santa Cruz, Calif. Hedge funds, by contrast, have expected as much as 20 percent of revenue a year from their properties, which can often be achieved only by stripping papers of reporters and editors for short-term gain.
Alden has made deep cuts at many of its MediaNews Group publications, including The Denver Post and The San Jose Mercury News. Alden argues that it is rescuing papers that might otherwise have gone out of business in the past two decades.
And a billionaire buyer is far from a panacea for the industry’s ills. “It’s not just, go find yourself a rich guy. It’s the right rich person. There are lots of people with lots of money. A lot of them shouldn’t run newspaper companies,” said Ann Marie Lipinski, curator of the Nieman Foundation for Journalism at Harvard and the former editor of The Chicago Tribune. “Sam Zell is Exhibit A. So be careful who you ask.”
beaten a retreat from the industry. And there have even been reports that Dr. Soon-Shiong has explored a sale of The Los Angeles Times (which he has denied).
“The great fear of every billionaire is that by owning a newspaper they will become a millionaire,” said Mr. Rosenstiel.
Elizabeth Green, co-founder and chief executive at Chalkbeat, a nonprofit education news organization with 30 reporters in eight cities around the country, said that rescuing a dozen metro dailies that are “obviously shells of their former selves” was never going to be enough to turn around the local news business.
“Even these attempts are still preserving institutions that were always flawed and not leaning into the new information economy and how we all consume and learn and pay for things,” said Ms. Green, who also co-founded the American Journalism Project, which is working to create a network of nonprofit outlets.
Ms. Green is not alone in her belief that the future of American journalism lies in new forms of journalism, often as nonprofits. The American Journalism Project received funding from the Houston philanthropists Laura and John Arnold, the Craigslist founder Craig Newmark and Laurene Powell Jobs’s Emerson Collective, which also bought The Atlantic. Herbert and Marion Sandler, who built one of the country’s largest savings and loans, gave money to start ProPublica.
“We’re seeing a lot of growth of relatively small nonprofits that are now part of what I would call the philanthropic journalistic complex,” said Mr. Doctor. “The question really isn’t corporate structure, nonprofit or profit, the question is money and time.”
operating as a nonprofit.
After the cable television entrepreneur H.F. (Gerry) Lenfest bought The Philadelphia Inquirer, he set up a hybrid structure. The paper is run as a for-profit, public benefit corporation, but it belongs to a nonprofit called the Lenfest Institute. The complex structure is meant to maintain editorial independence and maximum flexibility to run as a business while also encouraging philanthropic support.
Of the $7 million that Lenfest gave to supplement The Inquirer’s revenue from subscribers and advertisers in 2020, only $2 million of it came from the institute, while the remaining $5 million came from a broad array of national, local, institutional and independent donors, said Jim Friedlich, executive director and chief executive of Lenfest.
“I think philosophically, we’ve long accepted that we have no museums or opera houses without philanthropic support,” said Ms. Lipinski. “I think journalism deserves the same consideration.”
Mr. Bainum has said he plans to establish a nonprofit group that would buy The Sun and two other Tribune-owned Maryland newspapers if he and Mr. Wyss succeed in their bid.
“These buyers range across the political spectrum, and on the surface have little in common except their wealth,” said Mr. Friedlich. “Each seems to feel that American democracy is sailing through choppy waters, and they’ve decided to buy a newspaper instead of a yacht.”
China on Saturday said it was imposing a record $2.8 billion fine on the e-commerce titan Alibaba for monopolistic business practices, the government’s toughest action to date in its campaign to regulate the country’s internet giants more closely.
Beijing’s market watchdog began investigating Alibaba in December for potential antitrust violations including preventing merchants from selling their goods on other shopping platforms. On Saturday, the regulator said its investigation had concluded that Alibaba had hindered competition in online retail in China, affected innovation in the internet economy and harmed consumers’ interests.
The fine on Alibaba, one of China’s most valuable private companies, exceeds the $975 million antitrust penalty that the Chinese government imposed on Qualcomm, the American chip giant, in 2015. Even so, it is unlikely to leave a substantial dent on Alibaba’s fortunes. The regulator said the fine represented 4 percent of Alibaba’s domestic sales in 2019. The group reported profits of more than $12 billion in the last three months of 2020 alone.
Alibaba said in a statement that it would accept the penalty “sincerely” and would strengthen its internal systems “to better carry out its social responsibilities.”
proposed updating the country’s antimonopoly law with a new provision for large internet platforms such as Alibaba’s. In November, officials halted the plans of Alibaba’s sister company, the finance-focused Ant Group, to go public and tightened oversight of internet finance.
In December, it opened the antimonopoly investigation into Alibaba — a startling turn in the fortunes of Jack Ma, Alibaba’s co-founder, whom people in China had long held up as an icon of entrepreneurial pluck.
Skepticism about the clout of large internet companies has been on the rise in the United States and Europe, too. Western regulators have repeatedly fined Goliaths such as Google in recent years for various antitrust violations. But such penalties generally have not changed the nature of the companies’ businesses enough to mitigate concerns about their power.
Ethel Gabriel, who in more than 40 years at RCA Victor is thought to have produced thousands of records, many at a time when almost no women were doing that work at major labels, died on March 23 in Rochester, N.Y. She was 99.
Her nephew, Ed Mauro, her closest living relative, confirmed her death.
Ms. Gabriel began working at RCA’s plant in Camden, N.J., in 1940 while a student at Temple University in Philadelphia. One of her early jobs was as a record tester — she would pull one in every 500 records and listen to it for manufacturing imperfections.
“If it was a hit,” she told The Pocono Record of Pennsylvania in 2007, “I got to know every note because I had to play it over and over and over.”
She also had a music background — she played trombone and had her own dance band in the 1930s and early ’40s — and her skill set earned her more and more responsibility, as well as the occasional role in shaping music history. She said she was on hand at the 1955 meeting in which the RCA executive Stephen Sholes signed Elvis Presley, who had been with Sun Records. She had a hand in “Cherry Pink and Apple Blossom White,” the 1955 instrumental hit by Pérez Prado that helped ignite a mambo craze in the United States.
Caroline Losneck and Christoph Gelfand, documentary filmmakers, were at work on “Living Sound,” a film about her.
Ms. Losneck, in a phone interview, said they had been hoping to complete the documentary by Ms. Gabriel’s 100th birthday this November.
Ms. Losneck said Ms. Gabriel had survived in a tough business through productivity and competence.
“She knew who to call when she needed an organist,” she said. “She knew how to manage the budget. All that gave her a measure of control.”
Many of the records Ms. Gabriel made fit into a category often marginalized as elevator music.
“It’s easy to look back on that music now and say it was kind of cheesy,” Ms. Losneck said, “but back then it was part of the cultural landscape.”
Toward the end of her career, as more women began entering the field, Ms. Gabriel was both an example and a mentor. Nancy Jeffries, who went to work in RCA’s artists-and-repertoire department in 1974 and had earlier sung with the band the Insect Trust, was one of those who learned from her.
who persuaded her to turn over to him her retirement package — more than $250,000 — so that he could invest it in the hope that the proceeds would finance future music ventures. The money disappeared, and Mr. Anderson, who died in 1989, was later convicted of tax evasion.
Ms. Gabriel lived in the Poconos for a number of years before moving to a care center in Rochester to be near Mr. Mauro and his family. As she died at a hospital there, Mr. Mauro said, the staff had Sinatra songs playing in her room.
Lee Delaney, the president and chief executive of BJ’s Wholesale Club, died unexpectedly on Thursday of “presumed natural causes,” according to a statement released Friday by the company. He was 49.
“We are shocked and profoundly saddened by the passing of Lee Delaney,” said Christopher J. Baldwin, the company’s executive chairman, said in a statement. “Lee was a brilliant and humble leader who cared deeply for his colleagues, his family and his community.”
Mr. Delaney joined BJ’s in 2016 as executive vice president and chief growth officer. He was promoted to president in 2019 and became chief executive last year. Before joining BJ’s, he was a partner in the Boston office of Bain & Company from 1996 to 2016. Mr. Delaney earned a master’s in business administration from Carnegie Mellon University, and attended the University of Massachusetts, where he pursued a double major in computer science and mathematics.
Mr. Delaney led the company through the unexpected changes in consumer demand spurred by the pandemic, with many customers stockpiling wholesale goods as they hunkered down at home. “2020 was a remarkable, transformative and challenging year that structurally changed our business for the better,” Mr. Delaney said in the company’s last quarterly earnings report.
The BJ’s board appointed Bob Eddy, the chief administrative and financial officer, to serve as the company’s interim chief executive. Mr. Eddy joined the company in 2007 and became the chief financial officer in 2011, adding the job of chief administrative officer in 2018.
“Bob partnered closely with Lee and has played an integral role in transforming and growing BJ’s Wholesale Club,” Mr. Baldwin said. He said that the company would announce decisions about its permanent executive leadership in a “reasonably short timeframe.”
BJ’s, based in Westborough, Mass., operates 221 clubs and 151 BJ’s Gas locations in 17 states.
There is a moment in the first season of “The Crown” when the actor Matt Smith, as the perennially tetchy consort of Queen Elizabeth II, bristles at the constraints of his job. With a case of lockjaw severe enough to cause concern for his molars, Mr. Smith portrays the Duke of Edinburgh (whom the queen would not make a prince until five years after she succeeded to the throne) as an arch complainer, a man who views the 20th-century monarchy as little more than “a coat of paint” on a crumbling Empire.
Prince Philip, who died at age 99 on April 9, may have been wrapped in a cloak of dramatic hooey to become a character in the hit Netflix series. Yet the role, as written, is rooted in established fact.
Headstrong by reputation, opinionated, notoriously brusque (and often, in public, misogynistic and racist), Prince Philip was also in important ways the model of a company man. By the time he stepped down from his official royal duties in August 2017, he had spent seven decades obediently working for the Firm, a term for the royal family credited to the Queen’s father, King George VI. Fulfilling the requirements of a job for which there is no precise standard, unless you consider second fiddle a job description, the prince slogged through a staggering 22,219 solo public engagements over his long lifetime. In doing so, he navigated the most challenging of corporate dress codes for more than 65 years.
The brief was clear from the outset: The queen’s consort should be impeccable yet unassuming, irreproachable in style without drawing your eye away from the one of the richest, and certainly the most famous, woman on earth. If the clothes Queen Elizabeth II wore in public were engineered to meet programmatic requirements — bright colors and lofty hats to make this diminutive human easy to spot; symbolically freighted jewelry (the Japanese pearl choker, the Burmese ruby tiara, the Obama brooch!); symbols and metaphors embroidered onto her gowns — those of Prince Philip were tailored to keep him faultlessly inconspicuous.
As a clotheshorse, he had certain natural advantages, of course.
“He was staggeringly good-looking, tall and athletic,” said Nick Sullivan, the creative director of Esquire. “That never does any harm when it comes to wearing clothes.”
Beyond that, though, were a series of confident and knowing choices. For decades, the prince’s suits were made for him by John N. Kent, a Savile Row artisan who began his tailoring apprenticeship at 15. The prince’s shirts came from Stephens Brothers, his bespoke shoes from the century-and-a-half old boot maker John Lobb. In the neatly folded white handkerchief Prince Philip habitually squared off in his breast pocket (another was kept in his trousers) could be seen a telling contrast with the dandyish puff of silk favored by his eldest son.
Unlike other members of the royal family whose tastes run to costly baubles and fine Swiss timepieces, Prince Philip habitually wore “a plain watch with a brown leather strap,” as the Independent once reported, and a copper bracelet intended to ease arthritis. He left his large hands free of jewelry and roughly manicured.
If he looked best in sporting clothes, it was because he was a true sportsman, captain of both the cricket and hockey teams at boarding school in Scotland, a polo player well past his 40s, an active participant in international coaching competitions until late in life.
He was also the only member of the Firm’s inner circle before Meghan Markle to have been foreign-born. This, too, may have given him a style advantage since it is often true that outsiders can bring a fresh eye to staid sartorial conventions, both enlivening and improving them. (It took the Japanese to explain denim to Americans and the Neapolitans to demonstrate for the English how to perfect English style.)
Search online and you will not find an image of Prince Philip committing a style solecism. There is never a novelty tie or a funny hat. For that matter, and except on obligatory state occasions, there is little enough of the comic operetta regalia beloved of Prince Philip’s uncle, Louis Mountbatten, the First Earl Mountbatten of Burma — no braiding, no frogging, no sashes or fringed and gilded epaulets.
The paradox of Prince Philip’s life may have been that, as the husband of a queen and father of a future king, he was essential to power although insignificant to its workings. And he often jokingly disparaged himself as the “world’s most experienced plaque unveiler.” Yet it was probably in that role that he did his best work for the family business, since a glimpse of this elegant and diffident man was the closest most Britons would ever come to royalty’s attenuated realities and burnished grandeur. In that sense, Prince Philip was never “dressed,” in any conventional manner so much as he was outfitted for purpose.
Unofficial Tally of Amazon Warehouse Unionization Votes 1,608 yes votes are needed for the union to win today. The New York Times·As of 7:19 p.m. Hundreds of ballots have been contested, which could delay either side from reaching the threshold. One ballot was marked as void. The ballots were being counted in random order in the National Labor Relations Board’s office in Birmingham, Ala., and the process was broadcast via Zoom to more than 200 journalists, lawyers and other observers.The voting was conducted by mail from early February until the end of last month. A handful of workers from the labor board called out the results of each vote “Yes” for a union or “No” for nearly four hours on Thursday.Amazon and the union had spent more than a week in closed sessions, reviewing the eligibility of each ballot cast with the labor board, the federal agency that conducts union elections. The union said several hundred ballots had been contested, largely by Amazon, and those ballots were set aside to be adjudicated and counted only if they were vital to determining an outcome. If Amazon’s large margin holds steady throughout the count, the contested ballots are likely to be moot.The incomplete tally put Amazon on the cusp of defeating the most serious organized-labor threat in the company’s history. Running a prominent campaign since the fall, the Retail, Wholesale and Department Store Union aimed to establish the first union at an Amazon warehouse in the United States. The result will have major implications not only for Amazon but also for organized labor and its allies.
Labor organizers have tapped into dissatisfaction with working conditions in the warehouse, saying Amazon’s pursuit of efficiency and profits makes the conditions harsh for workers. The company counters that its starting wage of $15 an hour exceeds what other employers in the area pay, and it has urged workers to vote against unionizing.
Amazon has always fought against unionizing by its workers. But the vote in Alabama comes at a perilous moment for the company. Lawmakers and regulators — not competitors — are some of its greatest threats, and it has spent significant time and money trying to keep the government away from its business.
The union drive has had the retailer doing a political balancing act: staying on the good side of Washington’s Democratic leaders while squashing an organizing effort that President Biden has signaled he supported.
Labor leaders and liberal Democrats have seized on the union drive, saying it shows how Amazon is not as friendly to workers as the company says it is. Some of the company’s critics are also using its resistance to the union push to argue that Amazon should not be trusted on other issues, like climate change and the federal minimum wage.
Sophia June contributed to this report.
Before the pandemic, companies used to lure top talent with lavish perks like subsidized massages, Pilates classes and free gourmet meals. Now, the hottest enticement is permission to work not just from home, but from anywhere — even, say, from the French Alps or a Caribbean island.
Revolut, a banking start-up based in London, said Thursday that it would allow its more than 2,000 employees to work abroad for up to two months a year in response to requests to visit overseas family for longer periods.
“Our employees asked for flexibility, and that’s what we’re giving them as part of our ongoing focus on employee experience and choice,” said Jim MacDougall, Revolut’s vice president of human resources.
Georgia Pacquette-Bramble, a communications manager for Revolut, said she was planning to trade the winter in London for Spain or somewhere in the Caribbean. Other colleagues have talked about spending time with family abroad.
Revolut has been valued at $5.5 billion, making it one of Europe’s most valuable financial technology firms. It joins a number of companies that will allow more flexible working arrangements to continue after the pandemic ends. JPMorgan Chase, Salesforce, Ford Motor and Target have said they are giving up office space as they expect workers to spend less time in the office, and Spotify has told employees they can work from anywhere.
Not all companies, however, are shifting away from the office. Tech companies, including Amazon, Facebook, Google and Apple, have added office space in New York over the last year. Amazon told employees it would “return to an office-centric culture as our baseline.”
Dr. Dan Wang, an associate professor at Columbia Business School, said he did not expect office-centric companies to lose top talent to companies that allow flexible working, in part because many employees prefer to work from the office.
Furthermore, when employees are not in the same space, there are fewer spontaneous interactions, and spontaneity is critical for developing ideas and collaborating, Dr. Wang said.
“There is a cost,” he said. “Yes, we can interact via email, via Slack, via Zoom — we’ve all gotten used to that. But part of it is that we’ve lowered our expectations for what social interaction actually entails.”
Revolut said it studied tax laws and regulations before introducing its policy, and that each request to work from abroad was subject to an internal review and approval process. But for some companies looking to put a similar policy in place, a hefty tax bill, or at least a complicated tax return, could be a drawback.
Online stores offering counterfeit or stolen vaccine cards have mushroomed in recent weeks, according to Saoud Khalifah, the founder of FakeSpot, which offers tools to detect fake listings and reviews online.
The efforts are far from hidden, with Facebook pages named “vax-cards” and eBay listings with “blank vaccine cards” openly hawking the items, Sheera Frenkel reports for The New York Times.
Last week, 45 state attorneys general banded together to call on Twitter, Shopify and eBay to stop the sale of false and stolen vaccine cards.
Facebook, Twitter, eBay, Shopify and Etsy said that the sale of fake vaccine cards violated their rules and that they were removing posts that advertised the items.
The Centers for Disease Control and Prevention introduced the vaccination cards in December, describing them as the “simplest” way to keep track of Covid-19 shots. By January, sales of false vaccine cards started picking up, Mr. Khalifah said. Many people found the cards were easy to forge from samples available online. Authentic cards were also stolen by pharmacists from their workplaces and put up for sale, he said.
Many people who bought the cards were opposed to the Covid-19 vaccines, Mr. Khalifah said. In some anti-vaccine groups on Facebook, people have publicly boasted about getting the cards.
Other buyers want to use the cards to trick pharmacists into giving them a vaccine, Mr. Khalifah said. Because some of the vaccines are two-shot regimens, people can enter a false date for a first inoculation on the card, which makes it appear as if they need a second dose soon. Some pharmacies and state vaccination sites have prioritized people due for their second shots.
In only a year, the market value of office towers in Manhattan has plummeted 25 percent, according to city projections released on Wednesday.
Across the country, the vacancy rate for office buildings in city centers has steadily climbed over the past year to reach 16.4 percent, according to Cushman & Wakefield, the highest in about a decade. That number could climb further if companies keep giving up office space because of hybrid or fully remote work, Peter Eavis and Matthew Haag report for The New York Times.
So far, landlords like Boston Properties and SL Green have not suffered huge financial losses, having survived the past year by collecting rent from tenants locked into long leases — the average contract for office space runs about seven years.
But as leases come up for renewal, property owners could be left with scores of empty floors. At the same time, many new office buildings are under construction — 124 million square feet nationwide, or enough for roughly 700,000 workers. Those changes could drive down rents, which were touching new highs before the pandemic. And rents help determine assessments that are the basis for property tax bills.
Many big employers have already given notice to the owners of some prestigious buildings that they are leaving when their leases end. JPMorgan Chase, Ford Motor, Salesforce, Target and more are giving up expensive office space and others are considering doing so.
The stock prices of the big landlords, which are often structured as real estate investment trusts that pass almost all of their profit to investors, trade well below their previous highs. Shares of Boston Properties, one of the largest office landlords, are down 29 percent from the prepandemic high. SL Green, a major New York landlord, is 26 percent lower.
U.S. stock futures rose on Friday along with government bond yields after the Federal Reserve chair, Jerome Powell, reiterated his intention to keep supporting the economic recovery until it is complete.
The rollout of vaccinations meant the United States economy could probably reopen soon, but the recovery was still “uneven and incomplete,” Mr. Powell said at the International Monetary Fund annual conference on Thursday.
He pointed out that the economic burden of the pandemic was falling most heavily on low-income service workers who were least able to bear it. “I really want to finish the job and get back to a great economy,” Mr. Powell said.
The yield on 10-year Treasury notes jumped 5 basis points, or 0.05 percentage point, to 1.67 percent. The yield on 10-year government bonds rose across Europe, too.
Stocks, low volatility and oil prices
The S&P 500 index was set to open 0.1 percent higher and has risen 0.4 percent so far this week.
The relatively quiet week in the stock market has sent the VIX index, a measure of volatility, to its lowest level since February 2020. The index was at 17 points on Friday. In mid-March, as the pandemic shut down huge parts of the global economy, it spiked above 80.
European stock indexes were mixed on Friday, though the Stoxx Europe 600 was heading for its sixth straight week of gains. The DAX index in Germany rose 0.1 percent after data showed an unexpected drop in industrial production.
Oil prices rose slightly with futures of West Texas Intermediate, the U.S. crude benchmark, 0.2 percent higher to $59.70 a barrel.
The sharp rise in bond yields is forcing traders to consider that they may be holding two irreconcilable ideas in their heads.
One is that the Federal Reserve has no real control over bond market interest rates. The other is that the Fed can keep the stock market aloft as long as it tries to control interest rates.
The resilience of share prices — the S&P 500 rose 5.8 percent in the first quarter — suggests that those two ideas can coexist. But if yields continue to rise, the impact on companies, consumers and homeowners and the appeal that fatter bond yields may have to investors could produce a reckoning for stocks.
“The bond market is at an inflection point that eventually is going to be recognized by the stock market,” said Komal Sri-Kumar, president of Sri-Kumar Global Strategies. “Over the last 30 years, the bond market has only gone one way, but a change is occurring now, and it’s likely to be an abrupt one.”
CRB index, which measures a basket of commodities, rose 52 percent in the 12 months through March. Home prices rose 6 percent last year, according to the Federal Reserve Bank of St. Louis.
$1.9 trillion bill last month to help the economy after the ravages wrought by the pandemic, President Biden proposed spending $2 trillion more on infrastructure projects, albeit over several years.
That $4 trillion, give or take, would be “going into an economy saturated with $6 trillion of stimulus spending from the Trump administration,” Mr. Sri-Kumar said. So much spending is likely to push up inflation and bond yields, he said.
Michael Hartnett, chief investment strategist at Bank of America Global Research, does not expect such concerns to diminish soon.
Because of such factors as “new central bank mandates, excess fiscal stimulus,” as well as “less globalization, fading deflation from disruption, demographics, debt, we believe inflation rises in the 2020s and the 40-year bull market in bonds is over,” Mr. Hartnett said in a report.
Commodities and other hard assets should outperform in the long term, in his view, along with shares of smaller companies, value stocks and foreign stocks. The dollar, shares of big companies and bonds should do worse.
David Giroux, a portfolio manager and head of investment strategy at T. Rowe Price, said he is worried that the bill will come due for much of the government spending.
“There’s a high likelihood we will have higher corporate taxes next year,” Mr. Giroux said. “That will be a headwind for corporate earnings.”
That persuades him to avoid shares of economically sensitive companies for which “a lot of really good news is already priced in.”
He prefers “stocks with really good business models that have been left behind,” including technology giants that are off their highs, such as Amazon and Google, and companies like utilities. Other favorites include regional banks such as PNC and Huntington Bancshares.
Ms. Bitel at William Blair foresees long-term higher returns by big growth stocks. But she throws in an immense caveat: Because rising interest rates tend to force down valuations, especially on the most expensive segments of the market, there could be a sharp decline before the erstwhile Wall Street darlings excel again.
“Retail investors will be able to buy their favorite growth stocks at a 40 percent discount, but that leadership will resume,” she said, emphasizing that the 40 percent was a ballpark figure.
Ms. Bitel also suggested holding foreign stocks, in particular shares of Chinese health care companies and Japanese software companies.
Mr. Paolini recommends banks, energy and real estate, and said he is avoiding carmakers, industrial companies and home builders.
Considering the investment landscape more broadly, he said, “The outlook for the next one to three years is quite good.” Then he seemed to try to talk himself out of that belief.
“The idea that you can simply print money and everything is fine isn’t sustainable,” Mr. Paolini said. “At some point, we will realize too much has been done and the market is too high, and the situation will change quite fast. I don’t know what that level is or how far away we are from it.”
Not long after Kim Kardashian West launched her shapewear brand Skims in 2019, pandemic lockdowns consigned its body-fitting product line to the back of consumers’ closets.
But Skims survived. Moreover, it has become a billion-dollar business.
The company has raised $154 million in new funding, which Ms. Kardashian West said had lifted its valuation to $1.6 billion. It is a heady amount for a not-quite two-year-old clothing brand, even one led by someone with her star power.
It also cements Ms. Kardashian West’s status as a billionaire in her own right. In announcing her entry into that club this week, Forbes estimated Skims’ value at much less than that. She will remain Skims’ biggest shareholder after the deal, and she and her business partner, Jens Grede, will control a majority stake.
her cosmetics line to the makeup giant Coty, valuing it at $1 billion. Her sister Kylie Jenner sold a majority stake in her own cosmetics line, also to Coty, in a deal that valued it at $1.2 billion.
Skims also isn’t Ms. Kardashian West’s first foray into clothing. She and her sisters Khloé and Kourtney had a line with Sears that essentially served as a licensing deal over which she had little control.
now-estranged husband, was “super involved” in the beginning, giving frank criticism of early designs for Skims packaging, she said.)
the shapewear business, which has for decades been dominated primarily by one company, Spanx. Before 2020, when sales of shapewear dropped 30 percent, the category consistently generated just over $500 million in sales a year, or 3 percent of total apparel sales, according to NPD. Like other shapewear start-ups, Skims was aiming for the younger end of the market.
Skims defined itself with an emphasis on inclusivity, offering nine sizes, up to 5X, in as many skin-tone shades. Within its first nine weeks, it had racked up two million names on its wait lists, Mr. Grede said. To date, Skims has sold more than four million units, with a customer retention rate of over 30 percent. Skims products are also sold at the high-end department stores Nordstrom and Britain’s Selfridges and several online retailers.
Today in Business
Skims faced challenges even before the pandemic. One was of Ms. Kardashian West’s own making: The company was initially called Kimono, until accusations of cultural appropriation prompted her to change the moniker. (“Even when it seemed innocent to me,” she said, “people didn’t see it that way.”)
Then, in addition to declining shapewear sales during the pandemic, the company suffered delays in sourcing raw material for its fabrics, which hampered its ability to develop, produce and ultimately sell new products.
“We had to figure out different factories and had to get creative,” Ms. Kardashian West said. Even so, Skims reported $145 million in sales last year, and expects to roughly double sales to $300 million this year.
Joshua Kushner, and his wife, the model Karlie Kloss.)
The round also includes funding from two existing investors, Imaginary Ventures and Alliance Consumer Growth.
“We have been continuously impressed by Skims’ ability to connect with consumers on a personal level and keep them coming back for more,” Nabil Mallick, a partner at Thrive, said in a statement.
were dresses, suggest that shoppers may be planning to resume dressing more formally.
Kristen Classi-Zummo, an analyst at NPD, offered a more cautious take, reckoning that the category would rebound, though customers who have grown used to comfort will insist on easy-fitting apparel even as they re-embrace some aspects of shapewear.
“I do think we’ll get dressed up again,” Ms. Classi-Zummo said, “but I do think it will look and feel different.”
Ms. Kardashian West said she hoped to build Skims into a “multigenerational brand that will be around for a very long time.”
But she did not rule out eventually selling the business — so long as she retained a role in its operations. “I think I’m open to the conversation, for sure,” she said. But “I would never want to give up my process. I would hope that whoever we partner with in a sale one day would believe in that, too.”
U.S.-China tensions, human rights and business are once again meeting uncomfortably on the basketball court.
In China, local brands are prospering from a consumer backlash against Nike, H&M and other foreign brands over their refusal to use Chinese cotton made by forced labor. Chinese brands have publicly embraced the cotton from the Xinjiang region, leading to big sales to patriotic shoppers and praise from the Beijing-controlled media.
In the United States, two of those same Chinese brands, Li-Ning and Anta, adorn the feet of N.B.A. players — and those players are being rewarded handsomely for it. Two players reached endorsement deals with Anta in February. Another signed on this week. Klay Thompson of the Golden State Warriors already had a shoe deal with Anta that has been widely reported to be valued at up to $80 million.
Dwyane Wade, the three-time N.B.A. champion and retired Miami Heat player, has a clothing line with Li-Ning that is so successful he has recruited young players for the brand.
online, however.) Still, their full-throated support of Xinjiang could have reputational consequences for the American athletes.
once said he wanted to be the Michael Jordan of Anta. His teammate James Wiseman, as well as Alex Caruso of the Los Angeles Lakers, signed with Anta earlier this year, according to the sportswear brand’s social media account. Precious Achiuwa of the Heat announced this week that he was joining Anta.
Requests for comment from Mr. Thompson and other N.B.A. players also went unanswered.
Outside China, Xinjiang has become synonymous with repression. Reports suggest as many as one million Uyghurs and other largely Muslim ethnic minorities have been held in detention camps. In March, Secretary of State Antony J. Blinken accused China of continuing to “commit genocide and crimes against humanity” in the far northwestern region.
voiced his support for the Hong Kong protests on Twitter in 2019, Li-Ning and Shanghai Pudong Development Bank Credit Card Center paused their partnerships with the team. The Chinese Basketball Association, whose president is the former Rockets player Yao Ming, also suspended its cooperation with the Rockets.
quickly denied. But the incident left a scar on the N.B.A.’s reputation for supporting free speech and severely limited its access to the Chinese market.
China Central Television, the state-run television network, stopped broadcasting N.B.A. games after Mr. Morey’s message on Twitter. Late last year, it briefly resumed coverage for Games 5 and 6 of the N.B.A. finals. A week later, Mr. Morey stepped down as general manager.
In a radio interview this week, Mr. Silver said that CCTV had stopped airing N.B.A. games again, but that fans could stream them through Tencent, the Chinese internet conglomerate. He said that the N.B.A.’s partnership with China was “complicated,” but that “doesn’t mean we don’t speak up about what we see are, you know, things in China that are inconsistent with our values.”
A spokesman for the league declined to comment for this article.
Money and a large China fan base are at stake for players like Mr. Thompson and the dozens of other American athletes who have been heavily promoted by Anta and Li-Ning. Mr. Thompson has had a partnership with Anta since 2014 that has given him a popular shoe line and sponsored tours in China.
More recent deals between the companies and N.B.A. players could face questions in coming weeks as tensions between the United States and China escalate. Jimmy Butler, a five-time all-star who plays for the Heat, and the Toronto Raptors guard Fred VanVleet signed on with Li-Ning in November. Mr. Wade, the retired Heat player, helped CJ McCollum and D’Angelo Russell, two star guards, secure deals with Li-Ning through his sportswear line.
“My decision 7 years ago to sign with Li-Ning was to show the next generation that it’s not just one way of doing things,” Mr. Wade wrote on Twitter when he announced Mr. Russell’s contract in November 2019. “I had a chance to build a Global platform that gives future athletes a canvas to create and be expressive.”
Sopan Deb contributed reporting from New York, and Cao Li from Hong Kong.
“I want to emphasize that,” he added. “Through no fault of their own.”
The pandemic has hit African-Americans and Latinos hardest on all fronts, with higher infection and death rates, more job losses, and more business closures.
Proposals that confront the wealth gap head on, though, are both expensive and politically charged.
Professor Darity of Duke, a co-author of “From Here to Equality: Reparations for Black Americans in the Twenty-First Century,” has argued that compensating the descendants of Black slaves — who helped build the nation’s wealth but were barred from sharing it — would be the most direct and effective way to reduce the racial wealth gap.
Vice President Harris and Senators Bernie Sanders of Vermont, Elizabeth Warren of Massachusetts and Cory Booker of New Jersey have tended to push for asset-building policies that have more popular support. They have offered programs to increase Black homeownership, reduce student debt, supplement retirement accounts and establish “baby bonds” with government contributions tied to family income.
With these accounts, recipients could build up money over time that could be used to cover college tuition, start a business or help in retirement.
Several states have experimented with small-scale programs meant to encourage children to go to college. Though those programs were not created to close the racial wealth gap, researchers have seen positive side effects. In Oklahoma, child development accounts seeded with $1,000 were created in 2007 for a group of newborns.
“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 the Oklahoma experiment. “Kids of color accumulate assets as fast as white kids.”
Without dedicated funds — the kind of programs that enabled white families to build assets — it won’t be possible for African-Americans to bridge the wealth gap, said Mehrsa Baradaran, a law professor at the University of California, Irvine, and the author of “The Color of Money: Black Banks and the Racial Wealth Gap.”