SAN ANTONIO HUISTA, Guatemala — An American contractor went to a small town in the Guatemalan mountains with an ambitious goal: to ignite the local economy, and hopefully even persuade people not to migrate north to the United States.
Half an hour into his meeting with coffee growers, the contractor excitedly revealed the tool he had brought to change their lives: a pamphlet inviting the farmers to download an app to check coffee prices and “be a part of modern agriculture.”
Pedro Aguilar, a coffee farmer who hadn’t asked for the training and didn’t see how it would keep anyone from heading for the border, looked confused. Eyeing the U.S. government logo on the pamphlet, he began waving it around, asking if anyone had a phone number to call the Americans “and tell them what our needs really are.”
soared in 2019 and is on the upswing once more.
have risen, malnutrition has become a national crisis, corruption is unbridled and the country is sending more unaccompanied children to the United States than anywhere else in the world.
That is the stark reality facing Ms. Harris as she assumes responsibility for expanding the same kind of aid programs that have struggled to stem migration in the past. It is a challenge that initially frustrated her top political aides, some of whom viewed the assignment from Mr. Biden as one that would inevitably set her up for failure in the first months of her tenure.
Her allies worried that she would be expected to solve the entire immigration crisis, irked that the early reports of her new duties appeared to hold her responsible for juggling the recent surge of children crossing the border without adults.
linked to drug traffickers and accused of embezzling American aid money, the leader of El Salvador has been denounced for trampling democratic norms and the government of Guatemala has been criticized for persecuting officials fighting corruption.
Even so, Ms. Harris and her advisers have warmed to the task, according to several people familiar with her thinking in the White House. They say it will give her a chance to dive squarely into foreign policy and prove that she can pass the commander-in-chief test, negotiating with world leaders on a global stage to confront one of America’s most intractable issues.
critics denounced as unlawful and inhumane. Moreover, members of the current administration contend that Mr. Trump’s decision to freeze a portion of the aid to the region in 2019 ended up blunting the impact of the work being done to improve conditions there.
But experts say the reasons that years of aid have not curbed migration run far deeper than that. In particular, they note that much of the money is handed over to American companies, which swallow a lot of it for salaries, expenses and profits, often before any services are delivered.
Record numbers of Central American children and families were crossing, fleeing gang violence and widespread hunger.
independent studies have found.
“All activities funded with U.S.A.I.D.’s foreign assistance benefit countries and people overseas, even if managed through agreements with U.S.-based organizations,” said Mileydi Guilarte, a deputy assistant administrator at U.S.A.I.D. working on Latin America funding.
But the government’s own assessments don’t always agree. After evaluating five years of aid spending in Central America, the Government Accountability Office rendered a blunt assessment in 2019: “Limited information is available about how U.S. assistance improved prosperity, governance, and security.”
One U.S.A.I.D. evaluation of programs intended to help Guatemalan farmers found that from 2006 to 2011, incomes rose less in the places that benefited from U.S. aid than in similar areas where there was no intervention.
Mexico has pushed for a more radical approach, urging the United States to give cash directly to Central Americans affected by two brutal hurricanes last year. But there’s also a clear possibility — that some may simply use the money to pay a smuggler for the trip across the border.
The farmers of San Antonio Huista say they know quite well what will keep their children from migrating. Right now, the vast majority of people here make their money by selling green, unprocessed coffee beans to a few giant Guatemalan companies. This is a fine way to put food on the table — assuming the weather cooperates — but it doesn’t offer much more than subsistence living.
Farmers here have long dreamed of escaping that cycle by roasting their own coffee and selling brown beans in bags to American businesses and consumers, which brings in more money.
“Instead of sending my brother, my father, my son to the United States, why not send my coffee there, and get paid in dollars?” said Esteban Lara, the leader of a local coffee cooperative.
But when they begged a U.S. government program for funding to help develop such a business, Ms. Monzón said, they were told “the money is not designed to be invested in projects like that.”
These days, groups of her neighbors are leaving for the United States every month or two. So many workers have abandoned this town that farmers are scrambling to find laborers to harvest their coffee.
One of Ms. Monzón’s oldest employees, Javier López Pérez, left with his 14-year-old son in 2019, during the last big wave of Central American migration to the United States. Mr. López said he was scaling the border wall with his son when he fell and broke his ankle.
“My son screamed, ‘Papi, no!’ and I said to him, ‘Keep going, my son,’” Mr. López said. He said his son made it to the United States, while he returned to San Antonio Huista alone.
His family was then kicked out of their home, which Mr. López had given as collateral to the person who smuggled him to the border. The house they moved into was destroyed by the two hurricanes that hit Guatemala late last year.
Ms. Monzón put Mr. López in one of her relatives’ houses, then got the community to cobble together money to pay for enough cinder blocks to build the family a place to live.
While mixing cement to bind the blocks together, one of Mr. López’s sons, Vidal, 19, confessed that he had been talking to a smuggler about making the same journey that felled his father, who was realistic at the prospect.
“I told him, ‘Son, we suffered hunger and thirst along the way, and then look at what happened to me, look at what I lost,’” Mr. López said, touching his still-mangled ankle. “But I can’t tell him what to do with his life — he’s a man now.”
We meet Adams Maihota outside his house in the dead of night. A crab hunter, he wears white plastic sandals, board shorts, a tank top and a cummerbund to hold lengths of twine. He picks a sprig of wild mint and tucks it behind his ear for good luck.
The photographer Eric Guth and I follow Mr. Maihota’s blazing headlamp into the forest in search of coconut crabs, known locally as kaveu. They are the largest land invertebrate in the world, and, boiled or stir-fried with coconut milk, they are delicious. Since the cessation of phosphate mining here in 1966, they have become one of Makatea’s largest exports.
It’s ankle-breaking terrain. We negotiate the roots of pandanus trees and never-ending feo, a Polynesian term for the old reef rocks that stick up everywhere. Vegetation slaps our faces and legs, and our skin becomes slick with sweat.
The traps, which Mr. Maihota laid earlier that week, consist of notched coconuts tied to trees with fibers from their own husks. When we reach one, we turn off our lights to approach quietly. Then, Mr. Maihota pounces.
A moment later, he stands up with a sky-blue crab pedaling its ten legs in broad circles. Even with its fleshy abdomen curled under the rest of its body, the animal is much longer than the hunter’s hand.
Makatea, part of the Tuamotu Archipelago in French Polynesia, sits in the South Pacific about 150 miles northeast of Tahiti. It’s a small uplifted coral atoll, barely four and a half miles across at its widest point, with steep limestone cliffs that rise as high as 250 feet straight out of the sea.
From 1908 until 1966, Makatea was home to the largest industrial project in French Polynesia: Eleven million tons of phosphate-rich sand were dug out and exported for agriculture, pharmaceuticals and munitions. When the mining ceased, the population fell from around 3,000 to less than 100. Today, there are about 80 full-time residents. Most of them live in the central part of the island, close to the ruins of the old mining town, which is now rotting into the jungle.
One-third of Makatea consists of a maze of more than a million deep, circular holes, known as the extraction zone — a legacy of the mining operations. Crossing into that area, especially at night, when coconut crabs are active, can be deadly. Many of the holes are over 100 feet deep, and the rock ledges between them are narrow. Still, some hunters do it anyway, intent on reaching the rich crab habitat on the other side.
One evening before sunset, a hunter named Teiki Ah-scha meets us in a notoriously dangerous area called Le Bureau, so named for the mining buildings that used to be there. Wearing flip-flops, Mr. Ah-scha trots around the holes and balances on their edges. When he goes hunting across the extraction zone, he comes home in the dark with a sack full of crabs on his back.
Mr. Maihota, too, used to hunt this way — and he tells me that he misses it. But ever since his wife fell into a shallow hole a few months before our visit in 2019, she has forbidden him to cross the extraction zone. Instead, he sets traps around the village.
Coconut crabs inhabit a broad range, from the Seychelles in the Indian Ocean to the Pitcairn Islands in the southern Pacific Ocean. They were part of local diets long before the mining era. The largest specimens, “les monstres,” can be the length of your arm and live for a century.
There hasn’t been a population study on Makatea, so the crab’s conservation status is unclear — though at night, rattling across the rocks, they seem to be everywhere.
When we catch crabs that aren’t legal — either females or those less than six centimeters across the carapace — Mr. Maihota lets them go.
If the islanders are not careful, he says, the crabs might not be around for future generations. In many places across the Indo-Pacific, the animals have been hunted to the point of extirpation, or local extinction.
Makatea is at a crossroads. Half a century after the first mining era, there is a pending proposal for more phosphate extraction. Though the island’s mayor and other supporters cite the economic benefits of work and revenue, opponents say that new industrial activity would destroy the island, including its fledgling tourism industry.
“We cannot make her suffer again,” one woman tells me, invoking the island as a living being.
Still, it’s hard to make a living here. “There is no work,” Mr. Maihota says, as we stand under the stars and drip sweat onto the forest floor. He doesn’t want to talk about the mine. The previous month, he shipped out 70 coconut crabs for $10 each to his buyers in Tahiti.
In popular hunting spots, hunters say the crabs are smaller or fewer, but hunters rely on the income and nobody has the full picture of how the population is doing overall.
We visit Mr. Maihota’s garden the next morning where the crabs are sequestered in individual boxes to keep them from attacking each other. He’ll feed them coconut and water to purge their systems, since, in the wild, they eat all manner of food, including carrion.
By daylight, their shells are rainbows of purple, white, orange, along with many shades of blue. For now at least — without mining, and while harvests are still sustainable — they seem perfectly adapted to Makatea, holes and all.
LOD, Israel — Years before the mixed Arab-Jewish city of Lod erupted in mob violence, a demographic shift had begun to take root: Hundreds of young Jews who support a religious, nationalist movement started to move into a mostly Arab neighborhood with the express aim of strengthening the Israeli city’s Jewish identity.
A similar change was playing out in other mixed Arab-Jewish cities inside Israel, such as nearby Ramla and Acre in the north — part of a loosely organized nationwide project known as Torah Nucleus. They say that their intention is to uplift poor and neglected areas on the margins of society, particularly in mixed cities, and to enrich Jewish life there. Its supporters have moved into dozens of Israeli cities and towns.
“Perhaps ours is a complex message,” said Avi Rokach, 43, chairman of the Torah Nucleus association in Lod. “Lod is a Jewish city. It is our agenda and our religious duty to look out for whoever lives here, be they Jewish, Muslim or Hindu.”
In Lod, hundreds of the city’s Arab citizens took to the streets, throwing stones, burning cars and setting fire to properties, venting their rage against one primary target: The mostly young, Orthodox Jewish families who had arrived in recent years, saying they wanted to lift up the working-class city and make it more Jewish.
organized on social networks and sought out Arab victims in Lod and other cities, beating an Arab man almost to death in the Tel Aviv suburb of Bat Yam.
Lod, which traces its history to the days of Canaan and is known as Lydda in Arabic, has a particularly fraught history centered around the creation of the state of Israel in 1948. Most of the original Palestinian residents of the city were expelled and never allowed to return.
Bedouins — the seminomadic Arabs from Israel’s Negev desert — arrived in the following decades as did families of Palestinians from the West Bank who had collaborated with Israel, seeking refuge.
to tone down the volume on the Muslim call to prayer from minarets in the city and his right-hand man is a founder of Lod’s Torah Nucleus.
Arab resentment is compounded by a lingering fear of displacement, house by house.
About eight years ago, Torah Nucleus built a pre-army academy and a religious boys’ elementary school next to the long-established school for Arab pupils on Exodus Street in the heart of Ramat Eshkol.
These Jewish institutions were the first to be set on fire on May 10. The trouble started after evening prayers, witnesses said. Arab youths raised a Palestinian flag in the square and demonstrated in solidarity with Palestinians in Jerusalem and Gaza. The police dispersed them with tear gas and stun grenades.
Angry Arab mobs then went on a rampage, burning synagogues, Jewish apartments and cars in Ramat Eshkol. One group approached another Torah Nucleus neighborhood, where a Jewish crowd had gathered.
There, the four Jewish suspects in the shooting claimed, they fired in the air in self-defense as Arab rioters began to rush at them, throwing stones and firebombs, according to court documents.
The funeral for the victim, Mr. Hassouna, the next day devolved into new clashes as the mourners, the building contractor Mr. Salama among them, insisted on passing through Exodus Street with the body in defiance of police instructions.
That night, gangs of Jewish extremists, some of them armed, came from out of town to attack Arabs and their property, according to witnesses. Mr. Salama said he was hit by a stone while sitting in his garden. Gunshots were heard on both sides.
One Jewish apartment in Ramat Eshkol was burned to cinders after Arab intruders broke open a hole in the wall. The family had already left. A neighbor, Nadav Klinger, said the charred flat would be preserved as a museum.
Elsewhere in Lod, some veteran Jewish and Arab neighbors said their good relations remained intact and agreed that the influx of religious Jewish professionals had lifted the city up.
Ayelet-Chen Wadler, 44, a physicist who grew up in a West Bank settlement, came to Lod with her family 15 years ago to join the Torah Nucleus community.
“I was raised to try to make an impact,” she said. “Just by living here, you make a difference.”
A week after the peak in the violence, about 30 of the 40 Jewish families who had evacuated their homes in the Ramat Eshkol neighborhood had returned.
“I believe we can get back to where we were before, but it might take some time,” said Mr. Rokach, the chairman of the Torah nucleus in Lod, condemning the revenge attacks by Jews from outside.
“Nobody’s leaving. Quite the opposite. As we speak, I just got a WhatsApp message from a family looking for a home here. Nor are the Arabs leaving.”
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.
When Jeffrey Epstein gave The Times columnist James Stewart a tour of his apartment a few years ago, he boasted of his expansive Rolodex of billionaires — and the dirt he had on them. A year and a half after the financier’s death by suicide in a New York jail, the fallout for those in the registered sex offender’s orbit, and increasingly those a step or two removed from it, continues to spread.
For example, the latest management reshuffle at Apollo, as we reported yesterday, can be linked back to Epstein. Tracing all the resignations and reshuffles directly and indirectly tied to the scandal will take a while (we’re working on it), but here’s a tally of some so far:
The Apollo co-founder Leon Black said in January that he would resign as C.E.O. but stay on as chairman, after an internal inquiry found he had paid $158 million to Epstein for tax advice. He unexpectedly quit both posts in March, and later stepped down as chairman of the Museum of Modern Art. Josh Harris, a fellow co-founder who had unsuccessfully pushed Black to quit immediately, said yesterday that he was stepping back from Apollo after failing to become the next C.E.O.; Marc Rowan, Apollo’s third co-founder and Black’s pick as successor, now leads the firm.
When the details of meetings between Epstein and Bill Gates burst into public view in late 2019, the billionaire’s wife, Melinda French Gates, hired divorce lawyers. The couple’s split, announced this month, could upend their numerous investments and philanthropic ventures
Les Wexner announced last February that he would step down as C.E.O. of the Victoria’s Secret parent company L Brands, under pressure from multiple internal investigations about his close ties to Epstein. Earlier this year, he and his wife, Abigail Wexner, said they would not stand for re-election to the L Brands board this month. (The company is now in the process of spinning off Victoria’s Secret.) Mr. Wexner was Epstein’s biggest early client and, a Times investigation found, the original source of the financier’s wealth.
Prince Andrew of Britain gave up his public duties last November, days after a disastrous interview with the BBC centered on his relationship with Epstein. At least 47 charities and nonprofits of which he was a patron have since cut ties to the prince.
Joi Ito resigned as the director of the M.I.T. Media Lab, a prominent research group, in 2019 and as member of several corporate boards (including The New York Times Co.), after acknowledging that he had received $1.7 million in investments from Epstein.
Alexander Acosta resigned as Donald Trump’s labor secretary in 2019, amid criticism of his handling of a 2008 sex crimes case against Epstein when he was a federal prosecutor in Miami.
HERE’S WHAT’S HAPPENING
Morgan Stanley sets up its C.E.O. succession competition. The Wall Street firm gave new roles to four top executives, marking them as candidates to take over from James Gorman: Ted Pick and Andy Saperstein were named co-presidents; Jonathan Pruzan was named C.O.O.; and Dan Simkowitz was named co-head of strategy with Pick.
The U.S. endorses a global minimum tax of at least 15 percent. The proposal, which was lower than some had expected, is closely tied to the Biden administration’s plans to raise the corporate tax rate. Global coordination would discourage multinationals from shifting to tax havens overseas.
Treasury officials said they could capture at least $700 billion in additional revenue. That would involve hiring 5,000 new I.R.S. agents, imposing new rules on reporting crypto transactions and other measures.
U.S. customs officials block a Uniqlo shipment over Chinese forced labor concerns. Agents at the Port of Los Angeles acted under an order prohibiting imports of cotton items produced in the Xinjiang region.
U.S. steel prices are soaring. After years of job losses and mill closures, American steel producers have enjoyed a reversal of fortune: Nucor, for instance, is the year’s top-performing stock in the S&P 500. Credit goes to industry consolidation, a recovering economy and Trump-era tariffs. Unsurprisingly, steel consumers aren’t thrilled about it.
Oprah Winfrey to Blackstone, made its stock market debut yesterday, ending its first trading session with a valuation of about $13 billion. DealBook spoke with Oatly’s C.E.O., Toni Petersson, about the I.P.O. and what’s next for the company.
resignation letter offering both praise of SoftBank’s chief, Masa Son — and unusually pointed criticism of the company’s corporate governance.
Going out vs. staying in, charted
It’s been a while since we checked in on an alternative indicator of pandemic economic activity: the share price ratio of Clorox to Dave & Buster’s.
Wait, what? Nick Mazing, the director of research at the data provider Sentieo, came up with that metric to gauge the openness of the economy. The higher Clorox’s share price rises relative to Dave & Buster’s, the more people appear to be staying home and disinfecting everything than going out to crowded bars. By this measure, conditions have nearly returned to prepandemic levels — indeed, Dave & Buster’s recently lifted its sales forecast, as nearly all of its beer-and-arcade bars have reopened.
packed concert schedule, selling tickets to people who may have already binge-watched all of “Below Deck.” The second, however, suggests that people aren’t as eager to get back to huffing and puffing at the gym as they are content to exercise at home. As restrictions lift and people feel safer in crowds, drinking and dancing appear to be higher priorities.
new book, “Noise: A Flaw in Human Judgment,” the Princeton psychology professor and Nobel laureate Daniel Kahneman, along with co-authors Olivier Sibony and Cass Sunstein, argue that these inconsistencies have enormous and avoidable consequences. Kahneman spoke to DealBook about how to hone judgment and reduce noise.
DealBook: What is “noise” in this context?
Kahneman: It’s unwanted and unpredictable variability in judgments about the same situations. Some decisions and solutions are better than others and there are situations where everyone should be aiming at the same target.
Can you give some examples?
A basic example is the criminal justice system, which is essentially a machine for producing sentences for people convicted of crimes. The punishments should not be too different for the same crime yet sentencing turns out to depend on the judge and their mood and characteristics. Similarly, doctors looking at the same X-ray should not be reaching completely different conclusions.
How do individuals or institutions detect this noise?
You detect noise in a set of measurements and can run an experiment. Present underwriters with the same policy to evaluate and see what they say. You don’t want a price so high that you don’t get the business or one so low that it represents a risk. Noise costs institutions. One underwriter’s decision about one policy will not tell you about variability. But many underwriters’ decisions about the same cases will reveal noise.
An arm of Goldman Sachs has raised $3 billion from clients to invest in later-stage start-ups. (WSJ)
SPACs have raised $100 billion this year through May 19, a record, but new fund listings dropped sharply last month. (Insider)
Politics and policy
President Biden issued an executive order directing government agencies to expand efforts to analyze and mitigate the economic risks tied to climate change. (Axios)
“As Paycheck Protection Program Runs Dry, Desperation Grows” (NYT)
CNN said the prime-time host Chris Cuomo inappropriately advised his brother, Gov. Andrew Cuomo of New York, on how to respond to sexual harassment allegations. (NYT)
Paul Romer was one of the tech industry’s favorite economists; now he is criticizing Silicon Valley giants for being too big. (NYT)
Amazon was recently pushed to ban prominent electronics accessory makers by the F.T.C. over fake-review schemes. (Recode)
Best of the rest
Bill Gates and Warren Buffett got more than 200 billionaires to pledge half their wealth to charity. Some are falling short, but still getting massive tax breaks. (Insider)
FIFA, the global soccer governing body, secretly considered supporting the European Super League, before reconsidering amid public outcry about the now-failed competition. (NYT)
Five questions to ask before you panic about inflation. (NYT)
We’d like your feedback! Please email thoughts and suggestions to email@example.com.
Shares of Oatly soared 30 percent on Thursday as investors jumped at the chance to take part in rapid changes in the food industry driven by consumer tastes shifting to plant-based products.
The company, which makes an alternative to dairy milk based on oats, priced its initial public offering Wednesday night on the high end of its range, giving the company a value of about $10 billion. Shares were priced at $17 and began trading at $22.12 on the Nasdaq under the ticker “OTLY.”
The offering comes as money is flooding into the food tech space, with investors eager to catch a ride on the next Beyond Meat — the vegan food company valued at about $6.6 billion by public investors. And investors have put a heightened focus on companies like Oatly that say they meet environmental, social and governance standards.
“Long term, it’s an opportunity for us to create a fantastic shareholder base,” Oatly’s chief executive, Toni Petersson, said of the offering. “So E.S.G. was definitely a huge, huge part of it — so we’re excited, we’re really excited, about the outcome here.”
complained about Oatly’s marketing around its use of sugar. But Oatly has no plans to address its sugar content.
“We’re just replicating what nature does before it enters your stomach,” Mr. Petersson said in describing the process of making oatmilk.
give up day-to-day duties at the private equity giant, after clashing with his fellow founders over the departure of Leon Black as the firm’s chief executive.
The departure of Mr. Harris, 56, comes months after he argued that Mr. Black should step down immediately following Apollo’s investigation into his ties to Jeffrey Epstein, the late financier and registered sex offender. Mr. Harris was overruled by the other two members of Apollo’s executive committee, the firm’s other founders, Mr. Black and Marc Rowan.
Mr. Harris served as one of Apollo’s most visible and hands-on managers, but instead of succeeding Mr. Black as chief executive, he lost out to Mr. Rowan, who had announced last year that he was taking a “semi-sabbatical” from the firm.
In March, however, Mr. Black — who had agreed to step down as chief executive in July, while remaining chairman — unexpectedly gave up all his duties. Mr. Black, at the time, cited health reasons and continuing media coverage of his dealings with Mr. Epstein.
But by then, Mr. Harris was seen as having less of a leadership role at the firm. It was Mr. Rowan who engineered Apollo’s takeover of Athene, a big insurance and lending affiliate that is expected to bolster the firm’s investing power.
Mr. Harris was not on Apollo’s quarterly earnings call with analysts earlier this month, an absence noted by a participant on the call, which fueled speculation that his role at Apollo had diminished since Mr. Rowan’s ascension.
Mr. Harris had wanted Mr. Black to make a complete break with Apollo after a law firm hired by Apollo’s board had found Mr. Black paid $158 million in fees to Mr. Epstein and lent him another $30 million in recent years. Mr. Harris was concerned that institutional investors in Apollo funds might be troubled by the law firm’s findings, even though the report concluded Mr. Black had paid Mr. Epstein for legitimate tax planning advice and had done nothing improper.
Apollo’s stock, which had lagged its competitors while the law firm investigated the matter, has risen about 20 percent since Mr. Black said he was resigning as chairman.
The board of Apollo hired the outside law firm to conduct review following a report in October in The New York Times of Mr. Black’s business and social dealings with Mr. Epstein, who died in federal custody in August 2019 while awaiting trial on sex trafficking charges.
Mr. Harris will officially step down after Apollo completes the Athene deal, which is expected to be completed early next year. He will remain a member of the firm’s board and its executive committee. Mr. Harris, like Mr. Black, is one of Apollo’s largest shareholders.
He is expected to focus on an array of other business interests, including his co-ownership of several professional sports franchises — including the Philadelphia 76ers basketball team and the New Jersey Devils hockey team — and his family office. He is also expected to focus more on philanthropy.
“I have become increasingly involved in these areas and knew that one day they would become my primary pursuit,” Mr. Harris wrote in an internal memorandum reviewed by The Times.
Mr. Harris, whose net worth is estimated at just of $5 billion, recently bought a $32 million mansion in Miami.
Stocks on Wall Street edged higher on Thursday, rebounding slightly from three consecutive days of selling.
The S&P 500 rose 0.3 percent in early trading. The index had dropped 1.4 percent through the close on Wednesday, after falling by the same amount the week before.
Concerns about rapid economic growth fueling inflation, as well as rising coronavirus cases in some parts of the world, have undermined recent optimism about the global economic recovery from the pandemic.
On Wednesday, minutes of the latest Federal Reserve policy meeting showed several officials thought that “at some point in upcoming meetings” they could begin to discuss tapering the bank’s bond-buying program. Investors have speculated the central bank would have to do so as price increases accelerated. The same day, data showed Britain’s annual inflation rate doubled to 1.5 percent in April.
European stock indexes were higher on Thursday. The Stoxx Europe 600 rose 0.8 percent as gains in health care and industrial stocks outweighed a fall in energy company shares. The FTSE 100 in Britain rose about half a percent.
Bitcoin was trading just below $40,000 on Thursday morning after a volatile day on Wednesday when the price plunged to below $32,000.
Ethereum, another major cryptocurrency, also recovered some of its losses from Wednesday, when it fell about 20 percent.
Elsewhere in markets
Oatly, the oat-based milk substitute, priced its shares at $17 each for its initial public offering, the company said on Wednesday, valuing it at about $10 billion. Oatly is expected to begin trading on Thursday with the ticker symbol “OTLY.”
Oil prices dropped. Futures on West Texas Intermediate, the U.S. benchmark, fell half a percent to $63.02 a barrel.
Initial claims for state jobless benefits fell again last week, continuing a fairly steady decline since the start of the year, the Labor Department reported Thursday.
The weekly figure was slightly under 455,000, a decline of 37,000 from the previous week and the lowest weekly total since before the pandemic. New claims for Pandemic Unemployment Assistance, a federally funded program for jobless freelancers, gig workers and others who do not ordinarily qualify for state benefits, totaled 95,000. The figures are not seasonally adjusted.
New state claims remain high by historical levels but are less than half the level recorded as recently as early January. The benefit filings, something of a proxy for layoffs, have receded as business return to fuller operations, particularly in hard-hit industries like leisure and hospitality.
More than 20 Republican-led states have said they will abandon federally funded emergency benefit programs in June or early July, saying the income is deterring recipients from seeking work as some employers complain of trouble filling jobs. Those programs include not only Pandemic Unemployment Assistance but also extended benefits for the long-term unemployed.
— Kevin McKenna
Ford unveiled an electric version of its popular F-150 pickup truck on Wednesday called the Lightning, signaling a shift in the auto industry’s electric vehicle push, which so far has been aimed at niche markets.
With an electric motor mounted on each of its axles, the vehicle will offer more torque — in effect, faster acceleration — than any previous F-150 and will be capable of towing up to 10,000 pounds, Neal E. Boudette reports for The New York Times. Its battery pack can put out 9.6 kilowatts of energy, making it able to power a home for about three days during an outage, according to Ford.
For contractors and other commercial truck users, the Lightning will be able to power electric saws, tools and lighting, potentially replacing or reducing the need for generators at work sites. It has up to 11 power outlets.
The truck is expected to go on sale next spring, with a starting price of $39,974 for a model that can travel 230 miles on a full charge. A version with a range of 300 miles starts at $59,974.
The truck’s base price is a few thousand dollars less than that of a Tesla Model 3 and even that of the company’s own Mustang Mach-E sport-utility vehicle. The total cost is lower still because buyers of Ford’s electric vehicles still qualify for the $7,500 federal tax credit available for the purchase of E.V.s. Some states such as California, New Jersey and New York offer additional rebates worth as much as $5,000.
The Alamo Drafthouse theater chain furloughed its 3,100 employees during the pandemic, declared bankruptcy in December, shut down three theaters as part of its restructuring plan and halted a planned project in Orlando. AMC Entertainment’s chief executive, Adam Aron, said this month that the chain had been “within months or weeks of running out of cash five different times between April 2020 and January 2021.”
Now, theaters are trying to assure people that the troubles are over, Nicole Sperling reports for The New York Times. That movies are coming back, with a vengeance, and moviegoing should soon return to normal.
“It’s magic, what we do,” Tim League, Alamo’s founder, said in a phone interview. He acknowledged that his company got dangerously close to running out of money in December before filing for Chapter 11 bankruptcy protection. “We’re in the business of creating the best possible viewing experience — to get lost in an amazing story and have heightened emotions around it. It’s amazing when it’s done right, and we’re in the business of doing it right. I know that people are craving a return to any kind of out-of-home experience, being with people and having a sense of rejoining the community.”
Some 70 percent of moviegoers are comfortable to returning to the theater, according to the exhibition research firm National Research Group. The box office for April hit $190 million, up 300 percent since February. That’s a welcome relief to the South African director Neill Blomkamp, whose new horror film “Demonic” from the indie outfit IFC will debut only in theaters at the end of August.
“This brings me joy,” he said in a video message. “I want people to be terrified in a darkened theater.”
Vegan milk is now a multibillion-dollar business on Wall Street. Oatly, the oat milk maker, priced its I.P.O. at $17 a share, the top end of its range, valuing it at about $10 billion. Part of the reason it appeared to avoid broader market declines is that it courted investors focused on so-called E.S.G. principles.
Whatever you think about crypto, you’re right
Even by Bitcoin’s standards, it’s been a wild week. A particularly steep drop in the cryptocurrency yesterday seemed to drag the entire market down with it, and the frenzy led to outages at big exchanges like Binance and Coinbase. Then, it came roaring back in late trading (Elon Musk tweeted about it) and has held the gains so far today. Still, Bitcoin is down by about a third from the all-time high it set just over a week ago.
The episode proves the point of skeptics that digital assets are too volatile to be taken seriously, and of die-hard supporters who say that the ups and downs come with the territory. DealBook spoke with Changpeng “C.Z.” Zhao, the C.E.O. of Binance, the world’s largest crypto exchange, about what it all means.
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“It was a busy day but it happens,” C.Z. said. “I think it’s pretty typical.” It’s a commonly held belief among the crypto crowd that big corrections are part of the journey to new heights. “If you look at 2017, where there was a bull market, there were at least two instances of 40 percent drawdowns,” he said. New investors rushing in “may or may not be fully committed” but he believes it’s good for the markets to “shake out” the jittery types.
Lawmakers aren’t so sure. Yesterday, the Senate Banking Committee chair, Sherrod Brown — a crypto skeptic — wrote to the acting Comptroller of the Currency, Michael Hsu, with concerns about crypto companies getting approved for national trust charters. In particular, Brown mentioned that the approvals came under the former acting comptroller, Brian Brooks, who once worked for Coinbase and recently became the C.E.O. of Binance’s U.S. division.
“Given the many uncertainties present in the digital asset landscape as identified by other regulators, the volatility of digital asset valuations, and the disproportionate influence individuals can have on entire cryptocurrency markets, the O.C.C. is not in a position to regulate these entities comparably to traditional banks,” Brown wrote.
All eyes are on the regulators. One factor in yesterday’s crash appeared to be a warning from China’s central bank that reiterated the ban on financial institutions in the country dealing in cryptocurrencies. Many of the crypto market’s ups and downs come amid questions about regulation driving mainstream acceptance (or not), as when the launch of a Bitcoin futures exchange in 2017 accompanied the last big run-up in crypto prices.
The next milestone, perhaps, is whether the S.E.C. will approve proposals for a Bitcoin E.T.F., which it will likely decide by the end of the year. Crypto’s champion at the S.E.C., commissioner Hester Peirce, last week responded to her colleagues’ qualms about Bitcoin by saying she hopes American investors will “finally” have access to crypto-based securities, so it’s clear where she stands.
“It was the right thing to do for the country.”
— Joseph Blount, the C.E.O. of Colonial Pipeline, in his first public interview about paying a ransom to hackers after a cyberattack crippled its systems. Colonial paid in Bitcoin worth $4.4 million, but the decryption tool it received in return didn’t immediately work, and the pipeline was shut for six days.
Private equity has a place at the table, and so do Oprah and Jay-Z. Food giants like Nestlé are scrambling to get a foot in the door. There are implications for the climate. There are even geopolitical rumblings.
The unlikely focus of this excitement is Oatly, producer of a milk substitute made from oats that can be poured on cereal or foamed for a cappuccino. Oatly, a Swedish company, will sell shares to the public for the first time this week in an offering that could value it at $10 billion and exemplify the changes in consumer preferences that are reshaping the food business.
It’s no longer enough for food to taste good and be healthy. More people want to make sure that their ketchup, cookies or mac and cheese are not helping to melt the polar ice caps. Food production is a leading contributor to climate change, especially when animals are involved. (Cows belch methane, a potent greenhouse gas.) Milk substitutes made from soybeans, cashews, almonds, hazelnuts, hemp, rice and oats have proliferated in response to soaring demand.
“We have a bold vision for a food system that’s better for people and the planet,” Oatly declared in its prospectus for the offering. The company’s shares are expected to start trading in New York on May 20.
Stephen A. Schwarzman, Blackstone’s chief executive, was a steadfast supporter of former President Donald J. Trump, who has maintained that climate change is a hoax.
Blackstone’s backing also helped lend Oatly credibility on Wall Street. And there was no sign that Blackstone’s involvement slowed Oatly sales, which doubled last year.
Oatly’s image benefited from a roster of celebrity investors, including Oprah Winfrey, Natalie Portman, Jay-Z’s Roc Nation company, and Howard Schultz, the former chief executive of Starbucks. All have some connection to the plant-based or healthy living movement.
Oatly declined to comment, citing regulations that restrict public statements ahead of an initial public offering.
Oat milk is part of a larger trend toward food that mimics animal products. So-called food tech companies like Beyond Meat have raised a little more than $18 billion in venture funding, according to PitchBook, which tracks the industry. Plant-based dairy, which in the United States includes brands like Ripple (made from peas) and Moalla (bananas), raised $640 million last year, more than double the amount raised a year earlier.
In the United States, milk substitutes like oat milk and rice milk make up a $2.5 billion industry that is expected to grow to $3.6 billion by 2025, according to Euromonitor. Globally, the $9.5 billion industry is expected to grow to $11 billion.
Once a niche market, alternate milk has become as American as baseball. A frozen version of Oatly that mimics soft-serve ice cream is being sold this season at Yankee Stadium, Wrigley Field in Chicago and Globe Life Field in Arlington, Texas, where the Rangers play.
China Resources, a state-owned conglomerate with vast holdings in cement, power generation, coal mining, beer, retailing and many other industries. The new financing helped Oatly to expand in Europe and begin exporting to the United States and China, where many people cannot tolerate cow’s milk. China Resources’ involvement undoubtedly helped open doors in the Chinese market. Asia, primarily China, accounted for 18 percent of sales in the first quarter of 2021, and is growing at a rate of 450 percent a year, according to Oatly.
In Europe, there is growing alarm about Chinese investment in strategic industries like autos, batteries and robotics. The European Commission has begun erecting regulatory barriers to companies with financial links to the Chinese government. But so far no one has expressed fear that China will dominate the world’s supply of oat milk.
Just in case, Oatly’s prospectus gives it the option of listing in Hong Kong if the foreign ownership becomes a problem in the United States.
The potential of the market for dairy alternatives is not lost on big food producers. Oatly acknowledged in its offering documents that it faces fierce competition, including from “multinational corporations with substantially greater resources and operations than us.”
That would include British consumer goods maker Unilever, which said last year that it aims to generate revenue of one billion euros, or $1.2 billion, by 2027 from plant-based substitutes for meat and dairy, for example Hellmann’s vegan mayonnaise or Ben & Jerry’s dairy-free ice cream. Unilever has not announced plans for a milk substitute.
dairy alternatives are a poor substitute for cow’s milk because they don’t have nearly as much protein.
Stefan Palzer, the chief technology officer at Nestlé, took issue with those who say a big company can’t move as fast as a bunch of Swedish foodies. A young team at Nestlé developed Wunda in nine months, including three months of market testing in Britain, Mr. Palzer said in an interview.
substitutes for almost any kind of animal product. The next frontier: fish. Nestlé has begun selling a tuna substitute called Vuna and is working on scallops.
“It’s a great opportunity to combine health with sustainability,” Mr. Palzer said of plant-based alternatives to milk and meat. “It’s also a great growth opportunity.”