LONDON, May 17 (Reuters) – Top baby formula makers Reckitt Benckiser (RKT.L) and Nestle have ramped up supplies to the United States to resolve a shortage that has emptied shelves and caused panic among parents.
Baby formula aisles at U.S. supermarkets have been decimated since top U.S. manufacturer Abbott Laboratories (ABT.N) in February recalled formulas after complaints of bacterial infections.
Abbott said on Monday it had reached an agreement with the U.S. health regulator to resume production of baby formula at its Michigan plant, marking a major step towards resolving the nationwide shortage. read more
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In the meantime, other baby formula makers have stepped up production and shipped extra supplies to the United States.
Reckitt Benckiser is boosting baby formula production by about 30% and making more frequent deliveries to U.S. stores, an executive told Reuters on Tuesday. read more
The company, which makes its U.S. formula in three facilities in Michigan, Indiana and Minnesota, has granted plants “unlimited overtime” to put in extra shifts, Robert Cleveland, senior vice president, North America and Europe Nutrition at Reckitt, told Reuters in an interview.
Empty shelves show a shortage of baby formula at a CVS store in San Antonio, Texas, U.S. May 10, 2022. REUTERS/Kaylee Greenlee Beal/Files
Prior to the Abbott recall, Reckitt supplied just over a third of the U.S. infant formula market compared with Abbott’s roughly 44%. Britain-based Reckitt told Reuters it now accounts for more than 50% of total baby formula supply in the country.
“We normally might pack an entire truck before we ship it. For timeliness, we’re not doing that. We’re packing it with as much product as we have and then we’re just getting it out the door,” Cleveland said.
The United States will allow baby formula imports from foreign makers that do not usually sell their products there, the Food and Drug Administration said on Monday. read more
Nestle is flying baby formula supplies to the United States from the Netherlands and Switzerland, the company said in an emailed statement to Reuters on Tuesday. L2N2X90E1
The world’s largest packaged food group is moving Gerber baby food formula to the United States from the Netherlands and Alfamino baby formula there from Switzerland, it said.
“We prioritized these products because they serve a critical medical purpose as they are for babies with cow’s milk protein allergies,” the company said. “Both products were already being imported but we moved shipments up and rushed via air to help fill immediate needs.”
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Editing by Matt Scuffham and Mark Potter
Our Standards: The Thomson Reuters Trust Principles.
As the rest of the world learns to live with Covid-19, China’s top leader, Xi Jinping, wants his country to keep striving to live without it — no matter the cost.
China won a battle against its first outbreak in Wuhan, Mr. Xi said last week, and “we will certainly be able to win the battle to defend Shanghai,” he added, referring to the epicenter of the current outbreak in China.
summarized it as “zero movement, zero G.D.P.” Multinational companies have grown wary of further investments in the country.
For more than two years, China kept its Covid numbers enviably low by doggedly reacting to signs of an outbreak with testing and snap lockdowns. The success allowed the Communist Party to boast that it had prioritized life over death in the pandemic, unlike Western democracies where deaths from the virus soared.
More transmissible variants like Omicron threaten to dent that success, posing a dilemma for Mr. Xi and the Chinese Communist Party. Harsher lockdowns have been imposed to keep infections from spreading, stifling economic activity and threatening millions of jobs. Chinese citizens have grown restless, pushing back against being forced to stay home or to move into grim, government-run isolation facilities.
politically important year for Mr. Xi, China’s censors have moved quickly to muffle calls for a change in course on Covid-19. The head of the World Health Organization, whose recommendations China once held up as a model, was silenced this week when he called on the country to rethink its strategy.
Photographs and references to Tedros Adhanom Ghebreyesus, the director general of the W.H.O., were promptly scrubbed from the Chinese internet after the statement. The foreign ministry responded by calling Mr. Tedros’s remarks “irresponsible,” and accusing the W.H.O. of not having a “proper understanding of the facts.”
China’s state-controlled media has also glossed over the draconian measures officials have deployed to deal with outbreaks. This week, as some authorities in Shanghai erected new fences around quarantine zones, boarded up more homes and asked residents not to leave their apartments, state media painted a picture of a city slowly returning to normal.
One article described the “hustle and bustle of city life” returning, while another focused on statistics for how many stores had reopened.
has not happened. Several Chinese companies are in the testing phase of a homegrown mRNA option, and China also recently approved for emergency use a Covid-19 antiviral pill made by Pfizer called Paxlovid.
Administering three vaccine shots, using antiviral therapies and offering more effective vaccines could help China find a path out of zero Covid, Mr. Ajelli said.
disappointing winter wheat harvest in June could drive food prices — already high because of the war in Ukraine and bad weather in Asia and the United States — further up, compounding hunger in the world’s poorest countries.
A pause on wealth redistribution. For much of last year, China’s top leader, Xi Jinping, waged a fierce campaign to narrow social inequalities and usher in a new era of “common prosperity.” Now, as the economic outlook is increasingly clouded, the Communist Party is putting its campaign on the back burner.
By one estimate, nearly 400 million people in 45 cities have been under some form of lockdown in China in the past month, accounting for $7.2 trillion in annual gross domestic product. Economists are concerned that the lockdowns will have a major impact on growth; one economist has warned that if lockdown measures remain in place for another month, China could enter into a recession.
European and American multinational companies have said they are discussing ways to shift some of their operations out of China. Big companies that increasingly depend on China’s consumer market for growth are also sounding the alarm. Apple said it could see a $4 billion to $8 billion hit to its sales because of the lockdowns.
struggle to find and keep jobs during lockdowns.
Even as daily virus cases in Shanghai are steadily dropping, authorities have tightened measures in recent days following Mr. Xi’s call last week to double down. Officials also began to force entire residential buildings into government isolation if just one resident tested positive.
The new measures are harsher than those early on in the pandemic and have been met with pockets of unrest, previously rare in China where citizens have mostly supported the country’s pandemic policies.
In one video widely circulated online before it was taken down by censors, an exasperated woman shouts as officials in white hazmat suits smash her door down to take her away to an isolation facility. She protests and asks them to give her evidence that she has tested positive. Eventually she takes her phone to call the police.
“If you called the police,” one of the men replies, “I’d still be the one coming.”
Isabelle Qian contributed reporting, and Claire Fu contributed research.
ST. LOUIS–(BUSINESS WIRE)–McCarthy Holdings, Inc., one of the nation’s largest 100 percent employee-owned construction companies, recently promoted Kristine Newman to chief financial officer. Prior to assuming this role, Newman served as executive vice president for the company. She replaces retiring CFO Doug Audiffred, and reports directly to McCarthy Holdings, Inc. Chairman and Chief Executive Officer Ray Sedey.
Newman joined McCarthy in 2005 as controller for the builder’s Southwest Region and was promoted to vice president, finance in 2016 and senior vice president, finance in 2018. In 2019 she assumed the executive vice president, finance position and became a member of McCarthy’s enterprise leadership team. Now as chief financial officer, she will be responsible for all accounting, finance and insurance components of McCarthy including cash management, investments, internal audit financial reporting and risk management.
“Kris has been working closely with [outgoing CFO] Doug Audiffred for some time to ensure a thoughtful and smooth transition,” Ray Sedey said. “In addition to her outstanding financial acumen, strong work ethic and exceptional professionalism, Kris brings a deep understanding of McCarthy and our industry. She is an inspirational and trustworthy leader, and I speak for our entire leadership team and all our employee-owners when I express how pleased we are to welcome Kris into this role.”
Newman began her career with Arthur Andersen LLP, working on audit and consulting engagements in the firm’s Chicago and Phoenix offices, prior to joining McCarthy. She is a Certified Public Accountant (CPA). An Indiana native, Newman earned her bachelor’s degree in accounting from Purdue University.
In addition to her responsibilities with McCarthy, Newman was recognized as a “Most Influential Woman in Commercial Real Estate” (AZ Business Magazine, 2019) and serves on the national committee for the McCarthy Partnership for Women, the firm’s employee resource group dedicated to recruiting, developing and retaining women. She currently serves on the Greater Phoenix Chamber of Commerce board of directors, is past president and current member of the Valley of the Sun Chapter of the Construction Financial Management Association and is past chair of the board of directors for UMOM New Day Centers in Phoenix.
“It is an incredible honor to serve in this crucial role for our company,” Newman said. “I am grateful to be able to follow in the footsteps of Doug Audiffred, and his guidance through the transition period was extremely helpful and appreciated. I know without a doubt that this organization will continue to accomplish amazing things.”
About McCarthy Holdings, Inc.
McCarthy Holdings, Inc. is the oldest privately held national construction company in the country – with nearly 160 years spent collaborating with partners to solve complex building challenges on behalf of its clients. McCarthy Holdings, Inc. is comprised of McCarthy Building Companies, Inc. and Castle Contracting, Inc. Repeatedly honored as a Best Place to Work, McCarthy is ranked the 13th largest domestic builder (Engineering News-Record, May 2021). With approximately 6,000 salaried employees and craft professionals, the firm has offices in St. Louis; Atlanta; Collinsville, Ill.; Kansas City, Kan.; Omaha, Neb.; Phoenix; Las Vegas; Denver; Austin; Dallas; Houston; and San Diego, Newport Beach, Los Angeles, San Francisco, San Jose and Sacramento, Calif. McCarthy is 100 percent employee owned. More information about the company is available online at www.mccarthy.com or by following the company on Facebook, Twitter, LinkedIn and Instagram.
The crypto industry, which struggles with a reputation for being volatile, bad for the environment and overrun by wealthy tech guys, has tried to demystify itself for the general public in part by pouring money into marketing. Several ad experts said they had déjà vu, noting similarities to the gush of money dedicated to marketing the dot-com boom more than 20 years ago.
The number of crypto companies advertising more than tripled last year, and their spending more than quintupled, according to a sample of 200 companies reviewed by the research firm MediaRadar. The National Football League star Tom Brady signed on as a brand ambassador for FTX. Crypto.com paid $700 million to rename the Staples Center arena in Los Angeles. Celebrities including Spike Lee, Matt Damon and Neil Patrick Harris appeared in crypto commercials.
Meta, the parent company of Facebook, loosened a ban on crypto ads that had been in place at the social network since 2018, explaining in December that “the cryptocurrency landscape has continued to mature and stabilize in recent years.” Google also relaxed its crypto advertising guidelines over the summer.
Not everyone is sold. The Monetary Authority of Singapore, a financial regulator, said this year that crypto companies should stop advertising to retail investors because trading digital currencies is “highly risky and not suitable for the general public.” The Athletic, the sports news site recently bought by The New York Times, reported last year that the N.F.L. does not allow teams to sell sponsorships to cryptocurrency trading firms.
“The Super Bowl is low-effort — it’s fun, you’re in a relaxed mode, and then a crypto commercial comes on and it seems friendly and accessible and people might be more likely to give it a shot,” said Demetra Andrews, a clinical associate professor of marketing at Indiana University. “But it does present real risk, certainly more than trying out a new flavor of beverage or Uber Eats.”
Other technology ads will feature heavily in the Super Bowl, including sports betting ads (Caesars Sportsbook and DraftKings) and ads about the metaverse (Meta and Salesforce). Google has an ad centered on its Pixel 6 camera and diversity in photography. A commercial from the financial app and Super Bowl first-timer Greenlight shows the “Modern Family” actor Ty Burrell impulse-buying a Fabergé egg, a jetpack and a Pegasus.
He frequently tells the story of his supposed inspiration for founding Salesforce. Despite success at Oracle, where he worked early in his career, Mr. Benioff was plagued by existential doubt, prompting him to take a sabbatical to southern India. There, he visited a woman known as “the hugging saint,” who urged him to share his prosperity.
From the incorporation of Salesforce in 1999, Mr. Benioff pledged that he would devote 1 percent of its equity and product to philanthropic undertakings, while encouraging employees to dedicate 1 percent of their working time to voluntary efforts. Salesforce employees regularly volunteer at schools, food banks and hospitals.
“There are very few examples of companies doing this at scale,” Mr. Benioff told me in an interview. He noted that people were always talking to him about another business known for its focus on doing good, Ben & Jerry’s. He said this with a chuckle, clearly amused that his company — now worth more than $200 billion — could be compared to the aging Vermont hippies who had brought the world Cherry Garcia ice cream.
Mr. Benioff is by many indications a true believer, not just idly parroting Davos Man talking points. In 2015, when Indiana proceeded with legislation that would have allowed businesses to discriminate against gay, lesbian and transgender employees, he threatened to yank investment, forcing a change in the law. He shamed Facebook and Google for abusing the public trust and called for regulations on search and social media giants. Early in the pandemic, Salesforce embraced remote work to protect employees.
“I’m trying to influence others to do the right thing,” he told me. “I feel that responsibility.”
I found myself won over by his boyish enthusiasm, and his willingness to talk at length absent public relations minders — a rarity for Silicon Valley.
His philanthropic efforts have been directed at easing homelessness in San Francisco, while expanding health care for children. He and Salesforce collectively contributed $7 million toward a successful 2018 campaign for a local ballot measure that levied fresh taxes on San Francisco companies to finance expanded programs. The new taxes were likely to cost Salesforce $10 million a year.
That sounded like a lot of money, ostensible evidence of a socially conscious C.E.O. sacrificing the bottom line in the interest of catering to societal needs. But it was less than a trifle alongside the money that Salesforce withheld from the government through legal tax subterfuge.
George Brian McGee, a finance executive in Florida, was driving home in a Tesla Model S operating on Autopilot, a system that can steer, brake and accelerate a car on its own, when he dropped his phone during a call and bent down to look for it.
Neither he nor Autopilot noticed that the road was ending and the Model S drove past a stop sign and a flashing red light. The car smashed into a parked Chevrolet Tahoe, killing a 22-year-old college student, Naibel Benavides.
One of a growing number of fatal accidents involving Tesla cars operating on Autopilot, Mr. McGee’s case is unusual because he survived and told investigators what had happened: He got distracted and put his trust in a system that did not see and brake for a parked car in front of it. Tesla drivers using Autopilot in other fatal accidents have often been killed, leaving investigators to piece together the details from data stored and videos recorded by the cars.
“I was driving and dropped my phone,” Mr. McGee told an officer who responded to the accident, according to a recording from a police body camera. “I looked down, and I ran the stop sign and hit the guy’s car.”
Distracted driving can be deadly in any car. But safety experts say Autopilot may encourage distraction by lulling people into thinking that their cars are more capable than they are. And the system does not include safeguards to make sure drivers are paying attention to the road and can retake control if something goes wrong.
Mr. McGee, who declined to comment through his lawyer, told investigators that he was on the phone with American Airlines making reservations to fly out for a funeral. He called the airline at 9:05 p.m. on April 25, 2019. The call lasted a little more than five minutes and ended two seconds after his Model S crashed into the Tahoe, according to a Florida Highway Patrol investigation. Florida law makes it illegal to text while driving, but the state does not prohibit drivers from talking on a hand-held cellphone except in school or work zones.
no vehicle on sale today is close to achieving.
Tesla’s critics contend that Autopilot has several weaknesses, including the ability for drivers like Mr. McGee to use it on local roads. With the help of GPS and software, G.M., Ford Motor and other automakers restrict their systems to divided highways where there are no stop signs, traffic lights or pedestrians.
Tesla owners’ manuals warn customers not to use Autopilot on city streets. “Failure to follow these instructions could cause damage, serious injury or death,” the manual for 2019 models says.
a California couple sued Tesla in connection with a 2019 crash that killed their 15-year-old son.
The National Highway Traffic Safety Administration is investigating more than two dozen crashes that occurred when Autopilot was in use. The agency said it was aware of at least 10 deaths in those accidents.
A Commute Ends in Tragedy
posted videos on YouTube showing that the camera sometimes fails to notice when drivers look away from the road and that it can be fooled if they cover the lens. When the camera notices a Tesla driver looking away from the road, it sounds a warning chime but does not turn Autopilot off.
G.M. and Ford systems use infrared cameras to monitor drivers’ eyes. If drivers look away for more than two or three seconds, warnings remind them to look straight ahead. If drivers fail to comply, the G.M. and Ford systems will shut off and tell drivers to take control of the car.
Ms. Benavides emigrated from Cuba in 2016 and lived with her mother in Miami. She worked at a Walgreens pharmacy and a clothing store while attending community college. An older sister, Neima, 34, who is executor of the estate, said Naibel had been working to improve her English in hopes of getting a college degree.
“She was always laughing and making people laugh,” Neima Benavides said. “Her favorite thing was to go to the beach. She would go almost every day and hang out with friends or just sit by herself and read.”
Neima Benavides said she hoped the lawsuit would prod Tesla into making Autopilot safer. “Maybe something can change so other people don’t have to go through this.”
Ms. Benavides had just started dating Mr. Angulo when they went fishing on Key Largo. That afternoon, she sent her sister a text message indicating she was having a good time. At 9 p.m., Ms. Benavides called her mother from Mr. Angulo’s phone to say she was on the way home. She had lost her phone that day.
On the 911 call, Mr. McGee reported that a man was on the ground, unconscious and bleeding from the mouth. Several times Mr. McGee said, “Oh, my God,” and shouted “Help!” When an emergency operator asked if the man was the only injured person, Mr. McGee replied, “Yes, he’s the only passenger.”
Mr. Angulo was airlifted to a hospital. He later told investigators that he had no recollection of the accident or why they had stopped at the intersection.
An emergency medical technician spotted a woman’s sandal under the Tahoe and called on others to start searching the area for another victim. “Please tell me no,” Mr. McGee can be heard saying in the police video. “Please tell me no.”
Ms. Benavides’s body was found about 25 yards away.
Shortly after 8 p.m. on May 25, 2020, Derek Chauvin, a Minneapolis police officer, placed his knee on George Floyd’s neck and kept it there for more than nine minutes. None of the three other officers standing near Chauvin intervened. Soon, Floyd was dead.
Initially, the police gave a misleading account of Floyd’s death, and the case might have received relatively little attention but for the video that Darnella Frazier, a 17-year-old, took with her phone. That video led to international outrage and, by some measures, the largest protest marches in U.S. history.
Today, one year after Floyd’s murder, we are going to look at the impact of the movement that his death inspired in four different areas.
30 states and dozens of large cities have created new rules limiting police tactics. Two common changes: banning neck restraints, like the kind Chauvin used; and requiring police officers to intervene when a fellow officer uses extreme force.
pledged to hire more diverse workforces.
wrote. “So companies and institutions stopped whining about supposedly bad pipelines and started looking beyond them.”
It’s still unclear how much has changed and how much of the corporate response was public relations.
3. Changes in public opinion
Initially, public sympathy for the Black Lives Matter movement soared. But as with most high-profile political subjects in the 21st-century U.S., opinion soon polarized along partisan lines.
Today, Republican voters are less sympathetic to Black Lives Matter than they were a year ago, the political scientists Jennifer Chudy and Hakeem Jefferson have shown. Support among Democrats remains higher than it was before Floyd’s death but is lower than immediately afterward.
There are a few broad areas of agreement. Most Americans say they have a high degree of trust in law enforcement — even more than did last June, FiveThirtyEight’s Alex Samuels notes. Most also disagree with calls to “defund” or abolish police departments. Yet most back changes to policing, such as banning chokeholds.
4. A crime surge, much debated
It’s clear that violent crime has risen over the past year. It’s not fully clear why.
Many liberals argue that the increase has little to do with the protest movement’s call for less aggressive policing. The best evidence on this side of the debate is that violent crime was already rising — including in Chicago, New York and Philadelphia — before the protests. This pattern suggests that other factors, like the pandemic and a surge of gun purchases, have played important roles.
Many conservatives believe that the crime spike is connected to the criticism of the police, and they point to different evidence. First, the crime increase accelerated last summer, after the protests began — and other high-income countries have not experienced similar increases. Second, this acceleration fits into a larger historical pattern: Crime also rose in Baltimore and Ferguson, Mo., after 2015 protests about police violence there, as Patrick Sharkey, a sociologist and crime scholar, notes.
Sharkey has told us. But that doesn’t mean that the pre-protest status quo was the right approach, he emphasizes. Brute-force policing “can reduce violence,” he said, in a Q. and A. with The Atlantic. “But it comes with these costs that don’t in the long run create safe, strong, or stable communities.”
Some reform advocates worry that rising crime will rebuild support for harsh police tactics and prison sentences. “Fear makes people revert to old ways of doing things,” Lopez said.
The big question
How can police officers both prevent crime and behave less violently, so that they kill fewer Americans while doing their jobs?
Some experts say that officers should focus on hot spots where most crimes occur. Others suggest training officers to de-escalate situations more often. Still others recommend taking away some responsibilities from the police — like traffic stops and mental-health interventions — to reduce the opportunities for violence.
So far, the changes do not seem to have affected the number of police killings. Through last weekend, police officers continued to kill about three Americans per day on average, virtually the same as before Floyd’s murder.
A timeline of the events of the past year.
President Biden will meet with members of Floyd’s family at the White House today. Follow updates here about the anniversary.
THE LATEST NEWS
125th anniversary, The Times Book Review is highlighting some noteworthy first mentions of famous writers. You can find the full list here. Some of our favorites:
F. Scott Fitzgerald: In 1916, Princeton admitted only men, and they would often play women’s roles in campus plays. The Times featured a photo of Fitzgerald in character, calling him “the most beautiful showgirl.”
in an article about a “Greek Games” competition among students at Barnard: “A messenger, Joan Roth, rushed in to say that Persephone still lived and a rejoicing group danced in. Eight tumblers did tricks before the crowd to distract the still disconsolate Demeter.” Highsmith was among the student acrobats.
Ralph Ellison: In 1950, two years before the publication of “Invisible Man,” Ellison reviewed a novel called “Stranger and Alone,” by J. Saunders Redding. Ellison wrote that Saunders “presents many aspects of Southern Negro middle-class life for the first time in fiction.”
John Updike: An acclaimed short-story writer who had yet to publish a novel, Updike appeared in an advice article in 1958, encouraging parents to teach their children complex words. “A long correct word is exciting for a child,” he said. “Makes them laugh; my daughter never says ‘rhinoceros’ without laughing.” — Sanam Yar, a Morning writer
PLAY, WATCH, EAT
What to Cook
Here’s today’s Mini Crossword, and a clue: Comedian Silverman (five letters).
If you’re in the mood to play more, find all our games here.
Thanks for spending part of your morning with The Times. See you tomorrow. — David
P.S. The first “Star Wars” movie premiered 44 years ago today. Vincent Canby’s Times review called it “the most elaborate, most expensive, most beautiful movie serial ever made.”
You can see today’s print front page here.
“The Daily” is about a student free speech case. On “Sway,” Eliot Higgins discusses Bellingcat’s journalism.
Lalena Fisher, Claire Moses, Tom Wright-Piersanti and Sanam Yar contributed to The Morning. You can reach the team at firstname.lastname@example.org.
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Good morning and happy Sunday. Here’s what you need to know in business and tech news for the week ahead. — Charlotte Cowles
had a rough week. Digital currencies saw several ugly crashes, with Bitcoin ending Friday nearly 30 percent below its price a week before. The plunge followed an announcement from China that effectively banned its financial institutions from providing services related to cryptocurrency transactions. (Elon Musk’s sudden about-face on Bitcoin probably didn’t help, either.) The volatility shook some investors’ confidence in crypto, which has ridden a seemingly unstoppable wave of popularity — and gained traction with mainstream investors — over the past year.
Texas, Oklahoma and Indiana joined more than a dozen other states that are ending federal pandemic unemployment benefits early, citing the need to incentivize people to get back to work. The decision will get rid of the $300-a-week supplement that unemployment recipients have been getting since March and were scheduled to receive through September. It will also end all benefits for freelancers, part-timers and those who have been out of work for more than six months. Some lawmakers believe that cutting off benefits will encourage more people to apply for jobs, but that’s not always the case — a persistent lack of child care has also prevented many parents from returning to work.
can cause premature death, according to a new study by the World Health Organization. Long hours — also known as overwork — are on the rise and are associated with an estimated 35 percent higher risk of stroke and 17 percent higher risk of heart disease compared with working 35 to 40 hours per week, researchers said.
give the Internal Revenue Service more money to chase down wealthy individuals and companies who cheat on their taxes. As part of the same effort to close tax loopholes, the U.S. Treasury Department is trying to convince other countries to back a 15 percent global minimum tax rate on big companies. The policy is meant to deter corporations from sheltering their operations in tax havens such as Bermuda and the British Virgin Islands. But a number of governments have been hesitant to sign on for fear that they’ll scare off businesses.
Eyeing the Competition
Congress wants to bolster the United States’ ability to compete with China and is willing to throw money at the problem. The senate is working on a bill that would invest $120 billion in the nation’s development of cutting-edge technology and manufacturing. Known as the Endless Frontier Act, the legislation would fund new research on a scale that its proponents say has not been seen since the Cold War. In related news, the European Union blocked an investment deal with China on Thursday, citing concerns with the country’s abysmal human rights record.
C.E.O.s in the Hot Seat
Executives from the largest U.S. banks, including JPMorgan, Bank of America and Goldman Sachs, will testify before lawmakers this week about their actions (or lack thereof) to help struggling Americans and small businesses during the pandemic. Democrats on the Senate Banking and House Financial Services committees organized the hearings to scrutinize the banks’ role in lending money to alleviate the financial pressures of the past 15 months. The testimony could affect how lawmakers seek to regulate Wall Street in the coming years.
soared 30 percent in its initial public offering on Wednesday. Amazon indefinitely extended its ban on police usage of its facial recognition software, which has faced ethical criticism. And New York City lifted nearly all of its pandemic restrictions, allowing businesses to welcome customers back at full capacity.
The strange, serendipitous, 60-year saga of a historically significant but long-missing 1960 Chevrolet Corvette finally reached a measure of closure on Saturday with its sale for a somewhat disappointing $685,000 “hammer price” at a court-ordered auction in Amelia Island, Fla. A sales commission of about 10 percent made the final “drive-off” price $785,500.
The auctioneers, RM Sotheby’s, had a pre-auction estimate of $900,000 to $1.3 million for the no-reserve sale. The identity of the winning bidder, as is customary, was not officially announced.
Corvette racing aficionados hold this car in special regard since it had vanished for nearly 40 years after its star-crossed debut at the 1960 24 Hours of Le Mans race. It has been the subject of seemingly endless legal twists and turns, and acrimonious confrontations, since its chance rediscovery in 2011.
This car was one of three identical blue-on-white Corvettes — numbered 1, 2 and 3 — which made up the “Briggs Cunningham team” of 1960 coupes sent with clandestine Chevrolet factory support to contest the French endurance classic. Although this particular car, the No. 1, and a team car crashed and burned in the race while running up front, the remaining contestant soldiered on to win its class — a milestone in Corvette racing annals.
Chevrolet couldn’t make much hay out of its accomplishment because the effort had been set up by rogue employees, in defiance of a corporate ban on racing. So after the race, the cars were quietly sold off to private parties. It took until the 1990s for sleuths to figure out the cars’ secret Vehicle Identification Numbers. Two were then easy to find, were restored to their former glory, and ended up with a Corvette enthusiast, Lance Miller, of Carlisle, Pa. Mr. Miller arranged for a lavish, nostalgic return to Le Mans for a 50th anniversary Lap of Honor in 2010 for the extant two cars and one of the original winning drivers, John Fitch, then 92.
The third Corvette, as it turned out, had been bought by a South Florida amateur sports car racer, who inexplicably commissioned a crude reshaping of the Corvette’s fiberglass body into something resembling a 1950-ish Zagato Gran Turismo. A 1970s-era V8, believed to be from a Pontiac, was also installed. It then found its way to a Tampa-area drag racer who painted it purple.
Today in Business
But Mr. Miller and his restoration expert, Kevin Mackay, of Valley Stream, N.Y., thought they had made the discovery of a lifetime when they responded to a newspaper ad for a “Zagato-bodied Pontiac prototype” that turned out to have the VIN of the missing Corvette. They eagerly bought the misshapen monstrosity on a bill of sale from the purported owner.
On the eve of its much-ballyhooed public unveiling in Carlisle they were interrupted by the police, armed with a Florida title and a stolen-vehicle report. A retired police officer, who was the son of the now-deceased drag racer, claimed it had been purloined from his father’s yard many years earlier.
A complicated legal battle ensued. Mr. Miller wanted out of the controversy and sold his interest to Mr. Mackay, who vowed to fight to the end.
Along the way, the drag racer’s son, an Indiana car dealer, a self-described Florida “treasure hunter” and others all asserted an interest in the car. At least three of them subsequently experienced financial difficulties that also brought their creditors into the picture. And it all culminated with a frustrated judge ordering the sale of the car, with proceeds to be divided among the claimants, and a clear title to be issued to the winning bidder.
Mr. Mackay, who retained rights to a 30 percent share of the proceeds, declared it the “end of a long road” for the Corvette’s identity crisis. He predicted the car would eventually be restored and take its rightful place in history with its two other pristine teammates.
Paul Romer was once Silicon Valley’s favorite economist. The theory that helped him win a Nobel prize — that ideas are the turbocharged fuel of the modern economy — resonated deeply in the global capital of wealth-generating ideas. In the 1990s, Wired magazine called him “an economist for the technological age.” The Wall Street Journal said the tech industry treated him “like a rock star.”
Today, Mr. Romer, 65, remains a believer in science and technology as engines of progress. But he has also become a fierce critic of the tech industry’s largest companies, saying that they stifle the flow of new ideas. He has championed new state taxes on the digital ads sold by companies like Facebook and Google, an idea that Maryland adopted this year.
And he is hard on economists, including himself, for long supplying the intellectual cover for hands-off policies and court rulings that have led to what he calls the “collapse of competition” in tech and other industries.
“Economists taught, ‘It’s the market. There’s nothing we can do,’” Mr. Romer said. “That’s really just so wrong.”
free-market theory. Monopoly or oligopoly seems to be the order of the day.
The relentless rise of the digital giants, they say, requires new thinking and new rules. Some were members of the tech-friendly Obama administration. In congressional testimony and research reports, they are contributing ideas and credibility to policymakers who want to rein in the big tech companies.
Their policy recommendations vary. They include stronger enforcement, giving people more control over their data and new legislation. Many economists support the bill introduced this year by Senator Amy Klobuchar, Democrat of Minnesota, that would tighten curbs on mergers. The bill would effectively “overrule a number of faulty, pro-defendant Supreme Court cases,” Carl Shapiro, an economist at the University of California, Berkeley, and a member of the Council of Economic Advisers in the Obama administration, wrote in a recent presentation to the American Bar Association.
Some economists, notably Jason Furman, a Harvard professor, chair of the Council of Economic Advisers in the Obama administration and adviser to the British government on digital markets, recommend a new regulatory authority to enforce a code of conduct on big tech companies that would include fair access to their platforms for rivals, open technical standards and data mobility.
his Nobel lecture in 2018 prompted him to think about the “progress gap” in America. Progress, he explained, is not just a matter of economic growth, but should also be seen in measures of individual and social well-being.
Mr. Romer pushed the idea that new cities of the developing world should be a blend of government design for basics like roads and sanitation, and mostly let markets take care of the rest. During a short stint as chief economist of the World Bank, he had hoped to persuade the bank to back a new city, without success.
In the big-tech debate, Mr. Romer notes the influence of progressives like Lina Khan, an antitrust scholar at Columbia Law School and a Democratic nominee to the Federal Trade Commission, who see market power itself as a danger and look at its impact on workers, suppliers and communities.
That social welfare perspective is a wider lens that appeals to Mr. Romer and others.
“I’m totally on board with Paul on this,” said Rebecca Henderson, an economist and professor at the Harvard Business School. “We have a much broader problem than one that falls within the confines of current antitrust law.”
Mr. Romer’s specific contribution is a proposal for a progressive tax on digital ads that would apply mainly to the largest internet companies supported by advertising. Its premise is that social networks like Facebook and Google’s YouTube rely on keeping people on their sites as long as possible by targeting them with attention-grabbing ads and content — a business model that inherently amplifies disinformation, hate speech and polarizing political messages.
So that digital ad revenue, Mr. Romer insists, is fair game for taxation. He would like to see the tax nudge the companies away from targeted ads toward a subscription model. But at the least, he said, it would give governments needed tax revenue.
In February, Maryland became the first state to pass legislation that embodies Mr. Romer’s digital ad tax concept. Other states including Connecticut and Indiana are considering similar proposals. Industry groups have filed a court challenge to the Maryland law asserting it is an illegal overreach by the state.
Mr. Romer says the tax is an economic tool with a political goal.
“I really do think the much bigger issue we’re facing is the preservation of democracy,” he said. “This goes way beyond efficiency.”